RAN June 2023

Organized Retail Crime: A Growing Workplace Threat for Retailers

NOT LONG AGO THE IDEA THAT ORGANIZED CRIME WAS flooding online marketplaces with stolen goods was better left to the movies. Now hardly a day goes by without another headline story about the harm this is causing in communities across the country. Organized retail crime (ORC) is now one of the leading workplace safety risks retailers are facing as economic pressures continue to grow, boosters become more violent, and the internet makes it easier for criminals to get away with their crimes.

Growing economic pressures create a perfect storm for organized retail crime; hard times make it easier for the organizers of these crime rings to recruit individuals to participate in the theft, transport, and distribution of stolen goods, and consumers are willing to make more compromises for lower prices. Unfortunately, this puts consumers at the greatest risk of purchasing counterfeit or damaged

By Bryan Wachter

Bryan Wachter

merchandise. These risks are even greater when the items for sale are baby formula or over-the-counter medications.

When it comes to workplace safety, there is a growing risk of altercations between store staff and the boosters removing the products from the store. The National Retail Federation (NRF) in their April 2023 report found that 15 of 21 violent ORC groups began operation in 2021, indicating an alarming trend for workplace safety. Many big box retailers have instituted company policies that employees are not to attempt to stop a theft in

progress, but that’s not always enough. Last fall an employee working for The Home Depot in North Carolina was fatally shot when asking to verify a receipt. Typically violent altercations take place when the booster is removing the product from the store; however, also potentially dangerous is when the diverter (sometimes referred to as the fence) returns the stolen product to the store, hoping to receive a cash refund. As stores restrict their policies in an attempt to curb the growing return fraud negatively impacting the store’s bottom

Father’s Day Sales Projected to Reach $367 Million in Silver State Nationwide

EACH JUNE, FAMILIES COME TOGETHER TO HONOR THE

fathers and other important men in their lives. This Father’s Day, consumers in Nevada are projected to spend a record $367.6 million on outings, clothes and other dad-centric gifts, according to the Retail Association of Nevada (RAN). The estimate is based on a recent survey by the National Retail Federation (NRF) that found that 75.0 percent of Americans will be celebrating this special day, with the average household spending $196.23. Compared to 2022, household spending is up 14.2 percent and is the highest level in the survey’s history. National

Spending Expected to Approach $23 Billion

spending is expected to reach a record $22.9 billion, up 14.5 percent on the year.

According to the NRF survey, 61.0 percent of respondents plan to give greeting cards, the most gifted item, with spending reaching $15.0 million in Nevada. Clothing is the second mostpopular gift of choice, with 55.0 percent of participants planning to spend $56.3 million in the state. Another popular gift is a special outing, with 52.0 percent of respondents indicating they would spend $70.0 million. Other popular gifts include gift cards (48.0 percent), electronics (27.0 percent), personal care items (32.0 percent) and tools or appliances (26.0 percent),

with consumers in the Silver State projected to spend $45.1 million, $40.9 million, $27.1 million and $25.1 million respectively in these categories. Sporting goods, automotive accessories and books or CDs will also each be gifted by 24.0 percent of respondents, bringing in $21.7 million, $20.2 million, and $12.0 million in spending respectively.

Interestingly, 29.0 percent of respondents indicated that their gift would include some kind of experience (such as sporting event tickets), and 42.0 percent said they would gift a subscription box. Each of these categories are at their most popular levels since the inception of the survey. While 50.0 percent of Americans said

Organized Retail Crime

Continued from page 1 line, the individuals trying to pass off the stole goods may become increasingly angry or even violent.

The COVID-19 pandemic accelerated today’s organized retail crime. Consumers became much more comfortable shopping with online marketplaces, presenting an opportunity for interstate and international sales of stolen goods. The INFORM Act has been beneficial to require large volume sellers to disclose

their business information, and platforms like Amazon are cracking down on stolen goods listed on their sites. Ultimately, it is the consumers who will have to be diligent to police the private marketplaces and protect their own health and welfare.

