Newsletter — October 19, 2023 | |
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POLICY
ECONOMY
THE LOCAL FRONT
RETAIL THEFT & PUBLIC SAFETY
IN THE NEWS
TRENDS
SAFETY
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In collaboration with prominent business groups, the Citizen Action Defense Fund (CADF) has filed an amicus brief advocating for the U.S. Supreme Court to reassess the Quinn v. State of Washington case due to ongoing concerns surrounding the Capital Gains Tax.
The Capital Gains Tax has faced significant criticism for a variety of reasons. There’s growing concern about the potential for double taxation, where the same revenue might be taxed twice, placing an undue financial burden on taxpayers. For businesses, especially those operating across multiple states, the tax presents operational challenges that make compliance daunting. The tax also raises issues related to a state’s authority to impose an excise tax on transactions outside its boundaries.
The Opportunity for All Coalition has also extended financial support for the brief. Due to its alleged unconstitutionality and potential adverse effects on businesses and workers, the Capital Gains Tax has garnered national attention.
Jackson Maynard, Executive Director of CADF, voiced his concerns by stating, “The Capital Gains Tax isn’t just an ill-conceived law—it’s a policy that negatively impacts businesses and workers alike.” He emphasized the undue challenges placed on Washington residents and businesses due to this tax. Maynard also highlighted the selective nature of the tax, pointing out that it’s not applied uniformly to out-of-state residents, which brings into question its practical and legal standing.
Concluding his remarks, Maynard said, “The state’s highest court views this as an excise tax, but it’s problematic for states to tax activities beyond their own boundaries. Given its unconstitutional implications and its negative impact on businesses, the U.S. Supreme Court should indeed revisit the decision of the state supreme court.”
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On October 17, the King County Council’s Transportation, Economy, and Environment Committee heard a presentation by Council staff on legislation that would establish a $18.99 per hour minimum wage with an annual inflation adjustment in unincorporated areas of the county. The current state minimum wage rate is $15.74 an hour.
Proposed Ordinance 2023-0310 would raise the minimum wage effective January 1, 2024, but would initially establish a lower wage standard for small businesses.
- For employers with 15 employees or less with an annual gross revenue of less than $2 million, a starting minimum wage $3.00 less. The reduction would decrease annually by $0.50 until no reduction is remaining, and
- For employers with 16 - 500 employees, a starting minimum wage $2.00 less. The reduction would decrease annually by $1.00 until no reduction is remaining.
The four King County Councilmembers sponsoring the minimum wage announced their intent to introduce it on September 6. Action on this proposed minimum wage standard has been deferred by the Council. We will keep you informed of further developments on this legislation.
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Employers face lawsuits for pay transparency violations
Dozens of lawsuits, including at least one class action lawsuit, have been filed against some Washington state employers accused of failing to disclose salary and benefit information on job postings. In 2022, the Legislature passed SB 5761, now under RCW 49.50.050, requiring companies with more than 15 employees to include pay range and benefits information on a job posting. The new mandate provides pay transparency to close gender and racial wage gaps.
Prior to SB 5761, employers were required to provide salary information upon request only after an initial job offer or transfer. The new law, modeled after Colorado statutes, requires posting a salary range and a general description of all the benefits and other compensation to be offered to potential applicants.
According to guidance from Washington’s Department of Labor and Industries, F700-225-000 Job posting requirements factsheet, salary ranges should extend from the lowest to highest possible pay and list benefits offered, including health insurance, retirement plans, paid days off, parental leave, and stock options.
The law provides that employees can bring a civil action and are “entitled to relief only if the court determines that the employer committed a pattern of violations” or “through application of a formal or informal employer policy or practice.”
WR voiced concerns about the likelihood of lawsuits being filed in House and Senate hearings on SB 5761. Although none of these cases have been concluded, it appears Washington Retail’s concerns were justified.
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Independent medical exams (IMEs) provide a valuable second opinion opportunity to review injured workers’ treatment and identify potential misdiagnoses. These exams are often the first time injured workers see a medical doctor instead of physician assistants, nurse practitioners, or chiropractors! The Legislature passed HB 1068, giving injured workers the right to record (video, audio, or both) their private examinations, effective July 23, 2023. Chaos has ensued due to insufficient time for rulemaking and ignoring important input from stakeholders during hearings.
