Summer 2016
VIRGINIA RETAIL FEDERATION LEGISLATIVE UPDATE:
New Overtime Rule & Its Impact on Local Retailers What is this “Overtime” Rule, you ask? For your reading pleasure, we’ve taken the liberty of breaking down the good, the bad, and the ugly.
It is estimated that 4.2 million salaried workers will be directly affected by this rule based on their current salaries. - Department of Labor, "Overview and Summary of Final Rule"
INSIDE THIS ISSUE: 01 VRF Legislative Update 02 Letter to Members 04 The RMA Scene 06 Think. Shop. Buy. Local’s
"Loyal to Local" Campaign
08 RMA Endorsed Vendors
RMA Member Picnic & VRF Silent Auction Recap
09 Welcome New Members! 10 Distinguished Retailer of the Year Award
11 RMA News & Events
To be more specific, the standard salary threshold for full-time, salaried employees is being increased from
$455/week ($23,660 per year) to $913/ week ($47,476 per year).3
First, let’s bring everyone up to speed.
But that's not all –
In 2014, a Presidential Memorandum directed the Department of Labor (DOL) to “update and modernize” the regulations defining which white collar workers are protected by minimum wage and overtime standards under the Fair Labor Standards Act (FLSA).1
In an attempt to prevent the salary levels from becoming outdated again and ensure that a certain percentage of full-time salaried workers always qualify for overtime, the salary threshold will automatically increase every three years based on wage growth over time.
Subsequently, in an effort to put more money into the pockets of those deemed “middle class workers” and improve the work-life balance of employees, the DOL issued its final rule making changes to the FLSA’s overtime exemptions. Through this, the DOL not only seeks to update regulations, but also ensure full implementation of FLSA overtime protections and simplify the identification of overtime-eligible workers. The end goal is to make exemption easier for employers and workers to understand and apply.2
"FUN" FACT: These changes will not allow the government to take into account economic conditions, geographic cost-ofliving differences or specific impacts on certain industries.4
So, what exactly do these new regulations entail? Here is a quick breakdown. The Final Rule primarily focuses on updating the salary and compensation levels needed for employees to be exempt. One of its biggest components is that minimum salary requirements for exempt employees will more than double the previous salary threshold level.
The final overtime rule also increases the annual compensation threshold for “Highly Compensated Employees” (HCE) from $100,000 per year to $134,004 per year. This threshold equals the 90th percentile of full-time salaried workers nationally and will also be increased every three years. "FUN" FACT: The projected HCE total compensation requirement as of January 1, 2020 will equal $147,524.5
Additionally, for the first time ever, a salaried employee’s bonuses and commissions can satisfy up to ten percent (10%) of the minimum threshold for overtime exemption. The catch? These incentive payments must be non-discretionary and paid on a quarterly or more frequent basis. (continued on page 3...)
STAFF CORNER Dear RMA Members, It’s hard to believe that we are already halfway through 2016! Our RMA Member Appreciation Picnic and Virginia Retail Federation Silent Auction has already come and gone and our First Friday Forum Breakfasts are on a break for the summer. While it may seem like the dog days of summer have arrived, it’s business as usual at the RMA office. We are looking forward to our upcoming Connect@’s as they provide multiple opportunities for you, our members, to get engaged, create new connections and foster existing relationships. I hope that you will be able to join us from 5:00-6:30 pm on Tuesday, July 26 at BES Studios and Tuesday, August 30 at The Virginia Cliffe Inn. With Fall right around the corner, we are in the midst of preparing for our events that honor individuals in the Greater Richmond Region. And this year is especially significant for our Distinguished Retailer of the Year Award as we celebrate 50 years of tradition. Nominations for this award are currently being accepted at
RetailMerchants.com/nominate-a-retailer. Don't wait - nominate your favorite local retailer today! Additionally, please be sure to mark your calendars for the 27th Annual Valor Awards coming up on Thursday, November 10. The Valor Awards allows us to honor area First Responders that have gone above and beyond the call of duty. By attending this event, you are showing your support and appreciation for those protecting and serving our communities day in and day out. This inspirational and memorable event is one that you certainly don’t want to miss. As you can see, we’ve got many things to look forward to in the coming months. We are happy to serve as a resource for you, and we thank you for your continued membership and support. I hope that you have a wonderful summer! Sincerely, Gretchen Nurnberger Event & Sponsorship Coordinator
VISION
CORE VALUES
Creating vibrant retail communities, together.
