Newsletter November 3, 2022

IN THIS ISSUE

POLICY

Actuaries predict Washington’s Long Term Care Program likely to remain solvent into 2098

COVID

ON THE LOCAL FRONT

POLITICAL NEWS

WR signs on to coalition letter in hopes of avoiding rail strike

RETAIL THEFT & PUBLIC SAFETY

SAFETY

Avoid box knife injuries with proper use this holiday season

Venue change for Thurston Chamber’s November 9 Forum

Washington State Attorney General, Bob Ferguson, and Renée Sunde, President/CEO of WR, will speak on the timely topic of crime impacting the retail industry at the Thurston County Chamber of Commerce forum luncheon on Wednesday, November 9.

The Chamber luncheon will be held at the Indian Summer Golf & Country Club, located at 5900 Troon Lane SE, Olympia, Washington 98501

The event begins at 11:30am with meal service at 11:45am and program at noon.

For more information, contact Jessica Houchin at the Thurston Chamber at jhouchin@thurstonchamber.com.

Join us for our 2022 Annual Meeting on November 15

2022 has been an impactful year for the retail industry. As Washington retailers have continued to navigate the many challenges and uncertainties of the past year, the association has been laser-focused on providing valuable resources and strong advocacy for our members and stakeholders.

WR’s virtual annual meeting is November 15 from 11am-12pm PST. Register now to hear from the WR Executive leadership team as they discuss trends, top-priority issues, and resources available to WR members.

Special guest, economist Dr. Bill Conerly, will provide a real-time update on Washington’s economy as we head into 4th quarter. His presentation will offer retailers important insight on preparing and adapting their businesses by taking a “flexible stance” in facing the economic uncertainties ahead.

Dr. Conerly is a Pacific Northwest economist with a global reputation. As a consultant, he connects the dots between the economy and business with clients ranging from Fortune 100 corporations to local small businesses. He is also a Senior Contributor to Forbes and has spoken to over 1400 business audiences around the world.

DR. Conerly has authored two books, including The Flexible Stance: Thriving in a Boom/Bust Economy and Businomics, He has also been interviewed on PBS, CNN and CNBC, and quoted in the Wall Street Journal, Fortune Magazine, and USA Today.

The event is free to members, potential members, stakeholders, and retail partners.

For more information, contact Jessica Tingle by phone at (360) 846-2447, or email her at jtingle@washingtonretail.org.

Actuaries predict Washington’s Long Term Care Program likely to remain solvent into 2098

In 2019, the Legislature passed HB 1087 authorizing a Long-Term Care Program (LTCP) funded by a 0.58% tax (called “premiums”) on all employee earnings. The payroll tax was scheduled to take effect on January 1, 2022. However, due to questions regarding eligibility and long-term solvency, the Legislature delayed the payroll tax until July 2023 and authorized an independent actuarial analysis of the program.

The analysis released last week predicts the program will likely remain solvent into 2098 under the 0.58% authorized payroll tax level. It carefully states, “We estimate WA Cares Fund will require a level premium assessment on gross wages between 0.52% and 0.63% for the Baseline analysis to cover program expenditures over the 75-year period….”

The analysis examined a broad range of scenarios and found that, under most, the program would remain solvent under the 0.58% payroll tax. However, the analysis also reveals certain factors that could lead to higher payroll tax levels, above 0.63%, over the 75-year period. Those factors include lower wage growth, lower overall employment levels, higher inflation, and lower investment earnings.

The payroll tax funds the Washington Cares Fund, which will provide up to $36,500 in long-term care benefits for eligible recipients. Under current law, the payroll tax is scheduled to take effect in July 2023, with benefit payments beginning in 2026.

COVID restrictions have ended for retailers

The declaration of the statewide COVID-19 emergency originally enacted on February 29, 2020 has officially ended. Restrictions on retailers and many other businesses in Washington were lifted on October 31. Governor Inslee made the announcement last month and retailers can now prepare for a return to a more normal holiday shopping season this year.

Here are links to the specific proclamations that ended on October 31:

20-05.1 - Terminating the COVID-19 State of Emergency
20-25.20 - "Washington Ready" Termination of Emergency Proclamation
21-14.6 - COVID-19 Vaccination Requirement Termination of Emergency Order
21-08.2 - Safe Workers Terminating Emergency Proclamation
20-83.3 - Restrictions on Travelers Termination of Emergency Proclamation
20-64.6 - Public Records Act - Contact Tracing -- Personal Information Termination of Emergency Proclamation
20-43.11 - Office of Financial Management, State Human Resources Division - Annual Leave and Pay Procedures Termination of Emergency Proclamation
20-78.1 - Safeguarding Public Trust and Stability in Local Health Jurisdictions Terminating Emergency Proclamation
20-09.5 - K-12 Schools Termination of Emergency Order
20-12.6 - Higher Education Termination of Emergency Proclamation
21-05.2 - Children and Youth Mental Health Crisis Termination of Emergency Proclamation

The national emergency declaration is one made by the President of the United States, and as of now, the President’s national emergency declaration is not set to expire until March 2023. The HELSA emergency rules, however, will remain in place after October 31. The emergency rules are in effect when there is a “public health emergency” for an infectious or contagious disease at the state or national level.

