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

Transportation, Education, and the pile-on effect

By Jan Teague, President/CEO

This was supposed to be the year for a state transportation package.  There has been a large group of elected officials who met on this all last fall and it looked like something would be decided. Everyone in the business community has been hopeful.

But this week I heard that the Governor has made comments about including greenhouse gas reduction in the package, which would mean finding sources of revenue to reduce air pollution.  This rumor has created a sense of tentativeness about the transportation package.  It's been slowed down, which, in a short session, could wind up causing the already negotiated pieces to not happen because of lack of time. The 2014 Legislature is scheduled to adjourn on March 13.

What's troublesome about this rumor is how easily a huge issue like this can be sideswiped.  Does everything have to be done at once?  Sometimes, pure politics comes into play and becomes the reason that statements are made to appease a constituent group demanding some attention.

To add to the problem, a recent state Supreme Court decision says we need to put more money into education.  That means that budget shortages are again a big issue for legislators to negotiate this session.

It's too bad that the economy keeps slogging along and we don't have enough new sales tax and B & O tax to make these investments in education as fast as the court wants.  The answer lies in an economic recovery that finds businesses hiring and making more money. 

Employed people who see a strong economy are great shoppers.  It's the elusive answer being held back by government leaders in control and their unrelenting demands for things like higher minimum wages or new rules for various businesses to pile on to their existing ones.

It's the pile-on effect that is keeping the economy sluggish.  No single individual and no single rule change is to blame.  It's the whole thing together - the pile on-effect - that is the problem.

Last night U.S. Representative Cathy McMorris Rodgers (R-Spokane) gave an excellent speech about Americans.  Essentially she said that we are a great people doing the things we do every day.  Government needs to step aside and let us get this economy rolling.  Too bad it can't take just one year off from all this change it is either trying to make or collect from people.

Governor releases $200 million tax proposal

By Mark Johnson, VP Government Affairs

Democrat Governor Jay Inslee unveiled a $200 million tax increase proposal on Tuesday.  Included are a repeal of the non-resident sales tax exemption and repeal of the sales tax exemption for bottled water.  On Tuesday, the bill had not been officially introduced or been assigned a number or hearing date.

The Governor says the new taxes should be directed toward education funding.  While WRA appreciates the Governor's goal of increasing education funding, we do not think his proposal does it in the right way. 

Removing the sales tax exemption for non-residents will cost Washington retailers lost sales and result in lost jobs.  Studies have shown that thousands of businesses, especially along the Oregon border, depend on non-residents shopping in their stores.  Some stores reported more than 60 percent of their sales were from Oregonians.  If the Legislature removes or alters the sales tax exemption, Oregonians and other shoppers who qualify will simply make their purchases in their home states or online.

Extending the sales tax onto bottled water makes no sense either.  Bottled water is a healthy food product that thousands of consumers enjoy.  Furthermore, there are several vibrant businesses in Washington State that bottle water and deliver it.  If the Legislature makes bottled water more expensive it will hurt sales.  This will hurt our businesses and cost jobs.

While funding education is the state's paramount obligation, it should not be done at the cost of Washington State jobs.  Instead, WRA believes the state should make education funding a priority and fund it first rather than myriad other programs that compete for state dollars.

WRA meets with Governor to discuss minimum wage

By Mark Johnson, VP Government Affairs

I met with Democrat Governor Jay Inslee on Monday to discuss WRA's concerns about raising the state minimum wage. 

The Governor feels the minimum wage has not kept up with employee production and should be raised.  No firm number has yet been established regarding what size increase to discuss.

During his State of the State address at the start of session, Inslee set out broad outlines for an increase in the range of $1.50 to $2.50 an hour.  Currently, the state's minimum wage is $9.32 an hour so it could rise to between $10.82 to $11.82 an hour.  In the House, HB 2672 has been introduced to raise the minimum wage to $12.00 an hour.  In Seattle the Mayor and Council are considering a $15.00 an hour minimum wage.

