11/22/2016:
Judge Suspends Rule Expanding Overtime for Millions of Workers
A federal judge issued a nationwide injunction against an Obama administration rule which would expand the number of workers who would be eligible for time-and-a-half overtime pay by millions of people. The regulation was scheduled to take effect on Dec. 1.  It would raise the salary limit below which workers automatically qualified for overtime pay from $23,660 to $47,476. The judge ruled that the Obama administration had exceeded its authority by raising the overtime salary limit so significantly.  The ruling was hailed by business groups who argued the new rules would be costly and result in fewer hours for workers. The Labor Department said it “strongly disagreed” with the decision and was “considering all legal options,” raising the possibility of an appeal in the waning days of the Obama administration. Ross Eisenbrey of the Economic Policy Institute, whose writings on the subject helped shape the administration’s regulation, called the ruling “a disappointment to millions of workers who are forced to work long hours with no extra compensation.” While the injunction is only a temporary measure that suspends the regulation until the judge can issue a ruling on the merits, many said the judge’s language indicated he was likely to strike down the regulation.
 
11/18/2016:
Retail Associations Demand That Visa Fix Flawed EMV Rollout
New guidance from the Federal Reserve suggests that parts of Visa’s implementation of chip card technology may be illegal. A coalition of retailers has called on the card processor to fix issues with EMV’s controversial rollout. With new guidance from the Federal Reserve working in their favor, retail associations want answers regarding the migration to EMV chip card payment technology that their members have been working to comply with for more than a year. Earlier this month, the Fed added to its website new comments specific to the EMV transition. In a related FAQ, the agency notes that payment-card networks don’t comply with the Electronic Fund Transfer Act if the new payment terminals installed in retail stores require that payments are routed through a specific payment processor. “A payment card network inhibits a merchant’s ability to route electronic debit card transactions if it, by network rules, standards, specifications, contractual agreements, or otherwise, requires the merchant to allow the cardholder to make the choice of EMV chip application on a debit card, where one application routes only to a single network,” the Federal Reserve stated. This week, the Retail Industry Leaders Association, the Food Marketing Institute, the National Retail Federation, and multiple other retail groups sent a letter to Visa CEO Charles W. Scharf and CEO- designate Al Kelly, asking for information on how the company will respond to the Fed’s ruling.
 
11/22/2016:
Visa Responds to FTC Investigation with Rule Change
Visa has agreed to change its rules and requirements for payment system stakeholders regarding the rollout of EMV smart chip technology in the US. The move comes after careful scrutiny from the Federal Trade Commission (FTC) and Federal Reserve Board of Governors under which it became apparent that Visa was violating current law that requires competition for debit network routing services. To avoid further immediate enforcement action, Visa agreed to amend its Core Selection of Payment System Rule 1.5.4.6 to clarify it does not apply to US debit transactions, and modify its Transaction Acceptance Device Guide, and its Acquirer Implementation Guide. The Federal Trade Commission announced on Nov. 22 that it would halt the investigation due to these changes, while reserving its rights to revisit this violation in the future. “RILA applauds the FTC and Federal Reserve for moving to quickly address this latest attempt by Visa to prevent competition in the payments market. Fish instinctively swim, the sun always rises in the East, and without watchful regulators Visa will always use its market power to act in anticompetitive ways,” said Austen Jensen, vice president of government relations at the Retail Industry Leaders Association. “This highlights the importance of Regulation II for keeping bad actors in check, and is a huge win for ensuring debit network competition and innovation for existing and emerging payments,” said Liz Garner, vice president at the Merchant Advisory Group. “MAG is very pleased with the diligence of the Federal Trade Commission and Federal Reserve Board’s investigation of Visa’s violations of Regulation II, and look forward to working with both agencies to ensure a smooth transition as merchants and acquirers go through the process of altering EMV deployments in light of the recent rule changes.”