Business Magazine - March 2019

Mar c h201 9

Remember... Turn your clocks ahead one hour on Sunday, March 10 at 2 a.m.

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BUSINESS

VOL. XXXII NO. 3 | MARCH 2019

MAGAZINE

MARQUETTE SAVINGS BANK BUSINESS BANKING TEAM COMMITTED TO LOCAL COMMUNITY, LOCAL SUCCESS

SPOTLIGHT Q&A:

TAX TIPS FOR 2019 — AND BEYOND

WHAT’S NEW:

SMC BUSINESS COUNCILS JOINS MANUFACTURER & BUSINESS ASSOCIATION

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www.mcpc.com/fortress

FEATURES FEATURE STORY | WHAT’S NEW

3

MBA Merger Announced SMC Business Councils joins Manufacturer & Business Association.

COVER STORY | LOCAL PROFILE

4

Marquette Savings Bank Learn how the Marquette Business Banking team’s commitment to the success of local businesses extends to the communities it serves.

SPOTLIGHT Q&A | ACCOUNTING

9

DEPARTMENTS

SPECIAL SECTION

12

BUSINESS BUZZ

EVENTS & EXTRAS

13

PEOPLE BUZZ

WHAT’S HAPPENING

21

EDITORIAL

NETWORKING AND MORE

LEGAL BRIEF | FINANCE

AWARDS AND PROMOTIONS

17

HR CONNECTION

18

LEGAL Q&A

WORKPLACE TRENDS

11

READ ON THE GO! For the most current Business Magazine updates, visit mbabizmag.com

Feature Photography Engle O’Neill Marquette Savings Bank

Contributing Writers Jay Alberstadt Jenna Bickford Jon DeArment

Additional Photography Casey Naylon iStock Photography Design, Production & Printing Printing Concepts Inc. printcon@erie.net

Did tax reform kill tax-exempt financing for your favorite charity?

Jay Alberstadt and Jenna Bickford

ON THE HILL | TAX REFORM

15

GET ANSWERS

Executive Editor Karen Torres ktorres@mbausa.org

Jeff Beach, a partner at BKD CPAs & Advisors in Erie, Pennsylvania, talks about the accounting industry, the present tax season and recent tax law changes that could impact your bottom line.

Advertising Sales Frank Mehler 814/833-3200 fmehler@mbausa.org

Why the Tax Cuts and Jobs Act is a model that Pennsylvania should follow to spur economic growth.

Jon DeArment

TRAINING CATALOG| INSERT

David Thornburg 814/833-3200 dthornburg@mbausa.org

Learn about the upcoming professional development training courses available at the Manufacturer & Business Association.

On the Cover: Marquette’s Business Banking team is making a difference in the community and for local business owners. See page 4 for full story.

Mission Statement: The Manufacturer & Business

Association is dedicated to providing information and services to its members that will assist them in the pursuit of their business and community interests. – Board of Governors

Manufacturer & Business Association 2171 West 38th Street | Erie, Pa. 16508 814/833-3200 or 800/815-2660 www.mbausa.org

© Copyright 2019 by the Manufacturer & Business Association. All rights reserved. Reproduction or use of editorial, pictorial or advertisements created for use in the Business Magazine, in any manner, without written permission from the publisher, is prohibited. Unsolicited manuscripts cannot be returned unless accompanied by a properly addressed envelope bearing sufficient postage. The magazine accepts no responsibility for unsolicited manuscripts or artwork. The Business Magazine and Manufacturer & Business Association do not specifically endorse any of the products or practices described in the magazine. The Business Magazine is published monthly by the Manufacturer & Business Association, 2171 West 38th Street, Erie, Pa. 16508. Phone: 814/833-3200 or 800/815-2660.

mbabizmag.com • MARCH 2019

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2/11/19 3:35 PM

MARCH 2019 • mbabizmag.com

FEATURE STORY | WHAT’S NEW

MBA Merger Announced

SMC BUSINESS COUNCILS JOINS MANUFACTURER & BUSINESS ASSOCIATION It’s official! The Manufacturer & Business Association (MBA) and SMC Business Councils (SMC) recently merged operations to offer more valued services to more member employers across the region.

What does this mean for you, our members?

For the last 70 years, SMC’s mission has been to provide members with insurance, legislative, HR, training and networking opportunities. Now, by operating jointly as the Manufacturer & Business Association, the MBA can actively expand these offerings while continuing to provide its longstanding and regionally recognized training programs, HR/ legal support, discounted logistics program and the Association’s energy solutions provider, EnergyAdvisors, to more employers and in more places.

The merger, effective Friday, March 1, 2019, has a profound impact on the visibility and expansion of the Association as you know it. Going forward, the MBA now represents nearly 3,000 member employers across the Commonwealth.

Additionally, the Association now has three office locations – Erie, Cranberry Township and Harrisburg – providing member services.

The Association recognizes this is an exciting time and truly a win-win

for the members as we are poised now, more than ever before, to provide the value services that employers need to succeed!

In fact, in this edition of the Business Magazine, we’ll showcase many of the MBA’s programs and services that you can access, as well as the expert advice of the Association’s professionals and members on topics that are timely and relevant to employers today.

Our March issue, for one, focuses on the area of banking and finance, particularly the solutions that can help you achieve your business goals. We’ll hear from Marquette Savings Bank on how its Business Banking team has a local commitment to the local success of employers. We’ll also hear from Jeff Beach, CPA of BKD CPAs & Advisors on the state of the accounting

industry, the present tax season and recent tax law changes that could impact your bottom line.

Plus, don’t miss a powerful article on the benefits of the Tax Cuts and Jobs Act by guest columnist Jon DeArment of Channellock.

The Business Magazine is the MBA’s premier member publication. Be sure to take a few minutes to learn how the information on the following pages, as well as the Business Magazine’s website www.mbabizmag.com and the Association’s website www.mbausa.org, can benefit you!

TOGETHER, WE ARE HERE FOR YOU!

mbabizmag.com • MARCH 2019

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COVER STORY | LOCAL PROFILE

Marquette Savings Bank CEO Michael Edwards (right) and Marquette Business Banking Senior Vice President John Dill lead a team of business bankers that are making a difference for local business owners in Erie and Crawford counties.

Business Banking Team Committed to Local Community, Local Success There is a common thread that ties many Marquette Business Banking customers together. It is the same thread that binds Marquette to them — a commitment to the local communities Marquette calls home and the drive to make them better.

It comes from the understanding we are all in this together and that success is interconnected.

Local businesses choosing the advantages of banking with a locally headquartered bank is the driving force behind the 10th consecutive year of loan and deposit growth by Marquette Business Banking.

“Just about anywhere you look, you see great things happening… new construction and investment

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MARCH 2019 • mbabizmag.com

from businesses that believe in our region. We are excited to be a part of that,” says John Dill, senior vice president of Business Banking at Marquette. “While some businesses make a big impact by the size of their investment, there are many businesses that fly under the radar.

These companies are also investing in the community, but maybe their story doesn’t get told. We want to be a part of their success story.”

From large businesses with a national scope, to new technology companies and companies that are just hitting their stride, Marquette is filling the need for business loans and banking services that enable them to succeed. Here are a few of their stories.

Seizing Opportunities

Just six years old, PSNergy already includes the world’s largest steelproducing companies among their many customers. Turning to Marquette Business Banking allowed this radiant tube insert and services company to keep pace with their rapid growth.

“By mid-2018, we’d outgrown our space and had to move,” says Carl Nicolia, president. “And if we moved fast enough, we could also take advantage of a Keystone Enterprise Zone (KEZ) opportunity here in town.”

