Washington Information Network
Washington's resource for political activity and issues important to retail industry professionals. Distributed to 2,800 subscribers
September 18, 2013
Washington Retail Association Newsletter
 Staff Contacts

 Jan Teague

President/CEO

360.943.9198, ext. 19

[email protected]

 

Mark Johnson

Vice President of Government Affairs

360.943.9198, ext. 15

[email protected]

 

Tammie Hetrick

Vice President of Retail Services (RASI)

360.943.9198, ext. 13

 [email protected]

 

Jim Szymanski

Director of Public Affairs
360.943.9198  ext. 12

 

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In This Issue...
Research Council turns thumbs down on SeaTac's Proposition 1
Action needed for the No on I-517 campaign
WRA meets new state Director of Revenue
State revenue forecast ticks up
I-522 contains numerous flaws, Research Council concludes
First increase in three years proposed for workers' comp insurance rates
Higher fines considered for safety violations
Hearing next week in Olympia on banning plastic shopping bags
How to get small business health care tax credits
New health care requirement in effect Oct. 1
Free business fair set for Sept. 28
Watch video overview of WRA's discount shipping partner
WRA members offered discount to Sept. 19 employment seminar
WRA co-sponsors Seattle chamber networking event
Safety tip
Still time to register for Tacoma retail crime conference
Summit scheduled to combat human trafficking

Research Council turns thumbs down on SeaTac's Proposition 1

By Jan Teague, President/CEO

 

Since when would granting a large pay increase be a bad idea?

 

It's a bad idea when more people suffer than benefit from it, as a new economic analysis shows for SeaTac's upcoming Proposition 1 vote this fall.

 

The union-backed proposal targets airline, hospitality and other service employees related to SeaTac Airport with wage increases from the nation's highest minimum wage pay grade, $9.19 an hour, to $15 and extends paid sick days to those employees.

 

The state's leading business research organization, the Washington Research Council, analyzed what would result from Proposition 1. It's not a pretty picture.

 

The council concluded: up to 10 percent of the city's least experienced employees would be laid off so that employers could absorb the 63 percent spike in hourly wages. Developers scared off by the higher wages would expand in cities other than SeaTac. Employees seeking sick leave would not be required to document the validity of their claims. Employers would be required to hire based on union seniority, not performance. A record-keeping nightmare would ensue for businesses, much like what has resulted in Seattle from its mandatory paid sick leave law. The bigger paychecks wouldn't be spent in SeaTac because demographic data show that less than 10 percent of the city's workforce lives in SeaTac.

 

The time is probably past due to re-label Proposition 1 for what it is, a rigid and regressive win/lose proposition. A few employees will win and scores of their colleagues, the businesses that employ them and the city they pay their taxes to would lose, according to the Research Council's findings.

 

Prop 1 truly represents the new face for union organizing efforts. Its provisions would be waived through union collective bargaining. The proposed $15 minimum wage is higher than some union contracts in the city. The Research Council found that a similar "living wage" law in Los Angeles ultimately allowed unions to bargain for higher benefits than they had been able to achieve by giving them a higher target for which to shoot.

 

In the end, a few employees with union seniority would benefit while laid off entry-level employees could commiserate about holding back the economic recovery with their unemployment checks. Businesses with multiple locations would be left to adjust to SeaTac's different wage scale while employers in service-related businesses not targeted in this ordinance would struggle to retain their employees, who now were earning nearly $6 an hour less than the higher wages of the targeted group.

 

For more information, click here to review the Research Council's entire analysis.

 

Suffice it to say, no one should be fooled by Proposition 1's lure of a bigger paycheck to miss whether this proposal serves the greater good. It doesn't.

 

SeaTac voters should reject Proposition 1.

Action needed for the No on I-517 campaign

By Jan Teague, President/CEO

 

Much of our current process for handling petition gatherers at retail locations is in question if I-517 passes.  The Washington Retail Association has taken a position to oppose this November's initiative written by the professional initiative promoter, Tim Eyman, for his paid signature gatherers. 

 

Eyman wants more time to collect signatures, more places on our property to do it and no interference by the courts or legal system.  The initiative is written so that one might think that Eyman's paid signature gatherers were being treated terribly and he wants to protect them.  Our experience is just the opposite.  The customers usually complain about aggressive signature gatherers who upset their shopping experience.

 

This is a grave concern to many of our members who know how hard it is to keep a customer and how easy it is to lose one.  We are talking about a serious financial situation from a marketing perspective.  Retailers spend an enormous amount of money creating customer loyalty. And they have rules if they allow signature gatherers on their property. That all would be in question if I-517 passed.

