Evergreen Reporter

House Bill 1181 proposes to increase the state minimum wage to $17.50 per hour in 2026, with an annual increment of $1.50 until it reaches $25 per hour. The bill also mandates employers to provide 2.3 hours of paid vacation leave for every 40 hours worked, equivalent to three weeks for full-time employees working standard eight-hour shifts. This leave could be utilized from the 90th day of employment, allowing new hires to take a week-long vacation after just 89 days on the job.

Additionally, starting January 1, 2027, all employees would be entitled to five days of paid bereavement leave, which would also become available after 90 days of employment.

The bill further grants authority to the state Department of Labor & Industries (L&I) to close any business location found violating wage laws. Violations could include incorrect wages or hours paid, errors in leave calculations or reporting on paystubs, and overtime mistakes. A daily penalty of up to $5,000 may be imposed for operating under a closure order.

The National Federation of Independent Business (NFIB) is urging its members to oppose this proposed minimum wage increase. They are encouraging members to share their concerns with the Legislature about the potential negative impact HB 1181 might have on businesses and the state's economy.