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

The Middle Class

By Jan Teague, President/CEO

Who are middle class workers? 

It's those who earn between $25,000 and $100,000 per year.  If there are two people making up those numbers, they can be considered middle class because it's largely the standard of living that creates the middle class.  The middle class does encompass the majority of voters, so it's important for elected officials to keep in mind what these people expect and need from their government. 

I know a lot of my retail members fall into this middle class income bracket. A number of the people who own small businesses have been able to keep things going through this recession.  A number of them didn't make it.  They just could not weather the drop in sales for their business.  Cash flow, low margins on a lot of their products and changes in various laws all combined in a piling on effect and forced them to close.  The people these small businesses employed lost their jobs and the nation reeled with high unemployment. 

Governments are trying to spur small business growth.  These wage earners make between $34,392 and $74,907 in their first year of business.  It largely depends on what the special skills are for the business.  If the business is sales they make between $45,000 and $104,762. 

The cash flow balancing act is huge for retail, which is largely event and season driven.  People shop at certain times, so everything has to be ordered ahead of time to make sure that there is enough inventory to cover customer interest.  It's an investment without thinking about the staff it takes to keep the doors open. 

As I think about these federal, state, and local proposals to dramatically increase the minimum wage, it occurs to me that many of these small businesses in the middle class will be negatively impacted.  The unintended consequences of moving money around seems to me to be a very disruptive idea impacting the middle class small business entrepreneurs who employ a lot of the minimum wage workers. 

Simply look at the gross numbers for a raise to $12 per hour.  That equates to $6,000 more in expenses per year per employee.  A raise to $15 per hour equates to $12,700 per year (including an increase in the employer funded side of social security).  There is a tipping point for a small business owner trying to figure out if it will be worth it to keep going or to close before all of their life's savings have gone into cash flow expenses. 

I honestly see this minimum wage increase as a shifting of money from one worker (in the middle class) to another. 

Middle class members who don't own a business will be paying higher prices, too.  It's complicated, but the ripple impact of the lowest wage pressures all other wages.  Costs will go up.  There is no doubt about it. 

Independent contractors bill will cost retailers and the state

By Mark Johnson, VP Government Affairs

I testified on Monday against HB 2334 that would impose immense new costs and liability on businesses both large and small.

The bill would put in place a new test for determining the job status of independent contractors. It would essentially force all independent contracts to have to "prove" that they are what they say that are or be declared employees of the company or companies with whom they have contracts.

Not only would retailers assume much higher costs for the several hundred thousand independent contractors who work throughout the state. The costs to the state Department of Employment Security and the Department of Labor and Industries to implement such a law would be exorbitant. Having to explain the law and classification to hundreds of thousands of independent contractors, then having to audit, investigate, litigate and respond to appeals would cost these cash -strapped agencies precious resources. And, to what end?

If the intent of the bill is to go after the "underground economy," I suggest a more targeted approach rather than tossing out the current system that has worked for the vast majority of independent contractors for years.

WRA backs worker comp reform bill

Tammie Hetrick, WRA's VP of Retail Services, testified in support Monday of a bill that could save employers and the state millions of dollars.

SB 5125 would change the definition of an occupational disease so that it would have to arise out of and in the course of employment. It would disallow claims now honored that are related to injuries an employee received before they were injured on the job, Hetrick explained. The bill also would reduce time allowed to the employee to file a claim from two years to one.

Such changes would reduce insurance premiums for employers and save money for the state's workers' compensation system, Hetrick said.

Click here to read more about the bill. 

Minimum wage increase would burden retailers heavily, new report shows

Raising the state minimum wage, which WRA opposes, would place an especially heavy financial burden on retailers, a new Washington Research Council analysis shows.

Statewide, retail trade and food services represent two of the top three minimum wage sectors, based on data from the Washington Employment Security Department. Analysis of 2012 data show that nearly 22 percent of King County minimum wage jobs were in retail; it was 18.8 percent on a statewide basis.

In "County Distribution of Washington's Minimum Wage Jobs," the Research Council concludes: "An increase in the minimum wage to $12 statewide, as has been proposed in the Legislature, or to $15, as has been proposed in Seattle, would be an especially heavy burden on employers in the accommodation and food services, retail, and agricultural sectors."

At $9.32 an hour, Washington State has one of the highest minimum wages in the country with annual automatic inflators. These new annual burdens put pressure on employers either not to create new job opportunities or to lay off employees. These pressures especially work against inexperienced teens trying to enter the workforce and seniors trying to supplement limited retirement incomes.

Click here to review the entire Washington Research Council analysis of the impact of raising the minimum wage.

Last week, the National Retail Federation warned that President Obama's move to raise the federal minimum wage would hurt prospects for economic recovery and job creation. Instead, NRF called on Congress and the President to remove barriers to job creation.

Sources: Washington Research Council, NRF

Legislature nears session's halfway point

Today is Day 24 of the 2014 legislative session leaving a week to go to the halfway point before the scheduled March 13 adjournment.

It is less than a week before a deadline to read in reports from House and Senate fiscal committees. Also upcoming is a Feb. 18 deadline to consider bills in their house of origin though bills deemed "necessary to adopt the budget" may be considered until the last day of the scheduled session.

WRA continues to monitor scores of bills that could leave an impact on the retail industry.

Here is a summary of key bills and status updates:

*WRA has testified in favor of  HB 2295 that would limit insurance benefits for on-the-job injuries caused by alcohol or drug use.

*WRA opposes HB 2338, a statewide bill for mandatory paid vacation leave. There seems to be very little sentiment for the Legislature to pass the bill this year.

*WRA supports SB 6024 that would attach punishment for those convicted of organizing mass retail theft via social media. Momentum that has built for the bill since last year improves its chances of winning passage this year.