Organized retail crime is a new reality in the workplace and a significant threat to workplace safety for both employees and customers. It takes the cooperation of lawmakers,

law enforcement and retailers to both stop the current perpetrators of ORC as well as draw the lines to prevent it from growing. The most important things for retailers to do are institute policies for how their business interacts with suspected shoplifters AND report ORC events. The NRF report estimates that ORC is underreported by retailers by as much as 50% percent. The Las Vegas Metropolitan Police

they will celebrate their father or stepfather, 27.0 percent indicated they will celebrate their husbands. Other lucky gift recipients include sons (11.0 percent), brothers (9.0 percent), friends (8.0 percent) and grandfathers (7.0 percent). Celebrants indicated that they would be shopping at myriad places to find the perfect gift for dad this year. Online stores were the most popular places to order gifts, with 43.0 percent of respondents planning to shop there. Department stores came in second with 38.0 percent of shoppers planning to visit, with specialty stores expecting to see 22.0 percent of shoppers as well.

Source: NRF

Department reported to the Nevada legislature that organized retail crime cost Nevada businesses more than $850M in 2022. That’s more than $70M in lost sales tax revenue to fund education, public safety and public health in Nevada, and that may only be half of the picture. Together lawmakers, law enforcement and retailers will find solutions to keep retail establishments safe for employees and customers.

STATE OF NEVADA

JOE LOMBARDO GOVERNOR

TERRY REYNOLDS DIRECTOR

BRETT HARRIS LABOR COMMISSIONER

Department of Business & Industry

OFFICE OF THE LABOR COMMISSIONER

www.labor.nv.gov

STATE OF NEVADA MINIMUM WAGE

2023 ANNUAL BULLETIN

POSTED APRIL 1, 2023

PURSUANT TO ARTICLE 15, SECTION 16(A) OF THE CONSTITUTION OF THE STATE OF NEVADA AND ASSEMBLY BILL (AB) 456 PASSED DURING THE 80TH REGULAR SESSION OF THE NEVADA LEGISLATURE (2019), THE FOLLOWING MINIMUM WAGE RATES SHALL APPLY TO ALL EMPLOYEES IN THE STATE OF NEVADA UNLESS OTHERWISE EXEMPTED. THESE RATES ARE EFFECTIVE AS OF JULY 1, 2023 AND WILL INCREASE AS SET FORTH BELOW UNTIL JULY 1, 2024.

FOR EMPLOYEES TO WHOM QUALIFYING HEALTH BENEFITS HAVE BEEN OFFERED/MADE AVAILABLE BY THE EMPLOYER THE LOWER TIER RATE MAY BE PAID. PLEASE SEE SENATE BILL 192 PASSED DURING THE 80TH REGULAR SESSION OF THE NEVADA LEGISLATURE (2019).

FOR ALL OTHER EMPLOYEES, EMPLOYERS MUST PAY THE HIGHER TIER RATE AS SET FORTH BELOW:

NEVADA BALLOT QUESTION 2 PASSED NOVEMBER 2022 ELIMINATES TWO-TIER MINIMUM WAGE AS OF JULY 1, 2024:

Copies of this notice may be obtained from our website at: www.labor.nv.gov or by contacting the addresses and phone numbers listed above. Assembly Bill 456 https://www.leg.state.nv.us/App/NELIS/REL/80th2019/Bill/6870/Text Senate Bill 192 https://www.leg.state.nv.us/App/NELIS/REL/80th2019/Bill/6334/Text

WITH JUNE BEING NATIONAL SAFETY

Month, now’s the perfect time to consider some important questions about protecting workers. What do you know about the proper use of Personal Protective Equipment (PPE) at the workplace? What is PPE? We’re talking about anything from respirators of all types, hard hats, face shields, goggles, gloves, hivisibility vests, safety shoes, and coveralls; earplugs, earmuffs, safety glasses and more.

A critical risk management concept called the Hierarchy of Controls discusses the ideal role and proper use of PPE. Hierarchy-based

How’s Your PPE Program?

