WASHINGTON STATE WILL SEE FOUR BILLS INTRODUCED ON BUILDING DECARBONIZATION
Even though NWHPBA was able to work with others in the building community to defeat HB 1184 last year, we have been provided four new draft bills to review that are attempting to accomplish a similar goal of decarbonizing buildings in the state. Rep. Alex Ramel (D-Bellingham) is hosting stakeholder meetings on a package of bills for introduction this January.
The four bills take on various aspects of building decarbonization. One makes changes to the state’s energy code, allowing a single stretch or “reach” code for local jurisdictions who choose to be more stringent than the state energy code, removing language giving the State Building Code Council enforcement flexibility if parts of the code are found to be economically or technologically unfeasible, and changes timelines and goals for meeting state greenhouse gas and “net-zero” requirements. A second bill increases expands existing performance standards for buildings with 50,000 square feet or more down to 20,000 square ft. The third bill creates regulatory authority for public utilities to engage in “targeted electrification” projects and the final bill – the “Clean Heat Plan” – requires gas utilities to set up plans for transitioning away from fossil fuels.
NWHPBA has been in the stakeholder meetings on these bills providing feedback and as a result, there is language in the Clean Heat Plan requiring prioritization of fossil fuels for areas with frequent electrical outages. However, that does not help with woodstove changeout programs and options for all state representatives. In addition, there are no changes in the State Energy Code that prioritize the availability of secondary heating sources in all buildings and therefore would be little incentive to retain natural gas connections for heating and cooking appliances due to expense.
We will continue to work with stakeholders and legislators as these bills are refined prior to the start of the session. Once they are introduced as final bills, we will take a position and engage our grassroots.
INITIATIVE TO REPEAL WASHINGTON’S LONG TERM CARE MANDATE GATHERING SIGNATURES
If you have employees in the state of Washington – or if you are a W2 employee in the state of Washington – then you are subject to the new mandate to purchase long term care insurance either through a new payroll tax or by purchasing on your own (before November 1) and gaining an exemption from the payroll tax.
The bill was passed two years ago on mostly party-line votes in an attempt to find a way to fund long-term care – an expense that is expected to tax the state Medicaid and social service systems as the baby boom generation ages. Unless they have obtained an exemption from the State Employment Security Department, as of January 1, 2022, there will be a deduction of .58 cents for every $100 earned from every employees’ payroll.
Obtaining exemptions is showing to be very slow as the state’s Employment Security Department seems to have difficulty with this program in addition to administrative problems with UI and Paid Family Leave. Long Term Care insurers have effectively left the state so options for exemptions were difficult to find. Legislators from both parties are talking about changes – with many Republicans calling for full repeal and many Democrats calling for other changes.
The business community is looking for a number of options and many business organizations will be getting behind repeal efforts. In addition, we expect to see lawsuits filed due to several law violations identified with this type of mandate. Finally, there is an initiative gathering signatures now to try and force the Legislature to take aggressive repeal action.
If you want to find out more about this initiative and help gather signatures for repeal, go to https://www.yeson1436.com. NWHPBA will be working in coalitions to eliminate this mandate for you and your employees.
GENERAL WASHINGTON STATE BUSINESS NEWS:
Minimum Wage Will Rise to $14.49 Per Hour in 2022
Salary threshold for overtime-exempt employees will increase to $52,743.60 a year for both large and small employers.
What is changing?
- The Washington state minimum wage is increasing from $13.69 to $14.49 per hour.
- The minimum exempt annual salary is increasing to $52,743.60.
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For those who qualify as agricultural workers (other than dairy), overtime pay will be required for over 55 hours of work in a week.
- The local minimum wage for Seattle is rising to $17.27 per hour. Small employers (500 or fewer employees) whose employees receive at least $1.52 per hour in medical benefits or tips have a minimum wage of $15.75 per hour.
- The local minimum wage for SeaTac is rising to $17.53 per hour for hospitality and transportation industry employers.
When does it go into effect?
Whom does it affect?
How else might this affect my business?
- The minimum salary thresholds to qualify as overtime-exempt salaried employees are a multiplier of the minimum wage.
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This impacts “white collar” positions held by executive, administrative, and professional workers as well as computer professionals and outside salespeople.
- For 2022, the overtime multiplier rate (1.75 times the minimum wage) is the same for both small and large employers.
- To be exempt from overtime in 2022, an employee must earn at least $52,743.60 a year ($1,014.30 a week).
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Computer professionals who are paid by the hour have a different threshold.
- Cities are able to set minimum wages higher than the state’s, and both Seattle and Sea-Tac have higher wages.
What decides the rate of increase?
- State law mandates L&I calculate the minimum wage based on the federal Bureau of Labor Statistics (BLS) Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
- L&I compares the CPI-W from August of the previous year to the index for August of the current year to make the calculation.
Why did the rate rise this amount?
- BLS attributes the 5.83 percent CPI-W increase to more expensive gas, housing, household furnishings, and food.
Where can I find more information?
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Visit L&I's Minimum Wage page for details or call the Employment Standards program at 360-902-5316 or 1-866-219-7321.
