Volume 70, Number 5, 2011/2012

OFFICIAL PUBLICATION OF THE MINNESOTA BEVERAGE ASSOCIATION www.municipalbev.com

$9.99

The Power of “9”

One Penny Does Make a Difference!

CHANGE SERVICE REQUESTED SERVICE CHANGE

PERMIT NO. 91770 NO. PERMIT

TWIN CITIES MN CITIES TWIN

PAID

Minneapolis MN 55432 MN Minneapolis

US POSTAGE US

Box 32966 Box

PRSRT STD PRSRT Municipal Liquor Store Liquor Municipal Statewide: 1-800-552-8711 Twin Cities: 952-854-8600 MUNICIPAL LIQUOR ON THE COVER STORE Check the prices: $9.99, $19.99, $99.99. The 9 is ubiquitous. So, why do so many Volume 70, Number 5, 2011/2012 prices end in 99, and does the one penny really make that much of a difference?

Official publication of the Minnesota “For one penny, I can get you to think of it differently. If price matters, I can get Municipal Beverage Association. Published you to entertain our product,” said Mark Bergen, a Professor at Carlson School of six times annually: September/October, Management at the University of Minnesota. Bergen has researched pricing strate- November/December, January/February, gies, including the use of the 9 as a price cue. March/April, May/June, July/August. For advertising and editorial inquiry conact Some marketers call the concept “psychological pricing.” The idea is that instead Paul Kaspszak, Editor, Box 32966, Fridley, of thinking of $69.99 as a price of $70, you think of it as a price in the 60s. MN 55432. Phone 763-572-0222 or 866-938-3925. Advertising rates available upon request. Change of address: List both old “From a psychological perspective, you ground my attention to a digit that’s $10 and new address. less,” said Bergen.

For more, see page 7 DIRECTORS TOM AGNES STEVE GRAUSAM (President) Edina Liquor Brooklyn Center Liquor 6755 York Ave. South 5625A Xerxes Ave. North Edina, MN 55435 Brooklyn Center, MN 55430 952-903-5732 763-381-2349

LARA SMETANA GARY BUYSSE (Vice President) Rogers Liquor Voyageur Bottle Shop 22350 South Diamond Lake Road 205 - Main Street South Rogers, MN 55374 Pine City, MN 55063 763-428-0163 320-629-2020

BRIAN HACHEY BRIDGITTE KONRAD (Sec./Treas.) City of North Branch Stacy & Spirits P.O. Box 910 30962 Fenway Avenue North Branch, MN 55056 Suite 700 651-674-8113 Stacy, MN 55079 651-462-2727 MICHELLE OLSON Sebeka Liquor NANCY DRUMSTA P.O. Box 305 Delano & Spirits Sebeka, MN 56477 P.O. Box 108 218-837-9745 Delano, MN 55328 763-972-0578 VICKI SEGERSTROM Milaca Off Sale MICHAEL FRIESEN c/o Milaca City Hall Hawley Liquor 255 First Street East P.O. Box 69 Milaca, MN 56353-1609 Hawley, MN 56549 320-983-6255 218-483-4747 TONI BUCHITE CATHY PLETTA Fifty Lakes Bar & Bottle Shop Kasson Liquor P.O. Box 828 30 West Main Street Fifty Lakes, MN 56448 Kasson, MN 55944 218-763-2035 507-634-7618

SHELLY L. DILLON City of Callaway PO Box 116 Callaway, MN 56521 218-375-4691 MMBA President’s Message

He said no a guy bought it here 20 that kind of a price. minutes ago and sent the tweet out and Tom Agnes now I am here! I was amazed at the My point in bringing this up is to say that President power this displayed. information flows so quickly these days. If this happened 20 years ago a few Then just last week, another high demand customers would have been mad and a Smart phone= Smart communication? and very limited product hit stores and couple of their buddies would have heard was pretty much sold out within hours of about it. But it would have stopped there You be the judge. its release. The Social Media sites were and been forgotten about. lit up with messages on where to find this These days, information and communica- product. Now this incident has multiplied by tion move so fast. Twenty or thirty years hundreds if not thousands of comments. ago you made a phone call or mailed a Because of the limited supply, stores letter to someone if you wanted to give make a healthy GP -- we were at 34%, So with all that being said, realize the them information. which works out to be a 53% mark up. good and the bad that can come with this fast flowing information process. Then e-mail came along and you would Then something really strange happened, send someone an email and expect a a big store decided to run this product Finally, you will soon find MMBA on pretty quick response. with 65% GP or that just under a 300% Facebook. We are developing a page mark up. and operating guidelines right now. If Now the “Smart Phone” has changed you have any ideas or suggestions on everything we know about the flow of All week long this store’s own Facebook making it effective and fun give me a information. Emails go directly to our page was riddled with negative comments call or send me an e mail, phones. If we do not have a data plan we on their decision. Customers were very [email protected] can text, basically the same thing as an upset on this store’s decision to charge email.

Then we can take it to a whole new level “Social Media.” While there are many different ones out there, two are Facebook and Twitter. One Call. We at BC liquors had a seasonal product If it has anything to do with beverages ice come out a few weeks ago that was in high demand and we had people calling or refrigeration call the Shamrock Group. days before wondering when the delivery With our expert attention to detail starting was coming. When the truck came and the with us will set you up for business success. product was on the shelf, people started rolling in for this unique 4-pack of beer. Over 100 beverages . Shamrock Beer Systems About 30 minutes after it was delivered a . guy came in and said he heard it was here! . Walk-in Freezers/Coolers So I asked him if he called. He said no it . Shamrock Water Filteration was on Twitter. . Bulk CO2 other gasses . Service, repair, installation I was confused because we do not have a . Ice machine rentals Twitter account, I said the supplier must . ‘Perfect’ Ace Ice have “Tweeted it”.

