Inside Washington Retail : Our Latest News

Newsletter March 25, 2021

IN THIS ISSUE

Retailers gain optimism as customers come back
HB 1303 will increase costs to consumers
Legislature faces another action deadline tomorrow
Discover a new COVID workplace safety training platform accessible anytime, anywhere
Workers deserve an extended opt-out period for the mandated long-term care program
Learn more about how to partner with SpotOn
Consumers return to buy “real” clothes again
A woman’s guide to personal safety

Retailers gain optimism as customers come back

There’s new optimism on two fronts now that retailers statewide are operating at 50% capacity.

Not only can stores welcome more customers one year into the pandemic under the state’s Phase 3 recovery plan. The nation’s three producers of coronavirus vaccines are expected to triple production this month, according to the Wall Street Journal. Washington Retail followed the news by sending a letter to Governor Inslee and Secretary of Health Umair Shah requesting expanded vaccine eligibility from grocery workers only to all frontline retail workers statewide by the end of this month.

In the letter, WR CEO Renée Sunde noted that strong acceptance of vaccinations by our diverse retail workforce could assist in leading the way during the next crucial months, further adjusting safety restrictions and speeding economic recovery.

In Seattle, where mandated government shutdowns have contributed to the permanent closure of 260 downtown businesses the past year, retailers and shoppers are optimistic that stores can welcome more customers.

“The increased operational capacity allows us to increase staffing levels and to invite more customers into our stores to enjoy shopping for that special piece of jewelry for themselves or a loved one,” said Theresa Treat, Vice President, People Services for Ben Bridge Jewelers. “Less waiting outside in line puts the joy back into making a purchase and increasing business.”

HB 1303 will increase costs to consumers

Mark Johnson, Senior Vice President of Policy and Government Affairs

Washington Retail and our members are concerned about the negative impacts House Bill 1303 will have on business operations. It would increase costs and business complexities especially as they relate to advertising activities, ID verification, and fraud detection.

HB 1303 adopts a 1.8% tax on data brokers. Imposing a new tax on businesses that cater to retailers will undoubtedly lead to higher prices charged for these services.

Retailers have no higher priority than earning and maintaining trusted relationships with their customers. Our success depends on providing the highest quality goods and services at competitive prices. Our guests expect, even demand a very high level of customer service that includes keeping them informed on products of interest to them. We do this through a variety of advertising strategies and very effectively through loyalty programs.

Retailers and the companies they contract with for services already pay taxes to the state. This legislation would add another layer of taxes and inevitably increase consumer costs. Additionally, it would make Washington an outlier and put us at a competitive disadvantage with other states.

For these reasons we ask that the Legislature not adopt House Bill 1303.

Legislature faces another action deadline tomorrow

As the 2021 Legislative session is nearly three-fourths complete, lawmakers face a key action deadline this Friday.

Tomorrow marks the final day the Senate and House can take final votes on bills approved by the opposite house on policy matters. A similar April 2 deadline is for fiscal bills before the scheduled April 25 adjournment date.

Besides actions on bills, the Legislature will soon turn its attention to adoption of a new state budget. The expected debate on whether any tax increases are necessary comes as state revenues have been steadily increasing and exceeding expectations leading many legislators to doubt that any tax increases are necessary. Washington Retail is urging the Legislature to refrain from tax increases that will add burdens on retailers struggling to financially recover from mandated closures during the Covid-19 pandemic.

Please note that budget related bills are alive until adjournment. Also, because Legislature action can be spontaneous and hard to anticipate, the following report was accurate at the time of writing.

Key bills that remain on the watch include:

Senate bill 5096, capital gains tax. Nearly 4,000 people signed up to testify on the bill that is in the House for consideration after passing in the Senate. Washington Retail opposes the bill but expects it to be signed into law and challenged in court as an unconstitutional income tax.
House bill 1539, bad debt sales tax credit. Washington Retail opposes this bill that would remove tax credits from retailers whose customers fail to pay sales taxes. It could be incorporated as part of an overall tax reform by the Legislature until adjournment.
House bill 1076, allowing third-party lawsuits against retailers for alleged wage violations. The Senate is considering the bill after it passed in the House. This bill threatens a flood of expensive, often frivolous actions that can be sorted and negotiated by the state Labor & Industries department.
WR opposes Senate bill 5355 that would allow for liens to be placed on the property of employers for alleged wage violations without pre-notice or investigation. The House is scheduled to exec the bill after it passed in the Senate.
WR supports Senate bill 5203, which has passed the Senate. It encourages the Health Care Authority to enter into partnerships with other states and agencies to produce, distribute and purchase generic prescription drugs.