 

Please go to the website for the No on I-517 Coalition.  We need you to add your name opposing I-517 and to donate to the coalition so we can get the word out.  Every company name and every dollar is important because it sends a message that we understand what is at stake.

 

Please watch my No on I-517 statement on YouTube and forward it on to anyone who you think might be interested.

WRA meets new state Director of Revenue

By Mark Johnson, VP Government Affairs

 

WRA President/CEO Jan Teague and I had a good visit Monday with Carol Nelson, the new director of the state Department of Revenue.

 

Gov. Jay Inslee appointed Nelson to head the state's tax administration department.  Before joining DOR, Nelson spent 25 years in the financial and banking industry. 

 

Jan and I also met with several of Nelson's key policy, operations and legislative staff.  We were able to share some of our priority tax issues such as adopting the federal "Market Place Equity Act" and preserving the state non-resident sales tax exemption.  Nelson's staff shared with us its current legislative agenda, which will be finalized soon.

 

WRA and DOR have shared a strong working relationship for many years.  Our members are the chief tax collectors for the state and DOR has been a trusted ally in fairly and evenly administering the tax laws.  We look forward to many more years of joint cooperation under Director Nelson's leadership.

State revenue forecast ticks up

 

State revenue projections have improved slightly over the summer, but the state's chief economist continues to warn the Legislature about threats on the economic horizon.

 

Steve Lerch, chief state economist, today reported that state revenues in 2013-15 could be $342 million more than he expected in June. This is due to more construction activity and improving consumer confidence, he said.

 

In a report to the Economic Revenue Forecast Council, though, Lerch warned about several economic threats including rising home prices and mortgage interest rates and slowdowns in the global economy with trading partners crucial to Washington State's economic health.

 

Lerch said retail sales taxes have been up about 8 percent in each of the first two quarters of this year compared to last and he reported that retail employment as of August was up nearly 3 percent compared to last year. The Legislature relies heavily on these periodic reports to help establish tax policy each legislative session.

 

Click here to read the entire state revenue report.  

I-522 contains numerous flaws, Research Council concludes

 

The fall initiative to require special food labeling for genetically modified products could add as much as $520 to the average annual family food bill in Washington State and exempt many products from meeting the requirement, the Washington Research Council has found.

 

The council concludes it would be bad policy to require manufacturers to meet special labeling requirements only in Washington State and that the record keeping requirements would damage the state's significant farming economy.

 

The report further noted that the proposals of Initiative 522 exceed international labeling standards and would create the heaviest financial burden on the poorest of food consumers. Click here to read a summary of the report.

 

In recent days a network of more than 30 growers and agricultural groups across the state announced its opposition to I-522. WRA opposes it because it will confuse consumers and trigger food price increases and add regulations without any compelling reasons to do so.

 

Click here to review a summary of opposition to 522 including media coverage.

First increase in three years proposed for workers' comp insurance rates

 

Labor & Industries has announced an average 2.7 percent increase next year's in workers' comp insurance rates. It would be the first rate increase employers faced in three years.

 

At a meeting last week, L&I Director Joel Sacks said he hoped to achieve steady and predictable rates in future years; match rate increases to inflation; rebuild financial reserves to protect against future rate spikes and reduce overall safety-related injuries in workplaces across the state.

Sacks' proposal will now be vetted during a series of public hearings across the state before L&I settles on a final new rate before the end of this year.

 

Robert Mitchell, WRA's Director of Member Services and Nancy Barnes, Manager of WRA's Claims Division, attended Sacks' announcement of the proposed new rates.

 

Click here to review proposed rate tables sorted by type of business. Click here for L&I's announcement of the proposed rate increase, which includes times and locations for next month's public hearings. For additional background, click here.

 

For more information about setting next year's rates, contact Tammie Hetrick, WRA's Director of Retail Services, at 360-943-9198, ext. 13 or at [email protected]

Higher fines considered for safety violations

 

Companies found to be violating state safety regulations will face higher fines next year as a result of recent discussions by an advisory committee established under the Washington Industrial Safety and Health Act.

 

The WISHA advisory committee last week weighed options to increase some state fines. Current fines range from a $100 minimum to $7,000 for repeated serious safety violations.

 

Rick Means, WRA's Safety/Claims Administrator, attended the committee meeting. He learned that average safety violation fines are $2,100 in Washington compared to a national average of $1,900. Tammie Hetrick, WRA's VP of Retail Services, is a member of the WISHA advisory committee.

 

Anne Soiza, Deputy Assistant Director of the state Division of Occupational Safety and Health (DOSH), said The Protecting America's Workers Act of 2012 had motivated the state's consideration of hiking fines for violations. The federal act aims to reduce workplace deaths and injuries by toughening fines for safety violations.

