News

Regulatory Wrap-Up: Updates on paid leave, cybersecurity and trade

BY CSA STAFF

Wages

Kansas City, MO: The voter-approved $15/hr. minimum wage will begin to phase in four days (Aug. 24) before a recently passed state preemption law goes into effect; however, a previously enacted preemption law remains in effect for Kansas City and all other municipalities other than St. Louis (a judge struck down the law’s applicability to St. Louis). City officials have stated they will not enforce the new $10/hr. requirement during that four day period and reaffirmed that a state preemption law remains in effect.


Paid Leave

Michigan: The Michigan Board of State Canvassers gave approval to Michigan Time to Care’s paid leave constitutional amendment. The group can now begin gathering petitions. It has 180 days to collect over 300,000 signatures. The initiative would require businesses to allow employees to accrue one hour of paid leave for every 30 hours worked with a cap of 40 hours of paid leave per year.

Washington: The paid leave funding legislation passed earlier this year mandating weekly paycheck contributions by both employers and employees is currently in the rulemaking process. Multiple public hearings are being held during the month of August with public comments due by Sept. 1.

Albuquerque, NM: Opponents of the paid leave initiative are exhausting all legal options in an effort to remove it from the October ballot, appealing their case to the state supreme court. Ballots must be mailed to residents by Aug. 28, placing the legal challenge under significant time constraints. The initiative would apply to all businesses with a physical presence in the city and mandates that employers provide at least seven days of paid leave to employees.


Taxes

ACA: After the failed effort by Congressional Republicans to repeal the ACA, the IRS is reminding employers that reporting requirements remain in effect. The agency recently announced that it plans to enforce the employer requirements. To date, the IRS has not imposed any penalties even though the reporting rules have been in effect for two years.

California: A California Assemblyman is working on legislation to raise the state’s corporate tax rate from 8.84% to 9.84% for companies with 500 or more employees. The new revenue would be dedicated to building affordable housing. While a bill has not yet been officially introduced, this issue is likely to dominate the policy discussions when the legislature returns later this month.


Menu Labeling

New York: The New York City Health Department agreed to delay enforcement of the menu labeling requirements from Aug. 21 to Aug. 25 to allow negotiations with the affected business community to continue. If no agreement is made, the judge in the case brought by the NRA and NACS seeking to delay the city ordinance is expected to rule on an enforcement timeline by Aug. 25. The city law conflicts with the federal law which does not go into effect until May 7, 2018. Additionally, that law affects a larger pool of businesses. Under the NYC ordinance, foodservice establishments that have 15 or more locations nationwide must disclose calorie counts and other nutritional information as well as post a statement about the daily-recommended caloric intake.


Labor Policy

Labor Day Activism: Each Labor Day, unions and labor advocates celebrate the history of the labor movement, and press coverage around the holiday often focuses on the state of organized labor and ongoing union campaigns. The Fight for $15 campaign, for its part, is collecting petitions to highlight the positive impact of unions.

North Carolina: The Governor signed a new law creating an office to investigate employers who may be misclassifying workers as independent contractors to avoid providing benefits and paying taxes.


Safety

OSHA: In light of a potential security breach, the Occupational Safety and Health Administration announced it was deactivating a recently launched electronic portal for employer injury reporting. The Trump Administration had announced a delay in enforcement of the Obama-era rule requiring employers to report injuries via the portal, but OSHA instead launched the portal in July and some employers had already begun utilizing it.


Cybersecurity

NIST: The National Institute of Standards and Technology, the federal agency responsible for setting numerous standards including for cybersecurity, issued a draft revision of a special report outlining security and privacy controls for information systems. The report provides a catalog of operational protocols intended to protect all types of computer platforms including general purpose computing systems and internet of things devices from hostile attacks, natural disasters, human errors and privacy risks. The draft revision is open for public comment through Sept. 12.


Trade

NAFTA: Trade officials from the U.S., Mexico and Canada concluded the first round of NAFTA renegotiation talks and scheduled the second round Sept. 1-5 in Mexico. The joint press statement released this week focused on positive first steps and restated a commitment to a quick conclusion of the talks. All parties are seeking conclusion prior to domestic campaign seasons — U.S. midterm elections and Mexico’s presidential election. Behind the scenes, tensions were high as the U.S. ruled out minor tweaks and restated its intent for a full renegotiation. Issues such as rules of origin for auto parts, dispute-resolution systems and labor standards will be among the more challenging negotiations.

