Two important bills retailers should watch this session

By Jan Teague, President/CEO

As this year's legislative session heats up, we're keeping a close eye on two bills that address employee benefits. One minimum wage bill could create new entry-level job opportunities, especially for teens and seniors. But another bill mandating sick and safe leave benefits could weigh heavily against productivity and economic recovery.

WRA believes strongly in HB 1150. It would allow small employers with fewer than 50 employees to pay a temporary, reduced minimum wage to new hires. In many cases, this temporary savings would encourage companies that have been on the sidelines to hire someone in need of a job, or, to avoid a layoff.

Finally there is talk in the legislature that recognizes the burden of such a high minimum wage and the challenges it causes us to hire young people or unskilled workers.   Our state's minimum wage of $9.19 an hour is the nation's highest. Many small businesses struggle to keep pace with those annual increased minimum wage costs, especially considering all the other rising costs they face for utilities, unemployment and workers' compensation insurance and property taxes.

It has long been time for our Legislature to face reality and adjust our minimum wage system to give small businesses the incentives they need to grow. Legislators should make this change this year.

HB 1313 is a bill that would extend Seattle's ill-advised mandatory sick and safe leave benefits statewide. It is filled with problems. Under the bill, an employee seeking time off would not be required to explain the reason. Unfortunately, that door opens to the possibility not only of abuse, but the costly loss of productivity in an era when retailers who survived the recession face rising costs, including next year's enactment of the national health care law. It also requires employees of larger companies to work less than employees of smaller companies to earn the same amount of sick time off.

This is a benefit that should be voluntarily extended by employers who can afford it. For those who can't, the Legislature owes them a thorough economic impact review before blindly copying Seattle's local law. The potential negative economic impacts and unintended consequences clearly should be considered. Legislators should hit the brakes hard on HB 1313 and avoid creating yet another drag on economic recovery.