Newsletter — December 04, 2025 | | |
N THE NEWS
POLICY
ECONOMY
ON THE LOCAL FRONT
RETAIL THEFT & PUBLIC SAFETY
TRENDS
| | |
WR outlines 2026 legislative priorities
As the 2026 session approaches, WR has set a focused legislative agenda to support a competitive retail climate in Washington state. Priorities span taxation, public safety, technology, workforce, consumer protection, environmental policy, and regulatory enforcement.
On the issues of taxation and revenue, WR will advocate for restraint in new taxes and fees, stronger accountability for state spending, and greater transparency in fiscal notes and public information.
Addressing persistent retail theft and organized retail crime, WR will seek targeted penalties for repeat offenders, improved data sharing, and grants that help small retailers invest in prevention tools.
WR supports balanced oversight of artificial intelligence and data use that prioritizes high-risk applications while preserving beneficial retail innovation.
With legislation on employment law and consumer protection, WR will promote clarity, predictability, and cost-conscious approaches that avoid overlapping or duplicative requirements.
The agenda also calls for fair licensing and payment processing costs, practical environmental standards, and enforcement models that emphasize agency-led compliance and opportunities to correct issues before litigation.
Read the full WR 2026 Legislative Priorities
| | |
Washington Retail launches upgraded website and membership guide
The Washington Retail Association has launched an upgraded website designed to make it easier for retailers to access the information and resources they need. The new site is faster, more secure, and fully optimized for mobile devices, so key updates are always at your fingertips. Content is organized by category with layouts that make it simple to find relevant news, resources, and tools for running and growing your business.
Alongside the website refresh, WR has released The Retail Advantage, a membership guide highlighting how the association protects and advances retailers statewide. Members gain proactive advocacy, real-time policy alerts, compliance support, and access to resources that address public safety, AI policy, employment law, and workforce development. Retailers report real value from membership, with businesses calling WR a “trusted and essential partner” and a “strong, unified voice in Olympia.”
Empower your business and the industry by becoming a WR member. Explore the new guide to add your voice, connect with experts, and equip your team with tools that help your business and community thrive. Visit the updated website to learn more about membership and discover the practical resources available to retailers across Washington.
| | |
Washington retailers invited to review AI Task Force report
Association members are invited to review the Interim Report from the Washington State Attorney General’s Artificial Intelligence (AI) Task Force, where WR is represented by Policy and Government Affairs Director, Crystal Leatherman.
This Interim Report contains the Task Force’s findings and recommendations for specific actions the legislature should consider regarding the development, deployment, and use of AI technology in Washington state. To develop its findings and recommendations, the Task Force formed eight subcommittees to study the impact of AI in specific domains such as education, labor, public safety, healthcare, and consumer protection. Each of the recommendations developed by the subcommittees were reviewed and approved by the Task Force as a whole. Below is a brief summary of the recommendations.
Adopt NIST Ethical AI Principles Adopt the principles for ethical and trustworthy AI published by the National Institute for Standards and Technology (NIST) in January 2023 as the guiding policy framework for AI development, deployment, and use in Washington.
Improve Transparency in AI Development Require AI developers to make information publicly available that describes the provenance, quality, quantity and diversity of datasets used for training AI models and require AI developers to provide explanations of how training data is processed to mitigate errors and biases during AI model development.
Promote Responsible AI Governance Require that developers and deployers of high-risk AI systems (those that have the potential to significantly impact people’s lives, health, safety, or fundamental rights) implement AI governance frameworks to minimize harm and publicly disclose their risk management strategies and practices. Evaluate high-risk AI uses to determine if further safeguards, including prohibitions on certain uses, are necessary.
Invest in K-12 STEM and Higher Education Increase investments to improve K-12 education and K-12 STEM education, support educators and students to integrate AI tools, promote professional development opportunities for educators and expand access to broadband through state, private, federal, or other philanthropic funding sources.
