Newsletter — December 18, 2025 | | |
Season’s Greetings from Washington Retail Association
As the year comes to a close, WR extends our sincere gratitude to our members, partners, and supporters across the state. Your resilience, innovation, and commitment to serving communities, large and small, continue to define the strength of Washington’s retail industry.
This past year brought both challenges and opportunities, and retailers once again rose to meet them, supporting local economies, creating jobs, and adapting to a rapidly changing landscape. We are proud to stand alongside you as an advocate, resource, and partner.
As we look ahead to the New Year, we remain focused on advancing policies that support retail businesses, strengthening public-private partnerships, and ensuring a vibrant future for employers and employees alike.
Wishing you and your families a joyful holiday season and a healthy, prosperous New Year. We look forward to continuing our work together in the year ahead.
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POLICY
ECONOMY
ON THE LOCAL FRONT
POLITICAL NEWS
RETAIL THEFT & PUBLIC SAFETY
IN THE NEWS
TRENDS
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Previewing the 2026 legislative session: A critical year for retail
As Washington prepares for the 2026 legislative session, retailers can expect a fast-moving and consequential 60 days. Despite record revenues, state spending has continued to accelerate, prompting lawmakers to revisit a wide range of tax concepts including renewed discussions around wealth and intangibles taxes, property tax cap increases, and sector- or product-specific fees.
Public safety will again be one of the most dominant themes. With Washington continuing to experience some of the highest rates of retail theft and organized retail crime in the nation, legislators are preparing to advance proposals that increase penalties for coordinated theft rings, improve accountability for repeat offenders, and strengthen local ORC task-force funding.
Environmental and sustainability policy will also play a significant role this session, with expected proposals around expanded producer responsibility programs, new packaging and chemical standards, and renewed interest in a statewide bottle-deposit system or further restrictions on plastic products.
Meanwhile, policymakers are preparing to revisit several major issues in technology and consumer data, including AI transparency requirements, deepfake and content-verification standards, and broad updates to consumer privacy law.
Employment and workforce policy will add further complexity, with anticipated debates around minimum wage increases, scheduling mandates, PFML adjustments, workplace-monitoring rules, and long-term sustainability concerns within the state’s unemployment insurance and workers’ compensation systems.
The WR team will be working hard in Olympia to ensure that retail industry is well-represented as we advocate for policies that support safe stores, a strong workforce, and a competitive business climate. The upcoming session presents both significant challenges and meaningful opportunities to shape balanced, practical policy solutions.
View WR’s full 2026 Legislative Priorities
| | Washington State Attorney General Nick Brown after a press conference to discuss the Immigrant Worker Protection Act in Olympia on Friday, December 5, 2025. (Karen Ducey / The Seattle Times) | |
Proposed Immigrant Worker Protection Act: What employers should know
The Legislature has pre-filed HB 2105 that models after California’s Immigrant Worker Protection Act enacted in 2017. The draft, which originated from the State Attorney General’s Office expands both compliance requirements and penalties well beyond California’s model.
Expanded Compliance Obligations. It would require employers to notify all workers employed at any point during the prior three years with 72-hours of receiving a federal I-9 inspection notice, creating substantial burdens for retailers with high turnover or seasonal operations. It also broadens the definition of “worker records” to include geolocation and biometric data, and restricts voluntary cooperation with federal agencies unless a subpoena or judicial warrant is presented. All these requirements would necessitate employers to create highly complex processes to ensure accurate and timely compliance.
Significant Enforcement Powers and High Penalty Exposure. The draft includes an expansive anti-retaliation section covering termination, schedule changes, reduced hours, pay changes, and threats related to immigration status. It authorizes the Attorney General to issue civil investigative demands and pursue enforcement actions. Most notably, penalties are assessed per Washington-based worker, instead of California’s per-violation approach. This multiplier could result in significant financial exposure for employers of any size. The bill also creates a private right of action with statutory damages equal to 80 times the state minimum wage per worker, plus attorney fees.
WR is seeking employers’ input to work with the AGO and the Legislature as we prepare for the 2026 session.
