Newsletter — March 13, 2025 | |
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POLICY
ECONOMY
ON THE LOCAL FRONT
POLITICAL NEWS
RETAIL THEFT & PUBLIC SAFETY
IN THE NEWS
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What we are tracking — WR Legislative Hot List
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.
Data Privacy (HB 1834)/(SB 5708)
HB 1834 and SB 5708 " Protecting Children Online from Addictive Feeds” are sparking significant debate among industry groups and policymakers due to its broad scope and potential impact on businesses. Inspired by two California laws—one focused on age verification and the other on curbing addictive social media feeds—the bill aims to safeguard children's online privacy and mental health.
Position: Oppose
Status: March 6, 2025: Rules Committee relieved of further consideration. Placed on second reading.
Packaging Recycling – Extended Producer Responsibility (SB 5284)
Improving Washington’s solid waste management outcomes - This exemption unfairly places the burden on retailers, making them the designated producer of last resort, whether they produce products or not. Our members are not avoiding responsibility, but costs should be equitably distributed. Additionally, this legislation would create yet another tax burden on retailers, which in turn would drive up consumer prices.
Position: WR has concerns with this bill.
Status: March 7, 2025: Passed the Senate on a vote of 27-22 – now in the House Environment & Energy committee waiting for a hearing
Fiscal Note: Recent cost estimates for California’s similar program are $36 billion.
Public Safety, Retail Theft, Organized Retail Crime (ORC) (SB 5060)
We support initiatives that enhance public safety and deter retail theft and organized retail crime. This proposal will provide $100 million in grants to help law enforcement agencies recruit and hire officers, increasing their presence across Washington State.
Position: WR is in support of this bill.
Status: On the Senate floor calendar waiting for a vote.
Employment Law: Remove Paid Leave exemptions for small businesses (HB 1213)
Eliminating exemptions that are similar to the Federal Family and Medical Leave Act (FMLA) for small business breaks the Legislature’s previous commitments to small businesses with an extremely high fiscal note that our state cannot afford.
Position: WR is opposed to this bill.
Status: March 9, 2025: Rules Committee relieved of further consideration. Placed on second reading.
Employment Law: Allowing for corrections to wage and salary disclosures (SB 5408)
This right to cure legislation grants employers an additional 10 days to correct job posting violations, excluding wage band issues. While clarification is needed on whether the correction period applies to calendar or business days, progress on the bill is promising, and further refinements are expected.
Position: WR is in support of this bill.
Status: March 4, 2025: SB 5408 is waiting for a hearing in House Labor & Workplace Standards.
Unemployment Insurance: Unemployment benefits for striking workers (SB 5041)
Washington already has one of the most generous and permissive UI systems in the country. UI is meant for workers who lose their jobs through no fault of their own—not those who voluntarily choose to strike. Expanding UI in this way undermines its core purpose, increases costs for all employers, and ultimately raises consumer prices.
Position: WR opposes this bill.
Status: March 7, 2025: Third reading, passed; yeas, 28; nays, 21; absent, 0; excused, 0.
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Senate passes unemployment benefits for striking workers
The Washington State Senate has approved SB 5041, a bill that threatens the integrity of our unemployment insurance system by granting benefits to striking workers for up to twelve weeks. This legislation would disrupt labor negotiations, tipping the scales for prolonged strikes, and severe financial consequences for our state and the UI trust fund.
The right to strike is respected but should be a last resort, with labor and management negotiating in good faith. UI benefits during a labor dispute unfairly shift the balance.
Retailers and the business community remain concerned that this bill will create a conformity issue with the federal UI system because unemployment is meant for workers who lose their jobs through no fault of their own.
Additionally, public employers may be forced to cover benefits for workers participating in illegal strikes unless a court formally declares the strike unlawful.
Lawmakers should be concerned that the bill’s fiscal note fails to consider worst-case scenarios for extended strikes and excludes data from significant strikes like the recent Boeing and Teamsters concrete strike. The estimated cost of this recent 7-week strike would have cost the trust fund $162 million. An extended strike would have had an even greater impact on the trust fund and the economy.
