Lakewood Chamber of Commerce
Board of Directors Position Statement
Oppose SB 5578 and HB 1764 – Unaffordable Wage and Leave Mandates
February 6, 2025
The Lakewood Chamber of Commerce stands firmly against Senate Bill (SB) 5578 and House Bill (HB) 1764, which would dramatically increase labor costs for small businesses across Washington.
These bills propose a 5% minimum wage increase ($0.84) in 2026, reaching $17.50 per hour—but that’s just the beginning. By 2031, wages would skyrocket to $25 per hour, with continued automatic increases tied to inflation.
Additionally, starting January 1, 2027, businesses would be required to provide:
–Three weeks of paid vacation (2.3 hours per 40 worked) for full-time employees—available after just 90 days on the job.
–Five days of paid bereavement leave—also available after 90 days.
–These bills would grant the Department of Labor & Industries (L&I) the power to shut down an entire business for payroll errors—whether it’s a simple miscalculation of leave time, an overtime mistake, or a wage dispute. Businesses could face penalties of up to $5,000 per day just for operating under a closure order.
The Impact on Small Business
Small businesses are the backbone of our local economy. They create jobs, support families, and invest in our communities. But these proposals would cripple Main Street businesses already struggling with rising costs.
— A $25/hour minimum wage is simply unaffordable. Many small businesses can’t absorb these costs without raising prices, cutting jobs, or closing their doors altogether.
— Mandated paid leave adds yet another financial burden, making it even harder to compete and survive.
— Customers will pay the price. Higher labor costs will drive up the cost of goods and services for everyone.
This is not sustainable. This is not practical. This is not good for Washington.
We urge lawmakers to stand with small businesses and oppose SB 5578 and HB 1764.