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Attorney General’s Office launches Workers Rights Unit & seeks broader investigative authority
In November, Attorney General Nick Brown announced the creation of a new Workers’ Rights Unit to expand enforcement of wage theft, discrimination, worker misclassification, and other labor standards. In addition, the AGO is circulating draft legislation to broaden its investigative tools through Civil Investigative Demands (CIDs), a pre-litigation authority widely used in other states.
The proposal would extend CID authority to investigations involving prevailing wage on public works, the Washington Law Against Discrimination, select law-enforcement accountability statutes, and wage-and-hour laws such as the Minimum Wage Act and Wage Payment Act. Today, the AGO has CID-like authority only in narrower areas such as consumer protection, Medicaid fraud, and charitable trusts.
In many states, CID authority allows attorneys general to gather facts before filing a lawsuit, often resulting in investigations being resolved informally, closed without action, or corrected without litigation. This can reduce legal costs, risk exposure, and uncertainty for employers. However, the current Washington draft contains very broad document-demand and investigative authorities.
WR is working with the business community to seek guardrails around the expanded CID authority to better align with national standards that include relevance, proportionality, and undue-burden limitations. Such guardrails help ensure that the tool is effective for enforcement while also protecting respondents’ due-process rights.
A remaining question is whether these initiatives will require additional funding. Senate Ways & Means Chair Sen. June Robinson has stated publicly that no new funding is likely to move through her committee this session.
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Toxic-Free Cosmetics Act sell-through deadline set for Dec. 31, 2025
Washington retailers and distributors should prepare now for the sell-through deadline under the Toxic-Free Cosmetics Act (TFCA). The law’s initial restrictions took effect Jan. 1, 2025, and products containing prohibited chemicals may be sold only during the one-year sell-through period that ends Dec. 31, 2025.
Key compliance points for retailers:
- Review current inventory and identify any products that may contain restricted substances, including formaldehyde releasers.
- Work with suppliers to confirm formulations and obtain documentation showing products meet TFCA requirements.
- Note interim rules on lead impurities and other transitional provisions that may affect product eligibility.
- Maintain records demonstrating good-faith efforts to comply in case of enforcement inquiries.
- Expect the Department of Ecology to continue clarifying rules and enforcement approaches as the program matures.
For implementation help, compliance resources, and guidance materials are available on the Department of Ecology’s webpage.
Retailers should act promptly to ensure prohibited products are removed from shelves by Dec. 31, 2025, and to minimize disruption to shoppers and operations.
For questions, contact WR’s Director of Policy and Government Affairs, Crystal Leatherman, CLeatherman@WashingtonRetail.org.
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Upcoming inflation adjustment to workers’ compensation penalties
Washington state law requires periodic inflation adjustments to certain workers’ compensation penalties. A statute adopted in 2020 increased penalty amounts and established automatic updates every three years using inflation data. Many of these penalties had not changed since the 1980s.
The first inflation adjustment took effect July 1, 2023. The next adjustment is scheduled for July 1, 2026. The Department of Labor and Industries anticipates a 12 percent increase based on changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers in the Seattle area. For example, a penalty currently set at $1,161 would increase to approximately $1,300.
The adjustment applies to several areas of compliance under Title 51 RCW. These include failure to register for workers’ compensation coverage before operating with covered workers, violating a stop work order, failing to keep or allow inspection of required records, delaying or refusing benefit payments by self-insurers, noncompliance with workers’ compensation rules, and willfully obtaining erroneous payments. Certain penalties affecting medical providers for reporting and assisting injured workers are also included.
L&I is required to calculate the anticipated adjustment and solicit stakeholder comments in advance. While comments may be submitted, the agency does not have discretion to alter the inflation-based adjustment. Final penalty amounts will be announced and posted by L&I in June 2026.
Learn more
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A record 159 million consumers expected to shop on Super Saturday
An estimated 158.9 million consumers plan to shop on the last Saturday before Christmas, according to the annual consumer survey released by NRF and Prosper Insights & Analytics. The figure is up from 157.2 million shoppers last year and surpasses the previous record of 158.5 million in 2022. The survey also found that 45% of consumers plan to shop in-store and online for Super Saturday, and only 51% had completed their holiday shopping by early December. For more holiday consumer insights, visit NRF’s Winter Holiday Headquarters.
