Wages

Over concerns expressed by job creators for the last 14 months, House and Senate leaders announced an agreement this morning that will dramatically increase Minnesota's minimum wage to $9.50/hour for businesses over $500,000, and $7.75/hour for those under that threshold.

In addition to hourly changes, the agreement provides for automatic increases tied to inflation and an accelerator in the event the State misses an increase due to poor economic conditions.

Details of the deal became clear at a Senate Finance Committee meeting later in the day, where a tax policy bill (SF 2091) was amended to include the full minimum wage increase language.

Here are the details of the changes:

Large employer $9.50/hour - This rate will be the phased-in by 2016 for businesses with over $500,000 in revenue.  Phases: $8.00 August 2014, $8.50 August 2015, $9.50 in 2016.

Small employer $7.75/hour - Businesses under $500,000 in revenue will have a $7.75/hour minimum wage, phased in by 2016.  Phases: $6.50 August 2014, $7.25 August 2015, $7.75 in 2016.

Training Wage, Youth Wage, J1 Visa Wage $7.75/hour -  This $7.75 rate will apply to large businesses (over $500,000) in the form of: 1) training wage for the first 90 days for 18 and 19 year-olds; 2) youth wage for 16 and 17 year-olds; and 3) employees working under a J1 visa.

Future Increases Ties To Inflation - Beginning in 2018 automatic increases in all the minimum wage levels will be tied to inflation as calculated by the implicit price deflator.  Increases will be capped at 2.5 percent per year.

Inflator Suspension - The Commissioner of the Department of Labor and Industry is allowed to suspend inflationary increases for one year if certain economic conditions are present.

Inflation Accelerator - Just as the Commissioner of Labor and Industry can suspend an inflationary increase, he/she can accelerate or add back a suspended increase in better economic times.

It is expect that leadership will fast track the bill, with the goal of getting it through both the House and Senate and on the way to the Governor for his signature as early as Friday, before legislators take a 10 day holiday break.

MnRA opposes a dramatic increase in Minnesota's minimum wage with future increases tied to inflation, and remains concerned about its impact on jobs, hours, and prices.

Upcoming Event

Only 30 spots remain! Register today.

Join the Minnesota Retailers Association and hosts Roberta Bonoff, Hillary Feder and Jill Renslow for an engaging conversation surrounding changes in retail operations and consumer expectations.  

The evening kicks off with an insightful panel of shared learnings from Intel, Microsoft, Space150 and select retailers. Following an industry overview, attendees will participate in small group roundtables with accomplished women in technology providing useful insights and advice on key issues in the retail industry.

Women In Retail | Technology & Retail Innovation 

Wednesday, April 16, 2014, 4:30-7:00 p.m.

Microsoft Technology Center, 6th Floor

3601 76th Street West, Edina 55435

 

Register early! Space limited to 100 participants. Complimentary appetizers. Cash bar. Non-members welcome.

  

No cost to attend thanks to these sponsors:

 

Presenting:

Supporting:

Credit Card Fraud

 

"If you read a recent blog post on the Wall Street Journal's web site - Card Security Costs Outweigh Benefits for Many - you would think retailers are considering whether it would be a better "return on investment" to just continue paying fraud costs rather than switch to new credit and debit cards that banks plan to begin issuing next year. Nothing could be further from the truth.

 

It's rare that a news article is so misleading that it needs more than a simple correction or a letter to the editor to make things right, but this is a case where I'd like to set the record straight.

The fact is that retailers are willing to spend whatever it takes to protect our customers and their card data. If customers don't trust us with their data they won't shop with us, so we have a vested interest in doing the right thing.

But in spending the $30 billion-plus it could take to replace every credit card reader in America, retailers have one overriding demand - let's provide consumers with all of the security that's available, not just a piece of it. That means cards not just with chips but PINs as well, end-to-end encryption of data and/or use of "tokens" that eliminate the need for retailers to store data at all, and other steps such as using smartphones to improve the security of transactions.

While there are many solutions to explore, the issue grabbing headlines at the moment is that banks want to issue new cards that would replace the easy-to-copy magnetic stripe currently used to hold data with an encrypted, embedded microchip that is next to impossible to counterfeit.

There's no argument that chip cards are more secure than magnetic stripe cards. In fact, they are used in more than 80 countries around the world, and have reduced fraud in the United Kingdom alone by 75 percent, according to one study.

But the cards in those countries all have something in common that would not necessarily be the case here in the United States - the use of a chip is combined with mandatory use of a Personal Identification Number."

 

	Read the full story.

Retail Operations

 

"The shift toward electronic payments has had the unintended consequence of hindering shoppers' ability to donate to charitable causes at the point of sale, but not anymore.

To remedy the situation, the Association for Retail Technology Standards, a division of the National Retail Federation, announced the release of its Change4Charity Standard.  

 

If adopted by point-of-sale vendors and donation processors the new standard will lower costs for retailers and support greater participation in charity programs by smaller retailers and non-profits, ultimately raising more funds for those in need, according to NRF vp of retail technologies Tom Litchford.

 

"As more consumers move to electronic payments, the idea of dropping change into a donation jar at the register is fading," Litchford said. "At the moment, the cost of integrating selling systems to separate charities is a barrier for smaller retail companies, and many smaller charities don't have the resources to take advantage of electronic integrations. We are eager to push this out to retailers who want to make a difference in the communities they serve."

 

	Read the full story.

   

For members seeking an insiders look at the legislative week, MnRA hosts a weekly 10:00 a.m. Monday conference call beginning February 24. This members-only activity takes place each week of legislative session through its conclusion and includes opportunities for retailers to get involved in the policy making process.

   

Thanks to our Retail at the Capitol calls sponsor, Holiday Companies, there is no cost for these calls and no advance RSVP is required. Simply dial in for the calls that interest you and work with your schedule. Calls last approximately 30 minutes.

To obtain dial-in information for these calls, contact MnRA at [email protected] or call us at (651) 227-6631.

The Minnesota Retailers Association (MnRA) has leveraged the collective clout of our members to offer increased savings on the products and services essential to retailers. These vital products and services help Minnesota retailers navigate the often complicated terrain of operating as a retailer.

Thank you for your patience as we redesign the web presence of the RetailPlus+ Buying Group in the coming weeks.

Question on the program? Contact the MnRA staff at (651) 227-6631.

Minnesota Retailers Association

400 Robert Street North, suite 1540

St. Paul, MN 55101

Tel. (651) 227-6631 - mnretail.org - [email protected]

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