ID VERIFICATION New Florida law restricts drivers license swipes

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CUTTING COSTS Four ways you can reduce your shipping costs

Is Your Business Ready for

Health Care Reform?

Can my business claim the Small Business Health Care Tax Credit in 2014?

Could my business be subject to health care penalties?

What do I need to tell my employees?

Ready or not, like it or not, you are going to have to change the way you think about health insurance in your business.

2 Small Business Quarterly

The View From C-LevelThere Are Only Two Ways...

As a business owner or manager, you probably already know there are only two ways to increase revenue: increase customer traffic or increase the transaction size of the existing base.

Of course gaining new customers is the most expensive way to increase revenue. Media ads, direct mail, social media, targeted consumer lists... all work but are ex-pensive both in time and treasure. Perhaps the most effective method of growing the customer base is adding new categories of products or adding locations.

For all intents and purposes, you should think of the Internet as a “location.” It might not be brick and mortar, but it is just as important to your business. For more shoppers every year, the screen of a computer or tablet is the “door” that they walk through to meet you and shop your products. If a business does not have an online

store, or at least a basic website, they are missing a great opportunity to appeal to different shoppers.Some small businesses believe that they do not have the staff or resources to add some of these cus-

tomer building strategies. Other businesses know that to be successful, investments that return profits are not an option. Grow the base or wither.

The most inexpensive way to build revenue is to increase the revenue from existing cus-tomers. Since the days of the general store, merchants have done “suggestive selling” as a way to increase their revenue and profits. Mer-chandising resets (new plan-o-grams) always expose returning shoppers to items they have not seen in previous visits. Sales training is too often overlooked as a skill that needs repeating often.

Business owners who participate in share groups of peer companies seem to consistently perform at a higher level than those who go it alone. Sharing ideas related to promotions, sourcing, merchandising and operations ben-efits all attendees. It also creates a network of friends who can be counted on to lend an ear or share a solution that might just be perfect for whatever problem you are facing.

So... build your revenue by increasing your customer base and the size of your individual transactions. Grow your business and profits by being a smart manager and a great citizen of your community.

Richard A. McAllisterPresident and CEO

SUMMER 2013

PUBLISHERRick McAllister

EDITORJohn Fleming

2012-2013 FRF OFFICERS

Paul Imbrone Chairman of the Board of Directors Macy’s, Inc.

Dan Doyle Executive Committee ChairmanBeall’s, Inc.

Sandy Fortin Vice ChairmanS&J Sports/PlayItAgainSports

Tom PetrilloTreasurerThe Salon People/Aveda

Rick McAllister President & CEO Florida Retail Federation

ABOUTThe Small Business Quarterly is published as a service of the Florida Retail Federation and Florida Retail Federation Services. The views and opinions expressed in this publication are those of the authors, and may not necessarily reflect the official policies or positions of the Florida Retail Federation, its officers, or any member company or organization. The contents of this publication are intended for informational purposes only and not for the purpose of providing legal and financial advice.

Advertising inquiries may be directed to the Florida Retail Federation, and rates are available on request. The Florida Retail Federation reserves the right to reject any advertising deemed to be unsuitable for publication.

CONTACTJohn FlemingDirector of CommunicationsFlorida Retail Federation227 S. Adams St.Tallahassee, FL 32301(888) FL-RETAIL

©2013 All rights reserved.

For all intents and purposes, you should think of the Internet as a “location.” It might not be brick and mortar, but it is just as important to your business. For more shoppers every year, the screen of a computer or tablet is the “door” that they walk through to meet you and shop your products.

A Publication of Florida Retail Federation Services Inc. 3

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Protecting Licensees Against Claims of Negligent SecurityBy Stephen K. Talpins and Laura A. Stuzin

One party generally is not responsible for the intentional torts or criminal acts of another. However, the rule is not absolute. Pro-prietors must maintain their premises in a reasonably safe condi-tion and make “every reasonable effort” to maintain order among those who patronize their business. Thus, establishments have a duty to exercise reasonable care to protect their patrons against reasonably foreseeable criminal conduct.

This exception poses a special danger peculiar to Florida li-censees. Florida is a “comparative fault state;” courts generally apportion damages according to each party’s percentage of fault. However, in cases where one patron injures another during or af-ter a reasonably foreseeable criminal act, the owner of the prem-ises may be held legally responsible for a claimant’s damages.

General Liability for Negligence SecurityLicensees may be held liable for failing to exercise reasonable

care to protect their patrons against reasonably foreseeable crimi-nal conduct. Foreseeability may be established by proving a pro-prietor had actual or constructive knowledge of (1) a particular assailant’s inclination toward violence; or (2) the “dangerous con-dition” of the premises. A plaintiff may prove that a “dangerous condition” existed either by showing that there was a “likelihood” of disorderly conduct that might endanger the safety of patrons or that security staffing was “inadequate.”