This situation called not only for quick answers but flexibility to include a bridge loan to meet immediate government agency

is ‘The Hometown Bank’ and just happened to be right across the street. That local connection was important to us. They made it easy,” Straub says.

Carl Nicolia is the president of PSNergy, which produces an innovative product that is making a positive impact on the steel industry worldwide.

deadlines. That’s when Nicolia reached out to the Business Banking team at Marquette.

The advantages of a hometownheadquartered bank made a clear difference. “The key to me was responsiveness,” says Nicolia. “They told me the people who will be making the decisions are the ones sitting at this table right now. And it’s held true. If I call, I’m going to get a call back that day, even if the answer will take until tomorrow.”

of in our hometown, Greg Straub started Erie Apparel with a partner five years ago. His Erie-themed T-shirt designs were an instant hit. “Our business was growing quickly, and we needed a line of credit to keep inventory flowing for our distribution channels and our retail and online sales. Marquette

Helping local businesses grow and prosper is the reason why Marquette Business Banking exists.

That commitment is the same for small businesses starting up as it is for well-established businesses.

So, when one of Straub’s largest distribution channels declared bankruptcy and a significant inventory went unpaid, Marquette stepped up to ensure Erie Apparel could continue to build the inventory they needed for the all-important holiday season. “I think another bank may have made it difficult for us to get the credit we needed to buy our inventory for holiday sales,” adds Straub.

“Marquette believed in us and made it work. We ended up with the best holiday season we ever had and were able to pay back the loan in full.” In addition to his store in the Schaal Plaza on West 12th Street in Erie, Erie Apparel products can be found at Wegmans and Field & Stream, as well as online.

Flexibility was not an issue either.

“They listened and understood.

The process was easy and straightforward. And it led to the KEZ tax credit approval,” he adds.

“Carl’s story is an exciting one. His business is unique and it’s making an impact on productivity and efficiencies for his customers. It is going to be exciting watching it grow,” says Dill.

Making a Connection

With a background in marketing, a talent for design and an idea that there was a lot to be proud

Greg Straub, owner, Erie Apparel has developed a “home-town” clothing line that literally has buyers beating a path to his door.

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“We feel a great connection with Greg at Erie Apparel. Everything they do is HOMETOWN. When we can share their vision and help them get the resources they need to make it happen, we all win,” says Dill.

Customer Focused

The McBrier family roots go very deep in the Erie region. Since 1896, McBrier family businesses have included shipping, construction and real estate development.

When it came time to consider another banking relationship for their Real Estate Holdings and Builders’ Hardware, it was a natural transition to choose a locally headquartered bank. “If we were based in Pittsburgh, we would bank in Pittsburgh, but you simply do not get the attention you expect when your bank’s priorities are somewhere else. Marquette’s interest is clearly here. And they prove it with our business every day,” says Jim McBrier, president and CEO, Builders’ Hardware.

“Before coming to Marquette, we used a large out-of-town bank,” says McBrier. “Over time, it became harder and harder to work with them, and our relationship became unpredictable. They could not move as quickly as our business required and we lost the personal relationship that is important in any banking relationship. With Marquette, we found a bank that understood our business and made it a priority to be responsive to our banking requirements and cared as much about our success as we do.”

Today, Marquette provides business-banking services for all McBrier real estate holdings and Builders’ Hardware. Customers like this help to refine the business banking services Marquette provides for customers. “Much of what we do requires having a

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MARCH 2019 • mbabizmag.com

Jim McBrier, president and CEO of Builders’ Hardware, and David McBrier, Business Development Officer, are the latest generations of a local family business that dates back to 1896.

sweep account. They made our needs a priority and customized that service for us,” says McBrier.

“That shows commitment.”

“When you are working with a family business that has been around for more than 100 years in the same community, there is a sense of history. Working with Jim, you immediately get the same feeling of commitment to community we have,” says Dill.

Making a Difference

Marquette has a long history in the Erie region — a 110-year history. Making a difference for businesses and the individuals who call this region home is the reason the bank exists. Marquette Savings Bank’s commitment to the success of local businesses extends to the communities it serves. Marquette gives more than $500,000 annually to nonprofit organizations throughout Erie and Crawford counties. Marquette is a leader in community revitalization efforts such as a $1.65 million commitment to the Erie Downtown

Development Corporation and Erie Downtown Equity Fund LLC, and a $600,000 commitment to Our West Bayfront and Sisters of Saint Joseph Neighborhood initiatives.

Marquette’s recent purchase of the old Toni & Guy building on the corner of 10th and Peach Streets will soon result in a new $7 million construction project to meet growth demands. Centered in the heart of downtown Erie’s Innovation District, the new facility will include an operations center, a training center for employees and an innovation learning center for customers.

“It is our mission to make a difference in the communities we serve,” says CEO Michael Edwards.

“Whether it is helping families to buy or build their first home, working with a local business to realize its full potential or stepping up to make our communities better places, you will find a partner in Marquette.”

For more information, visit www.marquettesavings.bank.

Marsh Schaaf congratulates Marquette Savings Bank on its commercial lending success and building upon its longstanding presence in the Greater Erie business community.

Marquette’s excellent service and “Hometown Touch”© are contributing factors to the growth of Erie and the surrounding area.

The Marsh Schaaf law firm is proud to celebrate its 122nd year and looks forward to being an integral partner in the ongoing economic development and servicing the business and individual needs of the Greater Erie community.

William J. Schaaf James E. Marsh, Jr. Michael G. Nelson Thomas V. Myers

Eugene C. Sundberg, Jr. Kurt L. Sundberg Norman “Bud” Stark Michael A. Agresti

Kevin M. Monahan W. Atchley Holmes Ritchie T. Marsh (Of Counsel) Charles D. Agresti (Of Counsel)

300 State Street, Suite 300 Erie, PA 16507 Phone: (814) 456-5301 Fax: (814) 456-1112 Real Estate Fax: (814) 453-7859 www.marshlaw.com

There’s an art to understanding your business.

You’re a master of your craft, and we’re big fans. That’s why we take the time to reflect on the unique challenges facing your industry. BKD Erie’s insightful professionals can help you reduce risk, boost revenue and perfect the masterpiece that is your business.

Everyone needs a trusted advisor.

Who’s yours?

Bill Finnecy PARTNER

Jeff Beach PARTNER

Vin Halupczynski PARTNER

Jeff Deane MANAGING PARTNER

Tim Goldsmith MANAGING DIRECTOR

Mitch Kalkhof MANAGING DIRECTOR

Chris Salandra MANAGING DIRECTOR

Marne Babich DIRECTOR

Casey Lindenberger SENIOR MANAGER

Steve Gresh MANAGER

Chelsea Geibel MANAGER

Matt Zinna DIRECTOR

814.454.4008 | bkd.com

SPOTLIGHT Q&A| ACCOUNTING

Tax Tips for 2019 — and Beyond Many types of businesses need accountants to audit their finances and balance their books on a daily basis. In fact, as the business environment grows in complexity, so too does the demand for these trusted advisers and their trusted credentials. Here, Jeff Beach, CPA, a partner at BKD CPAs & Advisors in Erie, Pennsylvania, talks about the accounting industry, the present tax season and recent tax law changes that could impact your bottom line.

You’ve been a CPA in the Erie area for more than 20 years. Please tell us about your experience and why you chose a career in the accounting field.

