Association of Washington Business – Updated Weekly

Snapshot of employer sentiment: AWB President Kris Johnson sat down with KHQ-TV’s Sean Owsley last week to discuss the findings of AWB’s latest quarterly survey, which included responses from 400+ businesses.

Big takeaways: Johnson noted that employers are feeling a little more optimistic than they were a year ago, but continue to confront rising business costs and potential new tariffs.

“I think employers are optimistic about where they’re at, they know they’re facing headwinds. Certainly things like tax policy and tariff policy matter when we’re competing in a global environment,” Johnson said.

Competition for talent: Johnson said finding qualified workers isn’t as difficult as it was for businesses during the pandemic. Still, 27% of employers report that they have positions they have been unable to fill.

“For those who are looking for talent, it’s taking them longer to find talent and it’s becoming harder to find talent to move forward,” coupled with a wave of retirements coming. “The competition for talent isn’t going away.”

Call to action: As the 2025 legislative session enters its sixth week, Johnson encouraged lawmakers to focus on growing the economy in every part of the state.”

“We’re in an uncertain market economically — what’s going to happen with tariffs, taxes and regulations. It’s why we need to have a prosperity agenda to drive our economy going forward.”

Federal focus: AWB will host a webinar called “What’s Next for Employers under the Trump Administration” at 2:30 p.m. Tuesday, Feb. 25. The webinar will cover tariffs, immigration policy, and other federal topics.

• Resister for the free one-hour webinar, which will take place via Zoom.

Hear from trusted voices: During the webinar, you’ll hear from experts tapped into national policy issues, including:

• Craig Leen is a partner at K&L Gates in the Labor, Employment, and Workplace Safety practice group. He previously served as director of the Office of Federal Contract Compliance Programs, a federal civil rights enforcement agency at the U.S. Department of Labor.

• Additional speakers to be announced

Increasing the tax burden: Seven of the tax proposals under consideration by the Washington State Legislature would be the largest tax increases in 30 years, Emily Makings of the Washington Research Council writes in a new policy brief.

Details: A plethora of tax proposals, including a wealth tax, B&O tax increases and payroll tax, are on the table. All would considerably exceed the revenue from the largest tax increase enacted in state history— a property tax passed in 2017.

• A tax on worldwide wealth over $100 million would increase tax revenue by 126%

• A payroll tax on all businesses would increase tax revenue by 172%

• A 1% B&O tax surcharge on all income of business with income exceeding $100 million would increase tax revenue by 70%

Go deeper: Visit the Washington Research Council for updates on tax and fiscal issues.

AWB joined chambers and small businesses last week to testify in opposition to bills proposing a $25 minimum wage and mandatory paid vacation leave. AWB News has a recap of the testimony from Tuesday’s hearings.

• Thank you to the AWB members who responded to our Action Alert to note your position on the bill.

Details: The bill would raise the minimum wage by $1.50 each year, reaching $25 an hour in 2031. It would also require employers provide at least three weeks of paid vacation a year to a full-time employee.

Employer perspective: AWB and chambers expressed concerns that the bill could lead to the automation of jobs, especially opportunities for young and entry-level workers.

Highest in the nation: Washington has the highest minimum wage in the country and employers pay some of the highest costs for unemployment insurance and workers’ compensation programs.

Share your thoughts: AWB has launched a short survey on the impacts of tariff and potential new tariffs on Washington businesses.

The goal: AWB will use the survey data to help educate policymakers about the impacts of trade policies on Washington companies.

Meet-and-greet: All AWB members are invited to meet with Casey Sixkiller, the new director of the Washington State Department of Ecology, at noon Wednesday, Feb. 19 at the AWB offices, 1414 Cherry St. SE in Olympia.

About the new director: Sixkiller was appointed by Gov. Bob Ferguson as Ecology’s 14th director. He previously served as the administrator for EPA Region 10, which covers Alaska, Idaho, Oregon, Washington, and 271 tribal nations. At Ecology, he oversees a biennial budget of $2.8 billion and a workforce of 2,200 employees. He is an enrolled citizen of the Cherokee Nation.

RSVP: There will be an opportunity to talk with Sixkiller and ask questions. Lunch will be served. Please RSVP to AWB’s Nick Johnson at nickj@awb.org.

Budget education: FOX 13 highlighted how the Budget Breakdown campaign is using public data to educate Washingtonians about the relationship between state spending choices and current budget challenges.

Spending a surplus: Paul Graves, of Enterprise Washington, tells FOX that four years ago, the state had a $14 billion budget surplus — the largest in state history.

• Legislators directed 80% of the surplus into new state spending, growing spending by more than 20% over the previous biennium, according to data cited by the campaign.

Origins of the shortfall: The state’s multi-billion dollar deficit is not the result of an economic downturn — it stems from overspending. While the state has collected more tax revenue each year, it has spent even more.

"You could still be in a deficit because the state is spending substantially more than it used to … substantially more," Graves said.

Learn more: Visit www.budgetbreakdown.org.

TRANSPORATION

Morgan Irwin, AWB’s lead on transportation, is engaging on these bills:

• Road usage charge: A hearing last week on a proposal to enact road usage fees drew strong public opposition; over 98% of the more than 20,000 people who signed in to the hearing were opposed. Under House Bill 1961, drivers would pay a fee based on miles traveled, with revenue used for highway projects. The proposal is one of several ideas to address declining gas tax revenue and the state’s $1 billion transportation budget deficit. At Thursday’s hearing in the House Transportation Committee, AWB testified "other” and hopes to see legislators resolve concerns with the bill. AWB sent a list of six questions about the proposal to committee members.

