BIG BOXES, SMALL PAYCHECKS

How the Retail Lobby Blocks Increases in the Minimum Wage

MINNESOTANS FOR A FAIR ECONOMY MARCH 2014

INTRODUCTION
The National Retail Federation and Retail Industry Leaders Association spent almost $10 million on DC lobbyists in 2012.
There are more than 15 million workers in retail stores in the U.S.,1 so it is not surprising that the industry spends a lot of money to keep wages down. The National Retail Federation (NRF) and the Retail Industry Leaders Association (RILA) have been waging fierce lobbying campaigns to prevent increases in the minimum wage. These two associations spent almost $10 million on DC lobbyists in 2012 alone.2 These associations are also extremely powerful at the stat e level, working in conjunction with local lobbying groups to deceive the public about the impact of raising the minimum wage. The retail trade associations portray their members as small mom and pop businesses because this plays well politically and gives politicians cover. In reality, some of the biggest corporations in the country are the most influential members of the associations. For instance, the Minnesota Retailers Association includes over 200 companies, but Target is by far the largest source of funds. Target executives have made two-thirds of all contributions to the Associations PAC since 2000. 3 Brands like Target and Walmart spend millions on advertising to make their brands household names, but when it comes to things like keeping workers in poverty, they prefer to hide behind their lobby associations. Both Target and Walmart say they have not taken a position on increasing the minimum wage,4 but their political contributions and leadership in industry trade associations make it clear that the two largest retailers oppose raising the minimum wage. The recent strikes at Walmart and by janitors who clean Target and other big box stores have pierced the veil of these two associations and exposed the poverty wages the retail industry pays its workers. The average hourly wage of a Wal-Mart sales associate is just $8.86 and for a cashier its $8.51. The average pay for cashiers at Target is $8.10/hour, while the pay for sales floor team members is only slightly higher -- $8.34/hour.5 A full-time worker at these wages earns less than $18,500 well below the poverty line and not nearly enough to provide food, housing, health care, transportation and other basic needs for their families.6 However, over half of the workers in these positions at Target and Wal-Mart dont even earn this much because they are involuntarily part-time. 7 The situation is not much different at other retail stores. According to the Bureau of Labor Statistics, the typical retail sales person earns just $10.29 per hour.8 Cashiers earn even less an average hourly wage of $9.12.9

A full-time worker at these wages earns less than $18,500 well below the poverty line and not nearly enough to provide basic needs for their families.

BIG BOXES, SMALL PAYCHECKS: How the Retail Lobby Blocks Increases in the Minimum Wage

Target and Walmart CEOs each received $20 million in compensation about $10,000/ hour or 1,300 times the minimum wage.

Benefits are also scarce for retail department store workers who say that the health plans are too expensive or inaccessible. Only about half of Walmart associates are covered by the companys health plan, 10 while only about a third of Target store team members participate in Targets plan.11 Opponents of raising the minimum wage claim that low wage jobs are mostly for teenagers, yet more than 95 percent of year round employees at large retail companies are ages 20 and above and more than half (54.2%) contribute at least 50 percent of their familys total income. A large number of them almost 1 in 5 are the sole earner for their family.12 Bruce Nustad, the president of the Minnesota Retailers Association, said last year that raising the minimum wage higher than the federal amount would force businesses to make difficult choices such as setting aside plans for expansion or capital investments or cutting workers hours. Theres this fantasy perception that theres this incredible amount of [profit] margin in retail, Nustad said. I dont know where that came from.13 The perception could have come from the fact that the two largest retailers in Minnesota and in the U.S., Walmart and Target, both posted record profits in 2012 of $17 billion and $3 billion respectively,14 and the CEOs of both companies received over $20 million in compensation in 201215 about $10,000 an hour or 1,300 times more than the minimum wage. The NRF touts retail as a force for strong economic expansion, job creation, and business growth.16 However, the combination of poverty wages and no benefits, often coupled with part-time hours, means that many of the families of retail workers must rely on taxpayer-funded safety net programs. We estimate that over 20,000 Big Box department store employees in Minnesota are enrolled in a public assistance program for themselves or family members, at a cost of over $150 million a year to taxpayers. Included in this total is $45 million a year that taxpayers pay to help almost 6,000 Target store employees in Minnesota who must rely on public assistance and $41 million a year to help 5,300 Walmart employees in Minnesota. In state after state, Walmart, Target, and other Big Box retailers are among the employers with the most employees receiving public assistance. This shifting of labor costs on to the taxpayers amounts to a public subsidy for Big Box corporate giants and provides an unfair financial advantage over others. Raising wages for Big Box retail workers would benefit individual workers, their families and community, and taxpayers. The more that Target and Walmart pay their workers, the less it will cost taxpayers to provide public assistance.

