The Seattle City Council voted Tuesday to extend the $4 “Hazard Pay” for grocery workers despite the negative effect it has had on jobs and businesses in the last 12 months.

Earlier in 2021, Quality Food Centers (QFC) closed two of its stores in Seattle as a direct result of the Seattle City Council passing the original “Hazard Pay” mandated wage increase in January 2021. Given the razor thin profit margins grocery stores typically have, it is not surprising QFC took the steps to close the stores and answers the question the Washington Policy Center posed earlier – “Did Seattle go too far with its over-regulation of business?” The answer, unfortunately, is yes.

The ordinance, originally described as a temporary measure when it passed by the Seattle City Council in 2021, applies to grocery stores that have more than 500 employees and stores that are over 10,000 square feet. It mandates a $4-an-hour increase for each employee while Seattle is under a declared civil emergency.

A lawsuit from the Northwest Grocery Association (NWGA) and the Washington Food Industry Association (WFIA) against the City of Seattle accused the City of violating both the constitution and collective bargaining rights by passing the $4 an hour “Hazard Pay” wage was dropped on appeal. A spokesman from the NWGA at the time the appeal was dropped stated – “We agreed that the issue was likely moot given the City Council’s intent to repeal the ordinance in the near future” now seems premature given the Councils recent action.

For the Seattle City Council to decide, somewhat arbitrarily, that grocery stores over 500 employees should pay more to their employee’s vs a smaller business is certainly picking winners and losers in the marketplace. Certainly, stores that have approximately 500 employees will be ensuring they have slightly less employees, so they don’t run afoul of the “Hazard Pay” law. Likewise, stores that might be considering expansion, even during COVID, will now be reluctant to expand beyond 10,000 square feet. Some will be faced with closure.

The “Hazard Pay” law, and the closure of the QFC stores in Seattle, clearly demonstrates why government should not be interfering with the free market.

The ordinance should be repealed before more stores are forced out of business.