The Messenger Courier Association is celebrating its 25th Anniversary!

The MCAA is a non-profit association working to advance the interests of the courier industry. The organization helps its members stay ahead of industry trends as well as being a resource for strategies courier companies may utilize to increase their growth. MCAA also represents members interests in Washington by lobbying on the members’ behalf on issues that affect the messenger courier industry.

To celebrate 25 years the organization asked several leaders of the MCAA to reflect on the meaning of association. Watch below as current and former board members discuss their business success and how the MCAA can help your same-day company!

NAPAREX had the opportunity to provide the program Extreme Makeover: Home Edition with a delivery to their build site in Salt Lake City, Utah. When NAPAREX was presented with the opportunity to deliver a piece from Los Angeles, CA to the build site we couldn’t wait to help the Extreme Makeover team with their efforts to provide a deserving family with an excellent home! We partnered with one of our excellent agent partner, PAMS National Messenger to complete this delivery quickly and efficiently!

As most of you probably know Extreme Makeover: Home Edition spends every episode chronicling the story of a family in need or very deserving of a new home. ABC and the makeover team put together a large group of contractors, builders, electricians, plumbers, etc. who are all donating their time for the project; combine that with a large amount of donated supplies and you’ve got the resources to build a terrific house. The episode that aired this past Sunday 10/2 featured the Gomez family. Jessica Gomez is raising two young children, one of which suffers from a very rare blood disease. He has been hospitalized more than 20 times and understandingly the medical bills are hard to keep up with. Extreme Makeover: Home Edition heard their story and had to help; not only did the program provide them with their very own home but additionally built an income property next door to help provide extra income to the family.

Extreme Makeover: Home Edition represents more than just providing a family of merit with a wonderful home; it also shows what can be accomplished when multiple companies and individuals combine their resources. NAPAREX is proud to be a part of the network of companies and individuals who came together to assure the Gomez family had an awesome place to call home.

If you happened to miss this week’s episode…you can watch it here!

Nordstrom, Inc. is the most recent upscale department store chain to announce they will be offering free standard shipping and free return shipping on nearly all orders placed on their website. This is a great improvement from their previous offer of free standard shipping on orders over $200 or more. Nordstrom, Inc. is in good company; other retailers such as L.L. Bean and popular e-retailer Zappos.com are also present on the expanding list of e-retailers offering free shipping as a standard.

Nordstrom and the multitude of other retailers offering free shipping are taking a step in the right direction. Online shopping is only going to continue to grow in popularity; the convenience and ease of e-commerce retail coupled with Generation Y’s prominence in the industry will only increase the percentage of transactions completed online. A retailer offering free shipping is given a quick edge over the competitor.

The edge that retailers like Nordstrom are missing, however, is the offer of same-day delivery. Stores like Nordstrom, Macy’s and Bloomingdales have prime locations in major metro areas and yet they have not taken the opportunity to offer same-day shipping within those areas. The average consumer is getting used to getting what they want as quickly as possible and retailers need to capitalize on that. Even if the potential customer isn’t making a last minute purchase the idea of having their brand new hand bag or new pair of rain boots only 2-hours after they order makes any extra cost for shipping seem reasonable; that is a serious edge for online retailers.

Logging into Facebook, Twitter, LinkedIn and Google+ is a daily activity for a large portion of Americans; these social platforms provide users the opportunity to engage with friends and family and in Twitter’s case…celebrities! But what many in the business world are failing to realize is that these users are also looking to provide feedback and communication for services they use, restaurants they frequent, products they order, etc. While these social networks used to be an additional avenue of marketing for the business world…it has now become the norm!

Your customers are expecting your website to have links to your Facebook and Twitter pages. Many consumers are “liking” their favorite businesses in an effort to receive “perks” that many companies have begun to offer via social websites. Social websites provide a transparent avenue of communication between business and consumer; the consumer is taking advantage of it…businesses must too!

While many businesses have caught on that social pages are an expected extension of their company many more have created the page just to leave it without updates or communication. Customers are looking for engagement. They want to know what is happening, specials, staff changes, new products, etc. Social networks have even begun to form as another place for customer service; consumers will prefer to comment with their questions instead of calling or emailing and they will expect a relative speedy response. If you give these social networks enough attention they begin to sell your company in their own way; suddenly you will have a page with built-in reviews and testimonials. Even a customer’s bad experience can be made positive when your company quickly responds to correct the situation.

