Newsletter — June 25, 2026 | | |
IN THE NEWS
POLICY
ECONOMY
ON THE LOCAL FRONT
POLTICAL NEWS
RETAIL THEFT & PUBLIC SAFETY
| | Washington Retail Association Board members with Representative McClintock (R-18) and Representative Waters (R-17) | | |
Washington Retail Association welcomes new and incoming board members
The Washington Retail Association is pleased to welcome new and incoming members to its Board of Directors. Each brings valuable experience in retail, government affairs, legal counsel, operations, and business leadership.
Meegan Brooks, Ballard Spahr
Meegan Brooks is an attorney with Ballard Spahr who has spent her career defending and advising retailers, e-commerce companies, and manufacturers. She has extensive experience in consumer class actions, privacy matters, advertising review, pricing policies, loyalty terms, and other issues affecting the retail industry. Meegan brings deep legal and regulatory expertise to the WR Board.
Anne Christie, Gap Inc.
Anne Christie is a Manager of State & Local Government Affairs at Gap Inc., where she supports engagement on public policy issues affecting employees, customers, and communities across key state and local markets. Her background includes policy work at SPUR and legislative and constituent work in the Office of U.S. Senator Dianne Feinstein. A Seattle native, Anne brings strong public policy experience and Washington roots to WR.
John Dillon, The Home Depot
John Dillon is Director of State and Local Government Relations at The Home Depot, where he leads government relations across 29 states and U.S. territories in the Western United States. His work focuses on issues including organized retail crime and housing policy. John brings extensive experience in public policy, advocacy, and retail industry leadership.
Zach Dooley, Tractor Supply Company
Zach Dooley serves as Senior Manager of Government Relations and Stakeholder Engagement at Tractor Supply Company. He began his career on Capitol Hill, working on issues including commerce, transportation, and infrastructure policy, and later served as a senior policy advisor in the Texas Senate. Zach also brings experience in community and government relations from Vulcan Materials Company, along with a strong background in state and federal policy.
Matthew Humphrey, Matthew Steele Salon Spa & Steele Studio
Matthew Humphrey is a business owner behind Matthew Steele Salon Spa, Steele Studio, and Steele Barber. His businesses are known for technical quality, premium service, and a people-first culture. With decades of experience building respected neighborhood retail brands in Seattle, Matthew brings an important small business and customer service perspective to the WR Board.
NaTasha Magnusson, Mud Bay
NaTasha Magnusson serves as Safety Compliance and Workplace Safety Manager at Mud Bay, where she helps support safe operations and strong compliance practices for employees and customers. A passionate animal welfare advocate and environmental conservationist, NaTasha brings a strong commitment to responsible business practices and community stewardship.
Together, these leaders will help strengthen WR’s work on behalf of retailers across the state.
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Representative Larry Springer recognized as Washington Retail Association’s Legislator of the Year
The Washington Retail Association is proud to recognize Representative Larry Springer as WR’s Legislator of the Year for his longstanding commitment to small businesses, community building, and thoughtful public policy.
Rep. Springer, who represents the 45th Legislative District and serves as Deputy Majority Leader in the House of Representatives, brings a unique and valuable perspective to the Legislature as a longtime small business owner. Since 1985, he has owned a family-run retail wine store in Kirkland, giving him firsthand experience with the opportunities and challenges facing local retailers.
A lifelong resident of East King County, Rep. Springer has spent decades serving his community. Before his election to the Legislature in 2004, he served 11 years on the Kirkland City Council, including four years as Mayor. His public service has been guided by a commitment to economic development, education, the arts, and creating strong, connected communities.
Rep. Springer has also played an important role in building bridges between the small business community and state lawmakers. WR is grateful for his leadership, partnership, and continued dedication to supporting retailers and strengthening communities across Washington.
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Representative Mari Leavitt recognized as Champion of Organized Retail Crime and Public Safety
The Washington Retail Association is proud to recognize Representative Mari Leavitt as a Champion of Organized Retail Crime and Public Safety for her leadership in advancing solutions that protect retailers, workers, customers, and communities across Washington.
