IN THIS ISSUE
- Legislature passes more than 300 bills this year
- Efforts to Overturn New Capital Gains Underway
- Exemptions and the Long-Term Care payroll deduction mandate
- CEO Renée Sunde speaks at Eastside Regional Business Summit
- Walmart and Walgreens now offering walk-in vaccine appointments
- Governor Inslee announces two-week pause on county rollbacks
- New boating law will help bolster economy
- Shoppers expected to return to stores
- How to build a resilient business
- A safer work environment is uncluttered
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Legislature passes more than 300 bills this year
The state Legislature that adjourned on April 25 passed 334 bills of 1,468 that were introduced, nearly 23% of the total.
Washington Retail tracked scores of retail-related bills upon which it will issue a complete breakdown for membership in the coming weeks. A related voting record by legislators on issues of prime importance to retailers also will be issued for public view.
Governor Inslee has 20 days from this past Sunday to take action on approved bills; either signing them into law, vetoing them or removing sections from bills. Bills in which the Governor takes no action will automatically become law.
Here’s a summary of outcomes on a few key bills of interest to retailers:
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HB 1076 failed to move out of the Legislature. It would have allowed third parties to sue employers against whom charges had been made regarding alleged violations of workplace protections. It could be considered again in the 2022 Session. Washington Retail opposed the bill.
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Governor Inslee has signed SB 5355 into law. It allows for wage liens to be brought against employers regarding alleged payment violations. WR opposed the bill.
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Inslee has signed HB 1033 into law. It extends tax credits to employers willing to engage in retail workforce training. This law will be an important tool in Washington Retail’s commitment to equity and diversity initiatives. WR supported the bill.
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SB 5191 did not move out of the Legislature. It aimed to put limits on retail price increases during an emergency such as the current coronavirus pandemic. WR worked to improve terms in the bill during the 2021 session.
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Inslee has signed HB 1445 into law. It updates the definition of pharmaceutical compounding to match that of the Food and Drug Administration. It allows pharmacists to prepare compounded medications without having to do extra work to meet current statutory compounding requirements. WR supported the bill.
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Efforts to Overturn New Capital Gains Underway
By Mark Johnson, Senior Vice President of Policy and Government Affairs
The Legislature has sent to the Governor, who is planning to sign, a new capital gains tax of 7% on proceeds over $250,000. Efforts have been launched to fight the new law in court.
Washington Retail opposed the legislation as it will hurt small retail owners who chose to sell their businesses. Many of these owners have worked their entire career building the business in hopes of someday being able to retire and live off the profit from the sale. It is wrong that the state would now ask them to pay an additional 7%. Consider that these business owners have been paying property taxes, workers’ comp taxes, unemployment taxes, business and occupation taxes, utility taxes, etc., etc. for years. These businesses have been employing workers and contributing to the vitality of their local communities. Now the state wants to hit them again. It would be like taxing our retirement accounts beyond what we have already paid. It is disingenuous that the proponents continue to tout that the new tax only impacts the super-wealthy. I would argue that $250,000 is not a super wealthy business owner.
Besides being blatantly unfair, the tax is unconstitutional. This is the argument several groups will be making in our legal system. I expect the cases to be appealed all the way up to the state supreme court where the nine justices will have the final say.
Here is another underlying problem if the tax remains in place. That $250,000 threshold will undoubtedly drop as the state’s insatiable appetite for more revenue grows. What is particularly egregious is that our state has received billions of federal assistance and our revenue outlook has continually gone up – all in the face of a crippling pandemic.
WR is meeting with groups to help in efforts to repeal this unjust and ill-advised new tax.
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Exemptions and the Long-Term Care payroll deduction mandate
Rose Gundersen, VP of Operations and Retail Services
The recent passage of HB 1323 offered a few key changes to the nation’s first long-term care mandate program originally passed in 2019 under HB 1087.
The changes:
- Limit the time for exemption to those who have purchased long-term care insurance by November 1, 2021,
- Require the program to offer employers educational materials via a website in English and other primary languages,
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Mandate the LTSS Commission to work with insurers to develop long-term care supplemental benefit products, and
While there are many outstanding questions related to this new payroll deduction mandate effective January 1, 2022, Washington Retail obtained answers to a few key questions important to the employer community through the Washington Cares Fund (program name for the new mandate).