Social media is free and beneficial and it refuses to be ignored. So start engaging and have some fun with it! And if you have yet to buy into the “social media” world, check out this video. Lots of interesting facts!

Companies like these criminal attorneys in Tampa, Finebloom and & Haenel do it very well, check em out!

Online retail sales numbers  for the month of July increased 14% from the same month in 2010. In addition to that, July 2011 marks the ninth consecutive month that e-commerce has posted double digit gains according to a SpendPulse report from MasterCard Advisors. While those in the e-commerce world should be celebrating the sales numbers, many want to explore the reasons for this increase first!

It seems high gas prices and a stifling heat wave are being credited for the most recent rise in numbers. Customers are finding that the costs to drive to retail stores to make their purchases are greater than the shipping charge while those in walking distance or within a short driving distance did not want to brave the dangerous temperatures to do their shopping. These are valid reasons for an increase in these number but the fact is that there is not a more comfortable shopping experience than from the comfort of ones own home, office, dorm, etc.

Online retail offers so much more than a single store. For example, a customer might decide one Saturday that they are looking for a tennis racket. They know there are a certain number of stores they can explore and by the end of the day they will probably come home with a tennis racket. Chances are, if they explored the online retail world for the same item, they would have been presented with an incredible number of options which would have included the opportunity to check price comparisons, customer reviews, performance reviews, detailed descriptions, options for colors, accessories to match, I could go on and on. Even customers who are in the market for clothing are finding that “free shipping” option when spending a set amount of dollars are making it easier for them to order an article of clothing, try it on at home…in front of their own mirror and decide if its “a keeper”.

There are only a few reasons for customers to travel to physical retails locations anymore and one of the more significant reasons is that sometimes a customer needs a product the same day they shop for it. Amazon has realized the benefits of same-day service but retailers like Target, Walmart and Sears haven’t taken the steps to offer any of their products for same-day delivery. It is difficult to grasp their reasoning. A service that offers a customer the opportunity to buy a housewarming gift on a Friday morning and have it wrapped and delivered to their work by 4pm, just in time to head out the door for a friend’s housewarming party, is invaluable. There are so many opportunities for a same-day delivery service in to thrive in the e-commerce world and the increase in online sales numbers will begin to catch retailers’ attention.

Everyone is going green! The effort to recycle and conserve has not only become trendy but important, but many are finding that the hardest place to push “green” practices is in…the office. All of the paper, the ink, the waste, the electricity, etc. it seems a daunting task for any business to convert to a “greener” work environment. While many of us our making the effort at home we forget about the impact we have at work. For example:

• One office worker can use a quarter ton of materials in a year-including 100,000 pieces of paper!
• Heating, cooling, and powering office spaces are responsible for almost 40 percent of carbon dioxide emissions in the U.S. and over 70 percent of the United State’s total electricity usage.
• Computers in the office burn $1 billion of electricity annually.

