The Learned Concierge
Welcome to your monthly legal insights on the trends impacting the Retail, Hospitality, and Food & Beverage Industries.
Corporate/Mergers & Acquisitions
Why Two Luxury Retail Giants are Joining forces to Stave off Closure
The parent company of Saks Fifth Avenue is purchasing rival store Neiman Marcus as part of a blockbuster $2.65 billion deal that hopes to retain both brands’ wealthy shoppers.
Luxury retail shopping has slowly declined over the years, with Neiman Marcus Group among the worst-hit companies. The business filed for bankruptcy in 2020, and by September of that year, the company had planned to shed $4 billion in debt.
Neiman Marcus began to explore a merger with Saks amidst concerns shoppers no longer wanted to purchase pricey items from designer brands. To learn more, click here.
Cybersecurity & Privacy
The Monthly Rundown of All Things Cyber, Privacy, and Technology
Click here to read the Right to Know – July 2024, Volume 19
Logitech Faces Outcry After Announcing Subscription Mouse
Logitech Faces Outcry After Announcing Subscription Mouse – during a July 29, 2024, episode of the Verge podcast, Logitech’s CEO announced it was considering plans for a subscription computer mouse. The mouse, dubbed the “forever mouse,” is a heavier more expensive mouse that Logitech is debating how best to offer to the public. One plan is to charge just over $200 for the mouse the company claims will never need to be replaced. But another plan to charge users a monthly subscription for continuous software updates and services drew fire from the public. Logitech has not announced how it plans to move forward and if it is reconsidering the subscription model in light of the criticism.
Commerce Department Expected to Ban Chinese Software in Autonomous Vehicles
Commerce Department Expected to Ban Chinese Software in Autonomous Vehicles – The U.S. Department of Commerce is expected to ban the use of Chinese software and Chinese-developed advanced wireless communications in vehicles having a level of automation of Level 3 and above. These vehicles are capable of self-driving in certain circumstances with the driver present. The ban comes after Biden administration concerns over Chinese collection of large amounts of sensitive data on their drivers and passengers (and) regularly use their cameras and sensors to record detailed information on U.S. infrastructure.”
Environmental
Senate in Massachusetts Passes Bill Curtailing Use of Plastics Including Bags, Straws
The state Senate in Massachusetts has passed a wide-ranging bill curtailing the use of plastics, including barring the purchase of single-use plastic bottles by state agencies.
The bill, approved Thursday, also bans carry-out plastic bags at retailers statewide and require stores to charge ten cents for recycled paper bags. It also requires straws and plasticware to be available only by request and creates a program to recycle large items like car seats. It now heads to the House. Click here to learn more about this legislation.
Food & Beverage
Misleading Food Advertising is not Delivering, Faces Lawsuits
The food industry is facing more consequences for food advertising tactics that do not end up delivering on their product.
Major food companies are coming under fire for allegedly misleading the public, with lawsuits addressing issues ranging from the appearance of products to the actual ingredients represented therein. Whether or not the pertinent litigation ultimately bears fruit, anyone working in food advertising should take note of what, exactly, has invoked the ire of American consumers. To learn more, click here.
Ready-to-Drink Cocktails Bill Signed into Law in Pennsylvania
Liquor will soon be sold outside of the state store system with the passage of ready-to-drink cocktail legislation. Senate Bill 688 allows licensed retailers to sell ready-to-drink canned cocktails made with spirits, such as vodka and tequila, with an alcohol by volume of 12.5% or less. Click here to learn more.
Healthcare
The Pharmaceutical Retail Industry: A Paradigm Shift for Growth and Compliance Driven by Data Visibility
The pharmaceutical retail industry presents a paradox: it is highly regulated yet fragmented. This dichotomy arises from the diverse range of stakeholders, each with their own interests and priorities. This fragmentation poses challenges for medical and more retailers in complying with regulations, tracking inventory, and preventing counterfeit products from infiltrating the supply chain.
As such, medical and more retailers must take control of their supply chains to ensure accurate tracking and product authenticity. Click here to learn more.
Labor and Employment
Reminder: Check Federal and State Law When Employing Minors
As hospitality employers look to fill gaps in the talent shortage by employing students, they must comply with federal and state laws that limit working hours and provide safeguards for working conditions. A Las Vegas pizza chain was recently fined $300,000 for violating child labor laws by permitting minors to perform dangerous tasks (using industrial dough maker) and working too many hours per day and per week. The US Department of Labor District Director Gene Ramos said: “The U.S. Department of Labor is committed to safeguarding the rights and well-being of all employees, particularly the youngest and most vulnerable” He also noted that the department “continues to provide outreach and training to employers nationwide on compliance with federal wage and child labor laws.” Click here to learn more.
The US Supreme Court Reminds Employers No “Magic Words” are Needed to Request Accommodations
In Yanick v. The Kroger Co, an employee filed a lawsuit alleging failure to accommodate her limitations following breast cancer leave. The employee made some casual remarks that she had difficulty getting all of her tasks done and as a result, her supervisor demoted her. While the employee did not ask for an accommodation due to physical limitations from a disability, the Supreme Court ruled that knowledge of her medical leave should have prompted further inquiry by the employer. The case serves as a reminder to train supervisors and managers on how to spot issues that should be referred to HR for further discussion and action. Click here to learn more.
New Employment Laws Impacting Hospitality and Retail Employers Effective July 1, 2024
As of July 1, 2024, US employers face new laws impacting employment practices in areas such as background checks, data privacy, pay equity and workplace safety.
