by James DeChene
Next Tuesday, the day after the State Chamber’s Annual Dinner (see you there), the 150th General Assembly will gavel into session, with roughly 20% new members between the House and Senate. Other changes include a new Senate Secretary (best of luck, Joy), some new staff faces, new seating charts, and new committee assignments and offices for members. Some things, though, remain the same, including the “Delaware Blue” paint scheme that the lobby core will be staring at for the next six months. For some members, Tuesday will represent the first time they will vote “Yes” or “No,” and if history holds, they will do so a few hundred times over the next two years. The variety of items facing their votes will be numerous, and based on the pre-filed legislation so far, we know of a few specifics. Two new top tax brackets for high earners, an Equal Rights Amendment that when passed will become a Delaware constitutional amendment, and changing the polling hours for school board elections. Another stack of pre-filed bills will be released today, and certainly more will come as session continues. Items to watch include legislation to legalize recreational marijuana, more changes to Delaware’s minimum wage, proposed changes to Delaware’s LLC regulations, predictive scheduling, and a host of unknown, but important, issues that will face the business community. As legislation is introduced that impacts your business we and your elected officials need to hear from you. Share with us how new proposed legislation will impact your employees or force other changes to your business; or how it could change your plans for investment, expansion, or your ability to stay in business. These stories are critical to be heard, and we will have measures in place to make it as easy as possible for you to comment without taking time away from focusing on your operations. Your voice matters and the State Chamber works to make it heard.
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by James DeChene
The Delaware Economic and Financial Advisory Council (DEFAC) issued its December forecast on Wednesday afternoon. The December forecast is what Governor Carney will use when finalizing his recommended budget, to be released on January 4th. For the first time, his budget will utilize portions of the budget smoothing process, a legislative proposal that failed last year, but was issued in part via Executive Order. The order places a limit on spending growth and sets aside a portion of the surplus into a Budget Reserve Account. DEFAC reported spendable cash (98% of projected revenues) is up from the last forecast issued in September by $66.6 million. It also projects an increase of revenue of 1.7% for FY19 and 2.1% in FY20. It’s worth noting that the FY18 revenue growth rate was 9.5%. While there shouldn’t be a big budget showdown next year, there also won’t be a big windfall to be had under these predictions. One remaining unknown cost driver will be depend on how a court case is decided regarding how Delaware funds its schools, and how much more will need to be appropriated. More to come on that. The Delaware Department of Labor released a statement with details about the minimum wage increase: Minimum wage will be increasing for most individuals in Delaware twice in 2019. On January 1, it will be $8.75 and then on October 1, it will be $9.25. But, for the first time in Delaware history, we will now have a multi-tiered minimum wage. The General Assembly adopted a "Youth Rate" and a "Training Rate" that is $8.25. The youth rate applies to workers ages 14 through 17. The training rate applies to adult workers during their first ninety days on a new job. These new categories are $.50 less than the regular minimum wage rate. Effectively, that means workers under 18 and new employees with less than 90 days on the job won't see an increase on January 1st. Their first increase ($8.75) will come when they become eligible for the regular rate or on October 1, 2019, with the next general increase, whichever comes first. The labor law poster sets out all the rates. It is required to be displayed in all workplaces in a place accessible to employees and where they regularly pass. The poster is available on the Department of Labor’s website and can be downloaded in English here and Spanish here. Press Release from the Department of Labor Minimum wage will be increasing for most individuals in Delaware twice in 2019. On January 1, it will be $8.75 and then on October 1, it will be $9.25.
But, for the first time in Delaware history, we will now have a multi-tiered minimum wage. The General Assembly adopted a "Youth Rate" and a "Training Rate" that is $8.25. The youth rate applies to workers ages 14 through 17. The training rate applies to adult workers during their first ninety days on a new job. These new categories are $.50 less than the regular minimum wage rate. Effectively, that means workers under 18 and new employees with less than 90 days on the job won't see an increase on January 1st. Their first increase ($8.75) will come when they become eligible for the regular rate or on October 1, 2019, with the next general increase, whichever comes first. The labor law poster sets out all the rates. It is required to be displayed in all workplaces in a place accessible to employees and where they regularly pass. The poster is available on the Department of Labor’s website and can be downloaded in English here and Spanish here. The Delaware Department of Labor connects people to jobs, resources, monetary benefits, workplace protections and labor market information to promote financial independence, workplace justice and a strong economy. Any issues regarding wages should be directed to the Delaware Department of Labor Division of Industrial Affairs. Contact: Jennifer Zeberkiewicz Jennifer.zeberkiewicz@state.de.us 302-761-8002 by James DeChene
In advance of the January 1, 2019 enactment date, the Delaware Department of Labor has released the notice sheet employers will be responsible for providing to new and current employees. Employers can provide either a digital or hard copy of the sheet, which can be found at the Delaware DOL website, with a link on the left side -- https://dol.delaware.gov/ In addition, for employers with 50 or more employees, note you will be required to provide interactive training for all employees within 12 months of the enactment date, and within 12 months for all new employees. That training is required to be repeated every two years. Those who are in supervisory positions will need additional supervisor-specific training as well. Topics for non-supervisor employees must include the following:
For supervisors the additional training must include:
Note that if employer-provided training to employees or supervisors prior to January 1, 2019, satisfies the requirements listed above, no additional training is required until January 1, 2020. Please be aware that questions may arise on what constitutes an “interactive” training and how to satisfy the training topics. The State Chamber’s Employer Advocacy and Education Committee is taking a look at how employers can be compliant, and will continue to provide updates as we get them. The Delaware State Chamber of Commerce extends its congratulations to tonight’s winners and looks forward to working with them in the 150th General Assembly. The State Chamber would like to thank everyone who participated in the election process.