Over 20,000 Big Box employees in Minnesota are enrolled in a public assistance program for themselves or their families.

BIG BOXES, SMALL PAYCHECKS: How the Retail Lobby Blocks Increases in the Minimum Wage

OPPOSITION TO RAISING THE MINIMUM WAGE

Both

Target and Walmart say they have not taken a position on increasing the minimum wage, yet their political contributions and leadership in industry trade associations make it clear that the two largest retailers oppose raising the minimum wage at the federal or state level. Minnesota Retailers Association

The Minnesota Retailers Association is a trade group representing over 200 member businesses with more than 1,500 retail stores in the state. Target executives have made 65% of all contributions to the PAC since 200017 -- making Target by far the largest contributor. The Association opposes raising the state minimum wage above the federal amount. It opposes indexing and fought last session against both the bill that passed the House to raise the minimum wage to $9.50 and the version that passed the Senate to raise it to $7.75. The Associations board is made up of lobbyists from a number of other Big Box retail stores, such as Walmart, Home Depot, Sears, JC Penney and Macys, in addition to Target. The Best Buy lobbyist chairs the groups legislative committee. The Associations 2014 Day at the Capitol will focus on lobbying against indexing future minimum wage increases to inflation. The lobby days main sponsors are Big Box corporations whose CEOS are not only among the highest paid in Minnesota, but they also received large increases in their compensation from 2009 2012.
Corporation Best Buy18 Walgreens19 Target20 CEO Brian Dunn Gregory Wasson Gregg Steinhafel 2009 2012 Compensation Compensation $2.4 million $8.2 million $6 million $16.1 million $12 million $23.5 million Percentage Increase 245% 100% 46%

The MN Retailers Association fought against both the House bill to raise the wage to $9.50 and the Senate version to raise it to $7.75. Target execs have

made two-thirds of all contributions to the MN Retailers Association PAC since 2000.

Target executives gave over $115,000 since 2003 to the Retailers Association and other state business PACs21 that in turn spent over $525,000 in contributions and independent expenditures to support state legislators who voted against raising the minimum wage.

BIG BOXES, SMALL PAYCHECKS: How the Retail Lobby Blocks Increases in the Minimum Wage

