August 24, 2015

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Members golfed August 11 at MnRA's annual tournamentat The Legends in Prior Lake. Pictured above: MnRA Board Chair Chuck Armstrong looks on as Golf Taskforce Chair Dan Markowitz tees off.
Creating A Competitive Retail Environment
Retailers Thank Representative Greg Davids For Working Toward a Positive Environment For Minnesota Consumers and Retailers 
 
Retailers recognized House Tax Chair Greg Davids August 11 at an annual legislative wrap-up golf event in Prior Lake.  The Minnesota Retailers Association (MnRA) specifically thanked Representative Davids for his leadership on key economic and tax issues this past legislative session. Davids is a 12-term Republican from Fillmore County and chairs the Minnesota House of Representatives Taxes Committee.

In presenting an award to Davids, MnRA Board Chair Chuck Armstrong said, "Tax policy in Minnesota is so important when it comes to economic growth and consumer spending. Today we thank Chair Davids for his commitment to businesses and retailers across the State.  Greg understands that sales tax dollars are best collected when consumer spending is encouraged through a competitive retail environment, not high taxes. We appreciate Rep. Davids for keeping Minnesota's taxes in check and for championing several key retail issues not only this year, but over his years in the House." Armstrong is chief legislative officer for Pawn America.



In the 2015 legislative session, Davids was the chief author of a bill to bring Minnesota in line with 28 other states that recognize the cost of collecting and remitting sales taxes by allowing retailers to be reimbursed a small percentage of the taxes they collect. In addition Davids advocated for rolling back early and accelerated tax payments many retailers make in June to help the state with cash flow, despite Minnesota's recent budget surpluses.  In addition, Rep. Davids has played a key role in addressing sales tax fairness issues for mainstreet and brick-and-mortar retailers in Minnesota.

"Retailers have experienced a lot of cost pressures the past few years, including increased transportation, product, labor, and taxes. We are grateful to Chair Davids for his efforts to keep retailers on Minnesota main streets competitive. Almost 800,000 jobs across the State depend on successful retailers. Davids understands that Minnesota's communities need strong retail businesses," added Armstrong. 
 
Local Taxes
Freeborn County Commissioners Approve Half-Cent Sales Tax 
 
From the Albert Lea Tribune, August 18, 2015
 
"The Freeborn County Board of Commissioners on Tuesday unanimously approved a half-cent sales tax to help repair county roads and bridges. The county is aiming for the tax to take effect Jan. 1, 2016, said 5th District Commissioner Mike Lee.

"We've talked this over quite a bit and it's something we need to move forward with," said Glen Mathiason, District 1 commissioner. "It's the right thing to do to try to help us with our roads."
Dan Belshan, District 2 commissioner, said the half-cent sales tax wasn't ideal.

"It's unfortunate that we have to do this, but due to road funding changes at the state level it's something that needs to be done," Belshan said.

The sales tax for the Shell Rock River Watershed District, located within the city limits of Albert Lea, will be 7.875 percent beginning Jan.1. The sales tax outside the city of Albert Lea will be 7.375 percent."
    
Program Note
To Be Rescheduled: This Friday's Free Retail Background Screening Webinar
 
MnRA's August 28 webinar on retail background screenings has been cancelled and will be rescheduled.  Watch next Monday's Retail Beat for the new date. We apologize for the inconvenience.
Overtime Rules
Retail Action Alert: Tell The U.S. Department of Labor Proposed Overtime Rules Do Not Work For Retailers
 
Recently the US Department of Labor officially proposed new overtime rules to raise the threshold for exempt employees. The proposed rules would double the current salary of $23,660 per year to $50,440 in 2016 for retail managers and other employees to be exempt from overtime pay.

Retailers provide competitive wages and salaries for Minnesotans across the state; forcing retail operations to pay overtime to salaried employees who work over 40 hours per week and make up to$50,440 per year will hurt the flexibility of hiring practices by significantly adding to labor costs.

The National Retail Federation's recent Oxford Economics study estimates that the proposed increase to $50,440 per year would affect 2.2 million retail and restaurant employees and cost businesses $8.4 billion per year.  Vast differences in retail store operations makes a one-size fits-all increase approach to overtime rules unrealistic and unfair.

Current Law:
Minnesota retailers currently pay time and a half to all hourly-wage employees that work more than 40 hours in one week.
  • All employees that earn up to $23,660 a year are currently entitled to overtime pay for working more than 40 hours in one week. Employees making more than $23,660 a year that are not designated as Managers are also entitled to overtime pay.
  • Salaried employees on professional career tracks as Managers and Assistant Managers are currently exempt from overtime pay if they have a supervisory role over other workers and make more than $23,660 per year.
  • Managers who are reclassified as "non-exempt" because of the rule would likely lose incentive compensation opportunities, flexibility, training, and the professional status they highly value. The proposed rule would also lead to fewer career advancement opportunities for hourly workers as middle management ranks shrink.

We need your help in voicing retail's strong concerns about this new federal rule. Before September 4, we need you to tell Labor Department that retailers oppose the proposed increase in the salary level, any attempt to annually increase the salary level, and any changes to the duties test. Personal Stories are always impactful.  

 

 

Go to https://nrf.com/CommentOnOvertime to submit your comments today!  
     

 

Employment Update
Minnesota Loses 3,900 Jobs In July   
 
From the Star Tribune, Adam Belz, August 20, 2015
 
"Minnesota's job market slid backward in July because of declines in construction, hospitality and restaurants.

Minnesota employers cut 3,900 jobs and the state's unemployment rate rose slightly to 4 percent, according to figures released Thursday by the Minnesota Department of Employment and Economic Development. U.S. unemployment is 5.3 percent.

July's job decline was offset somewhat by an upward revision of 2,700 jobs in June, bringing total gains that month to 5,600 jobs.

The growth of Minnesota's job market has slowed considerably in 2015, with employment roughly flat since April. The state has added 43,719 jobs in the past 12 months, compared with 62,803 jobs over the same period a year earlier.

The state economy has made back most of the deep job losses from the recession and has entered an era of more gradual growth, said Steve Hine, the labor market economist for the state.

Government led all sectors in July by adding 2,700 new jobs, primarily in local government. Professional and business services added 1,400 jobs, mostly in the administrative and support category. Finance and insurance 1,100 jobs and logging and mining added 300 jobs.

Leisure and hospitality - a category that includes hotels, restaurants and recreational businesses - lost 3,700 jobs. Construction lost 2,000. Trade, transportation and utilities lost 1,700, and private education lost 2,400 jobs."
 
    
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Minnesota Retailers Associaiton
400 Robert Street North, suite 1540
St. Paul, MN 55101
Tel. (651) 227-6631 - mnretail.org - mnra@mnretail.org