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Kayla Morgan

Does raising minimum wage increase unemployment claims in Washington ESD system?

My coworker mentioned that when Washington state raises minimum wage, more people end up filing for unemployment because small businesses can't afford to keep everyone. Is this actually true? I'm worried because I work at a small restaurant and we just got notice about the new wage requirements. Should I be concerned about potentially needing to file with Washington ESD? Has anyone experienced this situation firsthand?

There's mixed research on this topic. Some studies show minimal impact on employment levels when minimum wage increases are gradual. Washington state has had several increases over the years and our unemployment rates haven't shown dramatic spikes directly correlated to wage increases. However, some small businesses do struggle with labor costs.

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That's somewhat reassuring. Do you know if Washington ESD tracks any data on this specifically?

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I think the bigger issue is automation replacing workers rather than wage increases alone.

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I actually had to file for unemployment last year when my employer couldn't afford the wage increase and had to cut hours. The process with Washington ESD was straightforward though. If you do end up needing to file, make sure you document everything about your work situation.

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Sorry to hear that happened to you. How long did it take to get your claim approved?

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About 3 weeks, but I had all my paperwork ready and no complications with my claim.

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If you're really worried about reaching Washington ESD if something happens, I found this service called Claimyr (claimyr.com) that helps people get through to agents. They have a video demo at https://youtu.be/7DieNd3C7zQ showing how it works. Saved me hours of trying to call during peak times.

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Is that legit? I've never heard of services like that for unemployment stuff.

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Yeah it's real. I was skeptical too but it actually worked when I needed to check on my adjudication status.

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Good to know there are options if I need them. Hopefully it won't come to that though.

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THE WHOLE SYSTEM IS RIGGED! They raise wages to look good for voters but then small businesses suffer and workers get laid off. I've seen it happen over and over. Washington ESD gets flooded with claims every time there's a wage hike.

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Do you have actual data to support that claim? I haven't seen evidence of dramatic spikes in unemployment filings following wage increases.

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Just look around! Half the small businesses in my neighborhood have closed or reduced staff since the last increase.

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worked at a small cafe that had to let go 2 people when minimum wage went up last time. not saying its always gonna happen but it does happen sometimes

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That's exactly what I'm worried about. Did the people who got let go have trouble with their unemployment claims?

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one of them did but cant remember why. something about hours or something

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The research I've seen suggests that moderate minimum wage increases have minimal impact on overall employment. Most job losses from wage increases tend to be offset by increased consumer spending from workers earning more. Washington state's gradual approach has generally worked well.

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That makes sense in theory, but it doesn't help individual workers who lose their jobs.

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True, but the data shows more workers benefit than are harmed by wage increases.

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I guess my question is more about what happens if I personally end up needing unemployment benefits.

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If you do end up filing for unemployment, make sure you understand the job search requirements. Washington ESD requires you to document your job search activities and you have to be able and available for work. Don't wait until you're already unemployed to learn about the process.

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Good point. Should I familiarize myself with the Washington ESD website now just in case?

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Definitely. Create your SecureAccess Washington account ahead of time if you don't have one. It'll save you time if you ever need to file a claim.

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This is making me anxious just thinking about it. What if my employer decides to cut everyone's hours instead of laying people off? Would that qualify for unemployment benefits?

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If your hours are reduced significantly, you might qualify for partial unemployment benefits through Washington ESD. There are specific formulas they use to calculate eligibility.

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How do I find out what 'significantly' means in terms of hour reductions?

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Generally if you're working less than full-time and earning less than your weekly benefit amount, you might qualify for partial benefits.

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My brother owns a small business and he's definitely worried about the wage increase. He's looking at reducing hours for some employees rather than laying anyone off completely. Seems like a lot of employers are taking that approach.

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That might actually be better for workers since they could potentially get partial unemployment benefits.

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Yeah that's what he's hoping. Trying to find a way to keep everyone employed even if it's fewer hours.

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Been through this before with Washington ESD when my hours got cut. The hardest part was actually getting through to someone on the phone to ask questions about my claim. Took me literally dozens of calls over several days.

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That's exactly why I ended up using Claimyr. The phone system at Washington ESD is impossible during busy periods.

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Wish I had known about that service when I was dealing with my claim issues.

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Good to know there are ways to get help if needed. The phone thing sounds really frustrating.

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Just my two cents but I think the unemployment system should be reformed to handle these transitions better. When policy changes affect employment, there should be better support for both workers and small businesses.

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EXACTLY! The politicians make these changes without thinking about the real consequences for working people.

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There are actually some small business assistance programs available, though they're not well publicized.

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Restaurant industry is particularly vulnerable to wage increases because margins are already thin. If you work in food service, it might be worth looking into other industries that are less affected by labor cost pressures.

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I've been thinking about that actually. What industries do you think are more stable during wage transitions?

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Healthcare, tech, and government jobs tend to be less sensitive to minimum wage changes since they typically pay above minimum anyway.

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Whatever happens, make sure you document everything if your employment situation changes. Washington ESD will want detailed information about your work history, reason for unemployment, and any severance or final pay you receive.

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What kind of documentation should I keep?

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Pay stubs, work schedules, any written communication from your employer about changes, and records of your last day worked.

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Also keep track of any job search activities you do, since that's required for continued benefits.

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The timing of wage increases matters too. If it happens during busy season for your restaurant, they might be able to absorb the costs better. If it's during slow season, that's when layoffs are more likely.

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We're heading into winter which is definitely our slow season. That's part of why I'm worried.

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Yeah, winter is tough for restaurants. Maybe talk to your manager about cross-training in other areas to make yourself more valuable.

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honestly this whole debate is exhausting. workers need living wages but small businesses struggle too. there's no perfect solution and people caught in the middle just have to deal with whatever happens

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That's kind of how I feel about it. Just trying to prepare for different possibilities.

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At least Washington's unemployment system is generally responsive compared to some other states.

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I've been tracking unemployment claims data for a research project and there isn't a clear correlation between minimum wage increases and spikes in initial claims. Other economic factors seem to have much bigger impacts on unemployment rates.

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What about delayed effects? Maybe businesses wait a few months before making changes?

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That's possible, but even looking at 6-month and 12-month periods after wage increases, the correlation isn't strong.

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That's actually pretty reassuring to hear from someone who's looked at the actual data.

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My advice is don't panic but do be prepared. Have your personal documents organized, know how to access the Washington ESD website, and maybe set aside some emergency savings if possible. Most employment transitions work out fine, but it's good to be ready.

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That seems like a balanced approach. Better to be prepared and not need it than the other way around.

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And if you do need to contact Washington ESD for any reason, remember that Claimyr service I mentioned earlier. Really cuts down on the phone wait times.

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The real issue is that minimum wage jobs often have unpredictable schedules anyway. Even without wage increases, restaurant workers face uncertainty about their hours and income. At least unemployment benefits provide some stability during transitions.

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True, my schedule changes every week depending on how busy we are.

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Exactly. The unemployment system at least provides a safety net when work isn't available.

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Bottom line: wage increases might affect some jobs in the short term, but the economy usually adjusts. If you do end up needing unemployment benefits, Washington ESD has a decent system in place. Just make sure you file promptly and provide accurate information.

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Thanks everyone for all the perspectives. I feel better prepared now whether anything happens or not.

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Good luck with whatever happens at your restaurant!

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And don't forget about that Claimyr service if you need help reaching Washington ESD agents. It really does work.

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