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icy for workers’ compensation fraud. Tell your employees about the costs of workers’ compensation fraud and explain that it could lead to serious consequences. • Encourage employees to share suspicions. Creating an environment where people can speak out will help detect fraudulent behavior. • Let your claims adjuster know your suspicions. When it’s serious enough, the claims staff may hire a private investigator to conduct surveillance. This might determine a situation where the claim can be denied or fraud can be pursued.
10. What are some common workers’ compensation terms?
There is plenty of jargon associated with workers’ compensation insurance. Here’s a basic glossary of terms: • Accepted claim/admitted claim: A workers’ compensation claim in which the injury or illness is covered by workers’ compensation insurance. • Alternative work/light duty: A new job offered to an injured employee that gets them back to work but not in the same role they performed while getting injured. • Claims administrator/adjuster: The individual at an insurance company who handles an injured worker’s claim. • Impairment rating: The percentage estimate of how much an injury has affected the use of an injured worker’s body. It can include physical impairments or mental impairments, and be permanent or temporary, severe or mild.
• Independent medical examination
(IME): A medical exam performed by a physician not chosen by the company or the injured worker. This step is typically taken after a dispute arises over the extent of an injury. • Permanent disability: Payments to an injured employee when an on-the-job injury permanently limits the kinds of work they can do and/or their ability to earn a living. • Temporary partial disability: Payments to an injured employee who can still work, but not at the same rate or level that they did before the injury or illness.
These payments are available for a limited time, ending when a worker makes a full recovery. • Temporary total disability: Payments to an injured employee who is unable to work at all for a temporary period.
The benefits stop when the employee can resume working.
Summary
Workers’ compensation insurance is an essential part of your insurance program and protects your employees and the business. It can be confusing, but it’s there for peace of mind knowing your injured employee will be cared for without paying out of pocket, which is why it’s important to choose your insurance company and broker wisely. They will support you with this process.
Also, your claims adjuster is your expert at navigating the rules and requirements of effectively applying the proper benefits promptly. Work with your adjuster and contact them when you have any questions.
JOHN HARP
CAN BE REACHED AT 908-604-2951 or jharp@msigusa.com One of two jackpot Powerball tickets for the January 5 drawing was sold at a 7-Eleven in Sacramento, reported KCRA.com. The other jackpot ticket was sold in Wisconsin. The winners will split the $630 million grand prize. • C-store chain Kwik Trip is asking customers to bring their own coffee cups because of a supply shortage that is affecting many foodservice retailers, reported CSNews Online. To make up for the inconvenience, customers who brought their own cups were temporarily able to get anysize refill for just 99 cents. • Walgreens executives said the drugstore chain lost more income to
theft and damaged items in 2021 than it did
in 2020 and is “absorbing a 52 percent increase in shrink,” reported Business Insider. Walgreens said organized crime has played a part in driving shrink up over the last two years. • Molson Coors announced it has teamed with Coca-Cola to launch a new line of alcoholic drinks under the Simply brand. The first product, Simply Spiked Lemonade, will launch this summer in a variety 12-pack of 12-ounce slim cans this summer. • Walmart buyers are the most likely to shop on Amazon within one day of visiting one of the retailer’s stores, according to a new study by Numerator on the showrooming effect—when consumers browse a brick-and-mortar store and then buy online. Over half (53 percent) of Walmart shoppers made an Amazon purchase within a day of shopping in-store at Walmart, compared to 38 percent of both Target and Costco shoppers. •
McDonald’s and its franchisees recently cut
operational hours by 10 percent in response to a lack of employees at a number of its U.S. locations because of coronavirus staffing shortages, reported Fox Business. The burger chain has struggled with
consistent employee attendance during the COVID-19 surge brought on by the omicron
variant as infections reached record levels in the first months of 2022. • A whopping 5.4 million new business applications were filed in 2021, surpassing the record set in 2020 of 4.4 million, reported NPR. org. Over the past two years, a number of people filing paperwork for new businesses lost their jobs in the pandemic and decided to become self-employed. • Taco Bell recently rolled out a $10 month-
ly taco subscription service that gives custom-
ers one taco per day for 30 consecutive days, reported CNN Business. The national program, called Taco Lover’s Pass, is available to purchase for mem-
The conference hall at the Hyatt Regency Savannah in Georgia was packed with franchisees and vendors who flew in from across the country to attend the NCASEF’s first quarter Affiliate Member and Board of Directors meeting, held February 7-10. Attendees also included several members of SEI upper management, who addressed franchisees on several topics. The twoday Board meeting featured informative vendor presentations by Coca-Cola, PepsiCo, Altria Group, Takeover Industries, Ferrara Candy, Botanic Tonics, and Payality. The mood was upbeat during the four-day event, as Board members, vendors and the SEI representatives appreciated being in the same room again.