Initially, I was drawn to the technical aspect of accounting. I wanted to obtain a recognized professional designation as a Certified Public Accountant, soon realizing our profession required much more than just being technically competent. Our market contains organizations of all shapes and sizes and you must be an astute listener, problem solver and able to adapt to different personalities and situations.

There is no one-size-fits-all solution. Clients look to you to help them work through some of the most important decisions and challenges in their lives in a professional, credible and confidential manner. Providing this service has been extremely gratifying and rewarding.

You’ve been a part of BKD’s leadership in Erie for the past six years. Describe the firm, its footprint and the services it provides.

BKD has been a great fit for our office. The firm has what I refer to as a Midwesternstyle culture. Offices and subject matter experts go out of their way to assist one another. There is a culture of doing the right thing for the right reasons and the reasons are focused around our clients.

We have 38 offices in 21 states stretching from Colorado to New York and Wisconsin to Texas. The ability to tap into true experts has been extremely helpful in areas such as international taxation, business valuation, employee stock owner plans (ESOPs), cyber risk and IT consulting, just to name a few. International tax is one area

where you truly don’t know what you don’t know. Companies can easily run afoul of rules and make very costly mistakes or miss opportunities for savings. BKD has a very talented group in this area that we use on a weekly basis.

It’s been almost a year since the Tax Cuts and Jobs Act (TCJA) brought major changes to the American tax system.

Please provide a brief update on the key provisions. What are some key changes affecting returns for the 2018 tax year (filed in April 2019) and the 2019 tax year (filed in April 2020)?

This act represents the most significant change we have had in over 30 years.

There are many provisions that make fundamental changes in the individual and business tax world. Most of these changes will affect the 2018 tax year. I believe one of the most significant changes is the 199A business income deduction. This impacts most of our client base and probably most of the MBA members as it is focused on pass-thru entities such as Subchapter S corporations, partnerships, as well as sole proprietors, individuals, trusts and estates.

In general terms, it provides the individual owner in these entities with a potential 20-percent deduction of the qualified business income being passed through to them. Certain types of business will not qualify for the deduction and, of course, there are numerous twists and turns in the calculation, such as the ability to aggregate certain businesses.

very complicated area with potentially huge tax savings.

Even with the TCJA changes, taxes aren’t necessarily straightforward. In your opinion, what is a good resource for keeping abreast of the new tax laws each year?

Most CPA firms have good resources on their websites to follow. At BKD, we have BKD Thoughtware, which is a service that clients and non-clients can sign up to receive business and tax information about their industry. Available are webinars, articles and videos to help them navigate the financial landscape. The Wall Street Journal’s personal finance section also provides a lot of useful and timely articles on taxes.

Of course, each taxpayer’s situation is different, so there’s no guarantee whether a tax return will look better or worse in the next year. What’s your best advice to others to prepare for tax season?

In preparing clients for this year, we have seen some come out winners with a lower tax bill and some come out losers with a higher tax bill. This is going to be a challenging year for all tax preparers.

This year, more than ever, clients need to get their information into their preparer sooner than later.

For more information about BKD, visit www.bkd.com.

The Internal Revenue Services (IRS) just released four additional guidance pieces on this deduction on January 20, 2019. It’s a

mbabizmag.com • MARCH 2019

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2019 Northwest PA

Student Video Contest The Teams Your Vote Counts!

Go online to view and vote for your favorite video

March 11-13, 2019 www.WhatsSoCool.org Scroll to find the Northwest (NW) Contest

Thank you to all the manufacturers, middle schools, sponsors, and community partners for support of this career awareness program!

Blessed Sacrament School (GeorgeKo Industries) Cochranton Jr/Sr High School (Channellock) Conneaut Lake Middle School (Pennco Tool & Die) Corry Area Middle School (Corry Manufacturing Company) Erie First Christian Academy (Essentra) Fairview Middle School (Beaumont Technologies) Fort LeBoeuf Middle School (LORD Corporation) Harbor Creek Junior High School (Contine Corporation) Iroquois Jr/Sr High School (McInnes Rolled Rings) JS Wilson Middle School (Finish Thompson) Maplewood Jr/Sr High School (Mecal by Starn) Meadville Area Middle School (Acutec Precision Aerospace) North East Middle School (Electric Materials Company) RB Wiley Charter School (Onex, Inc.) Rice Avenue Middle School (American Turned Products) Saegertown Jr/Sr High School (Greenleaf Corporation) Union City Area Middle School (All-American Hose) Wattsburg Area Middle School (Rehrig Pacific Company) Woodrow Wilson Middle School (Modern Industries) Westlake Middle School (Micro Mold & Plastikos)

When Small Businesses Thrive, We All Win. We’re proud to be named the #1 SBA Lender in the region§. But what really makes us happy is helping people start and grow their businesses. Because we know when small businesses thrive, our communities thrive. So let’s get to work, together.

Give us a call at (330) 742-7017 or visit your neighborhood branch.

§ SBA loans subject to SBA eligibility. Huntington is the #1 SBA 7(a) lender in the number of loans in the region made up of Illinois, Indiana, Kentucky, Ohio, Michigan, West Virginia, Western Pennsylvania and Wisconsin. Source: U.S. Small Business Administration (SBA) from October 1, 2008 through September 30, 2018.

Member FDIC. ⬢®, Huntington® and ⬢Huntington. Welcome.® are federally registered service marks of Huntington Bancshares Incorporated. ©2019 Huntington Bancshares Incorporated.

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MARCH 2019 • mbabizmag.com

TRAINING SCHEDULE LEARN IT TODAY. APPLY IT TOMORROW.

APRIL



MAY



JUNE 2019

MANUFAC

CLASS LOCATIONS All courses are held at the MBA Conference Center in Erie, unless otherwise noted.

Corry:

Higher Ed Council 221 N. Center Street

Bradford:

Holiday Inn Express 75 Forman Street

Franklin:

Franklin Industrial & Commercial Development Authority, Emerging Technology Center, 191 Howard Street

Pittsburgh: SMC Business Councils

600 Cranberry Woods Drive, Suite 190 St. Marys:

Community Education Council 4 Erie Avenue, Suite 200

Titusville:

Titusville Community Development Agencies 110 W. Spring Street, Town Square, 2nd Floor

* Handicap access and parking available at all sites.

ONSITE TRAINING CONVENIENCE: Let our expert instructors bring the training you need, when you need it, where you need it.

CUSTOMIZED PROGRAMS: From full-day to halfday programs, we will tailor any program to fit your specific needs.

FOCUSED INTERACTION: Group training discussions focus on the key topic areas specific to your company’s environment.

LEADERSHIP

APRIL

CERTIFIED SUPERVISORY SKILLS SERIES Course I 4/4 and 4/11 Course I (Corry) 4/25 and 5/2 Course II (Franklin) 4/9 and 4/16 Course II 4/10 and 4/17 Course IV (St. Marys) 4/24 and 4/25 Course V 4/16 and 4/23 Course V (Pittsburgh) 4/3 and 4/4

LEADERSHIP FOR TEAM LEADERS CERTIFICATE SERIES Course I 4/9 Course II 4/30 WORKPLACE CIVILITY (a.m. only) 4/5 INFLUENCE & PERSUASION (p.m. only) 4/11

MARKETING/COMMUNICATIONS PR BOOT CAMP (a.m. only) 4/1 MARKETING PLANNING (p.m. only)

VISIT: MBAUSA.ORG CALL: 814/833-3200  800/815-2660 EMAIL: TNUNEZ@MBAUSA.ORG

* A.M. classes run 8 a.m. to noon, and P.M. classes run 12:30 p.m. to 4:30 p.m., unless otherwise noted.

