Newsletter — January 23, 2025

IN THIS ISSUE

POLICY

ON THE LOCAL FRONT

Seattle Council names six finalists for District 2 vacancy

POLITICAL NEWS

RETAIL THEFT & PUBLIC SAFETY

WR presents on organized retail crime to the City of Everett

IN THE NEWS

House Labor Committee hears HB 1184 to address high overtime salary threshold

The House Labor & Workplace Standards Committee recently heard testimony on HB 1184, a bill designed to alleviate the burdensome overtime-exempt salary requirements affecting nonprofits and small businesses. Advocates, including the Nonprofit Association of Washington and chambers from across the state, highlighted how the Labor & Industries (L&I) rules have forced organizations to alter service models, harming communities and demoralizing staff by converting directors to hourly positions.

In January 2020, L&I introduced rules significantly increasing the salary threshold for overtime exempt employees. Since then, the threshold has risen by 93%, far outpacing the 21% increase in the minimum wage during the same period. If the current multiplier schedule remains unchanged, the threshold is projected to increase by another 40% by 2028, assuming a 3% annual minimum wage rise.

WR testified in support of small and main street retailers, emphasizing that the high salary threshold stifles innovation, creates barriers, and fosters inequities for entrepreneurs seeking to address unmet needs.

Changing these rules will be challenging, as many House Labor Committee members represent King, Pierce, and Snohomish counties, where the impact of the rules has been less severe. Success will require strong grassroots advocacy to influence the majority party’s stance.

Restrictive and punitive firearm legislation introduced

Following the passage of HB 2118 in the 2024 session—which restricted the sale of firearms—the 2025 legislative session has already introduced a series of new regulations, requirements, and taxes targeting the legal sale and possession of firearms.

The proposed bills include:

HB 1163: Restricting the sale, transfer, and possession of firearms.
HB 1132: Prohibiting bulk purchases of firearms and ammunition.
HB 1152: Establishing strict storage requirements and associated penalties for firearms.
HB 1386: Instituting an 11% tax on the sale of firearms and ammunition.
SB 5099: Adding new compliance requirements for firearms dealers.

While these measures aim to prevent firearms from falling into the hands of criminals, a vital goal, the proposals are not supported by data. For example, less than 2% of all stolen firearms are sourced from licensed dealers. Imposing additional regulations, penalties, and taxes on law-abiding firearm dealers is unlikely to address the root causes of gun-related crime.

Instead, lawmakers should prioritize measures like HB 1139, which increases penalties for unlawful firearm possession. This bill, currently awaiting a hearing in the House Community Safety Committee, directly targets criminal behavior without penalizing responsible gun owners and dealers.

WR is actively collaborating with stakeholders to craft balanced legislation that effectively addresses public safety concerns while respecting the rights of law-abiding citizens to protect themselves and engage in hunting and other lawful activities.

Washington State Capitol (Jerry Cornfield/Washington State Standard)

WR testifies on key employment law proposals during week 2 of legislative session

WR’s employment law team addressed six significant legislative proposals this week, many of which carry substantial implications for employers across Washington, particularly small businesses.

SB 5104 – Coercion Based on Immigration Status

This bill introduces civil penalties for employers who use immigration-related threats to coerce workers into accepting violations of the Wage Payment Act. WR testified with concerns about the bill’s clarity and its potential to inadvertently hinder legitimate employer-employee communications. WR is collaborating with stakeholders to refine and amend the bill’s language.

SB 5217 – Elimination of Small Employer Exemptions for Pregnancy Accommodation

Under current law, businesses with fewer than 15 employees are exempt from providing pregnancy accommodations. This proposal seeks to remove that exemption and require employers to cover travel and break time for expressing breast milk for up to two years postpartum. WR testified as "OTHER," citing concerns over the financial and operational burdens this would place on small businesses, particularly those without feasible on-site spaces for lactation accommodations.

HB 1213 – Removal of Job Protection and Health Benefit Exemptions in the Paid Leave Program

Currently, small employers with fewer than 50 employees are exempt from providing job protection and health benefit continuation for employees on Paid Family and Medical Leave (PFML). This bill aims to eliminate these exemptions, imposing new requirements that could significantly strain small businesses. WR opposed the bill, emphasizing its potential to disproportionately impact small employers.

SB 5041 – Unemployment Benefits for Workers on Strike

This bill proposes to extend unemployment benefits to workers on strike. WR testified in opposition, highlighting that the unemployment insurance (UI) system was designed to support workers who lose their jobs through no fault of their own. WR argued that this bill could jeopardize federal funding by bringing the UI system out of conformity with federal guidelines, undermine good-faith negotiations, and destabilize the UI program’s purpose.

SB 5101 – Leave for Hate Crime and Bias Incident Victims

This bill would require employers to provide leave for victims of hate crimes and bias incidents, similar to leave currently available for victims of domestic violence or stalking.

