Jan Teague

President/CEO

360.943.9198, ext. 19

jteague@retailassociation.org

Mark Johnson

Vice President of Government Affairs

360.943.9198, ext. 15

mark.johnson@retailassociation.org

Tammie Hetrick

Vice President of Retail Services (RASI)

360.943.9198, ext. 13

tammie@retailassociationservices.com  

Jim Szymanski

ACTION ALERT!

Contact your legislators to defeat state tax increases

WRA members are strongly urged to contact their state legislators and ask them to defeat House Bill 2038, which would repeal several tax and investment incentives and extend other taxes scheduled to expire. The Legislature is adjourned until May 13, when a special session of up to 30 days will begin.

The sales tax exemption for non-residents, upon which some retailers depend for a significant portion of their annual sales, is among the targets of the bill sponsored by Rep. Reuven Carlyle, D-Seattle. Another part of the bill objectionable to WRA is a repeal on a sales tax exemption on bottled water.

These ideas would raise prices, threaten sales and slow the economic recovery from the most severe state economic slowdown since The Depression.

If you know your legislator, please leave a message at the Legislative hotline, 800-562-6000. Or, contact the legislature  and type in your address to learn who represents you and how to contact them by telephone or e-mail.

Thank you for your prompt attention to this matter. 

Journey to Washington D.C. to support Marketplace Fairness

By Jan Teague, President and CEO

Last week I joined over 100 leaders in Washington D.C. to speak to members of the House of Representatives about a top retail priority issue, Marketplace Fairness.  After more than 10 years of discussion with local, state, and national leaders, I think we are finally ready to resolve the Congressional concerns. 

Don't get me wrong, there are still opposition groups out there trying to confuse the issue so that online retailers don't have to collect sales taxes due to states.  The competitive edge of tax-exempt prices continues to erode the growth and survival of our retailers.  The winners in this debate have been online retailers who don't collect sales tax. 

Through their online service, Ebay, a landslide of resistance to the bill is happening right now. While I was talking with various Congressional staff I learned that the House has been flooded with emails from these online retailers.  But a bill did pass the Senate and the House is expected to discuss the bill this year. 

So what can you do to help at this time?  I would recommend sending a note to your Congressional Representatives telling your story about the competition you face from such things as showrooming or the costs of doing business that these online retailers don't face.  If you find a town hall meeting, try to attend and speak personally to your Representative. 

While I was in D.C., we heard from a number of speakers who talked about some key messages that Congress needs to understand.

1.     This is not a new tax, it is a tax that is owed.  The level of tax is set by the state.  This is a state's rights issue.

2.     The state makes the decisions on the level of taxes its citizens pay and Congress is interfering with its ability to collect the taxes.

3.     All of a state's citizens should pay the same tax equally and not allow those using the internet to avoid their tax obligation.

4.     If a Congressional Representative has signed a no new tax pledge, remind them that this is not a new tax nor a tax vote.  It is a change in the commerce clause law that allows states to continue to meet their balanced budget obligations using the sales tax.

5.     If we don't get resolution, states will be forced to find new tax sources that may curtail economic growth in our communities.

6.     Collecting the tax is no longer complicated.  It is doable now with the advances in technology.

There is one question that keeps coming up about what the Senate passed.  The Senate bill has a one million dollar exemption for online retailers.  This seems to be a key point and online retailers want an even higher exemption in the House version.  But small retailers in our communities don't get this exemption, so why should an online retailer get it?  I listened to a discussion on this political issue and at the end of the day, we hope to prove that all of the online arguments including it being too hard to do will melt away once more online retailers start collecting the tax.  Any change in the one million dollar exemption would need to include a phasing out of the exemption. 

The House has a long way to go before it is comfortable passing legislation.  But this is the year to get it done and we hope that it will not get stuck in a partisan fight that could hold it up indefinitely.  Keep in mind that a number of Republican and Democrat Senators voted for the bill.  We are working with all Representatives and hoping for the same result. 

Organized Retail Theft bill signed by Governor

By Mark Johnson, VP Government Affairs

Washington State already has one of the nation's leading ORT laws. Our law is actually recommended as model legislation for other states to adopt.  Two of the main components of the law allow aggregation of theft amounts in order to achieve a felony level by a repeat offender. The law also allows cross-county aggregation, again to get to the felony level.  This helps to discourage criminals and punishes anyone foolish enough to ignore the law.

