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

Challenges emerge to Seattle minimum wage law

By Jan Teague, President/CEO

I spoke this week with former SeaTac City Council member Rick Forschler who is leading a statewide initiative against local minimum wage increases. His is the latest of several responses to the Seattle City Council's vote earlier this month to raise the city's minimum wage to $15 within seven years.

Forschler's Initiative 1358  (The Fair and Uniform Minimum Wage Initiative) would make all minimum wages across the state uniform and prevent local municipalities from becoming exceptions to the rule by passing much higher wages.

Forschler said his initiative could make it onto the November, 2014 ballot if his organizers can gather the needed 246,372 signatures by July 3.

Forschler is asking for donations.  He's trying to stop raises in the minimum wages of other communities.  It will cost money to gather the required minimum number of signatures to qualify for the ballot.

Forschler has retained a consulting firm to oversee the initiative campaign. Those interested in helping in the fundraising effort are urged to contact Sustainable Wages Seattle as soon as possible. Larger donors are urged to contact Forschler directly at 206-419-5170.

The window of opportunity to place this issue before the people this year is narrow, and it is closing fast.

Forschler said polling results he has obtained show that people are willing to change their minds on the minimum wage issue if they understand its negative impacts on job opportunities and the likely layoffs

In a separate action, anti-tax activist Tim Eyman is gathering support for Initiative 655 (The Fair and Uniform Minimum Wage Initiative) to the Legislature aimed at making minimum wages uniform across the state. This, too, would prevent individual municipalities from further tweaking with exceptions to a uniform minimum wage across the state. He also needs to gather 246,372 signatures but has until Jan. 2, 2015 to submit them.

If the Legislature fails to address Eyman's initiative after convening again in January, I-655 could go on the ballot as well on Nov. 15, 2015. The Legislature also could offer an alternative that also could appear on the November, 2015 ballot.

There are at least two other attempts in Seattle to enact charter amendments on a 2015 ballot item that would overturn the city council's action. The city charter allows for charter amendments sought by the public to be decided only in odd-numbered years, so next year is the soonest that could happen within Seattle city limits.

In a very short time, this is an issue that has spread from a lively debate within Seattle to a statewide debate. Judging from the public's reaction, it seems clear, too, that there will be some unintended consequences that result from the Seattle Council's action.

Visit the Seattle Times to read how quickly this issue has spread and here for how some businesses are already reacting in negative ways.

Higher minimum wages will boost automation, new report says

There's more talk that among the outcomes of higher minimum wages such as Seattle's $15 an hour will be more automation.

Robots and the like are expected to increasingly be competing with people for wages. Microsoft founder Bill Gates is among those who have warned about some of the unintended consequences of spikes in the minimum wage.

There are even fast food restaurants that have discovered machines that can build hamburgers and take and fill coffee orders without the need for humans.

The Washington Policy Center includes a new commentary on this trend and a link (subscription required) to the full Wall Street Journal article that recently re-fueled the discussion.

A view from Oregon regarding the $15 minimum wage

Among the mushrooming voices reacting to Seattle's new $15 minimum wage is Elizabeth Hovde, who writes a regular weekend column for the Portland Oregonian newspaper.

This author looks beyond the political entertainment the issue has provided in Seattle and Washington State and quotes from economic studies that years ago warned of the unintended outcomes of spiking wages at a rapid pace.

In short, economists for years have warned of drying up entry-level employment opportunities, rising prices, layoffs and relocations and closures of some businesses as a result of sharply hiking the minimum wage. The current $9.32 floor for the minimum wage across the state already is the nation's highest state minimum wage.

Click here to read Hovde's column that appeared this past weekend.

Source: Oregonlive.com

Could gas taxes increase significantly?

By Mark Johnson, VP Government Affairs

Talks and rumors about a state carbon tax are swirling.  Governor Inslee has been focused on lowering carbon emissions for some time. While clean air is important, the state must be careful to avoid taking steps that will set back the economy.

Some are predicting that the tax could add over $1.00 per gallon and boost the price of a gallon of gasoline to a new high of $5.

Retailers care a lot about the cost of gasoline and diesel fuel.

There are a couple main reasons related to prices and sales volume.