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How is the self-employed exemption defined? The definition is the same as it is for those who are exempt from Paid Family Medical Leave based on the reference in RCW 50B.04.010 (7-9). Opt-in is available with time limitations.
- Unlike the Paid Family Medical Leave with a deduction limit tied to the Social Security tax ($142,800 in 2021), the $0.58 per $100 of earnings premium rate applies to the whole paycheck without a ceiling.
- Though the contribution rate is based on earnings, the lifetime maximum benefit of $36,500 with cost-of-living built-in is the same for all.
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The benefit is not portable from state to state. In other words, Washington state workers who move out of state or retire to a different state will not be able to access benefits regardless of the amount of their contribution.
Though this program is solely funded by workers, employers are responsible to communicate and process premiums. Contact the Washington Cares Fund for questions or consider joining their email list.
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CEO Renée Sunde speaks at Eastside Regional Business Summit
Joined by Kemper Freeman, Chairman and CEO of Kemper Development and Alan Stephens, Columbia hospitality director of operations WR’s President & CEO Renée Sunde participated in the Eastside Regional Business Summit CEO Panel hosted by the Issaquah Chamber of Commerce.
The information packed event featured panelists and keynote speakers from across several different business sectors offering their perspectives on everything from economic recovery, technology’s role in growth and innovation and navigating the COVID experience.
Sunde provided her insights on post-COVID retail trends and the impacts rising fuel costs and supply chain shortages and bottlenecks may have on the retail industry in the coming years.
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Walmart and Walgreens now offering walk-in vaccine appointments
All Walmart pharmacy locations across Washington will be accepting walk-in COVID-19 vaccine appointments in addition to scheduled appointments. Customers who schedule an appointment can complete pre-vaccination paperwork ahead of time. Appointments can be made at walmart.com/COVIDvaccine. Walmart Pharmacies are open seven days a week and are administering the approved J&J, Pfizer and Moderna vaccines.
In addition, Walgreens pharmacies in Yakima, Pasco, Richland and Kennewick are now offering same-day COVID-19 vaccine appointments to patients age 16 and older to provide more convenient scheduling options and further improve accessibility to vaccination. Appointments are still encouraged and may be scheduled by Walgreens.com/ScheduleVaccine or by calling Walgreens phone scheduler, which is available in English and Spanish, at 1-800-Walgreens.
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Governor Inslee announces two-week pause on county rollbacks
Currently, all counties remain in Phase 3 with the exceptions of Pierce, Cowlitz and Whitman counties which rolled back to Phase 2 on April 16, and Ferry county which voluntarily rolled itself back to Phase 2 on April 30.
Despite concerns over a fourth wave, cases statewide have begun to level out and reach a plateau according to DOH observations.
This means all retailers in Phase 3 will remain at 50% capacity in-stores which is good news for shoppers this upcoming Mother’s Day weekend.
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New boating law will help bolster economy
Earlier this week Governor Inslee signed HB 1107, sponsored by Rep. Mike Chapman (D-Port Angeles) and Rep. Andrew Barkis (R-Yelm) into law which will help bolster Washington’s boating economy in the coming years. Out-of-state vessels such as superyachts can now be put up for charter using an innovative permitting system making it even easier for boats to visit our state.
Washington Retail strongly supported the measure as a way to help our marine industry members and their customers. In a recent press release from the Northwest Marine Trade Association and Superyacht Northwest, Peter Schrappen, NMTA’s Vice President & Director of Government Affairs is quoted, “Flanked by coalition partners, Northwest Marine Trade Association demonstrated to lawmakers that boating means business, which led to this legislative win”.
Some other important provisions of this law include the following:
- Creates a framework to sell permits for skipper-provided charters for boats from out of state.
- Increases the size of all vessels eligible for these permits to include boats up to 200 feet.
- Keeps the current rule that boats can return each year, year after year for 60 days (and those days do not need to consecutive)
- Removes the language that boats have to stay away for two years after using days 61-180.