South Korea: US Trade Representative Robert Lighthizer announced an Aug. 22 special session of the Joint Committee under the Korea-US Free Trade Agreement (KORUS) to be held in Seoul. This marks the beginning of U.S.-initiated discussions regarding the efficacy of the free trade agreement as well as concerns over market access and the growing trade imbalance.

Japan: Following President Trump’s withdrawal from the Pacific Rim trade deal, the U.S. is engaging bilaterally with many of the countries that were partners to the TPP deal. The USTR announced an agreement with Japan to accelerate trade discussions. A day after the announcement, the U.S. raised concerns about tariffs on U.S. beef. No specific timeline of discussions was released.


Other

Texas: The controversial bathroom bill supported by the Governor and senate leadership failed to pass the house during the special session which adjourned this week.


Key Takeaways

The President’s unfortunate remarks over the past week have isolated him politically. His ability to drive outcomes on business community priorities has been incredibly diminished. Corporate leaders will need to refocus on Capitol Hill and work to build consensus among House and Senate leadership to proceed with tax reform and other issues important to operators.

The income inequality narrative took a new turn this week with legislation under discussion in California that would increase the corporate tax rate for “wealthy companies” to subsidize the construction of affordable housing. Similar to the CEO tax in Portland and the millionaire’s tax ballot initiative in Massachusetts, advocates continue to devise new taxes, capitalizing on the income inequality theme and driving an anti-corporate measure.

The business community defeated efforts in Texas to pass a bathroom bill modeled off of the North Carolina bill. It’s a notable victory given the Governor, Lieutenant Governor and many members of legislature were vocal supporters of the legislation.

Legislature Status for Week of 8/21/17

The United States Senate is in recess with pro forma sessions every 3 days until Sept 5

The United States House is in recess with pro forma sessions every 3 days until Sept 5

Ten state legislatures are currently in regular session

o CA, IL, MA, MI, NJ, NC, NY. OH, PA, WI

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We've recently launched a podcast that focuses on politics and policy for the restaurant industry. You can listen to the "Working Lunch" podcast by clicking here or subscribe on iTunes here.


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The Regulatory Wrap-Up is presented by Align Public Strategies. Click here to learn how Align can provide your brand with the counsel and insight you need to navigate the policy and political issues impacting retail.

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News

Wal-Mart envisions ‘floating warehouse’

BY CSA STAFF

Amazon isn't the only retailer thinking about drones.

Wal-Mart Stores has applied for a patent for a blimp-styled "floating warehouse" that could make deliveries directly to shoppers’ homes via drones, Bloomberg reported.

The machine would fly at heights between 500 ft. and 1,000 ft. and be equipped with multiple launching bays. It would be operated autonomously or by a remote human pilot.

Amazon was granted a patent for a similar type of vessel in April 2016, Bloomberg said.

To read more, click here.

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MARKETING/SOCIAL MEDIA

QVC to offer its first-ever TV-mobile AR shopping experience

BY Marianne Wilson

QVC is merging augmented reality technologies, broadcast and mobile to create a more immersive beauty shopping experience.

The multiplatform retailer has teamed up with Perfect Corp. to offer the first-ever TV-mobile AR shopping experience. QVC is deploying Perfect Corp.'s YouCam Makeup app to provide real-time virtual try-ons for a special selection of Laura Geller New York beauty products that will be featured on QVC’s "Today’s Special Value" program on Aug. 22. (For the daily program, QVC picks one special item they believe shoppers will love, and offers it at an exceptionally low price from midnight (ET) until 11:59 p.m. (PT) that day.)

The one tap try-on will allow viewers to virtually test the products directly from their mobile device and explore color options and finishes in seconds in order to help make more informed and confident purchase decisions.

“Customers will have the ability to virtually try on full makeup looks from day to night created by Laura Geller herself to find the perfect colors and shades for them," said Ellen Lennon, director of beauty merchandising for QVC. "YouCam Makeup is changing the way people shop for beauty by providing the mobile ‘try before you buy’ experience, and we are excited to bring this to our customers for the very first time.”

Viewers can text “QVC” to 20800 to receive an instant free YouCam Makeup download link for mobile trials of all the featured products, or visit QVC.com for a link to download the app. Throughout the day, shoppers will be invited to experience the products virtually through the app and complete their purchase.

“This unique collaboration with QVC is reinventing the beauty shopping experience by giving beauty lovers the chance to try featured products before committing to a purchase,” said Perfect Corp. CEO Alice Chang. “YouCam Makeup strives to push the boundaries of innovation and continues to solve and serve all of our beauty customer and brand needs. We addressed what can be a common pain point of home shopping — return rates — and introduced a virtual trial experience to ensure shoppers could feel confident in their purchase decisions.”

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