House Bill 1181 would raise the state minimum wage to $17.50 an hour in 2026 and another $1.50 an hour every year after until the state’s rate reaches $25 an hour. 

But it doesn’t stop there. 

HB 1181 would also require all employers to provide 2.3 hours of paid vacation leave for every 40 hours worked, or three weeks of vacation for full-time employees working a typical eight-hour shift.  

This new leave could be taken as early as the 90th day on the job. So, new hires could work 89 days then take 40 hours vacation. 

In addition, all employees would receive five days paid bereavement leave beginning January 1, 2027. Eligibility to take bereavement leave would also begin on the 90th day after hire. 

But wait. There’s more. 

The bill would empower the state Department of Labor & Industries (L&I) to shut down every location where you do business if they find a wage violation has occurred, such as the wrong wage or number of hours paid, leave totals incorrectly tallied or misreported on paystubs, overtime errors, etc. A $5,000 maximum daily penalty could be assessed for operating in violation of a closure order.

NFIB is calling on its members to Take Action to Stop the Minimum Wage hike.  

Click here to send your story to the Legislature on the damage HB 1181 could do to your business and to the state economy.