The more consumers have to pay for fuel, the less they have in their pockets for groceries and other goods.  Secondly, the more retailers have to pay to have the goods they sell delivered by truck to their stores, the more they have to charge for those same goods.  In the end consumers get hit twice. 

The burden, of course, is heaviest on lower income citizens who can least afford price increases.

As our economy struggled to reach a full recovery from the recession, I urge caution in efforts to raise our gas tax to lower carbon emissions.

State revenue collections beating predictions

State revenues for the month ending June 10 were $60.5 million, or 3.4 percent higher than what was predicted in February, according to the latest state revenue report.

Tax payments to the state from retailers for the one-month review period were up 8 percent compared to the same time a year ago.

Retail sectors showing the higher percentage gains were:

*Electronics and appliances, up 15.2 percent

*Food and beverage stores, up 15.1 percent

*Online retailers, up 14.9 percent

*Furniture and home furnishings, up 9.5 percent.

No retail trade sectors showed year-over-year declines in monthly tax payments to the state.

In other highlights from the report:

*The state economy has added 21,800 jobs since a February revenue forecast. That is 2,500 more new jobs than the number forecast in February.

*The May statewide unemployment rate was 6.3 percent, the same as April. Last year's annual statewide unemployment rate was 7.4 percent, down from 8.1 percent in 2012.

Look here under "publications" to locate the June state revenue report.

Source: ERFC

Thurston bag ban almost in effect

In just under three weeks, retailers in Lacey, Olympia, Tumwater and unincorporated Thurston County will be prohibited from using most plastic shopping bags available on the market today.

The ban to go into effect on July is aimed at plastic carryout bags 2.25 millimeters or thinner that normally are distributed to shoppers. Thicker plastic bags are considered reusable and will have no restrictions.

There are numerous exceptions to the law. Plastic used to bag bulk items, produce and meat is exempt. Also exempt are plastic bags used for dry cleaning and garbage and for wrapping newspapers. Finally, bags used to wrap prepared take-out food are allowed for public health reasons.

All vendors are required to charge a minimum of five cents for paper carryout bags that are one-eighth barrel or larger, which is the size of a typical grocery bag. Retailers can keep the entire fee to help defray the cost of the more expensive paper bags.

WRA favors greater use of recycling and the use of cloth reusable bags as an alternative to plastic bag bans. The current patchwork of bans in various communities throughout the state reduces choices for consumers and presents a confusing and expensive network of exceptions for retailers with multiple store locations.

Go to www.ThurstonSolidWaste.org/plastics to read the ordinance, tips to encourage customers to bring a bag to the store and guidelines for safe use of reusable bags. The site also allows retailers to download signs to remind their customers about the ban.

U.S. House targets Saturday mail service

Congress again is considering ending first class Saturday mail service as it did more than a year ago.

The National Retail Federation (NRF) has informed its member state retail associations that the House of Representatives is again considering cutbacks in Saturday service to pay for reauthorization of a highway bill and to fund an expected shortfall in the Highway Trust Fund.

The Obama administration and key Congressional leaders have ruled out an increase in the gasoline tax to fund the highway bill and is looking for an alternative funding mechanism, according to NRF.

The stop gap budget approved by Congress in April, 2013 averted the last threat to Saturday mail deliveries.

Though the outcome of the proposal to cancel Saturday deliveries is hard to predict, NRF lobbyists note that opposition to the idea remains strong in Congress.

WRA will update members as soon as possible after Congress decides what to do.

Westlake Center GM writes in support of national sales tax reform

As retailers continue to ask the U.S. House of Representatives to complete a needed overhaul of national sales tax laws, the General Manager of downtown Seattle's Westlake Center has joined in the debate.

GM Sherry Lawson composed a recent op/ed piece in the Seattle Times outlining the reasons the House should follow the U.S. Senate's lead last year in approving the Marketplace Fairness Act.

It would require all online retailers to collect sales taxes that are owed but too often, not paid as they are by brick and mortar stores. The current practice places traditional brick-and-mortar stores at a competitive disadvantage and shortchanges governments of existing taxes that are owed, but not paid because they go uncollected.

If collected, governments across the nation would collect $23 billion in new, owed revenues and an estimated 1.5 million new jobs could be created in the next decade, according to the article.