We are committed to our members and the retail industry.
MISSION
We are open, honest and direct communicators.
We help local retailers thrive.
We are passionate about our community. We are professional and accountable. We are collaborators who promote connectivity, change and creativity. We are a resource for our members. We expect excellence in ourselves and in our work.
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"New Overtime Rule & Its Impact on Local Retailers" continued...
"FUN" FACT: As soon as these changes take effect, each quarter end will fall on a Friday, Saturday or Sunday… good grief.
• Evaluate an employee's workload and realign their hours to 40/week to help reduce or eliminate overtime worked6
On a more positive note for retailers, the duties test, one of the three criteria an employee must meet in order to be exempt, will remain unchanged.4
The outcome? Regardless of the action taken, this will ultimately change how you run your business.
That’s a lot to take in. When will these changes go into effect? Ready or not, the deadline for these new regulations is December 1, 2016. Automatic updates to the standard salary level and HCE total compensation requirement thresholds will occur every three years, beginning on January 1, 2020. As an employer, what are my options moving forward? Recognizing that each circumstance will be unique, the DOL suggests various ways employers can adjust to the updated salary level. They encourage employers to choose one, or some combination, of the following options: • Increase salaries to (at least) the new threshold and retain any affected employee's exemption status • Pay overtime (i.e., time and a half) in addition to an employee's current salary when necessary
The Retail Partners Newsletter is published four times annually. EDITORIAL OFFICES Retail Merchants Association 5101 Monument Ave | Richmond, VA 23230 804.726.5043 PUBLISHER Diana Kent | dkent@retailmerchants.com EDITOR Danni Neal | dneal@retailmerchants.com CONTRIBUTING WRITERS David Hendrick Richard Hendrick Diana Kent Danni Neal Gretchen Nurnberger AD SALES Danni Neal | 804.662.5508 dneal@retailmerchants.com
Overtime expansion poses many challenges for the retail industry if these changes are allowed to take effect. Various concerns among employers include, but are not limited to: communication and morale issues, administrative burdens, regulatory risks, and a lack of opportunity to succeed in the workplace. The National Retail Federation (NRF) argues that the implementation of these rules “would add to employers’ costs, undermine customer service, hinder productivity, generate more litigation opportunities for trial lawyers and ultimately harm job creation.”7 The take away for retailers? The time to act is now. Simply put, congressional action is now the only way to stop these changes before they go into effect. “Congress must pass the Protecting Workplace Advancement and Opportunity Act (S. 2707 and H.R. 4773), which would nullify this rule and require DOL to perform an economic analysis of how changes to overtime regulations will impact nonprofits, small businesses and employers in other vulnerable industry sectors before issuing a new rule. The bill would also prohibit future proposals from including any automatic update mechanism. Visit NRF’s Action Center [online at NRF.com/Advocacy/ Action-Center] to quickly and easily send an email to your members of Congress to ask that they cosponsor this important workplace legislation.”4 In the meantime, looking for more information? We know the questions don’t end here. Be sure to utilize the many resources available on NRF.com to help prepare your business for the impact of these regulation changes. Remember, as a VRF and RMA member you have free access to these items. Additionally, the VRF team is available for any lingering questions and stay tuned for more information coming from RMA about an Overtime Rule workshop. ¹ Presidential Memorandum -- Updating and Modernizing Overtime Regulations | whitehouse. gov. (n.d.). Retrieved from https://www.whitehouse.gov/the-press-office/2014/03/13/ presidential-memorandum-updating-and-modernizing-overtime-regulations Questions and Answers - U.S. Department of Labor - Wage and Hour Division (WHD). (n.d.). Retrieved from https://www.dol.gov/whd/overtime/final2016/faq.htm 2
Overtime for White Collar Workers: Overview and Summary of Final Rule. (2016). Retrieved from United States Department of Labor website: https://www.dol.gov/sites/default/files/overtime-overview.pdf 3
7 Things to Know about the New Overtime Regulations. (2016, June 14). Retrieved from https://nrf.com/advocacy/policy-agenda/overtime 4
National Retail Federation. (2016, June 8). NRF Webinar: DOL Overtime Rules – Practical Guidance for Retailers/Restaurants. Retrieved from https://nrf.com/events/nrf-dol-overtime-webinar-june-2016 5
© 2016 Retail Merchants Association, Richmond, Virginia. All rights reserved.
