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Chamber Briefings 
July 2016
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SAVE THE DATE:

2016 Virginia Workforce Conference
Wednesday, September 28, 2016
Greater Richmond Convention Center
Chamber in the News







Member News & Events

Hosted by Greater Richmond SHRM
July 13-14
VCU Siegel Center

Sponsored by the Port of Virginia
July 28, 2016
The Westin VA Beach Town Center

August 17, 2016
Luck Companies Learning Center
Manakin-Sabot, VA









President's Message

On July 1st, laws passed during the 2016 General Assembly session went into effect. We were proud to join Governor McAuliffe for the signing of the Virginia International Trade Corporation (VITC) bill. This new agency will focus on helping Virginia companies grow internationally as the Commonwealth focuses on diversifying our economy. You can read more about the VITC below, and see coverage from the bill signing. 

During the summer months, various stakeholder and working groups meet to develop policy, and we wanted to be sure you are aware of a number of working groups and public hearings that are to be held over the summer. It is important that the voice of the business community is heard in these meetings, and we encourage you to participate and attend. You can find more information on these below. 

A number of new rules, regulations and court rulings have also been issued recently at both the federal and state level. In this issue of Chamber Briefings, we've provided an overview of some of these that may affect your business. 

I also hope you'll save the date for our 2016 Virginia Workforce Conference on September 28th. This year, we're pleased to partner with Virginia SHRM and the Virginia Values Veterans program to focus on closing the workforce gap by hiring and recruiting veterans. More details on this event can be found below. 
SAVE THE DATE!
2016 Virginia Workforce Conference
September 28, 2016
Greater Richmond Convention Center

Virginia has the fastest-growing veteran labor force in the country, as well as the most veteran-owned small businesses. 
 
The 2016 Virginia Workforce Conference will bring together leading educators, employers, human resources managers, veteran groups, and policymakers to explore solutions to providing greater access to in-demand skills. 
 
This year's conference will focus on helping employers do a better job recruiting, hiring, and retaining highly-skilled veterans and translating their training to private sector employment. 

The Virginia Values Veterans (V3) Program will also be presenting the  4th Annual V3 Awards in conjunction with the conference. These awards will recognize V3-certified companies and strategic partners for their ongoing commitment to creating and increasing employment opportunities for veterans in Virginia.

To learn more, or to submit an application for the award, visit https://www.dvsv3.com/4th-annual-v3-awards/.

Presenting Sponsor
altria 
THANK YOU TO ALL OF OUR SPONSORS - CLICK HERE FOR FULL LIST
Virginia Chamber Featured on Virginia Values Veterans Program

This month, Barry DuVal joined Andrew Schwartz, V3 Program Manager with the Department of Veterans Services on the Virginia Values Veterans Program to highlight the Chamber's partnership with V3 on the 2016 Virginia Workforce Conference. Barry and Andrew also discussed the Chamber's commitment to veterans in Blueprint Virginia.

To view the full interview, click on the thumbnail below.


Fredericksburg Regional Chamber and Harrisonburg-Rockingham Chamber Honored for 100 Year Anniversaries

This year, the Fredericksburg Regional Chamber of Commerce and the Harrisonburg-Rockingham Chamber of Commerce are both celebrating their 100 year anniversaries. Both Chambers were recognized for their leadership, advocacy and service at the Virginia Association of Chamber of Commerce Executives Annual Meeting on June 23.

Congratulations to both Chambers on this major milestone!


Susan Spears, President & CEO, Fredericksburg Regional Chamber of Commerce and Barry DuVal, President & CEO, Virginia Chamber of Commerce


Frank Tamberrino, President & CEO, Harrisonburg-Rockingham Chamber of Commerce and Barry DuVal, President & CEO, Virginia Chamber of Commerce
Governor McAuliffe Signs Virginia International Trade Corporation Bill

During the 2016 General Assembly session, the Virginia Chamber supported legislation patroned by Delegate Steve Landes to create the Virginia International Trade Corporation. We are pleased to announce that the bill was signed into law on June 22.



As Virginia continues to work to grow and diversify its economy, the Virginia International Trade Corporation will assist Virginia businesses with expanding their markets internationally and will allow state trade promotion programs, such as VITAL and VALET to continue to grow. 