MUNICIPAL LIQUOR STORE 4

Providing Service and Brands to its customers... Since 1882 With the largest selection of Fine Wines, Distilled Spirits and Beer in Minnesota

www.wirtzbeveragegroup.com

Statewide Wine & Spirits 651-646-7821 or 1-800-672-0970 Metro Area Beer 651-646-6063 489 North Prior Ave. • St. Paul, MN 55104 One Penny DOES Make a Difference

MINNEAPOLIS (WCCO) — With “From a psychological perspective, you said Bergen. “You’re focused on the all the weapons retailers have to try ground my attention to a digit that’s digit that matters: the 100s, or the 50s. to get our money, it’s hard to imagine $10 less,” said Bergen. In that case, all the rest is just noise.” that a penny has much of a pull. Yet, check the prices: $9.99, $19.99, $99.99. Other researchers talk about the “Left There is also the theory that we’ve The 9 is ubiquitous. So, why do so Digit Effect,” the idea that people focus trained ourselves to expect the last many prices end in 99, and does the on the left-most digit, instead of the digit, the number 9, to be a signal one penny really make that much of a pennies at the end. meaning: deal. difference? Data supports the idea that people make “When we see $99.99, it looks like a “For one penny, I can get you to think pricing decisions based on those pen- sale. Since, you know, we’re looking of it differently. If price matters, I can nies. for a deal, we’ll start there,” he said. get you to entertain our product,” said Mark Bergen, a Professor at Carlson Some researchers at University of Not that the one penny difference School of Management at the University Chicago looked at an experiment with always gets us to buy, but it’s an ex- of Minnesota. a local grocery store. Margarine started tremely cheap way for retailers to get at 89 cents. When the grocery store cut us in the door, to open the conversation. Bergen has researched pricing strategies, the price to 71 cents, sales improved including the use of the 9 as a price cue. 65 percent. When they dropped it two However, the Harvard Business Review more pennies to 69 cents, sales went up wrote about a clothing store that took Some marketers call the concept “psy- a remarkable 222 percent! a $34 dress and raised the price to $39. chological pricing.” The idea is that Sales went up 25 percent. instead of thinking of $69.99 as a price “There’s a magic penny from $25 to of $70, you think of it as a price in the $24.99. That penny has way more ef- “If price matters, you want to give them 60s. fect, has way more power. It’s magic,” a cue,” said Bergen.

2012 2012 2012 MMBA / MLBA MMBA MMBA Legislative Boot Camp Annual

Day • Conference • February 21-22, 2012 • February 27, 2012 Breezy Point May 20-22, 2012 Kelly Inn - St. Paul Resort Arrowwood Resort

MUNICIPAL LIQUOR STORE 7 Regardless where you are, we've got you covered. Rely on the MIIMA members for 'bottled water' quality ice, first-rate service and fast, dependable delivery.

Minnesota Independent Ice Manufacturers Association

MIIMA Members:

Ace Ice Company 2900 Fifth Avenue South Minneapolis, MN 55408 612.824.9600 800.862.9273 Contact: Matt King

Carlson’s Lakeshore Ice Company 602 Ogden Avenue Superior, WI 54880 888.943.2665 Contact: Chuck Wessberg

MID-CENTRAL ICE LLC Duluth/Superior Crystal Springs Perham Ice Company 25503 Russell Road Pine City, MN 55063 866.629.6267 Contact: Tom Valvoda Pine City Mid Central Ice Belgrade 39072 County Hwy. 49 Perham, MN 56573 218.346.4423 877.346.4423 Minneapolis Contact: Dave Chase

Precise Ice Company 608 Parkway Drive Belgrade, MN 56312 Waterville 320.254.8018 320.293.0010 (cell) Contact: Mike Buckentine

Waterville Ice Company 14853 E. Benton, Suite 1 Waterville, MN 56096 507.362.8177 888.362.8177 Minnesota ice for Contact: Bernie Akemann Minnesota businesses. Fair Labor Standards Act – An Overview

The MMBA Office has received many Note: Many cities pay overtime for wears a beeper and is free to come questions about paying employees hours worked over eight in one day; and go as he/she chooses or overtime, who is exempt, non-exempt, however this is not a requirement of merely leaves a telephone number salaried, hourly etc. The following the FLSA (except for certain municipal where he/she can be reached but is information is from the League of hospitals and nursing homes). Some not required to wait by the phone; Minnesota Cities website: cities have this requirement in their • meal periods of at least one-half hour personnel policies or union agreements. where the employee is not performing FAIR LABOR STANDARDS ACT These should be honored unless and any work; (FLSA) AN OVERVIEW until they are changed. • ordinary home to work travel.

