Earlier this month, WR highlighted the mounting regulatory costs burden on retailers. To further illustrate these challenges, the March 2025 Washington State Employer Impact Report provides detailed data illustrating why Washington employers face some of the highest payroll expenses nationwide. The financial strain is particularly severe for retailers operating on slim profit margins of 1-3%.
A few highlights from the report on payroll expenses: Seattle’s minimum wage rose to $20.76 per hour in 2025, with small businesses feeling the impact of losing the compensation credit for benefits and tips, raising their labor costs by $3.51 per hour. Additionally, lawmakers are considering raising the statewide minimum wage to $25 per hour by 2031, which could further strain businesses.
On top of rising wages, small businesses face an average 11.9% increase in health insurance premiums for 2025, the largest jump in a decade. WR strongly opposes these measures, as they impose undue burdens on employers already struggling with rising costs. WR will continue to advocate for balanced solutions that support both workers and employers, emphasizing the need for legislation that considers the broader economic impact. Policymakers must carefully consider the economic consequences to avoid potential job losses and higher consumer prices.