Cancellation/No-Show Policy: If notice is four business days or more, a full refund will be made. If notice is less than four business days, or if you do not show up for the class, no refund will be made. NOTE: You may substitute another individual from your organization at any time and at no cost.

4/1

WORKPLACE COMMUNICATION SKILLS 4/18

QUALITY BLUEPRINT READING (4:30 p.m. to 7:30 p.m.)

4/2, 4/4, 4/9, 4/11 and 4/16 GEOMETRIC DIMENSIONING & TOLERANCING (4:30 p.m. to 7:30 p.m.) 4/30, 5/2, 5/7, 5/9, 5/14 and 5/16

SAFETY

ACTIVE SHOOTER & EMERGENCY PLANNING (a.m. only) 4/2 SUPERVISORY SAFETY SERIES: COURSE I

4/3

SUPERVISORY SAFETY SERIES: COURSE II

4/17

OSHA 10-HOUR CERTIFICATION FOOD SAFETY CERTIFICATION

REGISTER TODAY!

2019

4/25 and 4/26 4/15

FOOD SAFETY CERTIFICATION (Pittsburgh) 4/29

HUMAN RESOURCES HR FOR NON-HR PROFESSIONALS 4/17 LEVEL I - HR ESSENTIAL CERTIFICATE SERIES Harassment and Discrimination (a.m. only) 4/9 Interviewing & Hiring (a.m. only, Bradford) 4/23 Terminations (1-5 p.m., Bradford) 4/23 ADVANCED - HR ESSENTIAL CERTIFICATE SERIES FMLA & ADA (a.m. only, Corry) 4/2 FMLA & ADA (a.m. only, Titusville) 4/25 Job Descriptions & Reasonable Accommodations (1-5 p.m., Corry) 4/2 Job Descriptions & Reasonable

Accommodations (1-5 p.m., Titusville) 4/25 Onboarding & Form I-9 (a.m. only) 4/11

CTURER & BUSINESS ASSOCIATION

TRAINING SCHEDULE LEADERSHIP

MAY

JUNE

LEADERSHIP

CERTIFIED SUPERVISORY SKILLS SERIES Course II 5/2 and 5/9 Course II (Corry)

5/30 and 6/6 Course III 5/8 and 5/15 Course III (Franklin) 5/14 and 5/21 Course III 5/30 and 6/6 Course IV 5/29 and 6/5 Course V (St. Marys) 5/22 and 5/23

CERTIFIED SUPERVISORY SKILLS SERIES Course I 6/4 and 6/11 Course III (Corry) 6/20 and 6/27 Course IV 6/20 and 6/27 Course IV (Franklin) 6/18 and 6/25 Course V 6/19 and 6/26 LEADERSHIP FOR TEAM LEADERS CERTIFICATE SERIES Course IV 6/18

LEADERSHIP FOR TEAM LEADERS CERTIFICATE SERIES Course III 5/28

CUSTOMER SERVICE (a.m. only) 6/3 MOTIVATE YOUR EMPLOYEES (a.m. only)

BUILDING TEAMS (a.m. only) 5/9 GETTING ORGANIZED & EFFICIENT (p.m. only) 5/9 COACHING FOR SUCCESS

6/4

WORKPLACE CIVILITY (a.m. only) 6/12 WOMEN IN LEADERSHIP

5/7

6/14

DIFFICULT CONVERSATIONS (a.m. only) 6/17

MARKETING/COMMUNICATIONS

LEADING CHANGE (p.m. only) 6/20 INTRO TO SOCIAL MEDIA (a.m. only) 5/3 DIGITAL MARKETING & SEO (p.m. only) 5/3 QUALITY PRESENTATION SKILLS (a.m. only) 5/10 and 5/17 INTRO TO CONTROL CHARTS & STATISTICAL MUST-HAVES OF EFFECTIVE COMMUNICATION PROCESS CONTROL (a.m. only) 6/11 (a.m. only) 5/17 SAFETY CREATING AND MAXIMIZING E-NEWSLETTERS (a.m. only) 5/20 ONE-DAY FOOD SAFETY CERTIFICATION 6/17 DEVELOPING WEBSITE CONTENT (p.m. only) 5/20

HUMAN RESOURCES

QUALITY

LEVEL I - HR ESSENTIAL CERTIFICATE SERIES Unemployment Comp & Workers’ Comp Basics (a.m. only) 6/4 Retention & Benefits (a.m. only, Bradford) 6/13 Unemployment Comp & Workers’ Comp Basics (1 - 5 p.m., Bradford) 6/13 Interviewing & Hiring (a.m. only, Pittsburgh) 6/18 Terminations (1 - 5 p.m., Pittsburgh) 6/18

ADVANCED - HR ESSENTIAL CERTIFICATE SERIES Onboarding & Form I-9 (a.m. only, Corry) 6/4 Onboarding & Form 1-9 (a.m. only, Titusville) 6/20 Pre-Employment Screenings (a.m. only) 6/25 Pre-Employment Screenings (1-5 p.m., Corry) 6/4 Pre-Employment Screenings (1-5 p.m., Titusville) 6/20

NEW! ONE-DAY LEAN & SIX SIGMA (Pittsburgh) 5/8 NEW! ONE-DAY LEAN & SIX SIGMA 5/9 INTRO TO PROCESS CAPABILITY (a.m. only) 5/14

SAFETY SUPERVISORY SAFETY SERIES: COURSE III

5/1

ONE-DAY FOOD SAFETY CERTIFICATION

5/20

HUMAN RESOURCES

HR FOR NON-HR PROFESSIONALS (Pittsburgh) 5/22 LEVEL I - HR ESSENTIAL CERTIFICATE SERIES Terminations (a.m. only) 5/7 Harassment & Discrimination (a.m. only, Bradford) 5/29 Employment Law (1-5 p.m., Bradford)

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LEGAL BRIEF | FINANCE

Did Tax Reform Kill Tax-Exempt Financing for Your Favorite Charity?

Responsibility Act of 1986 (“TEFRA”), banks have generally been prohibited from deducting their carrying costs associated with funds invested in tax-exempt debt.

Excluded from this prohibition is BQ Debt.

To qualify, such debt must be issued by a municipality or municipal authority on its own behalf or for the benefit of a 501(c)(3) organization. The issuer must designate the borrowing as BQ Debt and, with certain exceptions, limit to $10 million the total debt issued for the calendar year. A bank lender of BQ Debt is both exempt from paying income tax on the interest received and able to deduct 80 percent of the associated carrying cost expense. In our experience, the issuance costs associated with BQ Debt of $2 million or more average around 2 percent of the amount of the debt that the IRS allows to be used to pay such costs.

Jay Alberstadt is a senior partner with MacDonald Illig. He concentrates his practice in the areas of real estate, commercial and economic development, and conventional and taxexempt financing.

If you can lend me money and not pay tax on the interest I pay you, you’ll give me a lower rate, right? Sounds simple enough.

This basic principle underlies the complex web of Internal Revenue Services (IRS) regulations governing the issuance of tax-exempt debt for the benefit of 501(c)(3) organizations. While such financings survived the 2017 tax reforms, are they still worth the issuance costs associated with such transactions? For most nonprofit borrowers, the answer remains a fairly resounding “yes.”