Please contact James DeChene, Senior Vice President of Government Affairs, if you have any questions at jdechene@dscc.com. Candidates highlighted in red have received DSCC PAC contributions. In a surprise announcement at the 20th Annual Marvin S. Gilman Superstars in Business Awards Luncheon, the Delaware State Chamber of Commerce awarded the esteemed Gilman Bowl to its namesake’s daughter Martha Gilman. The award, presented in conjunction with the Chamber’s Small Business Alliance, is kept secret until the event.
Martha has played a critical role in the activities of the Small Business Alliance, being a long-standing member of the Board of the Alliance and as a member of the State Chamber Board of Directors for over a decade. Since its inception in 1998, Martha has relentlessly committed to making the annual Superstars Luncheon a moral and financial success. Her tireless efforts in logistical planning and development/fundraising for the annual event continues year after year and is a testament to her parents’ admired example. “One of the things I love most about this program and hold with me each year is the memory of seeing my mother’s pride when she would attend the luncheons. The Hotel du Pont was one of my father’s favorite Delaware landmarks, and so it is very special to our family to hold the awards luncheon in the Gold Ballroom. I’m honored to carry on their good work in this way, and even more so to bring my son, Brett, in as part of their legacy,” said Martha in a recent interview for the Chamber’s magazine, Delaware Business. She and her father went into business together, founding Gilman Development Company, a land development and homebuilding firm. Additionally, she co-founded Cornell Management along with her father and brother, Peter. Cornell Management, in conjunction with Gilman Development, builds, owns and manages rental housing. Martha and Marvin were also instrumental in creating The Delaware Housing Partnership (DHP), which provides families with affordable and comfortable housing as homeowners or as renters. The Gilman family’s efforts have given approximately five hundred families in all three counties the ability to lead a better quality of life with homes in which to raise their families. Leading the charge on Gilman Bowl nominations each year, it was a big but important task to make sure she would be surprised. A fake script was even crafted to keep her in the dark. It wasn't until a video she thought was about the 20th anniversary played that it became clear, with her son, Brett, and several colleagues making the announcement. Click here to watch the announcement; and click here to watch the Facebook Live video from the event. DSCC President Mike Quaranta was joined by Senator Chris Coons, along with Martha's family, to present the award. The Gilman Bowl was established to recognize those who exhibit exceptional small business leadership. It is named in memory of Marvin S. Gilman, who served as an exemplary leader and a paragon of small business and philanthropy in Delaware. Martha has, and continues to, serve her community in various ways. Her involvement includes the 21st Century Childrens’ Fund, a nonprofit that gives grants to children in need so that they can participate in extracurricular and developmental activities that would otherwise have been beyond their financial reach; as well as the Delaware Community Fund, the Rotary Club of Wilmington and the Homebuilders Association of Delaware. The program included keynote remarks from Scott Kammerer of SoDel Concepts. "Building something from nothing isn't for everyone, but I wouldn't trade it for anything," said Kammerer in sharing the story behind SoDel's inception, challenges overcome, accomplishments made and the success yet to be had. The event also honored eight outstanding companies as Superstars in Business and Award of Excellence winners. Winner videos and event information can be found at www.dscc.com/superstarsinbusiness. by James DeChene
During the State Chamber hosted its Developing Delaware event in Dover this week, Governor Carney told over 250 attendees a story about being approached by a gentleman claiming to have a catchy new slogan to market Delaware (a la “Virginia is for Lovers or I love NY). After the reveal of “DelaWow”, and the laughter that accompanied it, Governor Carney went on to make the point that there are things happening in Delaware surrounding economic development that are working (more on that later). The Developing Delaware event featured insights on Delaware by the numbers from TIP strategies outlining Delaware’s workforce makeup, the types of industries represented here, and other key factors that businesses looking to locate here take into consideration in their decision-making process. That was followed by a conversation with site selectors tasked with comparing states, metro areas and other locations for their clients looking to set up shop. Key were the insights on the need to be nimble, to approve projects quickly, and to have a pipeline of sites shovel-ready to market and attract companies to Delaware. For more information and a recap of the event, visit www.dscc.com/developingdelaware. Also this week was the groundbreaking at DOT Foods for their new 150,000-square-foot redistribution center on Wrangle Hill Road and Red Lion Road. DOT Foods is the nation's largest redistributor of food products in the US with 3.5 million-square-feet of warehouse space, $7 billion in sales and 4,800 employees. They will be creating over 250 new job opportunities with an expected $6 million annual payroll. See, Cerron Cade—I can write on positive news too. by James DeChene
