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Major initiatives stand to affect business… Voice your opinions … VOTE!
By Jim DeWalt,
President / CEO
November 2nd is fast approaching. It's our privilege and our duty as citizens to share our ideas and voice our opinions on issues that are important to us with our vote.
In addition to important candidate elections, numerous initiatives flood the ballot for this November’s election. It is critical for us to be aware not only of the candidates’ views, but also of measures on the ballot that have potential impact to businesses in our community.
Typically, Associated Industries does not endorse any political candidate or points of view. However, we do want to give your attention to the candidates and issues that affect our region and our country.
The flyer, produced by the Association of Washington Business (AWB) gives a quick summary of the major initiatives, offers links to more information and suggests a position that will best support employers across Washington on issues such as privatized workers’ compensation, privatized liquor sales, taxes on grocery items and state income tax issues. In addition, AWB’s website does an excellent job of providing analysis and “scorecards” on each of the candidates.
For more campaign information on any of the initiatives and to learn more about AWB candidate endorsements, go to www.awb.org.
– Jim DeWalt,
Associated Industries President/CEO |
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Design Source Solutions, Inc.
Diamond Machine Works, Inc.
Strategic Employee Benefits
DFS, Inc.
S & S Advanced Metal Technologies
SERE Solutions Inc.
Sterling Hospitality Management
Davis Communications Inc.
Skyline Inland Northwest
TCM Construction
Hart Capital Management, Inc. |
Cancer Patient Care
Magic Creek Construction, LLC
Cascade Cancer Center
DAA Northwest
Sytech Inc.
Monroe Door & Millwork
Ken Ballenger Insurance
Copperleaf Consultants
South Hill Auto Licensing
LeMaster Daniels |
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Associated Industries saves thousands by “going green” with LED lighting
Recently, Associated Industries retrofitted the entire Spokane, Wash., headquarters with LED lamps and fixtures. This installation undertaken by Gentry LLC, a national firm also based in Spokane, makes Associated Industries (A.I) the first 100% LED building in the Pacific Northwest.
Thanks to the reduction in the number of lamps, and the substantial reduction in kilowatt hours saved by retrofitting to LED lamps, Associated Industries is projected to save approximately $5,900 in the first year of electricity costs.
Avista Utilities also played a role in the transformation, granting A.I. a rebate through their Commercial Lighting Incentive Program. With this program Avista aims to help companies reduce energy consumption. The Program works closely with companies that desire to save energy costs while reducing the environmental impact of their organizations. A full announcement will be going out from Associated Industries later this month. In the meantime, more information is available on the Gentry website or by phone at 480.789.3773.
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Washington Small Business Development Center hosts “New-To-Export” Workshop
A three-day workshop targeted at businesses that are interested in learning the benefits of exporting takes place on November 10th, 11th and 12th in Spokane. The workshop is comprehensive and includes one-on-one support from both a Small Business Development Center (WSBDC) Trade Specialist and a local exporting company mentor to help businesses walk through the process of preparing to export.
This workshop is part of a new statewide initiative to dramatically increase State exporting by assisting new-to-export companies to prepare for and begin exporting their products and services.
“This initiative is critical to the region and the State to help get us out of this economic mess,” says Terry Chambers, WSBDC Network Training Director. “There is no cost to you, however registration is required so we can match you with a mentor.”
The event will take place at Center Place at Mirabeau, 2426 N. Discovery Place, Spokane Valley, WA.
Registration is available online on the SBDC website. Click here for a flyer with more information. For course information, call the International Trade Alliance at 509.413.1470. |
OSHA findings in the news could affect A.I. members
When Congress created the Occupational Safety and Health Administration (OSHA) in 1970, States were given the option of running their own workplace safety and health regulatory program as long as it was "at least as effective as" the federal OSHA program. Currently, 27 states and territories do so, including Washington State. The State’s occupational safety and health program was approved in January 1973 and received certification in January 1982.
Federal oversight currently takes place through an evaluation program based on a five-year strategic plan prepared by the State, with measurable goals and metrics. Late in 2009, the Federal OSHA evaluation program was enhanced to identify and address possible performance problems, and in September of this year, OSHA’s Enhanced Federal Annual Monitoring and Evaluation (EFAME) was released. OSHA offered praise for some states, and warnings to others in its evaluations. The full EFAME report can be found on the OSHA website at http://bit.ly/9GYSEO.