Coverage Definition of “Hours Worked” Regular rate of pay All cities are covered by the Fair Includes all hours that the employee The regular rate of pay includes all Labor Standards Act (29 U.S.C.A. actually performs duties that are for the compensation for employment, including §201-219). However, some employees benefit of the city, including: base wages, longevity pay, on- call or are “exempt” from the overtime • rest periods or “breaks” of 20 minutes standby pay, educational incentive pay, provisions of the Act. For more or less; and most other forms of pay. It does information determining “exempt” vs. • meetings and training programs; not, however, include tuition or expense “non-exempt” status under the • travel between work sites during the reimbursement. FLSA, see Fair Labor Standards Act: work day; Determining Exempt vs. Non-Exempt • time spent performing duties after Workweek Status. hours or on weekends due to The workweek can be any period of emergencies (call backs); and time that the city chooses consisting of Requirements • any time performing duties outside seven days in a row. It can begin at any The FLSA requires cities to: of the normal shift, even if it is not time of day. However, the city must • pay at least the Federal minimum “authorized” (although unauthorized consistently use the same seven-day wage (currently $7.25/hour) to all hours must be compensated, nothing period (for example, Sunday at 12:00 non-exempt employees for all precludes an employer from taking a.m. through Saturday at 11:59 p.m. of hours worked. In situations where disciplinary action for failure to every week). The city can also have both the federal and the state FLSA follow work schedule and work different workweeks for different groups address an issue, the employer is expectations). of employees as long as each employee required to follow the law that is of group is told what their workweek is greatest benefit to the employee. All of the “hours worked” must be and it is documented in writing. (The state minimum wage is $6.15 added together to determine if the per hour for most employees.) employee exceeded 40 hours in one Compensatory Time Off • pay at least one and one-half times workweek. When computing “hours Cities are not required to provide the the employee’s regular rate of pay worked,” you do not need to include option of compensatory time off in lieu for all hours worked over 40 in the time that the employee was gone of paid overtime. (Be aware that a city workweek OR grant compensatory for vacation, sick leave or holidays, policy or union contract may require time off at the rate of one and one- half even if the time off is paid time off. the city to provide this option.) As hours off for each hour worked Although some cities have policies noted above, under certain over 40 in the workweek (words in or union contracts that require such circumstances, a city may give italics are defined below); hours to be included, it is not required compensatory time off in lieu of paid • pay overtime wages on the regular under the FLSA. overtime. payday for the pay period in which the wages were earned; There are also several examples of time Cities may do this when: • comply with the child labor standards; that does not have to be included as • it is established as a term or condition and “hours worked:” of employment (at time of hire); • comply with the record-keeping • on-call hours where the employee • it is negotiated under a collective requirements.

MUNICIPAL LIQUOR STORE 9 bargaining agreement; or • it is mutually agreed upon with individual employees, before the overtime hours are worked. U of M Receives $2.5 million

The employee must be allowed to take Wine Grant compensatory time within a reasonable time period, unless it is an “undue By Matt Herbert, Minnesota Daily Throughout the year, researchers hardship” for the city. (Courts have conduct sensory and chemical ruled that having to call in another em- In the past 30 years, the University of evaluations, as well as tasting panels ployee at an overtime rate of pay does Minnesota has developed climate-en- for both the wine and . not constitute an undue hardship.) during wine grapes that are now made Cities cannot establish “use it or lose it” into the four most widely produced Once the research center has produced policies for compensatory time earned wines in Minnesota. a grape that generates a superior-tast- in lieu of overtime. ing wine, it licenses the grapes to A full crop of “cold hardy grapes” can nurseries, which sell them to wineries. The FLSA sets a limit of 240 hours of withstand temperatures of up to 33 compensatory time for most employ- below zero. Cook said she thinks the grant can ees (160 hours at time and one- half). really boost the wine industry as a Police and fire employees have a higher Now, a $2.5 million grant from the whole. limit (see Fair Labor Standards Act U.S. Department of Agriculture will Police and Fire Employees). Most allow researchers from the University “I hope the industry gets more cities set a lower limit (e.g., 40 hours) and scientists from 11 other institu- advanced knowledge of the grape because of the difficulty of granting tions to research more climate-resis- and learn how to make wines bet- employees so much time off. Remaining tant wine grapes, the acidity and taste ter,” Cook said. “I think the industry compensatory time must be paid at within wine grapes and how best to needs to learn how to market toward the time the employee terminates market the wine to consumers. consumers and get the consumers employment at what may be a higher interested.” rate of pay, so the cost of payout Professor James Luby of the Depart- increases over time. To avoid this, ment of Horticultural Sciences said Cook said many consumers avoid new some cities periodically cash out the wine industry has been progres- wines because they’re not familiar compensatory time (for example, sively growing in Minnesota for the with them. paying off all compensatory time last 15 years.“It’s a small industry, but balances each December before there are now 33 wineries throughout “Flavors change over time and starting the new year). This should be the state and more than 1,000 acres of people adapt to flavors,” Cook said. established in writing as a city vineyards,” Luby said. “Consumers flock to flavors they’re policy and/or in a union agreement. accustomed to.” A bulk of the wine grape plantings in Child Labor Standards the state consists of grapes developed Horticultural master’s student Luke The FLSA has certain restrictions on by the University. The four varieties Haggerty, whose thesis involves grape the type of work and the hours of work include , Frontenac gris, La and berry development, said that more that may be performed by minors. Crescent and . knowledge is needed about wine and The requirements of the FLSA must wine growing. be coordinated with state laws on child At the University’s Horticultural labor. The HR Reference Manual on Research Center near Victoria, Minn. “We need to be able to produce our web site at www.lmc.org has more — about 25 miles southwest of higher-quality wines,” Haggerty said. detailed information. Minneapolis — research continues to “We need to learn more about our be conducted on the different tastes. cultivars so we can use them in this Youth Minimum Wage Last year, researchers produced 100 frigid climate, both in the vineyard Cities may pay a “youth minimum different kinds of wines for genetic or and in the winery.” wage” of not less than $4.90 an hour optimization trials, according to Katie to employees who are under 20 years Cook, an enologist at the center. In 30 years I would like to be able to of age during the first 90 consecutive compare the Minnesota wine industry calendar days after initial employment. Cook said all wine is experimental to what the industry is and used for evaluation, not sale. today.’’ (Continued on page 15)

