
The Washington state Capitol building in Olympia.
File photoA recent proposal to raise the state’s minimum wage didn’t make it past the first legislative cutoff date, but it serves as a reminder of how local chambers of commerce go to bat when it comes to protecting local businesses and consumers.
The proposal, under House Bill 1764 and Senate Bill 5578, would have brought the minimum wage up to $25 an hour by 2031, with mandatory paid vacation and bereavement leave. At $16.66 an hour, Washington’s minimum wage is already one of the highest in the country, second only to Washington D.C.’s $17.50.
The Association of Washington Business noted that 4,700 people signed on during the bills’ public hearings to voice their position, with two-thirds against the proposals. Chambers of commerce from across the state testified, and the Tri-City Regional Chamber of Commerce provided written testimony.
“We represent nearly 1,000 businesses and strongly oppose SB 5578,” wrote Matt Murphy, the regional chamber’s government and regional affairs director. “Small businesses are the backbone of our federal, state and local economies. In Washington, they generate nearly half of all state income, yet they are struggling under an ever-growing financial burden.”
“Unlike large corporations, small businesses cannot simply absorb these costs or continuously raise prices without driving customers away,” he wrote.
When the Tri-Cities Area Journal of Business reached out to other local chambers for their thoughts on the proposal, they shared similar concerns.
“Minimum wage not only puts strain on small business with their cost of operations, but in turn really penalizes the consumer paying more for goods and services. It is pure simple economics,” said Colin Hastings, executive director of the Pasco Chamber of Commerce, in an email.
The Richland and West Richland chambers of commerce expressed a need to balance the benefits and challenges of such a proposal.
“While we support fair wages and benefits for employees, it’s important to ensure that any changes are sustainable for employers and do not create unintended challenges for job growth and business stability,” said Richland Chamber of Commerce’s executive director, Chandra Christenson, in an email.
“While we fully support the need for workers to earn a living wage, we also believe it's crucial to maintain a competitive environment for businesses,” said Keith Moon, executive director of the West Richland Chamber of Commerce. “… A sudden, steep increase in labor costs could lead to unintended consequences.”
Though these bills won’t make it into law this year, they could resurface and the local chambers will be watching.
The Richland chamber “will continue advocating for policies that support a strong and balanced business environment,” Christenson said.