 

The committee discussed accident scenarios and how fines would change. In the case of a small construction company where a serious injury resulted from a crew working without fall protection, a current $2,700 fine would increase to $4,550.

 

DOSH expects that a draft proposal for increased fines could be ready by the end of this year for consideration next year. Anyone wishing to comment for the time being may contact Sandy Mugartegui at DOSH, at [email protected]. A formal public comment period would follow a draft proposal for higher fines.

Hearing next week in Olympia on banning plastic shopping bags

 

Thurston County government has scheduled a public hearing next week regarding a possible ban on plastic shopping bags.

 

WRA encourages all retailers concerned about a ban to attend the hearings and express your thoughts. WRA favors maintaining choice for consumers by encouraging plastic bag recycling and the use of reusable shopping bags.

 

Next week's hearing is scheduled to begin on Tuesday, Sept. 24 at 5:30 p.m. at the Thurston County Courthouse, 2000 Lakeridge Drive S.W. in Olympia. 

How to get small business health care tax credits

 

The U.S. Small Business Administration and Internal Revenue Service want to help small businesses learn about tax credits they can obtain for offering health care under the Affordable Care Act.

 

An IRS online guide explains how the tax credit works.

 

In short, businesses with fewer than 25 full-time equivalent employees and pay average annual wages below $50,000 may qualify for a tax credit up to 35 percent of their premium contribution this year, and a 50 percent credit next year. Qualified businesses also must contribute 50 percent or more toward an employee's self-only health insurance premiums.

 

For further information including help completing necessary forms, call the IRS Help Line, 800-829-4933.

 

You also can learn more at www.sba.gov/healthcare

New health care requirement in effect Oct. 1

 

To comply with the Affordable Care Act, employers must notify their employees of 2014 health care coverage options beginning on Oct. 1 of this year.

 

A memo outlining this requirement was provided to state retail association executives this week by the Food Marketing Institute.

 

Earlier this month, the U.S. Department of Labor published frequently asked questions to cover this new federal requirement.  Click here for additional guidance on meeting this new federal requirement.

 

The State of Washington also will begin enrolling qualified customers of its health care exchange on Oct. 1 of this year. Click Healthplanfinder to learn how the state's online health care shopping system is supposed to work. To reach a newly-opened customer support telephone service, dial toll free, 1-855-WAFINDER (1-855-923-4633) or e-mail [email protected].

 

In its memo, FMI also reported about new hours-of-service regulations that affected delivery drivers as of July 1 this year. The reduced allowable driving time from the regulations will require the use of more trucks and trigger higher grocery prices, FMI reported. FMI is urging Congress to approve legislation that would extend limited exemptions from the new regulations for supermarkets, wholesalers and others who transport food products.

 

Contact Ty Kelly at [email protected] with questions or comments about the new driver regulations. Various media outlets initially reported incorrectly that companies that missed the deadline would be fined. Regardless, Labor will be monitoring to determine whether companies comply with the law. Visit The Puget Sound Business Journal for more on the misunderstanding.

 

Sources: Food Marketing Institute, Puget Sound Business Journal

Free business fair set for Sept. 28

 

The 17th free Washington Small Business Fair will be held on Saturday, Sept. 28 at Renton Technical College, 3000 N.E. 4th Street in Renton.

 

WRA is again participating with an information table and is co-presenting and planning the fair.

 

The fair annually attracts 400 to 600 existing and budding small businesses where participants can sharpen their skills during a series of seminars covering a broad range of business skills. Parking on campus is free and no advance registration is required.

 

Thirty federal, state and local government agencies and trade associations will share information at the fair. Visit www.bizfair.org for more information including directions or see Facebook at www.facebook.com/bizfair.

Watch video overview of WRA's discount shipping partner

 

WRA's third-party shipping provider, PartnerShip, has released a short video overview of the discount services it offers customers.

 

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

 

Four other possible advantages of joining PartnerShip include:

 

*Routing management. Based on an analysis of shipments, PartnerShip will recommend the best shippers for particular routes. The recommendation is based on a carrier's cost effectiveness and customer service.

 

*Bill auditing. Vendors such as PartnerShip say they often find invoices with rate errors of up to 10 percent in favor of the freight carrier. Corrections are made before the third-party vendor sends the bill to the customer.

 

*Improved inbound shipping. By relying on vendors to control your inbound shipping, it can be difficult to learn how and when your orders will be shipped and delivered. You can gain that knowledge by arranging shipping through a third party partner such as PartnerShip.