The bill now moves to the House, where a similar proposal allowing four weeks of benefits passed in the 2024 session but ultimately failed in the Senate.
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Photo by Washington State Standard | |
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Flawed Packaging Recycling Bill passes Senate
SB 5284 narrowly passed the Senate on March 7 and now moves to the House for consideration. WR has significant concerns with the bill in its current form, particularly regarding changes to the definition of "producer," which now exempts beverage container distributors and agricultural commodities from responsibility for recycling their packaging.
The financial impact on consumers remains unknown, and the unique needs of each county have yet to be assessed.
California, which passed a similar law (SB 54), recently projected implementation costs at an astonishing $36 billion. This staggering amount caused the Governor to send the department back to the drawing board to implement the law.
WR supports responsible packaging recycling through extended producer responsibility (EPR). However, SB 5284 falls short. Before adopting such a program, the state should conduct a comprehensive, county-by-county needs assessment and cost analysis. Additionally, learning from other states, like California and Oregon, would help avoid costly mistakes before implementing a statewide program.
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L&I proposes rule updates for workplace injury and illness tracking
The Washington State Department of Labor & Industries (L&I) is updating its workplace injury and illness tracking rules to align with recent federal changes from the Occupational Safety and Health Administration (OSHA). The proposed revisions to Chapter 296-27 WAC ensure that Washington’s regulations remain as effective as OSHA’s updated federal standards, which took effect in January 2024.
As part of the rulemaking process, L&I’s Division of Occupational Safety and Health (DOSH) has filed a CR-102 (Proposed Rulemaking).
Employers and stakeholders are encouraged to participate in upcoming public hearings and submit feedback.
Public Hearings:
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April 16, 2025 – Pre-hearing overview at 9:00 a.m., hearing at 9:30 a.m.
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April 17, 2025 – Pre-hearing overview at 1:00 p.m., hearing at 1:30 p.m.
Hearings will be conducted online via Zoom, with call-in options available. Written comments are due by April 30, 2025, at 5:00 p.m. and can be submitted via email, fax, or mail.
For details on how to participate, visit the Agency Rulemaking Page.
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Equal Pay and Opportunities Act: Proposed rule changes open for comment
The Washington State Department of Labor & Industries (L&I) has filed a Proposed Rulemaking (CR-102) to implement changes to the Equal Pay and Opportunities Act (EPOA). These updates align with Substitute House Bill 1905 (SHB 1905), passed in 2024, which expands protections against pay and promotion discrimination beyond gender to include race, creed, military status, and other protected classes.
The proposed rules provide clarity on key aspects of EPOA, including:
- Pay equality requirements
- Employees’ right to discuss wages freely
- Wage and salary history privacy
- Required disclosure of salary ranges and benefits in job postings
- Protections against retaliation
- L&I’s enforcement and citation process
L&I is accepting written comments on the proposed rules until March 19, 2025, at 5 p.m. PST. Comments can be submitted by mail to Reed Simock at the WA State Department of Labor & Industries, Fraud Prevention and Labor Standards Division, PO Box 44510, Olympia, WA 98504-4510. Comments may also be sent via email or faxed to 360-902-5300.
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Gov. Bob Ferguson speaks to reporters at the state Capitol on Feb. 27, 2025 about his plans to cut state spending by about $4 billion over four years. (Photo by Bill Lucia/Washington State Standard) | |
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Governor Bob Ferguson’s statement on the Governor’s Emergency Powers
March 11, 2025
Press release issued by Governor’s Office
“Despite lawmakers on both sides of the aisle engaging in good faith negotiation, it’s clear that the Legislature will not adopt bipartisan legislation to place reasonable limits on the Governor’s emergency powers.
“Reform is necessary to protect Washingtonians in times of emergency while ensuring an appropriate balance between the branches of government.
“Consequently, I commit to the people of Washington and the Legislature that I will take the following actions in the event of an emergency when the continuity of government has not been disrupted:
“If I declare a state of emergency that lasts longer than 60 days while the Legislature is not in session, I will terminate that emergency, or any order arising from it, if three leaders of the four legislative caucuses write to me requesting that action.