Preparing for the next wave of COVID-19

As the holidays approach, so does the respiratory virus season. With in-person work and gatherings of friends and families, bolstering protection against flu and COVID variants is vital.

Reports of increased flu cases and hospitalizations are due in part to a low flu season over the past years as people stayed home and masked when in public. "All of our immunity is down," said CDC Director Dr. Rochelle Walensky during a U.S. Chamber of Commerce virtual presentation this week. "The most important thing you can do for both COVID and for flu is prevention, so getting your COVID-19 vaccine, getting your influenza vaccine—both critically important in terms of prevention."

Vaccines reduce the severity of illness and death for both the flu and COVID. Without reducing their severity in our communities, a wave of cases could easily overwhelm hospitals that are both short on beds and experiencing healthcare worker shortages.

Walensky suggests that businesses should encourage their employees to get vaccinated and ensure workplaces have good ventilation systems to help filter out viruses.

Businesses can find educational resources on the Infectious Disease Society of America and CDC websites.

Seattle Office of Labor Standards announces suspension of COVID gig worker protections

As of November 1, 2022, the Seattle Office of Labor Standards has suspended two temporary COVID-related protections for gig workers.

The Gig Worker Premium Pay Ordinance took effect on June 26, 2020. Gig companies covered by the ordinance are no longer required to add premium pay for every order. Companies will still be required to inform gig workers of their rights for a 3-year period, and workers will remain entitled to premium pay accrued before November 1, 2022.

Similarly, the Gig Worker Paid Sick and Safe Time Ordinance, which took effect on July 13, 2020, is also suspended. This ordinance covered both transportation network companies (like Lyft and Uber) and food delivery network companies. Covered workers can continue to accrue and use paid sick and safe time for another six months (until April 30, 2023). As with the premium pay ordinance, the covered firms are required to inform of their rights for another three years.

The suspension of these ordinances is in alignment with the announcements by Governor Inslee and Mayor Harrell that the state and city COVID states of emergency would end after October 31, 2022.

WR presents at Chamber Executive Conference

“Embracing Transformation” was the title of the 2022 Washington Chamber of Commerce Executive Conference held in Tacoma last week. WR’s Mark Johnson, Senior Vice President of Policy and Government Affairs, and Rose Gundersen, Vice President of Operations, both presented during the WR-sponsored Friday morning breakfast.

Johnson discussed legislation and efforts to increase public safety and thwart retail theft and organized retail crime. Over $2.7 billion is stolen annually from Washington merchants, according to the Retail Industry Leaders Association.

Many of these retail crimes are becoming increasingly dangerous—even lethal. Employees and customers are endangered, as well as the thieves themselves. Law enforcement is often underfunded and often lacks the tools needed to do their jobs. Additionally, they aren’t supported by existing laws, such as restricting their ability to pursue suspects reasonably. Johnson said a “multi-pronged” approach was needed to reverse the trend. No one strategy will solve the problem. Instead, an array of tactics should be deployed, including state funding for a statewide ORC Task Force.

Gundersen discussed promoting retail workforce training and how the work aligns with WR’s justice, equity, diversity, and inclusion (JEDI) principles. She pointed to the success of House Bill 2019, passed during the 2022 Session, which requires coordination of work to build the infrastructure of Washington state-based retail careers and workforce education. Also highlighted was our partnership with the NRF Foundation RISE Up program developed by retailers. RISE Up’s four certifications are ideal for students, entry-level and second-chance job seekers to further their confidence and upward mobility. These certifications offer trainees skill training and certification at a reasonable price in person, online, or hybrid.

The conference was well attended by chamber executives from around the state, including 0Bellingham, Vancouver, Clarkston, and the Tri-cities.

WR has long been a partner with our local chambers of commerce, who genuinely have the heartbeat of main street America in their best interests.

WR signs on to coalition letter in hopes of avoiding rail strike

As of this morning, six of the twelve rail unions have ratified their agreements with the railroads. However, ongoing concerns remain regarding the recent rejection of the contract by the Brotherhood of Maintenance of Way Employees Division of the International Brotherhood of Teamsters (BMWED), and the hold out by the two largest unions (BLET and SMART-TD). The National Carriers’ Conference Committee (NCCC) and the American Association of Railroads responded to the BMWED situation.

WR signed on to a coalition letter to President Biden and key administration officials encouraging them to continue working with the parties to get the contracts ratified.