The Affiliate Member meeting was first on the schedule. The morning session featured guest speakers Jack Stout, SEI Senior Vice President of Merchandising and Demand Chain, and Doug Rosencrans, SEI Senior Vice President of Franchise Operations. Also present from SEI were Jasmeet Singh, Vice President of Franchising and Operation Services; Bruce Maples, Senior Director of Franchisee Relations and Engagement; and Onutase DeHenre, Chief of Staff to President and CEO Joe DePinto. Topics included plans to accelerate expansion of the WIN coffee program, growing private label sales without cannibalizing name brand items, 7-Eleven’s and franchisees’ performance during the pandemic,
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and the new commissary being built in Virginia to serve Mid-Atlantic stores.
In the afternoon, vendors and franchisees broke off into four different workshop groups: Brokers and Wholesalers, Service Providers, Beverage Vendors, and Food Service and DSD Vendors. Participants discussed issues pertaining to their specific group and worked on solutions. The meeting was capped off with a tabletop trade show featuring 20 exhibiting vendors.
NCASEF Chairman Sukhi Sandhu commenced the Board meeting by outlining his vision and goals for the next two years. He said his primary objective is to strengthen the relationship and communication between franchisees— including among franchisees—vendors, and SEI. He said it is very important that all stakeholders in the 7-Eleven system are united. He also announced the formation of 12 (and counting) new NCASEF committees that will handle certain tasks. The committees include Accounting/Finance, Bylaws, Charity Golf, Convention and Entertainment, Digital/IT, Election, Facility Maintenance, Government Affairs/Community Relations, Logistics/ Simplification, Membership, Vendor Relations/Merchandise, and Store Profitability/Gasoline. All committee members are expected to hold regular Zoom meetings and make progress on their agendas.
Among the other items discussed was the need to reexamine the Franchise Agreement—particularly the gross profit split, which is negatively affecting low volume stores. It was suggested that the split should be changed in favor of franchisees as stores move more towards foodservice. Board members said the gasoline commission also needs to be revisited because the current structure doesn’t cover even half of the expenses of maintaining the gas pumps and islands. Problems with delivery check-in was another major point of discussion.
On day two of the Board meeting, Teeto Shirajee (President, South Florida FOA)
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and Nick Bhullar (President, Southern California FOA) were appointed interim Vice Chairs by the NCASEF Board and officers. They will serve until formal elections for the vice chair positions are held during the fourth quarter meeting in late October.
Issues discussed included KSR items in stores due to supply chain problems, the need to speak with SEI about overall pricing strategies, changing the bylaws so Members at Large cannot run for NCASEF office, the need to set a timeline for 7Boss and ASI 2 fixes, allowing stores to close overnight in high crime areas, and renegotiating the Franchise Agreement with SEI.
Next, Independent auditor Randy Walker reported on the completed audits of NCASEF’s 2018 and 2019 financials, which were healthy, while Treasurer Romy Singh presented a current financial report. NCASEF General Counsel Eric Karp spoke about the covered circumstances where limiting store hours is allowed as per the 2019 Agreement, store surrenders, and the current situation between Seven & i, ValueAct and the company’s shareholders.
A survey of Board and Affiliate members after the meeting revealed that attendees were very pleased with the content of the meeting and the way it was organized and conducted. Board members commented about good time management, how NCASEF officers stuck to the agenda, the open communication with SEI upper management, how informative the meeting was, and appreciated the formation of committees. Vendors indicated they were pleased with the breakout groups, having SEI present, and the ability to collaborate and interact with Board members.
The NCASEF Board of Directors will reconvene May 11-12 in Scottsdale, Arizona, when members will discuss progress made on some of the issues discussed during this session.