“Moreover, if a state of emergency has been in place longer than 120 days while the Legislature is not in session, I will call a special session to give the Legislature the opportunity to terminate an emergency order or declaration.
“This policy will remain in effect as long as I am Governor unless the Legislature adopts bipartisan legislation amending these emergency powers.”
Senator Keith Wagoner (R-Sedro Wooley) shared this statement in response:
“I welcome the Governor’s proactive approach; it demonstrates his sincere understanding of the issue of unchecked governors’ emergency powers and the important role the legislature plays. This is a win for Washington’s citizens but, it is a perishable win. The legislature needs to codify similar provisions into law.”
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5 things to know about tariffs
These ‘taxes on imports’ could increase consumer prices and uncertainty in the supply chain.
Jonathan Gold , VP, Supply Chain & Customs Policy
March 5, 2025
Retailers strive to deliver a wide selection of affordable products every day to their customers. However, they also rely on products imported throughout international supply chains to offer American consumers high quality goods at a variety of price points. As policymakers consider a number of trade proposals, it’s important to know the significant impact tariffs will have on retailers, consumers and the U.S. economy.
What is a tariff?
Tariffs are a tax on goods imported into the United States and are paid for by the U.S. importer. Tariffs are just one of several trade policy tools available for policymakers to achieve a successful diplomatic outcome. They are intended to raise the cost of imported goods, making them less competitive compared with domestically manufactured products.
When tariffs are enacted, retailers are forced to choose between raising their prices or relying on already slim profit margins to absorb the increased cost of inventory.
What announcements has the Trump administration made regarding international trade and tariffs?
At the start of his second term, President Trump signed three Executive Orders placing a 25% tariff on imports of goods and a 10% tariff on energy resources from Canada, a 25% tariff on imports from Mexico, and a 10% tariff on imports from China.
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Economic uncertainty looms as inflation data awaits
This week, all eyes are on the latest Consumer Price Index (CPI) report, which will reveal whether inflation continues its upward trend or if pressures on businesses and consumers are easing. With rising economic uncertainty and a potential government shutdown looming, key indicators will shape expectations for businesses and policymakers alike.
Small business confidence and job openings data will provide insight into whether growing policy uncertainty is dampening investment and hiring. Meanwhile, the Producer Price Index (PPI) and CPI reports will indicate whether inflation, driven by rising oil, food, and insurance costs, remains persistent. A higher-than-expected CPI reading could delay Federal Reserve rate cuts, pushing bond yields and mortgage rates higher.
Adding to concerns, the government faces a potential shutdown if a spending agreement isn’t reached by March 14. Economic research suggests that such uncertainty can reduce business investment by 2-3 percentage points and slow GDP growth by up to 1%.
For retailers, these developments could impact consumer spending and business planning. A lower-than-expected inflation reading and a resolved shutdown could provide some relief. Either way, this week’s economic data will be crucial in shaping the outlook for the months ahead.
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Retailers brace for rising tariffs as import volumes hold steady
Amid ongoing tariff uncertainty, U.S. ports are seeing strong import volumes, with projections indicating continued growth through spring before potential declines this summer, according to the latest Global Port Tracker report from the National Retail Federation (NRF) and Hackett Associates.
Retailers are working to bring in merchandise ahead of increasing tariffs, particularly on Chinese imports, which recently doubled from 10% to 20%. NRF Vice President Jonathan Gold emphasized that tariffs are ultimately a tax on consumers, raising prices for American families. Meanwhile, new fees on Chinese-built ships being considered by the U.S. Trade Representative could further drive up costs for cargo owners.
January imports reached 2.22 million Twenty-Foot Equivalent Units (TEUs), marking a 13.4% year-over-year increase. February projections suggest the busiest month in three years, while March through May are expected to see continued growth. However, declines are anticipated in June and July, reflecting both tariff concerns and last year’s preemptive import surge ahead of labor disputes.
Retailers continue to navigate supply chain challenges, balancing cost pressures with consumer demand. The full Global Port Tracker report is available to NRF members at NRF.com/PortTracker.
