AWB previews Cost of Regulation report, highlights paths to reduce business friction

In a breakout room session at this year's Eastside Leadership Conference, the Association of Washington Business (AWB) previewed findings from its forthcoming Cost of Regulation report and outlined pragmatic steps to streamline Washington’s regulatory landscape. The conversation centered on how overlapping rules drive costs, especially in health care, and what policymakers can do this session to deliver clearer, faster compliance for employers.

The main point AWB sought to get across is that complexity is the cost driver, and with budget constraints ahead, targeted reforms that lower friction can improve service, reduce delays, and help Washington employers stay and grow here.

Want to read the full ELC recap? Check it out here.

The Scale Of Regulation In Washington

AWB framed Washington’s regulatory environment with a simple premise: The volume and interlocking nature of rules complicate compliance and add cost, particularly for small businesses.

“Washington State, on the books, has 45,403 Labor and Workforce Development regulations when the average state has 7,000.” — Emily Wittman, AWB

Health Care Costs And Program Interactions

Health care emerged as a flashpoint where regulatory interaction amplifies cost and risk for employers and patients. AWB linked elevated health services rules and implementation challenges to rising premiums and operational strain.

“We are seeing an average like 20% increase in health care premiums across the board in Washington State this year.” — Emily Wittman, AWB

Where Friction Builds: Duplication, Delays, And Conflicting Rules

Beyond sheer volume, AWB stressed that overlapping definitions and duplicative processes across agencies create costly delays and uncertainty.

“Our analysts have seen that over 50% of the regulations that we have here in Washington are classified as being duplicative, redundant or burdensome.” — Emily Wittman, AWB

AWB also cited redundant background checks across agencies and inconsistent interpretations of the same requirement, which can take months to resolve. By a less conservative measure, AWB estimated, “probably 70% of net regulations are quote, unquote red tape,” underscoring that interaction effects, not just counts, drive compliance complexity.

Practical Solutions On The Table

AWB offered a slate of tested tools to reduce red tape without sacrificing core protections, emphasizing process improvements over wholesale policy reversals.

• Regulatory budget and sunsets: Cap total rules and require periodic review of whether programs meet intended outcomes, similar to how tax preferences are reviewed.
• One-in/one-out rules: Consider approaches used in Idaho and elsewhere to steadily reduce net regulatory obligations.
• Align and assess: Align state rules with federal or neighboring standards where appropriate, and require cost–benefit analyses before new rules advance.
• Digitize and consolidate: Build one-stop portals so employers aren’t re-entering the same data across multiple systems; explore regulatory sandboxes and ombudsman support to resolve bottlenecks faster.

AWB’s Cost of Regulation report will be public in January, with near-term proposals aimed at high-impact fixes.