 

*Consolidated invoices. For frequent shippers, this can mean paying only one bill weekly or monthly as opposed to paying for each shipment.

 

Click here to watch the video overview of the company and obtain contact information. Also, visit PartnerShip's website and its improved, separate shipping website. 

WRA members offered discount to Sept. 19 employment seminar

 

The law firm Lane Powell will conduct its annual seminar on employment law and human resources issues on Sept. 19 at the Four Seasons Seattle hotel.

 

The firm is allowing WRA members a discount on the registration fee.  The day-long event is co-sponsored by the Lake Washington Human Resources Association.

 

Attendees will receive an employment law update; learn of impacts from the National Labor Relations Board, impacts from disability and wellness laws and ways to protect sensitive company information and data.

 

Click here to learn more and register. 

WRA co-sponsors Seattle chamber networking event

 

The 9th All Chamber Business After Hours networking event will help from 5:30 p.m. to 7:30 p.m. on Sept. 19 at The Foundry by Herban Feast in Seattle.

 

WRA is co-sponsoring the event that allows attendees to network with multiple business organizations and chambers of commerce throughout the region. The event drew 430 participants last year.

 

Click here to register and obtain directions. 

Safety tip: (one in a series)

Write plans to reduce workplace violence

 

Violence in the workplace was the second leading cause of workplace fatalities last year, second to vehicle-related accidents, according to the federal Bureau of Labor Statistics.

 

Other accidents such as falls, fires, exposure to chemicals or being struck by objects ranked lower in the number of incidents than homicides, stabbings and suicides.

 

This cold reality was riveted upon the public just this week with the multiple fatalities from the shooting incident at a Washington, D.C. Navy facility.

 

It's important to understand that workplace violence isn't always obvious to employers or employees. It can be any act or threat of physical violence, harassment, intimidation, or other threatening disruptive behavior that occurs at the work site. It ranges from threats and verbal abuse to physical assaults. It can affect and involve staff, clients, customers or visitors. The truth is violence can strike anywhere, anytime and no one is immune.

 

Rick Means, WRA's Safety and Claims Administrator, advises that workplace violence can originate with abusive customers, robberies, even disgruntled employees or those under stress.  When employees are at risk for violence in the workplace, your Accident Prevention Plan must include this hazard to reduce the risk, such as training workers on de-escalation techniques, installing adequate lighting in parking lots or providing drop safes.  Employers should assess whether personal protective equipment is needed, (i.e. cashiering behind safety glass for a high robbery risk areas.)  Workers at higher risk include those exchanging money, delivery drivers, healthcare professionals, public service workers, customer service agents, law enforcement personnel, people dispensing pharmaceuticals, and those who work alone or in small groups.

 

The best protection employers can offer is to establish a zero-tolerance policy toward workplace violence. The policy should cover all workers, clients, visitors, contractors, and anyone else who may come in contact with company personnel.

 

The Occupational Safety and Health Administration (OSHA) recommends that a well written and implemented violence prevention program coupled with engineering controls and training can reduce incidents. The program should be incorporated into an employee handbook or a manual of standard operating procedure. Staff should know that all claims of workplace violence will be investigated and remedied promptly. 

 

For a short video on retail workplace violence, click here: http://www2.worksafebc.com/media/fss/violence/slideshow.htm

 

Here is an article about de-escalation techniques:

http://www.articlesbase.com/self-help-articles/deescalation-techniques-how-to-take-the-wind-out-of-their-sails-92797.html.

 

As Safety and Claims Administrator, Rick Means is available to members to help draw up safety plans and suggest topics for safety meetings. Contact him at 360-200-6454, or [email protected].  

Still time to register for Tacoma retail crime conference

 

Spots still remain to attend next month's free retail loss prevention conference to be held in Tacoma.

 

The all-day conference will be Oct. 3 at the Tacoma Convention & Trade Center.

  

The crime conference has become an annual event organized by the Washington State Organized Retail Crime Alliance, a network of concerned retailers and law enforcement officials, including WRA.

 

WRA urges all retailers to support this year's conference by attending and putting into practice the knowledge to be gained.

 

Click here to register for the conference. A complimentary lunch will be available. Click here for more background on this trend courtesy of the National Retail Federation. 

Summit scheduled to combat human trafficking

 

An organization dedicated to wiping out human trafficking in the state has scheduled a summit meeting in Seattle in October to begin building a network of business support.

 

The Engage for Impact summit will be held beginning at 8:30 a.m. on October 5 at Seattle Pacific University's Queen Anne Upper Room Gwinn Commons.

 

Click here to register. Go to Washington Engage to learn more. 

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