OPERATIONS / SUPPLY CHAIN

Minimum wage increases take effect in 20 states
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.
Hill veteran joins RILA as its top lobbyist
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.

Chick-fil-A investigating possible data breach

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.
Bottom Dollar Food to close all 66 stores

Salisbury, N.C. - Bottom Dollar Food will close its 66 store locations in the greater Philadelphia and greater Pittsburgh markets by Jan. 15 and retire the banner's operations. Upon the closing of stores, Bottom Dollar Food will offer every associate severance, and eligible associates will be offered career transition services.
Study: In-store pickup offers slower checkout

New York - Enabling shoppers to buy an item online and pick it up in a local store (BOPIS) is supposed to be a means of offering additional customer convenience. But according to a new study from business analytics firm StellaService, for BOPIS shoppers, 58% of their time in-store is spent at the checkout desk (3.1 minutes on average). For context, the checkout process for in-store shoppers is more expedient, representing only 15% of their in-store time (1.1 minutes).
Expert Advice: Avoiding Wage & Hour Class Actions

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.
Study: Average data breach costs near $13 million

Ann Arbor, Mich. – Gas prices may be falling, but the price of recovering from a data breach is steadily climbing. According to a new study from authentication technology provider Duo Security, the average cost of data breach recovery reached $12.7 million in 2014, compared to $11.6 million in 2013 and $9 million in 2012.
Report: Minimum wage hikes to affect 1,400 Wal-Mart stores

Bentonville, Ark. – Minimum wage increases scheduled to take effect in 24 states and Washington, D.C. will affect employees at more than 1,400 Wal-Mart stores and 200 Sam’s Club in the U.S. According to CNN, Wal-Mart said it has less than 6,000 employees currently earning the federal minimum wage of $7.25 an hour and has already been planning to pay all employees more than the federal minimum wage.
Report – Labor Dept. investigates RadioShack retirement plans

Fort Worth, Texas – The U.S. Department of Labor is reportedly investigating how RadioShack has been managing its 401(k) retirement plans for employees. According to the Associated Press, the Department of Labor notified RadioShack of the investigation with a letter saying it is looking at the retailer’s management of retirement plans going back to 2011.
Corner Bakery Café expanding in Virginia as it looks to double footprint

Dallas - Corner Bakery Cafe has signed a five-restaurant deal in Virginia with franchise partner Shahid Ali and operating partner Ibo Pinar. The stores will open throughout Richmond and Fredericksburg. Corner Bakery Cafe plans on doubling its national footprint of more than 180 stores in the next two years. To accomplish this goal, the retailer is adding new multi-unit franchise partners and currently has franchise agreements representing commitments for an additional 340 units.