EAP Pre-Draft Proposed Rule Language (Second Version)

(Submitted on 12/7/18 by Christopher Peacock, Rosario Resort & Spa)

My name is Christopher Peacock. I am General Manager of Rosario Resort & Spa and we are proud to employee 90 people year 'round and 170 in the summer season. We are the largest employer on Orcas Island.

If these rules were adopted, we would most likely close our operation in the winter months and only become a seasonal summer resort, as these minimum salary proposals are simply not sustainable 'year round in the San Juan Islands.

I appreciate the opportunity to express my thoughts on the updated pre-draft rules for the Executive, Administrative and Professional exemptions from the state Minimum Wage Act, including the update of overtime exemptions and the salary threshold.

I am a hospitality industry operator who is proud to provide jobs at all levels to people in my community. The hospitality industry is an industry of opportunity that offers everything from first-time jobs to lifelong careers. I want to continue to invest in my employees and provide them with opportunities to advance their careers in hospitality or elsewhere.

I am very concerned about tying the salary overtime threshold to a range of 2 – 2.5 times the minimum wage or a salary of $56,000 - $70,000 and adjusted annually. Adopting a salary threshold tied to any multiplier of the state minimum wage will create a wage gap between my employees and management and will ultimately harm jobs by eliminating middle-management positions.

I appreciate the Department’s willingness to consider a phase in, but the two suggested approaches perpetuate the challenges created by such a drastic increase in the salary threshold. I request the Department not pick winners and losers based on geographic location or size of business. Rather, the phase in should span at least four years to give all businesses ample time to implement changes and update their business practices. Over the last three years the hospitality industry has continued to struggle with the impacts of a 40 percent increase in the minimum wage contained in I-1433. To be clear, with these new pre-draft rules the Department is suggesting a nearly 300 percent increase in wages for our employees. As an employer, this increase will likely have a negative impact on the career ladder and opportunities in my business.

I ask L&I to align any proposed changes to these exemptions with federal rules. As a business operator, we need alignment at the local, state and federal levels of government to help reduce confusion.

I am a proud member of my community and want to continue to provide 'year round jobs for employees at all levels, including middle-management positions. I ask for L&I to consider the impact of these pre-draft rules on the hospitality careers and our community and economy.

(Submitted on 12/7/18 by David Hawthorne, Pacific Bells, LLC)

My name is David Hawthorne. I am the Chief People Officer for Pacific Bells, LLC and am proud that our organization employs more than 12,000 people across the country and over 1,000 people in Washington.

If these rules are adopted, the Department would negatively impact the development and advancement of hundreds of Washington employees.

I appreciate the opportunity to express my thoughts on the updated pre-draft rules for the Executive, Administrative and Professional exemptions from the state Minimum Wage Act, including the update of overtime exemptions and the salary threshold.

I am a hospitality industry operator who is proud to provide jobs at all levels to people in my community. The hospitality industry is an industry of opportunity that offers everything from first-time jobs to lifelong careers. I want to continue to invest in my employees and provide them with opportunities to advance their careers in hospitality or elsewhere.

I am very concerned about arbitrarily tying the salary overtime threshold to a range of 2 – 2.5 times the minimum wage or a salary of approximately $56,000 - $70,000 and adjusted annually. Adopting a salary threshold tied to any multiplier of the state minimum wage will create a wage gap between employees and management and will ultimately harm job growth and development opportunities by eliminating middle-management positions.

I appreciate the Department’s willingness to consider a phase in, but the two suggested approaches perpetuate the challenges created by such a drastic increase in the salary threshold. I request the Department not pick winners and losers based on geographic location or size of business. Rather, the phase in should span at least four years to give all businesses ample time to implement changes and update their business practices. Over the last three years the hospitality industry has continued to struggle with the impacts of a 40 percent increase in the minimum wage contained in I-1433. To be clear, with these new pre-draft rules the Department is suggesting a nearly 300 percent increase in wages for our employees. As an employer, this increase will likely have a negative impact on the career ladder and opportunities in my business, not to mention the financial viability of continuing to operate in the state.

I ask L&I to wait for the federal DOL to review and adopt its rules so as not to harm Washington's competitive status with our neighbors. If the Department strongly feels it must act, please align any proposed changes to these exemptions with federal rules. As a business operator, we need alignment at the local, state and federal levels of government to help reduce confusion.

I am a proud member of my community and want to continue to provide jobs for employees at all levels, including middle-management positions. I ask for L&I to consider the impact of these pre-draft rules on the hospitality careers and our community and economy.

(Submitted on 12/7/18 by James Pulver, Hotel Max)

My name is James Pulver I operate the Hotel Max and am proud to employ 65 people.

I appreciate the opportunity to express my thoughts on the updated pre-draft rules for the Executive, Administrative and Professional exemptions from the state Minimum Wage Act, including the update of overtime exemptions and the salary threshold.

I am a hospitality industry operator who is proud to provide jobs at all levels to people in my community. The hospitality industry is an industry of opportunity that offers everything from first-time jobs to lifelong careers. I want to continue to invest in my employees and provide them with opportunities to advance their careers in hospitality or elsewhere.

I am very concerned about tying the salary overtime threshold to a range of 2 – 2.5 times the minimum wage or a salary of $56,000 - $70,000 and adjusted annually. Adopting a salary threshold tied to any multiplier of the state minimum wage will create a wage gap between my employees and management and will ultimately harm jobs by eliminating middle-management positions.

