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@retailassociation.org

Jim Szymanski

WRA CEO Jan Teague and Congressman Denny Heck recently toured Olympia's Best Buy store while discussing how to make competition with online retailers fair.

Representative Heck tours Best Buy

By Jan Teague, President/CEO

I had the opportunity to meet with Representative Denny Heck last Friday about the challenging competition that traditional retailers are getting from online sellers who don't collect sales taxes. Best Buy is a good example given that higher priced items such as televisions and computers can be ordered online with considerable tax savings.  With sales taxes nearly at 10 percent, the savings online really makes a difference to the customer. 

Showrooming is a growing problem with customers coming into a store like Best Buy, learning all about a product, scanning a bar code and seeing where to save by ordering online.  Customers don't mention that they have no plans on buying from the store, yet they spend a lot of time learning what they want to buy and then go online to get it.  Even if a store offers to match the online price, which may be a deep discount for the store, they can't compete.  The sales tax alone makes the difference in the buying decision. 

A special thank you to Best Buy for setting up the meeting and hosting Representative Heck.  He was supportive of the changes that need to happen in Congress and was interested in all of the issues facing retailers in Congress.

Best Buy representatives also showed us the latest advances in televisions and are hopeful that the Super Bowl coming up on Feb. 2 will be good for store sales.  I, too, am hopeful that all of retail will do well that day as shoppers celebrate at home and at gatherings with friends to watch the Seahawks win! 

Flawed independent contractors bill heard Tuesday

By Mark Johnson, VP Government Affairs

HB 2334, dealing with independent contractors, was heard in the House Labor Committee Tuesday afternoon.  I was there along with representatives from the Direct Selling Association and Avon to oppose this labor-backed bill.

HB 2334 is a portion of last year's HB 1440. 

Unfortunately, the bill hasn't improved much from last year. It takes the current worker classification system and replaces it with a new test on whether an independent contractor, such as a short-haul truck driver or a direct seller, is actually an employee of the company.  If they are deemed an employee, the company would take on all manner of new costs including workers' comp and unemployment insurance and all state wage -and-hour requirements for starters. 

The bill is unfortunately a misplaced attempt to get at a few bad actors collectively known as the "underground economy." The bill is too broad and applies to all employees and employers.  Even direct sellers such as Avon would have to defend against charges that they are actually employees. 

The International Franchise Association is also concerned that the bill would interfere with existing law, especially federal statute. 

This bill is going in the wrong direction and should be put aside this session.  There are better, more accurate ways to get at the underground economy than HB 2334.

Minimum wage increases cost jobs, fail to help the economy, studies show

From SeaTac to Seattle to Washington State, there's more debate about whether to boost the state's highest-in-the-national $9.32 minimum wage. Some are targeting a level as high as $15 an hour.

Erin Shannon, the Washington Policy Center's Director of the Center for Small Business, has compiled results of various minimum wage studies that offer revealing conclusions.

In short, raising the minimum wage often penalizes low-skilled employees who get laid off as a result and does little to inject any life into the economy, Shannon's research showed.

On national TV Tuesday, Microsoft founder Bill Gates said raising the minimum wage could create an incentive for businesses to eliminate some jobs.  Gates continued that the issue raises numerous questions and complications that should be explored first before raising the minimum wage. For example, would raising the minimum wage tempt companies to lean more on technology to replace people? Could it result in more outsourcing of jobs overseas? Is such a trade-off worth it?

In summary, Gates said the best way for workers to raise their standards of living is by academic achievements that increase their worth in the marketplace.

WRA opposes raising the minimum wage because it inhibits hiring and can lead to layoffs. WRA also has supported a temporary lower-than-minimum wage to improve hiring prospects for unskilled and inexperienced workers.

At his State of the State address last week, Gov. Jay Inslee suggested the state Legislature should consider raising the state minimum wage. Speaker of the House Frank Chopp told TVW viewers on Sunday that he expected to see a minimum wage bill up for discussion very soon in this year's legislative session.

Shannon's research found that about 2 percent of full-time employs earn the minimum wage and many of those workers live with someone making more than that. One study found that raising the minimum wage raised teen unemployment by nearly 7 percent while another report showed the few extra dollars paid to workers did little if anything to improve the surrounding economy.

Click here to review Shannon's research and resulting report on the minimum wage.

On the same front, a new survey has found that San Jose, Calif. restaurants were forced to enact layoffs in response to a 2013 raise in the minimum wage.

Also this week, state Sen. John Braun , R-Centralia, introduced a bill that would pre-empt municipal minimum wage increases around the state. Click here to read more about Braun's bill.

Sources: Washington Policy Center, Silicon Valley Business Journal, Crosscut.com

WRA meets with sponsor regarding workers' comp reform bill

Tammie Hetrick, WRA's VP of Retail Services, met this week with sponsors of a bill that could give like businesses full control of the management of claims through a group self-insurance pooling of workers' compensation.

Hetrick met with sponsor, Sen. John Braun, R-Centralia and Sen. Janea Holmquist-Newbry, R-Moses Lake, chair of the Senate Commerce & Labor Committee.

The bill would authorize workers' compensation group self-insurance plans. It would require a group of employers seeking to qualify as a group self-insurer to apply for certification to the Director of Labor & Industries. WRA now manages workers' comp claims under the control of Labor & Industries.

Hetrick said WRA supports offering members as many positive choices as possible to reduce workers' compensation costs. The bill would allow WRA to avoid delays in processing claims, thereby saving employers money, she said.

Hetrick said she expects the bill, SB 6179, to receive a Senate committee hearing this session. 

