TOP STORIES
Jobless rate hits 26 year high of 9.5 percent as wages also decline
Nationwide, employers cut 467,000 jobs last month according to the U.S. Department of Labor. This decrease was much more than expected, and the unemployment rate shot to a 26-year high of 9.5 percent. Making things even worse, wages shrank to their lowest amount in almost a year and are attributable to pay freezes, furloughs, reduced work hours and pay cuts. The average work week last month dropped to 33 hours, which is the lowest on record going back to 1964. Also, the Institute for Supply Management announced today that real estate, finance and insurance and food and hotel companies were among the six industries that reported growth last month. Its services index, based on a survey of its members and covers new orders, employment, inventories and other indicators, rose three percentage points in June from 44 to 47. The 11 sectors that posted declines included agriculture, retail, health care, educational services, and corporate support and management. Utilities were flat. Meanwhile, workers' comp and UI benefits — employers’ the two biggest overhead costs — just went up 3.4 percent July 1, based on the totally unrealistic inflator of the state average annual wage, which supposedly went up 3.4 percent over the last year. Read more on AWB’s blog, Olympia Business Watch.


State Supreme Court sides with employees in punitive damages case
Last Friday, Washington’s Supreme Court held 6-3that an employer's involuntary Chapter 7 bankruptcy proceeding, in which its assets are under court supervision and it lacks any legal ability to pay wages, still counts as failing to pay wages "willfully and with intent to deprive" and opens employers to the imposition of punitive damages. AWB filed a “friend of the court” brief arguing for the common-sense view that legal inability to pay aclaim should not be mistaken for an intentional refusal to pay it.Employees are always and rightly entitled to the full wages they have earned. Unfortunately, the court in this case expanded what was meant to be punitive damages for intentional misconduct into a kind of personal payroll guarantee even if an employer has no legal claim to the assets from which wages would be paid because of bankruptcy. Thatis a troubling precedentin troubling economic times. Read more on AWB’s blog, Olympia Business Watch. For more information, contact AWB’s Kris Tefft.


Washington gears up for possible return of swine flu
It’s summer now, but state health officials are thinking ahead to fall and what could be a very busy flu season. To help prepare, the Department of Health announced today that Gov. Chris Gregoire has authorized emergency funding that includes $700,000 to buy additional antiviral medications to go with supplies already received from the federal Strategic National Stockpile. The allocation also includes $150,000 that will be used to cover part of the costs of the response this spring when the pandemic flu strain — recently declared the first global flu outbreak in 41 years — was detected in Washington."It's wise to prepare for whatever the flu season brings this fall by ordering more antiviral medications now," Gregoire said. AWB is working with the state’s Emergency Management Division to provide businesses with updates and resources on the virus outbreak. Read more on AWB’s blog, Olympia Business Watch.


KEY HEARINGS, MEETINGS
Ecology Director Manning at next Climate Change Subcommittee meeting, July 7
AWB’s Climate Change Subcommittee will meet Tuesday, July 7, from 9–11 a.m., at AWB. Ecology Director Jay Manning will give details on the Department of Ecology plans to implement Gov. Gregoire’s executive order on climate change. The executive order signed last month contains many of the same elements as SB 5735 and HB 1819, which failed this session. The order directs state agencies to continue participating in the Western Climate Initiative, develop emission reduction strategies and benchmarks aimed at meeting the state’s 2020 emission reduction targets and establish an agreed order that will require TransAlta’s Centralia coal-fired power plant to meet the state’s emissions performance standard by 2025. The subcommittee will also discuss HR 2454, the American Clean Energy and Security Act, which passed the U.S. House of Representatives last week. For more information, contact AWB’s Grant Nelson.


Tim Eyman at next Tax and Fiscal Policy Council meeting on July 8
The next meeting of the AWB Tax and Fiscal Policy Council is Wednesday, July 8, 9:30 a.m.- noon, at Deloitte (925 Fourth Avenue, Suite 3300, Seattle). Speakers include Gary Davis from the Department of Revenue to discuss digital goods implementation and Tim Eyman to discuss Initiative 1033, which concerns state, county and city revenue. We will continue discussions on the resellers’ permit requirements and monthly e-filer electronic payment requirements.CPA continuing education credits are available. For more information, contact AWB’s Amber Carter.