MUNICIPAL LIQUOR STORE 10

Fair Labor Standards Act (FLSA): Determining Exempt vs Non-Exempt

The Fair Labor Standards Act (29 the enterprise (e.g., the city) or a selecting and training employees; set- U.S.C.A. §201-219) requires, among customarily recognized “department ting and adjusting employee rates of pay other things, that cities compensate or subdivision” of the city; and hours of work; directing employee covered employees at the rate of time • Regularly supervise two or more work; evaluating employee perfor- and one-half for hours worked over employees (at least 80 hours worth mance; handling employee 40 in one workweek. This Fact Sheet of employee work per week); and complaints/grievances; disciplining discusses which employees are covered • Have the authority to hire or fire employees; planning work and (non-exempt) employees and which other employees or have their determining techniques; determining are not covered (exempt) employees. recommendations on hiring/firing, materials, supplies, equipment and tools Cities should be aware that Police and advancement, promotion or other to be used; planning and Fire Department employees have some change of status decisions be given controlling the budget; and providing unique exemptions. See An Overview “particular weight.” for employee safety. of the Fair Labor Standards Act (FLSA) and Police and Fire Employees and the “Managing” includes: spending “Department or subdivision” means a Fair Labor Standards Act (FLSA) for approximately 50% of work time on unit with permanent status and a con- more information on the FLSA. management activities like interviewing, tinuing function. For example,

All cities are covered by the FLSA, but some employees are “exempt” from the overtime provisions of the act. Total Register Systems To be “exempt,” employees must 4215 Louisiana Avenue New Hope, MN 55428 meet both of two separate tests: 1) duties test; and 2) salary basis test. (763) 537-1906 • www.trs-pos.com Non-exempt employees must be paid overtime for all hours worked over 40 in one workweek; exempt employees Point-of Sale & Inventory Solutions do not earn overtime. for the On-Sale / Off-Sale Being “salaried” does not mean the Municipal Beverage Industry same thing as being “exempt.” With a few exceptions (e.g., doctors, lawyers), any employee who does not earn $455/ Systems Include week will be considered non-exempt. • ID Verfification Duties Test • Credit Card Interfacing There are generally four types of exemptions used by cities. Employees • Sign Painting must meet the criteria outlined in one of the following four exemptions (Execu- • Gift Cards tive, Administrative, Professional and Computer) in order to meet the “duties” • Wireless Scanning test and be considered exempt. • Touch Screen Executive Duties • Report Wizard Executive employees must: • Be paid at least $455 per week on a • Video Camera Interfacing salary basis; • Have the primary duty of “managing” Total Register Systems has 20 years of Experience in Retail Partnerships

MUNICIPAL LIQUOR STORE 12 in a larger city, there may be separate city, the employee is likely an “admin- Professional Exemption subdivisions within the Public Works istrator.” If the employee’s primary Professional employees must: Department for “Streets,” “Utilities,” duty is providing the goods/services • Be paid at least $455 per week on a and “Parks” and these subdivisions of the organization, the employee is salary basis and: may meet the definition of a likely a “production” employee. Work • Primarily perform work that requires “department or subdivision” under performed in areas such as finance, ac- knowledge of an advanced type the FLSA regulations. However, counting, insurance, purchasing, human in a field of science or learning “department or subdivision” does not resources, computer network, internet (“learned professionals”) or work mean a group of employees assigned and database administration is likely to that requires invention, imagination, from time to time to work as a team on be seen as administering the business originality or talent in a recognized a specific job or project. affairs of the city. artistic or creative field (“creative professionals”). “Particular weight” refers to the To determine whether an employee requirement that a certain amount of exercises discretion and independent In general, to meet the “learned consideration be given to an employee’s judgment on significant matters, the professional” definition, the employee recommendations if that employee’s city should ask these questions: must do work that is mostly intellectual, position is to meet the executive • Does the employee have authority requires the consistent exercise of exemption. to formulate, interpret or implement discretion and judgment (not routine management policies? mental, manual, mechanical or physical The following questions are used to • Does the employee carry out major work). The employee must use the determine “particular weight”: assignments and perform work that advanced knowledge to analyze, affects business operations to a interpret or make deductions from • Is it part of the employee’s job duties substantial degree? varying facts or circumstances. to make hiring/firing/job change • Does the employee have authority Advanced knowledge cannot be recommendations? to commit the city in matters with a obtained at the high school level. • How often does the employee make significant financial impact? such recommendations? • Does the employee have authority Lawyers, doctors, accountants (but not • How often are the employee’s to waive or deviate from established accounting clerks or bookkeepers), and recommendations taken (vs. overrid den) policies and procedures without prior engineers are examples of professionals by the Council or higher management? approval? that are likely to meet the requirements • Does the employee have authority of this exemption. Occupations that An employee can still meet the to negotiate and bind the company can be performed with only the general executive exemption duties test if he or on significant matters? knowledge of an academic degree in she sometimes performs nonexempt work • Does the employee provide expert any field are not likely to qualify under (e.g., the labor or production work of advice to management? this exemption. Nor are occupations the employees he or she supervises). • Is the employee involved in planning in which the employees generally learn However, the employee’s “primary long- or short-term business “on-the-job” rather than by obtaining duty” (see “General Definitions and objectives? an advanced degree. Guidelines” section below) must be • Does the employee investigate management. and resolve important matters for To qualify for the “creative professionals” management? exemption, the employee must perform Administrative Duties • Does the employee handle complaints, work in fields such as music, writing, Administrative employees must: arbitrate disputes or resolve acting and graphic arts. These must • Be paid at least $455 per week on a grievances? be determined on a case-by-case basis; salary basis; cities may want to contact the League • Have the primary duty of performing The more “yes” answers to the above or work with a consultant/attorney in office or non-manual work directly questions, the more likely the employee determining these exemptions. related to the management or general would be considered exempt under the business operations of the employer administrative exemption. Computer Exemption (the city). Computer employees must meet the • The office or non-manual work must An employee can still qualify for the following tests: require the exercise of discretion and administrative exemption even if their • Be paid at least $455 per week on independent judgment on significant decisions or recommendations are re- a salary basis or, if paid on an hourly matters. viewed at a higher level and occasion- basis, they must be paid at least ally revised or reversed. $27.63 per hour; If the employee’s primary duty is to • Perform work in the area of computer administer the business affairs of a systems analysis, computer

