Legislative, Regulatory & Legal

New York -- The minimum wage rose in 20 U.S. states and in the District of Columbia on Jan. 1.

The increase brings the total number of states with a minimum wage above the federal wage floor to 29, according to the New York Times. The federal minimum wage is $7.25 an hour.

Nine states are increasing their minimum wage levels through automatic adjustments for cost-of-living expenses and other economic factors. Increases in the other states occurred through legislative or ballot changes.

The Retail Industry Leaders Association announced that Jennifer Safavian has joined the organization as Executive Vice President for Government Affairs.

As RILA’s top lobbyist, Safavian will oversee RILA’s federal and state advocacy, guiding an agenda that includes cyber security, e-fairness, tax reform and other critical issues facing the retail industry.

Arlington, Va. -- The Retail Industry Leaders Association (RILA) announced that Jennifer Safavian has joined the association as executive VP for government affairs, effective Jan. 5. As RILA’s top lobbyist, Safavian will oversee RILA’s federal and state advocacy, guiding an agenda that includes cyber security, e-Fairness, tax reform and other critical issues facing the retail industry.

Atlanta -- The new year has brought news of a possible new data breach. Chick-fil-A acknowledged on Friday that it has received reports of potential “unusual activity” involving payment cards used at a few of its restaurants and that it was investigating whether a data breach had taken place.

“We take our obligation to protect customer information seriously, and we are working with leading IT security firms, law enforcement and our payment industry contacts to determine all of the facts,” the company said in a statement.  

Foothill Ranch, Calif. – Teen retailer Wet Seal Inc. has defaulted on a total of $28.8 million in senior convertible notes and related costs. In a regulatory filing, the struggling retailer  said it received notice of default on $27 million in notes from creditor Hudson Bay Master Fund Ltd., plus costs including attorneys’ fees and disbursements.

Wet Seal has reached a two-week forbearance agreement with the fund, giving it until Jan. 12 to pay off the debt.

The statement  “class action for wage and hour violations” has become an all too familiar phrase in the retail industry. The issue is also a dynamic one with constant changes from year to year, and even month to month. The bad news is that the number of wage and hour class actions filed on a daily basis continues to rise. According to the Economic Policy Institute, the number of FLSA (Fair Labor Standards Act) cases filed in the federal court is more than five times the number 20 years ago.    

The new year will bring more fraud than ever before, but also more tools to prevent it, according to three experts from the Association of Certified Fraud Examiners (ACFE).

The experts at ACFE were asked for their top fraud predictions for 2015. They weighed in on digital currencies, information security and other issues that will help shape the effort to prevent and detect fraud in the new year:

Washington, D.C. - The Retail Industry Leaders Association (RILA) and six other merchant associations have sent a letter rebutting recent comments about payment card security from the Independent Community Bankers of America (ICBA). Specifically, the letter outlines three points.