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Port cargo slowdown expected to continue into 2026
A new Global Port Tracker report from the National Retail Federation and Hackett Associates indicates that declining import volumes at major United States container ports are likely to continue into 2026. Recent drops are tied to tariff impacts and uncertainty surrounding future trade policy.
Although retailers are well stocked for what is expected to be a record holiday season, NRF notes that shifting trade decisions will shape supply chain strategies in the year ahead. Some tariffs have recently been reduced, while others remain under legal review. Even if certain tariffs are overturned, analysts expect efforts to reinstate them through other authorities.
Hackett Associates reports that rising tariff pressures are already contributing to weaker cargo demand. Shipping rates on both coasts have begun to ease as import needs decline from key global markets.
Global Port Tracker data shows that October imports reached 2.07 million containers, nearly eight percent lower than a year earlier. Projections for November and December suggest even steeper year-over-year declines. The slowdown follows elevated imports in late 2024 when retailers moved goods earlier to avoid potential disruptions.
Forecasts suggest that cargo movement may see a modest month to month increase early next year, but volumes are still expected to remain below prior levels as retailers navigate evolving trade conditions.
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Retail sales show steady holiday season momentum
New data from the CNBC and National Retail Federation Retail Monitor indicate that retail sales posted solid growth in November, signaling a steady start to the holiday shopping season. The results suggest overall spending remains on pace with national forecasts for the remainder of the year.
Total retail sales excluding auto dealers and gas stations increased slightly compared to October and rose more than four percent compared to the same period last year. Core retail sales, which also exclude restaurants, were essentially flat from the prior month but showed similar year-over-year growth.
The data reflects consumers who are spending with intention and paying close attention to value. Retailers are responding by offering a range of competitively priced options designed to meet different household budgets. This balance between cautious consumer behavior and strategic pricing appears to be supporting consistent sales activity during the early holiday period.
Overall, the November figures point to a stable retail environment as the season continues, reinforcing expectations for moderate but meaningful growth through the end of the year.
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Seattle Council President Nelson introduces new ethics reform bill
City of Seattle Council President Sara Nelson has introduced Council Bill 121130, which would amend the City Ethics Code to limit the role of political consultants in Seattle city government. On December 4, the Governance, Accountability, and Economic Development Committee, which she chairs, heard a presentation on the bill and discussed it. The legislation is now on the agenda for the Committee’s December 11 meeting.
Modeled after regulations adopted in San Francisco and Portland, the legislation would require political consultants to register and report their political consulting services with the city. It would cover political consultants working on campaigns for city office or ballot measures.
Most importantly, it would prohibit political consultants from being compensated for campaign work while they are under contract with the city. CB 121130 would require a one-year cooling-off period between the end of work under a city contract and the beginning of compensated work for an elected official, a political candidate for city office, or a city ballot measure.
Two September 2025 articles in The Seattle Times raised questions about the campaign work and special access of Mayor Bruce Harrell’s political consultant while working under no-bid city contracts.
Harrell’s challenger, Katie Wilson, narrowly defeated him in the November General Election. Wilson will take office as mayor on January 1, 2026.
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2025 election results certified by Secretary of State
On December 4, 2025, the Washington Secretary of State certified results from the 2025 special elections, including key contests for the Legislature and local governments across the state. Certification brings clarity for retailers as newly elected officials prepare to take office.
WR’s Political Action Committees (PACs) supported a number of candidates in special legislative races, providing endorsements and campaign contributions in districts such as 26, 33, 41, and 48. WR’s PACs also engaged in local contests, backing candidates for county council, mayor, city attorney, and city council seats in communities that include King County, Seattle, Bellevue, Des Moines, Federal Way, Lynnwood, Marysville, Moses Lake, and Port Angeles.
WR’s PACs did not take positions in every race on the ballot, but closely followed outcomes in open seats and contests involving appointed lawmakers and incumbents. With the election now complete, WR congratulates all successful candidates and thanks every individual who chose to run for public office.
WR looks forward to working with state and local leaders in the year ahead to support policies that strengthen Washington communities, provide stable jobs and help retailers of all sizes serve customers across the state.