I appreciate the Department’s willingness to consider a phase in, but the two suggested approaches perpetuate the challenges created by such a drastic increase in the salary threshold. I request the Department not pick winners and losers based on geographic location or size of business. Rather, the phase in should span at least four years to give all businesses ample time to implement changes and update their business practices. Over the last three years the hospitality industry has continued to struggle with the impacts of a 40 percent increase in the minimum wage contained in I-1433. To be clear, with these new pre-draft rules the Department is suggesting a nearly 300 percent increase in wages for our employees. As an employer, this increase will likely have a negative impact on the career ladder and opportunities in my business.

I ask L&I to align any proposed changes to these exemptions with federal rules. As a business operator, we need alignment at the local, state and federal levels of government to help reduce confusion.

I am a proud member of my community and want to continue to provide jobs for employees at all levels, including middle-management positions. I ask for L&I to consider the impact of these pre-draft rules on the hospitality careers and our community and economy.

(Submitted on 12/6/18 by Tiffany Turner, Adrift Hotels SPC)

My husband and I own a boutique hotel business in Pacific County. We currently own and manage 3 hotels (12, 15, and 84 rooms) and 2 restaurants on the WA coast and 1 hotel (22 rooms) on the Oregon coast. We have around 100 employees, about a quarter of those are salaried. Salaries in our company range from 40K-75K per year. Our compensation model is high for our area and for our industry. We are a company that believes in work/life balance and encourage our employees to not work more than 40-45 hrs/week on a regular basis. We've been champions of many changes in rule and law that are good for workers (and I believe ultimately good for business) such as Paid Sick and Safe Leave, Paid Family Medical Leave, and increase in the Min wage.

Ultimately, I support the effort to increase the current salary threshold for overtime. However, I urge the department to seriously consider the impact in rural economies vs urban and suburban economies. I fear that if this isn't managed correctly it will have a significantly detrimental impact in the short term on rural economies and small businesses. If however, there is thoughtful consideration to the differences that exist in rural economies this can have a positive impact on workers across the state.

Ideally, I would like to advocate for the threshold to be regionalized based on economic factors in local economies (similar to Oregon's minimum wage law). However it is my understanding that the department is not considering this.

It is imperative that a thoughtful phase in for rural economies be considered. California's phase in is something that many small businesses would be able to budget for over multiple years. I would recommend implementing a reasonable stretch jump in year one and the an incremental increase from there until the threshold is reached (IE: 1.5 times the min wage and then increase that threshold to 1.6 the following year, 1.7 in year 3, 1.8 in year 4, 2% in year 5).

There are also some ripple effects that I see in implementing this that will provide challenges that I'd like to bring up that may or may not be able to be addressed in these rule changes.
1. We have a bookkeeper who is salaried at 42K currently. She is already very well compensated for the job that she is doing. She has her kids one week on and one week off. On the weeks that she has her kids, she works 30 hrs/week, and on the week that she doesn't have her kids, she works 50 hrs/week. She will not be able to do this under the new rules.
2. We compensate our restaurant management team with salaries and monthly bonuses based off of KPI's such as food and labor cost in the restaurant. With their bonuses, they fall above the salary threshold. Is there a way to consider bonuses in overall compensation?
3. We have a few managers who make in the mid 40s and only work 40 hours per week. Although they are salaried because sometimes they need to answer their phones from home to deal with an issue. How do we accommodate this if they do not meet the threshold?

I would be happy to talk to anyone about the scenarios that I see playing out in our small business as well as in rural economies. Please feel free to contact me at any time via email or phone if you'd like to discuss further.

(Submitted on 12/6/18 by Kelly Pryor, Domino's Pizza)

My name is Kelly Pryor I own/operate 2 Domino’s Pizza stores and am proud to employ 60 people in Spokane Wa.

Thank you for the opportunity to submit comments on behalf of the updated pre-draft rules for the Executive, Administrative and Professional exemptions from the state Minimum Wage Act including the update of overtime exemptions and the salary threshold.

We understand that an update on this topic is appropriate; however, I would like to raise several concerns with elements of the updated pre-draft proposal. My first concern is about the future of the hospitality industry and its career ladder.

As a business operator, I am proud to be able to invest in my employees, see them gain valuable skills and transfer them into leadership opportunities as they advance their careers. I am concerned that tying the salary overtime threshold to a range of $56,000 - $70,000 adjusted annually or 2 – 2.5 times the minimum wage will discourage my ability to provide more upward career growth opportunities. Adopting any multiplier of the minimum wage would create a wage gap between my employees and management. Undercutting and harming my employees by removal of the middle-management career ladder rungs would not benefit them, my business or the state economy.

I appreciate the Department’s willingness to consider a phase in, but the two suggested approaches perpetuate the challenges created by such a drastic increase in the salary threshold. I request the Department not pick winners and losers based on geographic location or size of business. Rather, the phase in should span at least four years to give all businesses ample time to implement changes and update their business practices. Over the last three years the hospitality industry has continued to struggle with the impacts of a 40 percent increase in the minimum wage contained in I-1433. To be clear, with these new pre-draft rules the Department is suggesting a nearly 300 percent increase in wages for our employees. As an employer, this increase will likely have a negative impact on the career ladder and opportunities in my business.

I am asking L&I to wait for the federal government to update their rules before moving forward with this process. We need alignment at the local, state and federal levels of government.

I appreciate the opportunity to be a part of the solution and submit my comments to you.

(Submitted on 12/5/18 by Calvin White, Kentucky Fried Chicken)

My name is Calvin White. I own/operate four Kentucky Fried Chicken Restaurants in the state of Washington and am proud to employ 95 people in our great state.

If these rules were adopted, I would have to revamp all of my compensation programs for all of my management personnel. Presently they are very happy with our compensation plan. If I have to revise it, the compensation plan would take these employees to hourly employees with fewer benefits and less compensation based on their performance.