Political Contributions In March 2013, the U.S. House of Representatives rejected a bill to raise the federal minimum wage from $7.25 per hour to $10.10 by 2015. Rep. John Kline (R-MN) led the opposition to the bill, saying We need jobs out there. The best approach right now is to get federal spending under control and government out of the way of the nations job creators.22 o Klines largest single source of campaign funds has been from Target executives, their family members, and the companys political action committee (PAC). Since 2005, they have given Kline $125,000 in contributions, more than to any other current member of congress. 23 Walmart has contributed over $30,000 to eight US Representatives since 2008. Six of them voted against the minimum wage increase last year.24 Retail Industry Leaders Association The Retail Industry Leaders Association (RILA) is a leading public policy advocate for retail corporations. Its members represent more than $1.5 trillion in sales and operate more than 100,000 stores, manufacturing facilities, and distribution centers in the world. RILA opposes any increase in the minimum wage and does not believe that states and localities should impose a patchwork of employment regulations on employers.25 Target CEO Gregg Steinhafel served as the 2013 chair of the national Retail Industry Leaders Association (RILA). In addition to Steinhafel, RILAs board is comprised of the CEOs from other big box retail companies including Walmart, Best Buy, Lowes, Home Depot, Sears, and Kmart. Since 2010, RILA has contributed almost two and a half times more to the U.S. Representatives who voted against raising the minimum wage in 2013 than to the ones who voted for it.26 Minnesota Forward In 2010 Target gave $150,000, the largest single contribution, to the Minnesota Forward PAC which was created to elect Tom Emmer governor. After coming under fire because of Emmers anti-gay positions, Target explained that it had made the contribution because it supported Emmers plans for economic growth and job creation and that Emmer would create a positive environment for businesses. One of Emmers main proposed economic policies was to lower the minimum wage for waiters and waitresses.27
BIG BOXES, SMALL PAYCHECKS: How the Retail Lobby Blocks Increases in the Minimum Wage 6

Target has been the single largest source of campaign funds to Rep. John Kline, who led the opposition against raising the federal minimum wage last year.

The Retail Industry Leaders Association gave 2 times more to Representatives who voted against raising the minimum wage compared to the ones who voted in favor of it.

TAXPAYER SUBSIDIES OF POVERTY WAGES IN MN

Low wages not only harm workers and their families they cost taxpayers.
When Big Box retail employees are unable to afford the basic necessities of life, taxpayers pick up the tab for the public benefit programs that workers need in order to get by. Based on the utilization rates by working families of Medicaid, Food Stamps, the Earned Income Tax Credit and Temporary Assistance for Needy Families, we estimate that over 20,000 Big Box department store employees in Minnesota are enrolled in one of these four public assistance programs for themselves or family members, at a cost of over $150 million a year to taxpayers. 28 Included in this total is $45 million a year from taxpayers to help almost 6,000 Target employees in Minnesota who must rely on public assistance and $41 million a year to help 5,300 Walmart employees in Minnesota.

Big Box Employees on Public Assistance in Minnesota29

We estimate that over 20,000 Big Box retail store workers in Minnesota are enrolled in some form of public assistance program either for themselves or for family members, at a cost of $150 million a year to taxpayers.

BIG BOXES, SMALL PAYCHECKS: How the Retail Lobby Blocks Increases in the Minimum Wage

SUBSIDIZED HEALTH CARE

The low wages, combined with involuntary parttime hours and no benefits, mean that the families of many Big Box retail workers must rely on taxpayer-funded safety net programs to make ends meet.

In state after state, Walmart, Target, and other Big Box retailers are among the employers with the most employees receiving public assistance.

MASSACHUSETTS
In 2010, over 4,300 Walmart employees in Massachusetts, a quarter of the companys total workforce in the state, used subsidized health care for themselves or family members, costing taxpayers $14.6 million. Over 2,600 Target employees,30 more than a third of the companys Massachusetts workforce, used subsidized care, costing the state $8.3 million. 31 Big Box retail chains made up ten of the thirty companies with the most employees on Medicaid in Massachusetts.

RANK BY TOTAL COST 1 4 8 14 16 19 20 24 25 EMPLOYER WAL-MART TARGET HOME DEPOT MACYS TJ MAXX KOHLS MARSHALLS LOWES SEARS/ KMART

#
EMPLOYEES USING SUBSIDIZED CARE 4,327 2,610 1,929 1,723 1,027 969 900 826 1,052

$
COST FOR EMPLOYEES & COVERED DEPENDENTS $14,602,933 $8,325,571 $5,678.420 $4,059,919 $3,280,228 $2,743,794 $2,648,489 $2,211,397 $2,124,144
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BIG BOXES, SMALL PAYCHECKS: How the Retail Lobby Blocks Increases in the Minimum Wage

NEW JERSEY
In New Jersey, Walmart and Target are the top two employers with the most employees enrolled in the states Medicaid program, followed by many of the same Big Box retail stores as on the above Massachusetts list.