To read more about the Virginia International Trade Corporation in Virginia Business, click here.
The Virginia Chamber Files Amicus Brief to Protect Virginia's At-Will Doctrine

The Virginia Chamber of Commerce submitted an amicus brief in the recent Virginia Supreme Court case, Johnston v. William E. Wood & Associates, Inc., No. 151160 (June 2, 2016), a case where a longstanding employee was terminated without advanced notice and brought suit against the company for not providing "reasonable notice." The Chamber believed it was crucial to weigh in on this case to encourage the court to affirm Virginia's long-held at will employment standard where either the employee or employer can end the working relationship without advanced notice. Requiring advanced notice would lead to increased litigation as both employers and employees tried to deem what should be considered "reasonable" when deciding to terminate or leave employment.

We are pleased that the court ruled unanimously to clearly define "reasonable notice," to not mean "advance notice" only that effective notice must be given that the employment relationship has ended. Virginia has long had a reputation for being a business-friendly state and upholding Virginia's at-will employment doctrine is essential to providing certainty for both employers and employees across the commonwealth.
Virginia State Revenues Increase but Budget Still Faces a Potential Shortfall
 
Virginia's new state fiscal year kicked off on July 1 and while our economic future appears to be rebounding, lagging state revenues at the end of the last fiscal year could cause a potential year-end shortfall that would jeopardize scheduled raises for state employees, college faculty, and teachers in December. While state revenues rose 6.4% in May, Virginia is still lagging behind the projected growth for the year with the state needing to make up more than $220 million in revenue in order to make their forecast. If revenues fall short by more than 1%, state law requires a revenue re-forecast for the two-year budget. 

Comptroller David Von Moll is expected to determine by Friday, July 8th whether the state will miss its forecast for major sources of revenue by more than 1%. If it is determined that the projected shortfall will be greater than 1%, provisions in the new budget will trigger that will delay the scheduled state employee pay raises. In a press conference on July, 1, Governor McAuliffe indicated that the state is very close to meeting the threshold and that they are still counting revenue coming in from the final week of June. He reiterated that Virginia's economy and outlook are largely strong but warned that potential cuts in federal spending due to sequestration could make a reappearance in late 2017 when the budget agreement approved by Congress expires.
DEQ Seeking Participants for Title V Fees Stakeholder Group

The Department of Environmental Quality (DEQ) is seeking persons interested in participating in a representative stakeholder group for the purpose of reviewing the fee structure for DEQ's air program to ensure that there is sufficient funding to cover the costs of the Title V air program as required by the Clean Air Act.

The Department is establishing a group to assist DEQ in reviewing and developing recommendations for adjusting the air program fee structure for funding the costs of the Title V program. Stakeholder group meetings are tentatively scheduled for July 26, 2016, August 29, 2016, September 21, 2016, and October 4, 2016 and will held at DEQ's Central Office located in downtown Richmond.  

Individuals interested in being on this group are asked to send their name, contact information, and credentials to:

Gary Graham
gary.graham@deq.virginia.gov
(804)698-4103 

The deadline to submit interest in participation is July 7, 2016.
VA Board of Education to Hold Public Hearings

The Virginia Board of Education will hold a series of public hearings in July and August to gather feedback from families, educators, and community members on student expectations, how schools are accredited, and school resources. The public hearings are scheduled for the following:


Thursday, July 14 - Manassas
6:30 p.m.
Osbourn High School (Auditorium)
9005 Tudor Lane
Manassas, VA 20110

Tuesday, July 19 - Williamsburg-James City County
6:30 p.m.
Lafayette High School (Auditorium)
4460 Longhill Road
Williamsburg, VA 23188

Wednesday, August 24 - Abingdon
6:30 p.m.
Southwest Virginia Higher Education Center
One Partnership Cir, Abingdon, VA 24210

Thursday, August 25 - Lynchburg
6:30 p.m.
Heritage High School
3020 Wards Ferry Road
Lynchburg, VA 24502

Public comment will be accepted at each of the meetings listed above. While the Board welcomes all comments from the public, they are specifically looking for feedback on the Board's work related to the following:
  • Development of a Profile of a Virginia Graduate, and changes to high school graduation requirements and how schools will be accredited in the future
  • Implementation of the Every Student Succeeds Act (ESSA) and Virginia's accountability system 
  • Recommendations regarding the Standards of Quality (SOQ)
  • Identifying conditions and needs of public education, for updating the Board's comprehensive plan and annual report to the Governor and General Assembly
For more information about the Board's work on student expectations, school accreditation, and school resources please click here. 

