Chamber Staff Comings and Goings

The Indiana Chamber of Commerce is just a few years away from celebrating 100 years (the organization was founded in 1922). Over nearly a century, there have been countless staff changes and evolutions to help move the organization forward.

Janet Boston

Today, we say “thank you and farewell” to Janet Boston, who is retiring as executive director of the Indiana INTERNnet program, which is managed by the Indiana Chamber. Boston has been in the role for seven years and caps off an outstanding career in both the non-profit and for-profit sectors. Read more about Boston’s impact with the organization here. The Indiana Chamber and Indiana INTERNnet Board sent Boston out in style – with a luncheon and office celebration, and presented her with a custom necklace in appreciation of her taking the program to new heights.

Mark Lawrance, who has most recently been advocating in the economic development and technology areas, will replace Boston as interim executive director of Indiana INTERNnet, starting June 1. Lawrance will be retiring later this year and is expected to stay in the interim role until the fall.

Additionally, as previously announced, the Indiana Chamber has partnered with the Wellness Council of Indiana and Gov. Eric Holcomb’s administration to help combat the state’s opioid epidemic. The new Indiana Workforce Recovery initiative is a joint effort among the groups and is led by Jennifer Pferrer, executive director of the Wellness Council. The initiative provides employers with resources and guidance on how to help their employees who are impacted by the opioid epidemic. Allyson Blandford has come on board at the Wellness Council to support the initiative as project manager.

Also at the Wellness Council, Madie Newman has joined as program coordinator for the Indiana Healthy Communities initiative. The role has been created to support the organization in helping communities coordinate wellness efforts, ensuring healthier citizens and acting as a draw for economic development opportunities.

Abbi Espe rounds out our membership team. She was hired this spring as the manager of member services for northeastern Indiana and will focus on bringing new companies into the fold.

On the education front, the grant-funded college and career readiness position, held by Shelley Huffman, ends today. Lobbyist Caryl Auslander, who handled education and workforce matters, has left for new endeavors.

Greg Ellis, vice president of energy and environmental policy, is now responsible for federal lobbying. Members of the Indiana Chamber’s advocacy team are assuming Auslander and Lawrance’s other policy committee duties on a temporary basis until new staff is hired later this summer.

We wish everyone well and good luck in their future activities and look forward to the contributions of our new team members to continue the important work and mission of the Indiana Chamber of Commerce in “cultivating a world-class environment which provides economic opportunity and prosperity for the people of Indiana and their enterprises.”

For our complete staff listing, visit the web site at: https://www.indianachamber.com/about/staff-listing/

Federal Infrastructure Proposal Unveiled; What It Means for Indiana

On Monday, the Trump administration released its long anticipated $1.5 trillion plan for public works and infrastructure. The plan is based on $200 billion in direct federal spending to leverage $1.3 trillion in state, local and private infrastructure investment. (See https://www.whitehouse.gov/wpcontent/uploads/2018/02/INFRASTRUCTURE-211.pdf.)

With many of our nation’s roads, bridges, airports and other infrastructure in need of upgrading and building out for the future, this plan relies heavily on additional investment from the states and the private sector. The base of the plan has $100 billion in incentives in the form of grants to state and locals that includes $50 billion for rural projects, $30 billion for revolving federal credit and capital funds, as well as $20 billion for innovative projects that may not be ripe for private investment.

Indiana was one of several states that passed a bold, long-range infrastructure plan last year. (In fact, more than half of the states have raised their gas tax over the past five years.) So we should be well positioned to take advantage of this plan, as we have already taken the needed step to enhance our state and local road infrastructure funding.

Water infrastructure is a big issue for Indiana and this plan also proposes to leverage local investment with up to $40 in local and private money for every $1 in federal investment.

Additionally, the plan also proposes to cut federal permitting and approval times to two years, down from five to 10 years. This could be a big benefit for many projects.

Presently, this plan does not lay out specific funding for the proposal and puts that issue before Congress to solve. That could prove more difficult with concerns that the recently passed federal tax plan will raise the nation’s deficit. One option: the U.S. Chamber of Commerce recently proposed raising the federal gas tax, which has not been raised since 1993. No doubt, this will be a tough discussion in Congress.