RANK BY TOTAL COST 1 2 3 5 6 12 14 18 23 28

#
EMPLOYER WAL-MART TARGET LORD&TAYLOR TOYS R US KMART KOHLS HOME DEPOT SEARS JC PENNEY MARSHALLS EMPLOYEES ENROLLED 2,306 1,199 1,008 771 746 565 487 456 373 328

#
SPOUSE/ TOTAL DEPENDENTS ENROLLED ENROLLED 4,993 7,299 2,379 3,578 1,945 2,953 1,513 2,284 1,646 2,392 1,120 1,685 1,188 1,675 854 1,326 733 1,106 580 908

Retail Employers in New Jersey with Most Employees Receiving Subsidized Care32

WISCONSIN
In Wisconsin, over 3,200 Walmart employees are enrolled in Badger Care, the states Medicaid program, accounting for a total of 9,200 enrollees including the children and adult dependents of these employees. Six other Big Box retail stores were also among the employers with the most employees receiving subsidized care. 33

#
RANK 1 4 11 15 27 34 46 EMPLOYER WAL-MART MENARDS TARGET KOHLS KMART HOME DEPOT SEARS EMPLOYEES ENROLLED 3,216 784 562 508 278 242 217

#
TOTAL ENROLLED INCLUDING ADULT DEPENDENTS & CHILDREN 9,207 2,245 1,592 1,340 772 663 580

Retail Employers in Wisconsin with Most Employees Receiving Subsidized Care33 BIG BOXES, SMALL PAYCHECKS: How the Retail Lobby Blocks Increases in the Minimum Wage 9

OTHER PUBLIC ASSISTANCE In Ohio, almost 15,000 Walmart employees receive food stamps.

Most state reporting has only included data on Medicaid and not other public
assistance programs. In addition, the data has only reflected the actual enrollment in the Medicaid programs. The number of Big Box employees and dependents who are eligible to participate is likely much higher. It is clear that Walmart, Target, and other Big Box retail store employees must also rely on additional public benefits. For instance, in Florida, over 9,000 Walmart employees receive food stamps.34 In California, a study found that the average Walmart worker required $730 in taxpayer-subsidized healthcare and $1,222 in other types of public assistance, such as food stamps and subsidized housing per year to get by.35

OHIO
Data from the state Department of Jobs and Family Services shows that Walmart had more employees or household members on food stamps (14,684) or Medicaid (14,056) than any other company in the state. Target was 11th for most employees or family members on Medicaid (2,479) and food stamps (2,383).36 The number of Walmart employees or household members in Ohio on public assistance almost doubled from the previous five years, and it was not related to an overall increase in employees. There was a 74 percent increase in the number of Walmart employees receiving food stamps and a 95 percent increase in the number enrolled in Medicaid, while Walmarts total employment in the state declined by 10 percent during this period.37

#
RANK 1 14 16 21 33 29 27 28 40 EMPLOYER WAL-MART TARGET LOWES SEARS JC PENNEY K-MART KOHLS HOME DEPOT MACYS EMPLOYEES & FAMILY MEMBERS ENROLLED 17,679 2,602 2,470 2,155 1,631 1,686 1,876 1,874 1,481 RANK 1 13 17 20 26 27 29 39 40 EMPLOYER WAL-MART TARGET SEARS LOWES KMART HOME DEPOT KOHLS JC PENNEY MACYS

#
EMPLOYEES & FAMILY MEMBERS ENROLLED 14,684 2,201 1,860 1,787 1,546 1,546 1,494 1,256 1,217

Ohio Medicaid Enrollment - January 2012

Ohio Food Stamps Enrollment - January 2012

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BIG BOXES, SMALL PAYCHECKS: How the Retail Lobby Blocks Increases in the Minimum Wage

OTHER PUBLIC ASSISTANCE

WISCONSIN
In a report earlier this year, the U.S. House Committee on Education and the Workforce estimated that a single 300 employee Walmart Supercenter store in Wisconsin costs taxpayers between $900,000 and $1.7 million per year or $3,000 to $5,800 per employee.38 The lower estimate assumes that only those workers enrolled in Badger Care also enroll in other taxpayer-funded programs. The upper estimate assumes that an additional quarter of a stores employees enroll in other taxpayerfunded programs.

