Business Tip – May 2018

Worried about OSHA silica compliance? Not if you’re in one of these five states

by D.A. Duggar, John Martin | Ogletree, Deakins, Nash, Smoak & Stewart, P.C.

With the Occupational Safety and Health Administration’s (OSHA) silica standard already in effect for the construction industry and about to go into effect in June of 2018 for general industry, many employers are anxious about whether their programs will pass muster with federal and state OSHA officials. But if you’re in Maryland, worry not. Two years after then-Secretary of Labor Tom Perez heralded the issuance of a final rule on Occupational Exposure to Respirable Crystalline Silica at the International Union of Bricklayers and Allied Craftworkers’ John J. Flynn BAC/IMI International Training Center in Bowie, Maryland, the “Old Line State” has still not adopted a corresponding silica standard.

Section 18 of the Occupational Safety and Health Act (OSH Act) provides that states may choose to develop and enforce their own occupational safety and health standards. Localized oversight of workplace safety is permitted so long as the state occupational and safety health plan is “at least as effective in providing safe and healthful employment and places of employment” as the federal standards. Though state health and safety standards often simply emulate corresponding federal health and safety standards, states can seek to implement standards that are more stringent than their federal counterparts. California’s recently enacted Process Safety Management for Petroleum Refineries is one example of a more stringent state standard. But what happens when states fail to implement any corresponding health and safety standard?

Maryland’s decision

Not much, apparently. In the case of OSHA’s silica standard, the administration gave states six months from the March 25, 2016, issuance date to adopt their own respective silica standards. Noting the numerous delays announced by OSHA in the enforcement date of the construction silica standard, Maryland adopted a wait-and-see approach before taking any action. Maryland was also apparently awaiting a decision from the United States Court of Appeals for the D.C. Circuit on industry challenges to OSHA’s silica standard. The United States Court of Appeals for the D.C. Circuit issued a decision in December 2017 that rejected all industry challenges but remanded the standard back to OSHA for consideration of whether to include a medical removal provision, a challenge raised by labor unions. After OSHA complained to Maryland about the delay in implementing a silica standard, Maryland safety and health officials responded that the state agency was waiting on OSHA to issue an amended standard to include medical removal provisions.

Arizona, Hawaii, Utah, Wyoming also delay in adopting a corresponding standard

Maryland is not alone, either. Arizona, Hawaii, Utah, and Wyoming have also failed to adopt a corresponding standard. These states may lack the financial resources and manpower to develop and promulgate a corresponding safety standard on their own. If a lack of resources is a problem, however, the state could simply choose to enact a mirror image of the federal standard or promulgate a short 30-words-or-less regulation that adopts and incorporates OSHA’s silica standard. None have done so.

Until last month, Washington State had also neglected to adopt a silica standard. In Washington, the issue appeared to be a matter of priorities. Washington recently adopted its silica standard on March 23, 2018.

OSHA’s recourse

Theoretically, a failure of a state occupational safety and health plan can allow OSHA to exercise its authority under Section 18(f) of the OSH Act to rescind the state’s occupational safety and health plan and have the federal government take over enforcement of workplace safety laws and regulations. This is considered the “death penalty” option and is a time-consuming and litigious process. But OSHA may take a shot across Maryland’s bow and send the state a “show cause letter” asking why a proceeding to reconsider the state’s final approval status should not be commenced. That is what OSHA did with Arizona in 2014 when the state adopted different fall-protection requirements for residential construction.

Impact on employers

For employers that work within these five states – and only these five states – there is no silica standard with ancillary requirements such as exposure assessment, medical surveillance, and specific housekeeping measures. These five states still have older airborne contaminant requirements that cover silica, so employers should still ensure that their employees are protected from levels of respirable crystalline silica above the permissible exposure limit.

For employers that work in multiple states that include one or more of these five states and one or more of the remaining 45 states, the lack of silica standards in these five states can create confusion and complicate compliance efforts. Do you adopt a program where the company “turns off” its silica program in these five states? While this may ease compliance expenses in the short term, employers may not want to take this approach; crews could get confused and forget to “turn on” the program when they cross state lines. Such a program could also worsen employee morale. Employees would likely notice their employers easing up on silica compliance efforts in states where they don’t have to comply. Employers focused on long-term compliance may want to adopt a consistent silica program that treats compliance as applicable in all 50 states. Employees will likely appreciate the company’s position, and besides, the current “free ride” on silica offered by Arizona, Hawaii, Maryland, Utah, and Wyoming won’t last forever. In its existence, OSHA has never allowed a state plan to forego adopting a standard the agency deems essential to workplace safety.

Business Tip – March 2018

Tax reform: yes, it is a big deal

By Pat O’Connor, Kent and O’Connor, Washington, D.C.

Tax reform legislation raced through Congress at lightning speed. So quickly, in fact, analysts are still digesting its contents and assessing its impact. Critics say it favors the rich. Proponents promise it will unleash the American economy. Others worry about the long-term impact on the national debt. Yet, the truth is, nobody really knows for sure how this legislation will reshape the economy or our society at large.