Although national average issuance costs for publicly-traded bond issues are around 1 percent of the amount of the bonds, they can approach 8.5 percent for issues under $5 million, according to research published by the Haas Institute at the University of California, Berkeley. This is because many of the issuance costs do not vary in proportion to the size of the bond issue. Consequently, we see very few publicly traded bond issues in amounts

Jenna Bickford is a partner with MacDonald Illig. She represents clients across a number of practice areas including Business Transactions, Real Estate, Government Services and Public Finance, and Health Care. below $5 million, as the issuance costs are prohibitive for most nonprofits.

For capital projects of up to $10 million, there is an alternative to a public bond issue. The tax code provides for “bank-qualified” tax-exempt debt (“BQ Debt”). Since the Tax Equity and Fiscal

The impact of tax reform on BQ Debt results from the reduction in the maximum corporate tax rate from 35 percent to 21 percent. For example, if you borrow $2 million at a fixed rate for 20 years with issuance costs of 2 percent (i.e., $40,000), how much money can you save by before and after tax reform by going tax-exempt?

As the numbers crunched below illustrate, while the post-tax reform savings are reduced by more than $150,000, those savings still exceed $200,000 over the life of the loan. For most nonprofits, this is still real money.

For more information, contact MacDonald Illig Attorneys at 814/870-7600.

CALCULATION OF BQ DEBT SAVING BEFORE AND AFTER TAX REFORM Prior to tax reform, the BQ Debt interest rate would be calculated as follows: • Calculate TEFRA Penalty: Bank Cost of Funds x Non-Deductible Portion of Carrying Costs x Maximum Tax Rate (e.g., 2% x 20% x 35% = 14 basis points) • Calculate Interest Rate: [Taxable Rate x (100% - Maximum Tax Rate)] + TEFRA Penalty (e.g., [5.00% x 65%] = 3.25% + 14 bp = 3.39%) Following tax reform, the calculation would be: • Calculate TEFRA Penalty: 2% x 20% x 21% = 8 basis points • Calculate Interest Rate: [5.00% x 79%] = 3.95% + 8 bp = 4.03% Calculate Savings: • Taxable: $2,000,000 at 5% for 20 years = $3,167,786 • Pre-Tax Reform BQ Debt: $2,000,000 at 3.39% for 20 years = $2,756,750 Total savings: $3,167,786 - $2,756,750 = $411,036 - $40,000 = $371,036 • Post-Tax Reform BQ Debt: $2,000,000 at 4.03% for 20 years = $2,916,300 Total savings: $3,167,786 - $2,916,300 = $251,486 - $40,000 = $211,486

mbabizmag.com • MARCH 2019

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BUSINESS BUZZ | WHAT’S HAPPENING PENNA FLAME INDUSTRIES NAMED COMMERCIAL HEAT TREATER OF THE YEAR The Metal Treating Institute recently announced that longtime member, Penna Flame Industries of Zelienople, Pennsylvania, was awarded the Commercial Heat Treater of the Year Award

by Industrial Heating Magazine. The award was presented at the MTI Fall Meeting Awards Dinner on October 10, 2018 in Indianapolis, Indiana.

The award given by Industrial Heating Magazine, in conjunction with the MTI Educational Foundation, is awarded to the company that demonstrates high levels of excellence in quality programs, pollution/hazardous waste controls and community involvement/leadership.

Penna Flame owner, Jim Orr, stated, “I’m humbled and honored to be recognized by my peers for the hard work that our entire team puts forth in serving our customers and making a difference. This award is such a team effort and represents the passion we have for our customer, the industry, and the impact we make in our local community.”

Penna Flame Industries, which was founded by Erie native Garrett D. Orr Sr., in 1968, is a full-service flame and induction hardening company that specializes in machining and manufacturing rolls and similar parts (wheels, shafts, axles and trunnions).

The company has a dedicated team of more than 25 people with specific skills and expertise to meet the requirements of its customers.

For more information, visit https://pennaflame.com.

VALENTIS SECURITY PREPARES FOR 2019 EXPANSION, SECURES NEW OFFICES Valentis Security has announced its initiation of expansion plans for 2019 with acquisition of a new facility in January 2019.

The new leased location, 1326 Streets Run Road in Pittsburgh, offers open space that will be specially redesigned to facilitate a training environment for Valentis security personnel in close quarters defensive combat scenarios, as well as other scenario-based training.

According to a press release, “Valentis believes political, media and corporate focus on security will only intensify in 2019, resulting in new clients and opportunities for Valentis to showcase more sophisticated training foundation for its guards and its proprietary security strategies.”

“Valentis strives to set a high standard for training in the security industry and we are accomplishing this standard with our new location. We will also be offering our facility to law enforcement agencies to help prepare them, as well, for these sometimes dangerous scenarios when there are many unknowns and variables,” said Marnie Sutch, chief executive officer of Valentis Security.

For more information, visit www.valentissecurity.com.

Penna Flame Industries was awarded the Commercial Heat Treater of the Year Award in 2018.

SARAH A. REED CHILDREN’S CENTER DEDICATES NEW RESIDENCE HALL

Sarah A. Reed Children’s Center held a dedication ceremony for its newest residence hall for at-risk children on Saturday, January 19, 2019, at the Center’s main campus in Millcreek Township.

This new 12-bed unit is the fifth residence hall at Sarah Reed’s Residential Treatment Facility, which is expanding due to an increasing need for intensive 24-hour care for children ages 5-18 with significant psychiatric and/or trauma related challenges. The new James N. Herr Hall will serve 25 children each year, bringing the overall impact of the Residential Program to approximately 70 children annually.

Sarah A. Reed Children’s Center serves 1,700 children each year, many of whom have experienced significant trauma. According to President/CEO James Mando, “The label ‘traumatized children’ is synonymous for children who have been physically, sexually and verbally abused and threatened. They are children who have grown up in the households plagued by domestic violence, drug and alcohol use and parents and others with their own mental health struggles. In fact, many of our kids can check the box on having experienced all of the above and, as a result, have severe mental and behavioral health problems.”

“Herr Hall will enable us to serve approximately 25 more children each year with an average length of stay between 6 months to 1 year at a cost of $360-$550 per day, based on the severity of the case,“ said Mando. “The kids that will reside here will come from almost every county in PA. Some children will be angry, some will be depressed, some will strike out at other residents and adults and others will self-harm and have attempted suicide. While they are here, they will work with psychiatrists and psychologists, therapists and behavioral counselors to help them understand what has happened to them.”

The $1.2 million residence hall was funded through the generous support of many corporate, foundation and individual donors.

For more information, visit www.SarahReed.org.

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MARCH 2019 • mbabizmag.com

EHCA WELCOMES PDC PHARMACY TO ERIE COMMUNITY

Erie Homes for Children and Adults (EHCA) recently welcomed PDC Pharmacy to its new location in the Professional Building, 1611 Peach Street, during a ribbon-cutting ceremony attended by business and community leaders.

EHCA, an Erie-based organization dedicated to assisting people with disabilities to live rich and fulfilling lives, has been a long-standing recipient of services from PDC Pharmacy.

PDC Pharmacy is a licensed, closed-door pharmacy, specializing in serving individuals with intellectual disabilities and behavioral health needs. PDC Pharmacy is a member of Passavant Memorial Homes Family of Services (PMHFOS), which also includes Passavant Memorial Homes, Accessible Dental Services, Life Enrichment Trust, and Passavant Memorial Homes Foundation.

PMHFOS currently serves more than 10,000 individuals and continuously strives to empower those with intellectual disabilities, autism, and behavioral health needs to live successfully in the community.

