Quality Food Centers (QFC) has decided to close two of its stores in Seattle as a direct result of the Seattle City Council passing $4 an hour “Hazzard Pay” mandated wage increase which is applied during the COVID-19 pandemic.

This is an unsurprising development, given the razor thin profit margins grocery stores typically have, and answers the question the Washington Policy Center posed earlier this month – “Did Seattle go too far with its over-regulation of business?” The answer, unfortunately, is yes.

The ordinance, passed by the Seattle City Council, 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.

Additionally, 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 the $4 an hour “Hazzard Pay” wage increase which is applied during the COVID-19 pandemic.

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 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 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. Some will be faced with closure.

The new law, and now the closure of the QFC stores in Seattle, clearly demonstrate why government should not be interfering with the free market.

The ordinance should be repealed before more stores are forced out of business.