From the perspective of corporate taxation, we can say for certain, passage of the Tax Cut and Jobs Act of 2017 is a big deal. For years, the United States has clung to an outdated 1986 era corporate tax code and a 1960s system of taxing “worldwide” income that most other countries abandoned long ago. At 35%, the U.S. corporate rate towered over other developed countries’ rates. In a global economy, where companies can choose where to produce and invest, these features pushed many companies and trillions of dollars overseas. Bold structural changes were needed. And, the new law does just that.

Already, as of mid-January, over 220 companies have responded, either by providing bonuses, wage increases, or both to employees. AT&T gave $1,000 bonuses to 200,000 hourly employees and announced they will boost capital spending in the U.S. by $1 billion in 2018. Starbucks employees received wage increases and expanded benefits. Some dismiss these gestures as little more than window dressing with no real impact. Yet, others see this as an early indicator of positive things to come as the consequences of tax reform work their way through the economy. (Ed. Note: Conversely, since the reform has been enacted, we’ve seen major retailers close hundreds of store locations, and lay off thousands of workers. Whether coincidental timing or deliberate scheduling, the effects on discretionary income are yet to be seen.)

The new 21% corporate tax rate and the switch to a territorial system of corporate taxation are key changes. But these are not the only ones. Other changes include:

100% Expensing: The bill provides a full and immediate write-off of most machinery and equipment purchased for use in a trade or business, including both new and used property.

Increased “Luxury” Auto Depreciation Limits: The bill increases limits on passenger vehicle depreciation – commonly referred to as the “luxury vehicle depreciation limit.” The limits are increased from $3,160 to $10,000 in the first year; from $5,100 to $16,000 in the second year; from $3,050 to $9,600 in the third year; and from $1,875 to $5,760 in the fourth and later years.

Limit on Interest Deduction: For companies with more than $25 million in gross receipts, the bill limits the deduction for corporate interest paid. The deduction cannot exceed the sum of i) business interest income plus ii) 30% of the adjusted taxable income of the corporation.

Entertainment Expenses: No deduction will be allowed for entertainment expenses, although the company can still deduct 50% of the cost of meals for employees on work travel.

Credit for Family and Medical Leave: In 2018 and 2019, employers can claim a tax credit of 12.5 to 25% for wages paid to employees while on paid family and medical leave.

A new deduction for pass-through entities

One of the most intriguing and complicated changes is the new tax benefit for “pass-through” entities, which includes S-corporations, partnerships, sole proprietors and most LLCs. The essence of the new Section 199A is a deduction of 20% of the entity’s Qualified Business Income (QBI). The potential tax savings is prompting many business owners to rethink their operation. Here’s how it works:

Let’s say Joe owns a tile installation business, called Tile LLC, where the income is taxed as a sole proprietor on Joe’s individual tax return. In 2018, Tile LLC has a profit of $250,000, which is reported on Joe’s Form 1040, Schedule C. Subject to certain income restrictions, Joe will receive a $50,000 deduction (20% of his Qualified Business Income) on his individual tax return!

However, the restrictions on the QBI deduction add a great deal of complexity:

First, there is an income threshold to consider. If Joe is married and files a joint tax return, he and his wife’s taxable income must be less than $315,000 to claim the full 20% QBI deduction (less than $157,500 for single taxpayers). For incomes over $315,000, a partial deduction is allowed for joint taxable incomes up to $415,000.

If the entity is a personal services business (accounting, legal, consulting, and any other trade or business where the reputation or skill of one or more of its employees is the reason for the revenue, except for engineering or architectural services), no QBI deduction is allowed for pass-through income if the individual taxpayer’s taxable income is greater than $415,000 for joint filers.

For entities that are NOT personal services corporations and the pass-through income exceeds the income threshold described above, a QBI deduction is available, but may be limited. In this circumstance, the QBI deduction is the lesser of 20% of QBI or 50% of the W-2 wages paid to all employees by the entity; or, alternatively, 25% of W-2 wages plus 2.5% of the original cost of tangible depreciable assets.

For Subchapter S corporations, the rules requiring employee/owners to be “reasonably compensated” still apply. So, if Tile LLC is a Subchapter-S corporation, Joe would pay himself a reasonable salary of, say, $70,000 and receive a W-2 for that amount, leaving a pass-through profit of $180,000. The 20% QBI deduction would be $36,000.

Generally, an estate or trust is also able to deduct up to 20% of business income from a pass-through entity.

Yes, it’s complicated. Tax planners are eager to see guidance from the IRS to provide more detail on how this provision will be implemented.

But with change comes opportunity. And the opportunities created by the Tax Cut and Jobs Act of 2017 are indeed significant. While no company should rush headlong into a major restructuring, every company should explore whether their current structure continues to make sense. Almost overnight, we find ourselves in a new environment. Navigating this changed landscape will take skill, and the guidance of a knowledgeable accountant, but it will be well worth the effort.

