New Overtime Regulations to Take Effect December 1, 2016

By Marina Burton Blickley, Esq., Centre Law & Consulting LLC

A draft of the Department of Labor’s final revised regulations covering white collar exemptions was just released and is set to become effective December 1, 2016 – right after elections.  The final rule sets the new salary threshold for exempt executive, administrative, and professional employees at $47,476 annually and $134,004 for exempt highly-compensated employees.  This is a dramatic increase from the prior levels of $23,660 and $100,000.  Now that the final salary levels are known companies should be reviewing their employee classifications and making adjustments where necessary to be prepared to be in compliance come December 1, 2016.  Government contractors with contracts covered by the Service Contract Labor Standards (formally Service Contract Act) should also perform an analysis to ensure employees performing services on those contracts are being provided appropriate wages and health and welfare benefits since the FLSA overtime exemptions are used to determine coverage under that Act.

There have been a number of recent updates to the employment laws governing employers generally and, in particular, government contractors.  WIPP’s Give Me 5 recently hosted a webinar covering these and other changes.  To learn more, please listen to the podcast available here –

 

Give Me 5: Where Human Resources and Government Contracts Intersect

Guest Speakers:  Barbara Kinosky, President and Managing Partner, Centre Law & Consulting and Marina Blickley, Associate, Centre Law & Consulting

Federal contractors are subject to a unique set of rules, laws and regulations.    Many of these laws and regulations also apply to subcontractors.   This session covers the more complicated areas where HR and government contracts intersect.  Topics include:

  • OFCCP – latest news on increased HR compliance requirements
  • Executive Order actions and recent regulatory changes
  • Common challenges to complying with the Service Contract Labor Standards/Service Contract Act
  • Tips for handling whistleblower and relator complaints
  • Handling mandatory disclosures
  • Changes to implement now

Listen to the Podcast View the Presentation

 

Rethink Red Tape with WIPP and Women Entrepreneurs

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Earlier this week, WIPP partnered with the National Association of Manufacturers, Small Business & Entrepreneurship Council and International Franchise Association to launch a project advocating regulatory reform called Rethink Red Tape.

Nearly 10 million businesses across the United States are owned by women. These businesses employ eight million workers and drive $1.2 trillion in sales. With women-owned businesses growing at a rate one and a half times that of other small businesses, women entrepreneurs play a critical role in our economy and our laws need to support their ability to sustain and grow their businesses.

Unfortunately, regulations are getting in the way. Too many of today’s regulations are duplicative, inefficient and the result of a process that listens least to the people it burdens most. Government rules directly impact the ability of businesses to pay wages, create jobs and grow. In fact, America’s smallest businesses pay more per employee to comply with regulations than medium and large companies. And since they lack the money and manpower to absorb higher compliance costs, the impact of these regulations can mean the choice between cutting staff, scaling back operations and even shutting off the lights.

But there is a solution: Making sure small business owners have a seat at the rulemaking table.

In partnering with Rethink Red Tape, we at WIPP are calling for smarter regulations and a more transparent regulatory process—one that will hold policymakers accountable to produce better, fairer rules. We want to have confidence that the rules government creates are thoroughly vetted, the products of careful cost benefit analyses and impartial science. We are advocating for elected officials from both parties to prioritize regulatory reform as a win-win for everyone.

The first step in making this happen is to make sure your voice is part of the national dialog about regulatory reform.

Hearing from small business owners, particularly women small business owners, will help bring to life the very real impact of federal regulations. Rethink Red Tape will use your stories to put a face and a name to those paying the price for our country’s broken regulatory process. Our perspectives and unique experiences as women entrepreneurs can drive reform forward in a substantive way.

Take a look at the principles guiding our effort, and consider joining us at www.RethinkRedTape.com, Facebook and Twitter.

Access to Angel Investors Just Got Easier

By: Jake Clabaugh, WIPP Government Relations

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Seeking to clear up a gray area triggering securities registration, the House of Representatives passed The Helping Angels Lead Our Startups (HALOS) Act pushed by Small Business Committee Chair Steve Chabot (R-OH).

Pitch events or demo days are common methods for business owners to showcase their companies and products to a room full of investors. Right now, there is confusion about whether these events are allowed because the Securities and Exchange Commission’s rules prohibit “general solicitations.” The HALOS Act would clarify that pitch events hosted by angel investors are not general solicitations and do not require securities registration – a complex and expensive process for both angel investors and companies seeking investment.

Angel investment is particularly important for women-owned businesses. Recent data indicates that one in four angel-backed companies are led by women. The number of women-led companies receiving angel investments has increased by 234% in just the last decade. Since women-owned businesses receive only 4% of conventional small business loan dollars, it is vital to cultivate other sources of capital.

This bill will now move onto the Senate for consideration. WIPP will continue to engage Members of Congress on access to capital issues. An additional recommendation in WIPP’s access to capital platform, Breaking the Bank, urges Congress to incentivize angel investments with tax credits.

