Directs the Washington state institute of public policy, in consultation with the employment security department, to conduct a study to address the issues impacted by the minimum wage and its annual increases in Washington state. The study should address: (1) The impact of the minimum wage on job creation and job loss, from 1990 to the present;

(2) The role of the minimum wage in maintaining the purchasing power of low-income workers in comparison to other workers;

(3) Wage compression resulting from increases in the minimum wage;

(4) Demographic analysis of persons earning eight dollars and thirty-five cents per hour or less, including race, ethnicity, gender, marital status, and family size;

(5) The extent to which the minimum wage is paid in various industries and occupations in Washington, including the number of total jobs available in those industries over the past seven years and an analysis of any causal relation between increases in the minimum wage and fluctuations in those job numbers;

(6) Differences in economic activity attributed to the minimum wage increases in comparison with similar activity in Oregon, Idaho, and other states similar in economic size and industrial base to Washington;

(7) Economic activity and wage progression in industries with large numbers of low-wage workers compared to wages paid in manufacturing, high tech, and other moderate and high-income fields in Washington;

(8) The impact of the minimum wage on state unemployment, including a comparison of state and federal unemployment rates from 1970 to the present;

(9) A summary of the actions taken by other states regarding their minimum wage laws over the last five years;

(10) The extent to which the minimum wage is paid in various industries and occupations in Washington, including the number of total jobs available in those industries over the past seven years and an analysis of any causal relation between increases in the minimum wage and fluctuations in those job numbers; and

(11) The impact on workers and businesses of a minimum tipped wage.

Requires the Washington state institute of public policy to report its findings to the legislature by December 1, 2006.