PDC Pharmacy - Erie will be PDC Pharmacy’s fourth location, complementing its existing sites in Pittsburgh and Philadelphia, Pennsylvania, and Boulder, Colorado. PDC Pharmacy has been serving the Erie region from its Pittsburgh location for nearly 20 years, and this investment will enable PMHFOS to further enhance the services available to those in the local Erie community.

EHCA continuously strives to enhance the local Erie region and identified the need for specialized pharmaceutical services directly embedded in the Erie community. “We recognized that a local licensed, closed-door pharmacy would enhance the experience of residents in the Erie region that utilize closed-door pharmacy services and would lead to efficiencies through shorter pharmaceutical delivery routes, foster community involvement, and provide for local job creation,” said Bev Keep, chief operational officer at EHCA. For more information, visit www.ehca.org or www.pdcpharmacy.com.

PEOPLE BUZZ | AWARDS AND PROMOTIONS ERIE COMMUNITY FOUNDATION WELCOMES NEW BOARD TRUSTEE

The Erie Community Foundation has announced the addition of a new trustee to the board, Marcus Atkinson, executive director of ServErie, pastor of Community Engagement at Grace Church, and host of TV, radio and podcast programs on WQLN. A native of Erie and a graduate of Strong Vincent, Atkinson spent over a decade in Atlanta, GA, where he earned a degree in business from Clayton State University. He is a published author of multiple novels and manages those works through his own Atlanta-based company, UBC Intellectual Property Management and Consulting.

He immersed himself in political and community organizing during his time in the South.

Atkinson is board chair for MLK Jr. Memorial Center and member of The Idea Fund, UPMC Hamot Board of Corporators, Susan Hirt Hagen Center for Community Outreach, Research & Evaluation (C.O.R.E.), Crime Victim Center and Erie Center For Arts and Technology (ECAT). He also serves on the strategic planning committees for Erie’s Public Schools, Unified Erie and Emerge 2040.

“We are excited about the addition of Marcus who will bring fresh perspective to our board,” said Foundation President Michael L. Batchelor.

“He will serve three-year terms, renewable to nine years, which assures continuity of input and the presence of strong civic leaders guiding our Foundation.”

Atkinson joins Michael L. Batchelor, Rev. Dr. Donald L. Baxter, Jr., William M. Hilbert, Jr., Timothy M. Hunter, Charles G. Knight, III, CPA, Lynn M. McBrier, Esq., Sarah Hagen McWilliams, Deborah W. Murphy, CFP®, Dionne Wallace Oakley, David M. Tullio and James R. Walczak, Esq. as a member of the board.

KNOX LAW ATTORNEYS NAMED TO BEST LAWYERS LIST

Ten shareholders at Knox McLaughlin Gornall & Sennett, P.C., were recently selected by their peers for inclusion in the 2019 Best Lawyers in America® list.

They include:

Guy C. Fustine: Bankruptcy and Creditor Debtor Rights / Insolvency and Reorganization Law and Litigation – Bankruptcy Thomas A. Tupitza: Health Care Law, Land Use and Zoning Law, Public Finance Law, and Real Estate Law

BATCHELOR APPOINTED TO GRANTMAKERS OF WESTERN PENNSYLVANIA BOARD

Neal R. Devlin: Commercial Litigation

Michael A. Fetzner: Workers’ Compensation Law – Employers

Carl N. Moore: Workers’ Compensation Law – Employers

Richard W. Perhacs: Employment Law – Management and Labor Law – Management

Board of Directors.

Grantmakers of Western Pennsylvania (GWP), a philanthropy network comprising 100 grantmaking organizations of all types, has appointed Erie Community Foundation (ECF) President Michael L. Batchelor to its

GWP’s mission is to promote excellence in philanthropy. It works to enhance philanthropy’s impact by hosting funders’ learning networks; delivering issue briefings, webinars and other educational programming; promoting knowledge exchange between funders; sharing innovations and best practices in the field; and encouraging strong partnerships within philanthropy and with other sectors of the community.

GWP is now working to build and diversify its membership by engaging more funders outside of Allegheny and the adjacent counties.

R. Perrin Baker: Bankruptcy and Creditor Debtor Rights / Insolvency and Reorganization Law

Mark J. Kuhar: Employment Law – Management

Thomas C. Hoffman, II: Trusts and Estates (New to the 2019 list)

Jerome C. Wegley: Trusts and Estates (New to the 2019 list) According to its website, Best Lawyers in America®, first published in 1983, is the oldest and most respected peer review publication in the legal profession. Recognition in Best Lawyers is widely regarded by both clients and legal professionals as a significant honor, conferred on a lawyer by his or her peers.

Batchelor was selected as the first executive director of The Erie Community Foundation in 1990, and was named president in 1996. Under his leadership, assets grew from $20 million to $248 million, placing ECF within the top 10 percent of community foundations nationwide. Individual named endowment funds have increased from 53 to over 800.

Batchelor established Erie Vital Signs, a regional key indicator project, and Erie Gives, a successful online giving day, and is a founder of The Nonprofit Partnership, a significant capacity building project.

Most recently, he helped create the Susan Hirt Hagen Fund and Center for Transformational Philanthropy.

Batchelor has onsite consulting experience with more than 50 community foundations and has been active in state and national field governance, including serving two terms as president of the Pennsylvania Association of Community Foundations. He received a B.S. in journalism and an M.A. in public policy analysis, both from Kent State University.

Additionally, Aurora L. Hardin has been hired as a new associate with the Knox firm.

Hardin will focus her practice on litigation. She graduated from the University of Louisville Brandeis School of Law magna cum laude in the top 5 percent of her class and graduated with distinction from The Pennsylvania State University.

The Knox Firm, which was founded in Erie in 1958, serves businesses, governmental entities, nonprofit organizations, insurance companies, financial institutions, individuals and families.

mbabizmag.com • MARCH 2019

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MARCH 2019 • mbabizmag.com

imcerie.com john.bloomstine@imcerie.com

ON THE HILL | TAX REFORM

Tax Cuts and Jobs Act is a Model Our State Should Follow to Spur Economic Growth Jon DeArment is the president and chief operating officer of Channellock, Inc., a worldwide leader in the manufacture of high-quality pliers and assorted hand tools, including the iconic, American-made CHANNELLOCK® tongue-and-groove plier, which can be found in quality retailers around the world. All Channellock pliers and 94 percent of all Channellock products are made in the USA. The Tax Cuts and Jobs Act of 2017 was the biggest tax reform law passed since the Tax Reform Act of 1986. As a U.S. manufacturing company in northwestern Pennsylvania, we are seeing the benefits of this law in many ways, and we support the current administration’s efforts to help American manufacturers to grow and compete in the global economy.

In the past two years, the pro-business agenda by our current administration has sparked growth of more than 10 percent per year for Channellock, after eight years of less than 2-percent annual growth under the prior administration. Reducing the federal tax rate from +30 percent to a flat rate of 21 percent in the Tax Cuts and Jobs Act has provided us with a bigger bottom line to reinvest in new technology and workforce development.

This combination of increased sales volume and lower tax rates means we

have been able to increase our capacity and continue to grow. We have been able to make big, new investments in Laser Heat Treating and automated forging systems, as well as ongoing investments in advanced CNC machine technology. Our employment is up considerably as well, and that means more jobs here in our local community of Meadville, Pennsylvania.

The Tax Cuts and Jobs Act’s provision for bonus depreciation on new equipment has also reduced the financial impact of depreciation on our financials, which makes investment decisions much easier.

Today’s challenges as a U.S. manufacturer are hard enough, with changing consumer demographics and the need to compete for brand preference in both the traditional bricks-and-mortar channel and the omni channel universe worldwide. We need all the help we can get, and the passage of the Tax Cuts and Jobs Act is one time we can say that our government has stepped in and done something to help us be more competitive.