WR supported the bill’s intent but raised two key concerns:

Clarifying Scope: WR recommended removing all references to “bias incidents” to focus resources on verifiable victims of hate crimes or domestic violence.
Alignment with Existing Frameworks: WR suggested incorporating references to the Domestic Violence Leave Act (DVLA) to ensure clarity for employers and the Department of Labor and Industries. WR is collaborating with proponents to refine the bill’s language.

SB 5292 – Change to Paid Leave Rate Setting and Removal of Rate Cap

This proposal seeks to align the Paid Family and Medical Leave (PFML) program’s rate-setting process with actuarial principles, as recommended by the Joint Legislative Audit and Review Committee (JLARC). However, it also seeks to remove the statutory rate cap of 1.2%, a measure not included in JLARC’s recommendations. WR testified as "OTHER," expressing concerns about the rate cap removal. Since the PFML program began collecting premiums in 2019, the rate has already doubled, with projections suggesting it will reach the statutory cap by 2028. WR supports sustainable PFML reforms but opposes changes that could unduly burden small businesses and employees without proper safeguards.

Seattle Council names six finalists for District 2 vacancy

The Seattle City Council has named six finalists to fill the District 2 vacancy created by Councilmember Tammy Morales's resignation on January 6.

To engage the public, the Seattle City Club will host a forum for the candidates on January 21. Following this, the finalists will present their qualifications to the City Council on January 23. The Council is expected to vote on the appointment on January 27.

The six finalists for the District 2 seat are:

While two of the finalists have pledged not to run for the seat in the upcoming election if appointed, most have expressed interest in seeking election this November to serve the remainder of the unexpired term. The seat will then be on the ballot again in 2027, along with the other City Council district positions.

Governor Bob Ferguson’s signature on one of his first three executive orders, signed immediately after his inauguration. (M. Scott Brauer/Cascade PBS)

Governor Bob Ferguson signs three executive orders moments after inauguration

Shortly after taking the oath of office and concluding his inaugural address, Governor Bob Ferguson signed three executive orders addressing critical issues.

Executive Orders at a Glance:

Housing: Directs state agencies to review housing, permitting, and construction regulations, streamlining or eliminating unnecessary provisions.
Reproductive Freedom: Directs the Department of Health to convene experts to develop strategies for protecting reproductive rights.
Permitting Reform: Mandates state agencies to expedite permit and license processing. Agencies failing deadlines will refund application fees.

Bob Ferguson is sworn in as the 24th Governor of the State of Washington during his inauguration ceremony Wednesday, Jan. 15, 2025, at the Washington State Capitol in Olympia, Wash. (Ryan Berry/Washington State Standard)

Transition Team key priorities presented to Governor Bob Ferguson

Before Governor Bob Ferguson officially took office, his Transition Team identified and presented key priorities across 13 subcommittees. These recommendations were designed to guide his administration's initial focus and strategic approach. Now, with Governor Ferguson in office, these priorities will shape the implementation of his policy agenda.

Below is a summary of the proposed priorities:

Project 2025

Create a cabinet-level role to address impacts of Trump-era funding and policy actions.

Budget

Avoid increasing the deficit; ensure new programs are sustainably funded; seek savings.

Strong Schools

Close education funding gaps.
Fund free school meals for all students.
Support behavioral health and invest in staff.

Governance

Foster inter-agency collaboration.
Expand the Executive Cabinet’s role.
Recommend qualifications for leadership appointments.

Transportation

Focus on maintenance, sustainable funding, and project completion.
Elevate the ferry division leader’s role and explore ferry acquisition options.

Health Care

Protect coverage gains and reproductive rights.
Improve Medicaid reimbursement rates and behavioral health access.
Streamline Department of Health rulemaking.

WR presents on organized retail crime to the City of Everett

WR was invited to present to the Everett Mayor and City Council at their winter retreat to address organized retail crime (ORC), public safety, and retail theft. Key city staff, including the Chief of Police, also attended the session.

Mark Johnson, WR’s Senior Vice President of Policy and Government Affairs, highlighted how ORC fuels broader criminal activity in Everett, across Washington State, and nationwide. Johnson also emphasized a recent case involving an international crime syndicate from China, which has been tampering with gift cards and stealing millions of dollars from both consumers and retailers.

Last year, Washington retailers estimated a collective loss of nearly $3 billion in product due to retail crime. Even more concerning is the growing impact on customers and employees, who are increasingly affected by these crimes in their workplaces and shopping environments.

Retailers prioritize the safety and comfort of their customers and employees, as these are critical to their survival and growth. During the presentation, Johnson urged Everett officials to support a series of legislative efforts aimed at addressing ORC and enhancing community safety.