PUBLIC ASSISTANCE PROGRAM

LOW-END ESTIMATE

UPPER-END ESTIMATE

When Big Box retail employees are unable to afford the basic necessities of life taxpayers pick up the tab for the public benefit programs that workers need in order to get by.

Free & reduced price lunches

(under the National School Lunch Program)

$25,461 $12,938 $155,406 $72,160 $251,706 $11,414 $96,007 $279,450

$58,228 $29,588 $355,350 $165,000 $251,706 $26,100 $219,528 $639,090

Free & reduced-price breakfasts (under the School Breakfast Program) Subsidized housing assistance
(Section 8)

Earned Income Tax Credit Medicaid Enrollment under Badger Care Low Income Home Energy Assistance Program (LIHEAP) Supplemental Nutrition Assistance Program
(formerly Food Stamp program)

Wisconsin Shares Child Care Subsidy

TOTAL

$904,542 $1,744,590

BIG BOXES, SMALL PAYCHECKS: How the Retail Lobby Blocks Increases in the Minimum Wage

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INVOLUNTARY PART-TIME WORK

Widespread practices of involuntary part-time work and unstable scheduling

Widespread practices of involuntary part-time work and unstable scheduling by Big Box stores push retail workers incomes even lower.
by Big Box department stores push the incomes of retail workers even lower. Nationally the number of involuntary part-time retail workers (those who would rather have full-time hours) has increased 144 percent from 644,000 in 2006 to 1.5 million in 2010.39 The retail industry has embraced just-in-time computerized scheduling systems, which are designed to cut costs by matching staff size to customer traffic hour by hour. This gives managers increased flexibility, but for workers it means unpredictable schedules that vary from week to week and even day to day. Retail workers are expected to keep their schedules open in case they may be needed and to call in on the days theyre scheduled to see if they should come to work that day.40 These scheduling systems allow Big Box stores to manage a large part-time labor force working short shifts that can easily be changed.41 According to data that Walmart reported to the Partnership for a Healthy America, more than half of the employees hired to work in new stores were hired on a part-time basis.42 Target has said at different times and in different settings that part-time employees make up between 55 percent and 80 percent of its retail workforce. Target said that 55 percent of the workers at a proposed Supercenter in San Rafael, CA would be part-time. However, a Target human resource manager told the San Rafael City Council that on average 65 percent of team members were part-time. Targets own materials say that approximately 80 to 85 percent of employees per store are part-time. 43

BIG BOXES, SMALL PAYCHECKS: How the Retail Lobby Blocks Increases in the Minimum Wage

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BIG BOX RETAIL STORES USE OF CONTRACTED CLEANING COMPANIES

Its not just workers employed directly by Big Box retail stores who are paid
poverty wages. In order to cut costs and avoid responsibility, many Big Box stores often contract out their janitorial work. There is fierce competition among the janitorial companies for these contracts, with each company trying to underbid the other. Since labor is by far the largest and most costly expense in a cleaning contract, the company with the lowest labor costs tends to win the contract. In some cases, the janitorial companies try to reduce their labor costs with practices such as paying below minimum wage or not paying overtime. A number of the companies that clean Big Box stores in Minnesota have been the subjects of lawsuits and Department of Labor investigations for not paying their workers the overtime wages they earned. Diversified Maintenance, which is based in Florida, is the largest janitorial service provider to Target, with contracts covering over 600 stores nationwide.44 Last year, the company settled a lawsuit for $675,00045 that had been filed by workers in Minnesota alleging that: Employees regularly worked 56-60 hours a week without full overtime pay. Employees were required to work seven days a week six days under their own name and one day under a ghost name. This is not an isolated case. In the last ten years, Diversified has settled at least nine private lawsuits as well as six investigations by the U.S. Department of Labor (DOL), all alleging violations of minimum wage and overtime laws. One of the DOL investigations in Minnesota found that not only did Diversified require employees to work seven days a week without any overtime pay, but Diversified also held new employees pay as a deposit that they would receive when they left the company.46 Unfortunately, these problems pervade the retail janitorial industry. Other cleaning companies with which Twin Cities Big Box stores contract have also been the subjects of similar lawsuits and Department of Labor investigations for not paying their workers the overtime wages they earned.