Implementation confusion has resulted due to a lack of time for rulemaking despite Labor and Industries (L&I) requesting to delay the effective day during hearings. Clarifications needed through rulemaking include:
- The management and custody of IME recordings by L&I
- Whether an injured worker’s recording automatically becomes part of the claim’s file
- A clear definition of the statement “materially alter the recording” is prohibited in the law, etc.
- Does implied consent exist for medical examiners to make their own recordings once they have consented to workers’ requests to record?
Of important note is that L&I is relying on the Office of the Attorney General’s interpretation that no implied consent in the law exists, as passed. This interpretation puts medical examiners in a vulnerable position because the workers’ recording angle and potential undetectable “alterations” could portray a different story about the examination.
There has been an increase in examiners dropping out of the system and delays in injured workers’ treatment progress since the passage of this law. Many examiners have declined such recordings, especially psychiatrists and neuropsychiatrists, because the lack of complete privacy is against their professional ethics.
Any rescheduling due to such recording requests creates a minimum of 4-6 weeks’ delay in workers’ treatment progress. Workers’ attorneys can now create delays in scheduling IMEs that could range from one month to indefinite delays if no IME is scheduled. IMEs are essential for injured workers because these exams often recommend continuation of treatment to the worker’s benefit and can also end stalemates that keep the worker from establishing ongoing pension resolutions.
Despite the unfair position on the part of medical examiners, a law firm has even filed a lawsuit (Ten Injured Workers v. State of Washington) alleging that the law’s prohibition of posting IME recordings online is a violation of First Amendment Rights.
To protect the system’s integrity and injured workers’ benefits, WR is working with the business and IME provider community to collect data regarding adverse impacts on workers resulting from this new law. Injured workers deserve prompt, independent medical exams, while their examiners have the same recording rights as workers.
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The Fed announced this week that the Board will meet next Wednesday to consider “proposed revisions to the Board’s debit interchange fee cap.” No other details were released.
Since 2011, banks with at least $10 billion in assets and follow rates set centrally by Visa and Mastercard have been allowed to charge no more than 21 cents per debit card transaction – plus 1 cent for fraud prevention and 0.05 percent of the transaction amount for fraud loss recovery. Banks can charge more if they set the fees themselves, but no major banks have. Smaller banks are exempt and can charge as much as they like.
In 2010, Congress passed legislation directing the Fed to adopt regulations requiring that debit card swipe fees – which averaged about 45 cents per transaction – be “reasonable” and “proportional” to banks’ costs. The Fed found that banks’ average cost to process debit transactions was about 8 cents but set the maximum at 21 cents under heavy lobbying by banks.
The 21-cent rate has remained in effect even though surveys conducted by the Fed every two years have shown that banks’ costs have fallen steadily since then and were at an average 3.9 cents as of 2019. A report on costs as of 2021 that was expected this past spring has yet to be released.
The swipe fee regulation and a related provision of the 2010 law giving merchants the right to choose which networks process debit transactions have saved merchants an estimated $9 billion a year, and studies show about 70% of the savings has been shared with consumers, largely by holding down price increases.
Debit card swipe fees cost merchants and their customers $34.4 billion in 2022, up 5 percent from 2021, according to the Nilson Report. When all types and brands of cards are included, credit and debit card swipe fees totaled $160.7 billion in 2022 and had more than doubled over the previous decade. The fees are most merchants’ highest operating cost after labor, driving up consumer prices and amounting to over $1,000 yearly for the average family.
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Despite consumers’ ongoing economic challenges, retail sales witnessed a surge in September.
Amidst increasing economic challenges such as elevated interest rates and decelerating growth, September’s retail data reveals that consumers have not lost their spending spirit. With the holiday season on the horizon, the National Retail Federation (NRF) anticipates moderate growth to persist. Retailers have been diligently preparing for the festive season, ensuring that consumers can access excellent products, competitive pricing, and convenience.
The current U.S. Census Bureau report demonstrates that households continue to have substantial purchasing power in the face of persistent inflation, rising interest rates, and geopolitical disturbances. Strong payroll growth in the recent past has boosted retail sector spending, but a significant portion of the surge is due to car sales, gasoline prices, and food services. When these categories are excluded to evaluate core retail, as delineated by NRF, the yearly growth rate seems to be tapering off.
In September, data from the U.S. Census Bureau highlighted that overall retail sales marked a 0.7% increment from the previous month and a 3.8% rise year over year. This is in contrast to the 0.8% monthly and 2.9% annual increase observed in August.