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bers of its rewards program who have downloaded the Taco Bell app. • In a bid to push more of its workers to get vaccinated against COVID-19, Kroger has eliminated paid pandemic-related leave and is charging $50 per month to employees that haven’t gotten shots, reported USA Today. Vaccinated workers who suffer a breakthrough infection will still get the paid emergency leave, and the health plan surcharge does not apply to hourly or union employees. • New York expects to generate more than $1.25 billion in marijuana tax revenue over the next six years, reported Marijuana Moment. For fiscal year 2023, the state is projected to collect $56 million in revenue, mostly from licensing fees. From there, the yearly revenue estimates increase as sales are expected to go online and expand: $95 million in 2024, $158 million in 2025, $245 million in 2026, $339 million in 2027 and $363 million in 2028. • Oreo celebrated 110 years by releasing a new cookie flavor, reported Fox Business. The cookie brand, owned by Mondelez International, reached its 110th anniversary on March 6, but released a limited-edition flavor on January 31—Chocolate Confetti Cake. • Wawa stores in Florida are looking to fill 2,000 full-time and part-time jobs, reported WFTV.com. The convenience store chain has more than 230 stores in Florida, and the open positions are the result of seasonal opportunities and new locations. The large-scale hiring effort is looking to fill store-level customer service, supervisory and management-level positions. • Reynolds American recently announced its support of TruAge, the new digital solution developed by NACS that enhances current age-verification systems and protects user privacy. TruAge is currently in pilot tests in three select markets and is expected to see wider rollout later in 2022. • After more than 20 years of steady but slow sales growth, sales at bulk retailers Costco, Sam’s Club and BJ’s Wholesale Club rose 26.6 percent in dollars and 18 percent in volume during the fourth quarter of 2021 compared with the same quarter of 2019, far greater than any other type of retail including dollar stores, grocery, drugstores and mass merchants, reported the Wall Street Journal. • As the spread of COVID-19 and the Omicron variant exacerbated already severe staffing shortages, Walgreens and CVS decided in mid-January to close some of their pharma-
Central Florida FOA Elects Officers
The Central Florida FOA announced that it held elections for Executive Board Members on December 9, 2021. Congratulations to (from left to right) Stephen Warris, Treasurer; Chinton Patal, Vice President West; Harvinder Thaper, Vice President East; Fari Ishani, President; and Merril Joseph, Secretary. cies on weekends, reported the Wall Street Journal. The companies said weekend shutdowns are unusual but become a reality when locations lack enough pharmacists and technicians to remain open. • While 80 percent of employed U.S. adults consider an employer’s professional development and training offerings an important consideration when accepting a new job, just 39 percent say
their current employer is helping them im-
prove their current skills or gain new skills to do their job better, according to the latest American Staffing Association Workforce Monitor online survey. • PepsiCo recently unveiled a new Rockstar Energy drink infused with hemp seed oil, B vitamins, spearmint, and lemon balm with a dose of caffeine. The company said Rockstar Unplugged—which is targeted at young, female consumers—focuses less on providing a big hit of energy and more on “enhancing good vibes.” • Japanese automaker Toyota Motor Corp outsold
General Motors Co in the United States in
2021, marking the first time the Detroit automaker has not led U.S. auto sales for a full year since 1931, reported Reuters. Toyota sold 2.332 million vehicles
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talent far outweighed other factors for boosting salary increases. Nearly three in four respondents (74 percent) cited the tight labor market for increasing their budgets from prior projections, while only one-third cited anticipated stronger financial results (34 percent) and inflation or the rising cost of supplies (31 percent).
Coffee Cups & Lids Are the Latest Supply Chain Mess
America’s latest shortage is of disposable cups, turning to-go cups and lids into one of the most precious goods in the U.S., reported the Wall Street Journal. A Starbucks in Chattanooga, Tennessee recently ran out of 24-ounce cups, forcing customers to upscale to the chain’s 30-ounce Trenta cups. A Starbucks Corp. spokesman said the chain was working to get more, and leftover holiday-theme cups were helping fill the gap. Restaurateurs and suppliers around the country are facing the same empty cupboard. Disposable cups imported from China and elsewhere are stuck in ports along the mucked-up supply chain, American paper mills are short workers, and the U.S. hasn’t caught up from the extreme cold snap in Texas last year that suspended production of resins used to make plastic cups and the coating on paper cups. Some places are fighting shortages and higher costs by selling branded, reusable cups that carry a drink discount. These environmentally friendly options were largely off the table early in the pandemic, restaurant operators said.
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The Most Popular Health & Beauty Items In C-Stores
Among health and beauty aid (HBA) products in convenience stores, Medical Accessories experienced the biggest increase in sales in 2021 at slightly more than $1 million dollars, a 30.7 percent increase over the previous year, reported CStore Decisions, citing the latest convenience store channel data from NielsenIQ. Other best-selling HBA products in c-stores last year include: • Pain Relief, at just over $348 million, a 6.2 percent increase. • Vitamins and Supplements, at just over $284 million, a 9.3 percent increase. • GI Care, at just under $125 million, up by 9.6 percent. • Travel Sets, at more than $986,000, an increase of 18.1 percent • Adult Incontinence Products, which had sales of nearly $579,000, a 26.6 percent increase. • Ear Care, which registered sales of almost $212,000, but with an increase year-over-year of 21.7 percent.
Results in other categories included Sun Care, with just over $14 million in sales and an 11.9 percent increase; Hand & Body Lotion, with sales in excess of $14 million and a 2.7 percent drop; Feminine Care, which saw sales of just under $46 million dollars, representing a 9.2 percent increase; Sexual Health, which registered sales just under $122 million, up by 0.3 percent; Oral Hygiene, with sales of just under $129 million dollars, a 4.8 percent increase; and Eye Care, which registered sales slightly under $62 million, up 5.0 percent.