For example, in the case of Allen v. Babrab, an intoxicated male patron assaulted a woman in a club’s parking lot after she rebuffed his advances. The establishment had a history of fighting and dis-orderly conduct by its patrons. Thus, in the past the club had em-ployed security personnel to maintain security on their premises. However, on the night of the incident, no security was present even though the club recognized that there was a likelihood of disorderly conduct by third persons. The court held that estab-lishments have a duty to protect patrons from foreseeable harms and found that the establishment was negligent and liable for the incident because it failed to address a known danger.

Minimizing Risk and ExposureLicensees can protect themselves from liability and minimize

exposure by being proactive. Some of the actions they make take include:■■ Identifying who is responsible for security in their leases■■ Drafting and implementing policies that set out the licensees

practices for: ■● Hiring and retention■● Crime reporting■● Maintenance■● Safety■● Security■● Alcohol and drugs

■■ Familiarizing managers with local crime statistics■■ Maintaining the premises

■● Ensure appropriate lighting■● Prevent overgrown landscaping that may provide criminals

with cover to hide

■● Installing walls or fences if appropriate■■ Recordkeeping ■■ Documenting and tracking incidents■■ Maintaining appropriate staff■■ Hiring security if necessary■■ Discouraging overconsumption or over-service■■ Removing customers in appropriate cases■■ Contacting the police for backup when necessary

Investigation and DefenseUnfortunately, patrons typically have between two and four

years to file their suits. During that time, memories fade, employ-ees switch jobs, and evidence disappears. Thus, it is important that licensees investigate all incidents as quickly as possible and document their findings. In cases involving significant injuries or death, licensees may want to contact counsel early on to confirm that all bases are covered.

Mr. Talpins and Ms. Stuzin are attorneys with Rumberger, Kirk & Caldwell (RKC). Both are former prosecutors with extensive ex-perience in risk management, loss prevention, investigations, and premises liability. They are members of RKC’s Retail and Hospi-tality Group, which was recognized as “Go-To Litigation Counsel for 2012” as reported by American Lawyer and Corporate Counsel magazines’ survey.

4 Small Business Quarterly

By Rose Naff, CEO of Florida Health Choices Inc.

Small Business Tax CreditsIn Florida, it has been estimated that 71.6

percent of small businesses — as many as 222,350 — qualify for the Small Business Tax Credits. Even businesses that pay no taxes can qualify. In some cases, the value of the tax credit may actually exceed the cost of providing group coverage to your employees.

If your business has already qualified for the credits during a prior tax year and you want to continue to be eligible for them, you will want to ask your insurance agent about purchasing a new plan through the Small Business Health Options Program, or SHOP. Beginning with the 2014 tax year, the maxi-mum tax credit will increase from 35 percent

to 50 percent of employer premiums paid when that coverage is purchased through the SHOP. Qualified businesses that buy cover-age elsewhere may be surprised to learn at tax time that the credit they were counting on has evaporated.

If you are a small business owner who currently has, or intends to purchase group coverage, you may be subject to specified open enrollment periods unless at least 70 percent of your employees choose to partici-pate in the group coverage. There are some exceptions when calculating the participa-tion rate and an insurance agent can help you with this. If your participation rate is likely to be less than 70 percent, and you want to

consider purchasing coverage through the SHOP, you may have to apply for coverage this fall or be forced to wait until the next small business open enrollment period. If your business can meet the 70 percent par-ticipation requirement, you will be able to apply year round and won’t have to wait for open enrollment.

In some cases, a small business with an existing group plan may want to consider ending the current plan before its regular renewal date, and apply during the small business open enrollment period in order to qualify for the tax credits.

To be eligible for Small Business Tax Cred-its, the business must have fewer than 25 full-time equivalent (FTE) employees and the average annual salary for all employees must be less than $50,000. (A FTE is one employee

working 40 hours per week or two employ-ees working 20 hours each week, etc.) The business must also contribute at least 50% of the insurance premiums for employees at the single (employee-only) coverage rate.

Small business owners, talk to your agent and/or tax advisor. Go to www.IRS.gov and www.healthcare.gov to learn more. The deci-sions or non-decisions you make by Septem-ber 30, 2013 may have positive or negative tax consequences, and your opportunity to remedy that may be a short window that oc-curs during the fall of 2013.

Is Your Business Ready For Health Care Reform?Business owners need to be fully informed and make decisions by September 30, 2013

in order to prepare for health care reform. You can prepare for this looming deadline by talking with your health insurance agent and your tax advisor now.

You can also wait until the last minute, or simply do nothing and hope that there are no financial consequences. In business – hope is a poor substitute for planning.

To determine your best course of action start by asking yourself the following questions:

1. Will my business miss out on the Small Business Tax Credit in 2014?

2. Could my business, large or small, be subject to health care penalties?

3. Are the health insurance rates I pay today likely to change and, if so, by how much?

Beginning with the 2014 tax year, the maximum tax credit will increase from 35 percent to 50 percent of employer premiums paid when that coverage is purchased through the SHOP.