MUNICIPAL LIQUOR STORE 13 programming, or computer software Exempt vs. non-exempt work: the employee: engineering; and Exempt work is the work performed • Must receive a predetermined • The employee must have a primary by executive, administrative, amount of pay each pay period; duty consisting of: Using systems professional and computer • Cannot be paid by the hour; analysis techniques and procedures employees. The definition of exempt • Cannot be subject to variations in pay to determine hardware, software or work includes “closely related work” based on quality or quantity of work; system functional specifications; that exempt employees perform. • Must receive the full salary for • Designing, developing, documenting, An example of “closely related any week in which any work is analyzing, creating, testing or work” is when the Finance performed. Deductions from the modifying computer systems or director uses computer software to weekly salary can be made when: programs based on and related to prepare a budget presentation for the • The employee is absent for a user or system design specifications; City Council. While technically this day or more for personal reasons • Designing, documenting, testing, may be a non-exempt duty, it is unrelated to illness or injury; creating or modifying computer closely related to his exempt duty of • The employer imposes penalties programs related to machine preparing the budget. By definition, for a major safety violation operating systems; or any work that is not exempt work is (e.g., suspension without pay); • A combination of the above duties non-exempt work. • No work is performed in that requiring the same level of skills. week. Primary duty Combination Exemption To qualify for any of the above According to the U.S. Department of Employees who perform a combina- exemptions, an employee’s primary Labor, public sector employers who tion of various types of exempt duties duty must be executive, administrative, have a personal leave and sick leave may qualify for exemption if the ex- professional, or computer work. system that employees must use for empt duties, taken altogether, comprise Primary duty means the principal, partial day absences due to personal the employee’s primary duty. However, main, major or most important duty reasons or illness/injury can make de- the employee must still be paid at least that an employee performs. ductions for these partial day absences $455 per week on a salary basis. when: Factors to consider include: • Accrued leave is exhausted and the Highly Compensated Employees • What is the relative importance employee takes a partial (or full) day An employee who earns $100,000/ of the exempt duties compared with off; year is exempt if the employee other types of duties? (If the job • The employee did not request paid regularly performs any one or more exists mainly for the purpose of per leave or the paid leave was denied of the exempt duties or responsibilities forming the exempt duties, it is likely but the employee still takes the time of an executive, administrative or to be considered exempt.) off as unpaid leave (partial or full professional employee. The employee • How much time does the employee day); or must meet the salary basis test and be spend performing exempt work? • The employee requests the use of paid at least $455/week on a salary (Ideally it should be 50% or more of unpaid leave (partial or full day off). basis. Fringe benefits may not be the time but this is not an absolute counted towards the $100,000/year requirement.) Deductions from the pay of an exempt amount. This exemption applies only • How much supervision does the employee of a public agency for absences to employees whose primary duty employee receive? How free is the due to budget-required leave-without- includes performing office or non- employee to determine how to spend pay programs shall not disqualify the manual work. Therefore, employees her time? (The more independence employee from being paid “on a salary who perform physical work such as and freedom, the more likely it is to basis” except in the workweek in which maintenance workers and laborers do be considered exempt.) the budget-required leave-without-pay not qualify for this exemption, no • What is the relationship between occurs and for which the employee’s matter how much they earn. the employee’s salary and the wages pay is accordingly reduced. paid to other employees for the kind General Definitions & Guidelines of nonexempt work performed by the Special Exemptions employee? (If the employee’s pay is The city may be subject to certain Customarily and regularly relatively close to the level of state law exemptions (listed below) if A customary and regular duty is a nonexempt workers, this may harm it meets this federal exemption: duty that is performed more often the employee’s chance of being than just occasionally – i.e., normally considered exempt). Employees working in separate performed every workweek, not seasonal amusement and recreational isolated or one-time tasks. Salary basis To be compensated on a salary basis,

MUNICIPAL LIQUOR STORE 14 establishments are exempt from the if the city’s revenues are $625,000 or Record-keeping Requirements federal wage and hour law if the more and at least $5.25/hour if the The FLSA requires employers to: establishment is physically separated city’s revenues are less than • Display their Minimum Wage poster from the rest of the city’s operations, $625,000. In addition, during the (go to www.dol.gov to download a either by distance or structurally (e.g., first 90 consecutive days of employ copy). a fence). In addition, it must be open ment, the city may pay employees • Maintain detailed records of hours no more than seven months of the under the age of 20 a wage of $4.90/ worked and wages paid to non- year or its average receipts for any six hour. exempt employees and similar months of the preceding year were not • MN Statutes 177.25: The city must records on exempt employees, more than 1/3 of its average receipts pay time and one-half overtime for including: name, employee number, for the other six months of the year. all hours worked over 48 in one work home address, birth date if under week. 19, sex , occupation, workweek, If the city does not meet this federal • Employees who freely choose to regular rate of pay, hours worked exemption, then it must pay $7.25/hour work part-time for the city in a each day and total for week, total for recreation employees and time and different job than their normal job on daily or weekly straight time one-half overtime for all hours worked an occasional and sporadic basis do earnings, total premium pay for over 40 in one workweek. not need to be paid time and one-half overtime, total additions to or for the additional hours if: the duties deductions from wages each pay If it does meet this exemption, one or in the two jobs are substantially period, total wages paid each pay more of the following may apply: different and they are working in two period, and date of payment and the • MN Statutes 177.23 subd. 7(14): The different departments. pay period covered. city is not required to pay minimum • Maintain records on compensatory wage/overtime to any individual If you have any additional questions, time earned, used and paid in under 18 working less than 20 hours please contact the LMC HR & Benefits cash as well as union agreements per workweek for a city as part of a Department at 651-281-1200. regarding compensatory time, even if recreational program. they are verbal agreements. • MN Statutes 177.24: The city must HR & Benefits 07/2011 • Preserve payroll records and union pay employees $6.15/hour or more agreements for at least three years.