According to OSHA’s Washington State EFAME Review summary, “Overall, OSHA found that the DOSH (Department of Occupational Safety and Health) is operating an effective enforcement program. The state’s performance with respect to activities mandated by the Occupational Safety and Health Act and its implementing regulations is good. Nevertheless, OSHA identified the need for DOSH to take remedial actions in several areas, including fatality case documentation, penalty calculation and obtaining employers’ injury and illness log information.”
Two of OSHA’s findings for Washington stand out as having potential impact on our members:
- The level of penalties for serious citations was $805 less than the nationwide average.
- The Labor and Industries inspectors did not always include a copy of the OSHA 300 in the inspection file.
Regarding penalties, OSHA said: “Copies of 300 logs should be collected from businesses and put into the case file for the previous three years.”
The EFAME review also identified areas where states have adopted standards and procedures exceeding federal OSHA's requirements, including injury and illness prevention programs and the adoption of a Cranes and Derricks rule prior to OSHA's in Washington and other states. The status of each state's efforts to improve its plans will be reflected in the fiscal year 2010 Federal Annual Monitoring and Evaluation report expected in 2011.
For more information:
Contact Jim Gurnea, Vice President Safety/Retro
at 509.777.2659 or 800.720.4291 or jgurnea@aiin.net |
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IRS issues guidance on 2011 changes to flexible spending arrangements
Effective January 1, 2011, the Affordable Care Act (ACA) establishes new restrictions on the reimbursement of over-the-counter (OTC) medicines and drugs purchased after December 31, 2010. Under these restrictions, employer-provided accident and health plans (including health FSAs and HRAs) can only reimburse medicines and drugs if the medicine or drug is prescribed. Similarly, distributions from HSAs and Archer MSAs for medicines and drugs are tax-free only if the medicine or drug is prescribed. Insulin is expressly excluded from this requirement. Medical expenses that are not “medicines or drugs,” such as crutches, eye glasses, contact lenses, and bandages, can also continue to be reimbursed without a prescription.
On September 3, 2010, the Internal Revenue Service (IRS) issued Notice 2010-59 and a series of Questions and Answers further explaining this new rule. Here is a link to that notice: Notice 2010-59.
The notice acknowledges that it’s currently impossible to substantiate whether over-the-counter medicines or drugs are prescribed when purchased with a health FSA and HRA debit card. Therefore, under the new rule, health FSAs and HRA debit cards may not be used to purchase over-the-counter medicines or drugs on or after January 1, 2011.
Recognizing that significant changes will be needed to existing debit card systems as a result of the new restrictions, the guidance provides that “the IRS will not challenge the use of health FSA and HRA debit cards for expenses incurred through January 15, 2011” so long as the existing IRS debit card rules are met.
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ECONOMIC FAST FACTS: As people are planning for the coming year, Bill Sweigert, Vice President of Training and Consulting, has received several requests for research on pay trends. Below are some fast facts he’s gathered.
- Consumer Price Index (CPI) lower than two years ago, but minimum wage goes up again. The August CPI-W is used to increase the WA minimum wage. The 2007 to 2008 “uptick” resulted in the present minimum wage of $8.55. The index dropped in 2009, but the wage was unchanged. In 2010 the index was still below 2008 but was up 1.44% from 2009. The state law has been read literally to mean that any uptick from August to August in the CPI requires a raise in the minimum wage. The state has announced therefore, that the minimum wage will increase by 1.44% or $0.12, to $8.67 for 2011.
- 43-48% of employers report freezing or cutting pay. Of the few employers doing broad-based wage increases (averaging roughly 3%) when averaged in with the zeros or negative numbers – the average will approach zero to negative. Employers planning even modest staff increases are a minority, and cuts are expected in large and small employers. Source: Associated Industries survey September 23, 2010
- 76% of Washington manufacturers froze or cut pay, and most expect this pattern to continue. The just-published Survey of Manufacturing Executives by Impact WA 2010 (formerly Washington Manufacturing Service) shows 58% of WA manufacturers report no change in wages over 2 years, while another 18% decreased pay. 69% of employers surveyed forecast the same for the next two years.
- Average wage in WA State expected to drop during 2010. According to Doug Tweedy, Regional Labor Economist for the state employment service in the Spokane Area, the average state wage increased from $36,800 in 2008 to $38,112 in 2009, a 3.56% increase. He also reports that Washington’s employment peaked that year. Based on his preliminary look at data on employer payrolls for the first three quarters of 2010, Tweedy estimates that the average wage will decline for 2010. Final calculations won’t be available until December.