Workers’ Comp Coalition meeting at AWB July 8
The next meeting of the employers’ workers’ compensation coalition is taking place Wednesday, July 8, 9:30- noon at AWB in Olympia. The agenda will include a review of the rate-setting information shared at the last Workers’ Compensation Advisory Committee as well as a discussion and update on continuing issues. For more information, contact AWB’s Kris Tefft.


Draft industrial stormwater permit now available for review, comments
The Department of Ecology’s revised draft Industrial Stormwater General Permit is now available for review and public comment until Wednesday, July 15. Ecology intends to issue the final permit on Oct. 21. The draft permit, fact sheet, workshop schedule and other information is available online. The proposed permit signals the department’s intent to adopt the most stringent industrial stormwater permit on the planet. If adopted, the permit will be especially onerous and costly for small businesses, requiring expensive and untested stormwater control technology to meet standards that cannot be achieved. For more information, contact AWB’s Grant Nelson.


Immigration Works Washington meeting at AWB July 21
The next meeting of Immigration Works Washington, our state’s employer-side immigration reform coalition, is taking place Tuesday, July 21, 10 a.m.- noon, at AWB. The agenda is under development and will include a review of recent federal legislative, regulatory, and judicial activity as well as an assessment of coalition-building opportunities in this Washington — and the other one. For more information, contact AWB’s Kris Tefft.


Hammond, Fromhold at AWB Transportation Committee meeting on July 23
AWB’s Transportation Committee will meet Thursday, July 23, 10 a.m.- noon, in Seattle.Invited guest speakers include state Secretary of Transportation Paula Hammond, who will provide an update on transportation stimulus dollars and the progress of the Nickel and Transportation Partnership Act projects. In addition, former Vancouver-area Rep. Bill Fromhold will have an update on the Columbia River Crossing project.Other discussion topics include the recent transportation partnership advisory group formed by the Washington Transportation Commission and a preliminary preparation for the 2010 session. For more information, contact AWB’s Amber Carter.


OTHER NEWS
Applications sought for Board of Industrial Insurance Appeals chair
AWB, in cooperation with the Washington State Labor Council, AFL-CIO, is presently seeking résumés and references from interested individuals who would like to be considered for appointment as chair of the Board of Industrial Insurance Appeals.The BIIA is a quasi-judicial body governed by the chair, who must be a member of the Washington State Bar Association and represents the public and two other board members representing employers and workers, respectively. The function of the BIIA is to hear and resolve appeals related to workers’ compensation, workplace safety, and crime victims’ compensation. The chair of the BIIA is appointed by the governor with advice and consent of the state senate, and serves for a six-year term. Applications must be received by 5 p.m. Friday, July 31. For more information and a copy of the position announcement, contact AWB’s Kris Tefft.


Grant money available from L&I for safety and health improvements
The Department of Labor & Industries is accepting new grant applications for improving safety and health at Washington workplaces. A total of $4.1 million will be made available during the next biennium for Safety and Health Investment Projects (SHIP) grants for projects that seek to prevent workplace injuries and illnesses, save lives, and educate workers and employers about workplace hazards and safe workplace practices. Priority will be given to proposals that involve cooperation between employers and employees or their representatives. AWB’s Grant Nelson serves on the department’s SHIP Advisory Committee that will review and help select grant recipients from hundreds of applications from organizations eligible to apply for grants, including trade and business associations, labor organizations, employers, employee organizations, joint labor/management groups and groups of employees. Completed applications must be received in the SHIP office or post marked not later than Aug. 31.The SHIP program is hosting grant information sessions in Olympia. For more information, contact Cathy Hakola in the department’s SHIP program office at 360.902.5588 or invest@lni.wa.gov 


