Legislative, Regulatory & Legal

Retailers sued in class or representative actions for alleged wage-and-hour violations often object to discovery requests that seek the contact information (names, addresses, etc.) of their employees — the rationale being that such information is private and burdensome to collect and should not be disclosed unless there is reason to believe that the alleged unlawful practices occurred in locations other than just the named plaintiff’s store.  

There is an endless list of adjectives to describe the first six-months of the Trump administration. But one modifier is both accurate and acceptable — and that word is unpredictable.   For context, the first six months of the Obama and Bush administrations were fairly predictable. Both embarked on a legislative agenda that looked and felt a lot like their campaign platforms and while the legislative process for both was rocky, we knew what we were in for. Not so much this time around.  

In May, United States Trade Representative (USTR) Robert Lighthizer began the formal process for renegotiating the North American Free Trade Agreement (NAFTA), which establishes the rules of trade among Canada, Mexico and the United States. The retail sector has urged USTR to preserve NAFTA’s basic structure, while advocating changes that could help retailers begin sourcing more items from NAFTA countries rather than Asia. As explained below, the outcome of NAFTA renegotiation also will signal the future direction of U.S. trade law and policy.  

Wages

Despite the failure of a “skinny” repeal healthcare bill in the Senate, the National Retail Federation remains committed to fixing the Affordable Care Act.  

Staples met the first requirement on its road back to private ownership.   The office supplies giant, which is being acquired by private equity firm Sycamore Partners, has been granted early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. This act states that no merger or acquisition can take place until the United States Federal Trade Commission and Department of Justice have determined that the filed transaction will not violate U.S. commerce antitrust laws.   

The import tax proposal has officially been removed from the tax reform plan — which is welcome news for retailers across the industry.   On Thursday, congressional and administration leaders announced they would remove the Border Adjustment Tax (BAT) from consideration, and announced an outline for comprehensive tax reform. The BAT provision would have ended importers’ ability to deduct the cost of merchandise purchased from other countries.   

Rent-A-Center is being selective about potential business opportunities.   According to sources, the nation’s largest rent-to-own company brushed off takeover interest from private equity firms HIG Capital and Lone Star Funds. The snub took place prior to turning down an offer of $800 million from buyout firm Vintage Capital earlier this month, according to Reuters.