NFIB working to slow Big Labor's agenda ahead of first legislative cut-off date on January 31
State Director Patrick Connor reports from Olympia on the small business agenda for the legislative and political week ending January 19.
SMALL BUSINESS DAY – Save the date!
NFIB will hold its annual Small Business Day at the Capitol on Tuesday, February 20, at the DoubleTree by Hilton. The hotel is located at 415 Capitol Way North, Olympia, Washington, 98501, near the Farmers Market. Stay tuned for details.
The Legislature
Because this is a short session, legislative committees are moving quickly to hear and approve bills in advance of the first policy committee cut-off date, January 31.
Despite that looming deadline, lawmakers are still introducing bills, but at a somewhat slower pace. NFIB is now tracking 120 bills that could impact small businesses if enacted. Here is a summary of bills where NFIB testified or signed-in its position during the week.
HB 1894, SB 5897, Business License System reserve account
NFIB testified in favor of these Department of Revenue-requested companion bills to replace the current $1 million statutory cap with a three-month operating expense threshold. This adjustment is needed to keep pace with inflation and other factors that drive cost increases for programming and maintenance of the state’s online Business Licensing Service portal. The House bill has been approved by the Finance Committee and sent to the Rules Committee. A public hearing was held on the Senate bill, but it has not been scheduled for executive action. NFIB supports the bills.
HB 1905, SB 5894, Equal pay for every protected class
The bill would “…prohibit an employer from discriminating in compensation and career advancement opportunities against similarly employed employees based on the employee’s age, sex, marital status, sexual orientation, race, creed, color, national origin, citizenship or immigration status, honorably discharged veteran or military status, or the presence of any sensory, mental, or physical disability or the use of a trained dog guide or service animal by a person with a disability.” This conduct is already a violation of the state’s law against discrimination, administered by the state Human Rights Commission. The bill appears to do little more than double up on employer liability by making the same actions punishable under the state equal pay act, administered by the Department of Labor & Industries. So, employers could be investigated and cited by two agencies at once. Moreover, the House Labor Committee amended its version to allow a worker to file multiple complaints based on each “protected class” of which the worker is a member. The bills do not contemplate which agency’s decision controls in the event L&I and the HRC come to different conclusions about the same case. It appears a business owner could be found guilty and punished by one agency while the other finds the employer not guilty for the same action. House Labor approved its amended bill on January 19. The Senate Labor Committee held a public hearing on January 15, but has not scheduled its version for executive action. NFIB opposes both bills.
HB 1959, Assessing paid family and medical leave program premiums on employers with fewer than 50 employees
NFIB testified in opposition to this bill, which would renege on a carefully negotiated compromise exempting the state’s smallest businesses from paying employer premiums in exchange for being ineligible to received subsidies for training and equipping replacement workers. The Employment Security Department’s own data shows claims filed by workers employed by these small businesses are roughly 10 percent less than their share of the state’s workforce. Conversely, big businesses, with 500+ employees, are overutilizing the program compared to their workforce size. This year’s PFML premium rate decrease is further evidence this bill is unnecessary. The bill is scheduled for executive action in House Labor on January 24. NFIB opposes the bill.
HB 1991, SB 5793, Paid sick leave for snow days
NFIB signed in opposed to both bills this week. These companion bills modify the definition of “family member” to basically include any individual where some “expectation of care” exists within a family or household. The bill also allows workers to use paid sick leave if a school or childcare facility is closed due to weather conditions. No illness required. The bills are scheduled for executive action on January 22 in the Senate labor committee and January 26 in House Labor. NFIB opposes both bills.
HB 2100, Mass layoff worker surveys
NFIB is working with the sponsor and Employment Security Department on amendments to improve implementation of this proposal to require demographic surveys of workers facing termination or layoffs under the federal WARN Act. That law requires certain notifications and distribution of materials to workers in situations where an employer with 100 or more employees plans to lay off or terminate at least 50% of its workforce. NFIB has proposed that ESD develop and collect responses to an online survey, rather than have employers distribute and collect surveys, then deliver completed surveys to the department. We have also suggested the bill allow for virtual meetings between remote workers and ESD’s “rapid response partners.” The bill is scheduled for executive action on January 26, but proposed amendments have not been posted yet. NFIB supports the bill if amended.
SB 5770, Providing state and local property tax reform
In this case, “reform” means raising the annual property tax cap from one percent to three percent. Business owners are particularly disadvantaged in property tax levy decisions since the owner might not live in the jurisdiction where the business is located, thus ineligible to vote in those elections. NFIB opposes the bill.
NFIB was able to sign-in supporting all four bills on the House Labor Committee’s January 16 hearing schedule. We don’t recall that happening before. NFIB supports:
- HB 2087, Objections to apprenticeship programs – Non-union apprenticeship programs have routinely been (indefinitely) stalled or killed by a state authorizing board dominated by organized labor. This bill would modify the process in an effort to reduce and punish unfounded objections by (union) programs seeking to prohibit competition.
- HB 2097, Wage recovery task force – NFIB negotiated an amendment with the sponsor ensuring small-employer representation on a task force that would study ways to improve the state’s process for assisting workers whose wages have been wrongfully withheld. The bill is scheduled for executive action on January 24.
- HB 2127, Concerning workers’ compensation incentives to return to work – This L&I-requested bill would modify workers’ compensation return-to-work policies and increase reimbursement amounts in an attempt to make it more attractive and easier for employers to create light-duty positions or to modify duties or workstations for qualifying injured workers. This bill is also scheduled for executive action on January 24.
- HB 2136, SB 6111, Concerning prevailing wage sanctions, penalties, and debarment – This bill, requested by the attorney general, would prohibit participation in public works projects by businesses utilizing fraudulent successorship schemes. Basically, this occurs when a contractor cited for misconduct transfers the business assets, on paper, to an accomplice and continues doing business under a different name. The House bill is scheduled for executive action on January 26. The Senate version has not been scheduled for hearing.
Speaking of the Senate Labor & Commerce Committee, it advanced two significant bills this week that NFIB opposes.
- HB 1893, SB 5777, Unemployment insurance for striking workers – This bill would have all employers subsidize unemployment benefits for striking workers, relieving or at least heavily reducing union obligations to fund strikes from their own war chests. The Senate bill has been sent to the Rules Committee. The House bill is scheduled for executive action on January 24. Be on the lookout for an Action Alert once these bills are eligible for a floor vote.
- HB 1940, SB 5778, Restricting employers’ ability to communicate with workers – Billed as worker rights legislation, these companion bills are effectively a gag-order on employers wishing to communicate with workers regarding unionization, harmful legislation and regulations, political candidates, or “religious matters.” The Senate bill has been sent to Rules. The House bill is scheduled for executive action on January 24.
On a positive note, on January 18, Rep. Larry Springer and 17 co-sponsors introduced NFIB’s proposed HB 2430, waiving business licensing handling and delinquency fees for eligible businesses. Our bill would allow businesses closed by government order due to a disaster or declared emergency up to 36 months to repair, rebuild, and reopen without facing penalties or higher filing fees when renewing a business licenses that lapsed due to that disaster or emergency. Surprisingly, the bill was referred to the House Consumer Protection & Business Committee, not House Finance. Fortunately, committee chair Rep. Amy Walen has scheduled our bill for hearing on Friday, January 26. Please sign-in “pro,” not testifying here. Click “I would like my position noted for the legislative record,” then fill out the required information. For “organization,” please enter your business name.
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