For more information and details on the CPI and COMPENSATION SERVICES,
see Associated Industries’ website, or contact Bill Sweigert
at 509.777.2658 or bsweigert@aiin.net |
2010-2011 Associated Industries Bright Promise Program celebrated
"I think that everyone has a challenge to get through school. If you don't you are a very fortunate person. I think if we help each other get educated and learn more, it would probably make things a little bit better for everyone."
-Terra Donley -- Second-Year AIBPP recipient
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Associated Industries recently announced 26 fortunate recipients of the 2010-2011 Associated Industries Bright Promise Program scholarships. The Associated Industries Bright Promise Program scholarship was established to recognize and reward outstanding students attending the Community Colleges of Spokane or transferring to Eastern Washington University from the Community Colleges of Spokane to pursue post-secondary education and training in full-time undergraduate programs. The scholarship focuses on students pursuing one of these four core areas of study are eligible for the scholarship: Health Sciences, Business, Technology, or Manufacturing Technology. A total of 64 scholarships – which fund approximately one-half of one year’s tuition for each student -- have been distributed through the two-year-old program.
This year’s recipients will be recognized at a reception held in their honor at the Associated Industries headquarters in Spokane, Wash., on Thursday, October 28th, 2010 at 4:30 pm. Major donors, selection committee members, college representatives, A.I. Board members and staff and honored guests will be on hand to meet the recipients and their families. A new video highlighting the scholarship program and its recipients will be shown and one lucky student will be awarded an iPad to use for his or her studies. |
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On behalf of Omega Pacific, Inc., I would like to express our appreciation for the excellent service and guidance we have received from Associated Industries' In-house counsel.
Dealing with the employment law monster on a daily basis can become a daunting endeavor and having the reinforcement of specialized guidance from Ann, Nicole, and Angela, provides for us a comfort of compliance. One of the best attributes I personally appreciate from your legal team is, “they understand.” The manner in which they communicate and respond to our questions and concerns instills confidence, motivation, and encouragement that we are on the right course of correction.
Thanks again to Associated Industries and the quality customer support provided by your staff.
-- Dave Ebert, Safety/HR
Omega Pacific, Inc. |
 Recent LEGAL E-Alerts
Washington Minimum Wage Increases to $8.67 in 2011
This month, the Washington State Department of Labor & Industries (L&I) announced an increase of $0.12 (1.4%) to the state minimum wage.
Washington voters approved an initiative in 1998 which requires automatic increases to the minimum wage in accordance with changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
Nine other states have adopted similar laws, linking the minimum wage to inflation and the CPI. Washington’s minimum wage remains the highest in the nation, with Oregon rating second highest and also reporting a similar increase.
The minimum wage was not increased in 2010, based on a drop in the CPI-W for that year. Although the CPI has increased for 2011, it has not reached the 2009 level, sparking debate about whether the law requires an increase in such a circumstance. Attorney General Rob McKenna opinioned that an increase was not due as the CPI-W had not yet surpassed its 2009 levels, which were the basis for the prior minimum wage. L&I received differing legal opinions from the State Office of the Attorney General, the governor and other sources before arriving at its decision to increase the minimum wage for 2011.
DOT publishes changes to the substance abuse programs
The federal Department of Transportation has published final regulations that require changes to the substance abuse programs employers apply to workers with a commercial driver's license (CDL). These new regulations require that:
- Testing be conducted for the presence of MDMA (ecstasy);
- The thresholds for cocaine and amphetamines be lowered; and
- Initial testing be conducted for the presence of heroin.
The new regulations do not allow for the use of Instrumented Initial Testing Facilities to conduct initial drug testing as had been indicated previously by the DOT. This means the laboratories that employers utilize must perform both initial and confirmation testing. In addition, the regulations revise a number of definitions that may be included in employer policies.
Associated Industries (A.I.) members are encouraged to contact any of the association's in-house counsel for an updated sample DOT substance abuse testing policy or assistance in reviewing the employer's current policy.