California Labor Code S. 6401.9 requires employers to create, implement and train employees on safety plans to prevent workplace violence., including pre-employment screening to identify potential risks. Cal/OSHA is developing a workplace violence plan that will meet the requirements of the new law.
Colorado SB58: Job Application Fairness Act, effective July 1, 2024, prohibits employers from seeking information that might reveal the applicant’s age during the initial process. This includes requiring dates of attendance from academic institutions. Similar restrictions are in place in California, Connecticut, Minnesota, and Pennsylvania.
New York City‘s Workers Bill of Rights requires employers to post notices of employee rights relating to worker classification, job applicant rights, pay transparency, salary history bans, rights when using an employment agency, and automated decision tools.
South Dakota SB12: Medical Cannabis in the Workplace clarifies that employers are not required to accommodate medical marijuana in the workplace and do not prevent an employer from taking an adverse employment action if an employee or applicant tests positive for cannabis metabolites if the employee is engaged in a safety-sensitive job.
Florida, Texas, and Oregon will need to comply with new data privacy laws that set standards for business collecting personal data about consumers and employees.
Biden-Era Worker Protections are on Shakier Ground After Supreme Court Ruling
Just hours after a Supreme Court decision gutted the power of federal agencies, a judge in Texas blocked the Labor Department from expanding overtime protections for workers. Click here to learn why it matters.
Artificial Discrimination: AI Vendors May Be Liable for Hiring Bias in Their Tools
Myriah Jaworski, Vanessa Kelly, and Chirag Patel authored an article, “Artificial Discrimination: AI Vendors May Be Liable for Hiring Bias in Their Tools.”
A federal court in California rejected the workplace screening company Workday’s motion to dismiss a hiring discrimination lawsuit brought against the company for its role in screening and evaluating job applicants. Central to the Court’s decision was its conclusion that “drawing an artificial distinction between software decision-makers and human decision-makers would potentially gut anti-discrimination laws in the modern era.”
Wage and Hour Update: Salary Basis Increase Now in Effect
Maria Dwyer and Hannah Reisdorff authored an article, “Wage and Hour Update: Salary Basis Increase Now in Effect.”
A federal court in the Eastern District of Texas halted enforcement of the salary threshold increases following challenges to the U.S. Department of Labor’s Final Rule – Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees, which amends the regulations at 29 CFR part 541 under the Fair Labor Standards Act. This stay of enforcement applies to the State of Texas, only. The Court also consolidated another pending challenge by various business industry groups. The Court ordered additional briefing on the consolidated matter. What does this mean for employers?
Michigan Legislature’s Adopt-and Amend Strategy Struck Down – Employers Must Prepare for Higher Minimum Wage and Expanded Paid Leave in 2025
Maria Dwyer and Vincent Sallan authored an article, “Michigan Legislature’s Adopt-and Amend Strategy Struck Down – Employers Must Prepare for Higher Minimum Wage and Expanded Paid Leave in 2025.”
After six years of litigation, on July 31, 2024, the Michigan Supreme Court issued its long-awaited opinion in Mothering Justice v Attorney General, holding that the Michigan Legislature’s adopt-and-amend strategy, meant to avoid putting minimum wage and paid sick time initiatives on the ballot, was unconstitutional. In doing so, the Michigan Supreme Court crafted a remedy that nullified the Legislature’s amendments and reverted to the original initiatives as adopted by the Legislature.
In its 105-page opinion, the Court analyzed dense Michigan constitutional law and outlined the numerous changes which impact all employers in Michigan.
Real Estate
Retail Real Estate Road to Growth: Top 10 Insights from Retail Experts
From examining retail real estate trends to exploring new consumer behaviors, the ICSC conference offered invaluable takeaways highlighting the forces driving transformation and growth in retail today. As the landscape evolves, these top 10 retail real estate takeaways underscore the importance of adaptability, innovation, and strategic planning.
Transportation
What They are Saying: Transportation and Logistics Industry Leaders Praise Valadao’s Supply Chain Bill
On June 25, 2024, Congressman David G. Valadao (CA-22) introduced the Safeguarding our Supply Chains Act. The bipartisan legislation aims to improve coordination between the Department of Homeland Security and the FBI to stop the rampant theft within our nation’s supply chains. Check out what industry leaders are saying about Congressman Valadao’s legislation by clicking here. Read a one-page summary of the bill here.
Industry Trends
Retail and E-Commerce In 2024: Top Trends to Watch
Currently, approximately 70% of Americans shop online monthly, and this number is only expected to increase. Yet, for many brands, the online shopping landscape presents significant challenges. So, what strategies can e-commerce businesses employ to navigate these challenges? And what market trends should you be aware of to stay competitive? Click here to learn more.
Retail Coach Shares Insights into the Once-Again Burgeoning Retail Sector
After a downward trend that gave pause to many retailers, brick-and-mortar is making a comeback. Successful retailers are shifting their business models to adapt to the ever-evolving needs of consumers. “Experience it before you buy it,” is a practice consumers cannot duplicate online. Retailers are integrating emerging technologies. To learn more, click here.
Combating Retail Theft
Target has implemented an over 18 policy for stores in markets particularly hard hit by theft or violence, such as Columbia Heights, DC. Anyone under 18 must be accompanied by an adult to enter the store. To learn more about this new policy, click here.
US Consumers Moving Away from Fast food as Prices Skyrocket
Trends show that consumers are moving towards casual dining as the cost of fast-food increases to $18 big mac meals and $24 Five Guys combination. But despite this trend, not all casual dining establishments are thriving. Red Lobster, for example, filed for bankruptcy and plans to sell its business. Click here to learn more.