Core retail, which excludes automobile dealers, gasoline stations, and restaurants, saw a 0.5% adjusted growth from August to September and a 2.2% unadjusted yearly growth. In August, the monthly growth stood at 0.2%, and the annual increase was 3.6%.
When viewed through a three-month moving average lens, September indicated a 3.1% unadjusted annual growth. For the year’s first three-quarters, the growth rate was 3.7%.
A closer look into various retail categories revealed that September saw yearly growth in five out of nine segments. Health and personal care stores took the lead with a monthly growth of 0.8% and annual growth of 7.3%, and online sales had a monthly growth of 1.1% and a yearly growth of 6.2%. Clothing and accessories experienced a monthly decline of 0.8% and a yearly growth of 0.8%. Sectors showing a reduction in growth include furniture and home furnishings, which remained unchanged for the month with a yearly decline of 6.5%.
Read the NRF article
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From left: Brittany Shannon, WR Business Development Manager, Bob Green, WCCE Executive Director, Mark Johnson, WR Senior VP of Policy & Government Affairs, Rick Means, WR Director of Safety, and Crystal Leatherman, WR State & Local Government Affairs Manager. | |
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WR values our deep relationship with our chamber partners across Washington State. This week, the WR team of Mark Johnson, Sr. VP of Policy & Government Affairs; Crystal Leatherman, Local and State Government Affairs Manager; Rick Means, Director of Safety and Education, and Brittany Shannon, Manager of Business Development are attending the 2023 Oregon Washington Chamber Leadership Conference in Hood River, Oregon.
Through our partnership with chamber leaders, we can more effectively connect with a broad spectrum of retailers in communities represented by every region of the state. Our Chambers are truly the boots on the ground who understand and advocate for the issues most pressing to businesses in their respective communities.
A huge heartfelt thank you to Washington’s Chamber leaders for all you do to support a thriving community and business environment in your communities. And, a big congratulations to Bob Green, WCCE Executive Director and a tireless advocate for the good work of our chambers, on his retirement.
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Survey reveals more Seattleites concerned over public safety
According to the latest quality of life survey conducted by the Seattle Metropolitan Chamber of Commerce, there is a growing unease among Seattle residents regarding public safety in their city.
The survey revealed that a combined category encompassing concerns about crime, drugs, and public safety ranks as the second-most pressing issue, with 48% of respondents expressing worry. Homelessness takes the top spot at 51%.
This marks a significant shift in public sentiment compared to when the “quality of life” survey commenced in August 2021. The concerns about public safety have surged by 20 percentage points since that time.
The Chamber’s Index survey also unveiled that 60% of the participants feel less safe in their neighborhoods compared to two years ago. Moreover, one in three respondents admitted to not feeling safe when visiting downtown Seattle during the daytime, while two-thirds stated they would not feel safe venturing downtown at night.
Up to August 2023, the city reported nearly 3,500 violent crimes, including 42 homicides. The downtown area accounted for 274 of these violent crime reports, making it the district with the highest incidence of such incidents, based on data from the Seattle Police Department’s crime dashboard.
A majority of the survey participants expressed a desire for a stronger police presence across the city to enhance safety and reduce crime. The survey indicates that 74% of voters support the idea of prioritizing the hiring of additional police officers in Seattle.
Interestingly, a substantial three out of four respondents lack confidence in the ability of the Seattle City Council to reform policing without compromising public safety.
President of the Seattle Metro Chamber, Rachel Smith noted, “We’ve known for some time that voters are concerned about public safety and public drug use – especially meth and fentanyl – and those concerns have become a sticking point to voters continuing to feel optimistic.” She added, “While we saw quality of life numbers increasing as recently as March, these results show that positive progress is fragile, a point candidates for Seattle City Council should note.”
Despite the heightened concerns about public safety, the percentage of respondents actively considering moving has decreased from its peak of 67% in March 2022 to 53% in September 2023.
Read more
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The recent increase in organized retail crime is posing challenges for not just retailers but also the consumers, employees, and neighborhoods they cater to. To focus a spotlight on the gravity of this situation, October 26 is being celebrated as the annual Fight Retail Crime Day. This initiative rallies the entire retail sector to seek effective ways to counter this pressing problem.
