Legislative, Regulatory & Legal

In response to public concern that wages at the low end of the pay scale were slow to rise, particularly for store managers and assistant store managers, the United States Department of Labor (DOL) updated the Fair Labor Standards Act (FLSA) regulations defining which white collar workers must be paid overtime pay.     The DOL estimates that more than 4 million employees nationwide who are not currently paid overtime will now have to be paid overtime, and the majority of those will be employees of retail stores and restaurants. 

In addition to posting its earnings, Pier 1 announced a plan to protect the company from potential takeover bids.    On Tuesday, the home decor chain announced a “Rights Protection Agreement,” which will protect itself from any single shareholder seeking to acquire a 10% stake or more, as summarized in an article in MarketWatch.  

One year later, retailers still await the promise of chip-card security.   The one-year anniversary of the Europay, MasterCard, Visa (EMV) mandate is looming, yet delays by the card industry have left thousands of new chip readers unused and consumers with far less improvement in security than what was expected, according to a recent survey from the National Retail Federation.  

Washington, D.C., is gaining a new grocery delivery service — one that is powered by rolling drones.   With municipal regulators approving the use of rolling delivery drones for urban deliveries, these bots will deliver groceries to mainly single- or double-occupant households, according to TechCrunch.com.  

Photo: Paula Schneider    The saga continues at American Apparel.   Paula Schneider plans to step down as CEO of the apparel retailer on Oct. 3, according to yahoo.com, which cited a report by Women’s Wear Daily. Schneider will be replaced by the company’s general counsel and chief administrative officer, Chelsea Grayson.  

The National Retail Federation filed suit in U.S. District Court on Wednesday on behalf of the millions of employers and employees who it said will be drastically affected if the Labor Department’s changes to the federal overtime rules go into effect on Dec. 1.   Retailers have argued that the new rule will force employers to reduce hours and base pay in order to make up for increased payroll costs.  

Chip-based payment terminals seem to be everywhere. But that does not mean they are being used the way they intended.    However, almost a year after the imposed Europay, MasterCard, Visa (EMV) mandate deadline, barely one-third of retailers actually accept chip-based payments, according to an infographic from The Strawhecker Group (TSG).  

The nearly 3 million-sq.-ft. American Dream retail and entertainment center in the New Jersey Meadowlands has moved one step closer to completion.   On Thursday, the New Jersey Sports and Exposition Authority, which owns the site, voted for a second time to issue $1.15 billion in bonds to finance the completion of the long-delayed project after a non-profit group had threatened to file a law suit to block the sale, NorthJersey.com reported.