Election Results
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As Washington state ranks No. 1 in U.S. for retail theft, lawmaker pushes for reform
December 7, 2025
Simone Carter / The Olympian (TNS)
Washington is the nation’s unfortunate leader when it comes to retail theft — an issue that some state lawmakers are signaling needs urgent attention.
In a 2024 Forbes Advisor survey, Washington ranked as the No. 1 state in the nation most impacted by retail crime. Now state Rep. Mari Leavitt, a University Place Democrat, is sounding the alarm on organized retail crime (ORC), the coordinated stealing and reselling of goods for financial gain, typically by large-scale crime rings.
Leavitt said she’s heard concerns from local small businesses and chambers of commerce about the criminal trend.
“Just to be clear, I’m not talking about a grandmother stealing something for her grandson to eat,” she said in a phone interview. “I’m talking about those who are intent with coordinated efforts in order to create havoc in communities.”
Last session Leavitt introduced legislation that sought to crack down on organized retail theft via sentencing enhancements, but it didn’t move beyond a public hearing. (Opponents of the measure argued that harsher sentences don’t deter people from committing crimes.) Since then, Leavitt said she’s worked on the bill, which attracted bipartisan support.
Leavitt said a King County prosecutor recommended language to make her bill stronger, which will be incorporated into an amendment. Still, she added, money is needed to prosecute these cases.
“You can create all the tools you want, but unless we have resources to prosecute these cases, it makes it difficult,” she said.
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Olympia and Redmond halt Flock safety camera use amid privacy and data-access concerns
In Olympia and Redmond, Washington, city leaders have moved to halt the use of Flock Safety automated license plate reader (ALPR) cameras amid growing privacy and data-access concerns.
On December 3, 2025, Olympia officials suspended a two-year pilot program that began in August 2024. Interim Police Chief Shelby Parker recommended the suspension, citing the importance of community trust and the need to reassess potential risks to privacy, data access, and the city’s status as a sanctuary city. All 15 cameras have been hooded and are being deactivated while the city evaluates broader system vulnerabilities and developments at the state and federal levels.
Redmond previously paused its 24 Flock cameras after U.S. Immigration and Customs Enforcement agents arrested multiple people near camera locations. Although Police Chief Darrell Lowe said ICE never had access to Redmond’s data, city officials expressed concern that courts could later require disclosure. The council opted to keep the system disabled while seeking legal review of terminating the contract, particularly in light of a court ruling that Flock data is a public record and a University of Washington report showing federal immigration agencies accessed other cities’ ALPR data without local departments’ knowledge.
At the state level, lawmakers are also moving to establish new guardrails for ALPR use. Senator Yasmin Trudeau is advancing legislation that would set statewide standards for how long agencies may retain license plate data and how that information can be shared. The draft proposal would significantly shorten retention time and require specific safeguards around interagency access.
As local governments pause their ALPR programs and statewide policy discussions take shape, Washington is entering a pivotal conversation about how to balance effective public safety tools with privacy, transparency, and community trust. WR will continue monitoring these developments at both the state and local level.
| | An image of the security video from the Guitar Center robbery. (Redmond PD) | | |
Redmond police disrupt multi-state retail theft operation
Redmond police recently arrested a 25-year-old man and a teenage girl connected to a series of thefts targeting Guitar Center locations in Washington, California, and Oregon. The arrests followed an investigation that began after a November theft at a Redmond store where two high-value guitars were taken.
According to police, security footage showed the suspects working together to conceal merchandise and leave the store without detection. The case advanced when a Guitar Center employee in another state recognized the stolen guitars listed for sale online and identified the individuals as being connected to prior incidents. Investigators believe the activity was part of an organized retail theft operation involving multiple locations.
Detectives contacted the seller through the online listing and arranged a meeting to purchase one of the guitars. When the suspects arrived, they were taken into custody. The man has since been charged with organized retail theft and trafficking stolen property.
Redmond police are encouraging retailers to remain alert to organized theft tactics, which can include working in pairs and distracting employees during theft attempts.