I appreciate the opportunity to express my thoughts on the updated pre-draft rules for the Executive, Administrative and Professional exemptions from the state Minimum Wage Act, including the update of overtime exemptions and the salary threshold.

I am a hospitality industry operator who is proud to provide jobs at all levels to people in my community. The hospitality industry is an industry of opportunity that offers everything from first-time jobs to lifelong careers. I want to continue to invest in my employees and provide them with opportunities to advance their careers in hospitality or elsewhere.

I am very concerned about tying the salary overtime threshold to a range of 2 – 2.5 times the minimum wage or a salary of $56,000 - $70,000 and adjusted annually. Adopting a salary threshold tied to any multiplier of the state minimum wage will create a wage gap between my employees and management and will ultimately harm jobs by eliminating middle-management positions.

I appreciate the Department’s willingness to consider a phase in, but the two suggested approaches perpetuate the challenges created by such a drastic increase in the salary threshold. I request the Department not pick winners and losers based on geographic location or size of business. Rather, the phase in should span at least four years to give all businesses ample time to implement changes and update their business practices. Over the last three years the hospitality industry has continued to struggle with the impacts of a 40 percent increase in the minimum wage contained in I-1433. To be clear, with these new pre-draft rules the Department is suggesting a nearly 300 percent increase in wages for our employees. As an employer, this increase will likely have a negative impact on the career ladder and opportunities in my business.

I ask L&I to align any proposed changes to these exemptions with federal rules. As a business operator, we need alignment at the local, state and federal levels of government to help reduce confusion.

I am a proud member of my community and want to continue to provide jobs for employees at all levels, including middle-management positions. I ask for L&I to consider the impact of these pre-draft rules on the hospitality careers and our community and economy.

(Submitted on 12/5/18 by Glenda Milliette, Campbell's Resort)

I am the Director of Accounting for Campbell's Resort in Chelan, Washington. We are one of the largest employers in our Eastern Washington community; a mid-sized hospitality business where we are proud that we employ 100 to 350 people depending upon the season.

If these rules were adopted as currently proposed, many employees in mid-career management positions would be negatively affected. These mid-career managers benefit from a position with a stable year around base salary in a highly seasonal hospitality job. The rules as proposed would eliminate these mid-career management positions and return them to the peaks and valleys of seasonal pay.

I wanted to make sure that our voice is heard in the rule making process for the Executive, Administrative, and Professional exemptions from the Minimum Wage Act, including overtime exemptions and an update of the salary threshold. As a member of Washington's hospitality industry, we are particularly interested in preserving our ability to provide employees with opportunities to advance their careers.

As written, the pre-draft rules propose to tie the minimum wage to the salary threshold to a range of $49,920 - $62,400 adjusted annually or 2 - 2.5 times the State minimum wage. Adopting a salary threshold tied to any multiplier of the minimum wage would erase those mid-career positions; leaving all managerial positions to upper management and would undercut the workforce in an already tough labor market.

Additional, we oppose any type of phase-in period because the result would still be the same with the salary threshold tied to a multiplier of minimum wage. These pre-draft rules would grow the urban/rural wage gap even further and grow the wage gap among industries.

We are proud to serve our community and provide all levels of jobs for our employees. We ask Labor and Industries to consider the overall economic impact and harm these updated pre-draft rules could have on our State's economy. The hospitality industry is not the only sector that may have to drastically shift because of the outcome of these rules.

Thank you for the opportunity to be engaged with this process through the submission of my comments

(Submitted on 12/5/18 by Ken Bester)

I operate a business in Washington state, specifically within the grocery, food and beverage industry. It is increasingly challenging to navigate labor laws that differ significantly federally, at the state level, and locally. A significant amount of our time is spent comparing and complying with numerous requirements on the same issue, just at different levels of government. This causes confusion for employers and employees, duplication issues, and a need for administrative policies that explain the difference between the federal, state and local rules.

I am proud to be able to invest in my employees, see them gain valuable skills and transfer them into leadership opportunities as they advance their careers. I am concerned that tying the salary overtime threshold to a range of 2 - 2.5 times the minimum wage will discourage my ability to provide more upward career growth opportunities. Adopting any multiplier of the minimum wage would create a wage gap between my employees and management. While the salary level needs to be adjusted, the proposed increase with no geographic considerations, automatic adjustments and only partial consideration of incentive pay will have a significant negative impact on the supermarket and convenience industry - a place where many associates receive their first management positions and no longer have to punch a time clock. In addition to a potential reduction in hours, workers that are reclassified as non-exempt employees will lose additional benefits; such as flexible scheduling, predictable take-home pay, and an increased opportunity to climb the ladder.

Our state law on salary overtime threshold is outdated and irrelevant because the federal requirement is higher. I agree that it needs to be updated, but the U.S. Department is Labor is already going through a process to update the federal law. The WA State Department of Labor and Industries should wait until the federal rulemaking process is finished, then align their rules with the federal rules. If the Department of Labor and Industries waits until the Department of Labor is finished, then Washington State will only need to go through the rulemaking process once instead of multiple times in order to meet the federal standard. This will save time and money for all parties involved in creating new state rules for the EAP exemptions.

I urge the department to pause rulemaking until the new federal standard is adopted, and then align our rules with the federal requirements.

Thank you for your time.

(Submitted on 12/5/18 by Trevor Blackwell)

My name is Trevor Blackwell. I own/operate 7 restaurants in Washington and am proud to employ over 300 people in our lovely state.

If these rules were adopted, It would drastically affect our businesses in a negative way. We would be required to move over 25 of our salaried managers with full benefits to a hourly position. This would have a negative impact on their income as well as we would limit their work hours to 40 per week. As an exempt salaried manager most of them make between $35,000- $44,000 as assistant managers and sous chefs. These wages would drop considerably with hourly positions as it would be split with others.