This is reproduced from the MCAA Government Affairs Update.  http://www.mcaa.com

GOVERNMENT AFFAIRS NEWS

Massachusetts IC Bill Introduced
The Tewksbury Advocate news outlet reports that Massachusetts State Senator Michael Rodrigues (D – Westport) recently introduced legislation aimed at stimulating the economy and increasing job growth in Massachusetts. The bill proposes corrections to the Massachusetts Independent Contractor Law which we all know has suffered from unintended negative consequences over the last few years. The bill titled “An Act Encouraging a Better Business Climate and Job Creation in the Commonwealth” also contains a package of incentives to help kick-start job creation. Massachusetts State Senator Barry Finegold (D – Andover) has signed on as lead cosponsor. The bill text has yet to be made available on the Massachusetts Legislature website but MCAA is working to obtain a copy. Similar legislation was introduced in Massachusetts last year, but did not pass.
Iowa Steps Up Enforcement Efforts
On January 30, the Omaha World-Herald News reported that Iowa is aggressively cracking down on businesses it perceives as misclassifying workers as independent contractors. A special investigative unit established by former Iowa Governor Chet Culver has collected $2.1 million in unpaid taxes, penalties and interest in its first 18 months and has identified nearly five times more misclassified workers than neighboring Nebraska. “We have beefed up our enforcement, maybe not as programmatic as Iowa by creating a special unit, but it’s certainly on our radar. And it has been for a long time,” said Cathy Lang, director of the Nebraska Department of Labor. From October 2009 through September 2010, efforts in Nebraska identified 551 misclassified workers and recovered $25,000 in taxes. Both states find that misclassification is most prevalent in the construction trades, such as drywall, framing and masonry workers, as well as among cleaning crews and truck drivers.
MCAA Government Affairs Lobby Day
Your participation in the upcoming MCAA Government Affairs Lobby Day is absolutely critical! Whether you have attended every prior event or never have been to Washington before, there is no better time to help the courier industry than on March 3, 2011.

Why is this year’s Government Affairs Lobby Day so important? MCAA is in the process of developing federal legislation to protect the Section 530 safe harbor and establish clear criteria which will be used to determine independent contractor status. MCAA has been drafting the legislation over the last several months and are in the early stages of sharing our bill with friendly members of Congress. This is a major proactive step on behalf of the courier industry and we need your help on March 3rd to tell your elected officials why this legislation is needed.

An opening reception will be held on March 2nd at 7:00 – 9:00pm at the Omni Shoreham Hotel. The breakfast and educational sessions will begin the following morning around 7:30am. For travel purposes, the Capitol Hill meetings will conclude around 4:00pm on March 3rd.

We have secured a special room rate of $229/night at the Omni Shoreham Hotel in Washington, DC. Please call 1-800-THE-OMNI and reference MCAA Lobby Day.

NEW STATE LEGISLATION

New Hampshire House Bill 420 (NEW)

Sponsored by Representative William Infantine (R – Majority)

This legislation requires the Commissioner of Labor to establish a voluntary registration procedure for independent contractors under the workers compensation law. The registration form will include explanations of the consequences and possible penalties of misrepresenting their employment status. An independent contractor who registers will not be eligible for benefits if they incur an injury or illness. Status: On January 21, the bill was introduced and referred to the House Committee on Labor, Industrial, and Rehabilitative Services.

Washington State House Bill 1701 (NEW)

Sponsored by Representative Timm Ormsby (D – Majority)

This legislation pertains to the misclassification of independent contractors in the construction industry. An independent contractor is found to be in violation if he/she engages three or more subcontractors to all work on the same task at a single job site. An independent contractor has the burden of proof to show that all subcontractors are not working on the same tasks at a single job site. Status: On January 31, the bill was introduced and referred to the House Committee on Labor and Workforce Development.

Washington State Senate Bill 5599 (NEW)
Sponsored by Senator Jeanne Kohl-Welles (D – Majority)
This legislation pertains to the misclassification of independent contractors in the construction industry. An independent contractor is found to be in violation if he/she engages three or more subcontractors to all work on the same task at a single job site. An independent contractor has the burden of proof to show that all subcontractors are not working on the same tasks at a single job site. Status: On January 31, the bill was introduced and referred to the Senate Committee on Labor, Commerce, and Consumer Protection.

UPDATED STATE LEGISLATION

Florida House Bill 311 (UPDATED)

Sponsored by Representative Ken Roberson (R – Majority)

This legislation provides a definition for an independent contractor for local business tax purposes. In this proposed legislation, an independent contractor must meet at least four of the following criteria: (1) maintains a separate business, (2) holds or has applied for a federal employer identification number (unless the individual is a sole proprietor), (3) receives compensation for services rendered and such compensation is paid to a business rather than an individual, (4) holds at least one bank account in the same of the business entity, (5) is able to perform work for any entity, or (6) receives compensation for services rendered on a competitive bid basis or completion of a task as defined by a contractual agreement. If four of the criteria are no met, an individual may still be presumed to be an independent contractor if the following are met: (1) The independent contractor controls the means of performing the services, (2) the independent contractor incurs the principal expenses, (3) the independent contractor is responsible for the satisfactory completion of the work, (4) the independent contractor receives compensation for work performed, (5) the independent contractor may realize a profit or suffer a loss, (6) the independent contractor has continuing business liabilities, and (7) the success or failure of the independent contractor’s business depends on the relationship of business receipts to expenditures. Status: On February 1, the bill was referred to the House Economic Affairs Committee and Finance & Tax Committee.