––––––––––––––––

Pat O’Connor is a principal in Kent & O’Connor, Incorporated, a Washington, D.C.-based government affairs firm. A veteran of Capitol Hill with particular expertise in health, transportation and the environment, O’Connor works with trade associations and companies to find workable solutions to the most pressing regulatory and legislative issues. For more information, visit www.kentoconnor.com or call 202-223-6222.

Be well prepared before making the leap from installing tile to teaching tile installation – Business Tip – February 2018

Recently, NTCA trainer/presenter Robb Roderick fielded a question from an installer who was inquiring about the best way to transition from installing tile to teaching or training others in tile installation. Robb’s experienced response follows:

Robb Roderick,
NTCA technical presenter/trainer

In response to your question of how to move from installing tile to teaching or training tile installation, I would give you two pieces of advice: increase your credentials, and increase your exposure. 

Increase your credentials

There are many ways you can increase your credentials. One way is to become certified as a Certified Tile Installer (CTI) with the Ceramic Tile Education Foundation. After successfully passing the CTI exam, I would suggest taking as many of the ACT (Advanced Certifications for Tile Installers) tests as possible. Complete the online NTCA University courses. Attend as many NTCA and or manufacturer workshops as possible. Investigate training and education offered by your local union hall. The Ceramic Tile Institute also has some training and programs that may
benefit you.

Increase your exposure

To increase your exposure, I would encourage you to attend trade shows, conventions and conferences and network with as many people as possible. A few to attend would be TISE West/Surfaces, Coverings, and Total Solutions Plus. Also getting involved with Facebook could help you to meet more people who may help you with your endeavor. I would suggest joining and being an active part of sites like NTCA Members Only, Tile Geeks, Global Tile Posse, Tile Love 2.0, etc.

The NTCA website (www.tile-assn.com) now has Career Center page, which includes both employers and job seekers. This is a place where you can create an account and post your resume, and search possible employment opportunities. Many manufacturers also have employment opportunities listed on their website.

It’s said that success is when preparation meets opportunity. Hopefully the information above will help you prepare for your opportunity.

Business Tip – January 2018

Cyber Insurance: can you afford to ignore it?

If you’re in business, here are five reasons why you really do need cyber insurance

By Marc Rosenkrantz, Schechner-Lifson Corporation

Think identity theft and cyber crime can’t happen to you? Think again. Read on for reasons cyber insurance protects you, your business and your customers.

1. Everyone has and uses a computer

Cyber insurance (also known as cyber liability insurance) was unheard of 15 years ago. Today, it’s as necessary as worker’s comp. If you lived in a flood plain would you not purchase flood insurance?

If you rely on a computer – in any way – to run your business, you need cyber insurance. Consider what would happen if your computer was hacked, and someone gained access to the private information of all of your customers, including their credit card details? Even if you do not do credit card transactions, your data is at risk.

The fallout could put any operation out of business, which is especially scary given hacking is a significant and real risk.

2. You don’t have an IT department or a risk management team

Big corporations can have whole departments dedicated to creating policies and action plans, which deal with potential risks, including cyber crime. If you’re a small or even a medium-sized business, chances are you don’t have a risk management team.

A good cyber insurance policy bridges the gap for businesses that don’t have the luxury of a risk management team. Many carriers offer preventive guidelines and services that will help reduce the chance of a cyber attack. In addition, they will be there to provide the necessary people and specialists and more importantly supply the funds should you have a breach.

3. Your general liability policy will not cover cyber crime

Most general liability policies do not include losses incurred due to the Internet. A comprehensive cyber insurance policy fills this important gap.

You might be wondering why a general liability policy doesn’t cover you for cyber-related injury. A general liability policy covers your legal liability for 3rd party property damage and personal injury. This means someone needs to be identified as responsible for the loss, and some physical damage needs to occur.

As electronic data is not considered to be “physical property”, it cannot be physically damaged. Cyber insurance offers tailored coverage for your business for 1st party and 3rd party losses, breaches to the Privacy Act and loss of profits following the insured event.

4. You may be responsible for data, even if you use a 3rd party cloud provider

If you have information stored on a cloud database, you may be surprised to know that in many cases, you are still legally responsible for how this information is handled.  Your 3rd party vendor has very little protection for you, and at the end of the day it is your responsibility to get a problem fixed and pay for the damages.

This is why it is important to read the fine print of your cloud hosting contracts. If you do find that your cloud provider is not responsible for mistakes or breaches to your data, at least you are protected.

5. It’s affordable

Securing a cyber liability policy doesn’t have to break your budget. With the right broker, such as NTCA Affiliate Member Schechner Lifson Corp., and partner insurers, you can secure affordable coverage that will provide the level of protection that is needed in today’s fast-paced world.

In fact, Schechner Lifson Corp., has been helping NTCA members for years for cyber security issues and a range of other business-related issues as well. For instance, Marci Miller of Infinity Floors recently praised the work of this company and its staff:

“I have been a member of NTCA for several years,” Miller said. “We take advantage of our annual rebates, we learn from the newsletters and TileLetter, on a few occasions we have even called and spoken with someone for technical support regarding installation.