I appreciate the opportunity to express my thoughts on the updated pre-draft rules for the Executive, Administrative and Professional exemptions from the state Minimum Wage Act, including the update of overtime exemptions and the salary threshold.

I am a hospitality industry operator who is proud to provide jobs at all levels to people in my community. The hospitality industry is an industry of opportunity that offers everything from first-time jobs to lifelong careers. I want to continue to invest in my employees and provide them with opportunities to advance their careers in hospitality or elsewhere.

I am very concerned about tying the salary overtime threshold to a range of 2 – 2.5 times the minimum wage or a salary of $56,000 - $70,000 and adjusted annually. Adopting a salary threshold tied to any multiplier of the state minimum wage will create a wage gap between my employees and management and will ultimately harm jobs by eliminating middle-management positions.

Over the last three years the hospitality industry has continued to struggle with the impacts of a 40 percent increase in the minimum wage contained in I-1433. To be clear, with these new pre-draft rules the Department is suggesting a nearly 300 percent increase in wages for our employees. As an employer, this increase will have a negative impact on the career ladder and opportunities in my business.

I ask L&I to align any proposed changes to these exemptions with federal rules. As a business operator, we need alignment at the local, state and federal levels of government to help reduce confusion.

I am a proud member of my community and want to continue to provide jobs for employees at all levels, including middle-management positions. I ask for L&I to consider the impact of these pre-draft rules on the hospitality careers and our community and economy.

(Submitted on 12/5/18 by Scott Perry, Tuscano's Italian Kitchen)

My is Scott Perry and I currently own/operate Tuscano's Italian Kitchen in Monroe WA. I have owned/operated a small chain of restaurants in this state for 20 of my 33 years, employing over a 1000 people. Currently we have 50 employees and three of which are on salary. We simply cannot afford to have the lower salary cap at the proposed level of our opponents and must continue to push for the higher threshold. Tying this to the minimum wage is crazy and problematic. If these rules were adopted, I could not have anyone on salary, will reduce my staff/pay rates, potentially bringing harm to my mangers.I appreciate the opportunity to express my thoughts on the updated pre-draft rules for the Executive, Administrative and Professional exemptions from the state Minimum Wage Act, including the update of overtime exemptions and the salary threshold.

I am a hospitality industry operator who is proud to provide jobs at all levels to people in my community. The hospitality industry is an industry of opportunity that offers everything from first-time jobs to lifelong careers. I want to continue to invest in my employees and provide them with opportunities to advance their careers in hospitality or elsewhere.

I am very concerned about tying the salary overtime threshold to a range of 2 – 2.5 times the minimum wage or a salary of $56,000 - $70,000 and adjusted annually. Adopting a salary threshold tied to any multiplier of the state minimum wage will create a wage gap between my employees and management and will ultimately harm jobs by eliminating middle-management positions.

I appreciate the Department’s willingness to consider a phase in, but the two suggested approaches perpetuate the challenges created by such a drastic increase in the salary threshold. I request the Department not pick winners and losers based on geographic location or size of business. Rather, the phase in should span at least four years to give all businesses ample time to implement changes and update their business practices. Over the last three years the hospitality industry has continued to struggle with the impacts of a 40 percent increase in the minimum wage contained in I-1433. To be clear, with these new pre-draft rules the Department is suggesting a nearly 300 percent increase in wages for our employees. As an employer, this increase will likely have a negative impact on the career ladder and opportunities in my business.

I ask L&I to align any proposed changes to these exemptions with federal rules. As a business operator, we need alignment at the local, state and federal levels of government to help reduce confusion.

I am a proud member of my community and want to continue to provide jobs for employees at all levels, including middle-management positions. I ask for L&I to consider the impact of these pre-draft rules on the hospitality careers and our community and economy.

(Submitted on 12/5/18 by Victor Mena, Washington Gold Casinos)

My name is Victor Mena. I operate Washington Gold Casinos and am proud to employ over 1100 people in 2018.

If these rules were adopted, my company would incur an additional burden at a time where we are trying to navigate all the others placed in front of our business. From the new minimum wage increases to paid sick leave and starting in 2020 paid family leave. The expense to our business is massive with all of these increases we will loose over 50% of our net income and place some of our businesses along with a large number of people out of work. While I agree that the current threshold is not where it should be and might not be relevant as a number in our environment. Placing it at the proposed levels will further add a burden to the hospitality industry at a time where our costs are increasing at a staggering rate. In our business model we have no way to just raise prices to offset these increases and if we did we still could not pass through enough of these costs. The impact to small businesses in the hospitality and retail industries is massive and the pass through cost will slow down the economy as jobs will be cut because consumers will be priced out of visiting these businesses.

I appreciate the opportunity to express my thoughts on the updated pre-draft rules for the Executive, Administrative and Professional exemptions from the state Minimum Wage Act, including the update of overtime exemptions and the salary threshold.

I am very concerned about tying the salary overtime threshold to a range of 2 – 2.5 times the minimum wage or a salary of $56,000 - $70,000 and adjusted annually. Adopting a salary threshold tied to any multiplier of the state minimum wage will create a wage gap between my employees and management and will ultimately harm jobs by eliminating middle-management positions.

I appreciate the Department’s willingness to consider a phase in, but the two suggested approaches perpetuate the challenges created by such a drastic increase in the salary threshold. I request the Department not pick winners and losers based on geographic location or size of business. Rather, the phase in should span at least four years to give all businesses ample time to implement changes and update their business practices. Over the last three years the hospitality industry has continued to struggle with the impacts of a 40 percent increase in the minimum wage contained in I-1433. To be clear, with these new pre-draft rules the Department is suggesting a nearly 300 percent increase in wages for our employees. As an employer, this increase will likely have a negative impact on the career ladder and opportunities in my business.