Guest Submission from PGM Services

risk management should influence when and how employers assign PPE. To put it bluntly, PPE is the last line of defense against hazards, and it is the least preferable way to protect employees. When assigning PPE, the employer is essentially saying, “Dear employee, nothing else is feasible to protect you. We cannot change our scope of services. We cannot subcontract this hazard out. We cannot change the equipment. We cannot expose something else to the hazard. We cannot change the way we assign employees to this task. We must expose you to this hazard, and the only thing

The above “We cannot…” examples address the higher levels of the Hierarchy of Controls. They are:

1) Eliminate the hazard exposure. Do not perform the task that presents the hazard, whether through declining the work or subcontracting it out.

2) Substitute the hazard exposure. Put something else in proximity to the hazard instead of an employee; or when applicable, substitute the hazard itself out for something less hazardous.

3) Engineer out the hazard exposure. Build something permanent that separates the employee from the hazard.

4) Administratively control the hazard. Lower the frequency or duration of employees’ individual exposure to the hazard. And the Last Line of Defense:

So why does the Hierarchy of Controls classify PPE as the least preferable? It is because so much can go wrong since successful PPE use largely depends on the decisions of the worker. No two workers are exactly alike across all factors that can defeat the PPE’s protection, for example: physical compatibility with it, competency in wearing it, level of concern about it, remembering to wear it, etc. PPE is more defeatable than other control methods. When PPE is defeated, hazard exposure exists, and injury probability increases. Ultimately, PPE failures can affect business profitability along with human health and safety.

between you and the hazard is this PPE you’re assigned to wear.”

5) Assign PPE to employees that must work exposed to the hazard.

The time and documentation required for an effective PPE program are the hidden costs of choosing this control method. Did you know that you must document every PPE assignment? OSHA requires communicating your PPE selection decisions to affected employees. The sheer amount of written documentation just within

Political Corner: 2024 Landscape and Lombardo’s Big Bet RAN Staff

WITH THE END OF THE 82ND NEVADA

Legislative Session, Governor Joe Lombardo finds himself at a critical juncture in his political career as he seeks to maintain influence over public policy in the state. With the impending 2024 election and the reality of the most recent redistricting, the focus for the foreseeable future in Nevada is shifting from which party will control the Nevada Legislature to the Governor’s ability to successfully veto legislation. Losing just one Republican seat in the Nevada State Senate or failing to gain a seat in the Nevada Assembly could severely curtail his authority.

The 2024 election map for the State Senate presents a formidable challenge for the Republican Party. Only two swing seats are

up in 2024, Senate 5 and Senate 18, both of which are currently held by Republicans. This limits the potential for seat gains for the Republicans in the Senate while leaving room for the party to lose ground. Furthermore, redistricting was not

Report

Lombardo’s political relevance is contingent upon the success of Nevada Assembly Republicans in the forthcoming election. Although this group has historically experienced a mixed track record, losing all but a handful of swing races in the

campaigns (Assembly 21, Assembly 25, Assembly 29, Assembly 41). To maintain his influence, the Governor must secure victory in at least two out of the six contests, despite Democrats holding the advantage in four races and the remaining two being highly competitive.

kind to Senate Minority Leader Gansert’s seat (Senate 15) from a swing seat to a safe Democratic seat. Consequently, Governor Lombardo faces the arduous task of winning all three seats – SD5, SD15 & SD18, including one that would necessitate a political miracle.

Governor Joe

last 3 election cycles, the Assembly map offers a more favorable landscape. Two swing seats, Assembly 37 held by a Democrat and Assembly 2 held by a Republican, along with four seats leaning Democratic, present potential opportunities for wellexecuted Republican

In light of the challenges posed by the State Senate election map, Joe Lombardo’s political trajectory heavily relies on the success of Nevada Assembly Republicans. While the State Senate presents a daunting scenario, the Assembly provides a glimmer of hope. The outcomes of these races will ultimately determine whether Governor Lombardo retains his authority to shape public policy in Nevada or faces significant limitations in the future.