Visit our website at

www.frf.org/ppaca

to download this article

and additional resources to

help you prepare for PPACA.

A Publication of Florida Retail Federation Services Inc. 5

Health Care PenaltiesBusinesses with 50 or more full time

equivalent employees could be subject to financial penalties and the penalties can be quite steep. The penalty formula is (#FTE – 30) x $2,000 when the employer does not of-fer a plan with an actuarial value of at least 60 percent of the new bronze plans that will debut in 2014.

When the business with 50 or more FTEs does offer qualifying coverage to all employ-ees working 30 hours or more per week, there can still be penalties if any employees qualify for pre-paid tax credits for individuals and enroll through the individual exchange. The employee’s personal tax returns will be used to determine whether the coverage offered by your business meets an affordability test for that employee and their family. In this case, there are two penalty options and the business would be subject to the lesser of the formula cited above (#FTE – 30) x $2,000 or # of Exchange Subsidized FTE x $3,000.

Even a small business can be subject to the financial penalties if there is common ownership or controlling interest. Again, check with your agent and tax advisor about this. I am aware of one small business owner that would have been subject to penalties for the 2014 tax year if he had not become aware that owning three small businesses can trig-ger the penalties when the combined FTEs in these firms equals 50 or more total FTEs.

Health Insurance RatesDuring the 2013 session of the Florida

Legislature, an industry group reported on health care reform’s estimated impact on health insurance rates in Florida. The esti-mated rate impact was established by actu-aries and was based on individual and small groups plans offered in Florida today.

It was reported that six provisions of health care reform will generate most of the premium increase and they are:■■ Medical cost trends■■ Guarantee issue■■ Age rating restrictions■■ Essential health benefits■■ Actuarial valuation■■ Taxes and fees

First, let’s talk about taxes and fees. No one with health care coverage is unaffected by this category. There are three primary fees and assessments with varying impact on different market segments. Some fees are ap-plied to insured plans, some apply to both insured and self-insured plans. Both public and private coverage are impacted so Medic-aid and Medicare plan rates are also affected. The taxes and fees also have varying dura-tions:■■ Comparative Effectiveness Research Fee

in effect 2011-2019■■ Health Insurance Industry Fee in effect

2014-2018 and increases thereafter■■ Reinsurance Assessment in effect 2014-

2016

As for the remaining five main contribu-tors, there are positive and negative rate im-pacts which vary and are unique to the indi-vidual but, in general, the young and healthy will incur higher premium increases than an older individual. The increases will likely be most evident in the individual insurance market, but small employers are likely to see

substantial increases as well.Ultimately, the industry report predicted

a 21-year old male with individual health care coverage can expect premiums to rise 83 percent, while a 60-year-old male with the same coverage can expect to see premi-ums increase by 59 percent. This report also pegged the estimated small group rate in-crease at 59 percent in 2014.

Again, these are just early actuarial esti-mates but the insurance industry will begin submitting new rates this summer for plans and benefits that comply with health care reform and will be effective January 1, 2014 and beyond. By September of this year, the true impact should become evident.

Rose Naff currently serves as CEO of Flor-ida Health Choices, Inc. and is building Flori-da’s first health insurance marketplace. When launched later this year, the marketplace will serve small businesses that do not qualify for government subsidies. Go to www.myflorida-choices.org to learn more.

Is Your Business Ready For Health Care Reform?

6 Small Business Quarterly

Questions & Answers ABOUT THE AFFORDABLE CARE ACT

If you have 50 or more FTEs, or you are planning to grow over that level, your health care world is about to change.

By Melissa Joiner, Florida Retail Federation Director of Government Affairs

Melissa Joiner is an experienced advocate with state agency and federal experience, and serves as FRF’s lead on health care and pharmacy issues. Contact her at melissa@frf.org or (850) 222-4082.

How will the Patient Protection and Affordable Care Act (PPACA, more commonly known as Obamacare) affect my business?

The first question to answer: How large is your business?If you run an income-generating business but you don’t have

any employees – in other words, if you are self-employed – then you are treated as an individual. You’re not considered an employ-er, even if you hire independent contractors to do some work. That means that starting January 1, 2014, you’ll need to have a health plan that qualifies as minimum essential coverage. If you don’t have this coverage, you may have to pay an annual fee of 1 percent of your income, or $95 per adult, whichever is higher. The fee will be due in 2015 when you file your 2014 federal income tax return. And you’ll still have to pay for any health care you need, such as doctor visits or medications.

If you have employees whose income you report on a W-2 at the end of the year, you will want to pay closer attention. In fact, we recommend talking to a professional adviser who is familiar with the new law.

If you have fewer than 50 full-time equiva-lent (FTE) employees, you are considered a small business. That means you are not subject to the Employer Shared Responsibility parts of the law. You will not have to pay a penalty if you don’t offer coverage to your employees. How-ever, be aware, an owner with multiple small businesses may sometimes be classified as a large business. If you run several businesses, and the aggregate number of FTEs in all the businesses is over 50, you may be subject to the Employer Shared Responsibility rules.

