WR is closely monitoring the bills that have advanced through the legislative process. Each week, we’ll spotlight our weekly “hot list” key legislation that could have the most significant impact on WR members.
B&O Surcharge on Large Corporations and Financial Institutions – B&O Tax (HB 2045)
WR opposes HB 2045 unless retailing and wholesaling are exempted, as their existing low B&O tax rates are crucial for supporting industries that operate on thin profit margins. Raising these rates could lead to job losses, reduced employee hours, increased automation, or even business closures. WR strongly advocates for preserving the current tax structure for these sectors and excluding them from the bill. Meanwhile, discussions continue in the legislature about the possibility of a broader, across-the-board increase in the B&O tax.
Position: WR opposes this bill.
Status:April 4, 2025: In House Committee on Finance waiting for a vote.
Improving public safety funding by providing resources to local governments and state and local criminal justice agencies, and authorizing a local option tax (HB 2015)
House Bill 2015 proposes a comprehensive public safety strategy, allowing local governments to raise sales taxes to fund law enforcement, courts, and treatment programs. It includes grants to hire more officers, prosecutors, defense attorneys, and diversion/treatment specialists, addressing, in particular, Washington’s low police staffing. Supported by the Washington Retail Association, the bill is seen as crucial for ensuring safe workplaces and communities. The bill passed out of the Senate Ways and Means Committee Tuesday and now goes to the entire Senate for debate and hopeful approval.
Position: WR strongly supports this bill.
Status: In Rules, second reading.
Expanding protections for workers in the state paid family and medical leave program (HB 1213)
HB 11213 would eliminate safeguards protecting against rate increases. The proposed legislation would reduce the minimum claim period from 8 to 4 hours, the waiting period from 12 months to 180 days, and phase out the small business from 50 to 8 by 2028. WR has testified that this will increase utilization and put greater pressure on raising rates on employers and employees on top of the 8% rate increase that went into effect for 2025. Our concerns are reinforced by the fiscal note that assumes use will increase and premiums collected will increase from an additional $8 million in FY26 to $337 million by FY2031. The Employment Security Department forecasts the program to have a negative balance during parts of 2025 and 2026. The bill goes back to the House for a concurrence vote. If 1213 becomes law, Washington will have the most expensive PFML program in the country.
Position: WR opposes this bill.
Status: Passed the House.
Job Posting “Right to Cure” at Risk in House of Representatives (SB 5408)
SB 5408, the “Right to Cure” legislation, initially gave employers 14 days to fix wage and salary disclosure errors without legal risk. After passing the Senate, the House removed these protections, causing technical issues and business opposition. Without the right to cure, employers face immediate lawsuits for minor errors, including errors made from third-party platforms. Washington Retail urges restoring the Senate’s version to balance compliance challenges and legal accountability, avoiding a flawed, litigious system.
Position: WR has concerns with this bill.
Status: In Rules to review.
Liquor License Fee Increases (HB 2035/SB 5786)
Both HB 2035 and SB 5786 propose increasing liquor license, permit, and endorsement fees. While the bills are technically companions, the Senate version (SB 5786) was amended to raise the grocery store license fee from $150 to $975—a 550% increase—compared to the House version (HB 2035), which proposes a more modest 50% increase to $225.
The Senate version would put a particularly heavy burden on retailers, who often must stack multiple licenses—such as separate permits for beer, wine, and spirits—based on the alcohol products they sell. These cumulative fees can significantly raise operating costs, especially for small businesses as well as retailers with multiple locations, who must purchase licenses for each individual site.
Position: HB 2035; Neutral / SB 5786; Oppose
Status: HB 2035 – 4/18/2025 Scheduled for executive session / SB 5786 – In Rules, second reading.
Unemployment Insurance for Striking Workers (SB 5041)
WR opposes SB 5041 to allow unemployment insurance for striking workers. The bill narrowly passed the House of Representatives, with seven Democrats voting with Republicans against the measure. Before passage, the bill was amended to reduce the maximum benefits allowed from 12 to 4 weeks and to require mediation services to be available if striking benefits are issued. These changes now return to the Senate, where a concurrence fight is expected. If passed into law, Washington would become the third state in the nation with these benefits.
Position: WR opposes this bill.
Status: April 12, 2025; Floor Amendments Adopted – Passed the House.