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ENERGY

Peter Godlewski, AWB’s specialist for energy, environment and water legislation, is covering a number of bills, including:

• CCA fix bill: AWB testified this afternoon in support of House Bill 1975, which makes strategic and narrow changes to the Climate Commitment Act. AWB believes this bill will help bring price and program stability and improve affordability.

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EMPLOYMENT LAW

Lindsey Hueer, AWB’s lead on employment law issues, is monitoring this bill and others:

• Noncompetes ban: The Senate version of a bill that would ban all noncompete agreements, including retroactively, has a hearing in the Senate Labor & Commerce Committee on Tuesday. AWB continues to have concerns on this bill and will testify in opposition.

• Paid family leave expansion: Senate Bill 5539 would require all businesses to provide job protection when an employee takes leave, ending an exemption for businesses with fewer than 50 employees. The bill also requires small employers to maintain an employee’s health insurance during leave. AWB remains opposed to this bill and believes it is an inappropriate expansion of the state’s 2017 Paid Family & Medical Leave law.

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TAX & FISCAL POLICY

Max Martin, AWB’s tax and fiscal policy director, is tracking this bill and others:

• Wireless device tax: House Bill 1517, sponsored by Rep. Mia Gregerson, D-SeaTac, would levy a $2 tax on wireless devices with a selling price of more than $250, applying to devices from phones and computers to smart refrigerators. The revenue from this tax would fund a new digital equity program. AWB opposes this bill. While the idea is well-intended, it’s not the right time to establish a new program projected to require $628 million over the next five years.

Bill to repeal property tax growth limit meets resistance

A bill that would repeal a voter-imposed 1% cap on annual growth for property tax collections and raise it to 3% received a hearing last week in the House Finance Committee.

More than 12,100 people stated their position as “con” to the bill at the hearing, and 128 registered “pro.” Thank you to the AWB members who responded to our Action Alert to oppose this bill, which AWB believes will increase costs on homeowners and make housing more expensive.

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Nominations sought for AWB's Board of Directors

As a member-driven association, AWB's robust Board of Directors is an important source of strength. Nominations are now open for diverse business leaders from across the state, and from employers of all sizes, to serve on the AWB Board.

The nomination deadline is March 15. Send nominee names and contact information to Bonnie Millikan.

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Advertising opportunities available in Washington Business Magazine

AWB has once again partnered with Overland, Kansas-based Strategic Value Media, a leading nationwide provider of print and digital media solutions to the national, state and local trade and membership associations, to help put together the Spring 2025 edition of Washington Business magazine.

A representative from Strategic Value Media may contact you by email or phone to inquire if you want to advertise in the magazine. Please know this is a legitimate call and that SVM is partnering with AWB to provide you with this resource for advertising your products and services.

To learn more about advertising opportunities, please email info@svmmedia.com.

National economic growth: For ten years, former U.S. Rep. Rodney Davis, R-Illinois, helped advocate for employers in Congress. Now the head of government affairs for the U.S. Chamber of Commerce, he will bring all that experience to AWB’s Spring Meeting in Vancouver May 13-15.

Join us: Tickets are now available for Spring Meeting. Stay tuned as more great speakers are announced. Lock in the best rate now for the event and guarantee space in our room block at the hotel.

• Our rooms in the same hotel as the event always sell out quickly, so reserve your hotel room today at the Hilton or Hotel Indigo.

AWB’s Spring Meeting is open to all professionals and employers — join us in Vancouver to help build your business and strengthen Washington’s economy.

Sponsorship opportunities available: Sponsoring this statewide event is a great way to show your support for keeping our state competitive. Contact the AWB Events team to learn more about sponsorship opportunities at Spring Meeting.

Expertise and insights: We’re getting excited to line up a great slate of speakers at the 2025 AWB Policy Summit. Economist Matthew Gardner, who has been a popular and energetic speaker at a number of AWB events, will again bring us the latest economic news, with a focus on its impacts in Washington state.

• Gardner is a member of AWB’s Council of Economic Advisors, the Washington State Governors Council of Economic Advisors, and is an advisory board member at the Runstad Center for Real Estate Studies at the University of Washington, where he is also a lecturer.

Save the date and register now for Policy Summit, Sept. 16-18, at the Davenport Grand Hotel in Spokane. Save money and reserve your spot at the hotel with AWB’s discounted room block, now available.

Stay tuned for more panels and speakers at AWB’s biggest annual policy event.

Work-Based Learning (WBL) is an important tool to equip students with skills that are in high demand among Washington employers. WBL offers students hands-on experience through strategic partnerships with employers.

• Work-based learning encompasses internships, job shadows, field trips, guest speakers, worksite learning and more.

Bridging the gap: Work-based learning extends the classroom into the workplace, giving students the opportunity to explore a potential career field and gain hands-on experience.

Get involved: Sign up and post your opportunities on the Washington Workforce Portal to connect with students looking to develop their future careers.

“Instead of making it harder to hire, we urge the Legislature to focus on policies that address Washington’s high cost of living – like housing and child care – without putting our businesses at a regional disadvantage.” ~ Janet Kenefsky, COO of the Greater Vancouver Chamber, testifying against a bill to raise the state’s minimum wage to $25 an hour by 2031 and mandate paid vacation.