 

 

April 2016 WIPP National Partner of the Month – Roz Alford

April 2016 WIPP National Partner of the Month

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Roz Alford, Founder and Co-Principal of ASAP Solutions Group, LLC – Atlanta, GA

WIPP sat down with Roz to hear a little more about her business and relationship with WIPP…

 

Tell us a little about your company.

I am the founding principal of Asap Solutions Group LLC.  I founded the company in 1989 and together with my business partner Nancy Williams we lead the organization. We are a global company and have offices in Georgia, New Jersey, Texas and India.  We employ over 700 people.

The ASAP family of companies is a multi-faceted business solutions brand.  We leverage decades of experience and knowledge and our exceptional teamwork to enable our clients’ success.  From business consulting services to top-notch talent acquisition within the competitive technology market. We partner with our clients to help them achieve their vision and growth for success. Meaningful technology and business solutions are our home and terrain.

Have you always been an entrepreneur? If not, what inspired you to take the leap? 

Yes. I have always been an entrepreneur.

What is your biggest lesson learned working with the Federal Government?

Patience, patience, patience.  Know your facts.

Tell us about your experience as a WIPP member? What resources/value has WIPP provided that has been helpful to you and your company? 

I have been a member and supporter of WIPP for over twenty years. I have always believed that women business owners have a huge impact on our government policies and through WIPP our voice can be heard and make a difference in giving women business owners the opportunity to work and grow in the federal contracting space.

Click here to read Roz’s full bio.

Major Expansion of WOSB Procurement Program Starts Today

FB Cover photoBy: Ann Sullivan, WIPP Chief Advocate

A landmark week for women entrepreneurs just got better. Just a day after announcing that federal government had finally met their goal of awarding 5% of contracts to Women-Owned Small Businesses (WOSBs), the Small Business Administration (SBA) announced a significant expansion of the WOSB procurement program.  When the last disparity study was completed in 2007, women were found to be underrepresented in federal contracting in 83 industries, thus making them eligible for participation in the WOSB program. In addition to pressing for sole source contracts, WIPP advocated for a new study to update eligible NAICS codes for the program. The study, completed by the Department of Commerce earlier this year, found that 113 industries and their corresponding NAICS codes are now eligible for the program. The changes take place immediately.

The study, The Utilization of Women-Owned Businesses in Federal Prime Contracting, found two very disturbing facts.  One, that women are 21% less likely to get a government contract after solving for factors such as age and size of the business. Second, the industries in which WOSBs are less likely to win contracts account for about 85% of both total contracts and dollars awarded.

Find out whether or not your business is eligible for participation in the WOSB procurement program by checking your NAICS codes. Even though the program has quadrupled since 2011, expansion of the NAICS codes will result in even greater gains for women-owned businesses to participate in the public sector.

 

 

3 Ways Employee Policies Can Protect Your Business

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By Kristen Prinz, Founder and Managing Partner of The Prinz Law Firm

A study by specialty insurer Hiscox was recently published finding that U.S.-based companies have at least an 11.7 percent chance of facing an employment law charge. The study claims that the average cost for small and mid-sized businesses to defend these claims is $125,000. That’s a lot of money. It makes having effective employee policies all the more important.

On November 16, 2015, at 1:00 pm CST, I will be presenting the webinar 10 Employee Policies that Minimize Business Risk for WIPP and the WBDC. Participants will learn about 10 policies that can help businesses avoid the $125,000 average. Here are three ways that these polices can help protect your business:

  1. Address claims before they become lawsuits.

Employee policies can provide employees with an internal method to resolve a potential claim. Businesses can use policies to encourage and require that concerns about discrimination, harassment or even wage issues be reported. Knowing the concerns of your employees puts an organization in a much better position to swiftly resolve an issue that could otherwise become a lawsuit.

  1. Show the government your business is committed to compliance.

Having anti-discrimination and anti-retaliation policies shows the EEOC that your business has taken a stance against discrimination and retaliation. Similarly, an effective time keeping policy can show the DOL that your business is taking appropriate steps to comply with wage laws. These policies can bolster a defense when an agency audits your business or investigates a claim.

  1. Create a positive workplace culture.

Your business shouldn’t just have policies; it should abide by them and enforce them. Having well publicized policies that demonstrate your business’s dedication to a positive workplace is one of the best ways to deter employment law claims. Employees are far less likely to sue an employer they believe supports and values them.

To learn about the 10 policies that can help your business (i) address claims before they become lawsuits, (ii) show the government your business is committed to compliance, and (iii) create a positive workplace culture, register now for the WIPP and WBDC webinar 10 Employee Policies that Minimize Business Risk.

Success: Sole Source Finalized

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by Ann Sullivan, WIPP Government Relations 

When you’ve been working on a program for 15 years, it’s almost anti-climatic when you realize you won and it’s over. I suppose lawyers feel this way when they win a big case, or business owners when they close a major contract.