For planning purposes, kindly RSVP to the Director for Board Relations Melissa Luchau at Melissa.luchau@doe.virginia.gov.

Before each public hearing, some Board members will hold a roundtable discussion with select, invited participants on the Board's development of a Profile of a Virginia Graduate and changes to Virginia's accountability system. The roundtables are open to the public, but public comment will not be accepted during the roundtables.
Virginia Signs MOU with Department of Labor to Target Misclassification of Independent Contractors

The U.S. Department of Labor's Wage and Hour Division (DOL) and the Virginia Employment Commission (VEC) signed a three-year Memorandum of Understanding last month regarding the misclassification of independent contractors or other non-employee statuses.  The VEC will collaborate with DOL by providing enhanced enforcement through joint investigations and the sharing of information. 

Virginia is the 31st state to sign such an MOU which is part of DOL's larger national mission to decrease misclassification of employees as independent contractors. The DOL will be working with the IRS and states that have signed the agreement to increase emphasis on identifying misclassified workers. Employers in Virginia can expect increased audits of independent contractor relationships and a sharing of information between state and federal agencies.
CTB Adopts Six-Year Transportation Plan

Last month, the Commonwealth Transportation Board (CTB) adopted a $14 billion Six-Year Improvement Program (SYIP) for transportation projects beginning on July 1 of this year. The SYIP will fund more than 3,200 projects including highways, bridges, rail, transit and bicycle/pedestrian paths. The plan programs $10.7 billion for highway construction, and includes $3.7 billion for rail and public transportation projects.  

This is the first plan adopted by the CTB that includes projects that were scored and approved for full funding under the prioritization process known as the SMART SCALE (SMART stands for System Management Allocation of Resources for Transportation; SCALE stands for the six road project scoring attributes: safety, congestion mitigation, accessibility, land use, environmental and economic development.)

The new process gives greater reliability that those projects identified, scored and programed in the SYIP will actually be designed and built.

To view the adopted SYIP, click here. For a list of the projects that the SYIP will fund, click here.
FAA Finalizes Rules for Small Unmanned Aircraft Systems
 
Last month, the U.S. Department of Transportation's (USDOT) Federal Aviation Administration (FAA) announced the release of its final rule on the Operation and Certification of Small Unmanned Aircraft Systems (small UAS or small drones), which will authorize the routine commercial use of small drones. The rule will take effect on August 29, 2016, and will permit the commercial use of drones weighing less than 55 pounds without the need for any individual FAA approval provided that the operation meets certain specified conditions.

According to industry estimates, Unmanned Aircraft Systems could generate more than $82 billion for the U.S. economy and create more than 100,000 new jobs over the next 10 years.  In addition, fully integrating UAS into the nation's airspace will drive innovation and advance research.
OSHA Issues New Workplace Injury Reporting Rule
 
The Occupational Safety and Health Administration's (OSHA) issued a new rule to Improve Tracking of Workplace Injuries and Illnesses. Beginning August 10, 2016, the rule requires employers to have a reasonable procedure for employees to promptly and accurately report work-related injuries and illnesses. Beginning on January 1, 2017, covered employers will begin electronically submitting the injury and illness reporting forms to OSHA, and OSHA will publish the results on a website open to the public.  For more information, please click here.
Federal judge puts union "persuader rule" on hold
 
Last month a Texas federal judge entered a nationwide injunction barring the U.S. Department of Labor (DOL) from enforcing its so-called "persuader rule," saying it threatens employers' rights to secure legal advice about union organization. Business groups filed the lawsuit arguing that the rule will prevent employers from speaking on the labor issues or seeking legal counsel.
 
Previously, employer communication with outside labor attorneys or consultants did not have to be reported to DOL if the legal counsel or other outside consultant had no direct contact with the employees themselves.  The "persuader rule" says employer-consultant agreements must be disclosed even if a retained third-party is only working behind the scenes and has not had face-to-face contact with employees.
 
The federal judge held that the new rule likely exceeds DOL's authority under the federal Labor Management Reporting and Disclosure Act. He also said plaintiffs would likely succeed on their claims that DOL's new rule is arbitrary and capricious and violates free speech and association rights protected by the First Amendment. The judge cited objections to rule raised by the American Bar Association, who said the regulation could seriously undermine both the confidential client-lawyer relationship and the employers fundamental right to counsel.
 