Rep. Leavitt, who represents the 28th Legislative District and serves as Deputy Majority Whip, has long focused on public safety, community well-being, workforce development, and support for small businesses. A small business owner, former human services administrator, and longtime higher education leader, she brings a practical, community-centered perspective to her legislative work.
During the 2026 legislative session, Rep. Leavitt worked across the aisle to help advance HB 1276, addressing organized retail theft, and HB 2729, the Retail Theft Accountability Act. These efforts strengthen coordination, improve accountability, and give law enforcement better tools to respond to organized retail crime.
Organized retail crime affects more than businesses. It impacts employees, shoppers, neighborhoods, and the broader economy. Rep. Leavitt’s leadership reflects a strong commitment to building safer, more welcoming places to live, work, and shop.
WR is grateful for Rep. Leavitt’s partnership and her continued dedication to safer, stronger communities across Washington.
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Recycling Reform Act rulemaking is underway
Washington state has begun rulemaking for the Recycling Reform Act, which creates an extended producer responsibility (EPR) program for packaging and paper products. Once fully implemented, the program will require producers to help fund and manage the recycling system for covered materials, including many types of packaging and paper products used in retail.
This rulemaking process will determine many details retailers will need to understand, including compliance obligations, reporting requirements, timelines, definitions, and how responsibility is assigned across the supply chain. Because of that, retailer input is especially important.
The first round of feedback on the initial draft rule language was due June 24, but this will not be the only opportunity to engage. WR has a seat on the Recycling Reform Act Rulemaking Committee representing retail producers and will continue participating throughout the process.
The Washington Retail Association (WR) will remain focused on advocating for rules that are clear, workable, and reflect proportional responsibility for retailers, particularly around private label products, packaging, distribution, reporting, administrative burden, and implementation costs.
WR’s Environment & Sustainability Member Workgroup will also continue reviewing this and other environmental policy issues to provide direct feedback that helps inform WR’s advocacy. Retailers interested in joining the workgroup and participating in these discussions should reach out to Crystal Leatherman, Director of Policy & Government Affairs at cleatherman@washingtonretail.org or 360-884-0771.
Retailers are also encouraged to follow the Department of Ecology’s rulemaking process and sign up for updates through the rulemaking website.
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Retailers should engage now on safer products rulemaking
The Washington Department of Ecology is continuing its work under the Safer Products for Washington program, which identifies and regulates priority chemicals in consumer products. This process could affect a wide range of products retailers sell, manufacture, distribute, import, or private-label.
Ecology is currently in Cycle 2 of the program and has identified several product categories for review, including cosmetics and nail products, jewelry, tires, cookware, paints, sealants, caulks and adhesives, hard surface sealers, insulation, solid deodorizers, floor waxes and polishes, plastic packaging, artificial turf, and printing inks.
Ecology may ultimately adopt restrictions, bans, or reporting requirements if it determines safer alternatives are feasible and available. For retailers, this could mean new compliance obligations, including verifying supplier compliance, tracking restriction dates, removing noncompliant inventory, or addressing products sold or shipped into Washington, including through online sales.
Remaining Opportunities to Engage
Ecology has been holding webinars to share its alternatives research by product category. Several sessions have already taken place, but there are still opportunities for affected businesses to participate:
Members who may be affected are encouraged to attend any remaining webinars, review Ecology’s Cycle 2 Priority Products Report, and share feedback with WR. Even if you were unable to attend a prior webinar, you can still submit comments directly to Ecology at SaferProductsWA@ecy.wa.gov or send feedback to WR so it can be included in a broader response.
The Washington Retail Association (WR) will continue advocating for practical, workable rules that recognize the role of retailers in the supply chain and avoid unnecessary or disproportionate compliance burdens.
Members can stay up to date through Ecology’s Safer Safer Products website and are encouraged to reach out to WR with questions, concerns, or feedback.
