Newsletter — February 13, 2025 | |
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POLICY
ECONOMY
ON THE LOCAL FRONT
RETAIL THEFT & PUBLIC SAFETY
IN THE NEWS
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Urgent: Bill threatening retail industry scheduled for executive action – Act Now!
Despite mounting concerns from businesses across the state, HB 1671, focused on consumer data privacy regulation, is scheduled for executive action this Friday, February 14 in the House Technology Committee.
While the goal of protecting consumers data is well intended, the bill would cause severe damage to Washington’s retail sector. Retailers of all sizes would bear unnecessary regulatory burdens that will stifle growth, reduce competitiveness, and drive up costs at the worst possible time. Couple that with no implementation guidance and sole enforcement through civil litigation, businesses would be under attack if this bill becomes law.
What’s at Stake for Retailers?
If passed, HB 1671 will deliver a devastating blow to Washington’s retail industry, with far-reaching consequences that will be difficult—if not impossible—to reverse. This bill would bring:
- Massive Compliance Costs
- Impossible, Vague, Operational Burdens & Regulations
- Barrage of Lawsuits & Civil Litigation
- Job Losses and Economic Decline
- Loss of Competitive Edge
- Destroy Consumer Loyalty Programs
Why Retailers Must Act Now
This bill is being fast-tracked despite the significant concerns raised by the retail community. Moving it out of committee will make it even harder to stop later. We must act now to protect the retail industry and ensure lawmakers understand the devastating impact this bill will have.
What You Can Do
Join us in opposing HB 1671 and protecting the future of retail in Washington. Contact the House Technology Committee and urge them to vote NO on HB 1671.
Click on this link to take you to an auto-populated email addressed to the committee. Feel free to personalize pre-written message.
Retailers are the cornerstone of Washington’s economy, employing thousands of residents and contributing to the vibrancy of our communities. WR is committed to protecting the industry and will keep you up to date on the progress of this and other bills.
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Minimum wage hike and paid leave mandates face strong opposition
This week, the House and Senate held hearings on HB 1764 / SB 5578, which propose raising the minimum wage to $25/hour by 2031, with an average 7% annual increase starting in 2026. The bills also mandate 2.3 hours of paid vacation for every 40 hours worked and five (5) days of bereavement leave per event, effective 2028. Employers’ ability to manage leave remains unclear until L&I issues rules.
WR and employers across industries testified in strong opposition, citing several concerns:
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Disproportionate Rural Impact: The bills rely on Puget Sound wage data, ignoring disparities in rural areas.
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Inflationary Effects: Higher wages could drive inflation, reduce hiring, cut hours, and force layoffs or closures, disproportionately affecting low-income families.
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Job Losses: A 2024 Colorado study, (Weighing Minimum Wage Increases Across Boulder County), found similar measures would cause 4–12 job losses for every one person benefiting by 2030, with 90% of lost jobs affecting workers under 25. Retail labor costs would rise 7.6%, forcing closures.
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Uncertain Leave Management: The mandates give rulemaking authority to L&I without clear guidelines, causing operational challenges, especially for essential services like auto repair and tire retailers.
WR urges legislators to focus on easing small business burdens, improving childcare affordability, and curbing inflationary pressures rather than advancing these harmful proposals.
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Washington Fair Chance Act expansion raises employer concerns
Washington’s Fair Chance Act could see significant expansion under HB 1747, a proposed bill that further restricts employers from considering criminal records in hiring decisions. The legislation prohibits taking adverse action against applicants or employees for failing to disclose a criminal history before receiving a conditional job offer.
Key Changes Under HB 1747
- Employers may only consider adult conviction records—arrest records and juvenile convictions cannot be used.
- Before taking adverse action, employers must:
- Provide written documentation of the legitimate business reason for the decision.
- Allow at least two business days for the individual to respond, correct inaccuracies, or provide evidence of rehabilitation.
- Increased Penalties & Enforcement:
- The Attorney General’s Office (AG) will oversee enforcement, with legal actions possible to recover unpaid wages, penalties, damages, and attorneys’ fees.
- This bill prohibits employer retaliation for employees who file complaints.
- The AG may issue warnings for first-time or minor violations. However, fines escalate for repeat offenses:
- $1,500 for a first violation
- $3,000 for a second violation
- $15,000 for each additional violation
WR testified at this week’s hearing, raising concerns about the bill’s impact on small businesses. Increased penalties and legal risks could disproportionately affect employers with limited compliance resources, leading to unexpected lawsuits and hiring challenges.
Instead of increasing restrictions and penalties, WR urges lawmakers to connect employers with workforce organizations that help justice-impacted individuals find jobs. A collaborative approach would ensure real second chances without discouraging employers from hiring.
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Organized Retail Crime bill proposes additional penalties for offenders
HB 1276, which increases penalties for high-dollar organized retail crime (ORC) offenders, was heard Monday in the House Community Safety Committee. The bill is sponsored by Rep. Mari Leavitt (D-28 University Place) and co-sponsored by Rep. Dan Griffey (R-35 Allyn).