Of note, a federal judge in Minnesota hearing a similar challenge recently declined to grant an injunction. As a result of these dual cases, this issue could ultimately make its way up to the Supreme Court.
Labor law violations are about to get steeper
 
In November 2015, Congress enacted legislation requiring federal agencies to adjust their civil penalties to account for inflation. The U.S. Department of Labor (DOL) is adjusting penalties for its agencies, including the Occupational Safety and Health Administration (OSHA). Effective August 1, 2016, fines for violations of health and safety, worker's compensation and wage and hour regulations are increasing. Maximum OSHA penalties will increase by 78%, from $7,000 to $12,471, while penalties for willful violations of the minimum wage and overtime provisions of the Fair Labor Standards Act will increase from $1,100 to $1,894. Meanwhile, penalties from the Office of Workers' Compensation Programs for failure to report termination of payments will also rise from $110 to $275.
Survey: 62% of employees say wellness plans reduce costs
 
A survey of 750 employees participating in wellness plans found 62% said they helped reduce health care costs and 38% said they reduced sick days. A healthy workforce has fewer claims and lower premiums.  

For more information on the survey conducted by HealthMine Inc., click here.
Employment in Science, Technology, Engineering and Mathematics (STEM) Look Bright
 
The Joint Economic Committee, evaluating the Bureau of Labor Statistics data, has provided the following occupational employment statistics for 2015 STEM jobs:





Is It Time to Worry About America's Rising Federal Debt?

The latest projections from the Congressional Budget Office (CBO) indicate that the federal debt situation is worsening. The federal debt held by the public never exceeded 50 percent of GDP until 2009 when it began to rise dramatically, eventually reaching roughly 75 percent of GDP this year. 



The CBO now projects that the debt will exceed 85 percent of GDP by 2026 and continue to grow to eventually exceed our entire domestic economic output. Perhaps even more importantly, the CBO estimates that the annual interest payment on the federal debt will zoom from $253 billion this year to $839 billion in 2026. That means one out of every six dollars the federal government collects in revenue will go to just paying the interest on the federal government's credit card bill.

Click here to view the projections.
For the first time, four-year college graduates make up a larger share of the workforce than workers with a high school diploma or less
 
A recent study by Georgetown's Center on Education and the Workforce, finds that 95 percent of the new jobs created during the recovery have gone to people with some level of post-secondary education.  According to the study, while jobs are back, they are not the same jobs lost during the recession. The Great Recession decimated low-skill blue-collar and clerical jobs, whereas the recovery added primarily high-skill managerial and professional jobs.  Some of the key findings include:
  • Graduate degree holders gained 3.8 million jobs, Bachelor's degree holders gained 4.6 million jobs, and Associate's degree holders gained 3.1 million jobs, compared to workers with a high school diploma or less, who added only 80,000 jobs.
  • Workers with at least some postsecondary education now make up 65 percent of the total employment.
  • Bachelor's degree holders now earn 57 percent of all wages.
CBO estimates 2 million jobs' worth of hours lost under the Affordable Care Act

According to the Congressional Budget Office (CBO), the Affordable Care Act will lead to a reduction in American work hours - the equivalent of 2 million jobs by 2025. According to the 22-page report released by the CBO, the total workforce will shrink by just under 1 percent as a result of changes in worker participation because of the new coverage expansions, mandates and changes in tax rates. Under the CBO's analysis, some people will choose to work fewer hours; others will leave the labor force entirely or remain unemployed for longer than they otherwise would.
Report: Half of high-paying jobs now require computer coding knowledge
 
According to a report from Burning Glass, roughly half of the jobs paying $57,000 or more per year are in occupations that commonly require employees to have at least some computer coding knowledge or skill.  

This high number is due, in part, to the fact that it's not just technology jobs that now require at least some coding knowledge. Computers are important tools in every industry, which means that coding knowledge is now needed for workers across every field. Some experts believe that nearly every job in the future will require some knowledge of coding

Interested in International Expansion? Take Advantage of VITAL!

The Virginia Chamber is proud to partner with the Virginia Economic Development Partnership on VITAL, the Virginia International Trade Alliance. As a VITAL partner, our member companies have access to steeply discounted rates for international market research as well as international trade shows and international trade missions facilitated through VEDP. 
 

Click below for more information:

If you or a company that you work with is interested in learning more about VITAL, please contact Samantha Quig, Corporate Communications Manager, at s.quig@vachamber.com or 804-237-1457.
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