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Reminder: Washington overtime salary threshold increases in 2027
Retailers should keep Washington’s overtime salary threshold in mind as they plan 2027 budgets. Beginning January 1, 2027, the minimum salary required for certain overtime-exempt employees is scheduled to increase.
Washington’s overtime exemption salary threshold is tied to the state minimum wage and is calculated as a multiplier of a 40-hour workweek. Employees must generally meet both the salary threshold and applicable duties tests to qualify as exempt from overtime.
For 2027, the projected salary thresholds are:
- Small employers, 1–50 employees: $1,583.10 per week, or $82,321.20 annually
- Large employers, 51 or more employees: $1,759.00 per week, or $91,468.00 annually
This is an important reminder for retailers reviewing compensation, staffing, and budget plans for the coming year. Employers should review exempt employee salaries ahead of January 1, 2027, to determine whether adjustments may be needed.
Implementation schedule
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2026 Legislative Law Review released to Washington Retail Association Members
The Washington Retail Association (WR) has finalized and distributed its 2026 Legislative Law Review to all dues-paying members.
Produced following the conclusion of the 2026 legislative session, this comprehensive guide provides retailers with a detailed overview of key legislation impacting the retail industry. The Law Review includes bills that passed and bills that failed, giving members a clearer picture of the policy issues WR tracked, engaged on, supported, opposed, or monitored throughout session.
For bills signed into law, the Law Review outlines important compliance information, effective dates, and potential impacts on retail operations. This helps retailers prepare for upcoming changes and better understand how new laws may affect their businesses, employees, and customers.
The publication also highlights legislation WR successfully opposed on behalf of the retail community. Throughout the session, WR advocated for policies that support a healthy business climate and worked to prevent proposals that would have created unnecessary costs, operational challenges, or regulatory burdens for retailers.
The Legislative Law Review is one of many resources available exclusively to WR members and serves as an important tool for staying informed about Washington’s evolving legislative and regulatory landscape.
If you are interested in becoming a WR member and receiving the 2026 Legislative Law Review, along with access to advocacy, resources, and member services, please contact Katie Davies at kdavies@washingtonretail.org.
Current members who did not receive a copy of the 2026 Legislative Law Review should also contact Katie Davies at kdavies@washingtonretail.org to request one.
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How Lawmakers Voted on Retail Affordability in 2026
The Washington Retail Association (WR) has released its 2026 Consumer Affordability Scorecard, highlighting how lawmakers voted on key issues affecting retailers, employees, and the customers they serve. These votes reflect WR’s advocacy priorities and the work our team conducted throughout session through legislative testimony, direct engagement with lawmakers, and coalition partnerships focused on creating a safer, more competitive, and more affordable Washington.
Why Affordability Was the Focus
Every legislative session, decisions made in Olympia shape what Washington families pay at the register and what retailers must absorb to keep their doors open. From taxes and labor costs to public safety, liability exposure, and business regulation, these votes have real consequences for Main Street businesses, large employers, and consumers across the state.
What the Scorecard Tracks
The 2026 Consumer Affordability Scorecard tracks final recorded floor votes on priority legislation where WR took a formal support or oppose position and communicated that position to lawmakers before the vote was cast. The Scorecard is intended to provide transparency and help members better understand which policymakers supported policies that promote a safer, more competitive, and more affordable retail environment in Washington.
WR Releases Two Scorecards
In addition to the Consumer Affordability Scorecard, WR released a dedicated Income Tax Scorecard focused on Senate Bill 6346 and related floor amendments. This separate scorecard reflects the significance of the Legislature’s passage of the first broad personal income tax since the state Supreme Court struck one down in 1933, following more than 24 consecutive hours of debate on the House floor.
Key Issues Included
The Consumer Affordability Scorecard includes votes on key issues from the 2026 legislative session, including policies affecting public safety, labor, taxation, consumer costs, and business regulation. It also includes a review of the Governor’s actions on key legislation that impacted Washington’s retail landscape.
View the Full Scorecard
To view the full 2026 Consumer Affordability Scorecard, click here.
