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

Talk now to your elected officials and candidates running for office

By Jan Teague, President/CEO

In four months the Legislature will meet to toil over the state's budget shortfall.  It's a two-year budget.

About 2/3 of the budget is mandated spending by the state constitution or federal government.  Mandated spending includes basic education, debt service, retirement contributions,  Medicaid,  long-term care and developmental disabilities programs.  That leaves about 1/3 of the current budget to find any cuts in such programs as human services, higher education, the Department of Corrections and levy equalization.  It seems like slim pickings for cuts and a strong likelihood that new taxes will be the topic of conversation for most of the 2015 session. 

Governor Inslee has been quoted as saying he intends on giving teachers a cost-of -living adjustment because they haven't had one since 2008.    In some ways that is a small problem given its price tag is $321 million and the potential shortfall total is somewhere in the neighborhood of $3 billion to $5 billion.  The unions have thrown up an initiative that increases spending by $2 billion to reduce class sizes.  It will be on the ballot in November and if it passes, the state budget shortfall would be closer to $5 billion.

Over the recession years I have seen the legislature do a lot of creative funding shifts to patch up the state budget.  They have also made a lot of cuts that no one liked. This next session will be yet another year of seeing people turn red and blue over the ideas that will get tossed around to create a balanced budget.   

It will be our responsibility to weigh in where we need to on issues likely to increase retailers' costs.  I also think it will be our responsibility to tell our leaders we want policy decisions that keep our economy growing in jobs and productivity.  If that became the screen for any new state law or budget decision, we would have the best possible outcome for the state. 

One of my worries is that the tax on gross sales will become a target ( B & O) as well as an increase in the minimum wage.  Together these will dampen job growth and productivity and ultimately keep the state Legislature coming back year after year looking for new money in a shrinking economy.

If you get a chance to talk to your elected officials or candidates this fall when they talk about issues on their campaigns, be sure to voice your concern over these key issues.  We need to talk to our leaders and show them our stores.  There are very few who have ever been in business and they need to understand that it is not only job loss that is at stake, it might be your company's existence.

As families go shopping for school, Washington misses an opportunity

By Mark Johnson, VP Government Affairs

Across the nation families are busy finishing their back-to-school shopping.  New clothes, school supplies, etc. are all needed to prepare children to learn. 

Many states offer a back-to-school sales tax holiday.  These holidays have proven to be very popular.  Hard-working families can use a break when providing for their children.  It is too bad Washington State is not interested in giving our families and kids some relief. 

For several years now modest legislation has been introduced to allow a temporary sales tax holiday for back-to-school clothing and supplies for one weekend out of the year in August.  Unfortunately, the Governor and state legislators are unwilling to grant Washington families this small tax break at one of the most important times of the year. 

Other states are considering adopting sales tax holidays. Ohio is poised to enact a back-to-school sales tax free holiday.  It is time Washington State helped its families by giving them much needed relief from paying sales tax on back-to-school clothing and supplies.

L&I announces a series of rulemaking developments

Labor & Industries this week announced a series of updates and proposals related to rulemaking.

To address confusion among some customers, L&I is working on a project to make its Internet rulemaking updates available to smart phone and tablet users. For details and contact information, click here.

The department is beginning a review of current risk classifications and a study of possibly updating formulas and tables pertaining to Retrospective Rating members. More details are available here.  WRA's Vice President of Retail Services, Tammie Hetrick, will be participating in the rule making process and will provide updates as the work progresses.

L&I's self-insurance section is proposing rules changes related to circumstances where L&I might penalize a customer for unreasonable delays of benefit payments to injured workers. See documents 1, 2 and 3 for further details. 

Another project seeks to help make L&I's rules easier to understand and implement. Any changes would not change the calculation of rates, reporting requirements or how businesses are classified. See documents 1 and 2 for more background.

L&I also is considering changes to the state's apprenticeship system to bring it into compliance with federal Department of Labor regulations. See documents 1 and 2 for more information.