New Administrative Provisions enacted regarding the Domestic Violence Leave Act
Washington State enacted the Domestic Violence Leave Act, RCW 49.76, in 2008. The law applies to all employers, regardless of size, and allows victims of domestic violence, sexual assault or stalking to take reasonable leave from work – paid or unpaid – to address legal or law enforcement needs and/or to obtain healthcare or counseling services related to such issues. Family members of a victim may also take reasonable leave to help the victim obtain legal assistance or medical treatment.
The Department of Labor and Industries, which is charged with enforcement of this law, has promulgated rules for administration and enforcement of the Act. The new rules can be found at WAC 296-135-001 et seq.
Some highlights of the new rules include:
- Reasons for Taking Leave: WAC 296-135-020. An eligible employee may take leave to seek legal or law enforcement assistance or remedies to ensure the employee’s or family member(s)’ health and safety; to seek (or to assist a family member in seeking) healthcare or counseling for physical or mental injuries caused by domestic violence, stalking or sexual assault; or to participate in safety planning, relocation or other actions to increase safety from future incidents.
- Choice and Manner of Leave Allowed: WAC 296-135-040. The employee is entitled to choose to take leave as unpaid, paid (including sick or other PTO) or compensatory time and may choose to take leave as intermittent leave, reduced work schedule or in a single block of time.
- Duration of Leave: WAC 296-135-050. An employee is entitled to take leave that is reasonable in duration. “Reasonable” is not defined and is determined on a case-by-case basis considering the reasons for taking leave.
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First Aid/CPR Training for Members/NonMembers
This fast-paced, hands-on First Aid/CPR training meets all OSHA/WISHA standards and qualifies as continuing education credits for plumbers and electricians. Participants receive a two-year certification upon successful completion of this class.
| DATE: |
Wednesday, Nov. 3 |
| TIME: |
8:00am - Noon |
| LOCATION: |
Associated Industries, 1206 N. Lincoln Suite 200, Spokane WA 99201 |
| PRESENTED BY: |
1st Line 1st Aid |
| COST: |
$55 for members
$75 for non-members |
To register contact Clydene Franklin
at cfranklin@aiin.net or by phone at 509.326.6885 or 800.720.4291 |
Associated Industries offers a variety of classes customized to meet your needs – either onsite or at our location. Request a class and set your own date! Here are just a few of our hundreds of training options:
Introduction to Leadership: a two-part series:
Designed for lead workers and others who have some responsibility for work beyond their own production, but not the full range of authority of a supervisor.
Coaching Skills to Solve Workplace Conflict:
Transforming the Process for Better Outcomes
The cost of employee conflicts and complaints skyrockets without a clear, pragmatic method to deal with them. Learn problem-solving processes to support your organization’s mission and values, how to diagnose common workplace conflicts and their causes, prepare supervisors and lead workers to avert conflict and apply coaching skills for early solutions. See the success that comes by solving problems as close to the source as possible.
Investment: $85 Members, $130 Non-Members To schedule or request a class, contact Bill Sweigert
at 509.777.2658 or bsweigert@aiin.net
Watch your inbox and our website for more information
on upcoming Associated Industries classes |
First numbers are in on federal plan, but full impact is not yet known
by Ted Blotsky, Senior Vice President,
Employee Benefit Services
The Pre-Existing Condition Insurance Plan, one of the early, big steps in the Affordable Care Act, went into effect July 1st, and state-run and federally-managed programs alike began accepting applications. To be eligible an applicant must have been uninsured for at least six months and have a pre-existing condition.
Through August 9th, 2010, about 2,400 people had applied for coverage through the federally-managed program, which is administered by the U.S. Department of Health and Human Services. The federally-managed program is in effect in the 22 states that have declined to operate their own program. Of the 2,400 applications to the federal plan, 750 had been approved, and about 140 people were enrolled and getting coverage.
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Healthcare reform legislation to impact small businesses
by Steven Roark,
LeMaster Daniels
For owners of small businesses and their workers, the recently enacted health reform legislation has some key provisions to pay attention to. Here is an overview of the provisions in the new law:
Tax credits to certain small employers that provide insurance. The new law provides small employers with a tax credit (i.e., a dollar-for-dollar reduction in tax) for non-elective contributions to purchase health insurance for their employees. The credit can offset an employer's regular tax or its alternative minimum tax (AMT) liability.
READ MORE |
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Associated Industries
1206 N. Lincoln, Suite 200
Spokane, WA 99201-2559
P: 509.326.6885,
Toll Free: 800.720.4291 |
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