If you have any additional questions, AN OVERVIEW please contact the LMC HR & Benefits (Continued from page 10) Department at 651-281-1200. Quick The city cannot displace an employee to hire someone at the youth minimum HR & Benefits 07/2011 Tip wage. End cap displays should grab the customer’s attention and sell merchandise. An end cap should sell as much merchandise at 50 percent of one side of the adjoining counter.

MUNICIPAL LIQUOR STORE 15 The Power of Menu Design

By, http://www.vaneefoods.com helps direct the gaze of the reader • Page Positioning On two- to that particular section. panel (page) menus people most Just like the way big headlines, often look at the top right-hand colorful photos and bold fonts side first. On three-panel (page) lead us to read certain newspaper menus, people most often look articles over others, the layout at the center panel first, and then and design of a menu influence move counter clockwise. Consider customers’ ordering decisions. putting your high profit items such as specials or specialty drinks in Guests look at menus for an these spots. (See figure right.) average of 109 seconds before When choosing columns for your choosing their order, according to menu, try and keep each panel to a recent Gallup poll. By making a maximum of two columns. Any certain items stand out, you can more than that and your menu increase the odds that high gross could start looking like the profit items, appetizers, desserts classifieds. and beverages will be noticed in • Showcasing Highlight types those short 109 seconds. of foods by including menu headings such as “Chef Specialties” The menu is the only piece of or “Fresh Salads” rather than using printed advertising that you are generic terms such as “Entrees”. 100 percent sure your customer • Color and Font Make sure your will read. This being said, it is menu colors reflect your brand only logical to take advantage of and overall restaurant feel. If you this powerful tool by investing are a kid-friendly operation, using sufficient time, thought and bright colors and graphics would resources into your menu or • Item Placement People most be in order. However, these may menu board. often remember and buy the first not be appropriate for a French two items or the last menu item in Bistro. When choosing fonts, also Here are a few menu design each menu category. Place your keep feel in mind, but remember techniques that will help your menu items with the highest gross not to choose anything that is too “silent salesperson” boost check profit in these spots on the menu. gimmicky or hard to read. averages and guest loyalty. • Boxing Impact and Graphics • Test Run Have a sample Highlight 10 to 15 percent of the audience read your menu and Firstly, most people do not “read” space on your menu by boxing give you feedback. And don’t just a menu from page to page like menu items. As a general rule box give it to family and friends! Give a book. Instead, they “scan” the one out of every 7 to 10 items. it to people who you know will menu with their eyes. If you want Use type and color changes to give you an honest opinion. Ask to feature specific menu items, draw attention to certain items. them if it is easy to read, if they they need to be placed where the Add photos or graphic effects to understand the descriptions, and eye goes first. Do not leave this to highlight menu items with the best does it make your dishes sound chance. The use of “eye magnets” gross profit. appealing?

MUNICIPAL LIQUOR STORE 16 Ad Name: Golden Country Closing Date: 11.19.10 Trim: 8.5 x11 Item #: PMG20089209 QC: RR Bleed: 8.75 x 11.25 Order #: 224477 Pub: MMBA Newsletter Live: 8 x 10.5 MMBA Commercial Members Are Available to You! Contact Them!