I ask L&I to align any proposed changes to these exemptions with federal rules. As a business operator, we need alignment at the local, state and federal levels of government to help reduce confusion.

I am a proud member of my community and want to continue to provide jobs for employees at all levels, including middle-management positions. I ask for L&I to consider the impact of these pre-draft rules on the hospitality careers and our community and economy.

(Submitted on 12/4/18 by David Swails, Valley Auto Parts)

To Whom it May Concern,

I'm writing to express my concerns regarding the changes to the overtime law. Three years ago I purchased 2 Napa Auto Parts stores. I had to get 2 loans and risk everything that I own to make that happen. Not long after the minimum wage was increased from $9.47 to $11.00 and that forced me to eliminate 3 positions instantly. As the minimum wage continues to increase drastically I must continue to eliminate positions. With the positions that I cannot afford to eliminate it will cost my business an extra $50,000 in payroll per year. I simply cannot afford to keep this up unfortunately. I fear that I will have to reduce my work force even more which means it will be difficult to service my customers the way the deserve. This will mean that I will lose business. In a discussion with my congressman I was told to raise my prices. I simply can't do that because my competition is nation wide chain stores that can absorb our states inflation nation wide and again will drive me out of business.

I have worked at these same two stores for over 17 years. During that time the previous owner was kind enough to pay 100% of the employees health care premiums and 60% of the family. We also enjoyed 16 hours of guaranteed overtime a month, Sick pay, vacation pay and paid holidays and a retirement plan.

As a new business owner it is my wish to continue these great benefits for the employees that I have worked with all these years. Unfortunately with the changes in wages and the increase in the cost of doing business in Washington state I am slowly having to strip away these benefits in order to keep my doors open.

October of last year I had to change our health care to a 75% - 25% split for the employee and 50% - 50% for the family. January of this year I had to eliminate scheduled overtime dramatically affecting my employees income. And now we are in dire danger of losing our health care benefits!

With all of these negative changes I find it very difficult to keep a positive moral in my stores! I fear that I will also have a hard time retaining valuable employees. Given the fact that the majority of my employees have been with me over 10 years and a couple over 30 years.

The Small Business Owners of Washington State NEED HELP! I feel that my business was taking very good care of our employees but unfortunately that is not the case anymore and it pains me. My son works for me as well and these issues are greatly effecting him as well.

(Submitted on 12/4/18 by Gabriel Wiborg, Soi and Banyan Tree Restaurants)

My name is Gabriel Wiborg. I own & operate Soi and Banyan Tree Restaurants and am proud to employ 25 people in each location.

If these rules were adopted as currently proposed, I would be severely impacted on our operational feasibility and ability to continue operating as a small business. I compensate my employees well and they know this and have worked for me for a long time with yearly raises and merit increases--just the other year we were able to begin to provide health insurance to our employees. I couldn't believe you would force me to choose from providing health insurance for my employees or providing one of them with this threshold, thus hurting the rest.

Thank you for the opportunity to submit comments on behalf of the updated pre-draft rules for the Executive, Administrative and Professional exemptions from the state Minimum Wage Act including the update of overtime exemptions and the salary threshold.

We understand that an update on this topic is appropriate; however, I would like to raise several concerns with elements of the updated pre-draft proposal. My first concern is about the future of the hospitality industry and its career ladder.

As a business operator, I am proud to be able to invest in my employees, see them gain valuable skills and transfer them into leadership opportunities as they advance their careers. I am concerned that tying the salary overtime threshold to a range of $56,000 - $70,000 adjusted annually or 2 – 2.5 times the minimum wage will discourage my ability to provide more upward career growth opportunities. Adopting any multiplier of the minimum wage would create a wage gap between my employees and management. Undercutting and harming my employees by removal of the middle-management career ladder rungs would not benefit them, my business or the state economy.

I appreciate the Department’s willingness to consider a phase in, but the two suggested approaches perpetuate the challenges created by such a drastic increase in the salary threshold. I request the Department not pick winners and losers based on geographic location or size of business. Rather, the phase in should span at least four years to give all businesses ample time to implement changes and update their business practices. Over the last three years the hospitality industry has continued to struggle with the impacts of a 40 percent increase in the minimum wage contained in I-1433. To be clear, with these new pre-draft rules the Department is suggesting a nearly 300 percent increase in wages for our employees. As an employer, this increase will likely have a negative impact on the career ladder and opportunities in my business.

I am asking L&I to wait for the federal government to update their rules before moving forward with this process. We need alignment at the local, state and federal levels of government.

I appreciate the opportunity to be a part of the solution and submit my comments to you.

(Submitted on 12/3/18 by Patrick McPherson, The Blackbird)

My name is Patrick McPherson. I own/operate The Blackbird and am proud to employ 30 people in the restaurant industry.

If these rules were adopted as currently proposed, it would adversely affect our business. The restuarant business has been hit hard with minimum wage (and no tip credit) and sick leave lately. It's tough business with low profit margins. With this change I will probably let my assistant manager go and just increase my personal workload. It's really becoming difficult for a small business in WA.
Thank you for the opportunity to submit comments on behalf of the updated pre-draft rules for the Executive, Administrative and Professional exemptions from the state Minimum Wage Act including the update of overtime exemptions and the salary threshold.

We understand that an update on this topic is appropriate; however, I would like to raise several concerns with elements of the updated pre-draft proposal. My first concern is about the future of the hospitality industry and its career ladder.

