S-0579.1
SENATE BILL 5339
State of Washington
69th Legislature
2025 Regular Session
By Senator Fortunato
AN ACT Relating to stabilizing minimum wage volatility by linking future increases to the federal minimum wage; amending RCW 49.46.020 , 49.46.120 , and 49.46.820 ; and creating new sections.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1. The legislature finds that as of January 1, 2025, Washington maintains the highest state-mandated minimum wage in the country. The legislature further finds the minimum wage in some local jurisdictions surpasses that of the state and represents the highest of any cities in the United States.
The legislature recognizes the importance of ensuring fair compensation for workers while balancing the broader economic impacts of wage and labor policies. The legislature acknowledges that increases in the minimum wage reflect efforts to address rising costs of living. However, the legislature also finds that recent aggressive increases in the minimum wage at both the state and local level also carry inflationary consequences, which can diminish the intended purchasing power benefits and impose unintended burdens on small businesses and consumers alike.
The legislature finds that while well-intentioned, these drastic wage hikes over a short time may actually hurt the very workers they were intended to benefit. As recent research from the University of Washington indicates, these increases have reduced available hours and cost workers potential earnings. The legislature recognizes that many small businesses operate on razor-thin margins and rapid shifts in the cost of labor jeopardize the ability of these businesses to remain open. Such policies may incentivize the exact opposite behavior that they were intended to generate, as employers facing higher costs may be forced to reduce hiring, cut hours, transition to increasingly available automation, or ultimately decide on layoffs as the only ways to remain in business. The legislature further finds that these unintended consequences have an enormous disproportionate impact on young workers seeking entry-level jobs, shutting young candidates out of their first employment opportunities and stifling their potential career growth.