Source: L&I

Freedom Foundation paper exposes mandatory sick leave policies

A paper scheduled to be released today by the Olympia-based Freedom Foundation concludes that mandatory paid sick leave policies do not reduce the frequency of sick employees reporting for work or reduce turnover. Such policies often lead to price increases for merchandise and encourage union organizing, the paper concludes.

The paper reviews and critiques 10 of the most frequently-cited studies of mandatory sick leave laws, including the Seattle law. The report also has been informally reviewed by independent economists including Michael Saltsman, Research Director of the Washington, D.C.-based Employment Policies Institute.

Further conclusions in the report are that workplace illness is not a widespread problem and that employer support for such policies tends to be exaggerated.

Visit Freedom Foundation to review the paper. 

Daunting state budget challenges ahead outlined by Research Council, newspaper

It may still be summer, but a cold and cloudy financial climate for the state's 2015-17 biennium already is coming into focus in recent analysis from The Washington Research Council and in commentary by the Spokane Spokesman Review.

As noted here last week, the I-1351 class size initiative on the November ballot threatens to add further financial burdens on balancing the state budget on top of a state Supreme Court order for the Legislature to approve additional spending for education.

The Spokane paper then quickly commented upon the building financial challenge the Legislature will face beginning in January with the next regular session. Coupled with state employee labor contracts currently in negotiations and mounting state transportation needs, the Spokesman sees tough decisions ahead for the Legislature.

State spending has exceeded revenues the past nine years, the paper noted. An economic recovery from recession that took two years longer than past recoveries only heightens the Legislature's budget challenge, the paper noted. Despite economic recovery, the financial challenges for the Legislature, though distinct from those of the recession, will remain heading into next year.

Concluded the Spokesman: "The new Legislature will have some very difficult choices to make. As the political campaigns begin in earnest, voters should ask tough questions about how they expect Washington to meet all its obligations."

Sources: Research Council, Spokesman Review

State's temporary health care fix starts today

Beginning today, the state is offering consumers a temporary solution to address several problems that have surfaced with the Healthcare Exchange the past several months.

From today through Nov. 14, customers who have encountered problems enrolling or making premium payments through the Healthplanfinder will be allowed to enroll for coverage outside the state exchange either by selecting a different insurance plan with the same carrier or by changing carriers. This option will be available as the state works to correct software problems with the computerized enrollment system.

Despite the choice being offered, the state warned customers that some could lose credit for payments made toward deductibles or out-of-pocket maximums for their current policies. It also warned that current claims may not be covered if the consumer ends coverage offered through Washington Healthplanfinder.

For more details, visit The Seattle Times. 

Hearings scheduled regarding increases in safety violation fines

Labor & Industries has scheduled public hearings for companies that would be affected by proposed increases in fines levied for safety violations.

To testify in person:

Thursday, August 28, 2014, 9 to 11 a.m.
Enduris Training Facility
1610 South Technology Boulevard, Suite 100
Spokane, WA

Tuesday, September 2, 2014, 9 to 11 a.m.

L&I, 12806 Gateway Drive S., Tukwila

If you would like to view the current draft of the changes,  it can be found here.

 Tammie Hetrick, WRA's VP of Retail Services, has objected to the fine increases as an unnecessary financial burden on members.  She has recommended additional education to employers explaining how the premiums they pay to Labor and Industries also help fund the Division of Occupational Safety and Health (DOSH) and safety programs to help reduce workplace injuries.

State officials have said they want to increase fines in compliance with a 2012 federal act that aims to reduce workplace deaths and injuries by toughening fines for safety violations.

WRA encourages members to participate in the hearings to explain how they would be affected by higher financial penalties.