In order to cut costs and avoid responsibility, many Big Box stores often contract out their janitorial work.

BIG BOXES, SMALL PAYCHECKS: How the Retail Lobby Blocks Increases in the Minimum Wage

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BIG BOX RETAIL STORES USE OF CONTRACTED CLEANING COMPANIES In some cases, the janitorial companies try to reduce their labor costs with practices such as paying below minimum wage or not paying overtime.
Prestige Maintenance, based in Plano, TX also cleans Target stores in Minnesota. In 2009 the company settled a lawsuit brought by sixteen of its workers who claimed the company owed them overtime pay. The workers who brought the lawsuit cleaned Target stores in Maryland overnight from 10:30 p.m. to 8:00 am every night.47 Prior to the lawsuit, Prestige Maintenance was investigated by the Department of Labor at least three times, resulting in more than 400 violations for failing to pay overtime to workers in Minnesota, Florida, and New York. 48 The way in which Target drove the prices down so low in its janitorial contracts came to light in another lawsuit brought by cleaning workers in Texas. Target controlled the bidding process in a way that pitted its cleaning contractors against one another, forcing them to underbid each other. Target structured this bidding process to consist of three rounds with a rule that each cleaning contractor could submit a lower bid but not a higher bid in each successive round.49

BIG BOXES, SMALL PAYCHECKS: How the Retail Lobby Blocks Increases in the Minimum Wage

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TAKE ACTION!

Raising wages for Big Box retail workers will benefit individual workers, their
families and community, and taxpayers. The more that Target and Walmart pay their workers, the less it will cost taxpayers to provide public assistance. Unlike manufacturers that must compete with offshore producers that have lower labor and production costs, Big Box retail stores compete with each other. The low-wage structure of the industry is not due to the competitive global market, but rather a mixture of market conditions and policy changes.50 One of the main arguments against raising the minimum wage is that consumers would suffer higher prices, but economic analysis has shown that even if retailers passed the entire cost on to consumers instead of paying for it by cutting CEO compensation or redirecting unproductive profits, raising the pay of retail workers to $25,000 a year ($12/hour) would cost consumers just pennies more per shopping trip. But productivity gains and new consumer spending associated with the raise make it unlikely that stores would need to generate the entire cost If retailers passed half the cost of a wage increase on to their customers, the average household would pay just 15 cents more per shopping trip or $17.73 per year.51 Pay in the Big Box industry could be increased through a variety of means.
1.Target, Walmart, and other Big Box stores should pay a living wage. The

Minneapolis and St. Paul City Councils have set $14.41/hr as their current living wage levels,52 almost double what some retail workers are currently paid. Many retail workers earn close to the minimum wage and would benefit from an increase in the minimum wage. The Minnesota House last year passed HF 92 to raise the minimum to $9.50/ hr, indexed to inflation. However, differences with the Senate legislation kept the bill stuck in conference committee at the end of session.
2.The State of Minnesota should raise its minimum wage. 3.Target and Walmart should stop interfering with their employees rights to

Improving wages and benefits at Big Box retail stores will not only improve the standard of living of lowerincome families, it will also reduce the public cost of the poverty wages paid by Target, Walmart, and other Big Box retailers.

