EAP Pre-Draft Proposed Rule Language (Second Version)

(Submitted on 11/30/18 by Jim Ross, Billy McHales Restaurant)

My name is Jim Ross. I own/operate Billy McHales Restaurant and am proud to employ 45 people in Federal Way Washington.

If these rules were adopted as currently written I would have to eliminate jobs for hosts, bus boys and at least one hourly management position to meet the new rules

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 Jeffrey Morgan)

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 11/30/18 by Jacquelyn Farrell, Farrelli’s)

My name is Jacquelyn Farrell. I own/operate Farrelli’s and am proud to employ 450 people in Washington.

If these rules were adopted as currently proposed we would be forced to remove people whom have earned the stability of a salaries position with all the benefits that come along with it. Salary comes with a true since of pride. Unfortunalty if this ruling goes into effect the mid level growth ladder will elude those looking for the stability of salary with the educational benefits we’ve been offering.

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 cannot increase my prices by 300%. No one want to pay $60 for a 16 inch pizza no matter how good it is or how much love it was made with. I operate on a 4% or less margin that is used to perpetuate growth. Writing is on the wall .... super sad for all 450 of my employees.

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 Janet Williams, Thomas Hammer Coffee Roasters)

My name is Janet Williams. I operate Thomas Hammer Coffee Roasters and am proud to employ approx. 100 people in the Spokane & E WA area.

If these rules were adopted as currently proposed, I would move all exempt, salaried managers, junior District Managers & junior department heads to non-exempt, hourly pay. We would have to restructure our business model, benefits package, payroll & timekeeping systems. At least 15 employees would be impacted by tedious tracking of time worked (off-site i.e. phone calls, texts, banking, administrative, with no paper trail for the employer) & a reduction in benefits (vacation, sick, paid holidays) to equal expected OT. I anticipate a rise in turnover & a reduction in career oriented employees, costing tens of thousands of dollars annually to Hammer Coffee, & in turn, our State economy.

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 $49,920 - $62,400 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.

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

I am asking Labor and Industries 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 11/30/18 by Mike Schabbing, Courtyard Seattle Downtown Lake Union)

My name is Mike Schabbing. I own/operate Courtyard Seattle Downtown Lake Union. and am proud to employ 75 people in Seattle.

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 11/30/18 by Paul Gill, Papa Murphy's)

My name is Paul Gill. I own/operate Papa Murphy's and am proud to employ 108 people in Washington.

If these rules were adopted as currently proposed, I would probably have to cut my staff my half.

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 $49,920 - $62,400 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.

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

I am asking Labor and Industries 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 11/30/18 by Sara Reilly)

We have 40 employees and pay well above industry average for salary. At 50,000 plus benefits, our head Brewer in in the top tier percentile of Brewers in the country. To raise upto 20,000 a year would be detrimental and we would have to reevaluate and likely move to hourly rates for our employees who are currently on 50k+ salaries. I don't think that would benefit anyone.

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 11/30/18 by Ian Brousseau, Opper Melang Restaurants)

My name is Ian Brousseau. I operate Opper Melang Restaurants and am proud to employ 250 people in Washington.

If these rules were adopted as currently proposed, I would be compressed to the point that both internal positions would be sacrificed and growth would be hindered completely within this state.

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 $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 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.

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

I am proud to serve my community and provide all levels of jobs for my employees. I 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 11/30/18 by Robert Ho, Feedme Hospitality LLC)

My name is Robert. I own/operate Feedme Hospitality LLC and am proud to employ 150 people in Edmonds, WA.

If these rules were adopted, I would be forced to restructure pay for management and reduce benefits and employment opportunities as this would adversely impact my business. We make an effort already to provide equal and fair pay for those working their respective positions and don't believe raising the salary threshold makes sense for an industry like ours.

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 $49,920 - $62,400 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.

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

I ask Labor and Industries 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 Labor and Industries to consider the impact of these pre-draft rules on the hospitality careers and our community and economy.