SB 5022 improves the existing law by adding "special" circumstances to the ORT statute.  This change was brought to the legislature's attention by Spokane County Superior Court Judge Salvatore Cozza, who testified at the Senate hearing.  Now with the enactment of this enhancement, retailers in cooperation with prosecutors, law enforcement and judges have a new tool to crack down on these types of crimes. 

Retail theft accounts for a staggering $30 billion in losses nationally each year.  It is so big of a problem that the FBI has put a focus and special unit on it.  ORT has been linked to terrorism, drug trafficking and gangs.

Thanks again to Senator Padden, Judge Cozza and Gov. Inslee for putting this important law into action.

L&I financials reveal need for further workers' comp reform

The Legislature needs to enact further cost-savings reforms this session largely because the Labor and Industries reserve fund is lower than the department wants and the reforms agreed to two years ago aren't saving as much money as everyone hoped.

The department says it has a $720 million deficit in its reserve fund and it is projected to grow. WRA opposes raising insurance tax rates to respond; instead, WRA joins other business organizations in supporting SB 5127, currently under consideration by the Legislature.

SB 5127 would lower the minimum age eligible to volunteer for claims settlement from the current 55 to 40. This would settle more cases and reduce the financial burden on companies now forced to finance open claims with many employees who are willing to settle their cases early.

L&I's current financials indicate that reforms enacted by the 2011 Legislature improved the department's health, but the department contends it is not enough to hold down insurance rates.

Tammie Hetrick, WRA's Vice President of Retail Services agrees but for a different reason. 

"Had we passed a more comprehensive settlement policy back then, we would have met L&I's goals for its reserve holdings," Hetrick said.

SB 5127 would capture more employees who desire financial settlements but currently are disqualified by their age from pursuing them, Hetrick said.

Passing 5127 would reduce the need for high annual tax surcharges to companies to recover L&I's contingency reserve, Hetrick said.

Import projections reflect caution by retailers

The latest projections on imports reflect caution by retailers heading toward the next holiday shopping season.

Though volumes will be up about 1 percent through early summer compared to last year, they are projected to be flat in August and September, two of the busiest import months of the year, said Jonathan Gold, Vice President for Supply Chain and Customs Policy for the National Retail Federation.

"With consumer confidence low, employment struggling to recover, and less money in shoppers' pockets because of the payroll tax hike, we need to see action from Washington that will provide some fiscal certainty for families and businesses alike," Gold said.

Though cargo import numbers are not directly related to sales, they are considered a rough barometer of retailers' sales expectations. For more on this story, visit the National Retail Federation's website.

Source: National Retail Federation

OSHA says unions can accompany inspectors in non-union workplaces

An Occupational Safety & Health Administration interpretation would allow a union official to represent non-union employees on OSHA-related business.

OSHA recently made public a letter written in February regarding questions raised by the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union.

OSHA's response letter to the union says that union officials can investigate OSHA business in non-union workplaces and represent non-union employees without a collective bargaining agreement.

The National Retail Federation released contents of the letter to place employers on notice regarding the interpretation. It represents another example of efforts by unions to become involved in non-union workplaces.

Also, please see a legal analysis of OSHA's interpretation for further information regarding this issue.

Sources: Department of Labor, NRF 

WRA commentary on Inslee's new taxes published online

WRA President/CEO Jan Teague has authored an opinion piece calling into question Gov. Jay Inslee's proposal to repeal a non-resident sales tax exemption currently offered in Washington State.

Teague wrote that a repeal is bad policy that would damage economic development and threaten retail jobs prior to the retail industry recovering from the recession. State Employment Security data show there are approximately 6,200 fewer retail jobs in the state compared with January, 2008.

In some cases, repealing the exemptions would add hundreds of dollars of cost to the price of more expensive items and discourage sales in Washington State, particularly for small Southwest Washington businesses along the border with Oregon, Teague wrote.

Visit Washington State Wire to read Jan's article. The Washington Research Council also posted Jan's article on its website. 

WRA co-sponsors two free webinars this year

WRA is offering members two free webinars this year in cooperation with the Council of State Retail Associations.

To register ahead of time, click on the following links:

*How small retailers can recognize and prevent shoplifting, on May 21 - 6:30 a.m. MT / 5:30 a.m. PT (Webinar 1) or 9:30 a.m. MT / 8:30 a.m. PT (Webinar 2)

*Intermediate Mobile and Social Media Marketing, on June 27 -  6:30 a.m. MT / 5:30 a.m. PT (Webinar 1) or  9:30 a.m. MT / 8:30 a.m. PT (Webinar 2).

Please contact Jan Teague, WRA's President/CEO, if you have questions at 360-943-9198, Ext. 19 or a jteague@retailassociation.org.