BOULDER CITY IMPLEMENTS RATE INCREASES FOR UTILITIES CUSTOMERS

Boulder City has announced plans to raise rates for residential utility customers due to various factors, including record inflation, the impact of drought on hydropower availability, and rising costs. The rate increases are expected to be around 3% and will vary based on the type of customer and their energy, water, and wastewater needs. The city aimed to keep the increases as low as possible, with customers who use the least amount of utilities experiencing a lesser impact. For instance, small mobile homeowners can expect their monthly bill to increase by approximately $3, while larger homes over 2,000 square feet may see an increase of about $9 per month. The rate adjustments are scheduled to take effect in October. KTNV

ARIZONA, CALIFORNIA, AND NEVADA REACH HISTORIC AGREEMENT ON COLORADO RIVER WATER CUTS

Arizona, California, and Nevada have reached a significant agreement to reduce their water consumption from the Colorado River, which has been severely impacted by a combination of climate change-induced megadrought and excessive

Nevada News

usage. The Department of Interior announced the deal, which aims to alleviate the strain on the waterway and its reservoirs and safeguard water supplies for millions of people and vital agricultural regions in the Southwest. Under the agreement, the three states will collectively conserve at least 3 millionacre-feet of water by 2026, resulting in an unprecedented 13% reduction in total water use in the lower Colorado basin. The federal government will allocate $1.2 billion to compensate cities, tribes, and water districts for the conserved water. The agreement is subject to a federal government review process, with support from all seven states that rely on the Colorado River. Axios

NEVADA STATE COLLEGE PROGRAM CELEBRATES

FIRST-GENERATION STUDENTS

Nevada State College has been awarded a generous anonymous donation of $4 million to establish the First and Fierce program, aimed at supporting and empowering first-generation college students. The program will offer a range of resources and mentorship opportunities to help these students succeed in their academic pursuits. The funding will not only benefit current students but also enable the college to welcome new first-generation

students and provide them with additional avenues to achieve their educational goals. Nevada State College President, Dr. DeRionne Pollard, expressed gratitude for the donation, emphasizing the program’s potential to bring hope, opportunities, and essential resources to their first-generation student community.

News 3 Las Vegas

NEVADA RECEIVES

$151.9 MILLION IN CVS OPIOID SETTLEMENT

Nevada has reached a settlement with CVS Pharmacy, resulting in $151.9 million being allocated to the state in relation to the opioid crisis. Attorney General Aaron D. Ford announced that the total amount received through opioid litigationrelated settlements in Nevada has now reached $606 million. The settlement requires CVS to establish a Controlled Substance Dispensing Oversight Program with measures to identify red flags related to patients, prescriptions, and prescribers. The state will receive $66.6 million, while $80.9 million will be distributed among local governments. The funds allocated to the state will be placed in the Fund for Resilient Nevada, providing significant support to address the impacts of the opioid epidemic. The settlement was announced during a news conference

in Carson City, emphasizing the commitment to hold accountable those responsible for contributing to the crisis.

8 News Now

NEVADA UNEMPLOYMENT RATE HIGHEST IN THE NATION, RISING TO 5.7%

IN APRIL

Nevada had the highest unemployment rate in the United States in April, with a rate of 5.7%. This is a rise from the previous month, indicating that the state is still struggling with employment issues. The specific reasons for this high rate are not detailed in the summary provided, but it is generally linked to the economic impacts of the COVID-19 pandemic which significantly affected sectors like tourism and hospitality, key industries in Nevada.

8 News Now

CALIFORNIA THEFT RINGS IMPACTING BUSINESSES IN NORTHERN NEVADA

A surge in theft rings from California is impacting Northern Nevada, according to the Reno Police Department (RPD). These organized groups reportedly steal merchandise from retail stores and sell it online on platforms such as Facebook Marketplace. These thefts range from petty larceny to felony robbery, and the stolen goods can end up

SUPERMARKETS TOP ONLINE GROCERY SATISFACTION SURVEY

In a recent online grocery satisfaction survey conducted by The Feedback Group, supermarkets have emerged as the leaders, surpassing Amazon and mass merchandisers Walmart and Target. Supermarkets received a high overall satisfaction score of 4.40 out of five points, while Amazon scored 4.30 and mass merchants scored 4.26. Discount grocers like Aldi and Lidl achieved a score of 4.11, while dollar stores had the lowest score at 3.90. The survey results indicate that the investments made by supermarkets in online shopping have yielded positive outcomes, according to The Feedback Group’s analysis of 1,000 online food shoppers.