(Submitted on 11/29/18 by Ralph Berthon)

In lieu of being able to attend the Yakima Session I would like to make a statement against the proposed rule.

My Name is Ralph Berthon. I am a current board member for a nonprofit that serves the Pacific Northwest. I have over 40 years’ experience working with nonprofits on a volunteer basis serving as a president, vice president, executive board member at large, and regular board member. I have over 50 years’ experience as a community volunteer serving the Boy Scouts, Church ministries, school boards, off road vehicle clubs, Rotary, Habitat for Humanity, nursing homes, Forest home owners Associations, etc.

My assessment of this proposal:
This rule, as proposed will harm most smaller nonprofits (those with annual revenues less than 1 million dollars). It will force those smaller nonprofits to cut positions and services. Nonprofits with annual revenues less than 1 million dollars should be exempted from this rule, or have a reduced multiplier. These Nonprofits fill the gap between needed services and those services funded through government programs. Nonprofits provide a source of employment in communities that would otherwise not exist. Nonprofits are often the voice of underserved populations. Most small nonprofits survive on small contributions, grants, and various forms of fundraising activities. They operate on a very lean staffing pattern. Their staff is generally small, many of whom are not full time. They depend in a large part on volunteers in order to stay in operation. The average director salary is already at the limits of these smaller nonprofits. Unfortunately I do not have the current average salary for Executive Directors statewide, but I suspect this rule will impact most all of them. This proposed rule will likely eliminate many part time positions or reduce the number of available work hours for them. If it is determined that these smaller nonprofits must be included, have various multipliers based on a combination of annual revenue, and number of FTE employees. I would propose that these nonprofits have a multiplier of 1.75 of the minimum wage.

(Submitted on 11/28/18 by Amy Stoker, Lazer Heating & AC, Inc)

Our small business of 15-20 employees only has 1 employee that would meet your recommended threshold. The recommended salary threshold increase you are proposing, from the Federally mandated level to a higher level, would negatively impact our small business. So much so, that, this recommendation would force our business to close our doors and/or leave WA State. This, combined with the mandatory $13.50/hr minimum wage, in 2020, would put us out of business. I'm not trying to be dramatic for effect. These are the words from the President of our company who manages the dollars and cents. We would not be able to absorb or pass on that much overhead and stay profitable.

In regards to your inquiries, we recommend to you that the generally accepted federal standard for "small business", under 50 employees, should be upheld and kept in any gradation or recommendation you make. Any phase-in recommendations should be based on business size, not geographic location. It is short-sighted to look at any general business rule, mean to be applied across industries, by geography, when universal rule, law, and tax is based on business size. Finally, any definition of "primary duty" should mirror the Federal EEOC standards.

If your recommendation is accepted, I would hope that it would go to the voters for approval.

(Submitted on 11/28/18 by Steve Baer)

I wanted to write an e-mail in SUPPORT of the proposed overtime rules for salaried employees. This year I've worked in excess of 250 hours of overtime. This included roughly 5 weeks of working 7 days a week and multiple weeks of 10+ hour days and weekends. I am not compensated for this time because of my "manager" position where I manage more than 2 employees, can hire/fire employees, etc. I have no ownership stake or profit sharing in the business I work at. It is VERY typical to work 200+ hours of overtime every year if not more and I have been employed here since February of 2005. Granted some years I receive Christmas bonus's. Last year I got $1500 and $3000 the year before (that was the most ever). This doesn't even begin to scrape the surface of the overtime I've WORKED FOR. I make $60,000.00 a year, receive medical benefits, and feel like a slave. I hope that these rules a passed and put into place to protect people from situations like mine.

(Submitted on 11/27/18 by Ryan W. Huffman, Cedar Springs Christian Retreat Center)

To whom it may concern:

I'm not really sure if my comments will make any change or difference - but I can share that for these rules to go into affect / effect - this would create immense personal stress for some of our salaried non-profit staff. I personally feel the wage I'm receiving is more than fair and wonder if legislation of this sort is more geared towards those who live in King County and the Seattle Metro area - like many of the legislative issues that seem to arise in the State of Washington???