“Recently we experienced the most valuable benefit of all. We were having a terrible issue with our workman’s comp – that is a problem that can cripple any tile contractor,” she added. “We had a broker who was completely useless and refused to help. I contacted NTCA to see if there was a comp policy or agency available to members. I was given the name of Schechner Lifson Corp. I called and was put in contact with Roseanne Gedman. We stayed with the same insurer, but had Schechner Lifson become our broker. Roseanne has worked with me and has been amazing! They are extremely professional and understand the market and the client’s needs. I highly recommend them to all NTCA
members.”

Schechner Lifson Corporation is a large regional insurance and financial company, based in New Jersey. Its mission is to provide superior insurance and financial services to customers through a diverse, highly creative and intellectual staff of over 40 associates who have the unique capacity to deliver a total insurance and investment program to customers. As both broker and agent, Schechner Lifson Corporation writes all forms of property and casualty coverage, life and group insurance, supplemental compensation plans, business continuation programs and qualified plans. For more information, contact Marc Rosenkrantz, CRM, CIC, AAI, President, Schechner Lifson Corporation, (w) 908-598-7813, (c) 973-766-3914 or email
[email protected]

Business Tip – December 2017

Using magic words: understand Pay-If-Paid vs. Pay-When-Paid clauses in construction agreements

By Daniel A. Dorfman,
HARRIS • WINICK • HARRIS LLP

There are countless ways for a construction project to go awry. The first claims that come to mind are those based on delays or defective workmanship, but perhaps even more common are the potential claims that arise when a general contractor does not receive payment from the owner, but remains potentially liable to its subcontractors for work performed. Like most construction disputes, the answer to the question of whether or when a general contractor is liable for payment to its subcontractors starts (and often ends) with the language of the contract.

Case study

Beal Bank Nevada v. Northshore Center THC, 64 N.E.3d. 201, 407 Ill. Dec. 823 (1st Dist. 2016) is a recent case from the Appellate Court of Illinois (First District) discussing this issue, and providing guidance to understanding payment risks in a construction agreement in the context of pay-when-paid vs. pay-if-paid clauses.

The facts of the Northshore Center are simple. Northshore Center THC, LLC (“Owner”) borrowed funds from BankFirst to develop real estate in Northbrook, Illinois. The Owner entered into an agreement with a General Contractor, FCL Investors, Inc. (“General Contractor”), to perform certain construction work at the Northbrook site. The General Contractor then entered into a subcontract with Lake County Grading Company, LLC (“Subcontractor”) to provide excavation work, sewer line installation, and other construction services. The Subcontractor performed its work and issued several invoices to the General Contractor, which the General Contractor submitted to the Owner. The Owner failed to pay the General Contractor, who in turn didn’t pay the Subcontractor.

When the parties were unable to resolve their differences, a lawsuit ensued. The main issue between the General Contractor and the Subcontractor concerned whether the subcontract required the General Contractor to pay the Subcontractor’s invoices even though it was undisputed that the Owner had not yet paid the General Contractor. The relevant portions of payment clause in the subcontract provided that:

The Contractor will make partial payments to the Subcontractor in an amount equal to 90 percent of the estimated value of work and materials incorporated in the construction and an amount equal to 90 percent of the materials delivered to and suitably and properly stored by the Subcontractor at the Project site, to the extent of Subcontractor’s interest in the amounts allowed thereon and paid to Contractor by the Owner, less the aggregate of previous payments, within five (5) days of receipt thereof from the Owner.

The trial court reviewed this payment clause and ruled that payment by the Owner was a condition precedent to the General Contractor’s obligation to pay its Subcontractor:

[T]he provisions outlined in the subcontract at issue clearly make the receipt of payment from the Owner to [the General Contractor] the condition precedent to the [Subcontractor’s] payment. The condition precedent has not been satisfied as [the General Contractor] has not received payment from Owner.

Therefore, because the Owner had not paid the General Contractor, the trial court determined that the General Contractor could not have breached the subcontract by failing to pay the Subcontractor.

The Subcontractor appealed. The Appellate Court reversed the trial court and found that the payment clause in the subcontract did not contain a condition precedent requiring the General Contractor to be first paid by Owner. Instead, the Appellate Court ruled that the payment clause in the subcontract governed only the amount and timing of payments, not the threshold obligation of the General Contractor to compensate the Subcontractor (even if the General Contractor had not been paid by the Owner).

In so holding, The Appellate Court applied the following “useful framework” for distinguishing between pay-if-paid clauses and pay-when-paid clauses in construction agreements:

A pay-when-paid clause governs the timing of a contractor’s payment obligation to the subcontractor, usually by indicating that the subcontractor will be paid within some fixed time period after the contractor itself is paid by the property owner…. In contrast, a pay-if-paid clause provides that the subcontractor will be paid only if the contractor is paid and thus ensures that each contracting party bears the risk of loss only for its own work.