Grocery Dive

TARGET AIMS TO EXPAND GROCERY PRESENCE AS CONSUMERS TIGHTEN SPENDING

Target, known for its wide range of products from home goods to clothing, is making a push to be recognized as a destination for grocery shopping as well. Currently, only 21% of Target’s annual sales come from food and beverage, in contrast to rival Walmart, which derives nearly 60% of its sales from groceries. However, as consumers become more

budget-conscious and prioritize essential purchases, the importance of grocery sales as a driver of foot traffic has grown. Target’s upcoming earnings report will reveal whether increased grocery sales can offset softer sales in other categories such as apparel and electronics.

CNBC

U.S. CONSUMER SENTIMENT HITS

6-MONTH LOW AMID DEBT CEILING DRAMA

U.S. consumer sentiment dropped to a six-month low in May, driven by concerns over political debates regarding raising the debt ceiling, which could potentially lead to a recession. The University of Michigan’s survey also revealed a significant increase in consumers’ long-term inflation expectations, posing challenges for the Federal Reserve as it considers its monetary policy tightening. The preliminary reading of the overall consumer sentiment index came in at 57.7, the lowest since November 2022. The deterioration in sentiment is attributed to the debt ceiling crisis, and if left unresolved, it could worsen the economic consequences of default. However, some economists caution against overemphasizing the impact of sentiment on consumer spending, highlighting that there is no strong correlation between the two.

COSTCO AND WALMART JOIN BIDEN ADMINISTRATION’S SUPPLY CHAIN DATA EXCHANGE

The Biden administration’s Freight Logistics Optimization Works (FLOW) initiative, aimed at providing real-time visibility into U.S. supply chains through data exchange, has expanded to include 53 companies representing the end-to-end supply chain. Retail giants Costco and Walmart, along with Union Pacific railroad, have joined as new FLOW members. The program collects anonymized shipment data, enabling participants to anticipate container demand and track supply chain conditions up to three months in advance. With the Biden administration’s plan to scale the tool and respond to industry interest, FLOW is expected to play a crucial role in navigating future supply chain disruptions beyond the pandemic.

Retail Dive

BEST BUY UNVEILS MULTI-TIERED MEMBERSHIP PROGRAM

Best Buy has announced a revamped membership program that will feature three tiers: My Best Buy, My Best Buy Plus, and My Best Buy Total. Set to launch on June 27, the program offers various benefits such as exclusive deals, access

to special events, and free shipping. The entry-level My Best Buy tier is free, while My Best Buy Plus and My Best Buy Total are priced at $49.99 and $179.99 per year, respectively.

Retail Dive

INFLATION SLOWS DOWN IN APRIL

Inflation showed signs of easing in April, as per the latest U.S. Bureau of Labor Statistics (BLS) data. Foodat-home prices increased at a slower annual rate of 7.1% compared to the previous month’s 8.4%. The food-athome index also experienced a 0.2% decline in April when compared to March. Overall inflation continued its downward trend, reaching a yearly pace of 4.9%, the lowest 12-month increase since April 2021, according to the BLS.

Grocery Dive

BABY FORMULA PRICES SOAR TO RECORD HIGH

Prices of baby food and formula have reached an all-time high, surging by the largest margin on record in April. Manufacturers attribute the price hike to new regulations aimed at preventing shortages and ensuring product safety. The Food and Drug Administration’s guidelines have prompted increased inspections and adjustments, leading to significant cost increases for producers.

Important Information for SIG Members

NRS requires all existing members of a self-insured group to be notified of all new members. NRNSIG new members are listed below.

A Touch of Burlesque LLC

CACP - Durango LLC dba CHC Durango

Savior Hospice Care Inc dba 1Care Hospice Reno

NRNSIG members who wish to register a negative vote on a new group member, please write NRNSIG at 575 S. Saliman Road, Carson City, NV 89701, indicating which member and the reason(s) for the negative vote.