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St. Patrick’s Day spending expected to reach $7 billion
As St. Patrick’s Day approaches, consumer enthusiasm remains strong. According to the National Retail Federation’s annual survey, 61% of consumers plan to celebrate the holiday, with spending expected to total $7 billion. On average, individuals anticipate spending $43.64 on festive purchases.
The most popular way to celebrate continues to be wearing green, with 79% of participants donning the color. Other common traditions include making a special dinner (30%), attending a party at a bar or restaurant (26%), and decorating homes or offices (24%). Additionally, some will host private gatherings (15%) or attend parades.
Retailers can capitalize on this excitement by promoting themed apparel, party supplies, and festive food and drink options. With St. Patrick’s Day drawing both social and at-home celebrations, businesses have opportunities to engage consumers through targeted promotions and in-store experiences.
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US Small Business Administration relocating Seattle Office and revising loan eligibility policies
The U.S. Small Business Administration (SBA) has announced plans to relocate its office in Seattle. This decision is part of a broader move to shift SBA offices in several cities, including Denver, Atlanta, Boston, New York, and Chicago. While the SBA has not specified the new location for the Seattle office or the timeline for the move, the agency has indicated that the change is part of a broader adjustment to its operations.
In addition to the office move, the SBA introduced a new requirement for loan applications. A “citizenship verification provision” will be included to ensure that businesses seeking SBA support are not owned, in whole or in part, by individuals who are not authorized to be in the country. The SBA has not clarified whether loans will still be available to noncitizens who hold permanent resident or green card status.
In 2024, the Seattle office approved significant loan amounts, including $117 million in 504 program loans for real estate projects and over $965 million in 7(a) program loans for working capital.
The SBA's decision has sparked responses from local leaders. Rachel Smith, president and CEO of the Seattle Metropolitan Chamber of Commerce, expressed concern, stating that the move could hinder small business leaders in the region. A spokesperson for Seattle Mayor Bruce Harrell also voiced criticism, arguing that the change could negatively impact local businesses and communities.
The SBA maintains an additional office in Spokane, and its Portland office supports several counties in southwest Washington. The future of SBA services in the region will depend on the relocation and the new loan eligibility policies.
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President Trump’s agenda: What to expect next
Highlights from the president's first speech to a joint session of Congress
PWC March 7, 2025
President Trump addressed a joint session of Congress on Tuesday, March 4, 2025, making it clear that he intends to continue the course he set when he took office on January 20. He reaffirmed broad-based tax cuts, increased tariffs, deregulation of US business, increased domestic energy production, along with maintaining America’s leadership in artificial intelligence (AI) and other critical technologies. He praised the work of the Department of Government Efficiency (DOGE) for cutting the size of government, the new measures to restrict border crossings, and his own “America First” approach to foreign policy.
To what extent — and in what manner — President Trump will deliver on all of his promises depends in part on Congress, the courts and economic and geopolitical developments. US businesses can and should act to navigate this uncertain and fast-changing environment in five key areas.
President Trump called for permanent tax cuts for all Americans, likely a reference to proposals to make the 2017 Tax Cuts and Jobs Act permanent. He did not specify if he favors a “one big bill” approach to reconciliation tax legislation, as seen in the House’s budget resolution. Even if the precise timing and nature of tax reform remain uncertain, Republicans are united in wanting to pass tax legislation — otherwise nearly all Americans would face tax increases.
Other proposals included ending tax on tips, overtime and Social Security benefits; offering tax relief for manufacturing with 100% expensing retroactive to January 2025 and making interest payments on car loans tax-deductible for cars made in America. Time will tell if Congress and the fiscal scenario permit all these proposals to be enacted. Businesses also could be affected by potential revenue-raising measures that Congress is reported to be considering to limit the cost of any final bill.
What to do
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Model scenarios. Whether it’s one reconciliation bill that would cover immigration and border security, tax issues and spending, or a two-bill strategy, assess how potential shifts in tax law could affect your cash flow, investments and overall tax liabilities.
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Make your voice heard. Engage with policymakers to build public support for tax and trade policies that promote growth and business investment. Some tax legislation is likely to pass this year — this is your opportunity to shape it.