Another example of our government helping us to be more competitive is the tariffs based on the current imbalance in trade between China and the United States, which includes hand tools, and we support it. The United States exported $100 million in hand tools and cutlery to China in 2017 but imported $3.3 billion from China. As an exporter, we see major obstacles to doing business in China, and imposing these tariffs is a step in the right direction to addressing the lack of a fairtrade deal.

Tariffs can be removed when we get better or easier access to Chinese markets, better protection of U.S. Intellectual property, and a reduction in Beijing’s subsidies to Chinese companies. These tariffs are an

effective tool the administration is using to get the other party to the table.

At Channellock, our vision is to continue to grow as a fifth-generation, familyowned business in northwestern Pennsylvania and continue to make sure we are providing the highest possible quality and value to our customers.

With a pro-business administration and pro-growth tax law, we see continued growth going forward. Let’s just hope our Commonwealth can follow along and start enacting pro-business, pro-growth reforms to make our state more competitive.

Pennsylvania is home to some of the best universities in the country, a wealth of natural resources, solid manufacturing infrastructure, vibrant cities and unquestionably hard-working people.

These are assets any state would be happy to have, and they should be generating economic growth, family-sustaining jobs and widespread prosperity.

The truth is, job creators and the hardworking and skilled workers they employ are the fuel for Pennsylvania’s economic engine. By reforming our tax structure to ease the unreasonable burden Harrisburg imposes on individuals and businesses, we will enable Pennsylvanians to enjoy the highest quality of life, provide for their families and plant roots in this amazing state.

The Tax Cuts and Jobs Act has already proven the benefits of simple, fair and longterm tax relief. It’s time for state leaders to recognize that we can never tax our way to prosperity, but by following the federal government’s lead on tax reform, we can unleash opportunity for all Pennsylvanians in 2019 and beyond. mbabizmag.com • MARCH 2019

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HR CONNECTION | WORKPLACE TRENDS FINANCIAL STRESS ON EMPLOYEES CAN COST THOUSANDS

Financial stress on employees is a very large concern for employers. It not only causes stress for individual employees, financial stress on employees is also a noteworthy expense to companies, in the form of absenteeism, lack of focus while on the job, and lost productivity. John Hancock’s recent Financial Stress Survey revealed how financial stress on employees can cost an employer upwards of $2,000 per employee per year. That’s a sufficient amount for employers to take the expense seriously.

Experts say employers should begin by taking note of workers’ money stressors and where possible, offer financial literacy and wellness support to help alleviate them. Doing so can help employers reduce costs related to financial stress on employees. Taking appropriate action can result in a happier, fiscally healthier workforce.

It’s Time to ‘Excel’ in the New Year

Willis Towers Watson also recently studied the impact of financial stress on employees in the workplace.

The research firm’s 2017-2018 Global Benefits Attitude Survey shows a clear correlation between employees’ money worries and their workplace performance, engagement and absence. Willis Towers Watson found that employees who are struggling financially:

We have all been there. Staring at our computer screens as we fumble and stumble through countless spreadsheets. We try to merge, consolidate and filter data as a means to make our work more structured, organized and efficient. All the while thinking to ourselves, “There has to be an easier way!”

• Lose 41 percent more work time due to absence than their peers without financial worries.

• Have lower engagement at work than their financially sound peers (51 percent vs.

29 percent).

Whether it’s Microsoft Excel, Access, Word or PowerPoint, the sooner you take advantage of computer upskilling opportunities, the better chance your career stands to benefit. But don’t wait to be asked! Employees should approach his or her manager about a career development plan and work with him or her on mapping out its progression. This includes computer learning and training opportunities offered by the company that will help them reach specific milestones.

• Are less productive than peers without financial stress (32 percent vs. 5 percent).

SURVEY: MOST ORGANIZATIONS DON’T HAVE CFO SUCCESSION PLAN

Even if Excel is a program you use on a regular basis, you’ve probably only scratched the surface of what this powerful program can do. Take the opportunity to learn more about its best features that can help you become more efficient too.

A recent survey from Robert Half Management Resources found that at many organizations, especially those with fewer than 250 employees, there was no set successor for the key finance role. Just 52 percent had one, and only 37 percent of organizations with fewer than 50 employees had one set aside.

Larger organizations — especially those with 500 to 999 employees — did better, but overall the picture didn’t look so hot.

Microsoft Excel is arguably the most important computer program in today’s workforce. Completing an Excel certification program can provide you with the most advantageous professional assets across all industries by teaching you how to create detailed spreadsheets, perform advanced data analytics functions, make calculations using complex formulas with ease, and much more.

Among the most commonly cited reasons for not having a succession plan in place were that the CFO wasn’t planning to quit anytime soon (64 percent) and that there weren’t qualified replacements within the organization (17 percent).

Another factor, said Tim Hird, the executive director of Robert Half Management Resources, involved competing interests.

It’s all too easy to get stuck in our daily responsibilities and tasks. Sometimes, we forget how important it is to gain new skills for long-term success and professional development. Computer training is a clear benefit to employees who want to improve their skills and provide added value to their organizations.

“Succession plans are critical but often overlooked as executives focus on other pressing issues,” Hird said, in a news release.

Tracy Daggett, PHR is the manager of Professional Development Training Services at the Manufacturer & Business Association. Contact him at 814/833-3200, 800/815-2660 or tdaggett@mbausa.org.

mbabizmag.com • MARCH 2019

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LEGAL Q&A | GET ANSWERS WE HAVE NINE EMPLOYEES. DO WE REALLY NEED AN EMPLOYEE HANDBOOK? We recommend that you do. The return on investment of the employee handbook is immeasurable; it can provide support in the defense of unemployment claims or lawsuits, minimize decision making in the moment for your workforce and serve as a valuable resource when guidance is needed.

Well-crafted employee handbooks are the foundation for effective HR management and compliance and can be a highly effective way to reduce your organization’s risk for failure to comply with appropriate laws and regulations.

A handbook sets expectations by telling your employees what you expect of them and what they can expect of you. It provides general guidelines for employees to operate under, promotes treating employees with fair and consistent practices, and describes employee benefits.

Providing a well-developed and complete handbook helps your management determine proper steps to take in handling a variety of topics such as attendance, leave, performance concerns and disciplinary action, including terminations.

WHAT ARE SOME TIPS WHEN CONDUCTING AN ANNUAL REVIEW OF THE COMPANY HANDBOOK? Make sure you look at updates that may have occurred with federal, state and local laws.

All could impact your handbook review and updates. Also, make sure that your policies are your actual practices. Many companies have policies in their handbook that are not enforced. Get rid of those.

In addition, make sure that there is consistency with your separate polices.

Many times separate polices may address the same thing. You want to ensure that they are actually saying the same thing. Finally, remember to identify directly on or in the handbook the new/current effective date.

Have You Updated Your Handbook?

The work environment is ever changing as are the laws and regulations that affect it. Because of this, it is imperative that employers take the time to review their handbooks annually and make any necessary changes. While an employee handbook serves many functions, one of its primary purposes is to reduce potential liability with respect to claims brought by current and former employees. A handbook cannot serve this function if the policies contained within it are outdated — or even worse, illegal.

Here are few areas that employers should pay special attention to this year.

• At-Will Employment: Most employers are aware that that having an at-will policy in an employee handbook strengthens the principle that employment may be terminated at any time for any lawful reason. Likewise, at-will policies can unequivocally clarify that a handbook is not a contract and that employers may revise policies without prior notice.