On this designated day, the NRF encourages participants to champion policies that bolster community safety and directly address the escalating retail crime issues, especially initiatives like the Combating Organized Retail Crime Act. It also presents an opportunity for industry representatives to engage with key decision-makers during the NRF Fight Retail Crime Day Fly-in event in Washington, D.C., aiming to foster change. Furthermore, this event is a call to the retail community to amplify awareness and to acknowledge legislators who consistently back retail through their “Retail Crime Fighters” recognition.
In preparation for the upcoming Fight Retail Crime Day, the NRF conducted a “Combating Organized Retail Crime” webinar for loss prevention experts. This session, which was strictly for members and excluded media coverage, enabled attendees to benefit from the expertise of specialists who presented data from the latest National Retail Security Survey.
Retail industry members have been invited to converge in Washington, D.C., during Fight Retail Crime Day. The event will focus on advocating for legal measures that tackle the organized retail crime menace head-on. The 2023 Fight Retail Crime Day Fly-in event is of particular significance as it allows leaders from the loss prevention realm, those directly confronting the surge in organized retail crime, to directly communicate with Congressional members and their aides. The primary objective of this gathering is to stress the urgency to act, especially in favor of the Combating Organized Retail Crime Act, which is pivotal in enhancing federal efforts to counter crime.
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The Kroger Co. and Albertsons Companies Inc. have publicized a definitive agreement with C&S Wholesale Grocers to sell select stores, brands, and facilities—a significant advancement in their proposed merger. This collaboration promises extensive benefits for American consumers by offering expanded access to affordable food, positioning itself as a robust alternative to giant, non-union retailers.
One of the main highlights of this merger is its pledge to retain all current stores, ensuring no job losses. Frontline workers will keep their positions, and all existing union agreements will persist, promising industry-leading health benefits, pensions, and competitive wages.
The merger of these grocery titans is seen as a strategic move to counteract the increasing dominance of non-union competitors, notably Walmart and Amazon. Their joint venture will usher in greater customer affordability while raising the bar for employee wages and benefits.
C&S Wholesale Grocers, the partner for this transaction, is renowned in the grocery supply sector. Established in 1918, C&S has a rich history of serving diverse clients, from independent supermarkets to retail chains and military bases. With a portfolio spanning over 100,000 products, they are well-positioned to cater to a vast consumer base. C&S’s profound industry expertise and robust financial backbone make it an ideal choice to continue the legacy of the divested stores and facilities.
Both CEOs of Kroger and Albertsons have expressed their confidence in C&S, emphasizing their commitment to existing agreements and the welfare of employees.
The divestiture includes 413 stores and well-recognized brands such as QFC, Mariano’s, and Carrs. Some retained stores will undergo re-branding after the transaction. The deal will also include divesting private label brands like Debi Lilly Design and ReadyMeals. The geographic distribution of stores spans across multiple states, including Washington, California, and Texas. Washington state has 104 Albertsons Cos. and Kroger stores to divest—the most of any state.
The merger signifies a monumental shift in the grocery sector, with two major players coming together to provide enhanced value for consumers and fortify their market presence against bigger competitors.
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Walmart’s commitment to enhancing personalized shopping experiences for its customers takes a turn with the introduction of the virtual makeup try-on experience. This approach caters to individual preferences and extends a welcoming hand to a broader customer base, underscoring Walmart’s dedication to inclusivity.
This cutting-edge technology, developed by Perfect Corp., employs artificial intelligence (AI) to craft remarkably realistic augmented reality (AR) makeup filters. These filters allow customers to digitally sample a wide array of cosmetics, all while assuring the privacy of their data. The emphasis on data security reflects Perfect Corp.’s conscientious approach to technology implementation.
Perfect Corp.’s CEO and founder, Alice Chang, expressed her enthusiasm for this collaboration with Walmart. She remarked, “As beauty customers increasingly turn to retailers for personalized advice and product recommendations, we are thrilled to be partnering with Walmart to create an enhanced try-on experience leveraging state-of-the-art AI and AR technologies. The fusion of AI and AR technology will remain pivotal for Walmart and other retailers as they seek to engage customers and deliver tailor-made shopping experiences.”
Walmart’s commitment to embracing AI integration is evident in its recent experimentation with both AI and AR features on its website. These tests and deployments include enhancements to search capabilities, demonstrating Walmart’s proactive approach to adapting to the evolving retail landscape.