Improve Transparency and Accountability in Healthcare Prior Authorization Require that any decision to deny, delay or modify health services based on medical necessity be made only by qualified clinicians.
Require that any AI systems used to facilitate processing of prior authorization requests apply the same clinical criteria as licensed health care professionals and require that such AI systems be subject to assessments and audits.
Develop Guidelines for AI in the Workplace Create an independent, multi-stakeholder advisory group made up of workers, unions, employers, business and community associations, government agencies, and other stakeholders to establish guiding principles for the use of AI in the workplace.
Disclose Use of AI by Law Enforcement Require law enforcement agencies in Washington state to publicly disclose the use of AI technologies.
Require officers to attest that AI-assisted or AI-generated reports have been reviewed for accuracy, mitigating risks of false information.
Establish Grant Program for AI Innovation Establish a grant program utilizing public and private funding for small businesses to promote AI innovation that serves the public interest.
Read the full Washington State Artificial Intelligence Task Force Interim Report
| | |
Workers’ comp rates to rise in Washington
The Washington State Department of Labor and Industries announced that the average cost of workers compensation insurance will increase in 2026. Beginning January 1, employers and workers will see an average rise of about $1.37 per week for each full-time position. Employers cover most of the premium while workers contribute the remaining portion.
According to the department, the adjustment reflects the growing cost of providing wage replacement and medical care benefits for injured workers. The agency noted that it aims to keep rates steady and predictable and will again use its contingency reserve to help offset the full cost of projected claims.
The change represents an overall average increase across all industries. Individual rates will vary depending on industry type and recent claims history. Washington’s system is structured differently from many other states because premiums are based on hours worked rather than payroll percentages. When wages rise, contributions do not automatically increase, so rate adjustments are sometimes needed to maintain coverage levels.
The department also highlighted its ongoing programs to help employers reduce injuries and manage claims, which support long-term cost control. Additional information is available on the agency’s workers' compensation webpage.
| | |
Plastic bag fee increases in Washington beginning in 2026
Washington retailers and restaurants will see an adjustment to bag fees beginning January 1, 2026. Under state law, the minimum customer charge for plastic film bags will increase to 12 cents. The minimum charge for paper bags will remain 8 cents. These fees apply when customers choose to purchase a bag at checkout and are treated as taxable retail sales that stay with the business. Customers using food assistance programs are exempt, and food banks are not required to charge fees.
The intent of the single use bag law is to encourage shoppers to bring their own reusable bags. The Department of Ecology recommends keeping reusable bags in convenient places such as cars, backpacks, or purses. Businesses can help by posting reminders or offering used boxes as an alternative. Printable Bring Your Own Bag materials are available on Ecology’s bag ban webpage.
The Department of Commerce has released a new evaluative report on the state’s bag policy, available on its Legislative Reports webpage. Washington’s upcoming legislative session may include discussions related to recycling and waste reduction. More resources and translated materials on the bag requirements can be found on Ecology’s bag ban webpage along with contact information for additional assistance.
| | |
Department of Ecology adopts new safer products rule
The Washington State Department of Ecology has filed a rule adoption under Chapter 173-337 WAC regarding safer products restrictions and reporting, focusing on the latest cycle of PFAS regulations. The rule, known as Cycle 1.5, aims to strengthen reporting requirements and ensure that manufacturers and retailers follow updated safety standards for products containing per- and polyfluoroalkyl substances.
Retailers and other stakeholders are encouraged to review the rule and understand how it may affect product reporting and compliance. The Department of Ecology provides resources and guidance to help businesses stay informed and meet the new requirements.
For additional details, including access to the full rule text and supporting materials, visit the Department of Ecology’s official web page on this rulemaking.
| | |
Washington thermal paper rules take effect in new year
Retailers and manufacturers should be aware of upcoming changes to Washington State regulations regarding thermal paper. Beginning January 1, 2026, the use of bisphenols in priority consumer thermal paper products will be prohibited. Bisphenols are chemicals often found in receipts and similar materials. Products manufactured before this date are not subject to the restriction.
