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New Employer Posting Requirement from the National Labor Relations Board (NLRB)

Starting November 14, 2011, most private sector employers will be required to add an additional notice poster on their breakroom wall. The new poster informs employees about their right to form or join a labor union. Employers can download the poster for free at the NLRB website.

Certain small businesses will be exempt from this requirement since the NLRB chooses not to exercise jurisdiction over companies that have minimal impact on interstate commerce. As a general rule, retailers and home builders that sell less than $500,000 a year will be exempt. Nonretail businesses that provide no more than $50,000 in goods or services to out of state customers – or who buy no more than $50,000 from out of state suppliers – are exempt. But when considering whether something was bought or sold “out of state,” the NLRB looks at is first origin or its ultimate destination. Thus, unless the good or service originates in, and never leaves, the same state as the company, it is part of interstate commerce. Practically speaking, this means most small businesses still fall under the NLRB’s jurisdiction and need to post the new notice.

Dirk A. Beamer

On Thursday morning, June 23, 2011, the IRS announced that it was increasing the optional business standard mileage rate for the final six (6) months of 2011. The rate will increase from 51 cents per mile to 55.5 cents per mile and will apply to all business miles driven between July 1, 2011 and December 31, 2011. Also increased was the rate for computing deductible medical or moving expenses. The new rate, which will likewise apply for the last six (6) months of 2011, will be 23.5 cents per mile, up from the current 19 cents per mile. The rate for providing services to charitable organizations is set by law, as opposed to the IRS, and will remain at 14 cents per mile.

Mid-year adjustment
While the IRS typically considers adjusting this rate in the fall of each year, to be applicable in the next calendar year, this mid-year adjustment was made in recognition of increased gas prices and the impact of those prices on all Americans. In addition to gasoline, the calculation of the mileage rate includes other factors such as depreciation, insurance, and other fixed and variable costs associated with operating a vehicle.

A simpler method
While taxpayers always have the option of tracking and deducting actual costs associated with using their automobiles for business, the optional business standard mileage rate provides a much simpler method. As opposed to keeping track of actual expenses, mileage alone is sufficient to compute the deductible costs of operating an automobile for business. The business standard mileage rate is also used by many businesses as the rate at which they will reimburse employees for the business use of their personal automobiles.

Further information can be found in IRS Announcement 2011-40.

Duane L. Reynolds

On March 25, Wright Penning & Beamer was pleased to co-sponsor a luncheon that brought our state’s new governor, Rick Snyder, to Farmington Hills to address an audience of nearly 700 school, civic and business leaders. The event featured welcoming remarks from the mayors of Farmington, Farmington Hills and Livonia, and was jointly hosted by the Chambers of Commerce of those cities.

Governor Snyder graciously met one-on-one with several dozen attendees prior to the luncheon, including Dirk Beamer and myself. In his address, the Governor spoke at length about his vision for the state, and about the significant economic challenges facing us. Following his formal remarks, he took questions from the audience on a number of topics, ranging from education to unions.

All in all, his message was very hopeful. He acknowledged that a number of the difficult decisions he has had to make will negatively impact nearly everyone in the short run, but he emphasized the necessity of making temporary sacrifices in order to regain long-term prosperity. He also stressed his belief that spending cuts alone will not be sufficient. Michigan must also create an environment where businesses can thrive, which in turn will result in the creation of new jobs, the retention of homes and the return of workers who have left the state in search of employment.

Wright Penning & Beamer applauds the good work of the Livonia and Greater Farmington Area Chambers of Commerce in bringing Governor Snyder to our area. The luncheon not only gave the local community an opportunity to hear directly from the governor at a time when many are anxious about what lies ahead, but it also provided a forum where their questions and concerns could be heard.

Lee Flaherty

This legislative update from the Society for Human Resource Management describes a new piece of federal legislation that was introduced yesterday. It has the potential to change dramatically the way in which unions organize and the rights employers currently maintain in requiring private elections to determine whether a workforce chooses to unionize.

Federal Legislative Action Alert!

Today, the Employee Free Choice Act was introduced in Congress! The bill was sponsored by Representative George Miller (D-CA), the House Education and Labor Committee Chair, and Senator Tom Harkin (D-MA).

The legislation would amend the National Labor Relations Act to allow unions to use the “card check” process – and bypass the secure, private election format – each time they attempt to organize workers.

Background

The National Labor Relations Act currently provides two opportunities for employees to decide whether or not to form or join a union:

1 Private ballot election - When a union receives a majority of votes through a secret ballot election administered by the National Labor Relations Board, the union is certified as the sole bargaining agent on behalf of the employees, or

2 “Card check” recognition - When a union receives at least 30 percent of signed authorization cards, the employer can request that a private ballot election be held. (When a union receives at least 50 percent of signed cards, the employer can either recognize the union immediately or request an election.)

Legislation

The EFCA would dramatically change federal labor law. The legislation would allow a union to bypass the election process after collecting authorization cards from a majority of employees. Thus, employers would lose the right to request that an election be held.

If enacted into law, EFCA would:

• Eliminate employees’ opportunity to vote in a federally-administered, private ballot election;
• Require binding arbitration within 120 days after a union is certified through a signed card collection process, if the employer and the union are unable to reach an agreement;
• Restrict an employer’s communications to employees about the workplace issues involved in the union organizing drive; and
• Create new fines against employers for an expanded list of unfair labor practices

SHRM supports the basic rights of all employees to decide freely whether or not to join a union. However, we strongly believe that a federally-supervised, private ballot election is the best way for employees to make this decision.

In addition, SHRM believes the mandatory binding arbitration called for under EFCA could impose unwanted employment conditions on both employees and employers. So in sum, employees could simultaneously lose their rights to vote on union representation and to approve workplace contracts.

Dirk A. Beamer