Association of Washington Business – Updated Weekly

Summer brings new laws: There’s a slew of new state laws affecting Washington employers taking effect in July. Read about some of the new laws here and register for two free AWB webinars to learn more about the changes:

• Employment law webinar: Join experts to learn about the myriad of employment law changes, from worker protections to job posting requirements, in a webinar at 11 a.m. Tuesday, July 22. Register here.

• Tax and fiscal policy webinar: Learn about how upcoming tax policy changes may impact your business in a webinar at 11 a.m. Wednesday, July 23. Register here.

👩‍💼Employment law: Many laws affecting hiring, labor relations and other areas take effect this month, including:

• UI for striking workers: SB 5041 allows striking workers to receive unemployment benefits for up to six weeks. Workers become eligible for benefits the second Sunday following the first date of the strike. Effective July 27.

• Equal pay protections: A change that took effect July 1 expands the state's Equal Pay and Opportunities Act to many more classes of workers.

• Driver license requirement in job postings: SB 5501 prohibits employers from including in a job posting a requirement that a worker possess a valid drivers' license, unless the job requires the individual to drive as part of their job duties. Effective July 27.

• Pay transparency law updates: SB 5048 gives employers a five-day period to correct an alleged violation of salary disclosure requirements to avoid penalties and damages. Effective July 27.

💲Higher taxes and fees: The Legislature passed various tax and fee increases, including:

• Estate tax changes: There are new estate tax rates for the estates of anyone passing away on or after July 1, 2025. The law raises the top tax rate to 35%, the highest state-level estate tax in the nation, according to the Tax Foundation.

• Fees are increasing for hunting and fishing licenses, marriage licenses, and various liquor licensing and permits. The per bed fee for long-term care facilities is also going up.

Mixed jobs report: The U.S. economy added 147,000 job in June, surpassing expectations in a uncertain economic climate. The headline job numbers were strong, but a closer look reveals some weakness in the job market, the Associated Press reports.

• Private sector employers hired just 74,000 workers last month, about half the 137,000 they hired in May.

• Employment increased in industries including local and state government, education, health care, social assistance, and leisure and hospitality.

• Employment in many other industries showed little change or slight decreases. The manufacturing sector lost 7,000 jobs as manufacturing activity contracted for a fourth straight month in June.

Finding a good job: The unemployment rate remains low at 4.1%. However, the number of discouraged workers (not counted in the unemployment rate) increased by 256,000 in June to 637,000. This category includes those who want to work but believe no jobs are available to them.

Cloudy outlook: Employers continue to contend with higher tariffs and trade uncertainty. Sarah House, a senior economist with Wells Fargo, expects monthly job growth to fall below 100,000 in the second half of the year.

“We’re bracing for a much lower pace of job growth,″ she said. “There’s still a lot of policy uncertainty.″

Crucial election year: This year, the Legislature passed the largest tax increase in state history. Washington state has a chance to elect candidates who understand the challenges facing employers, particularly around cost and regulations.

For more information on our 2025 candidate endorsements, visit our landing page. We’ll be adding endorsement videos in the coming weeks.

👍 AWB believes these candidates can bring the employer perspective to the Legislature and act as champions for the economy.

Please consider contributing to their campaigns below:

• Chad Magendanz (R) in the 5th district Senate race

• Rep. Michelle Caldier (R) in the 26th district Senate race

• Kevin Schilling (D) in the 33rd district House race, Pos. 1

• Rep. Osman Salahuddin (D) in the 48th district House race, Pos. 1

• Rep. Amy Walen (D) in the 48th district Senate race

Massive tax breaks and spending cuts bill signed into law

President Trump signed his signature bill of tax breaks and spending cuts on the Fourth of July after it narrowly passed Congress. The bill extends the 2017 Tax Cuts and Jobs Act and adds temporary tax deductions on tips and overtime pay, while increasing spending for border and national security.

The National Association of Manufacturers celebrated the bill’s final passage, writing that the provisions will provide certainty for small manufacturers, supports investment and innovation and incentivize growth.

To offset the loss of tax revenue and new spending, the bill makes deep cuts to Medicaid and social safety net programs like the Supplemental Nutrition Assistance Program (SNAP).

Washington Democratic leaders, including Gov. Bob Ferguson and Sen. Patty Murray, denounced the cuts to Medicaid and SNAP and rollback of clean energy tax credits.

Report: Ports of Seattle and Tacoma drive region’s economic growth

In 2023, the Northwest Seaport Alliance and ports of Seattle and Tacoma generated more than $55 billion in economic output and supported 265,000 jobs combined, a new economic impact analysis finds.

The report measures the impacts of the ports’ wide-ranging operations: aviation, cargo handling, fishing, manufacturing, cruise ships, recreational boating and more.

“This report reaffirms that our marine cargo and aviation gateways are vital to the economic health of our region,” said Northwest Seaport Alliance Co-Chair and Port of Seattle Commission President Toshiko Hasegawa.

Read the press release and the full report.

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Southwest Washington steel importers hit hard after tariffs doubled import tax

Southwest Washington steel importers are among those feeling the pain from a new 50% tariff on foreign steel, The Columbian reports. The tariff increase means an additional $437.50 tacked on to current $875 price for 1 ton of steel.