Utah Senate Bill 11 Substitute (UPDATED)

Sponsored by Senator Karen Mayne (D – Minority)

This legislation creates the Worker Classification Coordinated Enforcement Council within the Labor Commission. The council will coordinate regulatory and law enforcement efforts related to misclassification. Status: On January 24, the bill was introduced and referred to the Senate Committee on Business and Labor. By a 5-3 vote, the committee gave the bill a favorable recommendation. On January 26, the bill was passed 25-4 by the full Senate. On January 31, the bill was sent to the House and referred to the Committee on Business and Labor.

OTHER STATE LEGISLATION
Connecticut Senate Bill 678

Sponsored by Senator Anthony Musto (D – Majority)

This legislation aims to provide more clarity by amending the definition of an independent contractor to exclude any individual that is paid hourly, whose tools are provided by the person paying the worker, or who otherwise acts at the specific direction of the payor. Status: On January 24, the bill was introduced and referred to the Joint Committee on Labor and Public Employees.

Florida Senate Bill 582

Sponsored by Senator Nancy Detert (R – Majority)
This legislation provides a definition for an independent contractor for local business tax purposes. In this proposed legislation, an independent contractor must meet at least four of the following criteria: (1) maintains a separate business, (2) holds or has applied for a federal employer identification number (unless the individual is a sole proprietor), (3) receives compensation for services rendered and such compensation is paid to a business rather than an individual, (4) holds at least one bank account in the same of the business entity, (5) is able to perform work for any entity, or (6) receives compensation for services rendered on a competitive bid basis or completion of a task as defined by a contractual agreement. If four of the criteria are no met, an individual may still be presumed to be an independent contractor if the following are met: (1) The independent contractor controls the means of performing the services, (2) the independent contractor incurs the principal expenses, (3) the independent contractor is responsible for the satisfactory completion of the work, (4) the independent contractor receives compensation for work performed, (5) the independent contractor may realize a profit or suffer a loss, (6) the independent contractor has continuing business liabilities, and (7) the success or failure of the independent contractor’s business depends on the relationship of business receipts to expenditures. Status: On January 25, the bill was filed in the Senate.

Indiana Senate Bill 164

Sponsored by Senator Frank Mrvan, Jr. (D – Minority)

This legislation states that an employee who intentionally makes false statements to the Department of State Revenue concerning independent contractor status commits a Class D felony. An employer shall not classify an employee as an independent contractor for the sole purpose of avoiding the workers’ compensation and unemployment compensation laws. Status: On January 5, the bill was introduced and referred to the Senate Committee on Pensions and Labor.
Montana House Bill 84

Sponsored by Representative Carlie Boland (D – Minority)

This legislation provides that the definition of an employee does not include an independent contractor with respect to general obligations of employers. Status: On December 20, the bill was introduced and referred to the House Committee on Business and Labor. On January 21, the bill was passed 21-0 out of the House Committee on Business and Labor. On January 25, the bill was passed 80-20 by the full House.
New York Assembly Bill 2274

Sponsored by Assemblyman Bob Reilly (D – Majority)

This legislation amends the workers compensation law by stating that an independent contractor cannot be classified as an employee during orientation or initial training. Status: On January 14, the bill was introduced and referred to the Assembly Committee on Labor.

New York Senate Bill 630

Sponsored by Senator Daniel Squadron (D – Minority)

This legislation pertains to the payment of independent contractors. The independent contractor shall be paid the compensation earned in accordance with agreed work terms. The agreed work terms shall be reduced in writing, signed by both the client and the independent contractor, and made available to the Commissioner upon request. The writing shall include a description of how compensation earned and payable shall be calculated. A client who is found by the Commissioner to be in violation will be subjected to various civil penalties.

Status: On January 5, the bill was introduced and referred to the Senate Committee on Labor.