Starting on October 1, small businesses will have the option of purchasing insurance for their employees through the Small Business Health Options Program (SHOP). If you have more than 50 FTE employees, you won’t be able to use the SHOP, but SHOPs will be open to employers with up to 100 FTEs starting in 2016.

In addition, if you have fewer than 25 FTEs making an average of about $50,000 a year or less, you may qualify for tax credits to help you provide coverage to your employees, but only if you pro-vide that coverage through the SHOP.

If you have 50 or more FTEs, or you are planning to grow over that level, your health care world is about to change.

Like it or not, you are now a large business, and you are now likely subject to the federal Employer Shared Responsibility rules. This means a whole lot more paperwork. First, beginning in 2015, you must provide the IRS with information about your full time

See Page 9How Many FTEs Do I Have?

See Page 7All About Florida’s SHOP

A Publication of Florida Retail Federation Services Inc. 7

employees’ coverage under the health plans you offer them, and the cost of benefits provided. If you sponsor a self-insured plan, you must submit reports detailing information for each covered indi-vidual.

Here’s what Employer Shared Responsibility really means – you may have to make a payment to the federal government if at least 1 of your full-time employees buys insurance through the federal marketplace and gets lower costs on their monthly pre-miums. However, as long as the coverage you offer is affordable and meets minimum value, you won’t have to make a payment. As usual, the devil is in the details, so the federal government is still coming up with complicated definitions for what “affordable” and “minimum value” really mean.

The Treasury Department this summer announced that com-pliance with the Employer Shared Responsibility rules and re-porting requirements would be voluntary in 2014, so penalties will not be assessed until 2015.

Requirements for Employee NotificationStarting on October 1, most businesses will have to provide

employees with a notice regarding the availability of coverage on the health care exchange.

If you fall within the Fair Labor Standards Act (FLSA) regu-lations, you must provide current employees notification of your intent to provide or not provide coverage by October 1, 2013. For any employees hired after that point, you must provide notifica-tion of coverage within 14 days of an employee’s start date.

In general, FLSA applies to employers that employ one or more employees who engage in, or produce goods for, interstate or for-eign commerce or the company has an annual dollar volume of sales or receipts of more than $500,000. The FLSA also specifically covers hospitals; institutions primarily engaged in the care of the sick, the aged, mentally ill, or disabled who reside on the premises; schools for children who are mentally or physically disabled or gifted; preschools, elementary and secondary schools, and institu-tions of higher education; and federal, state and local government agencies.

The model language for the notice has been developed by the U.S. Department of Labor, and we’ve made copies available for download at www.frf.org/ppaca.

All About Florida’s Small Business Health Options Program (SHOP)

The SHOP is an online marketplace run by the federal govern-ment to allow small businesses (those with fewer than 50 FTEs) to buy health insurance for their employees. It’s intended to be an easy way to shop for the small group coverage that most small businesses rely on.

The federal government will run Florida’s SHOP Marketplace. As you might have heard, some states have created their own online SHOP marketplaces. Because Florida’s state government chose not to create a SHOP, you will be going to the federal mar-ketplace if you are looking at offering coverage.

The SHOP Marketplace opens for business on October 1, 2013 online at www.HealthCare.gov. So far, at least ten Florida health insurers have filed paperwork outlining their intention to offer coverage through the SHOP. You won’t be able to see any of the plans until October 1, however, and the coverage will take effect on January 1.

As a small business, you may or may not want to offer health insurance coverage to your employees through the SHOP Market-place. The SHOP rules say you’ll be offered four levels of coverage – Bronze, Silver, Gold and Platinum. As you’d expect, the Bronze plans will have lower premiums and higher co-pays, and the Plati-num plans will have the highest monthly premiums and lowest out-of-pocket costs.

If you are already providing coverage to your employees, you can certainly look for a different option on the marketplace. If you’re getting the Small Business Tax Credit for your coverage now, you’ll eventually need to be using a SHOP plan in order to keep getting it. If you use a licensed agent or broker, that person can continue to help you buy your SHOP health insurance cover-age.

The SHOP Marketplace opens for business on October 1, 2013 online at www.HealthCare.gov.

8 Small Business Quarterly

If you do choose to provide SHOP cover-age, your employees take on the responsibility to sign up for it online through the Market-place. Your employees decide whether they want to accept or decline coverage for them-selves and their dependents.

In practice, you will have one more chance to manage your health insurance plan. After the employee enrollment period is over, you review who accepted coverage and add up the costs to your business. After you’ve done the math, you can decide to approve the plan or explore other SHOP options.

No matter what you decide about SHOP coverage, if you have fewer than 50 FTEs, you are not subject to Employer Shared Re-sponsibility.