To learn more about WR’s advocacy efforts, please contact Crystal Leatherman, WR’s Director of Policy & Government Affairs, at cleatherman@washingtonretail.org.
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World Cup visitors drive strong sales for Seattle retailers
Seattle retailers and restaurants reported significant increases in customer traffic and sales during the recent FIFA World Cup match between the United States and Australia at Seattle Stadium.
Businesses throughout downtown Seattle and Pioneer Square experienced a sharp rise in visitors as thousands of fans gathered for the event. Many retailers and food establishments increased staffing and inventory to prepare for the larger crowds.
Some businesses reported record-breaking sales. A local pizza restaurant sold more than 500 pizzas on match day, far exceeding its typical daily volume. Other retailers and restaurants also saw substantial increases in customer activity compared with normal summer business levels.
According to business organizations in Pioneer Square, several establishments recorded their strongest sales performance in recent years. The increased activity highlights the economic impact that major sporting events can have on local businesses, particularly in areas surrounding event venues.
As Seattle continues to host World Cup matches, retailers and hospitality businesses are expected to benefit from continued visitor spending and increased foot traffic throughout the tournament.
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Seattle faces mixed outlook in national investment ranking
Seattle ranked 11th in the Financial Times and Nikkei Investing in America ranking, highlighting both strengths and challenges in the city’s business environment. The ranking evaluated 95 U.S. cities across categories including workforce and talent, business environment, quality of life, investment trends, and energy resilience.
Seattle received strong marks for workforce and talent at 81 out of 100 and foreign business needs at 82, reflecting the city’s skilled workforce and global economic connections. The city also scored 65 for investment trends and 67 for trade war resilience.
Areas of opportunity included business environment, which scored 47, quality of life at 44, openness at 53, and energy resilience at 38. The data shows Seattle continues to benefit from a strong talent base and economic assets while facing challenges that may impact business growth and investment decisions.
The Washington Retail Association (WR) continues to monitor economic trends affecting retailers and communities across Washington. Understanding these indicators helps businesses, policymakers, and stakeholders identify opportunities to strengthen the state’s retail environment and support long-term economic vitality.
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Puget Sound economy faces housing and employment slowdown
The Washington Retail Association (WR) is monitoring economic trends across the Puget Sound region as new data point to slower growth in both housing development and employment.
According to regional data, the Bellevue, Everett, Seattle, and Tacoma metropolitan area permitted approximately 14,000 housing units in 2025, the lowest annual total in a decade and a significant decline from the roughly 32,000 units permitted in 2021. Industry observers cite factors including higher construction costs, elevated interest rates, inflation, increasing property values, and lengthy permitting processes as contributors to the slowdown.
Employment trends have also softened. Revised figures indicate the region experienced a net loss of jobs in 2025, marking the first annual employment decline outside of the pandemic period since 2009. Year-over-year data show approximately 8,000 fewer jobs between April 2025 and April 2026.
Despite these challenges, population growth has remained positive. Seattle and King County continued to add residents, supported in part by international migration and the region's concentration of technology companies and higher education institutions.
Housing affordability remains a key concern, with King County's median home price reaching $875,000 in May 2026. Regional leaders continue to explore strategies such as streamlining permitting processes, supporting transit-oriented development, and increasing housing supply to address long-term affordability challenges.
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Inflation reaches a three-year high in May
Consumer price inflation increased to 4.2% in May, marking the highest annual rate in three years, according to newly released federal data. The increase was driven largely by higher energy costs, including significant gains in fuel prices.
The latest figures show inflation remains above the Federal Reserve’s 2% target, which may influence future decisions regarding interest rates. Core inflation, which excludes food and energy costs, rose 2.9% year over year.
Several consumer categories experienced price increases, including apparel, which rose 4.8%, and transportation services, which increased 4.1%. Fuel oil prices climbed 58.9% and gasoline prices increased 40.5% compared to the previous year.
Economic analysts noted that rising energy costs and other inflationary pressures continue to impact household budgets and business conditions. Regional differences were also reported, with inflation varying across the country. The West experienced a lower increase at 3.5%, while some other regions saw higher rates.