Applying that framework, the Appellate Court determined that the contractual provision in the subcontract was a pay-when-paid clause, which governed only the timing of payment, and not a pay-if-paid clause, which would have governed the General Contractor’s obligation to pay. In other words, in this case, the Court concluded that there was no condition precedent to payment; the General Contractor had to pay the Subcontractor whether or not the Owner had paid.

Lessons learned 

Northshore Center is an illustrative case study on the importance of payment provisions in construction agreements being drafted so that they are particularly clear and unambiguous with respect to their pay-if-paid intentions. In our experience, many subcontract agreements in Illinois have payment provisions that do not sufficiently identify that payment by the owner is a condition precedent. As demonstrated by Northshore Center, even language as clear as “to the extent” is inadequate. Without the “magic word,” i.e. “if,” that makes it clear that the general contractor’s payment obligation to its subcontractor exists only “if” payment is made by the owner to the general contractor, the general contractor will likely bear the risk of payment even where the owner doesn’t pay the general contractor. The first and best protection against such unnecessary payment risk is a well-written contract. Pay-if-paid clauses offer greater protection to general contractors and should be a consideration on all sides during the drafting process.

A copy of Beal Bank Nevada v. Northshore Center THC, 64 N.E.3d 201, 407 Ill. Dec. 823 (1st Dist. 2016) is available here at http://bit.ly/2pDSg8w.

Contact 

If you have any questions about this HWH Legal Alert, please feel free to directly contact Daniel Dorfman at (312) 662-4609 ([email protected]). This legal alert is provided by Harris Winick Harris LLP for educational and informational purposes only and is not intended, and should not be construed, as legal advice.

Daniel Dorfman is a construction lawyer in Chicago, Illinois, with the law firm of Harris Winick Harris LLP. Daniel has a national construction practice, representing owners, developers, engineers, architects, designers, general contractors, subcontractors, specialty trades, and construction suppliers in all types of commercial construction disputes. Daniel is licensed to practice in the State of Illinois, United States District Court for the Northern District of Illinois, and the United States Court of Appeals for the Seventh Circuit. Daniel received his J.D., cum laude, from Northwestern University School of Law.

Business Tip – November 2017

Many private business owners elect to incorporate, turning their companies into C corporations. But, at some point, you may consider converting to an S corporation. This isn’t necessarily a bad idea, but it’s important to know the ramifications involved.

Similarities and differences

S and C corporations use many of the same recordkeeping practices. Both types of entities maintain books, records and bank accounts separate from those of their owners. They also follow state rules regarding annual directors’ meetings, fees and administrative filings. And both must pay and withhold payroll taxes for working owners who are active in the business.

There are, however, a few important distinctions. First, S corporations don’t incur corporate-level tax, so they don’t report federal (and possibly state) income tax expenses on their income statements. Also, S corporations generally don’t report prepaid income taxes, income taxes payable, or deferred income tax assets and liabilities on their balance sheets.

As an S corporation owner, you’d pay tax at the personal level on your share of the corporation’s income and gains. The combined personal tax obligations of S corporation owners can be significant at higher income levels.

Dividends vs. distributions

Other financial reporting differences between a C corporation and S corporation are more subtle. For instance, when C corporations pay dividends, they’re taxed twice: They pay tax at the corporate level when the company files its annual tax return, and the individual owners pay again when dividends and liquidation proceeds are taxed at the personal level.

When S corporations pay distributions – the name for dividends paid by S corporations – the payout generally isn’t subject to personal-level tax as long as the shares have positive tax “basis.” (S corporation basis is typically a function of capital contributions, earnings and distributions.)

Risk of tax audits 

C corporations may be tempted to pay owners deductible above-market salaries to get cash out of the business and avoid the double taxation that comes with dividends. Conversely, S corporation owners may try to maximize tax-free distributions and pay owners below-market salaries to minimize payroll taxes.

The IRS is on the lookout for both scenarios. Corporations that compensate owners too much or too little may find themselves under audit. Regardless of entity type, an owner’s compensation should always be commensurate with his or her skills, experience and business involvement.

The right decision

For businesses that qualify (see sidebar), an S corporation conversion may be a wise move. But, as noted, there are rules and risks to consider. Also, as of this writing, there are tax reform proposals under consideration in Washington that could affect the impact of a conversion.

CTDA helps you succeed in your business through a variety of programs and services that include educational opportunities, webinars, and discounts on shipping, client collection services, telephone charges, auto rentals, and more. CTDA offers networking and relationship-building opportunities through participation in Total Solutions Plus all-industry conference and Coverings annual trade show. Membership in CTDA also increases your national exposure and gives you access to the annual membership survey, a valuable resource to evaluate your company in terms of profit improvement, employee compensation, distribution and company performance. The CTDA website, CTDA Educational Opportunities, Weekly Newsletters and TileDealer Blog are all free resources that will “keep you in the loop” as well. CTDA is always looking for ways to improve the benefits of membership. To learn more about membership, please contact [email protected] or 630-545-9415 visit the website at www.ctdahome.org. Like CTDA on Facebook and Twitter @Ceramic Tile Distributors Association (CTDA). 

