‘Nearly impossible to get ahead’: Think tank ranks WA 40th for labor policy

(The Center Square) – Washington ranks 40th out of 50 states in the American Legislative Exchange Council’s third annual report on labor policies and how they impact worker freedom, economic growth and business competitiveness.

The conservative Arlington, Va.-based think tank’s “States That Work: A Labor Policy Roadmap Across America” highlights states where workers experience more economic freedom, contrasting them with those with what ALEC deems as “outdated mandates.”

ALEC’s report notes that “10 state-level labor policies were selected as consequential reforms that promote worker and workplace freedom, and these are listed on each state page as potential achievements. States that have passed substantial legislation consistent with these ALEC model policies receive a full gold star, increasing their overall Labor Policy Rank. States that have passed similar reforms in need of improvement receive half stars. States that have not passed the reforms or that have repealed them receive no stars.”

The 10 criteria include policies related to various aspects of labor and employment, focusing on limiting union power and reducing regulation.

Washington received one and a half gold stars. The Evergreen State’s full gold star is for House Bill 1301, passed by the Legislature in 2023 and signed into law by then-Gov. Jay Inslee, which established a sunset review process for professional licenses regulated by the Department of Licensing. The law created a system to regularly review and analyze existing professional licenses to determine their necessity and appropriateness.

The state’s half-star is for Washington’s laws and initiatives designed to address and mitigate the negative impacts of criminal convictions, also known as collateral consequences. On the other hand, Washington lacks a petition process for individuals to file a request with a designated board or agency to determine how their criminal record might affect their ability to obtain state recognition or pursue certain activities.

Beyond the 10 categories, ALEC provided information on jobs, union membership and political makeup.

Washington’s 16.4% government sector job prevalence rate ranked it 33rd out of 50 states. The state’s average 10-year private sector growth rate (2014-2024) was 22.09%, earning it a respectable No. 11 ranking. On the other hand, Washington’s $16.66 an hour minimum wage – the highest state minimum wage in the nation – saw the state come in dead last at No. 50.

The state’s 10.03% private sector union membership rate ranked No. 47, while its 49.94% public sector union membership rate ranked No. 42.

The report notes that Democrats control the office of governor and both chambers of the state Legislature.

According to ALEC, the top five states are Arizona, Utah, Georgia, Arkansas and Florida. The bottom five are Connecticut, New York, Oregon, Massachusetts and Alaska.

Alan Jernigan, manager of ALEC’s Commerce, Insurance and Economic Development Task Force and one of the study’s contributing authors, put Washington’s No. 40 ranking into perspective.

“Washington state is a warning,” he emailed The Center Square. “Sky-high minimum wages, dense union rules, and limited licensing flexibility have created a system where the cost of entry is simply too high. It’s a beautiful place to live, but unless you’re already in the system, it’s nearly impossible to get ahead. Washington needs to ask itself: Who is this economy really working for?”