How Many FTEs Do I Have?A full-time employee is an employee who

works on average at least 30 hours per week. A Full-Time-Equivalent (FTE) Employee is a combination of employees who are not indi-vidually employed at least 30 hours per week,

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No matter what you decide about SHOP coverage, if you have fewer than 50 FTEs, you are not subject to Employer Shared Responsibility.

A Publication of Florida Retail Federation Services Inc. 9

but whose hours are equivalent to 30 hours a week. For example, two employees, each of whom works 15 hours per week, are the equivalent of one full-time employee.

To determine how many FTEs you have (and whether you are subject to Employer Shared Responsibility) for a given calendar year, you will need to look at the size of your workforce in the prior calendar year.

Be aware, an owner with multiple small businesses may actually be classified as a large business. Employ-ers with common owners or who are otherwise related are considered Controlled Group Employers – the em-ployees are aggregated together to determine whether

they meet the threshold number of 50 or more FTE employees.If your workforce equals or exceeds 50 FTEs for 120 days or

fewer during a calendar year solely due to seasonal workers, you get the Seasonal Worker Exception, and you won’t be subject to Employer Shared Responsibility.

You do not have to count the hours of sole proprietors, partners in a partnership, shareholders owning more than two percent of an S-corporation or owners of more than 5 percent of other busi-nesses (such as LLCs), or family members of owners.

HERE’S HOW YOU DO THE MATH:1. Count your full-time employees (individuals

working at least 30 hours a week or 130 hours a month).

2. Calculate your full-time equivalent employees (all hours worked by part-timers in a month, divided by 120).

3. Add the two numbers. If the total is greater than or equal to 50, you

are subject to Employer Shared Responsibility. You must provide qualified health care or pay a penalty.

If you pour gasoline on a fire, you’re going to get burned. The dangers are so self-evident, so well known – the phrase has become the standard metaphor used to warn against all sorts of actions that are al-most certain to end badly.

Unfortunately, despite nearly universal awareness of the dangers, the warnings are not always heeded – and the consequences can be catastrophic. A few years ago indus-trious trial lawyers found someone else to blame. What started as a trickle of cases primarily characterized by use of gas to ig-nite or accelerate fire swelled into a flood of product liability litigation involving mis-use that closed down the nation’s leading manufacturer of consumer gas containers.

Last fall The Portable Fuel Manufac-turer’s Association (PFCMA) launched legislative efforts in several states seeking reasonable limits on their liability for con-

sumer misuse. HB 103 and SB 330, backed by the Florida Retail Federation, proposed baseline expectations for product perfor-mance, which would have given the manu-facturers and sellers a fighting chance to defend themselves against claims involv-ing misuse. While the legislation did not advance this spring, a workshop hearing in the House Civil Justice Committee set the stage to move forward in 2014.

Manufacturers of portable fuel con-tainers have voluntarily embraced proven means for improving the safety and perfor-mance of their products. But the primary

cause of accidents involving gas cans is be-yond their control — namely, individuals choosing to use gasoline to start or acceler-ate a fire. PFCMA members appreciate the outstanding efforts of FRF to help restore the viability of an industry threatened with collapse under the weight of liability litiga-tion involving product misuse.

Fuel container companies fight product misuse

What started as a trickle of cases primarily characterized by use of gas to ignite or accelerate fire swelled into a flood of product liability litigation involving misuse that closed down the nation’s leading manufacturer of consumer gas containers.

10 Small Business Quarterly

Shipping can be one of the most complicated – and costly – activities for any small business. Poor or no planning can result in overpaying, as well as losing sales if the business can’t provide consistent and cost-effective delivery to its customers.

Do you negotiate competitive discounts with your shipping pro-viders? Do your purchase invoices include shipping and handling charges? If you answered “yes” to either of these questions, then you could very well be overpaying for your shipping. Here are four ideas for you to consider to reduce your overall shipping costs:

#1 Obtain Discounts with CarriersMost carriers – whether express, parcel or freight – provide

discounts to businesses that routinely ship or receive merchan-dise.  The old adage “everything is negotiable” is an immutable fact when it comes to shipping fees. The challenge, however, for small businesses is how to go about obtaining the same, steep dis-counts that are normally reserved for large businesses and heavy freight shippers.

One tactic a small business should consider is joining an in-dustry trade association. Often times, industry trade associations are able to aggregate the buying clout of its members to negotiate and provide better shipping rates to all the businesses that par-ticipate in the program. PartnerShip®, the company that manages the FRF Shipping Program, is an example of a third party logistics provider that specializes in working with industry trade associa-tions across the country to create discounted shipping programs for participating members.

Another approach a small business can take is to work directly with a third-party logistics provider (3PL), or even directly with your carriers, to see if you can get better discounts then you pres-ently have today. Often times if you simply “ask for better pricing” you will get it because 3PLs and carriers are always looking to re-tain and grow their business. Be prepared to share example ship-ping invoices or manifests with your 3PL or carrier to help them best assess your shipping patterns and provide you with the best pricing. PartnerShip provides FRF members with a free shipping analysis service to help them through this process.