HB 1276 proposes additional penalties for ORC offenders: an extra 12 months for those who steal $20,000 or more and an additional 24 months for those who steal $50,000 or more.
Retailers' top priority is ensuring a safe working environment for employees and a secure, enjoyable shopping experience for customers. ORC crime rings are becoming increasingly aggressive and dangerous, often resorting to threats, violence, and, in extreme cases, resulting in fatal incidents. These crimes are highly organized, premeditated, and frequently involve multiple accomplices. Unlike crimes of poverty or opportunity, ORC operations are structured to resell stolen goods and fund other criminal activities, including money laundering, drug smuggling, weapons trafficking, prostitution, child exploitation, and even terrorism. ORC is a growing issue at the state, national, and international levels.
Additionally, ORC results in billions of dollars in losses for retailers, leading to higher prices and product shortages for law-abiding consumers. This also translates to millions of dollars in lost tax revenue for local and state governments.
ORC crime rings are highly responsive to changes in laws and enforcement strategies. Evidence shows that increasing penalties and establishing felony thresholds can significantly reduce large-scale retail theft.
While HB 1276 is a valuable tool for law enforcement, prosecutors, and retailers, it is not a standalone solution to ORC and retail theft. A comprehensive approach is necessary, one that includes resources for local governments to attract and retain defense attorneys, prosecutors, and law enforcement. Additionally, access to treatment programs for individuals struggling with substance addiction and mental illness is crucial, as many of these individuals are exploited by ORC rings to commit theft on their behalf.
WR supports these efforts and commends the Legislature and Governor for prioritizing public safety this session.
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Job growth slows but remains steady in January
The U.S. job market maintained solid growth in January, adding 143,000 jobs despite slowing from previous months. The unemployment rate dipped to 4%, lower than economists’ expectations, signaling continued labor market stability.
While job gains fell short of the projected 169,000, revisions to November and December figures added a combined 100,000 jobs, reinforcing a resilient employment landscape. Sectors such as healthcare, retail, and government saw job growth, while employment declined in mining and oil and gas extraction.
Labor market trends show a cooling period, with slower hiring and job-quitting, but layoffs remain historically low. Cory Stahle of Indeed Hiring Lab noted that businesses continue a “business as usual” approach despite economic uncertainties. The share of prime-age workers (25-54) employed edged up to 80.7%, a positive indicator of economic health.
Looking ahead, potential labor market shifts could arise from policy changes, including immigration restrictions and tariffs. Analysts predict an immigration slowdown may affect payroll growth as early as February. However, the labor market remains resilient, with steady hiring trends providing stability.
For Washington retailers, these employment trends highlight the importance of workforce adaptability in navigating shifting economic conditions.
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WR Board convenes in Olympia to meet with newly elected state leadership and key legislators
Today, Thursday, February 13, WR’s Board of Directors is gathering in Olympia, Washington’s Capital City for a pivotal meeting with key state legislators and newly elected Governor Bob Ferguson and Attorney General Nick Brown. As the legislative session continues at full speed, WR is seizing this opportunity to engage directly with decision-makers on issues impacting the retail industry. The day’s discussions will culminate in WR’s highly anticipated Legislative Retail Reception this evening, bringing together policymakers and retailers to advance solutions that support retailers across the state.
With a quarter of the 105-day legislative session already behind us, WR is navigating a dynamic environment. A near-supermajority of Democratic lawmakers in both the House and Senate, coupled with almost 2,000 bills introduced so far, has made this session particularly active. WR’s Government Affairs team is closely tracking nearly 400 bills with direct implications for the retail industry. Committees are busier than ever, fueled in part by a wave of new legislators—22% of both chambers are serving their first term. The legislative landscape is shifting quickly, and so are the challenges ahead.
What We’re Up Against
Retailers face mounting pressures, from rising theft and organized retail crime to new environmental and employment regulations. While WR identified key legislative priorities, such as AI, taxation, and consumer protection, unexpected policy shifts have emerged, including increased pharmacy regulations, technology restrictions, and changes to public records enforcement. Our advocacy efforts remain laser-focused on ensuring fair enforcement and a balanced regulatory environment.
Stay Engaged
WR members play a critical role in shaping the legislative landscape. To stay informed and take action, review WR’s 2025 Legislative Priorities and connect with our team on key issues affecting your business.
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Washington Gov. Bob Ferguson is sworn into office by Washington Supreme Court chief justice Debra L. Stephens, right, during a joint legislative session in House chambers at the Washington State Capitol, Wednesday, Jan. 15, 2025, in Olympia, Wash. (AP Photo/Lindsey Wasson) | |
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Governor Ferguson’s bold start: Prioritizing housing, public safety, and affordability
Governor Bob Ferguson hit the ground running in his first weeks in office, focusing on key priorities to improve the lives of Washingtonians.
A major initiative is tackling Washington’s housing crisis. Ferguson signed an executive order on his first day to streamline permitting and accelerate housing development, aiming to build 1.1 million new units over the next 20 years.
