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The Northwest Grocery Association (NWGA) and the Washington Food Industry Association (WFIA) have filed a lawsuit against the City of Seattle accusing the City of violating both the constitution and collective bargaining rights by passing a $4 an hour “Hazzard Pay” wage increase which is applied during the COVID-19 pandemic.
The ordinance went into effect Wednesday and 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.
The NWGA and WTIA lawsuit claims the new Seattle ordinance violates the equal protection clause under the federal constitution.
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 businesses 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 foul of the new law. Likewise, stores that might be considering expansion, even during COVID, will now be reluctant to expand beyond 10,000 square feet.
The new law clearly demonstrates why government should not be interfering with the free market and should not be picking winners and losers.
The free market will find a way around the regulations, despite the bureaucrat’s intention to tax the business for just trying to provide a service and maybe turn a profit, despite the governments attempts to prove otherwise.
The ordinance should be repealed to allow all grocery stores to compete in a free market.