WRA supports passage of the Marketplace Fairness Act because it would make for fairer competition between brick-and-mortar and online retailers and result in new government revenues that could hold tax increases at bay while being used for cash-starved essential services such as education.

Click here to read Lawson's opinion piece that appeared last week.

Source: Seattle Times

Safety tip: (one in a series)

Know teen work rules before summer hiring

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 that 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 or 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 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.

State tourism call center established

The Washington Tourism Alliance has launched a toll-free call center for visitor information and help.

The ExperienceWA call center is open seven days a week, from 8:30 a.m. to 5:30 p.m., at 1-800-544-1800. Exceptions are on Thanksgiving, Christmas and New Year's Day.

Visitors also can e-mail the center at tourisminfo@watourismalliance.com to answer travel planning questions. The operation is supported by a grant the state received last year.

The state tourism industry established the non-profit alliance after the legislature eliminated tourism funding. Visit www.watourismalliance for more information.

Shippers save thousands of dollars with WRA partner

Shipping customers saved an average $3,100 in 2013 by shipping with PartnerShip, a partner with WRA.

Enrolled WRA members can save up to 27 percent on select FedEx services.

WRA encourages all members to explore this service. Visitwww.PartnerShip.com/99WRA to enroll. Shipping customers with further questions are encouraged to call Partnership at 800-599-2902 or e-mailsales@PartnerShip.com. You also may click here to receive a free rate analysis to help with your shipping decision.

Help elect pro-retail candidates by donating to the PAC

By Mark Johnson, VP Government Affairs

The election season is upon us.  This is an important year with all of the state House members and half of the state Senate up for election. 

WRA's Retail Action Council Political Action Committee, or as we call it the RAC PAC, will be a major player in helping elect pro-retail candidates to the legislature.  Our process is very involved and thorough to ensure the greatest chance for success. 

First, we are diligently working on a voting record for all current members of the legislature.  We select approximately 10 bills per chamber that we were involved in and score the legislators on whether they voted with us or sponsored something we liked or didn't like.  We then combine the 2014 scores with the 2013 scores for a biennium or two-year total.  This gives a better representation of the legislators overall support or lack thereof.  Once the voting record is done the RAC PAC will make its first round of endorsements. 

Surveys will be sent to all candidates who don't have a voting record and who have filed to run for the legislature.  After scoring the surveys we will decide which candidates to interview based on their scores and the viability of their districts to elect them.  Recommendations will then be sent to the RAC PAC for consideration of endorsements and contributions.

RAC PAC contributions are very important to help the pro-retail candidates to get the word out.  Yard signs, letters, websites, radio, bill boards and TV all cost money.  A contested House race can run anywhere from $100,000 to $300,000 and an average Senate race can cost upwards of $500,000. 

Individual donation limits to candidates this year are $950 per election, so for the primary and general you can give $1,900.  Contributions to PACs are unlimited.  We can also accept corporate dollars.

In order to secure a pro-retail legislature it is critical that contributions to the RAC PAC be made.  If you are in a position to donate please mail a contribution made out to:  The Washington Retail Association Retail Action Council PAC, P.O. Box 2227, Olympia WA  98507-2227.  We appreciate all of the WRA members who have already donated.

If you would like to discuss giving opportunities please give me a call directly:  360-943-9198 ,  Ext. 15  We appreciate your serious consideration of this very important component of our political program.

L&I to conduct hearings on penalty revisions

Labor & Industries has scheduled three June public hearings to discuss changes in how it calculates penalties for safety violations.

The hearings are being held to ensure that Washington State penalty calculations mirror recent changes in the way federal officials at the Occupational Safety & Health Administration calculate penalties.

Company safety representatives are encouraged to attend one of the following hearings:

* June 17, at L&I's Tukwila Office, 9:00 a.m. to noon.

* June 19, Enduris Traiing Facility in Spokane, 9:00 a.m. to noon.

* June 24 at L&I's HQ in Tumwater, 9:00 a.m. to noon. 

Save the date for the 2014 business fair

Organizers have settled on Sept. 27 for this year's annual small business fair at Renton Technical College.

WRA is an annual exhibitor at the fair, where speakers address numerous seminars on starting and growing a small business. Admission is free.

Look for updates as they occur at www.bizfair.org. Also, look for periodic announcements on the Business Fair Facebook page.