Key Legislative Priorities and Funding Proposals

$100 million in local government grants to hire and train additional law enforcement officers.
Approximately $50 million for local governments to hire more public defenders.
Approximately $10 million for local governments to hire prosecutors focused on ORC and retail theft.
HB 1276: Increases penalties for ORC mega-thieves stealing over $20,000 in product.
SB 5068: Allows law enforcement and prosecutors to hire documented workers.
HB 1095: Enables local governments to secure additional funding for law enforcement and prosecutors.
Expands the definition of theft to include concealment within a store.
Criminalizes gift card tampering and fraud.
Permits the use of license plate readers on state highways to track criminal activity.

WR is calling on cities and legislators across Washington to support these proactive measures to ensure safe and welcoming environments for retail employees and customers.

Retail - Alive and well at the 2025 NRF Retail Big Show

WR President & CEO attended the 2025 NRF Retail Big Show held last week in New York City. The event was one of their largest with approximately 40,000 attendees, 105 countries represented and over 1,000 exhibitors.

The Energy and Enthusiasm was palpable fueled by optimism about the state of retail, the state of the economy, and the opportunities for the year ahead.

Several Key Themes emerged:

artificial intelligences is driving innovation and efficiency at every level for the industry
retailers are focused on the growing expectations for personalization, value and a seamless experience across digital and physical stores
retailers are paying closer attention to the shopping behaviors of Gen Z (12 – 27 yrs) and Gen Alpha consumers (birth to 11 yrs.)

The 10th annual NRF Foundation Honors took place on Sunday in New York City to recognize industry visionaries, award student scholarships and showcase the retail industry’s diverse and dynamic workforce. The event raised more than $2.7 million to fund the NRF Foundation’s career development programs and resources.

"The retail industry offers endless opportunities and career pathways, and through our support of the great work of the Foundation, we ensure that talent at all stages receive the training and resources they need to excel," said Renee Sunde, CEO of the Washington Retail Association.

Presented by American Express and PwC, the event featured more than 700 attendees and was co-hosted by Macy’s, Inc. Chairman and CEO and former NRF Foundation Board Chair Tony Spring and Walmart U.S. President and CEO and former NRF Board Chair John Furner.

Fashion designer Tommy Hilfiger was honored with The Visionary award  for his four decades of transformative contributions to the retail industry and his leadership in building one of the world’s most recognized premium lifestyle brands. Renowned for blending classic American style with a modern twist, the brand has become a global symbol of excellence in the fashion industry.

The event also provided an opportunity for Ms. Sunde to join the NRF Policy Council meeting with many of WR’s State Retail Association Executives and partners from the National Retail Federation.

The 2025 NRF Retail Big Show was a testament to the vibrancy and resilience of the retail industry. As the industry continues to evolve, events like these provide valuable opportunities to connect, share insights, and support the development of the next generation of retail talent. With the NRF Foundation’s ongoing commitment to workforce development, the future of retail is in strong hands. We look forward to the continued collaboration and growth of this dynamic industry in the year ahead.

Record profits highlight need to address credit card swipe fees

Record profits in the credit card industry underscore the urgent need for Congress to address soaring swipe fees that burden small businesses and consumers, according to the Merchants Payments Coalition (MPC). JPMorgan Chase, the largest U.S. credit card issuer, reported a record $54 billion in profits for 2024, a 17.9% increase over 2023. Similarly, Citigroup, Wells Fargo, and Bank of America also reported significant profit increases.

Swipe fees, which jumped 50% since the pandemic, reached $172 billion in 2023. These fees, set by Visa and Mastercard, inflate costs for small businesses and add over $1,100 annually to the average family’s expenses. Senator Josh Hawley (R-Mo.) criticized Visa and Mastercard’s lack of competition, calling their profits “unbelievable.”

The Credit Card Competition Act, currently under consideration in Congress, aims to introduce competition by requiring banks with over $100 billion in assets to enable at least one alternative payment network for processing. The move could save merchants and consumers more than $16 billion annually by fostering competition over fees and service quality.

The MPC urges Congress to act swiftly to curb excessive fees and promote fair competition, benefiting businesses and consumers alike.

VoterVoice sign-up: Stay engaged during the 2025 legislative session

The 2025 legislative session is now underway, and a significant number of bills and initiatives are already making their way through the process, many of which could directly impact the retail sector. Ensure your voice is heard by signing up for VoterVoice, WR’s online advocacy tool.

What is VoterVoice?

VoterVoice allows you to easily send messages to federal and state legislators to express your support or concerns about key legislative issues. Through VoterVoice, WR will keep you informed about important retail-related topics and provide sample letters that you can send directly to your representatives.

Why sign up now?

With bills moving through the legislative process, staying informed and engaged is more critical than ever. VoterVoice makes it simple to participate and have your voice heard.

Signing up is quick & easy:

Click here to sign up for VoterVoice
Enter your information.
Click the "Save” button to complete your registration.

It’s that simple! Don’t miss the opportunity to influence decisions that matter to your business. Sign up today and stay engaged throughout the 2025 legislative session.

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.

Washington Retail Staff

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