WR will provide weekly updates on key bills until adjournment, after which a comprehensive report on outcomes of all retail-related bills will be sent to members.

Discover a new COVID workplace safety training platform accessible anytime, anywhere

Employer ALERT – Now that the state is beginning to open up with higher occupancy, join one of our April webinars to acquire a free tool to train new employees and keep your current employees vigilant about COVID safety best practices.

Target attendees – employers, safety coordinators, new employees or those who could use a refresher course.

4/7 – 10:00 A.M. 45 minutes in English presented by Rick Means, Retail Services Director of Safety and Education

4/28 - 10:00 A.M. 45 minutes in English presented by Rick Means, Retail Services Director of Safety and Education

4/29 - 6:00 P.M. 45 minutes in Español presented by Marcos Wanless, President and Founder, Seattle Latino Metropolitan Chamber of Commerce

Select a date above to register soon!

Workers deserve an extended opt-out period for the mandated long-term care program

Rose Gundersen, VP of Operations and Retail Services

Effective 1/1/2022, all workers in Washington state will be subject to a new mandated payroll deduction to fund a newly established Washington State Long-Term Services and Supports Trust (LTSST). The price-tag doubles the rate workers pay for the paid family leave program with a lifetime benefit of only $36,500 that will not start until 1/1/2025. This program’s eligibility limitation and the lack of portability means that many who are required to pay into the program would not be eligible for benefits.

Employers and workers need to understand how this may affect their paychecks and the continuous about-face limitation for opting out.

The business community supported the Long-Term Services and Supports Trust Commission the Legislature established in 2019 through the passage of 2SHB 1087 because of the flexible opt-out feature for workers who purchase their own long-term care insurance. In 2020, however, the Legislature passed SSB 6267 limiting exemptions subject to the Employment Security Department’s approval within 10/1/21 to 12/31/22 only.

This year, the Legislature’s proposed HB 1323 that would further limit the opt-out to those who purchase long-term care “before the enactment of this act.” According to the LTSST Commission’s 12/3/20 meeting minutes, it really meant before the 7/28/2019 because “[t]he Commission recommends limiting opt-out to those who had private long-term care insurance prior to the enactment of the Trust.”

The current program’s long-term care eligibility and benefit are both limited while portability is an unresolved issue. Those who retire to a different state or move away would not receive services from this program. Workers and employers deserve sufficient time to determine opt-out and the Trust Commission needs to coordinate proactively with private insurance carriers to design wrap-around programs.

Washington Retail urges the Senate to include an amendment in HB 1323 that extends the opt-out to at least the end of 2021.

Learn more about how to partner with SpotOn

Washington Retail’s business partners at SpotOn offer an array of electronic tools to help small businesses grow and operate more efficiently.

As more Washingtonians get vaccinated and businesses continue to open their doors to customers, it’s more important than ever to take advantage of tools that can help speed recovery.

To learn more about these exciting opportunities to build strategies and improve your online presence check out these short video clips. For further information contact our SpotOn partner Patrick Wiltsey, Director of Business Development, at 303-835-3217 or pwiltsey@spoton.com.

Consumers return to buy “real” clothes again

Apparel is one line of retail that has been hammered by trends that developed during the Covid-19 pandemic. The newly homebound and others who’ve worked strictly from home refrained from updating their wardrobes.

Clothing sales plummeted 86% in the first months of the pandemic and have yet to recover, according to federal data. In February, Americans spent $19.6 million at clothing and accessories stores, down 11 percent from a year earlier.

But as taxpayers collect stimulus checks, get vaccinated and begin returning to the office, they’re coming back to buying work-appropriate apparel, retailers say. Some report more clothing and shoe sales and rising demand for suits, dress shirts and even tuxedos. Other top items include trendy tops, wide-leg jeans and even resort wear and swimsuits.