Department of Labor – New Overtime Regulation

The Department of Labor has announced the new rule for overtime. The rule is to take effect December 1st and will have major impact on many businesses. The provisions businesses need to be aware of include:
They must be paid on a salary basis not subject to reduction based on quality or quantity of work (“salary basis test”) rather than, for example, on an hourly basis;

  • Their salary must meet a minimum salary level, which after the effective date of the Final Rule will be $913 per week, equivalent to $47,476 annually for a full-year worker (“salary level test”); and
  • The employee’s primary job duty must involve the kind of work associated with exempt executive, administrative, or professional employees (the “standard duties test”).

More information can be found at https://www.dol.gov/featured/overtime/

Department of Labor – Proposed Overtime Regulation

Currently under the Fair Labor Standards Act (FLSA), an employee must meet three criteria to qualify as an executive, administrative, or professional employee exempt (the “white collar” exemptions) from federal overtime pay requirements (time and a half for hours worked over 40 per week): they must be paid on a salary basis (the salary basis test); that salary must be more than $455/week ($23,660 annually) (the minimum salary requirement or salary threshold); and their “primary duties” must be consistent with executive, professional or administrative positions as defined by the U.S. Department of Labor (DOL) (the primary duties test). To ensure employees are paid for all hours worked and at the proper rate for overtime, employers must carefully track the hours nonexempt employees work.

On July 6, 2015 DOL proposed changes to the regulations that determine whether a white collar employee will be classified as exempt from being paid overtime. The most significant one is increasing the salary threshold by 113% to $970 per week (or $50,440 per year). For more information, click here: https://www.uschamber.com/event/impacts-the-proposed-overtime-regulation-vulnerable-employers

Letter of Support for H.R. 2890

In April of 2016, the MCEDC Board voted to send a letter of support to Congressman Jim Renacci in support of H.R. 2890 regarding the Modernizing American Manufacturing Bonds Act (MAMBA):MAMBA Support Letter from MCEDC

 

April 14, 2016
The Honorable Jim Renacci, 16th District
U.S. House of Representatives
130 Cannon House Office Building
Washington, DC 20515

Dear Congressman Renacci:
The Medina County Economic Development Corporation is writing in support of H.R. 2890, the Modernizing American Manufacturing Bonds Act (MAMBA), and we respectfully request your support and advancement of this important legislation.

The Modernizing American Manufacturing Bonds Act is a comprehensive reform package that will modernize Qualified Small Issue Manufacturing Bonds, more commonly known as Industrial Development Bonds (IDBs), or simply “manufacturing bonds.” Manufacturing bonds are a type of Private Activity Bond (PAB) that allow the public sector to pass considerable interest rate reductions on to private companies wishing to expand capacity and create jobs.

This is the single most actively used bond for financing small‐ to mid‐sized manufacturing sector growth and is a key economic development tool for state and local economic development agencies, including the Medina County Economic Development Corporation and the Medina County Port Authority. The following four reforms will expand the capacity and usability of manufacturing bonds to help create American jobs:

  • 1. Expand the definition of “manufacturing” to meet the needs of twenty first century
    manufacturers by permitting bond financing for both tangible and intangible production.
  • 2. Eliminate restrictions on “Functionally Related and Subordinate Facilities” for manufacturing
    bonds to avoid arbitrary challenges and unnecessary inefficiencies that are currently associated
    with issuances.
  • 3. Increase the maximum bond size limitation from $10M to $30M for manufacturing bonds.
  • 4. Increase the capital expenditure limitation from $20M to $40M for manufacturing bonds.

These four fixes in H.R. 2890 will expand access to capital for manufacturers throughout the country and support America’s most productive industry. This important piece of legislation will revolutionize manufacturing finance and create more jobs immediately and we encourage your support of MAMBA. If you have any questions or would like more information about H.R. 2890 and its potential impact in Medina County, please contact me at 330‐722‐9215 or bdentler@medinacounty.org.

Sincerely,

Bethany Dentler, CEcD
Executive Director

Letter of Support for HB 491

In April, the MCEDC board voted to submit a letter of support for HB 491:

House bill 491 – HB 491 Support Letter to Hambley

April 18, 2016

Representative Steve Hambley
Ohio State Representative, 69th District
77 S. High Street, 14th Floor
Columbus, OH 43215

Dear Representative Hambley:

On behalf of the Medina County Economic Development Corporation (MCEDC) and in partnership with the Northeast Ohio Trade and Economic Consortium (NEOTEC), I am requesting your support of House Bill 491 CAT Credit for companies located in Foreign-Trade Zones (FTZs) in Ohio.

NEOTEC is a regional economic development organization and is grantee of FTZ #181 and Zone Administrator of FTZ #40 for the Port of Cleveland. Medina County had four FTZs approved for Medina County which have not been utilized to their full potential, and I believe this legislation would encourage additional job creation opportunities within these zones in Medina County. I also agree with NEOTEC’s position that this proposal would give Ohio manufacturers a level playing field through the use of FTZs. In Ohio, the FTZ program is very active, employing more than 29,000 and generating approximately $25 billion in economic activity.

In recent years, it has become apparent that Free Trade Agreements (FTAs) unintentionally disadvantage U.S. manufacturers by giving factories in FTA countries better U.S. tariff treatment than our own factories located in the U.S. In short, factories located in FTA countries can receive duty-free treatment when entering goods into the U.S. while our domestic factories using the same parts and raw materials and selling in the U.S. cannot. This disparity has led companies to move manufacturing jobs offshore, because they find it preferable to serve their U.S. market demand from an FTA country rather than from a U.S. facility.

House Bill 491 will address this disparity with little or no impact to state revenues. The proposed provisions of the HB 491 require Ohio manufacturers operating in Foreign-Trade Zones to invest in new job creation, equipment, training and export sales expansion. The Bill would allow Ohio companies to be more globally
competitive.

MCEDC firmly believes that the passage of HB 491 legislation is vital to restore the strength of Ohio’s manufacturing economy and facilitate the continued growth of the FTZ program, and we would encourage your support and advocacy for its approval.

Thank you for your time and consideration of this letter in support of State HB 491. Please feel free to contact me at 330-715-4462 or bdentler@medinacounty.org if you have any questions or need additional information.
Sincerely,

Bethany Dentler, Executive Director
Medina County Economic Development Corporation