OCTOBER 2017: BUSINESS TIP – NTCA launches new Career Center

Sponsored By:

NTCA has added an updated, high-powered Career Center to its list of member benefi ts that allows you to bypass extraneous listings you’ll find on commercial job boards. The NCTA Career Center is tailored specifically for you. There are opportunities for both job seekers and employers. Job seekers can manage their job search, access job postings, post a resume, or join the job alert system. Employers can quickly post job openings, manage online recruiting efforts, advance resume searching, or reach targeted qualified applicants.

Job Seekers

The Career Center is designed to provide you with a better overall experience through a modern design and an intuitive interface. You will be able to access the Career Center through any device of your choice- smartphone, tablet, or desktop. Job seekers Once you create an account you can start and track your search. There’s an ability to manage resumes and set job alerts.

And the services to job seekers are free! In the Find a Job section, there is a listing of hand-picked employment opportunities culled from the web. Next to this listing is a link that enables you to upload your resume, and allow employers to find you! You can tailor your job search by state or do a nationwide search for the type of position you seek, and return 10-100 results at a time. In the Resources section, there is a collection of articles that will help you with a range of job related activities, like honing your resume, preparing for an interview and even planning a career change or using digital tools to network and gain exposure.

You can also schedule a session with a career expert who can coach you and answer your questions in one business day.

Employers
There are a number of recruitment options available for employers, starting from a single,
30-day job posting, and a number of enhanced packages. Search for
resumes, keep track of candidates, post information about your company, and much more. A template tab allows you to store letters, job posting templates and templates for questions you want to ask someone considering a career with your company.
Development of this iteration of the Career Center is in direct
response to NTCA member feedback. “One of the most consistent messages we have heard from our members recently is that the tile industry offers numerous career paths,” said Bart Bettiga, executive director. “From sales and installation, to training and technical assistance, to business and project management; there are so many great jobs for people who commit to learning about tile and stone.

We at the NTCA are excited to offer an easy-to-use program that will allow for people to post their resume to explore their options at furthering their career. As more and more people do this, we will be able to help connect companies looking for qualified people in the tile and stone industry to these candidates.”
Access the Career Center on the home page of the NTCA website at www.tile-assn.com or
paste either of these links in your browser: http://bit.ly/2yENKhA or http://careerwebsite.com.

Business Tip – June 2017

Is your employee handbook up to snuff?

By Bob Scavone, Labor and Employment attorney, Jackson Lewis P.C.

“Do you have an employee handbook?” No matter the size of the business, or type of industry, this is one of the first questions I ask employers when speaking with them about their business practices and how they can lower the risk of liabilities. Having a handbook and providing employees copies, however, may not be enough to protect your business from legal liability or other unintended consequences. Lawsuits and agency claims, employee turnover, and poor public relations are a few examples of the unintended consequences that can result from outdated or unlawful handbook provisions, or ones that are misinterpreted or inconsistently administered by managers and supervisors.

To reduce your exposure, your employee handbook must be

1) Comprehensive

2) Tailored to your specific business and industry

3) Regularly reviewed and updated, and

4) Compliant with federal, state, and local laws and regulations.

Liability and an incomplete employee handbook

Why are employee handbooks important? First, handbooks set employer expectations and employee responsibilities. For example, your handbook should explain that the company expects its business practices and internal communications to be kept confidential and outline the consequences for breaching confidentiality. Similarly, your handbook should outline what constitutes prohibited conduct and establish consistent guidelines for disciplining those who violate company policy. Absent such guidelines, your company may be open to legal claims based on arbitrary or inconsistent discipline.

Second, a properly-designed handbook can protect your business against legal liability. For example, handbooks that do not include comprehensive anti-harassment and anti-discrimination policies can expose employers to charges of harassment and discrimination. Your handbook should include policies that prohibit unlawful employment practices and explain to employees what to do if they are harassed or discriminated against and how to report such conduct. Ensuring your employees sign an acknowledgement form when they receive the handbook and any updates can significantly improve your chances of avoiding liability.

A comprehensive, carefully-developed employee handbook can be a valuable resource, providing important information about an organization’s history, mission, values, and culture, as well policies, procedures, and benefits. Consulting with an employment attorney is the best way to make sure you are covering all of the bases.

Company- and industry-specific

No two companies are the same, even in the same industry. The employer who uses cookie-cutter or off-the-shelf handbook templates to craft a handbook takes an unnecessary risk. First, templates rarely cover all of the topics that may be important to your business and typically do not address specific state laws and regulations. For example, many states have recently passed laws regulating whether (and under what circumstances) employees may store firearms in vehicles parked on company property. Even if an off-the-shelf handbook covers this issue, it likely will not cover the law specific to your state (or states, if your business operates in more than one). Moreover, a generic handbook may contain policies that are inconsistent with your company’s practices or customs.

Review. Update. Repeat.

Federal, state, and local labor and employment laws are changing constantly. For example, state and federal anti-discrimination laws are in flux with regard to whether discrimination based on sexual orientation is unlawful. Conduct that may not have been illegal when your handbook was issued may now be prohibited. With the assistance of employment counsel, your human resources professionals should monitor changes in the law and update your company’s policies regularly.