WRA meets to improve medical exam process

WRA's Tammie Hetrick met with the Department of Labor and Industries this week as part of the Independent Medical Examination Business and Labor Team that is working to improve the independent medical examination process.  The team expects to make recommendations in April.

L&I is looking for feedback from interested parties on how to improve the quality of examinations through improved payment processes and finding ways to attract more specialists into the program. 

Hetrick said many challenges lie ahead with getting doctors to testify and support their medical opinions at a fair and customary rate.  The group will be evaluating the current rates and charges associated with physicians' testimony to identify ways to achieve consistency in how fees are billed. 

Today is the 10^th day of the Washington Legislature's 2014, 60-day session.

As in every year, WRA has been tracking bills that could affect retailers and will add to its review list until adjournment. WRA began its weekly updates for its Government Affairs Committee last week in teleconference calls that will continue until adjournment, scheduled on March 13. The session has set Feb. 7 as a date that bills must clear their respective committees to move forward for more consideration.

Here are highlights of key bills on WRA's radar:

*Retro scheduling authority bills are SB 5112 and HB 1316. WRA supports these bills that could reduce employer costs by allowing Retro programs to assist with scheduling workers' comp medical exams under supervision of the Department of Labor & Industries. The bills have bipartisan support and are expected to be heard for consideration.

*Flash mob robberies. Mark Johnson, WRA's VP of Government Affairs, has testified in favor of SB 6024 that would establish legal penalties to curb the criminal threat from groups that use social media to organize several thieves who wind up stealing from one store at the same time.

*Trespass bill. WRA supports HB2353 that would allow retailers to seek fines for repeat trespass offenders who spoil the shopping experience for customers. The House and Senate are expected to conduct hearings.

*ID check for cough syrup. WRA plans to testify against SB 6032 this week. It mandates proofing cough medicine customers to prove there are age 18 or older. Many retailers voluntarily perform age checks and oppose making it a mandate with penalties.

*Reporting of tax incentives. WRA is opposing a 106-page bill, HB 2201, that would require detailed reports by any company receiving a tax incentive. WRA believes it would create a bureaucratic preoccupation for retailers who cannot afford to be draining resources for pointless bookkeeping.

Look for weekly updates in this newsletter regarding key bills that either die or are advancing toward final approval.

Lacey votes tomorrow on plastic shopping bag ban

The Lacey City Council is scheduled to vote tomorrow whether to ban plastic shopping bags or send the question for a decision by voters.

The city's agenda indicates visitors will be allowed to comment at City Hall, 420 College Street. The meeting begins at 7 p.m.

Last week, The Olympian reported that the city council was divided on how to vote. A community poll also indicates residents are divided about what to do.

As more cities in the state ban plastic shopping bags, WRA notes that it has created a challenging patchwork of separate ordinances that are costly for stores with multiple locations. Some stores must adhere to a ban while others do not.

WRA promotes the use of reusable cloth bags, paper and a deeper commitment to plastic recycling as opposed to bans. There also is consideration in the state Legislature about pre-empting local governments from growing the patchwork of bans that have cropped up the past couple of years.

On February 11, Issaquah residents will vote in a special election whether to overturn a ban on plastic shopping bags.

Two replacements named to Legislature

Two new state legislators have been named to replace one former member and another who moved from the House of Representatives to the Senate.

Orting City Councilman Graham Hunt, a Republican, has been named to succeed Rep. Gary Alexander in the 2^nd District. Hunt owns an insurance agency and a veteran of service in Iraq and Afghanistan.

In the 26^th District, county leader selected Jesse Young to replace Republican Jan Angel, who was elected to the state Senate last November. Hunt and Young will have to run for election in November to continue in the legislature next year.

Regarding other vacancies, Rep. Marko Liias have been recommended to fill the former Sen. Paull Shin's seat. Shin resigned for health reasons.

A reporting reminder from Ecology

Manufacturers of children's products are reminded that the next annual reporting cycle with the state closes on February 28 this year.

Manufacturers who first reported last winter should report again by next month's deadline. Reports are required by the Children's Safe Products Act.

Ecology has added a "copy" function in its program to speed reproducing data from last year. The new copy function should appear next to reports on the "submitted reports" page. The page also allows editing of reports.

To view a webinar reviewing data received so far from manufacturers, click here.

Contact Joshua A. Grice, a research analyst with Ecology, with questions at 360-407-6786 or at Joshua.grice@ecy.wa.gov.

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. This is even more important in the New Year because the major national shippers have just increased rates. Click here to obtain a rate analysis matching your needs.

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.

Safety tip: (one in a series)

How to prevent slips, trips and falls

The most common workplace accidents involve slips, trips and falls. They're not to be taken lightly because in some instances, such accidents not only result in lost work time, they can be fatal.

The best way to prevent these types of accidents is to pay close attention to housekeeping and to make sure employees don't rush and remain focused in performing their tasks.

Slips typically happen due to poor traction between shoes and a walking surface. Trips occur when objects are in the way or when employees lose their balance.

Without good housekeeping, including keeping aisles clear of debris, other preventive measures are likely to lose their effectiveness at preventing accidents. Some preventive steps include installing non-slip flooring or wearing specialty, high-grip footwear.

Some fundamentals to keep in mind:

*Don't rush if it can be avoided. Rushing is one way employees lose the focus needed to avoid some accidents.

*Avoid distractions until the task at hand is completed.

*Wear appropriate shoes for the conditions.

*Improve lighting where needed.

*Balance the load you're carrying.

WRA employs Rick Means as a Safety and Claims Administrator who is available to members to help draw up safety plans and suggest topics for safety meetings. Contact him at 360-200-6454, or rick.means@retailassociationservices.com.