From strain to crisis: Lawmakers consider crushing employment costs for retailers

Mar 20, 2025
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Written by WR Communications
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Washington retailers have faced staggering payroll cost increases in recent years, and pending legislation threatens to make the financial strain unsustainable.

Key proposals driving up employment costs:

  • ESSB 5041 – provides up to 12 weeks of unemployment benefits to striking workers, a move that could unnecessarily prolong labor disputes and increase employer costs.
  • HB 1213 – eliminates the small business exemption from offering job protection and healthcare continuation for workers using Paid Family and Medical Leave program.
  • SB 5463 – Imposes vague “good faith and fair dealing” standards on self-insured workers’ compensation employers, increasing litigation risks.
  • HB 1308 and HB 1402 – Expands private rights of action, effectively privatizing labor law enforcement and exposing employers to costly lawsuits.

Additional costly employment mandates with heavy administrative burdens:

  • SB 5101 – Expands domestic violence leave protections to include hate crime victims.
  • HB 1748 – Restricts employer hiring decisions by prohibiting criminal background checks until after a conditional job offer.
  • SB 5217 – Removes small employer exemptions for pregnancy accommodations, adding new postnatal care requirements and costs to small businesses who cannot accommodate on-site.
  • HB 1524 – Increases fines and enforcement requirements for isolated workers (janitors, housekeeping, security).
  • HB 1875 – Expands paid sick leave to include time off for immigration proceedings.

Each new mandate adds pressure to cut staff, reduce hours, increase automation, or even close stores. While well-intended, these legislative proposals could push retailers—and the jobs they provide—closer to a breaking point, jeopardizing community access to goods and harming the state’s economic stability.

Washington retailers urge lawmakers to consider the cumulative impact of these policies and work toward balanced solutions that support both workers and businesses.

    

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