Our concern with raising the minimum wage is that businesses will not only have to raise the wages paid these entry-level positions but also for higher level, more skilled positions.  This ripple or compression effect significantly raises the costs of doing business.  Businesses then must make the difficult decision of lowering hours, cutting positions, reducing benefits, and/or raising prices. 

Our economy is finally starting to show signs of life.  I want to caution our policy makers on raising the costs of doing business in our state.  Rather, we should focus on creating more jobs and increasing consumer purchasing to drive our economy out of this slump.

Higher minimum wage hurts the economy, retailers say

President Obama's move to raise the federal minimum wage hurts prospects for an economic recovery and job creation, the National Retail Federation said on Tuesday.

"Raising the minimum wage would place a new burden on employers at a time when national policy should be focused on removing barriers to job creation, not creating new regulations or mandates," said NRF President and CEO Matthew Shay.

Shay said raising the minimum wage hurts the people it is intended to help the most.

Said Shay: "Fewer than 5 percent of hourly workers are paid the minimum wage. It's really a starting wage that allows teenagers or others with little job experience to enter the workforce. A mandated hike in labor costs would negatively impact businesses that employ people in entry-level jobs and ultimately hurt the people it is intended to help. This isn't economic theory - when the minimum wage went up in 2009, half a million part-time workers lost their jobs. That's a risk our economy can't afford to take."

Newspaper challenges Inslee on minimum wage hike

Gov. Jay Inslee's proposal to hike the state minimum wage is anti-business and will hurt job creation efforts, The Tri City Herald has commented on its editorial page.

"Gov. Jay Inslee needs to start thinking like a business owner," the newspaper commented.

The paper also takes Inslee to task for making veiled references to research that supports his proposal without producing proof.

Click here to read the entire commentary. 

It's Day 17

Today is Day 17 of the 2014 Legislature's 60-day session.

WRA has begun its annual function of tracking hundreds of bills of potential importance to retailers.

Here are highlights of some of the key bills on which WRA has testified and is paying attention:

*HB 1294 includes an expensive dangerous chemical testing requirement for many retailers. WRA is working to remove that requirement.

*HB 2246 and SB 6177 front voluntary recycling programs for lights containing mercury. WRA is working to reverse a troubling trend of light bulb manufacturers trying to shift the cost of administering recycling programs from themselves to retailers. WRA also is working to secure an allowance for retailers who volunteer.

*HB 2055, Consumer Protection Act, would remove the right of defendants to recover court costs in lawsuits. WRA supports retaining that right. 

*SB 6024 would toughen penalties for flash mob robberies, where thieves organize via social media to meet at stores and steal as a group. WRA has and will continue to testify in support.

*HB 2353 has a chance for approval. It would allow retailers to seek civil fines up to $2,500 for repeat trespassers, including shoplifters, who upset shoppers for a variety of reasons.

WRA supports new workers' comp reform bill

Public hearing Friday on further reform

WRA is supporting a bill this session that would remove wage benefits from workers injured on the job due to drug or alcohol abuse.

HB 2295 is sponsored by Rep. Liz Pike, R-Fern Prairie.

Under the bill, such an affected worker would remain eligible for medical benefits, but could not be paid while missing work, said Tammie Hetrick, VP of Retail Services.

"It's a step in the right direction of teaching employees to act responsibly," Hetrick said.

"The law would not apply for prescription drugs or if an employer permitted or had knowledge of alcohol and or drug use," Pike said on her website. "This bill was suggested by my Business Kitchen Cabinet."

The bill is scheduled for a hearing on Friday before the House Committee on Labor & Workforce Development.

Hetrick also wants to alert members to an informal public hearing in Tumwater on Friday regarding possible Retrospective Rating rules changes.