The Washington State Department of Ecology will assume that thermal paper containing bisphenols above 200 parts per million were intentionally added. However, manufacturers can submit documentation to Ecology demonstrating that bisphenols were not intentionally used. This documentation must include the submitter’s information and credible evidence supporting the claim.
The state’s thermal receipt replacement program, which provides support for transitioning away from bisphenol-containing paper, will conclude on December 31, 2025. Retailers and suppliers are encouraged to review their inventory and supplier practices to ensure compliance with the new regulations.
These changes aim to reduce exposure to bisphenols while giving businesses time to adjust to the new requirements. Staying informed and proactive will help retailers avoid potential compliance issues and ensure a smooth transition as the regulations take effect.
| | |
Retailers flag concerns over waste tire management as fee rises to $5 per tire
With the waste tire fee set to increase from $1 to $5 per tire in January 2026, tire retailers across Washington are raising concerns about whether the state is dedicating sufficient funds to properly manage waste tires. Despite the fivefold fee increase, the Legislature is reducing the amount dedicated to waste tire management from $1 million to $600,000 per year.
The Waste Tire Account was established in 2005 as a temporary charge to fund the cleanup of illegal tire piles statewide. In 2009 the $1 fee was made permanent, but the Legislature began to divert any amount above the first $1 million per year to the Motor Vehicle Fund for road maintenance.
Ecology’s report shows that more than $2.6 million was spent on waste tire management in 2009, but spending fell drastically to roughly $762,000 in 2010. From 2011 to 2023, the average annual amount dedicated to the fee’s original purpose was approximately $414,116. The sharp decline since the Legislature’s $1 million annual cap in 2009 caused questions from tire retailers about whether the reduced spending signals successful cleanup or simply a funding limitation.
Tire retailers report they still see illegal tire piles in parts of the state and are concerned that the new $600,000 limit will further constrain Ecology’s ability to address waste tire issues.
WR plans to seek clarity from Ecology regarding funding adequacy for waste tire management. A short questionnaire will be shared with tire members to better understand their on-the-ground experiences of waste tire management.
| | |
AI driven Black Friday spending reaches new high
US shoppers set a new online spending record this Black Friday as artificial intelligence tools played a major role in how people discovered gifts and compared prices. Adobe Analytics reported that online sales reached $11.8 billion, an increase of more than 9% from last year. Retail analysts say tighter household budgets, concerns about higher prices, and a preference for convenience encouraged many shoppers to rely on digital channels.
Mastercard SpendingPulse noted continued growth in ecommerce, which outpaced in-store sales. Adobe also reported a sharp rise in AI-powered traffic to retail sites as new tools helped shoppers navigate deals more efficiently. Industry experts say these technologies are reducing stress for consumers by guiding gift searches and offering faster ways to identify discounts.
Popular items this season included toys, gaming consoles and electronics. While overall spending increased, data from Salesforce showed that higher price tags and flat discount levels meant shoppers purchased fewer items per order. Analysts point to inflation, tariffs and strength in luxury categories as key factors affecting average selling prices.
The strong Black Friday performance sets a positive outlook for Cyber Monday, which is projected to reach more than $14.2 billion in online sales.
| | |
Weak hiring outlook raises concerns for year ahead
A new economic report from Moody’s Analytics places Washington among more than twenty states showing signs of recession or approaching one. The analysis highlights a national pattern of slowing job growth, with only a few industries continuing to add positions. Sectors such as construction, manufacturing, technology, finance, government, and professional services are noted as losing jobs.
Washington is projected to see minimal job gains in 2025 and none in 2026, raising concern among business and policy leaders. The Association of Washington Business recently surveyed employers who reported declining optimism and significant worries about the year ahead. Respondents cited the cost of taxes and regulations, healthcare expenses, and broader financial pressures as top challenges.