#2 Develop an Inbound Shipping Management Program

One of the simplest and easiest ways to immediately cut your inbound freight costs is to change your shipping terms from “pre-paid and add” to “inbound collect.” Having your vendor or sup-plier ship collect on your recommended carrier eliminates any handling charges, thus saving you money.

When you gain more control over your inbound shipping, you can save on small package and freight shipments coming into your business every day. As the buyer and receiver of the goods, you can-and should-designate the carrier and arrange for ship-ping charges to be billed directly to you at your discounted rate. This is called routing shipments inbound “Collect.”

In general, there are many benefits to having your inbound shipments routed collect. As the example below shows, it often

saves a lot of money. But even if you don’t have shipping dis-counts that are better than your vendor, their handling mark-up could still make the overall shipping costs higher than your own.

Inbound shipping programs are often best managed through a third-party logistics provider. A good 3PL can help you develop routing instructions for your vendors, monitor compliance, and audit invoicing to ensure you’re saving the most on your inbound shipping.

#3 Use the Correct Mode & Service Level       A common dilemma for small businesses is deciding the ap-

propriate shipping mode to use for their important shipments. Shipping mode choices include LTL freight, small package, ground, air, ocean, rail, intermodal, and others. When deciding whether to use a small package or LTL freight carrier, for exam-ple, shippers must take into consideration the weight and charac-teristics of the shipment, the shipment destination (e.g., business, residence, etc.), service needs, pricing and fees, and loss or dam-age concerns.

#4 Consolidate Orders When PossibleAs a general rule of thumb, one big order ships for less than

three smaller orders. That means small businesses should consid-er consolidating multiple orders into a single shipment whenever possible, and always striving to minimize the number of pack-ages it sends. All too often, shipments are arranged as they come in from sales or order processing. However, a little planning and visibility goes along ways towards shipping savings as the table below shows.

Consolidating orders provides additional benefits to both shippers and receivers of small package and freight shipments, including:■■ Reduced shipping supply expenses■■ Greater fuel efficiency (better on the environment)■■ Less time needed to receive, handle, and restock orders

One strategy for shipment consolidation is to create a simple shipping guide that takes into consideration all of your business rules for carriers, weight breaks, orders, and shipping contacts. Distribute this guide to your vendors and discuss it with your customers. A little communication can often go a long way to-wards small business savings.

In SummaryShipping is an important cost factor for any small business that

ships or receives materials or merchandise. It is often possible to reduce these costs with a little planning and effort. Utilizing some or all of these four tips to control shipping costs can eliminate the strain shipping expenses put on your business. With the FRF Shipping Program, managed by PartnerShip, FRF members like you save on every shipment you send or receive through the pro-gram. This program is designed to help businesses put these four tips into action and positively impact your bottom line.

Four Ways to Reduce Shipping Costs

A Publication of Florida Retail Federation Services Inc. 11

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owners establish their own return-to-work programs; ■■ Safety education, drug-free workplace assistance, and

training materials; ■■ Plus, RetailFirst is now rated B++ (Good). According

to A.M. Best, the rating “refl ects RetailFirst’s strong capitalization, solid operating profi tability measures and management’s disciplined operating philosophy.”

Day-to-day operations are handled by Summit’s home offi ce in Lakeland - not by an out-of-state ser-vice center. RetailFirst is marketed exclusively through Florida’s premiere independent insurance agents so re-tailers can continue to do business with their hometown friends.

For more information, contact the Florida Retail Fed-eration at 1.888.FL.RETAIL (357.3824).

“Backed by outstanding service and administration by Summit, money-saving benefi ts realized through member-ship in the Florida Retail Federation, and support from independent insurance agents throughout the state, for whom we are forever grateful, RetailFirst remains a solid, smart option for businesses’ workers’ compensation insur-

ance needs. The RetailFirst board of directors is pleased to continue its longstanding relationship with FRF as it moves to the next level of excel-lence.”

— W. “Bill” Kundrat Jr., CAERetailFirst Chairman of the Board of Directors, Sun City Center

RetailFirst: Creating Winning Workers’ Comp Partnerships Since 1979

“Great service and products, all available through working with my own local insurance agent, make RetailFirst a sound solution for our workers’ comp needs,” says Lance Hart (right), president of Hart Lawn Care, Tallahassee, pictured with his agent, Tommy Fol-som. Th e commercial and residential lawn and landscaping com-pany was founded in 2001 and has been a member of FRF since 2006.

“RetailFirst off ers my clients hands-on customer service, ex-perienced claims and loss control management, a complement of products, such as the safety dividend program and retro plans, plus opportunities for additional savings through the Florida Re-tail Federation,” says Tommy Folsom, owner of Florida Insurance Consultants, a division of LRA Insurance, who has carried the products for 25 years. “It’s a proven, positive business partnership all around.”