A change WRA supports would require Individual Retro participants to comply with certain Group Retro rules. These rules include working under a written safety plan and being subject to removal from the program after three consecutive years of excessive lost-time injuries.

A hearing about this proposal will be held beginning at 10 a.m. on Friday, Jan. 31 at the L&I headquarters, Room S117 at 7272 Linderson Way S.W. in Tumwater. A teleconference number is 866-499-3402.

Walgreens offers free flu shots in Spokane

Spokane-area Walgreens will be offering qualified individuals ages nine and older free flu shots between Friday and Feb. 7 during regular pharmacy hours, while supplies last.

The program is in cooperation with the City of Spokane, where there have been seven deaths as a result of flu-related illnesses this flu season. Free shots were administered today at a Spokane Salvation Army Community Center to people without insurance or who are underinsured.

"Helping people in our community stay healthy is what we do every day," Walgreens' spokesman Greg Thomas said. "This partnership is a way to give back to the community we live in."

Liias joins state Senate; his House successor chosen

Former state Representative Marko Liias has been sworn in to the vacant Senate seat of Paull Shin, who resigned recently for health reasons.

The Snohomish County Council then appointed Lillian Ortiz-Self to fill Liias' vacant House seat. She is a middle school counselor and member of the Washington State Commission on Hispanic Affairs. Shin served in the House from 1993 to 1994 and was elected to the Senate in 1998. These legislators represent District 21that includes Everett, Edmonds and Lynnwood.

Source: TVW

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.

UI insurance no longer mandatory for corporate officers

Under a new state law, corporations no longer pay unemployment taxes on corporate officers unless the corporation requests coverage for all of its officers.

Such a request must be approved by the state Employment Security Department. The new law applies only to corporations.

Click here to see answers to several questions about the new law. Corporations must apply by March 1 to continue uninterrupted coverage for all of this year.

Corporations that don't pay state unemployment taxes still must pay the full amount of federal unemployment taxes to the IRS.

Source: Employment Security        

Retailers urge Congress to lighten financial burdens of health care

The National Retail Federation's health care expert asked a Congressional committee this week to re-define full time employment in the national health care reform law to ease the financial burdens on business caused by the law.

Neil Trautwein, NRF's Vice President and Employee Benefits Policy Counsel, said the law's 30-hour per week definition should be changed to the common 40-hour definition.

"If asked, most Americans would identify full-time work to be 40 hours per week," Trautwein told the U.S. House of Representatives' Committee on Ways and Means. The variable hours common in retail are adding to the challenges of complying with the law and increasing the threats of layoffs that will only slow economic recovery, he said.

"If there is one thing our economy does not need, it is fewer jobs," Trautwein testified.

Trautwein championed H.R. 2575, the Save American Workers Act, which addresses redefining full-time worker as part of the Affordable Care Act. Click here to read his entire testimony.

Source: NRF

Safety tip: (one in a series)

OSHA injury reporting period starts next week

Many of  WRA's members must maintain annual accident logs for the prior year.  The Occupational Safety & Health Administration exempts many sorts of businesses from this reporting requirement depending on their risk class. 

Retail members with 10 or fewer employees are exempt from this duty, but WRA's larger retail and all automotive members are required to report. For further detail, go here to review a state list of exempt industry types.

If you must keep records, you should update the OSHA 300 form with 'recordable' incidents for all of 2013.  For a decision tree on what are considered recordable incidents, go here.  The next step would be to transfer the OSHA 2013 log (form 300) totals onto the OSHA Summary sheet (300A). 

The OSHA summary sheet, form 300A,will need to be posted from 2/1/2014 until 04/30/2014 on the safety bulletin board for all employees to review.  If you need forms go here.

The OSHA 300 form, a copy of the 300A form, and any other supporting paperwork such as copies of the Report of Accidents, should be kept in a binder in your office due to the privacy of information contained on some of that paperwork.  You need to keep five years of these forms on file (2008 and earlier forms can be tossed).

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.