As the holiday season approaches, business leaders say consumer spending will play an important role in shaping early economic momentum for 2026. They also emphasize the need for policies that better support employers and help strengthen the business climate.
State leaders continue to prepare for upcoming budget discussions. Gov. Bob Ferguson said he plans to propose a balanced budget that maintains essential services while investing in priority areas.
| | |
Quarter 1 2026 sales tax update
The Washington State Department of Revenue has released its sales tax updates for the first quarter of 2026. New rates and tools are now available, including updated rate change notices, the online lookup tool, and the mobile app.
Beginning January 1, 2026, the state will implement several local sales and use tax adjustments. Many cities will see an increase of 0.1% to support law enforcement programs. These cities include Algona, Bellingham, Black Diamond, Des Moines, Duvall, East Wenatchee, Edmonds, Elma, Issaquah, Kalama, Kent, King County, Lynden, Renton, Ridgefield, SeaTac, and Seattle. Other communities such as Bingen and Spokane Valley will see increases dedicated to criminal justice or fire protection services. Cashmere, Cle Elum, and Sumner will add increments for transportation services, while Centralia will see a decrease due to an expiring measure.
Island, Walla Walla, and Yakima counties will introduce increases that support emergency communication systems. Edmonds will also add a new lodging code which is a reporting update only.
Updates have also been made to certain tribal compact areas.
| | Photo via Katie Wilson for Seattle Mayor | |
Mayor-elect Katie Wilson names her transition team
As she prepares to take office on January 1, Mayor-elect Katie Wilson named a 60-person transition team to begin to sort through policy options for her administration.
Wilson ran as a progressive challenger to Mayor Bruce Harrell, so it’s not surprising that non-profit organizations are well-represented. But she also included numerous people from the business community including Jon Scholes, President & CEO of the Downtown Seattle Association, and Richard de Sam Lazaro, senior director of government affairs for Expedia. As Wilson shared in a statement, “[m]y transition team brings people together from a wide range of backgrounds, perspectives and expertise.”
In an interview with The Seattle Times, Wilson stated that “I’ll meet with anyone,” promising that her administration would have an open-door policy. She also expressed the hope that she can help restore the public’s confidence in government, saying, “We’re in this moment where there’s an opportunity for people like me, coming from the left, coming into executive offices as a progressive, to show that we can govern and that people can have faith in government.”
The Mayor-elect says that she’s already had a productive meeting with representatives from Amazon, as well as local union leaders. According to Jon Scholes, her style is in sharp contrast to Seattle’s last “outsider” elected mayor, Mike McGinn. While Scholes viewed McGinn as taking office with his elbows up, he observed, “I don’t feel like Katie’s coming in with her elbows up by any means.”
| | |
Tacoma minimum wage proposal will not appear on February special election ballot
Tacoma residents will not vote on a proposed increase of the city’s minimum wage to $20 per hour in the February 2026 special election. The proposal, part of a broader Worker’s Bill of Rights initiative, was backed by groups including United Food & Commercial Workers Local 367, Tacoma For All, and the Tacoma-Pierce County Democratic Socialists of America.
The measure faced legal challenges after the Tacoma City Council expressed concerns about potential impacts on local businesses. A court initially ordered the proposal to appear on the February ballot, but the city appealed. The Washington State Court of Appeals issued a stay while reviewing the case, and both the city and organizers agreed to a briefing schedule extending beyond the special election.
UFCW 367 plans to pursue placing the measure on the November 2026 ballot, citing higher voter turnout among working-class residents. Meanwhile, Tacoma Mayor Victoria Woodards proposed a task force of union members, business owners, and community representatives to review labor policies, but a resolution to cancel the task force will be voted on December 2. Tacoma’s current minimum wage matches Washington state’s rate of $16.66 per hour, compared with Seattle’s $20.76 per hour.
| | |
Retailers urge passage of anti-theft legislation before year-end
As 2025 draws to a close, major retail groups are urging Congress to pass the Combating Organized Retail Crime Act. The Retail Industry Leaders Association, National Retail Federation, and several large chains sent a letter to Congressional leaders calling for federal action against organized retail crime. The legislation has historically received bipartisan support.