Several press reports have previously been published regarding the ongoing potential for a strike when the status quo ends in the middle of this month:

Railroads reject sick time demands, raising chance of strike, AP (10-20-2022)
Renewed threat of rail strike has supply chain managers ramping up contingency plans, CNBC (10-20-2022)
Midterm Elections First, Rail Strike Later, Wall Street Journal (10-20-2022)
Railroads reject latest proposal from third largest union, as strike date looms, CNN (10-22-2022)
Railroads reject demands from holdout union, raising odds of strike, Fox (10-21-2022)
Second rail union rejected Biden deal over lack of sick leave, Fox (11-1-2022)

Five area cannabis shops “rammed and robbed” in the past weeks

A marijuana business in Olympia was rammed and ransacked early Saturday, October 29. It was one of three area shops purposely broken into by a vehicle in the last seven days.

The method was the same each time: A stolen car plows through the front entrance of a pot shop, destroying the storefront while leaving shattered glass and scattered debris throughout the store. Masked thieves rush in, ransack the place and flee in another stolen car.

This “ram and rob” type of theft happened five times in the past week in the South Sound area, with the latest break-in occurring early Saturday morning at The Green Lady, a West Olympia business.

The thieves got away with hundreds of dollars in cash and product while causing thousands of dollars in damage.

Video of the Olympia incident showed the same events as a similar incident in Tacoma just a day earlier. In that case, however, multiple thieves exchanged gunfire with a security guard before fleeing the scene. Tacoma police suspect one of the thieves was shot.

Installing steel bollards or wire gabion cages filled with rocks can significantly reduce Ram-and-rob incidents. More information on perimeter protection is available on the WR resource page.

Deli mart owner injured by shoplifter

When thieves steal from a large corporate retail store, the financial impact on a single employee is negligible, and the loss is known as “retail shrink.” However, when a thief steals from a 76-year-old widow, the theft may impact her livelihood and ability to put food on her table.

Last week, Young Kim paid the price for defending her business by attempting to stop a repeat shoplifter. It was the man’s fourth theft from Kim’s business—apparently her tipping point. When she intervened, the man shoved the 5-foot-4 deli owner to the ground, fracturing her wrist and breaking her hip. The criminal got away, and Kim is now recuperating at home after hip replacement surgery due to her injuries.

Small businesses like Kim’s cannot afford private security or a loss prevention officer to discourage retail thefts. For businesses like Kim’s, WR began producing guidance resources, available free of charge to all retailers.

Read the entire article

(Photo credit: Ellen M. Banner / The Seattle Times)

Lakewood ORC Summit coming December 9

Loss prevention officers, retail security, law enforcement, and business owners are encouraged to attend the Lakewood ORC Summit on Friday, December 9, from 10:30am to noon.

Discussion topics will focus on organized retail crime (ORC), retail theft, and public safety. WR will make the latest edition of our Guide to Navigating Public Safety and Organized Retail Crime available to attendees. The guide and other related resources are available for download from WR’s website.

The meeting will be at the Lakewood City Council Chambers at 6000 Main St SW, Lakewood, WA 98499.

Avoid box knife injuries with proper use this holiday season

As the Holidays are fast approaching, lacerations from box cutters typically skyrocket because retail employees are busy unboxing inventories to meet customer demand.

The fingers and thumb of the free hand are especially vulnerable if the worker doesn’t pay close attention while opening or breaking down boxes.

Management needs to train workers on the safe use of box knives. Follow these tips when working with box cutter knives:

Always wear cut-resistant Kevlar gloves when using a utility knife of any type.
Ensure blades are securely installed and fastened to the handle.
Always use sharp blades. Dull blades require more force when cutting, leading to an increased likelihood of accidents.
Always keep the body and free hand out of the cutting path, especially when using the free hand to stabilize what is being cut.
Always pull the blade while keeping the knife at a low angle. Pushing a knife or drawing from a more vertical angle reduces stability and control.
Do not use knives for any purpose other than what they are intended for. Knife blades are brittle and break easily if used to pry, screw, or apply pressure.
When cutting thick materials, make several passes, cutting deeper on each pass.
Close or cover blades when not in use – never leave a blade exposed.
Dispose of used blades by placing them in a sharps container or cover the sharp edge and point with thick tape before placing them in the trash.

RS SafetyTV has a short video on utility knife safety . The SAFEME Essentials app also has a module on this topic.

Rick Means, Director of Safety and Education, is available to help members with safety. Contact Rick at 360-943-9198, Ext. 118 or rmeans@waretailservices.com.

WR diversity statement

WR is committed to the principles of justice, equity, diversity, and inclusion. We strive to create a safe, welcoming environment in which these principles can thrive.

We value all people regardless of race, ethnicity, gender, religion, age, identity, sexual orientation, nationality, or disability, and that is the foundation of our commitment to those we serve.