• Sexual Harassment: The #MeToo movement has certainly highlighted equal employment opportunity, sexual harassment, gender discrimination and retaliation in the workplace. More than ever, it is critical that employers carefully review their policies on these subjects, including complaint and investigation procedures.

Conducting training on your policy and having consistent disciplinary enforcement are also important.

• Employer-specific policies: Look at the policies specific to your workplace and culture.

Are they consistent with your current practices and needs? Make sure that your attire or dress code polices are keeping up with the times. Are there any new benefits that you are offering — or maybe there are benefits that you are no longer offering? Take the time to make sure your handbook remains relevant to your workplace.

• NLRB: With the change in administration, there has come some relief for employers in employer-friendly rulings and guidance issued from the National Labor Relations Board (NLRB), such as the “Guidance on Handbook Rules Post-Boeing” that was issued in 2018.

Many handbook rules that previously were ruled as unacceptable will not be challenged under the NLRB’s new legal standard. The NLRB will now consider whether a facially neutral rule when reasonably interpreted would interfere with rights under the National Labor Relations Act. If you have any questions, or need assistance with your handbook reviews, the MBA Legal and HR Services team is here to help!

Tammy Lamary-Toman, JD, PHR, SHRM-CP is vice president and employment counsel for the Manufacturer & Business Association.

Contact her at 814/833-3200, 800/815-2660 or ttoman@mbausa.org.

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MARCH 2019 • mbabizmag.com

COMPANY PROFILE Tom and Chuck Reams

Customized Employee Benefit Solutions Our business is helping your business Since 1991, C.H. Reams & Associates has been dedicated to providing independent, objective and honest insurance services to clients across the nation. As one of the leading insurance and employee benefits administrators in northwest Pennsylvania, the agency serves a diverse clientele ranging from small, local employers to large, multistate corporations. C.H. Reams specializes in designing, implementing and maintaining customized employee benefit plans. In addition, they provide unique administrative services that enable customers to manage their benefit plan in the most cost-effective manner.

What Sets Us Apart?

Unlike many other benefit administrators who simply offer one service for all groups, C.H. Reams & Associates understands that all companies have different wants and desires when building an effective benefits plan. Not only will C.H. Reams consult on plan design, implementation and renewal services, but they also provide billing and customized management reports. While other brokers help clients to buy these products for inhouse use, C.H. Reams actually serves as an extension of their clients’ human resources department. It’s a service that goes above

and beyond and has proven much more cost effective for the companies they serve.

“Our systems are really what make this work,” explains owner Chuck Reams. “We’ve developed systems that makes their lives easier. They aren’t just hiring a broker, they are also getting a benefits package administrator.”

Getting the Most from Your Group Health Plan With a rapidly changing health care environment, C.H. Reams & Associates offers innovative strategies that empower employers to realize the full potential of their employee benefit dollars. In recent years, self-funded insurance plans have been on the rise among larger and even mid-sized companies — allowing employers to not only cut costs, but, in essence, help grow their business.

As a third party administrator, C.H. Reams can effectively run your self-funded plan by offering the following services: • Consolidated billing • Customized management reporting • Self-funding claims analysis • Medical claims auditing • Enrollment and eligibility services • Cobra FSA and HRA administration

C.H. Reams & Associates . 401 Cranberry Street, Suite 100, Erie, PA 16507 . (814) 453.4357 . www. chreams.com

Group Products • • • • • •

Fully Insured Health Plans Self-Funded Health Plans Dental Insurance Vision Insurance Life Insurance Disability Income Insurance • Long-Term Care Insurance C.H. Reams & Associates is pleased to offer samples of their consolidated billing statements or management reports. Contact the office for more information.

As women take on more substantial roles in the business world, their impact continues to grow.

Their roles as initiators, representative and connectors have proven to contribute to organizational success, giving them the potential to fill more high-ranking positions.

Join us as we hear from local businesswoman and esteemed educator Maureen Barber-Carey, Ed.D., on her personal and professional journey and how vision and opportunity can impact business, leadership and life. Dr. Barber-Carey is the executive vice president of the Barber National Institute, one of Erie’s largest employers and a premier educational organization for children and adults with autism, intellectual disabilities and behavioral health challenges.

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REGISTER TODAY AT MBAUSA.ORG

EVENTS & EXTRAS | NETWORKING & MORE

The Manufacturer & Business Association (MBA) strives to keep its members informed on the most current business issues affecting employers in the region. For more information about upcoming events or to view the MBA’s photo gallery, visit www.mbausa.org.

it and retain a topd the strategies they use to recru A panel of MBA members share on January 24 at Recruitment and Retention Forum notch workforce, during the HR r in Erie.

Cente rence Confe iation the Manufacturer & Business Assoc

Kim Hirst, Talent Acquisition manager at Erie Insurance, discussed “Creative Techniques to Attract a Pool of Qualified Candidates.”

Jim Roddy, who leads Worldpay’s PaymentsEdge Advisory Services for the channel as a Resel ler & ISV business adviser, spoke about the “Five Winning Strategies for 2019.”

Industries in Warren, Ryan Betts, director of HR for Betts ntion Policies and Practices Pennsylvania, addressed the “Rete for You.” to Keep the Best People Working

Community and business leaders attended the ribboncutting ceremony for Encompass Health Rehabilitation Hospital of Erie, formerly known as Health South.

Encompass Health Rehabilitation Hospital of Erie’s new name chang e went into effect January 1, but the ribbon-cutting ceremony was held on January 10. The facilit y is located at 14 East 2nd Street in downtown Erie.

mbabizmag.com • MARCH 2019

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PRSRT STD US POSTAGE PAID ERIE, PA PERMIT #199

HERE’S THE

PLAN WHEN THE HAPPINESS OF YOUR EMPLOYEES DEPENDS ON THE NETWORK OF YOUR HEALTH PLAN, CHOOSE US. The success of any organization depends greatly on the health and happiness of its employees. That’s why it’s so important to choose the right health coverage. With UPMC Health Plan, your employees get affordable in-network access to the doctors and hospitals they trust. And you get a health plan that makes sense for your company.

Call your producer or visit upmchealthplan.com/employer

Highest Member Satisfaction in Pennsylvania

“Highest Commercial Satisfaction, Three Years in a Row!”

Network

Service

Affordability

–J.D. Power

UPMC Health Plan received the highest score in Pennsylvania in the J.D. Power 2016-2018 U.S. Member Health Plan Satisfaction Studies of customers’ satisfaction with their commercial health plan. Visit jdpower.com.

Nondiscrimination statement UPMC Health Plan1 complies with applicable federal civil rights laws and does not discriminate on the basis of race, color, national origin, age, disability, sex, sexual orientation, gender identity, or gender expression.

UPMC Health Plan is the marketing name used to refer to the following companies, which are licensed to issue individual and group health insurance products or which provide third party administration services for group health plans: UPMC Health Network Inc., UPMC Health Options Inc., UPMC Health Coverage Inc., UPMC Health Plan Inc., UPMC Health Benefits Inc., UPMC for You Inc., and/or UPMC Benefit Management Services Inc.

1

Translation Services ATENCIÓN: si habla español, tiene a su disposición servicios gratuitos de asistencia lingüística. Llame al 1-855-489-3494 (TTY: 1-800-361-2629). 注意：如果您使用繁體中文，您可以免費獲得語言援助服務 。請致電 1-855-489-3494 (TTY: 1-800-361-2629)。