Retailers’ concerns now extend beyond in-store theft to include online fraud, cargo theft, repeat offenders, and return or credit card fraud. Safety for employees and customers is also a key focus. A recent survey by the Loss Prevention Research Council found that over half of U.S. retail workers may leave their jobs within a year due to safety concerns, and more than a third reported feeling unsafe at work.
The proposed legislation would expand federal enforcement of organized retail crime, broaden prosecutorial tools, and establish a federal coordination center for law enforcement to target criminal networks operating across state lines. Retail leaders emphasize that the bill supports both law enforcement and businesses in protecting employees, customers, and supply chains.
While some workplace safety challenges remain, data shows declines in certain types of violence and theft compared to last year, highlighting progress alongside ongoing risks in retail environments.
| | |
Fighting organized retail crime with banks and investigators
Organized retail crime is no longer petty theft. Coordinated networks steal high-value goods and resell them online or in stores, generating millions in illicit revenue while threatening employees, consumers, and communities.
Raul Aguilar, former deputy assistant director at Homeland Security Investigations, emphasizes that banks are critical partners in disrupting these operations. Suspicious deposits, shell companies, and unusual business accounts can signal criminal activity. When financial institutions collaborate with law enforcement and retailers, share information, and train staff on red flags, they help prevent losses before they escalate.
ORC affects more than merchandise. It drives up prices, forces store closures, and jeopardizes safety. Strong public-private partnerships give communities a fighting chance to counter these sophisticated crimes while protecting local economies.
| | |
Bellevue police ramp up efforts to prevent retail theft during holidays
As the holiday shopping season begins, Bellevue police are working closely with local retailers to combat shoplifting and organized retail theft. The Stop-The-Lift Retail Theft Prevention campaign, developed at the request of retailers, aims to identify, investigate, and hold accountable those who commit theft in the city.
Bellevue Police Department Captain Shelby Shearer emphasized the importance of protecting businesses and shoppers alike. Last year, officers responded to 244 retail theft calls and made 161 arrests, while year-to-date this year, overall theft has decreased by 22 percent, with 630 arrests reported.
Police caution that shoplifting does not always stop when a person leaves the store, noting that offenders may also target vehicles and package deliveries in the area. Retailers and shoppers are encouraged to remain vigilant and report suspicious activity to Bellevue police or dial 911.
The campaign reflects Bellevue’s proactive approach to keeping businesses secure and maintaining a safe shopping environment throughout the holiday season and beyond.
| | |
Record number of shoppers visit stores and websites over Black Friday weekend
The Black Friday weekend drew a record of 203 million shoppers, according to a new survey from the National Retail Federation and Prosper Insights and Analytics. The five-day period from Thanksgiving through Cyber Monday saw higher engagement both in stores and online compared with last year and surpassed all previous records.
Consumers visited stores and websites throughout the weekend, with Black Friday remaining the most popular shopping day. More than 80 million people shopped in stores that day, while nearly 86 million shopped online. Activity continued through the weekend with notable growth on Sunday, which saw the largest increase in both in-store and online traffic. Cyber Monday remained a strong draw for online shoppers, with more than 75 million participating, and mobile devices serving as the most common way to browse and buy.
Shoppers favored supermarkets and online platforms as their top destinations, followed by department stores, clothing, and discount stores. Nearly all shoppers made holiday-related purchases, with average spending rising to its highest level since 2019. Clothing and accessories were the most purchased gifts, followed by toys and books.
The survey also found that most consumers have begun their holiday shopping but still have more than half left to complete as the season continues.
| |
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.
| | |
Renée Sunde, President/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
| | | | |