June Fun Facts

1. June is the month with the longest daylight hours of the year in the Northern Hemisphere, and conversely, June has the shortest daylight hours of the year in the Southern Hemisphere.

2. June’s birthstone is the pearl, the Moonstone and the Alexandrite.

3. The June birth flower is the Rose and the Honeysuckle.

4. In 2009 June was the 662 most popular name for girls in the USA.

5. June is derived from Juno, the goddess of marriage.

6. In both common and leap years, no other month begins on the same day of the week as June.

7. June is International Men’s Month.

8. June is accordion awareness month, as well as candy, dairy and papaya month.

(toll

in Nevada 800-690-5959).

Nevada News

anywhere, including outside the state. The RPD has emphasized the importance of being cautious when purchasing items online and recommends that consumers buy only from reputable sources to avoid buying stolen goods. MyNews4

Continued from page 6

NEVADA’S HIGHEST COURT HEARS INSURANCE DISPUTE FROM COVID-19 LOCKDOWNS

Nevada’s Supreme Court is hearing an insurance dispute case involving a group of businesses, including bars and restaurants,

National News

Despite easing shortages, prices remain elevated compared to pre-pandemic levels. Overall consumer price growth has moderated but remains at an annual rate of 4.9%.

Fortune

Continued from page 7

COMPANIES COMPETE TO MAKE LIVE SHOPPING A TREND IN THE U.S.

Several companies in the U.S. are vying to establish a presence in the emerging live shopping market, which

and their insurer, Illinois Union Insurance Co. The businesses claimed for losses due to statemandated COVID-19 closures, which the insurer denied, stating that virus-related shutdowns aren’t covered by their policy. Despite the District Court ruling in favor of

the insurer, the businesses appealed to the Supreme Court. The main point of contention is whether the governor’s orders equate to a “direct physical loss or damage” covered under their insurance policies, a decision that could influence similar cases statewide. LVRJ

is projected to generate $32 billion in sales this year. Poshmark, QVC’s parent company Qurate, Walmart, YouTube, eBay, and Amazon are among the companies investing in live shopping platforms and features.

How’s Your PPE Program

safety management can be a lot to manage, but with PPE, that documentation is the most dependable way to capture your communication. And here is something else, before you even assign that PPE, the same paragraph of OSHA regulations requires you to assess your workplace to

determine if the hazards even require PPE. And if you didn’t document this assessment, it may as well have never happened.

The requirement for ongoing employee supervision is another hidden cost of controlling hazards with implementing PPE. As your supervisors complete PPE documentation,

While live shopping has been successful in China, it has yet to gain significant traction in the US. Start-ups like Whatnot and Ntwrk are also entering the market, emphasizing their closeknit customer communities.

New York Times

Continued from page 4

be prepared for them to remain engaged on ensuring proper use. This can happen alongside production supervision, but production may need a pause when it becomes necessary to correct PPE un-use or misuse among employees as PPE controls require a much higher level of your supervisors’ time and attention.

For more information on the proper role of PPE in controlling hazards, or other safety questions or concerns, please contact PGM Safety Services, an affiliate company of Pro Group Management. We will be happy to assist when you visit us at www.pgmnv.com or call (800) 859-3177. 

NACDS Releases New Digital Resources for Formal End of COVID-19 Public Health Emergency

IN A MAY 9, 2023

NEWS RELEASE

THE NATIONAL ASSOCIATION of Chain Drug Stores (NACDS) has released a television and digital ad expressing gratitude to pharmacists and pharmacy teams as the formal COVID-19 public health emergency ends. The ad, which

highlights the crucial role pharmacists have played in administering over 300 million COVID-19 vaccinations, will air in Washington, D.C., and selected states.

NACDS President Steven C. Anderson emphasized the importance of these healthcare professionals in helping the nation recover. He

pledged continued advocacy for policies ensuring patients’ access to pharmacy services, including making permanent the pharmacy access enabled by the federal PREP Act, passing the Equitable Community Access to Pharmacist Services Act, and promoting

comprehensive pharmacy benefit manager (PBM) reform. NACDS celebrated recent victories in April when the Biden Administration extended many PREP Act provisions and improved vaccine access for uninsured individuals.