For me, the SBA announcement integrating a sole source component into the WOSB procurement program on October 14, 2015 marks the end of a long campaign by Women Impacting Public Policy (WIPP). First, we fought for eleven years to establish a program that gives a government buying preference to women-owned companies whose industries have been underrepresented. Not an easy fight – we had plenty of Congressional and White House opponents—it wasn’t until the Obama Administration came into power that the program was established. At the time, SBA Administrator Karen Mills made it her number one priority, which we will always be thankful for. We had strong Congressional proponents – Senators Cantwell and Shaheen and Representatives Speier and Graves.

Then, we had to make the program work. That required two major changes to the program in 2013 and 2014. The first change required lifting the award caps the law imposed on the program. The WOSB procurement program limited contract awards through the program to $4 million ($6.5 million for manufacturing). In 2013, Congress helped us get rid of those caps. The last big piece was the sole source piece—allowing contracting officers to award sole source contracts to women-owned companies through the program. This major change gives the program parity with other small business programs and again, required Congressional action. Effective October 14, agencies will be able to use this mechanism to award contracts to women whose companies offer innovative products and services.

As with all government programs, the rules are a little complicated and the ability to self-certify as a woman owned business will eventually have to change, due to Congressional direction in 2014. But for now, self-certification remains the law and women should be actively pursuing contracts through the WOSB procurement program whether or not they are self-certified or certified by a third party.

It is important to note that not all industries (NAICS codes) qualify for the program. You can find a list at http://www.SBA.gov/WOSB. We have developed a one pager that go through the rules of the sole source portion of the program and our GiveMe5 program has comprehensive information on the WOSB program. In addition, our ChallengeHER events are all over the country so that women can find out more about the program. The information can all be found at www.wipp.org.

The WOSB procurement program is in good hands. All the major pieces to make it successful are in place. When we started this effort in 2002, women received 2.7% of government contracts. Since the program has been in place, more than $500 million has been set-aside for women- owned companies. In fact, in 2014 the government awarded 4.7% of its contracts to WOSBs –a 75% increase since 2002. Now women business owners need to know how to use it with the help of SBA, the federal contracting community and organizations, such as WIPP.

Fifteen years seems like a long time, but when you are fighting for something—somehow it doesn’t seem that long. WIPP members and coalition partners were with us every step of the way. For this, I am exceedingly grateful.

A Scorecard That Matters

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By Sydney Ringer, WIPP Government Relations Intern

Earlier this year, Dell released their 2015 Global Women Entrepreneur Leaders Scorecard, a new data-driven diagnostic tool that identifies the impediments to high-impact entrepreneurship. It also introduces steps that can be taken to improve the conditions for high-impact female entrepreneurship development. Countries were rated on five categories: business environment, gendered access, leadership and rights, pipeline for entrepreneurship, and potential entrepreneur leaders. The United States, France, the United Kingdom, Sweden, Australia, and Canada are at the top of the list.

While the United States was at the top of the rankings system, our rating was still only 71/100 across the categories. Only 13% of start-ups have women on their executive team, and just 3% of start-ups with women CEOs received venture capital funding in 2014.[1] According to Dr. Ruta Aidis, the project director, “if women entrepreneurs were starting growth-oriented businesses at the same rate as men in the United States, we could potentially have 15 million more jobs in the next two years”.[2] The Scored is another reminder of just how challenging it can be for women to succeed even today, and even in countries like the United Sates.

First, female role models in business and government are critically important. In the U.S. only 22% of the female population knows an entrepreneur despite 46% of women believing they have the skills necessary to start a business. Women entrepreneurs can leverage their success to provide real business insights on how to encourage women to start their own businesses. Once Women decide to start their own business they have modest aspirations because access to capital is still a huge barrier. Women-owned companies are 50% less capitalized than their male-owned counterparts.

While this report demonstrates all the growth the United States and other countries still need to do, it also presents some interesting ways to encourage women entrepreneurs. On the international level, the International Trade Centre launched a global initiative to increase the proportion of public procurement contracts being awarded to women owned businesses. The study also suggests corporations diversify their leadership and increase the number of women-owned business vendors in their supply chain.

The media can also play an important role as well. Right now global media only features women as subjects in print, radio and television 25% of the time. Seeing more articles featuring women as the top story on their homepage could inspire women to follow in their footsteps.

Every country in the study, even the top rated, has room for improvement. More than 70% of the countries still rated scored less than 50 out of 100. Despite challenges, women-owned businesses are growing, but they would be growing at an exponentially faster rate if they got some encouragement from their governments, corporations, media, and other entrepreneurs.


[1] CNN Money, “The Best Country For Women Entrepreneurs.” 2015. Available online at http://money.cnn.com/2015/06/30/smallbusiness/women-entrepreneurs-dell/index.html?category=smallbusiness

[2] “Global Women Entrepreneur Scorecard Executive Summary”. 2015. Available online at http://i.dell.com/sites/doccontent/corporate/secure/en/Documents/2015-GWEL-Scorecard-Executive-Summary.pdf