Perfect Corp. has extended its partnership to offer virtual makeup try-on experiences powered by AR in collaboration with travel retailer Dufry, available both at airport stores and online. Customers can effortlessly choose from a diverse range of virtual cosmetic products using standing devices provided by 15 eligible brands, enriching the shopping experience for travelers. Additionally, Perfect Corp. has collaborated with the luxury wellness brand Elemis to develop a mobile skin analysis tool, which leverages AI to assess skin concerns and make personalized product recommendations. This partnership signifies the company’s versatility in harnessing AI for diverse retail and beauty applications.
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Taylor Swift and TikTok are unquestionable favorites among teenagers, as revealed in Piper Sandler’s semiannual Taking Stock with Teens survey. However, the report offers intriguing insights into their current interests.
Based on responses from 9,193 teenagers, the survey indicates a slight dip in their spending, down 1% year-on-year and 4% from the spring. Piper Sandler’s senior research analyst, Edward Yruma, noted these “initial signs of a slowdown.” There’s a significant gender gap, with upper-income males increasing spending by 11% year-on-year while female spending decreased by 8%. Over the past year, teenagers have shifted their shopping preferences towards off-price and e-commerce retailers. Amazon is their favorite shopping website, displacing specialty, discount, and outlet stores.
Get Ready with Me (GRWM): Beauty products have become a hot commodity for teens. The “core beauty wallet” encompassing cosmetics, skincare, and fragrance has surged by 23%, averaging $324 annually. Cosmetics, in particular, take the lead, with an average expenditure of $127, marking the highest spending in this category since 2019. Specialized beauty retailers are reaping the benefits, hitting an all-time high of 79%, while purchases from mass, department, or drugstores reached a new low of 11%.
Snack Time: In the realm of food, Goldfish remains the top snack brand for teenagers, with Lay’s a close second. Regarding energy drinks, Monster leads the pack as the preferred brand, followed by Red Bull. However, Celsius, with only a 10% market share in the category, appears to be overindexing with teens, as 16% choose it as their favorite. Chick-fil-A continues to be the teenagers’ favorite restaurant, with Starbucks and McDonald’s following closely behind.
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Soft skills in safety can carry a much-needed boost to the overall safety environment and can transform the safety culture greatly by simply developing these everyday skills.
Storytelling remains an untapped resource in workplace safety, often overshadowed by the prominence of safety guidelines, regulations, and training. However, weaving safety information into narratives can be nothing short of transformative.
Storytelling possesses the unique ability to captivate, educate, and motivate in ways that raw data and statistics seldom achieve. In this article, we explore the indispensable role of storytelling in advancing workplace safety and how it contributes to cultivating a safer and more informed workforce.
Stories offer a human touch to the context for comprehending safety issues. They vividly illustrate how safety measures, or their absence, can directly impact the lives of real people in genuine situations. This contextual understanding renders safety guidelines and precautions not as abstract rules but as practical, indispensable facets of everyday life.
Stories tap into human emotions, potent motivators that can trigger strong responses. Stories can elicit deep emotional reactions, whether recounting a near-miss accident, sharing a tale of safety triumph, or unveiling the harrowing consequences of a safety violation. These emotions, in turn, compel individuals to regard safety with a newfound seriousness and inspire them to make safer choices. When safety messages resonate on an emotional level, they hold the potential to drive meaningful and lasting behavioral change.
Stories possess the power to influence behavior directly. Narratives that spotlight the positive outcomes of safety practices or vividly depict the negative repercussions of unsafe behaviors can serve as catalysts for individuals to adopt safer habits and make improved decisions. Embedding safety messages within narratives renders them more actionable and relatable, ultimately ushering in tangible, real-world changes in behavior.
Storytelling is often underestimated as a tool in workplace safety, making it more relatable, memorable, and impactful. When safety messages are skillfully woven into narratives, they hold the potential to cultivate a culture that is deeply conscious of safety, fuel behavioral transformations, and, most importantly, contribute to a significant reduction in the risk of accidents and injuries within workplaces.
As safety professionals recognize the potency of storytelling alongside other safety measures, they can confidently anticipate the development of a safer and more informed workforce—a culture where safety is not just a rule but a shared commitment to each other’s well-being.
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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.
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Renée Sunde
President/CEO
360.200.6450
Email
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Rose Gundersen
VP of Operations
& Retail Services
360.200.6452
Email
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Mark Johnson
Senior VP of Policy & Govt. Affairs
360.943.0667
Email
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Robert B. Haase
Director of
Communications
360.753.8742
Email
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