I can certainly tell you that as being a non-profit staffer who lives on-site at the ministry in which I serve - having to completely redo the way I do my work (by clocking in and out) will really create some undo stresses that are totally not necessary. Example - having to clock-in at 10pm when an issue arises and then clock out 15 minutes later - or having to document how long I'm on the phone or texting with a guest who has a need during off-hours of our office - this just seems quite frustrating to now be forced into having to do this because this legislation would rule me "ineligible as a salaried employee" due to these new paid-minimums and standards that don't reflect the reality of the whole State of Washington or Whatcom County in which I reside. And to be honest - I feel by having to watch the clock and not go over 40 hours (because I'm not forced to be an hourly employee) hurts the ministry I serve and love to serve. By forcing the ministry I serve to make me an hourly employee is not helpful & most certainly is a harm, frustration, annoyance, and definitely not wanted by me!!!

This legislation would take away from my ability to be fully present to serve and love our guests because of a new law or legality that is totally not needed - nor relevant for many who serve in the line of non-profit ministry work I represent.

Again - if this legislation is focused towards those in the King County or Seattle Metro area - then please leave it localized to that region and not in other areas of Washington State. All of these changes with our labour laws & even changes to minimum wage going up to an absurd
$13.50 USD in 2020 is not going to help anything either with costs increases that non-profits are struggling to figure out how to manage - and most likely many other industries.

I strongly stand opposed to this proposed legislation.

(Submitted on 11/27/18 by Joel Whitehead, Ghormley Meadow Christian Camp)

I am writing in regards to the state's proposed changes to labor laws regarding overtime. As the Director of a small non-profit in the summer camp/retreat center industry in this state, I believe this policy change, if passed, will have a devastating impact on our industry in this state.

Looking only at the wages on paper does not come close to quantifying whether employees in the camp industry are being paid fair wages. I am all for fair wages in a general sense, but several things need to be considered in regards to what we do:

(1) People in the camp industry are not in it for the money. Instituting changes to non-profit wages with a broad brush would only harm those we serve, forcing us to drive up costs to our users, and it would likely also force us to cut staffing or reduce services. Nobody wins in this scenario.

(2) Camp staff are often times compensated with housing, utilities, and food, at the very least. If you look only at the paychecks of my staff and don't have a way to measure in other forms of compensation, you are drawing incorrect conclusions regarding their overall compensation. To force overtime on anyone who makes less than $56k, or worse, $70k, in the camp industry, is absurd. Virtually every staff member at every camp state-wide would be impacted by this at the 70k level.

(3) Staff at camps are often compensated with time off made up during slower seasons. If you force us to pay overtime during our busy summer season but don't consider extra time given in other seasons, you again have not considered how people in our industry are compensated to make things "fair".

I think you will struggle to find anyone at a non-profit camp and retreat center anywhere in this state who will not have a huge issue with these proposed changes. If wages need to be paid more fairly in WA, so be it, but I hope you will listen very carefully to industries such as ours where there are many other factors to consider besides what shows up on the paycheck.

(Submitted on 11/26/18 by Christopher Nash, Zeppoz)

My name is Chris. I own/operate Zeppoz and am proud to employ 64 people in Pullman Wa.

If these rules were adopted as we would have to consider not having any salaried employees on our staff.

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 $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 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.

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

I am proud to serve my community and provide all levels of jobs for my employees. I 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 11/26/18 by Russell Brent, Mill Creek Pub and Chelatchie Crossing Smokehouse)

My name is Russell Brent. I own/operate Mill Creek Pub and Chelatchie Crossing Smokehouse and am proud to employ 50 people in Battle Ground WA.

If these rules were adopted as currently proposed, I would have to reduce the number of employees and have fewer work harder. Thus generating more turnover and hurting my business.

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 $49,920 - $62,400 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.

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

I am asking Labor and Industries 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 11/26/18 by Simon Lee, Candlewood Suites)

My name is Simon Lee. I own/operate Candlewood Suites and am proud to employ 13 people in Lakewood, WA.