As a business operator, I am proud to be able to invest in my employees, see them gain valuable skills and transfer them into leadership opportunities as they advance their careers. I am concerned that tying the salary overtime threshold to a range of $56,000 - $70,000 adjusted annually or 2 – 2.5 times the minimum wage will discourage my ability to provide more upward career growth opportunities. Adopting any multiplier of the minimum wage would create a wage gap between my employees and management. Undercutting and harming my employees by removal of the middle-management career ladder rungs would not benefit them, my business or the state economy.

I appreciate the Department’s willingness to consider a phase in, but the two suggested approaches perpetuate the challenges created by such a drastic increase in the salary threshold. I request the Department not pick winners and losers based on geographic location or size of business. Rather, the phase in should span at least four years to give all businesses ample time to implement changes and update their business practices. Over the last three years the hospitality industry has continued to struggle with the impacts of a 40 percent increase in the minimum wage contained in I-1433. To be clear, with these new pre-draft rules the Department is suggesting a nearly 300 percent increase in wages for our employees. As an employer, this increase will likely have a negative impact on the career ladder and opportunities in my business.

I am asking L&I to wait for the federal government to update their rules before moving forward with this process. We need alignment at the local, state and federal levels of government.

I appreciate the opportunity to be a part of the solution and submit my comments to you.

(Submitted on 12/3/18 by Adam Hegsted, Eat Good Group Restaurants)

My name is Adam Hegsted. I own/operate Eat Good Group Restaurants and am proud to employ 175 people in Spokane, WA.

If these rules were adopted as currently proposed, I would do move our businesses outside of Washington state.

Thank you for the opportunity to submit comments on behalf of the updated pre-draft rules for the Executive, Administrative and Professional exemptions from the state Minimum Wage Act including the update of overtime exemptions and the salary threshold.

We understand that an update on this topic is appropriate; however, I would like to raise several concerns with elements of the updated pre-draft proposal. My first concern is about the future of the hospitality industry and its career ladder.

As a business operator, I am proud to be able to invest in my employees, see them gain valuable skills and transfer them into leadership opportunities as they advance their careers. I am concerned that tying the salary overtime threshold to a range of $56,000 - $70,000 adjusted annually or 2 – 2.5 times the minimum wage will discourage my ability to provide more upward career growth opportunities. Adopting any multiplier of the minimum wage would create a wage gap between my employees and management. Undercutting and harming my employees by removal of the middle-management career ladder rungs would not benefit them, my business or the state economy.

I appreciate the Department’s willingness to consider a phase in, but the two suggested approaches perpetuate the challenges created by such a drastic increase in the salary threshold. I request the Department not pick winners and losers based on geographic location or size of business. Rather, the phase in should span at least four years to give all businesses ample time to implement changes and update their business practices. Over the last three years the hospitality industry has continued to struggle with the impacts of a 40 percent increase in the minimum wage contained in I-1433. To be clear, with these new pre-draft rules the Department is suggesting a nearly 300 percent increase in wages for our employees. As an employer, this increase will likely have a negative impact on the career ladder and opportunities in my business.

I am asking L&I to wait for the federal government to update their rules before moving forward with this process. We need alignment at the local, state and federal levels of government.

I appreciate the opportunity to be a part of the solution and submit my comments to you.

(Submitted on 12/3/18 by Sandeep Singh, Denny's)

My name is Sandeep I own/operate Denny’s and am proud to employ 110 people in Washington.

If these rules were adopted, We have to eliminate some salary positions are now at $55k and those worker work less than 50 hours a week. There is no way we will be able to afford assistance manger jobs at $70k

I appreciate the opportunity to express my thoughts on the updated pre-draft rules for the Executive, Administrative and Professional exemptions from the state Minimum Wage Act, including the update of overtime exemptions and the salary threshold.

I am a hospitality industry operator who is proud to provide jobs at all levels to people in my community. The hospitality industry is an industry of opportunity that offers everything from first-time jobs to lifelong careers. I want to continue to invest in my employees and provide them with opportunities to advance their careers in hospitality or elsewhere.

I am very concerned about tying the salary overtime threshold to a range of 2 – 2.5 times the minimum wage or a salary of $56,000 - $70,000 and adjusted annually. Adopting a salary threshold tied to any multiplier of the state minimum wage will create a wage gap between my employees and management and will ultimately harm jobs by eliminating middle-management positions.

I appreciate the Department’s willingness to consider a phase in, but the two suggested approaches perpetuate the challenges created by such a drastic increase in the salary threshold. I request the Department not pick winners and losers based on geographic location or size of business. Rather, the phase in should span at least four years to give all businesses ample time to implement changes and update their business practices. Over the last three years the hospitality industry has continued to struggle with the impacts of a 40 percent increase in the minimum wage contained in I-1433. To be clear, with these new pre-draft rules the Department is suggesting a nearly 300 percent increase in wages for our employees. As an employer, this increase will likely have a negative impact on the career ladder and opportunities in my business.

I ask L&I to align any proposed changes to these exemptions with federal rules. As a business operator, we need alignment at the local, state and federal levels of government to help reduce confusion.

I am a proud member of my community and want to continue to provide jobs for employees at all levels, including middle-management positions. I ask for L&I to consider the impact of these pre-draft rules on the hospitality careers and our community and economy.

(Submitted on 12/3/18 by Tamera Kennedy, Bargreen Ellingson - Spokane Branch)

My name is Tamera Kennedy. I manage the Bargreen Ellingson Spokane Branch and am proud to employ 18 people in Spokane.

If these rules were adopted as currently proposed, I would not be affected as we are already in compliance as a company. However, my customers (restaurants and other commercial food service operators) will be greatly affected and this will impact my business.