There is usually an economic multiplier effect with infrastructure investment. America’s infrastructure is in dire need of modernization. Indiana has taken big steps to take care of its own and will hopefully benefit from this package. As details develop, we will continue to see how this plan evolves and impacts Indiana infrastructure.

Playing the Federal Numbers Game

government employeeQuestion: Exactly how many people work for the federal government? Answer: It depends.

A new study titled “The True Size of Government” puts the number at somewhere between seven and nine million. Here’s the breakdown:

  • 2 million employees
  • 3.7 million contractors
  • 1.6 million grant employees
  • 1.3 million active duty military
  • 500,000 Postal Service

Military members are not always included in such calculations. Same with the Postal Service, which does not receive congressional appropriations. The grantee and contract numbers are estimates from the Bureau of Economic Analysis

Study author Paul C. Light of New York University says an important takeaway is “the study reminds us that the nation depends on a very large blended workforce that includes many more contract and grant employees than federal civil servants. It is easy to say the civil service is too big, but it is only part of the workforce needed to faithfully execute the laws.

“The question is not whether we have too many government employees, but do we have the right blend to deliver the mission at the best price, value and performance. … This means we should be counting all the heads when we get into debates about cutting performances.”

That blended workforce actually dropped from 11.3 million to 9.1 million between 2010 and 2015, according to a separate study published by the Volcker Alliance.

Light doesn’t question the value of contract and grant workers. He does note that while cost savings are often cited for their increasing use, that is not always the case when “indirect costs such as supplies, equipment, materials and other costs of doing business enter the equation. Add overhead to the total and contract employees can cost twice as much as federal employees.”

Commentary and Background on the DACA Decision 

President Trump announced last week via U.S. Attorney General Jeff Sessions that he is ending the Deferred Action for Childhood Arrivals (DACA) program that President Obama instituted in 2012 by executive order. DACA allows for certain illegal immigrants who entered the country as minors to receive a renewable two-year period of deferred action from deportation and eligibility for a work permit.

Under this decision, the U.S. Department of Homeland Security will rescind the executive order that established DACA and not accept new program applicants. It puts 800,000 “dreamers” (including an estimated 10,000 Hoosiers) – children who arrived in the U.S. illegally with their parents at a young age – into legal limbo until it takes effect March 2018. This is an unfortunate turn of events for a demographic group where 90% are either in college or working.

As a result, 15 state attorneys general (all Democrats) filed suit this week to block the President’s plan to end DACA.

During the announcement, Sessions commented that actions under the Obama administration were unconstitutional and that the program should be enacted by Congress. Even Sen. Dianne Feinstein (D-CA) implied that President Obama’s executive order to protect young immigrants brought here as minors was on shaky legal ground and that is why Congress must act.

Over the next six months, President Trump is counting on Congress to do just that and essentially fix the DACA situation once and for all.

The Indiana Chamber believes lawmakers must address the issue as part of a larger immigration reform package, but it remains unclear whether both sides can compromise to reach a solution. Some are adamant that they will not accept any deal to fund even small amounts of a border wall or increased immigration enforcement, and cuts to legal immigration would be unacceptable. Other members of Congress are saying you need to pass this as part of border security, while a contingent believes you need to pass this on its own – which makes the possibility of its success very difficult.

On Wednesday, Sen. Tom Cotton (R-AR) said he was open to adding legal status for DACA recipients to his RAISE Act legislation – the goal of which is to build a skills-based immigration system similar to Canada or Australia while decreasing the amount of legal immigration overall.

Indiana’s senators Joe Donnelly and Todd Young reacted to the DACA news.
“Our country is still in need of reforms to fix our immigration system and strengthen border security, but in the interim we should pass bipartisan legislation to give these young people, who were brought here through no fault of their own, some stability and clarity,” Donnelly said.

“Upending existing protections for the nearly 10,000 young people in Indiana who have been here for most of their lives isn’t the path we should take.” Young stated: “I continue to believe we must secure our southern border and fix our broken immigration system. Irrespective of (the Trump) announcement, that requires a bipartisan solution in Congress that reforms our legal immigration system, prevents illegal immigration and addresses the question of what to do with undocumented men, women and children already here.”

BACKGROUND

So how did we get to this point with DACA and immigration? It’s been many years in the making. Attempts to address illegal immigrants who entered this country as minors date back to as early as 2001.