12 Small Business Quarterly

We’re happy to introduce you to Shanon Materio, president and owner of McMow Art Glass in Lake Worth, the 2013 Florida Retailer of the Year.

With $200 and a dream, Materio and her husband, Phil, found-ed McMow Art glass in 1976. Over the years, the family-owned-and-operated business has grown from a 700-square-foot garage to occupy 10,000 square feet of studio, retail, and manufacturing space on Dixie Highway. Fueled by a passion for what they do, Materio and her team have earned respect in their community and throughout the art glass world.

“We don’t see dollar signs when a person walks through the door,” said Materio. “We see a person who is going to ask ques-tions and need help with something. Our customers have really responded to this level of care and attention.”

Both Materio and her husband have served on numerous boards, including the Lake Worth Community Redevelopment Agency, the West Palm Beach South End Neighborhood Asso-ciation, and West Palm Beach Arts in Public Places. McMow Art Glass and its employees support a wide variety of charitable orga-

nizations, with ongoing commitments to Adopt-a-Family for each holiday, and to the Quantum House for families whose children are receiving treatment in Palm Beach County for serious medical conditions.

The company is well-known for creating custom art glass for places of worship, as well as individuals. Among the clientele was the late Italian designer Gianni Versace, with whom Mate-rio worked closely to create art glass installations for his famous South Beach mansion.

Materio was nominated by her daughter, Taylor, who works at McMow along with her brother, P.J. Through social media and various unique marketing strategies, Materio credits Tay-lor with introducing McMow and the glass arts to a new gen-eration and “taking us to the next level.”

The Florida Retailer of the Year Award, presented by FRF since 1999, honors retailers who blend sound business practices with commitments to their com-munities, customers and em-ployees. The award is open to both members and non-mem-bers of the non-profit trade asso-ciation. A selection panel made up of small business owners and other retail experts ranks nominees based on their scores in several categories measuring community service and business acumen.

Lake Worth Retailer Shanon Materio is Named the 2013 Florida Retailer of the Year

“We don’t see dollar signs when a person walks through the door,” said Materio. “We see a person who is going to ask questions and need help with something. Our customers have really responded to this level of care and attention.”

Shanon Materio and her daughter, Taylor

A Publication of Florida Retail Federation Services Inc. 13

Lake Worth Retailer Shanon Materio is Named the 2013 Florida Retailer of the Year

™

Industry Leading Manufacturer and Recycler of Plastic Bag and Film ProductsHartsville, SC • www.HilexPoly.com

Know Your Plastic Bags

ReusableOur plastic bags can have a second life as trash can liners, storage bags or on return shopping trips.

RecyclableHilex operates the world’s largest plastic bag recycling plant where our Bag-2-Bag program turns used plastic bags into brand new ones.

Recycled ContentOur bags typically contain 15% recycled plastic and our gray �lm bags contain at least 35% recycled plastic.

Convenient Hilex bags are light, easy to transport and easy to use. Enjoy their convenience and handle all types of packaging responsibly.

2013 Florida Outstanding Retail LeadersThe following retailers placed in the top tier of judging for the Florida Retailer of the Year Award, and have been recognized as the 2013

Florida Outstanding Retail Leaders by FRF.

Sam Benzacar, Electric Avenue, Inc., Downtown Miami, www.electricavenue.net

Sam Benzacar had a vision of creating a new breed of re-tail, and that’s exactly what he did when he opened Electric Avenue in 2010. Benzacar, the company’s president, ensures Electric Avenue maintains an extensive online presence to draw customers to the Down-town Miami store for a great shopping experience, along with entertainment, education, and social interaction.

Caroline Caudill, The Chandlery, Melbourne, www.thechandlery.com

Caroline Caudill founded The Chandlery 18 years ago. Her specialty candle store fo-cuses on home décor using quality products, small furni-ture, and unique items for cre-ating a fully decorated home. This is Caudill’s second consec-utive year being recognized as an Outstanding Retail Leader.

Marcus and M.J. Price, Goin’ Postal Franchise Corporation, Zephyrhills, www.goinpostal.com

Marcus and M.J. Price opened the first Goin’ Postal store in downtown Zephyrhills in 2002. Through hard work and a commitment to great service, the enterprising couple rapidly turned Goin’ Postal into a leading national shipping store. While the Prices still op-erate the Zephyrhills location, the couple has independently franchised more than 250 loca-tions across the country.

Sara Zamikoff, emporium boutique, Coral Gables, www.shopemporiummiami.com

Sara Zamikoff founded em-porium, a women’s clothing and accessories boutique in the heart of Coral Gables, six years ago. Known for its expert se-lections that include on-trend, classic, and locally sourced fashions, Zamikoff has grown the business into an award-winning enterprise.

14 Small Business Quarterly

OrdinanceWatch™ is your advance notice

local government information service.

Subscribers receive customized email

advisories and have full time access to our

extensive, searchable archive including

thousands of local government issues.

