Washington Business 2018 AWB Rural Jobs Outlook | Page 11

Rural Jobs Outlook
Regulatory Reform
The regulatory and tax structure in Washington state makes it a relatively
expensive place to do business, and places Washington employers at a competitive
disadvantage compared to neighboring states. This is magnified in rural areas,
where industries also face workforce shortages and infrastructure needs. Some of
the costs include the nation’s highest state minimum wage, mandatory paid sick
leave, consistently high workers’ compensation insurance costs, and the recently
adopted paid family leave requirement. In addition, employers need certainty and
timeliness in regulatory review of potential new rural projects. AWB works with
its members and lawmakers to recognize and develop policies that maintain and
enhance business competitiveness and regulatory fairness.
Minimum Wage Paid Sick Leave
Initiative 1433, passed by voters in
the November 2016 election, increases
minimum wage to $13.50 per hour
by 2020 for anyone 18 and over. The
minimum wage will then be adjusted
based on the Consumer Price Index (CPI). An additional component to the initiative
1433 requires employers to pay sick leave
at a rate of one hour for every 40 hours
worked, beginning in January 2018. The
Initiative requires an employer to allow an
employee to carry over a minimum of 40
hours per year of unused sick leave and
does not contain a cap on how much sick
leave can be earned in a year.
Paid Family Leave
In June 2017, state lawmakers passed a
paid family and medical leave law. The
program, funded by both employees and
employers, annually offers 12 weeks of
medical leave and 12 weeks of family
leave, capped at 16 weeks annually, for
qualifying events such as the birth or
adoption of a child or serious illness
or injury. Women with pregnancy
complications can take two additional
weeks. Requirements for employers are
in line with the current federal Family
and Medical Leave Act standards and
businesses with fewer than 50 employees
are exempt from paying premiums.
Workers’ Compensation
Washington state continues to have
a compulsory workers’ compensation
system that is one of the most expensive
and administratively complex in
the nation. The last major workers’
compensation reforms were passed in
2011, yet some of the largest cost-saving
reforms have not produced the promised
savings or increased efficiencies.