United States Department of Labor. (n.d.). Plenty of Options with New Overtime Rule : U.S. Department of Labor Blog [Blog Post]. Retrieved from https://blog.dol.gov/2016/05/18/plenty-of-options-with-new-overtime-rule/ 6
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National Retail Federation. (2016). Overtime. Retrieved from https://nrf.com/advocacy/policy-agenda/overtime
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THE RMA SCENE 1 2 3
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Grand Opening at BetterMed Urgent Care's new Mechanicsville location
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Barry Almond (EVB) speaks at the Connect@ Urban Farmhouse event Lisa McSherry (Lex's of Carytown), Jenni Kirby (Crossroads Art Center), Camille Bird (Carytown, Inc.), and Chris Bossola (Need Supply Co.) mingle before Chris spoke at the May First Friday Forum Gretchen Nurnberger (RMA) and Scott Hicks (Snagajob) before speaking at the June First Friday Forum Carissa Ghaffari (Free Agents Marketing (FAM)), Diana Kent (RMA) and Linzy Browne (Capital Ale House) at Connect@ Urban Farmhouse
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Grand Opening Celebration of Cobb Technologies' new building Jeff Wicker (iHeartMedia) and Sherry Minson (RMA) at the Annual RMA Member Appreciation Picnic & VRF Silent Auction Kelli Lemon (Mama J's), Ashley Hawkins (Studio Two Three), Ken Wayland (FAM) and David Foster (High Point Barbershop) after their panel discussion at the April First Friday Forum Andy & Cori Williams (3Sports) and their sons, Cade & Clay, enjoy Joey's Hot Dogs at the RMA Member Appreciation Picnic & VRF Auction Grand Opening of Chesapeake Bank's new location at Lakewood Manor
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Kim Moody (trend.) & Gretchen Nurnberger (RMA) before the May First Friday Forum Len East (RMA) and Raul Cantu (Nacho Mama's) mingle at the June First Friday Forum Nancy Thomas (RMA), Shannon Shaw (Village Bank), Royal McCargo (1010 Post Construction, LLC), Megan Murray (UnBound RVA) and Sarah Williams (Village Bank) after the June First Friday Forum Jennifer Barbin (Randall Branding Agency) and Katherine O'Donnell (Richmond Region Tourism) at our May First Friday Forum
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Nhat Pham (SUCCESSWERKS), Lisa Schaffner (United Network for Organ Sharing) and Peter Larson (Cobb Technologies) promote Retailers4Life at our April First Friday Forum Grand Opening & 40th Anniversary Celebration at Richmond Security's new location in Chesterfield
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THINK. SHOP. BUY. LOCAL
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"LOYAL TO LOCAL" CAMPAIGN UPDATE:
New Video Series Engages Audiences
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We are almost halfway through the "Loyal to Local" series, our most recent campaign under the Think. Shop. Buy. Local program. The nine-video series that kicked off with "Getting to Know Need Supply Co." back in March, has significantly increased engagement and the overall reach of Think. Shop. Buy. Local's digital platforms.
26K
Total video views throughout the first two months of the "Loyal to Local" series
3 4 5
88%
Increase in Facebook engagement as a result of the first two videos in the series
2X
TSBL's overall reach has doubled since launching the "Loyal to Local" campaign
Help Keep The Momentum Going... We need your help to ensure these numbers continue to rise. In addition to sharing these videos, we ask that you continue to engage local consumers by informing them of your on-going events and deals throughout RVA. Take advantage of the increasing awareness of the Think. Shop. Buy. Local digital platforms and leverage this RMA member benefit!
Local Events Enter all upcoming events, grand openings, community fundraisers & more onto the TSBL Local Events Calendar.
Local Deals Tweet using the hashtag #LocalDealsRVA to automatically be added to the TSBL Local Deals page.
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THINK. SHOP. BUY. LOCAL
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UPCOMING VIDEOS:
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1. Need Supply Co. Shave Parlor
Stay Tuned For More!