Email subscriptions are free for all FRF

members. Visit www.OrdinanceWatch.com

to register. For more information contact

Juliet Fogarty at Juliet@ordinancewatch.com

or 1.888.FL.RETAIL (357.3824).

Local governments in Florida will vote on thousands of ordinances this year.

Do you know which ones will affect your business?

A Publication of Florida Retail Federation Services Inc. 15

During the 2013 Legislative Session, the Legislature passed a bill that restricts the circumstances under which an individual’s driver license may be swiped by a private entity.

It has now been signed into law, and it may significantly impact how you do busi-ness. Here’s a brief summary:

Chapter 322.143, Florida Statutes, says a private entity cannot swipe an individual’s

driver license unless it falls under one of the specific listed excep-tions. A “private entity” includes any nongovernmental entity, such as a corporation, partnership, company, nonprofit organiza-tion, or any other legal entity or natural person.

Here are the situations under which you CAN swipe a custom-er’s license:

Situation 1: To verify that the driver license is authenticSituation 2: To verify the identity of the individual if the indi-

vidual pays for a good or service with a method other than cash, returns an item, or requests a refund

Situation 3: To verify the individual’s age when providing an age restricted good or service

If you swipe the license in Situations 1, 2 or 3, you cannot store, sell, or share the personal information collected from the driver li-cense.

Situation 4: To prevent fraud or other criminal activity if an individual returns an item or requests a refund AND the private entity uses a fraud prevention service company or system

Situation 5: To transmit information to a check services compa-ny for the purpose of approving negotiable instruments, electronic funds transfers, or similar methods of payment

Under Situations 4 and 5, a private entity may swipe the driver license as well as store and share the personal information collected from the license. But, this can only be done if the private entity is storing and sharing the information with a fraud prevention service or check services company. The law only allows a fraud prevention service or check services company to use the information collected from the driver license to prevent fraud or criminal activity against the private entity that sent the information to them. The collection and compilation of the driver license information to prevent fraud or criminal activity against anyone else would not be lawful.

Situation 6: To comply with a legal requirement to record, re-tain, or transmit the driver license information.

If there is a law that requires you to swipe, store or share a cus-tomer’s driver license information, you are absolutely permitted to do so. However, you will want to be sure that you are complying strictly with that law.

Does this mean you can’t swipe a customer’s driver license for any other reason that’s not stated above? No, it doesn’t. You can swipe the customer’s license in other situations, but ONLY if you get the customer’s explicit permission AND share with the cus-tomer what information is collected and the purpose for which the information will be used. If the customer does not consent to swiping the license, you have the option of keying in the driver license information manually.

The law states you cannot deny the customer the good or ser-vice if the customer requests to have the driver license informa-tion collected manually. However, the law does not state that you cannot deny the customer the good or service if the customer re-fuses to provide the driver license information at all.

If you do not comply with this law, you may be subject to a civil penalty not to exceed $5,000 per occurrence. The original draft of the bill included a private cause of action that would have created additional liability for businesses, but we were successful in get-ting that provision removed.

This new law was not one we supported during the Legislative Session because we have concerns about the unintended conse-quences for businesses. Please review this law and evaluate how it impacts you. Please share with us if this law negatively impacts you and your business. There may be an opportunity in future leg-islative sessions to refine this language so that it does not harm your business operations.

Samantha Hunter Padgett serves as FRF’s chief attorney, and specializes in areas including labor and employment law, business and professional regulation, and environmental law and regulation. Contact her at Samantha@frf.org or (850) 222-4082.

ID VerificationAre you breaking the law when you check a customer’s driver license? A new Florida law might force you to change your practices.By Samantha Hunter Padgett

If you do not comply with this law, you may be subject to a civil penalty not to exceed $5,000 per occurrence.

227 SOUTH ADAMS STREETTALLAHASSEE, FL 32301-1720

PRE-SORTEDSTANDARDUS POSTAGEPAIDJACKSONVILLE, FL32204PERMIT #4390

FRF Membership Helps You Cut Costs, Grow Revenue And Increase Your Bottom Line.

Workers’ Compensation with RetailFirst – Includes access to Summit’s comprehensive workplace safety program tailored to your business needs, plus our members-only safety dividend.

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Shipping Discounts with PartnerShip – Save on shipping with discounts from the major carriers. Enrollment is free and members savings average $249 per year.

Payroll Processing with FRF Payroll Advantage – Easy and aff ordable services that save 30-60% compared to other programs. Simple to implement, manage and use.

Local Government Monitoring with OrdinanceWatch – Our free email advisory program alerts you when your local municipality or county is seeking to pass legislation that could negatively aff ect your business.

ServicesMember

In Miami-Dade, Broward and Palm Beach countiesContact Josie Legido-Correa (305) 632-1014 josie@frf.org

In Hillsborough, Pinellas and Polk counties Contact Crystal Laake (727) 430-3604 crystal@frf.org

Statewide Contact Jon Stolp (850) 251-7928 jons@frf.org