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Faster Labor Contracts Act raises questions about collective bargaining process
Proposed federal legislation known as the Faster Labor Contracts Act (FLCA) would change the process for reaching initial collective bargaining agreements between employers and newly organized employees.
The legislation would require employers and unions to reach a first contract within 120 days or enter binding interest arbitration, where a federally appointed panel would determine contract terms, including wages, benefits, scheduling, safety policies, and other workplace conditions.
Supporters of the bill argue it could help workers reach agreements more quickly. Opponents, including many business groups, argue it could reduce the role of employees and employers in negotiating agreements directly and limit workers’ ability to approve or reject final contract terms.
Under current labor law, collective bargaining is generally based on voluntary negotiations between employers and employees. The FLCA would introduce a process where unresolved negotiations could result in an outside panel determining the outcome.
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Fremont construction project sparks community conversation
A recent episode of The Weekly Seattle explored the ongoing construction impacts in Fremont and the changes surrounding the Route 40 project. Host Rachel Horgan spoke with Pete Hanning, Executive Director of the Fremont Chamber of Commerce, about the project’s goals, challenges, and the community response throughout the construction process.
The conversation highlighted the importance of communication between businesses, residents, and project partners as major infrastructure improvements move forward. Hanning shared insights into how the project has affected the Fremont business community and discussed the unexpected moments that helped shape the conversation around the work underway.
The Fremont Chamber of Commerce has been engaged with local businesses for decades, helping advocate for a vibrant and connected neighborhood. The discussion also emphasized the role local organizations play in bringing community perspectives to larger projects that impact daily operations.
For retailers and businesses, infrastructure projects can create both challenges and opportunities.
Listen here
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Downtown Seattle continues to attract residents, visitors, and retailers
New data highlights the continued strength of downtown Seattle as a retail, dining, and entertainment destination. According to information compiled by the Downtown Seattle Association, the area is home to more than 109,000 residents and serves a primary trade area of more than 712,000 people. Average household income is approximately $194,000, and more than 72% of residents hold a bachelor's degree or higher.
Downtown Seattle remains a major economic hub for the Puget Sound region, attracting millions of visitors and workers each year. Visit Seattle reported that King County welcomed 40 million visitors in 2024, while Downtown Seattle Association data showed an average of more than 154,000 weekday workers in mid-2025.
Consumer research indicates that downtown's customer base is largely made up of educated, technology-oriented professionals who value convenience, experiences, culture, wellness, and quality retail offerings. Many are frequent users of restaurants, entertainment venues, fitness facilities, and premium grocery stores, while also embracing online shopping and digital engagement.
For retailers, the concentration of affluent consumers, strong visitor activity, and ongoing population growth present continued opportunities. The retail core includes major national brands, independent businesses, cultural attractions, Pike Place Market, and Seattle's revitalized waterfront, reinforcing downtown's role as one of the region's premier shopping and lifestyle destinations.
Downtown Seattle Association
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Real estate outlook highlights opportunities and challenges
Representing the Washington Retail Association, Interim CEO Alesha Shemwell joined more than 20 industry professionals at a recent Real Estate Development Roundtable hosted by Schwabe and IMA. The discussion focused on investment trends, market conditions, and development opportunities across Washington.
Participants noted that investment capital remains available, but investors are increasingly focused on markets with strong population growth, reliable permitting processes, and stable economic fundamentals. Bellevue was frequently identified as an attractive market, with several attendees citing recent improvements in the permitting process.
Multifamily housing emerged as the strongest asset class, particularly workforce housing and projects in secondary markets. Homebuilding also continues to attract interest.
Industrial and retail properties were generally viewed as performing well compared with other sectors. Attendees pointed to continued demand and relatively stable market conditions in both categories.
The office market remains more challenging, though some investors are exploring opportunities tied to redevelopment and future land value.