If you have any questions, please contact WRA Safety Specialist Rick Means at 360.200.6454 or rick.means@retailassociationservices.com

Seattle chamber mixer set for Sept. 24

The 10^th All-Chamber Business After Hours event is scheduled at The Foundry by Herban Feast beginning at 5:30 p.m. on Sept. 24. The host meeting facility is located at 3200 1^st Avenue S. in Seattle.

The Seattle Metropolitan Chamber of Commerce bills it as one of the region's biggest business networking events of the year. More than 350 participants attended last year.

To obtain directions, register and learn more information, click here. 

Safety tip: (one in a series)

Retaining mature workers might require minor workplace adjustments

You may have noticed that people are tending to work to a later stage in life. About 10,000 baby boomers in the United States will turn 65 every day until about the year 2030, according to the U.S. Census Bureau. 

"Older workers represent a never-before-seen opportunity for employers," said Mark Schmit, executive director of the Society of Human Resource Managers' Foundation. "In this knowledge economy the retention of older workers gives employers a competitive edge by allowing them to continue to tap a generation of knowledge and skill." 

This knowledge and skill can be shared and passed to younger workers. 

These mature workers also may have experienced physical changes that employers should address wherever possible. Such adjustments, courtesy of WRA's Safety Specialist Rick Means, could include:

*Providing step ladders with handrails to assist with balance. When stocking shelves, a step ladder can help an employee feel more secure with the ability to grasp a rail with one hand while working with merchandise.

*Managing overexertion by reducing overreaching to a minimum by making  workspace tools easier to reach.

*Setting computer screens to dark text on light background and increasing settings and browsers to larger text.  

*Raising lighting levels in stair wells, especially at the base and top of stairs.

Rick plans to address this significant topic more in future articles. He is available to members to help draw up safety plans and suggest topics for safety meetings. Contact him at 360-943-9198, Ext. 18 or rick.means@retailassociationservices.com 

Fundraiser scheduled for Sen. Tim Sheldon

Supporters of Sen. Tim Sheldon, D-Hoodsport, are organizing an election fundraiser on his behalf from 5:30 p.m. to 7:30 p.m. at the Olympic Flight Museum, on Sept. 17. The museum is at 7637 A Old Hwy 99 adjacent to Olympia Airport.

WRA has endorsed Sheldon's re-election effort. He has been a consistently strong supporter of WRA's legislative agenda with a 100 percent pro-WRA voting record.

The outcome of Sheldon's race in the 35^th district, including Kitsap, Mason and Thurston counties, will be critical to maintaining a moderate state Senate that understands the needs of retailers and votes to support their needs. A host committee for the event is in formation.

Contact Linda Matson, 360-481-3503 or lmatson@matsonassociates.com for more information.

WRA co-presents Tacoma small business forum

WRA is co-presenting a Washington Policy Center small business forum on November 14 at the Pacific Grill Events Center, 1530 Pacific Avenue in Tacoma.

The event is a great opportunity for small business owners and managers to meet policymakers, business leaders and elected officials to anticipate what's in store for the 2015 legislative session in Olympia. The forum is scheduled from 11:30 a.m. to 1 p.m.

Click here to learn more and register.

WRA members can get discount at employment seminar

WRA members are eligible for a 20 percent early online registration fee discount to an annual labor and employment seminar scheduled in Seattle on September 9.

Attorneys from the firm Lane Powell will address a range of topics including employment law updates, managing employees with mental disorders, use of technology and complying with drug use following voter approval for marijuana use in Washington State.

The all-day event is scheduled for Motif Seattle's Emerald Ballroom, 1415 Fifth Avenue in Seattle. Click here for further details including speakers. Contact Kelsey Lamon, 206-223-6005, lamonk@lanepowell.com with any additional questions.

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. Visit here to enroll. Shipping customers with further questions are encouraged to call Partnership at 800-599-2902. You also may click here to receive a free rate analysis to help with your shipping decision.

Save the date for the 2014 business fair

This year's annual free small business fair will be held on Sept. 27 at Renton Technical College.

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