In addition to changes in the law, your handbook should keep up with changes in your company’s policies and practices. For example, your handbook should reflect changes in your IT policies or vacation matrix on a timely basis. Your employees must have access to the current policies to reduce your company’s exposure to liability.

“An ounce of prevention is worth a pound of cure.” 

Benjamin Franklin’s famous quote is particularly relevant to employee handbooks. Let me be blunt: each of your employees is a potential plaintiff (or cause of litigation). Making sure you have a comprehensive, tailored, up-to-date handbook could save you a substantial amount of time, money, and grief. If you do not have an employee handbook, I strongly recommend that you get one. If you have one, check when it was last updated. If it has been more than a year since its last update, it is time to get your employee handbook up to snuff.

Robert Scavone Jr. is an attorney at Jackson Lewis P.C., which represents management exclusively in workplace law and related litigation. Its attorneys are available to assist employers in their compliance efforts and to represent employers in matters before state and federal courts and administrative agencies. Prior to becoming an attorney, Robert was an executive with one of the nation’s largest commercial flooring contractors and a member of the NTCA’s Board of Directors and Technical Committee. He works out of the firm’s Miami office and can be reached at 305-577-7619 or [email protected]

This article is provided for informational purposes only. It is not intended as legal advice nor does it create an attorney/client relationship between Jackson Lewis P.C. and any readers or recipients. Readers should consult counsel of their own choosing to discuss how these matters relate to their individual circumstances. Reproduction in whole or in part is prohibited without the express written consent of Jackson Lewis P.C.

 

Business Tip – May 2017

NC changes tax requirements on installation labor

 

Labor may now be subject to state sales tax

By Paige W. Smith, Neuse Tile Service, NTCA Region 3 Director

This is an important development in tax laws that affect contractors that is taking place in North Carolina. Important in its own right, it holds even broader importance when one considers that once a single state passes this sort of law, other states will likely consider it or follow suit. Tile contractors should check with their tax accountants about any changes or revisions to laws in their own state related to sales and use tax. Forewarned is forearmed. – Ed.

Tile installation contractors who work in North Carolina should be aware that some of their labor may now be subject to state sales tax. Previous legislative changes had only applied to installers who were also retailers, but, on Jan. 1 of this year a new state law was enacted which requires the application of sales and use tax to all “real property contracts.”

The N.C. legislature has come up with its own statutory definitions of “real property,” “real property contract,” and “capital improvement” as well as a new tax form, E-595E. Tile contractors will most likely fall under the classification of “specialty contractor.” There have been several attempts to clarify which types of work are considered repair/ replacement/ reconstruction/ vs. remodeling, but the distinctions remain open to some interpretation.

The N.C. Department of Revenue Directive issued 11/15/2016 included 15 pages of definitions and “clarifications,” and on 3/17/2017 another 12-page Notice of “Additional Information” was issued. Accountants in the state have issued differing opinions on which aspects of tile work will be taxable, and contractors will definitely want to get in touch with their own tax advisor.

The new law is very confusing as evidenced by the continued “clarifications.” I’ve been to quite a few seminars on how we should interpret the new statute, and each time the answers seem to be slightly different.

Sales tax on repair work

Generally, for any repair work or replacement of existing tile, contractors should now be charging  — and paying to the state — sales tax on the total invoice amount (both material and labor). The sales tax is based on the rate for the county where the work is done. Most installers will want to become “tax exempt” for their purchases so that some material tax will be paid in as “use tax” and some as “sales tax.” It has been explained that those who work exclusively for general contractors will usually be exempt from the new tax on labor IF the tile installer gets the general contractor to complete the “blanket use” portion of the new tax form.

Repairs or replacements in which the tile contractor is including the work of other trade specialists (i.e. a plumber & glass door company) are not so clearly delineated as to whether they are “repairs” or “capital improvements” under the legislation’s definitions. I went to a forum in which even the head of the N.C. Sales and Use Tax Division said he was still trying to figure out how to answer many of the construction industry’s questions.

For now, contractors should be sure to speak with their local tax advisor, set up a system for tracking county tax rates, and charge sales tax on their work when required. The link to the N.C. Department of Revenue’s March notice can be found at www.DORNC.com/taxes/sales/realpropertycontractors

 

Business Tip – April 2017

Your journey to emotional ownership

by Ed Rigsbee

Pain and pleasure are such close cousins.  In life, it’s painful not to experience pleasure.  Too often though, it’s the holding on for dear life to familiar pain that keeps us from having what we say we really want.

In 1988 I joined the National Speakers Association, a trade group for professional speakers.  No, I wasn’t a speaker yet, but I wanted to be.  I had closed down my manufacturers’ representative company to accept a position of vice president for my principal manufacturer. Two years later, I found myself without a job.  It was now time to fish or cut bait.  Was I going to pick up another line and go to war with the manufacturer that fired me or was I going after my dream?  I went after my dream.  A decade later, I’m a nationally recognized keynoter on business alliances.