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Emergency order offers temporary insurance relief after severe weather
Washington state has issued Emergency Order 2025-01 to provide temporary relief to consumers impacted by the 2025 atmospheric river and winter weather event. The order applies to insurance companies and outlines short-term measures intended to support policyholders facing disruptions related to the storm.
Under the emergency order, insurers are directed to allow extended grace periods for the nonpayment of premiums. In addition, the order temporarily prohibits the cancellation or nonrenewal of certain property insurance policies during the covered period. These actions are intended to help ensure continued insurance coverage for individuals and businesses affected by severe weather conditions.
The order reflects a broader effort to reduce immediate financial pressure on consumers while recovery efforts are underway. Insurance companies and other interested entities are encouraged to review the requirements to ensure compliance.
Additional details, along with related advisories and emergency orders, are available through the technical assistance advisories and emergency orders webpage.
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NRF 2026 Retail’s Big Show
Looking to strengthen your retail strategy for the year ahead? NRF 2026 retail’s big show is the place to be. From January 11 to 13 in New York City, thousands of retail professionals will come together for three days of learning, inspiration, and collaboration. WR will be in attendance.
This year’s program features a wide range of keynote speakers, panel discussions, and educational sessions focused on trends that are shaping the future of retail. Attendees can expect insights on customer experience, artificial intelligence, workforce needs, global market shifts, and the continued evolution of the store environment. Leaders from major brands and innovative startups will share practical approaches to challenges facing retailers of every size.
The expo floor will once again serve as a hub for emerging solutions. Exhibitors will highlight new technology, tools, and services designed to improve operations, enhance security, streamline logistics, and elevate the shopping experience.
For retailers planning ahead or preparing for strategic shifts, the event offers a valuable opportunity to gather ideas, explore fresh solutions, and connect with peers from across the country. Registration is open, and attendees are encouraged to secure their spot early for the industry’s largest annual gathering.
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Walmart plans Christmas Day closure
Walmart will close all 4606 of its United States stores for a full day on December 25 as part of its annual Christmas shutdown. The company will also operate with limited hours on December 24, opening at 6 a.m. and closing at 6 p.m. This gives shoppers a shorter window for any last-minute holiday needs, including gifts, food, and household items. Retailers often see a surge of customers during the final hour before closing on Christmas Eve, and this year is expected to be no different.
Walmart’s full closure aligns with many other major retailers that also pause operations for Christmas Day. Target, Costco, Sam’s Club, Aldi, Home Depot, Lowe’s, Macy’s, Publix, Trader Joe’s, and Whole Foods are among the national chains that will remain closed. Most will return to normal schedules on December 26.
Shoppers who discover they need essentials on December 25 will have limited options. Some CVS stores, 7 Eleven locations, and a few regional convenience chains may operate with reduced hours.
Walmart closes for only two full holidays each year, which are Christmas and Thanksgiving. Customers are encouraged to plan ahead and shop early to avoid the holiday rush.
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CEO confidence continues upward trend
CEO confidence is rising for the third consecutive month, offering a more positive outlook for business conditions in the year ahead. According to Chief Executive’s December Confidence Index, CEOs rated their twelve-month forecast at 6.4 out of 10. This marks a slight increase from November and continues a steady climb that began in the fall.
The assessment of current business conditions also improved, reaching 6.0. This is the second-highest rating of the year and reflects gains throughout the fourth quarter. Leaders who are optimistic about conditions through 2026 point to clearer expectations on tariffs, easing inflation, lower interest rates, and planned business investments. Many also say the challenges of 2025 strengthened their ability to adapt.
While confidence is improving, outlooks remain mixed. Forty four percent of CEOs expect conditions to get better, down slightly from the previous month. Concerns include ongoing tariff uncertainty and softer consumer confidence. More CEOs now anticipate stable rather than improving conditions.
Expectations for company performance are trending upward. Seventy five percent expect higher revenue next year and sixty seven percent project increased profitability. Nearly half plan to add employees, and more than four in ten expect to increase capital spending.
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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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Alesha Shemwell, Interim CEO — 360.200.6450 — Email
Crystal Leatherman, Dir of Policy & Government Affairs — 360.200-6453 — Email
Rose Gundersen, State and Local Gov't Affairs Associate — 360.200.6452 — Email
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