speak out for better jobs. Big Box retail employers could listen to their employees calls for change, rather than retaliate against them for speaking out. Last year, a federal judge set aside an unsuccessful unionization election at a Target store in New York State and ordered a new vote, finding that Target managers had intimidated workers and violated federal labor laws.53 Walmart workers report regular aggressive acts of intimidation and retaliation by the company against workers who try to exercise their rights to stand up and speak out for fair treatment and respect at work. 4. Target and other Big Box stores should use responsible cleaning contractors. Responsible contractors compensate workers at or above prevailing wages and benefits, seek to maximize continuity at workplaces, prioritize worker safety, respect the right of their employees to bargain collectively, and provide employees with a bona-fide grievance procedure.
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CITATIONS
Retails Hidden Potential: How Raising Wages Would Benefit Workers, the Industry, and the Overall Economy, Catherine Ruetschlin, Demos, November 2012 2 Center for Responsive Politics using data from the Senate Office of Public Records 3 Data from the Minnesota Campaign Finance and Public Disclosure Board 4 Retailers weigh in on minimum wage increase, SFGate, Renee Dudley, February 20, 2014 5 Why arent Target employees striking like their cousins at Walmart,? Motley Fool, Natalie OReilly, November 16, 2013 6 Federal poverty level for a family of four is $23,550. 7 The Low-Wage Drag on Our Economy: Wal-Marts low wages and their effect on taxpayers and economic growth, US House Committee on Education and the Workforce, May 2013 8 Occupational Outlook Handbook, 2014-15 Edition, Retail Sales Workers, Bureau of Labor Statistics, U.S. Dept of Labor, Jan 8, 2014 9 Occupational Outlook Handbook, 2014-15 Edition, Cashiers, Bureau of Labor Statistics, U.S. Department of Labor, January 8, 2014 10 US Committee on Education and the Workforce, May 2013 11 Conditions for Workers at Target: Estimates for a Proposed California Supercenter, Jeannette Wicks-Lin, University of Massachusetts, Political Economy Research Institute, April 2011 12 Ruetschlin, November 2012 13 House, Senate gird for battle over wage, Politics in Minnesota, Mike Mullen, March 27, 2013 14 Target 2012 Annual Report 15 Target 2013 Proxy Statement and Walmart CEOs Pay Jumps 14.1 Percent to $20.7 Million, Huffington Post, Jessica Wohl, 4/ 22/13 16 National Retail Federation website 17 Data from the Minnesota Campaign Finance and Public Disclosure Board 18 Best Buy 2013 and 2010 Proxy Statements 19 Walgreens 2013 and 2010 Proxy Statements 20 Target 2013 and 2010 Proxy Statements 21 Mullen, March 2013 22 6 Democrats Betray 30 Million Workers on Minimum Wage, Daily Kos, Bud Meyers, March 19, 2013. 23 Based on data from the Center for Responsive Politics and InfluenceExplorer.com , Target Corp and John Kline 24 Based on data from Center for Responsive Politics, John Barrow (D-GA), John Boehner (R-OH), Dave Camp (R-MI), Eric Cantor (R-VA), Mario Diaz-Balart (R-FL), and Jim Matheson (D-UT) voted against raising the minimum wage. Xavier Becerra (D-CA), Henry Cuellar (D -TX) voted to raise the minimum wage 25 RILA 2006 Public Policy Agenda 26 Based on data from Center for Responsive Politics 27 Emmer: Lower wages for tipped workers, Star Tribune, Jackie Crosby, July 5, 2010 28 Fast Food, Poverty Wages: The Public Cost of Low-Wage Jobs in the Fast Food Industry, University of Illinois at Urbana Champaign Department of Urban and Regional Planning and University of California Berkeley Center for Labor Research and Education, Sylvia Allegretto, Marc Dousard, Dave Graham-Squire, Ken Jacobs, Dan Thompson and Jeremey