In 2007, the DREAM (Development, Relief and Education for Alien Minors) Act was introduced in the Senate. The Act allowed for a process by which qualifying alien minors would first be granted conditional residency. Eventually, by meeting further qualifications, permanent residency status could be obtained. It failed to be brought up in debate for lack of a filibuster-proof 60 votes. In 2009, it was reintroduced in both the Senate and House, and provided for qualifying immigrants who were between the ages of 12 and 35 at the time of enactment; who arrived in the U.S. before 16 years of age; resided continuously in the U.S. for five years; graduated from high school or obtained a GED; and were of good moral character. The bill continued debate into 2010 when the House passed a version, but the bill again failed to reach the 60-vote threshold in the Senate. Unsuccessful attempts were made in 2011 as well.

As a result of Congress’ inability to pass legislation, the Obama administration by executive order implemented the policy position of DACA in June 2012.
In 2013, the U.S. Senate’s “Gang of Eight” passed a comprehensive immigration reform bill in the Senate. In 2014, the House indicated it had the votes to pass the bill. However, when House Majority Leader Eric Cantor lost his primary election, House Speaker John Boehner announced that the House would not bring the bill to a vote. As a result, President Obama promised to fix the immigration system as much as possible on his own without Congress and attempted to expand DACA to include the parents (known as DAPA) of these minors. In a memorandum to ICE (U.S. Immigration and Customs Enforcement), aliens without criminal histories were to be made the lowest priority and that illegal immigrants who are the parents of U.S. citizens or lawful permanent residents were to be granted deferred action.

Subsequently, the Texas attorney general – joined by 25 other Republican-led states, including Indiana – sued in federal court in Texas to prevent implementation of the expansion. The case eventually worked its way to the U.S. Supreme Court and in June of 2016, a deadlocked 4-4 decision stated that: “The judgement is affirmed by an equally divided court.”  The ruling set no precedent and simply left in place the lower court’s preliminary injunction blocking the program.

Earlier this summer, on June 15, 2017, then Homeland Security Secretary John F. Kelly signed a memo rescinding DAPA. At that time, it was clarified that the memo did not include DACA and the Trump administration had not decided on whether it would keep that policy in place.

Which brings us to action last week on September 5. Attorney generals from nine states – led by Texas – notified the Justice Department that they would amend the current DAPA lawsuit to include DACA if executive action wasn’t taken by September 5 to phase it out, which prompted the announcement by U.S. Attorney General Jeff Session.

New Workplace State and Federal Posters: Order Yours Now

Poster_Subscript_serviceWe’re printing new state and federal workplace posters due to some material changes that have been made this year — including a new mandatory supplement for federal contractors to the “Equal Opportunity is the Law” posting that was released this week. Here are the recent updates (below), and you can order new sets online — or join our free subscription service to take the burden off of yourself when it comes to tracking changes:

  • Indiana Teen Worker Hours: The differentiation between “your work permit allows you to work” and “with parental permission you may work”; maximum hours; break requirements; graduates/withdrawn from school information.
  • OSHA Job Safety and Health: It’s the Law (updated in early 2015): The federal OSHA poster was given a new look. The changes were mostly visual, although two new bullet points were added, stating employers must: (1) Report to OSHA all work-related fatalities within eight hours, and all inpatient hospitalizations, amputations and losses of an eye within 24 hours; and (2) Provide required training to all workers in a language and vocabulary they can understand.
  • Supplement to “Equal Employment Opportunity is the Law” Poster for Federal Contractors: This supplement was released in September 2015 as part of the OFCCP’s final rule promoting pay transparency. It requires that federal contractors and subcontractors amend equal employment opportunity information to state that it is unlawful to discharge or otherwise discriminate against employees or applicants who inquire about, discuss or disclose their compensation or the compensation of other employees or applicants. It also contains information on federal contractors’ obligations regarding affirmative action and employing individuals with disabilities and veterans.

New NLRB Poster Requirement: Place Your Pre-orders Now

We want to let you know that on August 25, the National Labor Relations Board approved a new mandatory posting for private employers regarding the National Labor Relations Act.

You can pre-order new poster sets on our web site or call (800) 824-6885. Or better yet, join hundreds of Hoosier businesses by signing up for our poster subscription service. With this service, we’ll just send you new poster sets when MANDATORY changes are made. This gives you peace of mind of not having to track updates to keep your company in compliance. The service itself costs nothing extra; you just pay for the posters as you normally would. (Poster sets are $45 each and Indiana Chamber members receive 25% off.)