Oregon House Bill 2313

Sponsored by Representative Chris Harker (D – Even Party Split)

This legislation instructs the Bureau of Labor and Industries to study the development of an independent contractor definition for purposes of adopting by rule a determination of independent contractor status. Status: On January 21, the bill was introduced and referred to the House Committee on Business and Labor.

Oregon House Bill 2469
This legislation establishes a review processes for the Departments of Revenue and Employment based on finding that workers are employees and not independent contractors. The legislation requires the Interagency Compliance Network to work together to share information and increase compliance efforts. Several of the agencies within this network include the Departments of Revenue and Employment, as well as the Bureau of Labor and Industries. Status: On January 21, the bill was introduced and referred to the House Committee on Business and Labor.

Virginia Senate Joint Resolution 345

Sponsored by Senator Phillip Puckett (D – Majority)

This legislation instructs the Department of Labor and Industry to study the misclassification of employees as independent contractors. The study will review the status of employee misclassification and the consequences to the workforce, determine the amount of lost revenue to the state government, and determine strategies for improving improper classification of employees. Status: On January 21, the joint resolution was introduced and referred to the Senate Committee on Rules.

If you notice any one piece of legislation in your area that needs special attention or if you are aware of any local action being taken on specific legislation, please contact MCAA Government Affairs Director John Ferraro at 202-207-1121 or jferraro@mcaa.com. This way we can ensure a well-coordinated effort on behalf of the courier industry. We hope you enjoy this service, please feel free to contact me if you have any questions, comments, or suggestions.

John Ferraro
Director, Government Affairs
Messenger Courier Association of America (MCAA)
750 National Press Building
529 Fourteenth Street, NW
Washington, D.C. 20045
Office: 202-207-1121
Cell: 703-656-6171
www.mcaa.com

Attention Courier Companies

Recently the Obama administration signed the PACT (Prevention Against Tobacco Trafficking) which prevented tobacco sales on the Internet from being shipped through the mail.  A link covering the PACT act can be found here.

This provided an opportunity for the courier industry, as the PACT Act imposes certain limitation in which courier companies can easily overcome, one of which requiring signature verification for the receiving customer as reported here.

NAPAREX would like to inform its agents and the courier industry of the potential implications of making such deliveries of tobacco products with following these important requirements per the remaining provisions of the PACT Act.

1. Packages must be properly labeled stating that the package contains tobacco products and that the recipient is responsible for any state or federal taxes owed.
2. That any shipment not weighs more than 10 lbs.
3. That an adult signature is obtained at the delivery address for every shipment. These signatures need to be kept for at least 7 years.

NAPAREX customers have requested that shipments be left without a signature and this is not acceptable by any agent, even if you are delivering for another company who is shipping tobacco and instructing to leave without a signature.

While it may be acceptable for some of NAPAREX’s competitors to ship without a signature and accept a release form, we must stand firm in our interpretation of the PACT Act.  Please be aware of the liability of your company, employees and contractors if you ship without this compliance.

The PACT Act was created to generate tax revenue and keep tobacco out of the hands of minors. If our industry is the one to deliver this product, let’s make sure we do it right and not cause any issues with the federal government.

Monte C. O’Hara

NAPAREX

Truck drivers drive through many states coast to coast, sometime country to country, logging thousands of miles a day. Keeping a positive attitude on the road really helps ease boredom and fatigue associated with the courier driverss profession.

Take a listen on how a courier driver breaks the monotony of his driving job and actually has fun with some soulful singing. Click here.

Jason is a truck driver making deliveries for Gamble Parts Dart Inc. serving Birmingham, AL. Drivers like Jason are typical IC (independent contractor) drivers that NAPAREX may use for courier and freight delivery.

NAPAREX provides National Courier Services and National Delivery from any city to any city in the United States and most cities in Canada. We provide a variety of service levels for your critical package delivery. Our IC drivers can move a package from New York to Los Angeles in less than 8 hours!

NAPAREX is poised to service local and national ecommerce and retailers through our growing agent network of over 270 national agents.

By offering Delivery Service Nationally or local courier service such as our New York Courier Service, NAPAREX is likely your best solution.