Public safety is another cornerstone of his administration. Washington ranks last in the nation for law enforcement officers per capita, and Ferguson is backing a $100 million bipartisan bill to help local governments hire more officers. His plan also includes funding to combat the fentanyl epidemic and gun violence.
Transportation is also a focus, with nearly $20 million allocated to strengthen the Washington State Ferry system, ensuring better service and crew retention.
Ferguson is advocating for universal free school lunches, which could save families up to $1,200 annually, and proposing $100 million to expand childcare affordability for small business employees. He also emphasizes increasing K-12 education funding.
As Ferguson’s administration takes shape, his commitment to bold action and bipartisan solutions remains clear. Read more at governor.wa.gov.
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Seattle City Council approves police use of “less lethal” weapons
The Seattle City Council voted 6-3 to eliminate restrictions on the use of “less lethal” weapons, including blast balls, pepper spray, and tear gas, under limited circumstances. These restrictions were originally imposed after the 2020 murder of George Floyd.
This action by the Council clears the path to end 12 years of federal court oversight under a 2012 consent decree. The decree was implemented after a U.S. Department of Justice investigation found that Seattle police used excessive force in 20% of arrests.
U.S. District Court Judge James Robards had required the city to implement a policy for using less lethal weapons to maintain crowd control. The city and the Department of Justice’s Civil Right Division are expected to file a joint motion in the near future to dissolve the settlement agreement of the consent decree.
Under the new ordinance, less lethal weapons may only be used when activities “are occurring or about to occur” that pose a risk of imminent physical harm or significant property damage. Tear gas and blast balls are prohibited unless the mayor declares a state of civil emergency. Additionally, the police chief must authorize the use of blast balls after an emergency declaration.
The Seattle Police Department must submit an annual report to the Council detailing its use of these weapons.
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Strategies for retro success – webinar
Are Workers’ Compensation and Payroll Costs Keeping You Up at Night?
Retail Services, a subsidiary of Washington Retail is here to help you take control and cut costs! You will discover how this partnership can:
- Refresh your understanding of Retro
- Transform strategies
- Unlock tools and insights
- Navigate the new contract
Multiple sessions to choose from:
This is your chance to stay ahead of the curve and build a stronger, more successful program.
For any additional questions please contact bshannon@waretailservices.com
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ORC Best Practices Report strengthens public-private partnerships
Organized retail crime (ORC) remains a serious challenge, impacting businesses, employees, and communities across Washington. To combat this growing issue, Washington Retail Association (WR), in partnership with Challenge Seattle and a coalition of law enforcement, retailers, and government officials, has developed a comprehensive Best Practices for Combating Organized Retail Crime report.
This report builds upon the Organizing a Public-Private Partnership to Defeat Organized Retail Crime report and provides actionable strategies for retailers, law enforcement, and prosecutors. It emphasizes the importance of collaboration, real-time information sharing, and prosecution-focused enforcement. Key recommendations include real-time information sharing, prioritizing prosecution, and fostering strong working relationships between law enforcement and retailers.
This work would not be possible without the continued engagement of key stakeholders, including retail leaders, law enforcement officials, prosecutors, and policymakers. The ORC Resource Hub serves as a central platform for best practices, tools, and ongoing updates to strengthen our collective efforts.
The work is far from over. WR continues to advocate for stronger enforcement, legislative action, and resource allocation to address ORC effectively. All partners are encouraged to review the report and engage in ongoing discussions to strengthen the collective response to ORC.
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Walmart reshapes corporate footprint
Walmart is making significant changes to its corporate office strategy, including job cuts and office closures. The company recently announced the elimination of an undisclosed number of corporate roles and the closure of its Charlotte, North Carolina, office. Employees affected by these changes have been offered relocation support or severance.
As part of its office restructuring, Walmart is asking employees from smaller offices, including those in Hoboken, New Jersey, to relocate to larger hubs in Arkansas or California. The company is also expanding office spaces in Sunnyvale, Bellevue, Hoboken, and New York City.
The move aligns with Walmart’s broader push to bring more employees back to in-person work, citing collaboration and culture as key benefits. The company continues to invest in its Bentonville, Arkansas, headquarters, with new office buildings opening throughout the year.
This restructuring follows a similar move last year when Walmart asked remote employees in Dallas, Atlanta, and Toronto to relocate or face layoffs. These changes reflect a growing trend among major corporations shifting away from remote work in favor of centralized office environments.
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WR diversity statement
WR is committed to the principles of justice, equity, diversity, and inclusion. We strive to create a safe, welcoming environment in which these principles can thrive.
We value all people regardless of race, ethnicity, gender, religion, age, identity, sexual orientation, nationality, or disability, and that is the foundation of our commitment to those we serve.
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Renée Sunde, President/CEO — 360.200.6450 — Email
Mark Johnson, Sr. VP of Policy & Government Affairs — 360.943.0667 — Email
Crystal Leatherman, Dir of Local & State Government Affairs — 360.200-6453 — Email
Rose Gundersen, VP of Operations & Retail Services — 360.200.6452 — Email
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