“I had one vessel that had 2,000 tons on it and paid $376,000 more for just that vessel,” said Danny Younce, the executive vice president for NAPSteel and Cascadia Metals in Longview.

The Trump administration's policy aims to encourage U.S. manufacturing and steel production, but local ports say it has slowed imports and will continue to raise costs for consumer goods and construction.

Tariff talk: AWB has invited a pair of bipartisan White House veterans to speak with businesses about global trade policy and navigating tariffs at the 2025 AWB Policy Summit. The lunchtime keynote discussion will feature Ron Kirk, a former U.S. Trade Representative, and Mick Mulvaney, who served as chief of staff in the first Trump administration.

• Kirk served as the U.S. Trade Representative under President Obama and the Mayor of Dallas, the first African-American to fill both roles. As a member of President Obama’s Cabinet, he was the principal advisor, negotiator, and spokesperson on trade issues.

• After serving as a member of Congress from South Carolina, Mulvaney was tapped to lead the Office of Management and Budget from 2017 to 2020. He also was acting White House Chief of Staff in 2019 and 2020. He has stayed active as a commentator for CBS and NewsNation.

Also on the agenda: Register now for the Policy Summit, Sept. 16-18 at the Davenport Grand Hotel in Spokane, presented by AT&T. This is your chance to hear the latest updates on state and federal policy issues and network with fellow business leaders and legislators. (Check out this 2024 highlight video.)

• AWB’s Government Affairs team will give a 2026 legislative session preview and hold breakout sessions on tax and fiscal policy, employment law, energy and more.

• Economist Matthew Gardner will bring you the latest economic news, with a focus on impacts in Washington state.

• Stay tuned as we announce more speakers and panels!

Discount room block: Save money and reserve your spot at the hotel with AWB’s discounted room block, giving you the best spot to enjoy Spokane without missing any of the action at Policy Summit. The room block closes Aug. 22 — book soon as space is limited.

Safety matters: Washington is the highest-cost state in the nation for workers’ compensation, according to the most recent data from the National Institute of Social Insurance. Managing workers’ compensation claims can be costly and time-consuming for employers. Fortunately, AWB and CompWise are here to help.

Free webinar: The no-cost July 10 webinar will have lots of useful tips on how to establish proper hiring practices and create a safety culture within your company to avoid costly claims. This class is open to both AWB members and non-members. One SHRM credit is available.

Speakers will include:

• Laura Oslund is a senior risk services consultant with Sedgwick and a board-certified safety professional.  For over  24 years she has championed safety and occupational health management, and guided employers in reducing risk.

• Adam S. Belzberg is a partner in the Seattle office of Stoel Rives. He represents and advises employers, from small businesses to international corporations, in all aspects of labor and employment law.

Why attend? Enhance your company’s hiring practices and safety culture to avoid costly future claims by:

• Establishing a rigorous pre and post hire curriculum.

• Identify five best hiring practices to reduce workplace injuries.

• Learn three approaches for growing a safety culture and compliance.

What’s ahead: Look ahead for other useful classes in the Workers’ Comp Essentials Webinar Series, which provides tools to help employers reduce overall workers’ comp costs and mitigate risk. The program will cover proactive strategies for claims management, safety as well as group retro relationships. The current 2025 schedule:

• September — Claims management

• October — Accident Investigation

• December — OSHA Recordkeeping

Get connected: Contact Stacie Neiswanger to learn more about AWB’s CompWise workers’ compensation retrospective ratings program.

Open your doors to the eyes of the world by becoming a stop on the 2025 Manufacturing Week bus tour. AWB is looking for a few good manufacturers to show us your shop floor as we cross the state in October for our ninth-annual tour, sponsored by Banner Bank and Premera.

To be considered, tell us about your company by filling out this logistics form. We have visited hundreds of Washington manufacturers over the years — every one unique and each one inspiring. We can’t wait to hear from you!

Check out our video from last year's tour to explore the shop floors we visited. We'd love to include you in 2025. Our tour is coming through western Washington Oct. 1-3 then heading east of the Cascades Oct. 6-8. We’ll see you on the road.

Amid all the uncertainty facing businesses today, one thing you can count on is having access to best-in-class service offerings through AWB. To help your company stay competitive, in compliance, and recruit the best and the brightest, AWB offers members products, including:

• High-quality health insurance

• Robust 401k retirement programs

• Workers’ compensation premium savings and safety services

• A comprehensive suite of ancillary benefits such as dental, vision, disability, and life insurance

What members say: “Being able to offer health benefits is extremely important to us. Our broker recommended HealthChoice 20 years ago, and it has been a great choice for us,” said Alta Group President David Haavik.

• “I have never heard a complaint from any of my employees in all these years.”

More information: Please visit AWB’s member services page.

“It’s pretty sobering.” ~ Siobhan Doherty, Seattle City Light’s power supply officer. She told The Seattle Times that for the third year in a row, mountain snowpack has failed to fill Seattle City Light’s reservoirs in the North Cascades. Never before has the utility had such poor conditions three years in row. While the utility isn’t at risk of losing power this summer, the drought will be reflected in people’s power bills, the Times reports.