As a business operator in our state I wanted to ensure my voice is heard in the rulemaking process for the Executive, Administrative and Professional exemptions from the Minimum Wage Act, including overtime exemptions and an update of the salary threshold. As a member of Washington’s hospitality industry, I am particularly interested in preserving my ability to provide my employees with opportunities to advance their careers.

As written, the pre-draft rules propose to tie the minimum wage to the salary threshold to a range of $56,000 - $70,000 adjusted annually or 2 – 2.5 times the state minimum wage. Adopting a salary threshold tied to any multiplier of the minimum wage would erase those mid-career management positions that are critical to climbing the hospitality career ladder. Removal of the mid-career positions and leaving all managerial positions to upper management would undercut the workforce in an already tough labor market.

I appreciate the Department’s willingness to consider a phase in, but the two suggested approaches perpetuate the challenges created by such a drastic increase in the salary threshold. I request the Department not pick winners and losers based on geographic location or size of business. Rather, the phase in should span at least four years to give all businesses ample time to implement changes and update their business practices. Over the last three years the hospitality industry has continued to struggle with the impacts of a 40 percent increase in the minimum wage contained in I-1433. To be clear, with these new pre-draft rules the Department is suggesting a nearly 300 percent increase in wages for our employees. As an employer, this increase will likely have a negative impact on the career ladder and opportunities available for our customers.

I am proud to serve my community and provide all levels of jobs for my employees. I ask L&I to consider the overall economic impact and harm these updated pre-draft rules could have on our state’s economy. The hospitality industry is not the only sector that may have to drastically shift because of the outcome of these rules.

Thank you for the opportunity to be engaged with this process through the submission of my comments.

(Submitted on 12/2/18 by Erin A. Malone)

Please amend the OT rule to extend to at least 2.5 times the min hourly wage. For the Seattle Market, 3 x (or HIGHER) above the min hourly wage would be more reasonable. WA state has been a leader throughout the nation w/re to washPIRGs, the environment, carbo taxes, and more. Please join the other states (NY, CONN, MA) in amending the OT rules in 2019 for employees as they have not been changed in 40 years!

On average I work 55-60 hours per week as an Administrative Assistant, and receive no OT compensation for any hours I work above $40. I am regularly overloaded with low-level administrative tasks (order business cards, order a chair, schedule a meeting, order lunch, proof documents, take notes ,etc...) that comprise the bulk/80% of my work. Nothing I do classifies my job exempt and my current employer will not review/change my classification, even though I have requested a review which has not been done. Due to my exempt status, my employer expects me to come in early and stay late and the low-level requests are unending which prompt my long workweeks. I have no time for family/friends. And I am actually earning LESS, far less, than I was at my past job due to the amount of hours I work/am not paid for. This is wrong and many more people at KPWA than just myself are in this boat with KPWA. KP should be ashamed to treat their employees this way and it seems to fly in the face of the 'THRIVE' values broadcast all over TV, Seattle Metro and other adds. Please fix the OT rules.

MY SITUATION/ EXEMPT MISCLASSIFICATION
I currently work for Kaiser Permanente (KPWA/ Kaiser Foundation Health Plan of WA), formerly Group Health. KP has classified me exempt/Administrative category and I receive a salary with no possibility to be receive compensation for any hours above 40, yet since my start (July 2017) I have never worked a workweek less than 50 hours., rarely receive a lunch/coffee break. I typically work 50-60 hours per week. My title is Administrative Coordinator. I do not supervise or lead teams. I do not have a budget, nor do I manage/define work, or a team. I make no significant decisions, and actually make very few decision, my work being determined by those above me. I provide administrative support to a department, but not C-Lever of Executives. And yet, I work with other Administrative Assistants (with that same title just one word different than mine) who make the same or higher hourly rate, are classified as non-exempt and regularly work OT and are paid for it. Those with the title of Administrative Assistants/hourly, are also offered the option to work OT or not, whereas I because I am exempt I have no choice to work above the 40 hour workweek and must if I am to keep my job. yet -- my title/ Administrative Coordinator is considered a 'higher level' than Administrative Assistant at KP but the work does not reflect a higher level. Within the first two months of working, I asked my employer about what I think is my erroneous exempt classification -- trusting this was just an innocent oversight on their part -- and also provided FLSA background to them. In addition I also asked for job description which I (still) have never received. Instead of my employer looking closely at my concern and reviewing the situation, my employer told me that all Administrative Coordinators are exempt/end discussion. My concern was heard as a complaint. While I suffered no immediate punishment, I am now perceived as a complainer and I feel that by raising the concern I have jeopardized my professional standing and opportunities. I then called the Fed DOL to ask about my situation, and was told that because I earned $59k ( above the $23k threshold for exempt, and a lot in Dubuque, Iowa but not great in the Seattle market), my complaint would likely not advance, but if it did advance to investigation there was no way for them to protect me/my job since the filing information required my name and would tie back to me; my employer w/could request this info. So now I just work 55-60 hours weeks.

Any employer has a huge effect on one's life and well being/; KP has a huge and detrimental effect on my life. I have no possibility of taking on an additional job (as I did in previous FT employments) or earring more money (as I would like to continue to save to buy a house). I have no choice about my work hours, no reliable set a schedule, and all I do is work/sleep. And I have no voice. (most recently I had planned my first day of PTO for the day after Thanksgiving, and since I started working July 2017. Wednesday before Thanksgiving, 3pm I got a call requesting that come on on my PTO day to help. Due to the concerns I had already raised about the exempt classification and that not being taken well by my employer, I felt I had no choice but to forego the PTO day, and work instead. I doubt I will ever be able to take PTO at this job, based on how the work/situation has been going fo the past 1.5 years. I am told that I must find someone to cover my assignments to take PTO, but there are not any staff to cover so I imagine that I will lose PTO accrued as we have a max accrual at 250 hours, which I am very near now. So this is another monetary/time loss in addition to no OT. All this makes me feel like my time/life have no value to my employer and that anything my employer asks of me, I must do. For the salary I earn -- $59k is not nearly the price I would put on this exchange.

