High wages and tougher regulations worry local merchants

A higher minimum wage and stricter Washington state regulations are issues weighing on the minds of Pullman business leaders.

The Washington Retail Association held a “Small Retailer Roundtable” with a handful of businessowners Wednesday at the Coast Hilltop Inn in Pullman.

The WRA is a lobbying group that aims to advocate for retailers in Olympia.

Moscow and Pullman Building Supply owner Tyler Garrett said during the roundtable that burdensome state regulations make it seem at times like Washington does not want retailers to stay in business.

He discussed how those regulations affected his business, including that Moscow and Pullman Building Supply is anticipating having to spend $180,000 more in payroll costs if the state’s proposed overtime eligibility rules are implemented.

Washington Department of Labor and Industries is proposing a rule that would increase the salary threshold under which employers must pay overtime for their workers. That salary threshold would increase to $79,800 over a six-year period, more than tripling the current threshold of $24,000.

The rule is scheduled to be implemented in July 2020 unless it is challenged in the Washington Supreme Court. Mark Johnson, senior vice president of policy and government affairs for WRA, said any employee receiving less than the salary threshold would have to be classified as an hourly employee and eligible for overtime pay.

Jan. 1, 2020, is another date that businessowners are anticipating with worry.

That’s when Washington’s minimum wage will increase to $13.50 an hour. Tom Handy, owner of Paradise Creek Brewery, said he is anticipating a 14 percent increase in his payroll.

“We don’t have any choice but to raise prices,” he said.

He said the restaurant’s cheapest burger is $13, but he expects that to be higher starting Jan. 1.

In addition to a higher minimum wage, Johnson said there could be more changes on the way depending on what happens this legislative session.

Johnson said he expects legislators to introduce a statewide bill that mirrors Seattle’s work scheduling rules for retail and hospitality businesses.

Seattle’s new rules require employers to post work schedules for their employees 14 days in advance. Additionally, if the gap between a closing and opening shift is less than 10 hours, an employee is entitled to be paid time and a half.

Johnson said this rule, if implemented across the state, is going to take away an employee’s schedule flexibility.

Johnson said a bill like this was introduced in the Washington Legislature last year and failed.

“But it’s coming back with a vengeance,” he said.

Johnson said the prospect of a capital gains tax and a costly consumer protection act will also be on the table during the coming legislative session.

Anthony Kuipers can be reached at (208) 883-4640, or by email to akuipers@dnews.com.