In brief: Court hears dispute over pay for security checks

WASHINGTON – Workers who fill customer orders for Internet retailer Amazon might be out of luck in their quest to be paid for time they spend going through security checkpoints each day.

Several Supreme Court justices expressed doubts Wednesday during arguments over whether federal law entitles workers to compensation for security measures to prevent employee theft.

The case is being watched closely by business groups concerned that employers could be liable for billions of dollars in retroactive pay for security check procedures that have become routine in retail and other industries.

The dispute involves two former workers at a Nevada warehouse who say their employer, Integrity Staffing Solutions Inc., made them wait up to 25 minutes in security lines at the end of every shift. Integrity provides staffers for Amazon warehouses.

Amazon spokeswoman Kelly Cheeseman says the company’s data shows that warehouse employees walk through security screenings “with little or no wait.”

A federal appeals court ruled last year that the workers deserved to be paid because the anti-theft screenings were necessary to the primary work performed by warehouse workers and it was done for the employer’s benefit.

Costco shows growth in e-commerce sales

Costco Wholesale has been a bit stodgy when it comes to the Internet – but its e-commerce sales boomed this year, helping it beat Wall Street expectations when it posted year-end results Wednesday.

Online sales represent only 3 percent of its $110.2 billion in sales for the fiscal year ended in August, or about $3.3 billion; Nordstrom, by comparison, relies on the web for more than 15 percent of its retail sales.

The pace of online growth surpassed that of Costco’s giant warehouse stores: Sales online rose 18 percent to 19 percent for both the fourth quarter and the fiscal year, versus 6 percent sales growth for the company as a whole.

Online sales are more lucrative, too, said Chief Financial Officer Richard Galanti in a conference call with investors. That boost helped pad Costco’s margins, leading to a surprise rise in earnings when most analysts expected the year to end on a down note.

Shares of Costco were up 2.69 percent at $128.64 near the end of regular trading Wednesday, as Costco posted net income of $697 million, or $1.58 per share, for its fourth fiscal quarter, versus $1.40 per share last year. For the year, net income rose to $2.06 billion, or $4.65 per share, up from $4.63 per share last year.

Annual sales rose to $110.21 billion, up 7 percent, also surpassing estimates of $105.16 billion.

Gap CEO Murphy to step down Feb. 1

NEW YORK – Gap said late Wednesday that Glenn Murphy will resign as its chairman and chief executive Feb. 1, and the retailer will promote its digital leader Art Peck to CEO.

The San Francisco company, which operates Gap, Old Navy and Banana Republic, said Wednesday that Murphy is resigning Feb. 2, the end of its current fiscal year. He has been Gap’s chairman and CEO since July 2007 and oversaw a turnaround that has lost steam in recent months.

Latest iPads expected at event next week

SAN FRANCISCO – Apple is expected to step up its efforts to boost recently slumping iPad sales with the unveiling of its latest tablet computer at an Oct. 16 event.

The showcase also is expected to feature an update to the operating system for its Mac computers and the possible release of a new digital payment service called Apple Pay.