The new poster has not yet been released by the NLRB, but expect your new poster set(s) about two weeks after it is. (The new NLRB notice must be posted by November 14.)

NOTE: As this is an additional notice, our sets will likely once again include three sheets instead of two. This will not impact the cost on your end, however.

Digging Out of a Big Debt Hole

Just where do your tax dollars go in Washington? According to Congressional Budget Office figures for fiscal year 2010:

  • Health: 24%
  • Defense and Social Security: 20% each
  • Safety net programs: 14%
  • Interest on debt: 6%
  • Everything else: 16%

The troubling figure is the smallest percentage listed above. Within 10 years, interest payments will rise to 9% (barring a reveral of course) with $1 trillion being doled out and none of it going to debt principal. Based on current tax rates, nearly half of all income tax revenue would be needed just to pay the interest on the national debt.

That’s an Unhappy New Year thought. Washington lawmakers and bureaucrats are you listening: Act now to give all a fighting chance in the future.

New Posting Proposed, Would Be Mandatory

Though still in the comment period, it appears there could be a new mandatory federal posting looming. As always, you can trust the Indiana Chamber to keep you informed and to release new sets if this new posting is adopted. HRWatchdog posts:

The National Labor Relations Board (NLRB) proposed the new posting requirement in a Notice of Proposed Rulemaking submitted for publication in the December 22, 2010, Federal Register.

The new posting requirement would cover all employers subject to the National Labor Relations Act (NLRA), and would require posting of employees’ right to unionize under the NLRA. This posting would be mandatory in most all workplaces, regardless of whether union employees are present in the workplace. The posting requirement is similar to one that is now required for government contractors.

Employers may comment on the proposed rule during a 60-day comment period.

The new posting, as proposed, would include information on employees’ right to:

Organize a union;

  • Discuss terms and conditions of employment;
  • Take action to improve working conditions; and
  • Strike and picket. 

The posting would also have to include conduct prohibited by the NLRA, such as:

  • Prohibiting employees from soliciting for a union during non-work time;
  • Firing, demoting or transferring employees because of their support for a union; and
  • Threatening to close the workplace if employees unionize.

Finally, the new posting, as proposed, would require information on activities that the NLRA prohibits unions from undertaking:

  • Threatening loss of job unless the union is supported;
  • Refusing to process a grievance because of union criticism by an employee; and
  • Taking adverse action against an employee based on whether or not the employee has joined or supported a union.

Be sure to sign up for our poster subscription service so you never have to worry about tracking poster updates again. The service is free; you just pay for the posters.

Misleading Use of Social Media Could Warrant Federal Fines

Thinking of having your employees pose as customers and post positive reviews of your company online? You might want to think again, Shady McSketchball. The Federal Trade Commission now has precedent to drop the proverbial hammer on your business if you’re caught in such acts. The California Chamber’s HR Watchdog blog explains:

The New York Times recently reported that a California-based company settled charges with the (Federal) Trade Commission (FTC). The FTC alleged that the company engaged in deceptive marketing practices by encouraging its employees to post favorable reviews for its clients’ games on iTunes. The employees did not disclose that they were being paid to write favorable reviews.

Late in 2009, the FTC made changes to its Guides Concerning the Use of Endorsements and Testimonials in Advertising. The FTC’s guides address endorsements by consumers, experts, organizations and celebrities. The FTC said the revised Guides also add new requirements that mandate that “material connections” between advertisers and endorsers (sometimes payments or free products) must be disclosed because consumers would not expect these connections to exist.

These examples define what constitutes an endorsement when the message is conveyed by bloggers or other “word-of-mouth” marketers. The guides stipulate that the post of a blogger who receives cash or in-kind payment to review a product is considered an endorsement.

Inform your employees that they should not post testimonials or endorsements on social media Web sites about your company or any of its products or services without disclosing their relationship to your company.

Carter Discusses Small Businesses with SBDC

Indiana Chamber VP of Small Business & Economic Development Cam Carter discusses issues pressing Indiana small businesses in a recent interview with the Indiana Small Business Development Center. He talks about the Chamber’s key achievements and the status of current policies.