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2. Kuba Kuba
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3. bbgb tales for kids
6. Studio Two Three
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7. Mama J's Kitchen
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New stories will be released throughout the coming months as the "Loyal to Local" series continues. Still to come: • High Point Barbershop & Shave Parlor • Studio Two Three • Mama J's Kitchen
4. Center of the Universe Brewing Co. 8. The Byrd Theatre
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9. Shockoe Atelier
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• The Byrd Theatre • Shockoe Atelier We invite you to sit back, relax, and get to know more about your fellow local retailers here in RVA!
5. High Point Barbershop &
DISCOVER PRIVATE CLIENT SERVICES CLOSE TO HOME When your assets are growing and changing, standard banking services aren’t enough to meet your complex financial needs. Fortunately, Private Client Services from First Tennessee are available in your area. With a dedicated financial concierge available, you’ll find it’s easier than ever to get the banking resources you need and the personal attention you deserve.
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7 | Retail Partners | RetailMerchants.com | ThinkShopBuyLocal.com | Summer 2016
MEMBER UPDATES ENDORSED VENDOR HIGHLIGHT:
Simplify Payment Processing As an RMA Endorsed Vendor, Worldpay delivers a wide range of value-adding payment-centric services and provides RMA members with a variety of exclusive offers at NO cost, with NO sales talk. Worldpay allows businesses of any size to accept payments both swiftly and securely. As an RMA member, you receive the following items: • FREE Terminal (Vx520) OR Signing Bonus ($200/$500/$750) • FREE Virtual Terminal and Card Reader • FREE Quickbooks accounting integration when accepting credit card payments • Discover On Us - NO fees when a merchant swipes a Discover card • FREE Mobile Card Reader
RMA members save 15-50% off their current costs when they become a Worldpay customer. Whether you are utilizing their services or not, Worldpay is always willing to answer any and all questions you may have. As a single-source provider, Worldpay allows you to bypass any frustrations associated with using thirdparty companies. To learn more about these exclusive RMA member-only offers, please contact your Worldpay representative, Scott Johnston, at (804) 836-6798 or scott.johnston@worldpay.us. For any additional information, visit us online at RetailMerchants.com.
ANNUAL MEMBER PICNIC & VRF SILENT AUCTION RECAP:
Bringing Our Own Sunshine The sky may have looked ominous, but the rain held off on the afternoon of Wednesday, May 11th and made for another great Annual RMA Member Appreciation Picnic! Held in conjunction with the VRF Silent Auction, the picnic is our way to say “THANK YOU!” to you, our members, for your continued membership and support. Bringing their own sunshine, several RMA members and their families joined us here at the RMA offices for a lively evening full of food, games, music and fun, kindly provided by our sponsors. We would like to extend a big thank you to Chesapeake Bank, Chick-Fil-A, Joey’s Hot Dogs, King of Pops, Mix 98.1 FM,
ENDORSED VENDORS RMA’s Endorsed Vendors offer free consultations and reduced pricing to RMA members.
D
P
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DOMINION PAYROLL SERVICES
Joe LaBella
804.355.3430 jlabella@dominionpayroll.com
Brooke Barnes
804.290.1124 brooke.barnes@vafb.com
Meagan Vickery
804.382.1274 meagan.vickery@vafb.com
Doris Ann Kane
804.649.6291 dkane@timesdispatch.com
Richmond Kickers & Ukrop’s Homestyle Foods for your contributions! In addition to the many festivities, guests perused and bid on the various auction items donated by other fellow members. Thanks to our members' support, we were able to raise nearly $7,500 for the VRF Political Action Committee (PAC) this year! These funds benefit the VRF PAC's efforts to support pro-business and retail issues at the Virginia General Assembly. Many thanks to everyone who attended the picnic, donated an auction item, sponsored the event or bid in the Silent Auction. We look forward to seeing you again next year!
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Allison Cherry
804.317.3432 allisoncherry@ups.com
Scott Johnston
804.836.6798 scott.johnston@worldpay.us
LOOK WHO HAS JOINED SINCE OUR LAST ISSUE:
NEW RMA MEMBERS Title Sponsor
Welcome to the Family! 43rd Street Gallery Bounce 2 The Moon, Inc. Blueswipe LLC Dex Media Experimac Growlers To Go NIMBL Marketing NEW MEMBERS AT THE MAY FIRST FRIDAY FORUM
Restaurant Positive
From Left to Right: Shaun Franck (Melaleuca), Kim Moody (trend.), David Wulffen (Blueswipe LLC) and Tim Ryan (Blueswipe LLC)
trend.