This experience, for all of the pain and pleasure, has yielded a path, my path to emotional ownership.  Since discovering this path, I have interviewed several business leaders and found that my path was also theirs.

Whatever pleasure you seek; there is usually pain in the way of having that pleasure.  I believe this path is also your path to the emotional ownership, of staying the course to having what you want in your life, both personal and professional.

In your personal and professional life you continually have challenges.  Challenges without solutions or answers generally cause extreme pain.  To solve or remove this pain, you must either move into action or simply do nothing and hide out.  Action means possibilities. Doing nothing is a formula for failure.  Doing what you have always done and expecting different results is called experiencing insanity. Nobody intentionally wants to be insane.  You will succeed at what you want through understanding and remaining on your path.

What is your challenge?  What would you like to do you are currently not doing?  What major decision would you like to make?  Your first step will be to think up ideas on how to deal with your challenge.

1. Idea:

Some ideas are gold and some are worthless. You must constantly seek possibilities to your challenges.  Earl Nightingale would sit with a yellow pad thinking of solutions to his day’s challenges every morning before the rest of his family awoke. Dr. Robert Schuller’s idea of possibility thinking is to list no less than 20 ways to solve your challenge.  His 20th is how he started the church that is known today as the Crystal Cathedral.

2. Excitement:

When an idea crystallizes, excitement sets in. Your view of the challenge is like a world of possibilities.  All is right as you are moving closer to dealing with your pain.

3. Hope:

Hope is the apex.  Hope without how will get you nowhere.  From this pinnacle the slow degrade begins.  As the reality of the challenge sets in doubt begins.  Unfortunately, at this point, hope turns into nope!

4. Reality:

When the reality of the steps, work and pitfalls involved in creating a solution set in, a feeling of hopelessness is not far behind.

5. Desperation:

Many people are living lives of quiet desperation.  Even people who are moderately successful find it difficult to make a new decision that would position them for greatness.  When the pain is at a level so high that anything else must be better, the point of decision is near. This is where tension can help you to mobilize, but too much tension can immobilize you.

6. Purpose:

Clarity of purpose allows you to see and understand the value of your struggle.  You must know you are playing in the right sandbox and for the right reason.  Now comes the promise of success.  Through example or belief, you now know success is possible and you can make a decision to go for the success.  If you are off purpose, are settling for less or see your world from the window of scarcity, you might make the decision of indecision and only move toward failure.

7. Decision:

The decision to move forward or to make no decision, the choice is yours. Knowing what to hold on to and what to discard is crucial to your well being.  This is where your emotional ownership comes alive.  No decision, no ownership and a continual decline.  Yet, with a new decision, all becomes possible.  Look for your emotional strength and security rather than comparing your self to what is not real. Be cautious of not falling into the impostor syndrome, thinking that you are not really good enough.  Look for your moments of decision. A friend quit drinking, and I ask him about his moment of decision.  He told me that it was one night while he was hanging out his second-story bathroom window, about to fall out and in a drunken stupor and realizing that he should change his life.  He said that he knew if he didn’t make some changes soon, he would no longer have a life.

8. Paying the price and taking risk:

This is the truth detector.   This is the point on your journey where you must internalize the intellectual ownership of your decision.  You must be willing to pay the prices.  Nothing good is free.  Having a track record of previous success and concrete examples of other successful person’s journeys will help.  It’s now time to stick your neck out!

9. Getting help:

Relationship building at its finest.  Nobody goes it alone.  Every successful person seeks help.  You may end up with some unlikely partners; especially people that can help you connect with your inner strength.  Receiving help connects you back to all your previous steps.  Also, you must accept help in anchoring back to your moment of decision.

10.  Accepting success:

Self-confidence and self-worth go hand in hand.  Accepting that you are worthy of success is key. When you have completed your journey to Emotional Ownership, you do it all over, repeatedly.  Additionally, you must realize that you are currently at different steps in different aspects of your personal and professional life.

Every day you are starting another journey in a different area of your life; personal and professional. Your journey always comes full circle; you can never just sit back because another phase of your total life journey is about to start. Enjoy your journey.

Ed Rigsbee is the consummate evangelist for member recruitment and strategic alliance success. He holds the Certified Association Executive (CAE) and Certified Speaking Professional (CSP) accreditation. Ed is the author of The ROI of Membership-Today’s Missing Link for Explosive Growth, PartnerShift, Developing Strategic Alliances, and The Art of Partnering. To his credit, he has over 2,500 articles in print and countless articles electronically published.
Ed is the Founder and CEO of the 501(c)(3) non-profit public charity, Cigar PEG Philanthropy through Fun, and president at Rigsbee Research which conducts qualitative member ROI research and consulting for associations and societies. He has been called “the dynamite that broke up our log jam” by association executives—rarely politically correct and almost always provocative—and from a dozen years as a United States Soccer Federation referee, Ed calls it the way he sees it. Exceptional resources at www.rigsbee.com.

1 2 3 6