*WRA has testified in support of HB 2591 and SB 6307, which would pre-empt local governments from approving "living wage" pay increases that threaten to create a patchwork of confusing ranges of wages, depending on retail store location.

*WRA is opposing HB 2155 in its current form, to discourage liquor thefts from stores. Its definition of acceptable losses is vague and threatens retailers with burdensome regulations. WRA is working to hold off penalties until a clear pattern of thefts has been documented over time.  

*WRA is opposing HB 2238 that would require mandatory paid vacation leave. Support has not been strong for the bill this session.

No transportation tax package likely this session, key Senator says

A key state Senator this week said that despite more than a year of private negotiations, it appears unlikely the 2014 Legislature will vote on a statewide transportation improvement package.

Put simply, in an election year and with polling showing a gas tax increase is unpopular, legislators are not willing to campaign including a platform of higher taxes, said Senator Curtis King, R-Yakima, co-chairman of the Senate Transportation Committee.

Current thinking is to present such a tax increase to voters after the fall elections, according to a Washington State Wire report. Read the story here.

Source: Washington State Wire

NRF objects to new ambush election rule

The National Retail Federation today announced its objection to a proposed National Labor Relations Board rule that would severely limit the ability of employers and employees to decide the merits of union elections.

According to NRF, the new rule would shorten the average time between an election petition and the vote from 38 days to as short as 10 days. NRF said the proposal would alter the union election process to favor unions by limiting employers' due process rights to discuss such proposals with employees.

"The shorter the election, the less time employers and employees have to communicate about the general disadvantages of unions or about a specific union attempting to organize the workplace," NRF said.

Click here to read a full NRF announcement about this development. Click here to read the entire proposal. A public comment deadline regarding this proposal is April 7, 2014.

Members of WRA or NRF are urged to contact Kelly Knott, NRF's Federal Government Relations Director, with questions or comments. Contact her at KnottK@nrf.com or at 202-626-8110.

Walgreens offers free flu shots in Spokane

Spokane-area Walgreens will be offering qualified individuals ages nine and older free flu shots until  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."

New hope for immigration reform

Immigration reform advocates have voiced renewed hope in recent days following the release of acceptable legislative standards by the U.S. House leadership.

The new set of reform principles would require unauthorized immigrants to admit guilt, live on probation, pay fines and meet conditions to maintain legal status including learning English.

Advocates consider immigration reform a linchpin in ensuring an adequate flow of qualified candidates in several job categories including high technology, agriculture and retail. They also believe a reformed immigration system will stem the current problem of illegal immigration into the U.S.

The U.S. Chamber of Commerce today announced it was preparing a letter to Speaker of the House John Boehner urging him to move an immigration reform bill for passage this year. The chamber invited business organizations to join in signing the letter. The chamber asks interested parties to respond to David Alim, the Chamber's Labor and Immigration coordinator, at 202-463-5824 or at dalim@uschamber.com by Feb. 19.

While there is no firm timetable in Congress for action on immigration reform, WRA is in regular contact with Immigration Works USA, a national nonprofit organization dedicated to reforming immigration law. Its President, Tamar Jacoby, called the new House principles released last week "a critical first step" in obtaining Congressional agreement on a reform bill.

Visit Immigration Works for more information on the reform debate.

Source: Immigration Works

House acts on health care reform bill

A U.S. House committee Tuesday approved a bill that would limit the number of employees who qualify for national health care coverage.

The current standard considers a 30-hour-per-week employee as eligible, but H.R. 2575 would change the standard to the traditional 40-hour-per-week standard. The vote by the House Ways and Means Committee is considered an important first step in a process of Congressional consideration of changing the full-time definition.

WRA and a coalition of businesses including the National Retail Federation support  H.R. 2575. To review testimony on behalf of the bill, click here.

In a conference call on Tuesday, WRA learned the House could take action on the bill as soon as March. But, an NRF spokesman warned that Congressional politics on health care reform currently is uncertain.

The nation's expanding health care burden concerns retailers who often must lay off employees or withhold hiring due to the additional expenses required from the mandates. Click here for a list of committee members to contact if your support the reform called for in the bill.

Source: NRF

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        

Pre-holiday shopping increased last year, new report shows

Retail trade purchases increased 5.4 percent statewide from July through September last year, a new Department of Revenue report shows.

The "retail trade" category includes common retail purchases but excludes sales in industries such as manufacturing and construction. State taxable sales figures increased 7.6 percent for the same period when auto sales and construction-related spending were included, Revenue reported.

Click here for a county-by-county breakdown of results for the review period. Online retailers, food and beverage stores and home furnishings stores were among the leaders in percentage gains in sales, according to the state report.

Source: Revenue

Safety tip: (one in a series)

CPR now includes defibrillator training

CPR training these days comes with an added feature; training in the use of AEDs or Automated External Defibrillators.

These portable electronic devices come complete for use in an emergency and 'talk' you through the steps, guiding you all the way through proper operation.  Whether you have one in the store or not, you could find yourself in a location with one. It's important to understand its operation and use.

There is also a second-option CPR method of just doing chest compressions instead of the combination of mouth-to-mouth breathing and compressions.  Doing just chest compressions requires more compressions per minute.  Performing only the compressions is a way to keep the blood circulating and getting some oxygen to the brain.   Although the lungs don't get as much air as in the mouth-to-mouth method, the compressions do cause the lungs to 'breath' a little, allowing some oxygen to enter the blood system.  You can still do the combination of breathing and compressions if you are comfortable with that method.  

WRA staff recently took a free CPR/AED class offered by Medic One. Rick Means, WRA's Safety and Claims Administrator, suggests giving your local Medic One/Fire Department a call to arrange for training by an Emergency Medical Technician.

WRA employs Means 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.