Hate
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9 | Retail Partners | RetailMerchants.com | ThinkShopBuyLocal.com | Summer 2016
RichmondSecurity.com Southport Corporate Center 491 Southlake Blvd. | Richmond, VA 23236
RMA NEWS & EVENTS
CELEBRATING
50
years
OF TRADITION
Distinguished Retailer of the Year "Award Season" is nearly upon us here in RVA! Starting in 1966 with William B. Thalhimer, Jr., President & CEO of Thalhimer's, the Distinguished Retailer of the Year award has honored exceptional retailers throughout the Greater Richmond area for the past half-century. 2013 Distinguished Retailers of the Year, Richard and David Hendrick, brothers and co-owners of Custom Kitchens, Inc., share their sentiments behind their membership and receiving this time-honored award:
The benefits of belonging to the Retail Merchants Association are invaluable. There are many wonderful business people in the association, and all of them are willing and happy to share their knowledge and friendship with you. We have gained so much knowledge, both professionally and personally. To be chosen [for] the Distinguished Retailer of the Year award in 2013 was an honor. Our dad started Custom Kitchens, Inc. in 1957. We have worked hard to continue the values and traditions that he started. It is nice to be recognized by our peers with this great award. - Richard Hendrick & David Hendrick, Co-owners of Custom Kitchens, Inc.
Help us continue this long-standing tradition and celebrate its big 5-0 by nominating one of your fellow local retailers! Know a deserving retailer? Someone who is a proven leader in their field, who actively supports and gives back to the RVA community? Nominate them by visiting RetailMerchants. com/Nominate-A-Retailer. Additionally, be sure to mark your calendars for Tuesday, October 25th for our Connect@ The Virginia War Memorial Foundation, where we will celebrate the award nominees. We look forward to seeing you there! 10 | Retail Partners | RetailMerchants.com | ThinkShopBuyLocal.com | Summer 2016
RMA NEWS & EVENTS NEW RMA STAFF MEMBER:
Welcome, Addie! Welcome Addie Miller, to the Retail Merchants Association team! Addie will be joining RMA as the Member Relations Coordinator. Coming from a background in physical therapy, business development and even a stint in retail, Addie’s variety of skills will help her excel in this new role. Additionally, she has been involved in many community organizations and currently serves on the Junior Board of the Children’s Hospital Foundation at VCU. In her role as the Member Relations Coordinator, she will use her skills and experience to build relationships with RMA members and partnerships with other local merchant associations. She will serve as the liaison between our merchant association members and their RMA resources as well as help project manage specific tasks. As a Charlottesville native, she is currently loving living in Richmond with her husband Kevin and two children. We are so excited to welcome her on board!
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August 16
KEY SESSION
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CONNECT@
The Virginia Cliffe Inn
September 09
ECONOMIC FORECAST
with Alan Gayle, Director of Asset Allocation and Senior Investment Strategist at RidgeWorth Investments
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Save the date! 11.10.16
October 07
Honoring our First Responders For more information: Contact Gretchen Nurnberger at 804.662.5518 or gnurnberger@retailmerchants.com.
FIRST DAY OF FALL!
FIRST FRIDAY FORUM LUNCH with Dr. Ronald Crutcher,
President and Professor of Music at the University of Richmond
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CONNECT@
The Virginia War Memorial Foundation
REGISTER NOW AT RETAILMERCHANTS.COM. 11 | Retail Partners | RetailMerchants.com | ThinkShopBuyLocal.com | Summer 2016
PRSRT STD US POSTAGE PAID RICHMOND, VA PERMIT #2254 Retail Merchants Association | 5101 Monument Avenue | Richmond, VA 23230 Phone (804) 662-5500 | Toll free (866) 750-2532 | www.RetailMerchants.com Facebook.com/RetailMerchants Facebook.com/ThinkShopBuyLocal Facebook.com/VirginiaRetailFederation Twitter.com/RetailMerchants Twitter.com/ShopLocalRVA Twitter.com/VARetailFed Instagram.com/ShopLocalRVA
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