C-Stores Struggling To Stay Fully Stocked
Frustrated shoppers hoping to pivot to a neighborhood convenience store to fill in some everyday necessities because of unpredictable product shortages and empty shelves at their favorite grocery stores may be out of luck, reported CNN Business. Convenience stores typically serve as an ideal substitute to a grocery store when all that’s needed is a case of water, a couple bags of chips or maybe just a carton of milk. But convenience store operators said the ongoing supply chain disruptions have also impacted their ability to adequately meet the fill-in needs of shoppers in larger cities and, more importantly, the daily essential needs of customers in secondary markets and rural areas where a c-store might be the only store in town for food items.
Convenience store chain TBX, which operates 50 stores across Texas and Oklahoma is averaging 6,500 to 8,000 out-of-stocks a week from manufacturers. That’s a very high number—an average of 12 percent to 13 percent currently, when it would normally be 1.5 percent. The company’s CEO said the usual contingency plan would be to restock with another brand, but even that’s proving to be difficult.
Wholesale Prices Increased Almost 10 Percent In 2021
Wholesale prices rose less than expected in December but still set a new standard at a time when consumer inflation is running at a nearly 40-year high, reported CNBC. The
producer price index, which measures prices received by producers of goods, services and construction, was up 0.2 percent for the month, half the 0.4 percent Dow Jones estimate. However, on a 12-month basis, the index was up 9.7 percent to end 2021, the highest calendar-year increase ever in data going back to 2010. The monthly gain was a sharp drop-off from the two previous months, which showed gains of 1 percent in November and 0.6 percent in October.
Record Number Of Workers Quit Their Jobs
A record number of workers quit their jobs in 2021 while U.S. employers had more positions to fill than ever before, reported CNN Business. In December, 4.3 million Americans quit their jobs, down slightly from the record 4.5 million in November, according to the Bureau of Labor Statistics. While millions of workers left jobs for cash incentives, better pay or better benefits, people also left the labor market to care for children or elderly relatives during the pandemic. Meanwhile, older workers re-
tired early either because they could or because age discrimination forced them out of the labor market.
Even though a record number of people quit their jobs last year, the U.S. labor market still recorded a net employment gain of 6.4 million. In total, 75.3 million workers were hired last year, while 68.9 million quit, were laid off or discharged. Out of these socalled separations, 47.4 million were voluntary quits. In line with that, the number of layoffs hit a new record low at 1.2 million in December, showing that the negative impact from the Omicron variant didn’t fully hit the labor market at the end of last year. Job openings stood at 10.9 million in December, compared with the data series high of 11.1 million recorded in July.
Member News
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Study Reveals Snacking Preferred Over Traditional Mealtime
Consumers prefer snacking as a regular eating behavior over traditional mealtime for the third consecutive year (64 percent today, up 5 percent since inaugural findings reported in 2019), according to Mondelēz International’s 2021 State of Snacking report.
This trending preference for snacking spikes among younger generations, with 75 percent of Gen Z replacing at least one meal each day with a snack. Furthermore, consumers are seeking snacks that deliver a range of benefits beyond physical well-being and nutrition needs. Consumers’ habits indicate both sustenance and indulgence are part of a balanced lifestyle, with 85 percent of consumers now eating at least one snack for sustenance and one snack for indulgence each day. Other key findings of the report include: • Expanded Definition—Nearly 80 percent of consumers globally say their definition of a snack has evolved over the last three years to include more or different types of foods, occasions for eating, or other elements.
• Expanding Snacking Experiences Through Social Connectivity—More than half of people globally say social media has inspired them to try a new snack over the past year. • Integrating Purchasing Decisions With Values—85 percent of consumers worldwide want to buy snacks from companies offsetting their environmental footprint.
Omicron Forces Grocery Stores To Cut Hours
Some U.S. super“In December, 4.3 million markets reduced hours and cut services as Americans quit their jobs, COVID-19’s Omidown slightly from the record cron variant infected 4.5 million in November.” cashiers, baggers and stockers, deepening grocery chains’ staffing challenges, reported the Wall Street Journal. Across the country, supermarket workers were calling out sick after contracting COVID-19 or getting exposed to the virus, prompting retailers to manage operations with fewer workers, while shopper demand for groceries remained high. Some grocers said they hired new employees, used temporary employment agencies and overscheduled available staffers to keep stores open. Supermarkets have struggled with hiring and retaining workers during the pandemic. Executives said unemployment benefits and federal stimulus checks made it harder to find people willing to work at their stores. Some executives and store workers said fears of working in public and potentially spreading or contracting COVID-19 are keeping potential employees out of the job market. Employee advocates said that even with government payments, many continued on page 43 AVANTI JANUARY | FEBRUARY 2022 41