The CZA Regulatory Advisory Committee met earlier this week for the fifth time. During the meeting, reports were given from the various working groups focusing on individual components of the legislation’s requirements, including how to account for sea level rise, providing financial assurance, and how to monitor bulk product transfer. Of the reports, an agreement of sorts was reached on definitions related to bulk product transfer, while the other topics will be revisited in future meetings based on the amount of material needed to review. Regulations are to be finalized by 10/1/19, and with a little less than a year left, there remains quite a bit of work to be completed. The State Chamber’s Healthcare & Employer Advocacy and Education Committees hosted a joint event focused on the legal and human resources issues of opioids, drugs and alcohol in the workplace. Attendees were presented with three case studies involving small, medium and large businesses, with a variety of circumstances surrounding employee behavior, benefits and worst-case scenarios. Next week is the State Chamber’s “Developing Delaware” event taking place in Dover at the Modern Maturity center. Focused on how Delaware compares with surrounding states when reviewed by site selectors, looking at Delaware “By the Numbers” and hearing success stories from around the state, this is a great opportunity to learn about economic development activity happening in Delaware. With over 200 attendees already registered, it will be a great networking event, too. To register, visit: http://web.dscc.com/events/Developing-Delaware-Conversation-Collaboration-Innovation-2175/details Across the country, October 5th will be recognized as National Manufacturing Day, an annual event sponsored by the National Association of Manufacturers. In Delaware, we celebrate Manufacturing Week, and this year Governor Carney signed a proclamation for this event at the newly opened Datwyler production hub in Middletown.
Manufacturing Day addresses common misperceptions about manufacturing by giving manufacturers an opportunity to open their doors and show, in a coordinated effort, what manufacturing is — and what it isn’t. By working together during and after MFG DAY, manufacturers will begin to address the skilled labor shortage they face, connect with future generations, take charge of the public image of manufacturing, and ensure the ongoing prosperity of the whole industry. MFG DAY is designed to amplify the voice of individual manufacturers and coordinate a collective chorus of manufacturers with common concerns and challenges. The rallying point for a growing mass movement, MFG DAY empowers manufacturers to come together to address their collective challenges so they can help their communities and future generations thrive. In Delaware, events are taking place around the state, with local companies inviting students in for tours of their facilities to showcase the kinds of rewarding careers that can be had in manufacturing. With the current generation of workers quickly aging out into retirement, there exists plenty of good paying jobs for those interested and willing to work. Learn more at MFGDay.com. Chamber members should use #MFGDay18 in social media posts share their photos and events with the State Chamber. by James DeChene
Two years ago, the State Chamber’s Healthcare Committee held an event on opioids to help employers to identify addiction in the workplace, find assistance for employees struggling with overcoming addiction, and shared examples of innovative employer policies that help to provide treatment options. The event was the first of two planned events, the second of which will be held October 10, 2018, and will be a joint venture between the Healthcare Committee and the Employer Advocacy and Education Committee. We hope you, your HR staff, and other interested people will attend. Battling opioid and other substance abuse is a nationally recognized issue. Delaware employers are no exception in facing the challenges brought on by this crisis. Join the Delaware State Chamber of Commerce for an informative panel discussion regarding opioid and substance abuse in the workplace. Panelists will share a diverse set of case studies illustrating how employers can and should handle various situations that affect all businesses, from a mom and pop shop, to a large company with internal HR and legal staff. Moderators: - Tim Holly , Connolly Gallagher, LLP - Paula Roy, ROY Associates Panelists: - Becky Flood, President & CEO, Ashley Addiction Treatment Center - Tricia Clendening, SHRM-SCP, GPHR, SPHR, HR Strategies, LLC - Kevin Fasic, Offit Kurman - Shannon DeLucia, Hotel DuPont - Jamie Danner, Senior Benefit Consultant, Kelly Benefit Strategies Free to attend for DSCC Members / $15 admission for Future Members Continental Breakfast will be provided |
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