Discussion also touched on Seattle's ongoing recovery. While concerns were raised about public safety, operating costs, and the city's long-term economic identity, participants noted that growing tourism activity could support future business and investment growth.
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King County approves sales tax increase for road maintenance
The Metropolitan King County Council approved a 0.1% sales tax increase to support road maintenance and infrastructure needs across the county. The increase, which takes effect January 1, 2027, is expected to generate approximately $102 million annually to address ongoing transportation funding challenges.
County officials said the additional revenue will help maintain existing roads, bridges, and safety improvements rather than fund new road expansion projects. The county currently manages about 1,500 lane miles and 193 bridges, with officials estimating a significant backlog of needed repairs.
The tax applies countywide and is expected to cost the median household about $40 more per year. A portion of the revenue will be distributed back to cities throughout King County based on population.
Supporters said the funding is needed to prevent further deterioration of the transportation system, while some council members raised concerns about the impact of increased costs on residents and businesses. The measure passed by a 5 to 4 vote and did not require voter approval under existing state authority.
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Seattle addresses public safety concerns on Aurora Avenue
Seattle leaders announced new efforts to address ongoing public safety concerns along Aurora Avenue North, including increased gun violence, human trafficking, and related criminal activity. Mayor Katie Wilson said the city will temporarily close several streets between 96th and 102nd avenues to reduce vehicle circulation in the area and direct additional city resources toward enforcement and support services.
Seattle City Attorney Erika Evans announced plans to pursue a new strategy aimed at removing firearms from individuals believed to be involved in trafficking and violent activity. The approach would use Extreme Risk Protection Orders, a legal tool that allows courts to temporarily restrict firearm access when someone is considered a significant safety risk.
The actions follow concerns raised by nearby residents, businesses, and community members who have called for additional measures to improve safety. City officials said the goal is to reduce violence while also connecting individuals impacted by exploitation with needed resources.
The effort represents a coordinated response among city departments and elected leaders as Seattle continues to evaluate strategies for improving public safety and addressing challenges affecting businesses, workers, and neighborhoods.
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Retail groups react to credit card fee settlement approval
A federal judge has granted preliminary approval to a proposed settlement in a long-running antitrust lawsuit involving Visa and Mastercard and the credit card swipe fees paid by merchants.
The National Retail Federation (NRF) expressed disappointment with the decision, arguing that the agreement does not provide meaningful relief for retailers facing rising payment processing costs. According to NRF, the settlement leaves in place the current payment card system and does not address concerns about competition in the marketplace.
Credit card swipe fees, also known as interchange fees, are charged to merchants each time a customer uses a credit card for a purchase. Retail industry groups have long argued that these fees continue to increase and place financial pressure on businesses and consumers alike.
Following the court's preliminary approval, additional legal proceedings are expected as stakeholders review the proposed settlement and consider next steps.
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Gift card fraud continues to challenge retailers and consumers
Gift card fraud remains a growing concern for retailers and shoppers as criminals use increasingly sophisticated methods to steal funds from activated cards. According to recent reports, organized groups have targeted gift card displays by capturing card information, altering barcodes, or accessing activation details before returning cards to store shelves.
Once compromised cards are purchased and loaded, stolen funds may be used for online purchases or converted into high-value merchandise, creating losses for consumers and businesses. Federal agencies continue to investigate large-scale gift card fraud networks, while retailers are implementing additional safeguards, including improved packaging, updated activation processes, and stronger security features.
The Washington Retail Association encourages retailers and customers to remain vigilant. Shoppers can reduce risk by purchasing gift cards from trusted locations, such as customer service areas, checking cards for signs of tampering, and confirming that security features, such as PIN coverings, remain intact.
Retailers are encouraged to continue educating employees and customers about prevention strategies as fraud schemes evolve. Protecting gift cards helps maintain consumer confidence and supports a safer retail environment.
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Washington Retail Association diversity statement
Washington Retail Association 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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Jan Himebaugh, President & CEO — 360.200.6450 — Email
Crystal Leatherman, Dir of Policy & Government Affairs — 360.200-6453 — Email
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