Order your copy of Washington – The Nature of Innovation
AWB is pleased to offer a beautiful new custom book, Washington – The Nature of Innovation, promoting the economic strengths that make Washington unique. Written by Pulitzer Prize–nominee Bob Condor, the book offers an insightful look at Washington’s storied arts and cultural scene, its universities and colleges, its recreation opportunities and professional sports, and the other lifestyle offerings that contribute to the state’s unbeatable quality of life. The book also discusses Washington’s diverse and robust industries and their impact on the state’s economy and features profiles of companies and organizations that have contributed to Washington’s economic development and success. The hardcover coffee table book is available for $49.50 to AWB members ($59.50 for non-members) and can be purchased by contacting AWB’s Jennifer Costello at 800.521.9325


Federal recovery funds available for industrial energy efficiency improvements
The U.S. Department of Energy recently announced the availability of $156 million in federal recovery funding for energy efficiency improvements in the industrial sector. There is a very quick turnaround on these funds, and proposals are due Tuesday, July 14. DOE is looking for shovel-ready projects that will help create or preserve jobs while reducing industrial energy use. More information is available online or by contacting AWB’s Grant Nelson.


AWB EVENTS & RESOURCES
Remember: Federal minimum wage rate increases on July 24
The current federal rate of $6.55 per hour will increase to $7.25 per hour on Friday, July 24. All covered employers, regardless of size, are required to post the most recent minimum wage poster. To purchase an updated federal poster, contact AWB’s Jennifer Costello.


Don’t miss out on AWB’s July publications sale
Right now, AWB members can take 20 percent off their purchase of all H.R. guides and handbooks. These publications are useful tools to help employers prevent problems in the H.R. area. All guides are Washington specific (covering state and federal laws), written in plain English, include checklists, sample policies or forms and fully indexed so you can find the answers you’re seeking quickly and easily. For a complete listing of publications and prices, click here. To order, contact AWB’s Jennifer Costello and mention the Fast Facts discount!


H.R. corner: What’s your company’s social media policy?
A growing concern for companies of all sizes and types is employees' use of social media. Do you have a social media policy in place for your office? Also, June is typically the month when many companies start mobilizing for harassment training. Read more about these issues online and get our free Training Tips and Investigation Workbook, offered through our partnership with emTRAiN H.R. compliance trainers. For more information about AWB’s HR training and education programs, contact AWB’s Jennifer Davis.


Employment Concerns in a Challenging Economy Webinar — Aug. 6
Today’s tough economy poses unique challenges for employers of all sizes and types. Join us for a 90 minute Webinar, on Thursday, August 6, that will cover topics including properly handling terminations and layoffs, severance packages and agreements, unemployment insurance issues, and changes to COBRA continuation of health coverage. To register for this informative Webinar, please click here or contact AWB’s Jennifer Costello.


Successfully Navigating Leaves of Absence Laws Webinar — Aug. 19
A widening gap between state and federal leave requirements has further complicated the already cumbersome legal requirements for employers.This 90 minute Webinar, on Wednesday, Aug. 19, will benefit small businesses owners, HR professionals and managers of all kinds by providing a look at the latest developments in state and federal leave laws as well as potential strategies for dealing with them effectively. For additional information or to register, click here or contact AWB’s Jennifer Costello.


AWB’s 20^th Annual Policy Summit Sept. 22-24 at Suncadia Resort in Cle Elum
The 2009 AWB Policy Summit is designed to help reduce the uncertainty of today’s tumultuous economic times. We've assembled a team of national and local experts to chart a course through the turbulence, including pollster John Zogby and former presidential adviser David Gergen. Put this on your calendar today! To register, contact AWB’s Jennifer Costello.


THEY SAID IT
"The majority incorrectly holds that [the employer] willfully failed to pay their employees. In fact the assets of [employer] were seized, and they could not paytheir employees even if theyhad wanted to pay them. The bankruptcy court's conversion of the proceeding negated [the employer's] willingness to pay. . . . Their failure to pay was not volitionalor willful but rather court-imposed." Justice Richard Sanders, in his dissent on last week’s punitive damages ruling in Washington’s Supreme Court.


This Week's President's Perspective: Medical Malpractice Changes Must Accompany Health Care Reforms