If these rules were adopted as currently proposed, I would need to reduce the salary workers. As a small business owner, we don't have the profit margin of a large corporation. If this rule is only proposed to the larger corporations, we'll have a hard time keeping the employees from them.

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 $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 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.

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

I am proud to serve my community and provide all levels of jobs for my employees. I 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 11/26/18 by Janet Duvall, Motion Water Sports Inc.)

Please accept our comments noted below for consideration under this new proposal.

Questions for stakeholders:

1. Assuming an effective date of January 1, 2020, should the department
consider a phased-in implementation of the new threshold for employers
based on employer size? What phase-in schedule should the department
propose?
a. What method would you recommend to define employer size?

Employers with less than 50 employees.

b. When would you recommend the updated threshold take effect for all
employer sizes?

Never for employers with less than 50 employees.

2. During a phase-in period and/or once the rule is fully implemented, should the
department consider adopting a higher salary threshold in higher-wage cities,
counties, or areas of the state?
a. What method would you recommend for defining which areas would be
subject to a different threshold?
b. Would you recommend a different phase-in schedule apply to these
higher-threshold areas? How should the implementation schedule
differ?

3. What definition of “primary duty” (found in WAC 296-128-505(4)) should be
included in the rules?

4. What criteria for the duties tests, if any, should differ between the federal and
state rules? The same as the federal duties tests.

Thank you for your time and consideration.

(Submitted on 11/26/18 by Paul Pickering, Max Dale's Steak & Chop House)

My name is Paul Pickering. I own/operate Max Dale's Steak & Chop House and am proud to employ 52 people in Mount Vernon.

If these rules were adopted as currently proposed, I would have no choice but to raise prices again and look for ways to decrease employee hours and management staff, as well as benefits that are part of management positions.

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 $49,920 - $62,400 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.

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

I am asking Labor and Industries 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 11/26/18 by Bret Stewart)

My name is Bret Stewart and I am a multi-unit franchisee. I own/operate 13 franchise locations in Washington State. My operations are in major shopping centers. Auntie Anne's Pretzels (10) and Schlotzsky's/Cinnabon (3) are the main concepts I have.

My locations are relatively small - they employ between 8 and 15 employees. Most part time students, and 2-3 full time employees per location.

If these rules were adopted as currently proposed, I would have to convert salary managers (earning 42k-45k/mo now) to hourly paid positions. My managers would view this a demotion. As salary managers, they enjoy flexibility over their schedule. They can work from home to write schedules, plan and can adjust their time worked as they see fit to balance their family schedules and work. They can respond to their staff's questions and texts as they see fit depending on the severity of the need. When they apply for car loans and apartments, it is very positive for them to be on salary vs. being paid hourly. The predictability of their paycheck and the benefits of being flexible and in control of their schedule are very positive for them.

These positions are in small bakeries. We are facing very real cutbacks in mall traffic due to Amazon. I can't afford to raise them up to the proposed salary threshold.

To convert their 45k salary, I would pay them $18.00/hour. Then if they worked 6 hours of overtime, they would be at a 45k year level. They would need to work more than they average currently. Also they would loose the flexibility to work from home, answer texts from crew, and come and go as they please to do things like attend parent conferences and Dr. appointments. They would be under more pressure to work less and miss opportunities for professional development that they can opt in for now.

My Managers are professional employees and they run small businesses - but our operations are small and given the pressures on retail companies, I cannot afford to have them meet the threshold proposed for most of them.

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.

I feel this huge jump will also hinder professional growth and career advancement for many that our industry help out of poverty into professional employment. The impact on career ladders and keeping more people on hourly positions in their career is limiting for many in our industry.

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 $49,920 - $62,400 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.

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

I am asking Labor and Industries 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.

Please consider the negative impacts this has on entry level management and career growth. Technology is helping restaurants communicate and operate in new modern ways - demoting entry level managers to hourly paid positions is discouraging, and does not recognize the developing leadership and positive experience that entry level and even mid-level salaried leaders enjoy.