Policy Center announces June 27 business, health care conference

The Washington Policy Center will host its 11th health care conference and biennial small business conference on June 27 at the SeaTac Hilton hotel.

Speakers will address the state of health care reform and the state's small business climate at the policy center's first-ever dual conference event. The keynote lunchtime address will be by MSNBC and Fox News analyst Avik Roy, who will address free-market solutions to the health care crisis. Roy also writes about health care for Forbes magazine.

WRA is a co-presenter of the event. To register, click here. For more information, contact Stephanie True at 206-937-9691 or strue@washingtonpolicy.org.

Candidate filing week ends Friday

Candidates for local, state and federal office are filing their intentions to run in a week long process that ends on Friday.

Candidates have until next Monday to withdraw applications. Candidates for county offices are contacting county elections offices and the Secretary of State for state offices.

This year's primary is Aug. 6; the general election is Nov. 5.  Go to candidates who have filed to keep up with who's filed for state offices.

WRA urges retailers to reject court settlement on swipe fees

WRA President/CEO Jan Teague is asking members to reject a proposed court settlement with Visa and MasterCard regarding fees they charge retailers who do business with those creditors.

Retailers should have received a 27-page notice from Visa and MasterCard regarding a lower court decision on transaction fees. The National Retail Federation, Retail Industry Leaders Association and WRA consider it a bad settlement and are urging retailers to reject the terms before a May 28, 2013 court deadline for objecting to the deal.

The Retail Industry Leaders Association has provided valuable frequently asked questions about opting out of the settlement. Please visit http://www.rila.org/enterprise/Documents/INTERCHANGE%20Settlement%20Summary%20RILA%203-5-13.docx to review that document.

According to the settlement, in exchange for minor financial relief for fees paid, retailers would waive all rights to further litigation against Visa and MasterCard.

The settlement notice includes a form Teague urged members to fill out stating that they object to the settlement. By opting out the settlement, retailers lend weight to attempts to negotiate terms more favorable to retailers.

At a minimum, WRA is asking that retailers submit a letter of objection that will help when the appeal is heard on the terms of the settlement this fall. The letter of objection can be submitted and will not change a retailer's settlement payment should a retailer want to settle now.

It must be mailed to Payment Card Interchange Fee Settlement, P.O. Box 2350, Portland, Oregon 92708-2350 and postmarked by May 28. Retailers are urged to keep a copy of the opt out letter for their records.

State schedules health care reform webinars

The Washington Health Benefit Exchange is sponsoring a series of webinars to get employers ready for next year's changes in health care coverage.

Webinars already have occurred regarding the Affordable Care Act and the state health care exchange. They can be reviewed by visiting the Washington Health Plan Finder  website.

The next hour-long webinar in the series will be held at 10 a.m. (West Coast time) on Friday, May 24. To receive e-mail updates and links to register for upcoming webinars, join the exchange's electronic mailing list. 

WRA shipping service redesigns, improves websites

Our national partner, PartnerShip, unveiled a new company website and an improved, separate shipping website.

The new company website includes new content, live chat, an employee directory and the ability to buy discounted shipping supplies. The new shipping site has streamlined the enrollment process.

As a WRA member, you could begin saving up to 27 percent on select FedEx shipping services by joining a new shipping service free of charge.

And considering new annual shipping rate increases from major carriers, it's a good time to check out WRA's agreement with PartnerShip, a national freight management company committed to reducing shipping costs particularly for small businesses.

Savings from the new shipping program can, of course, help you to offset the cost of your WRA membership dues.

The program is available to all WRA members with no minimum shipping requirements or obligations. Enrolled customers can save up to 27 percent on select FedEx services and at least 70 percent on less-than-truckload freight shipments arranged through PartnerShip.

"The new WRA Shipping Program makes a great addition to our menu of services designed to save our members money," said WRA President/CEO Jan Teague. "This program is clearly advantageous to all WRA members."

NRF seeking retail case studies

The National Retail Federation has launched a publicity campaign and is seeking suggestions from members about how to correct misconceptions about the industry.

If you have a positive story to tell about retail's impact on your community and on innovation, send the idea to thisisretail@nrf.com. 

In a letter to U.S. Speaker of the House John Boehner, NRF President and CEO Matthew Shay said people often fail to recognize the retail industry's impact on careers, community and innovation. The ThisIsRetail campaign aims to change those perceptions, he said.

Shay encouraged retailers to visit ThisIsRetail.org and to share stories that shed more light on the industry's impact.