- Moves the expiration date of this so-called tax preference to 2031 (it was Jan. 1, 2026).
- The law takes effect on July 25, 2021.
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Shoppers expected to return to stores
After months of isolation and changing online shopping habits due to COVID restrictions, shoppers still yearn for the in-store experience. Although the retail industry has seen some tremendous changes in innovation in the past year in offering more convenient, touch-free services such as ‘BOPIS’ (Buy Online Pickup In-Store) and same-day delivery, shoppers are eager to return to stores.
‘Retail Therapy’ is real and people very much want to return to socially therapeutic activities that allow them to be amongst their friends, touch and feel products firsthand and walk away feeling as if they’ve found a real treasure or bargain.
According to a recent article in Forbes the experiences in many ways will be very different than what occurred pre-pandemic. Some notable changes include:
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Higher prices: Due to higher raw material costs, increased freight and shipping bills, businesses trying to recoup losses from the pandemic etc. the prices paid for goods and services could be up from the low digits to as high as 10-15%.
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Supply shortages: Raw material shortages will also result in reduced selections available. “Oversupply has been the name of the consumption game for quite some time and the idea of settling for something because it’s all that’s available will take some getting used to.”
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Longer Wait Times: As many parts of the country are still re-opening and retailers are working diligently to provide a safe shopping experience for their customers, shoppers will need to pack their patience. Retailers will continue to look for ways to keep foot traffic moving as they deal with limited capacity restraints.
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How to build a resilient business
There has never been a more important time to cultivate an environment of resilience within your business or organization. As businesses look to find their new normal after a year of disruption and change, Deloitte published their fourth annual readiness report that identifies what traits define resilient organization and business leaders.
The report outlines 5 characteristics of resilient organizations that help create a culture that is adaptive and nimble.
So, what will help your business bounce back when facing unexpected challenges?
Be Prepared – Plan for the long term but be prepared to pivot in “real-time” to short-term realities. Keeping a balance on both is essential.
Collaborate – within your organizations, it helps speed up decision-making, helps minimize risk and increases innovation among your team. Those leaders that worked to remove silos and increase collaboration prior to the 2020 disruption were more prepared to adapt.
Be Adaptable – Leaders need to surround themselves with a team that is flexible and adaptable. This was identified as the most critical workforce trait necessary to lead their organization’s futures.
Be Trustworthy – It’s not always easy to build trust. But trust between leadership and employees is essential to building a culture that supports strong transparency, improving communication and leading with empathy.
Be Responsible – Business must be responsible for more than just the bottom line. Eighty-seven percent of those surveyed said that by looking beyond the bottom-line they were more able to adapt to disruptive events impacting their stakeholders.
According to the report, most resilient organizations focus on all of these traits to some degree. But keep in mind that these characteristics won’t happen without deliberate action to cultivate and maintain. It’s never too late to be prepared for the next unexpected event.
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A Safer Work Environment is Uncluttered
In 2019, the National Safety Council reported 4,414 preventable workplace deaths in the U.S. Another 4.5 million injuries were reported, costing employers $171 billion. Many of these can be attributed to poor housekeeping. While these statistics are alarming, you can become part of the solution and eliminate hazards.
We often think of spring cleaning as getting our homes in order. As an employer, have you stopped to think about your workplace as well? Good housekeeping protects employees from injuries, keeps the workplace clean and most importantly, results in improved safety. You also impress your customers as well when they see the store is tidy and inviting.
It is important to keep aisles, exits and stairways free from clutter. An untidy work environment can lead to injuries and ergonomic issues. Clutter leaves less space to move around, impacting employee productivity as well.
When you see something not in the right place, take a moment to pick it up and put it where it belongs. That moment is well worth it preventing the possibility of injury to fellow employees or even to yourself!
WR employs Rick Means, Director of Safety and Education, who is available to members to help draw up safety plans and suggest topics for safety meetings. Contact him at 360-943-9198, Ext. 118 or rmeans@waretailservices.com
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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
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Rose Gundersen
VP of Operations & Retail Services
360.200.6452
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Mark Johnson
Senior VP of Policy,
Government Affairs
360.943.0667
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