Thompson, October 2013 29 - Based on 260 employees per Target store Long Island Target Store May Be The First to Unionize, 6/17/11, CBS News, - Based on 281 employees per Walmart, Walmart Strains to Keep Aisles Stocked Fresh, New York Times, Stephanie Clifford, 4/3/13 (Does not include Sams Club stores) - Based on 140 employees per Menards ,Menards pushes bigger is better approach, Matt M. Johnson, 4/8/11, Finance and Commerce - Based on 150 employees per Home Depot, Big Box retailers to get even bigger, Florida Times-Union, 12/17/11, Moshay Simpson - JC Penney has 116,000 employees and 1,104 stores. J.C. Penney Company Inc., 2012 Form 10k - Macys, Inc. Stores by State, - Based on an average of 130 employees per Best Buy (145,000 employees and 1,055 stores) - Based on an average of 120 employees per Kohls.(140,000 associates and 1,100 stores). - Based on 102 employees/store, Marshalls Gets Mixed Reviews, Kamilla Plambeck, 8/5/11, Santa Barbara Independent - Based on 100-150 employees per Kmart store, Simpson, December 2011 - Based on 175 employees per Lowes store, Simpson, December 2011 - Based on 100-150 employees per Sears store, Simpson, December 2011 30 New Data Show How Big Chains Free Ride on Taxpayers at the Expense of Responsible Small Businesses Stacy Mitchell, June 7, 2013, Institute for Local Self-Reliance 31 Employers Who Had Fifty or More Employees Using MassHealth, Commonwealth Care, or the Health Safety Net in State Fiscal Year 2010, Commonwealth of Massachusetts, Center for Health Information and Analysis, Feb 2013 32 2011 Annual Report on Access to Employer-based Health Insurance, New Jersey Department of Human services 33 BadgerCare by Enrollment by Employer, Q4 202,Wisconsin Department of Human Services 34 Alan Grayson says more Walmart employees on Medicaid, food stamps than other companies, Tampa Bay Times PolitiFact, Dec. 6, 2012 35 The Hidden Cost of Wal-Mart Jobs, Arindajit Dube and Ken Jacobs,August 2, 2004 36 Taxpayers subsidizing low-paid employees, Dayton Daily News, Cornelius Frolik, Josh Sweigart, July 22, 2013, 37 Dayton Daily News, July 22, 2013 38 US Committee on Education and the Workforce, May 2013
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Discounted Jobs: How Retailers Sell Workers Short 2012, Stephanie Luce, City University of New York CUNY Murphy Institute and Nooki Fujita, Retail Action Project 40 Abercrombie and Fitch, Other Retail Workers Protest Abusive Scheduling, 10/17/12, Good Morning America, Susanna Kim 41 More People pushed into part-time work force Wall Street Journal, Kris Maher, March 8, 2008, 42 US Committee on Education and the Workforce, May 2013 43 Wicks-Lin, April 2011 44 Diversified Maintenance Systems Hits Several Major Milestones in 2011, July 12, 2011 press release 45 Alvarez et al. v. Diversified Maintenance Systems, LLC et al, No. 0:11-cv-03106-SRN-TNL US District Court, District of MN 46 US Department of Labor, Case ID: 1479614, Minneapolis, MN District Office, Local filing number 2007-250-03336 47 Overtime suit in U.S. District Court for the District of Maryland in Greenbelt settles for up to $3.8 million, Caryn Timber, Daily Record, 12/9/09 48 U.S. Department of Labor Wage and Hour Division Case IDs 1183955, 1351131, and 1147129 49 Juan Isidro Itzep, et al. v.Target Corporation, et al. , Civil Action No. SA-06-CA-0568-XR, United States District Court,Western District of Texas, San Antonio Division 50 Allegretto, et al,, October 2013. 51 Allegretto, et al,, October 2013 52 City of Minneapolis Living Wage Ordinance/ Business Subsidy Act Programs Employment Requirements and Training Opportunities, and St. Paul Administrative Code, Chapter 98 53 Union Gets New Election at a Target, New York Times, Steven Greenhouse, May 21, 2012.

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