J.J. Taylor Distributing CNH Architects Platinum Member Contact: Wayne Hilbert Company of Minnesota, Inc. Silver Member Address: 7300 West 147th Street #504 Contact: Mike Bamonti Apple Valley, MN 55124 Anheuser-Busch, Inc. Address: 701 Industrial Blvd. NE Phone: (952) 431-4433 Contact: Marques Simmons Minneapolis, MN 55413 Arctic Ice, Inc. Address: 10252 Grand Isle Place Contact: Chad Friedrichs E-mail: [email protected] Phone: (651)482-1133 Address: 1090 South Victory Drive Web: www.cnharch.com Woodbury MN 55129 Fax: (651) 482-9810 Cell: (443) 797-5868 Mankato, MN 56001 E-mail: [email protected] Phone: (507) 345-8078 • (507) 327-4389 E-mail: marques.simmons Web: www.jjtaylorco.com Don Sebastiani and Sons @anheuserbusch.com Fax: (507) 388-4387 Contact: Bryant Pascoe E-mail: [email protected] Web: www.budweiser.com Address: 316 Willow Pointe Drive Life Media, Inc. St. Charles, MO 63304 Contact: Mike Juszczak Heck Estates Phone: (636) 300-3524 Arctic Glacier Ice Address: 2928 Dean Parkway, Suite 51 Contact: Kathy Bilcik Jones [email protected] Jon Stelley E-mail: Contact: Minneapolis, MN 55416 Address: 10135 Parrish Ave NE Web: www.planeteria.com/sandsons/ Address: 1654 Marthaler Lane Phone: (612) 920-5433 Ostego, Mn 55330 W. St. Paul, MN 55118 Fax: (952) 881-7797 Phone: (763) 227-4214 Phone: (651) 455-0410 ext. 213 - office Fieldstore Vineyards E-mail: [email protected] Fax: (763) 355-9585 Charlie Quast Fax: (651) 455-7799 www.lifemediainc.com Contact: Web: E-mail: [email protected] Address: P.O. Box 133 Mobile: (507) 421-4893 Web: heckestates.com E-mail: [email protected] Redwood Falls, MN 56283 Web: www.arcticglacierinc.com Mike’s Hard Lemonade Phone: (507) 249-9463 Contact: Noah Mason E-mail: [email protected] Phone: (952) 898-5576 Web: www.fieldstonevineyards.com Beam Global Spirits & Wine çell: (612) 850-4988 Bronze Member Contact: Leslie Defries Fax: (952) 898-4083 Address: 3601 W. 76th Street Suite 20 E-mail: [email protected] Forest Edge Winery Edina, MN 55435 Web: www.mikeshard.com Bellboy Corporation Contact: Paul Shuster Phone: (952) 830-1131 Contact: Dave Gewolb Address: 2200 Florida Avenue South Address: 35295 State 64 Fax: (952) 830-0123 North Country Business Laporte MN 56461 Cell: (612) 850-7342 Minneapolis, MN 55426 Phone: (612) 544-8178 Phone: (218) 224-3535 E-mail: [email protected] Products Fax: (218) 224-3502 Web: www.beamglobal.com Contact: Scott Barta E-mail: [email protected] Address: P.O. Box 910 Crystal Springs Ice Web: www.forestedgewinery.com Bemidji, Mn 56619-0910 Contact: Tom Valvoda MillerCoors Brewing Company Address: 25503 Russell Road Jon Chance Phone: 888-505-0540 Contact: Fax: (218) 755-6038 Ine City, MN 55063 Grand Pere Wines Inc. Address: 248 Cygnet Pl E-mail: [email protected] Phone: (866) 629-6267 Contact: Brian Daunheimer Orono MN 55356 Web: www.ncbpinc.com Address: 2222 Elm Street NE Phone: 612-718-6862 Minneapolis, MN 55414 Dahlheimer Beverage Phone: (612) 929-3163 x 40 Fax: (952) 285-6862 Pernod Ricard USA Contact: Nick Dahlheimer E-mail: [email protected] Fax: (612) 605-7132 Contact: Will Arend Address: 3360 Chelsea Road West [email protected] www.millercoors.com E-mail: Web: Address: 16280 Grinnell Avenue PO Box 336 Web: www.grandperewines.com Lakeville MN 55044 Monticello, MN 55362 Phone: (612) 802-6774 Phone: (763) 295-3347 Minnesota Independant Ice E-mail: [email protected] Fax: (763) 295-4947 Hagen Beverage Distributing Web: www.pernod-ricard-usa.com Contact: Mark Hagen Manufacturers Association E-mail: [email protected] Address: 500 Industrial Lane Contact: Steve Kelly Worthington, MN 56187 Address: 2900 5th Ave. So. Retail Information Technology Dakota Worldwide Phone: (507) 376-5903 Minneapolis, MN 55408 Contact: Len Sage Fax: (507) 376-5951 Phone: (612) 824-9600 Enterprises Address: 8200 So. Humbolt Ave.,Suite 302 E-mail: [email protected] Fax: (612) 824-1974 Contact: Rick Feuling Minneapolis, MN 55431 E-mail: [email protected] Address: 1001 2nd Street South, Suite 100 Phone: (952) 835-4505 Web: www.aceice.com Sartell MN 56377 Fax: (952) 835-4461 High Five Beverages E-mail: [email protected] Contact: Donovan Sienko Phone: (320) 230-2282 Address: 1970 - 112th Circle Ste. Michelle Wine Estates Cell: (320) 761-6423 Web: www.dakotaww.com Blaine, MN 55449 Contact: Randy Dobratz Fax: (320) 230-1796 Phone: 612-247-9975 Address: 16540 Hyland Court E-mail: [email protected] Johnson Brothers Liquor Company Fax: 763-785-0138 Lakeville, MN 55044 Web: www.rite.us Contact: Michael Johnson E-mail: [email protected] Phone: (952) 250-9837 Address: 1999 Shepard Rd Web: www.drinkhighfive.com Fax: (952) 891-1560 Southern Wine and Spirits St. Paul, MN 55116 E-mail: [email protected] Contact: Chris Morton Phone: (651) 649-5800 / (800) 723-2424 Fax: (651) 649-5894 Locher Brothers, Inc. Web: www.smwe.com Address: 701 Industrial Blvd. NE, Suite B Contact: Tim “Jonesy” Hukriede Minneapolis, MN 55413 E-mail: [email protected] Web: www.johnsonbrothers.com Address: 18098 – 365th Avenue Trinchero Family Estates Phone: (612) 217-5197 P.O. Box 35 Contact: Terri Uitermarkt Fax: (612) 217-5196 Green Isle, MN 55338 Minnesota District Manager E-mail: [email protected] Pig’s Eye Brewing Company, LLC Phone: (507) 326-5471 Address: 14354 Heywood Ave. Contact: Jeff Crawford Fax: (507) 326-5487 Apple Valley, MN 55124 Stan Morgan & Associates Address: 10107 Bridgewater Parkway E-mail: [email protected] Phone: (952) 432-2661 Contact: Skip Troyak Woodbury, MN 55129-8587 Fax: (952) 432-2661 Address: 35 Water Street Phone: (651) 734-1661 Cell: (612) 281-4271 Excelsior, MN 55331 Fax: (651) 734-0171 Madison Bottling Co. E-mail: [email protected] Contact: Dave Bergerson E-mail: [email protected] Phone: (952) 474-5451 Address: RR2 Hwy 40 East Web: www.tfewines.com Cell: (952) 474-8253 Web: www.pigseyebeer.com Madison, Minn. 56256 E-mail: [email protected] Phone: (320) 598-7573 Web: www.stanmorganassoc.com Quality Wine & Spirits Fax: (320) 598-3738 Contact: Tom Morgal E-mail: [email protected] Gold Member Total Register Systems Address: 7900 Chicago Avenue South Web: www.madisonbottling.com Contact: Brian Anderson Bloomington, MN 55420 Pabst Brewing Company Address: 4215 Louisiana Avenue Phone: (952) 854-8600 Reco Store Equipment New Hope, MN 55428 Fax: (952) 851-0501 Contact: Peter Gelhar Contact: Jeff Van Schoick, (763) 537-1906 E-mail: [email protected] Address: 5552 Queen Ave Phone: Address: 1617 5th Street S. Minneapolis, MN 55410 Fax: (763) 537-1504 Web: qwsco.com Hopkins MN 55009 E-mail: [email protected] Phone: (952) 935-4330 Ext. 21 Phone: (612) 281-1859 www.trs-pos.com E-mail: [email protected] Web: Summit Brewing Fax: (935) 935-6875 Web: www.pabst.com Contact: Mark Stutrud E-mail: [email protected] U.S. Bank Government Banking Address: 910 Montreal Circle Web: www.recostoreequipment.com Contact: Jennifer Vucinovich St. Paul MN 55102 www.recoverysy.com Address: 101 East Fifth Street Phone: (651) 265-7800 Silver Plus St. Paul, MN 55101 Fax: (651) 265-7801 Sunny Hill Distributing Phone: (651) 466-8750 E-mail: [email protected] Contact: Mike Baron Fax: (651) 466-8910 Address: East Highway 169 American Beverage Marketers E-mail: [email protected] The Wine Company P.O. Box 333 Contact: Warren Westcoat Web: www.usbank.com Contact: Chris McDonnell Hibbing, MN 55746 Address: 6900 College Blvd. Suite 440 Address: 425 Minnehaha Avenue West Phone: (218) 263-6886 Overland Park, KS 66211 Vinocopia St. Paul, MN 55103 Fax: (218) 263-6111 Phone: (913) 451-8311 Contact: Marion Dauner Phone: (651) 487-1212 Fax: (913) 451-8655 Address: 6636 Cedar Avenue South #300 E-mail: [email protected] Cell: (816) 665-5521 The R & D Agency Minneapolis, MN 55423 Web: www.thewinecompany.net Contact: Don Dunn E-mail: [email protected] Phone: (612) 455-4000 Web: www.abmcoctails,com Address: 14480 Ewing Avenue S., Fax: (612) 455-4001 Suite 101 Cell: (612) 532-0406 Minneapolis, MN 55306 Bacardi USA E-mail: [email protected] Supporting Member (952) 882-8000 • 800-944-8004 Jeff Lange Phone: Contact: Web: www.vinocopia.com Fax: (952) 882-8004 Address: 22546 128th Avenue North : [email protected] Rogers, MN 55374 C & L Distributing E-mail Wells Fargo Insurance Services Contact: Tim Koltes Web: rdagency.com Phone: (763) 428-1048 Contact: Tony Baldwin Fax: (763) 428-1048 Address: 1020 Industrial Drive So. Address: 4300 MarketPointe Drive, Suite 600 Sauk Rapids, MN 56379 E-mail: [email protected] Bloomington MN 55435 Thorpe Distributing Company Web: www.bacardi.com Phone: (320) 251-7375 Contact: Jack Stevenson Phone: (952) 830-7353 Fax: (320) 259-7981 Address: P.O. Box 120 Fax: (952) 830-3048 E-mail: [email protected] Rogers, MN 55374 Brown-Forman E-mail: [email protected] 763-463-2000 Donald Friedrick Phone: Contact: Web: www.acordia.com Fax: 763-463-2001 Address: 850 Dixie Highway Cannon River Winery [email protected] Louisville, KY 40210 Contact: John Maloney E-mail: Web: www.thorpedistributing.com Phone: (612) 2219-7985 Wirtz Beverage Group Address: 421 Mill Street West Contact: Kevin Ryan Cannon Falls, MN 55009 E-mail: [email protected] Address: 489 N. Prior Avenue Web: www.www.brown-forman.com Phone: (507) 263-7400 Tushie Montgomery Architects St. Paul, MN 55104 Fax: (507) 263-8400 Contact: Gary Tushie Phone: (651) 646-7821 E-mail: [email protected] Address: 7645 Lyndale Ave. So., Suite 100 Cold Spring Brewing Fax: (651) 646-1497 Web: www.cannonriverwinery.com Minneapolis, MN 55423 Contact: Mike Feldhege Web: www.wirtzbeveragegroup.com/ (612) 861-9636 219 Red River Ave N Phone: Address: minnesota.asp Card Care Systems, Inc. Cell: (612) 861-9632 Cold Spring MN 56320 [email protected] (320) 266-5714 Contact: John Casey E-mail: Phone: Web: www.tmiarchitects.com E-mail: [email protected] W.J. Deutsch & Sons Wine Address: 2100 east Main Avenue Suite No. 1 Merchants West fargo, ND 58078 TKO Wines, Inc. E&J Gallo Winery Contact: Joe Mayne Mobile: (701) 338-0610 Contact: Tom Olson Contact: Casey Iaccino Address: 18998 Baldwin St. NW Mobile: (630) 432-5132 E-mail: [email protected] Address: 7600 W. 27th Street, B-10 Elk River, MN 55330 Website: www.fundsaccessinc.com St. Louis Park, MN 55426 Office: 612-354-7522 Phone: 763-241-7675 Email: [email protected] Phone: (612) 670-5736 Fax: 763-241-8842 Carlos Creek Winery Cell: (952) 681-7901 E-mail: [email protected] Contact: Tamara Bredeson E-mail: [email protected] Web: wjdeutsch.com Address: 6693 County Road 34 NW Alexandria,, MN 56308 Z Wines USA Phone: (320) 846-5443 Contact: Roy Goslin Fax: (320) 846-7191 Address: 17620 35th Avenue North E-mail: tami@carloscreek winery.com Plymouth, MN 55447 Web: www.carloscreekwinery.com Phone: (763) 745-0620 E-mail: [email protected] Web: www.zwinesusa.com Available locally through Johnson Brothers 1-800-723-2424 or 651-649-5860 G DUCIN INTRO UV CAKE

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©2011 UV Flavored Vodkas, 30% alc./vol. (60 proof), UV 103 Vodka, 51.5% alc./vol. (103 proof) and UV Vodka, 40% alc./vol. (80 proof). Produced and bottled by Phillips Products Company, Princeton, MN USA.