Safety tip: (one in a series)

Teens require different safety rules

As the summer hiring season for teens nears, it's important for employers to understand how the safety rules change for teens.

Put simply, the law requires employers to treat teens differently from adults. Though the differences may seem overwhelming, Labor & Industries has summarized them all on its website.

Generally, teens as young as 14 qualify for a job, but their acceptable duties vary by age. Fourteen and 15 year olds are limited to light duties and relax somewhat for 16 and 17-year olds. Still, there is a very specific list of exceptions that limit the on-the-job tasks that teens are legally permitted to perform. Failure to comply would raise serious liability concerns for an employer.

For example:

*Minors under 18 can't operate meat slicers, a forklift or work at a height greater than 10 feet.

*They can't work in a freezer or work alone past 8 p.m. without supervision.

*Teens can't repair roofs, sell candy or flows on a public roadway or work in a sauna or massage parlor.

*Teens under 16 can't drive a car, cook, load or unload a truck, use a ladder of sell house-to-house.

*Acceptable hours also vary by age. For example, 16 and 17-year olds can work up to 48 hours a week during non-school weeks, but only up to 20 hours during school weeks. Sixteen and 17-year olds can work to midnight on non-school weeks, but only until 10 p.m. on weeknights during the school year. For younger teens, the mandatory quitting times are earlier.

L&I Director Joel Sacks issued a memo about teen work rules recently to raise their profile in advance of the summer hiring season. He urged employers to emphasize training, protecting teens from operating dangerous equipment and ensuring close supervision to avoid problems, including legal ones.

WRA employs Maria Justin as a safety advisor available for workplace safety visits or to help formulate a safety plan or ideas for safety meeting discussions. Contact her at 360-943-9198, Ext. 21 or at maria@retailassociaitonservices.com.

Research Council annual dinner set for June 4

Bill Bishop, co-author of a book that details how modern demographics explain recent elections, will headline the Washington Research Council's annual dinner on June 4 at the Bellevue Club.

Bishop co-authored The Big Sort, which describes America as increasingly clustered into culturally and politically homogenous communities even as the nation becomes increasingly diverse. Scholars and politicians alike cite Bishop's findings to explain modern election trends and outcomes.

For more details about the dinner, visit Research Council, contact dede@researchcouncil.org or call 206-467-7088. A 5:30 p.m. reception will precede the event.

WRA joins coalition for pro-business budget

WRA has joined the Recovery Washington coalition currently urging the Legislature to approve a pro-business state budget.

The coalition has run radio ads urging the legislature to avoid new taxes that add financial burdens that threaten jobs and the livelihoods of businesses. The ads feature small business owners who explain how increasing financial burdens hurt the economy. They also support the Senate state budget proposal that spends more for education while holding the line on taxes, unlike a House proposal that raises taxes.

Visit Recover Washington to learn more about the organization and its membership. The Legislature is scheduled to return on May 13 for a special session aimed at approving a new state budget. 

Breakfast for Heroes set for June 27

A military Breakfast for Heroes has been scheduled on June 27 at the Hilton Bellevue Hotel, 300 112th Avenue S.E.

The event is sponsored by Heartbeat, an organization that provides therapeutic services, emergency assistance and morale building programs for active and discharged service men and women in Washington State.

Featured speaker for the 7:30 a.m. will be Katherine Theresa Platoni, an Army Reserve clinical psychologist with experience teaching patients methods of reducing suffering from chronic pain and terminal illnesses. Col. Platoni's assignments have included four wartime deployments.

To register, click here . 

Save the date, Tacoma port breakfast meeting on May 23

Jenny Keehan, Executive Vice President of the Retail Industry Leaders Association (RILA) will talk about emerging retail trends at a Port of Tacoma breakfast meeting on May 23.

Keehan will discuss multichannel marketing, showrooming, social media and the current outlook and trends in the retail industry. The port's containerized import operations play a crucial role in supplying retailers with merchandise.

The event will take place at the Greater Tacoma Convention and Trade Center in downtown Tacoma, from 7:30 a.m. to 9 a.m.

Registration information will be available shortly and supplied in a later WRA newsletter.

State will advertise job openings, help with recruitment

Employers looking to advertise job openings or find job candidates can get online help from the state Department of Employment Security.

Employers who have scheduled job fairs or are looking to hire should contact ESD's calendar. Employers are encouraged to submit information at least two weeks in advance.

Also, WorkSource representatives in more than 30 offices around the state are willing to help recruit job candidates from a bank of resumes for interested employers. Contact recruitment services to learn more about this service. According to Employment Security, its website attracts more than 1.2 millions hits per month.