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Capture new value. Leadership — including COOs and tax leaders — should be planning now for value chain transformation that can leverage new tax incentives.
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Photo By Washington State Patrol | |
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Senate fails to approve measures to improve public safety
The Senate failed to act on SB 5060, a $100 million law enforcement grant program for local governments, before the bill cutoff. It remains uncertain whether the measure will be revived through amendments to the budget or other legislation during the remainder of the session.
WR strongly supports SB 5060. Washington state ranks last in the nation for law enforcement officers per capita, a position it has held for several years. As a result, police response times in many jurisdictions are slow, and in some cases, non-existent for property crimes like retail theft and organized retail crime.
WR is pleased that Governor Ferguson has prioritized SB 5060 and its funding. A strong public safety system requires investment in law enforcement, prosecutors, defense attorneys, and treatment programs to ensure our communities, and the places we work, and shop are safe and thriving.
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Walgreens to go private in $10 billion buyout
Walgreens Boots Alliance has agreed to be acquired by private equity firm Sycamore Partners in a nearly $10 billion deal, aiming to revitalize the struggling retailer. The buyout will take Walgreens private, providing flexibility to restructure without Wall Street pressures. Shareholders may receive up to an additional $3 per share under specific conditions.
The pharmacy chain has faced financial struggles due to rising costs, shrinking prescription reimbursements, and increasing retail theft. As part of its turnaround strategy, Walgreens plans to close 1,200 of its 8,500 U.S. stores and has already scaled back its VillageMD clinic business.
This deal follows a challenging year where Walgreens’ stock lost nearly two-thirds of its value. The transaction price represents a 30% premium compared to December’s share price when acquisition rumors surfaced. Including debt, the total deal is valued at nearly $24 billion.
Walgreens has taken aggressive steps to cut costs, including suspending its dividend and reducing its stake in drug distributor Cencora. The company joins Rite Aid in moving away from public trading, leaving CVS, Walmart, and Kroger among the last major pharmacy operators still publicly traded.
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Lowe’s Foundation Gable Grants: Supporting skilled trades training
The Lowe’s Foundation is continuing its mission to close the skilled trades gap with its Gable Grants program. Community and technical colleges offering innovative skilled trades training programs are encouraged to apply for funding, with the current application window open until March 31, 2025.
This round of grants is exclusively for community and technical colleges, while a separate cycle for community-based organizations and nonprofits will open later this year.
The Gable Grants program is part of a five-year, $50 million initiative aimed at training 50,000 job-ready skilled tradespeople by 2028. Since its launch in 2023, the Lowe’s Foundation has awarded over $34 million to institutions supporting workforce development in fields such as carpentry, HVAC, electrical, plumbing, and appliance repair. Just last month, nearly $9 million was awarded to 15 nonprofit organizations across the country.
This is a great opportunity to support workforce development in your community. Please share this information with any eligible institutions.
For eligibility guidelines, FAQs, and more details, visit the Lowe’s Foundation website.
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CVS adapts with smaller pharmacy-only stores
CVS is shifting its retail strategy by introducing a dozen smaller-format stores in 2025, focusing solely on pharmacy services. These new locations, about half the size of traditional CVS stores, will eliminate the retail section that typically sells snacks, greeting cards, and other consumer goods.
This move is part of CVS’s broader transformation efforts, which have included closing over 1,000 stores and reducing its workforce. The company is responding to industry challenges, including competition from major retailers like Amazon and Target, as well as rising concerns over retail theft.
The new format will still offer a full-service pharmacy and select over-the-counter products, tailored to meet local community needs. A CVS spokesperson emphasized that this shift is designed to “strategically realign our pharmacy footprint to better support patients.”
CVS’s changes reflect wider disruptions in the pharmacy industry. Walgreens recently announced a major restructuring, including store closures and a $24 billion private equity buyout, while Rite Aid has shuttered hundreds of locations after exiting bankruptcy.
As CVS bets on a pharmacy-centric model, it remains to be seen how this strategy will help the company compete in an increasingly digital and competitive market.
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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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