Washington, which in 2024 was the highest minimum-wage state in the nation (only Washington D.C. was higher), raised it further to $16.66 an hour effective January 2025.

Cities can set minimum wages higher. Bellingham’s minimum wage is $1 above the state, meaning that as of Jan. 1, 2025, the citywide rate became $17.66 an hour. Starting May 1, 2025, Bellingham’s minimum wage will be $2 above the statewide rate, or $18.66 an hour.

In 2026, Bellingham’s minimum wage will remain $2 higher than the 2026 statewide rate, which will be announced by the state Department of Labor & Industries in September.

Business Pulse asked Guy Occhiogrosso, president and CEO of Bellingham Regional Chamber of Commerce, how the increasing wage is affecting downtown restaurants and other businesses.

“Some businesses have spoken to the need to increase prices even further to compensate for the wage increases,” Occhiogrosso replied. “We were worried about some businesses altering hours due to the wage increases, and this may be showing in the increase in closings.

“I am not certain I can substantiate either, but it does feel like many restaurants are closing or up for sale. This is probably due to a larger number of factors, and with that, we seem to be welcoming new businesses into those spaces fairly quickly.”

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