All Administrative Coordinators have been misclassified, not just me, to save on labor/staffing and is in violation of the FLSA. There are not many Adminsitraviet Coordinators at KP in Seattle - about 30 I think? and they are spread out across different areas/office in Seattle. What KP is doing is wrong and I know the difference. I am 49 years old and have extensive past work experience, primarily working in the public sector before healthcare. I worked in Labor Relations .HR, Governor's Office and Education in the State of Alaska for nine years. In other jobs I have primarily been salaried, but also hourly - in both instances I received OT compensation when working beyond 40 hours. In all my past jobs, I have never had a high enough level of authority to be considered exempt - and yet, now -- the work I do at KP is actually a lot lower than past jobs and believe I have been (mis)classified as exempt to work more hours to benefit the employer.

In contrast/most recently - before working at KPI was an Administrative Assistant at Seattle Children's Hospital (SCH), doing the same type of work as I do now but classified as hourly and compensated OT for all hour over 40. At SCH I received three promotions and was regularly evaluated as a 'TOP' employee. I accepted my new employment situation with a $1PH raise with promise of professional development which, considering my employment/productivity was/is reasonable. But in my current employment situation, there is so much low-level work/volume that it's impossible to take on 'plum' assignments and/or offer greater contributions, as I have in all my past employment which has also aided in my professional development. I am a well educated woman, with a BFA/Cornish College, and an MFA/Virginia Tech. I now believe my employer is using the exempt misclassification to save on labor/staffing. Its shameful.

Please amend the OT rules for Washington and further amend the rules for Seattle.

(Submitted on 11/30/18 by Bryce Kerr, Italian Kitchen)

My name is Bryce Kerr. I own Italian Kitchen and am proud to employ 24 people in Spokane.

If these rules were adopted as currently proposed, I would be forced to no longer have salaried employees. This, along with the nation's highest minimum wage would cripple me.

As a business operator in our state I wanted to ensure my voice is heard in the rulemaking process for the Executive, Administrative and Professional exemptions from the Minimum Wage Act, including overtime exemptions and an update of the salary threshold. As a member of Washington’s hospitality industry, I am particularly interested in preserving my ability to provide my employees with opportunities to advance their careers.

As written, the pre-draft rules propose to tie the minimum wage to the salary threshold to a range of $56,000 - $70,000 adjusted annually or 2 – 2.5 times the state minimum wage. Adopting a salary threshold tied to any multiplier of the minimum wage would erase those mid-career management positions that are critical to climbing the hospitality career ladder. Removal of the mid-career positions and leaving all managerial positions to upper management would undercut the workforce in an already tough labor market.

I appreciate the Department’s willingness to consider a phase in, but the two suggested approaches perpetuate the challenges created by such a drastic increase in the salary threshold. I request the Department not pick winners and losers based on geographic location or size of business. Rather, the phase in should span at least four years to give all businesses ample time to implement changes and update their business practices. Over the last three years the hospitality industry has continued to struggle with the impacts of a 40 percent increase in the minimum wage contained in I-1433. To be clear, with these new pre-draft rules the Department is suggesting a nearly 300 percent increase in wages for our employees. As an employer, this increase will likely have a negative impact on the career ladder and opportunities in my business.

I am proud to serve my community and provide all levels of jobs for my employees. I ask L&I to consider the overall economic impact and harm these updated pre-draft rules could have on our state’s economy. The hospitality industry is not the only sector that may have to drastically shift because of the outcome of these rules.

Thank you for the opportunity to be engaged with this process through the submission of my comments.

(Submitted on 11/30/18 by Patrick Lewis, Farrelli's Pizza)

My name is Patrick Lewis. I operate Farrelli's Pizza and am proud to employ 400 people.

If these rules were adopted as currently proposed, I would have to remove many salary employees.

Thank you for the opportunity to submit comments on behalf of the updated pre-draft rules for the Executive, Administrative and Professional exemptions from the state Minimum Wage Act including the update of overtime exemptions and the salary threshold.

We understand that an update on this topic is appropriate; however, I would like to raise several concerns with elements of the updated pre-draft proposal. My first concern is about the future of the hospitality industry and its career ladder.

As a business operator, I am proud to be able to invest in my employees, see them gain valuable skills and transfer them into leadership opportunities as they advance their careers. I am concerned that tying the salary overtime threshold to a range of $56,000 - $70,000 adjusted annually or 2 – 2.5 times the minimum wage will discourage my ability to provide more upward career growth opportunities. Adopting any multiplier of the minimum wage would create a wage gap between my employees and management. Undercutting and harming my employees by removal of the middle-management career ladder rungs would not benefit them, my business or the state economy.

I appreciate the Department’s willingness to consider a phase in, but the two suggested approaches perpetuate the challenges created by such a drastic increase in the salary threshold. I request the Department not pick winners and losers based on geographic location or size of business. Rather, the phase in should span at least four years to give all businesses ample time to implement changes and update their business practices. Over the last three years the hospitality industry has continued to struggle with the impacts of a 40 percent increase in the minimum wage contained in I-1433. To be clear, with these new pre-draft rules the Department is suggesting a nearly 300 percent increase in wages for our employees. As an employer, this increase will likely have a negative impact on the career ladder and opportunities in my business.

I am asking L&I to wait for the federal government to update their rules before moving forward with this process. We need alignment at the local, state and federal levels of government.

I appreciate the opportunity to be a part of the solution and submit my comments to you.