OPMCA Connection
Keeping You Informed!

OPMCA Connection keeps you informed and current on regulations from all state and national agencies as well as laws pertaining to the petroleum marketing/c-store industry.

Candace McGinnis
Executive Director  

Hannah Fite
Director of Member Services  

6420 N. Santa Fe, Suite B
Oklahoma City, OK 73116
Phone: (405) 842-6625 
(800) 256-5013 
Fax: (405) 842-9562
2019-2020 Board of Directors

Jerry Davidson, Chairman  
 Pete's Corporation

Tommy Shreffler
OnCue Marketing, LLC

Teresa Hollenbeck
Red Rock Distributing Company

Kurtis Hutchinson
Hutchinson Oil Company

Jason Flinn
Flowers Oil Company

Rob Toth
Coffeyville Resource
Petroleum Marketers Equipment Co. invites you to help them celebrate 50 years!
Monday, Sept. 30, 2019
  • U.S. Department of Labor Scale Back Obama Overtime Rule

  • E-Cigarettes Continue to Receive Intense Review

  • Fire Prevention in October

  • Risk Management Academy

  • Federated Insurance September Educational Articles
U.S. Department of Labor Scales Back Obama Overtime Rule
The United States Department of Labor (DOL) issued its long-awaited final rulemaking on employee overtime pay last week. The final rule updates earnings thresholds that must be reached to exempt executive, administrative, or professional employees from the Fair Labor Standards Act’s minimum wage and overtime pay requirements. 

The new DOL rule raises the annual earnings threshold that triggers overtime pay (time and a half) for an employee working beyond 40 hours per week from $23,660 to $35,568. The annual earnings threshold increase will expand overtime pay eligibility to 1.3 million workers for the first time. The new, higher threshold accounts for growth in employee earnings since the currently enforced thresholds were set in 2004. Moreover, the final rule does not adjust the annual earnings threshold to inflation. Instead, any increase would require a new DOL rulemaking based on a determination of economic need. 

The final rule replaces an Obama Administration rulemaking that raised the annual earnings threshold for overtime eligibility to $47,476. The Obama rule would have expanded overtime eligibility to 4.2 million workers. However, a federal court enjoined the rule from going into effect. The new overtime rule was written in response to the federal court action. The final rule would also:

  • allow employers to count a portion of certain bonuses and commissions towards meeting the annual salary level; 
  • raise the “standard salary level” from $455 to $684 per week (equivalent to $35,568 per year for a full-year worker);
  • raise the total annual compensation level for “highly compensated employees” from $100,000 to $107,432 per year; and
  • allow employers to use nondiscretionary bonuses and incentive payments (including commissions) to satisfy up to 10 percent of the standard salary level.

Click here to view the Small Business Legislative Committee’s (SBLC) report on the final rulemaking.

The final rule takes effect on January 1, 2020

E-Cigarettes Continue to Receive Intense Review
Last week, two House Committees held hearings on e-cigarettes.  

Democrats want e-cigarettes to be banned until approved by the Food and Drug Administration (FDA) through the FDA’s premarket tobacco product application (PMTA) pathway. By May of next year, all manufacturers will have to apply for new product approval and FDA could grant approval for
manufacturer’s flavored products to come back on to the market. Specifically, Acting FDA Commissioner, Ned Sharpless, wants to ban e-cigarettes not only from convenience and other non-adult only retail, but also from the Internet.

On September 11, the Trump Administration announced that the FDA plans “to finalize a compliance policy in the coming weeks that would prioritize the agency’s enforcement of the premarket authorization requirements” for flavored e-cigarettes other than tobacco-flavored e-cigarettes. Click here to view a copy of the FDA news release.

The announcement appears to reference the FDA’s March proposed draft Guidance “Modifications to Compliance Policy for Certain Deemed Tobacco Products.” A guidance document explains how a federal agency intends to administer and enforce current law and how those being regulated can comply with current regulations.

The March draft Guidance would apply to certain flavored electronic nicotine delivery systems (ENDS), but not tobacco-flavored, mint-flavored or menthol-flavored electronic products. The FDA explained in the March 2019 Guidance that its prioritized enforcement will focus on flavored ENDS products (other than tobacco-flavored, mint-flavored, and menthol-flavored ENDS products) “that are offered for sale in ways that pose a greater risk for minors to access such products.”

However, the announcement on September 11 indicates that the FDA will prioritize its enforcement on all flavored e-cigarettes except tobacco-flavored electronic nicotine delivery systems. This enforcement prioritization would likely include mint-flavored and menthol-flavored e-cigarettes because the announcement references preliminary results from the National Youth Tobacco Survey that “the overwhelming majority of youth e-cigarette users cited the use of popular fruit and menthol or mint flavors.” 

It is important to understand that the final compliance policy that will be issued by the FDA will need to be analyzed to determine exactly what enforcement actions the agency intends to take and to which electronic nicotine products the policy will apply. PMAA will update members once the FDA issues the final compliance policy.

In addition, last week, Representatives Pete King (R-NY) and Tom Suozzi (D-NY) introduced H.R. 4425, the "Quell Underage Inhaling of Toxic Substances Act" or QUITS Act. The bill would ban flavored ecigarettes, raise tobacco taxes, establish equivalent tax on e-cigarettes, increase resources available to those who want to quit smoking, and more than double funding for the Centers for Disease Control and Prevention (CDC)'s Office on Smoking and Health from $210 million to $500 million.

Fire Prevention in October
Federated Insurance to Spark a Conversation around Fire Prevention in October

Non-residential fires cause an average of $2.4 billion in property damage every year. More importantly, an average of 90 people lose their lives and 1,350 people are injured as a result of these fires every 12 months.* To help business owners prevent avoidable fires and the devastating consequences that come with them, Federated Insurance is running a campaign timed in conjunction with National Fire Prevention Week (October 6-12, 2019). This campaign is designed to equip recipients with practical, industry-specific risk management tools that can help reduce the risk of workplace fires.

This week, Federated’s policyholders will receive: 
  • A compelling mailer highlighting workplace fire statistics, the hidden cost of fires, and an industry-specific claim example. 
  • A sample industry-specific fire prevention checklist and a general fire prevention checklist. 
  • An employee fire prevention safety meeting outline. 
  • A list of online fire prevention resources offered by Federated and its partners. 
  • An employee-facing poster highlighting common fire hazards that they are encouraged to hang at their premises.

Federated clients can find more fire prevention resources by logging on to Federated’s Shield Network® or contacting the Federated Risk Management Resource Center at 1.888.333.4949 or riskmanagementmaterials@fedins.com.
Risk Management Academy
Registration Now Open!

Federated Insurance is offering complimentary risk management training for all industries on November 5-7, 2019. Through this valuable session, you will discover methods you can use immediately to help protect profits by reducing risk at your business.

Companies that are the most successful at controlling losses and protecting profits have integrated risk management into their overall company culture. Many have designated a key person as their risk manager. This person is supported by your company’s top management and is both responsible and accountable for identifying loss exposures and implementing risk management solutions.

This seminar’s objective is to help your risk manager learn the exposures specific to All Industries, connect with peers from across the country and apply these best practices within your business.

“Attending this training is one of the best investments you can make to help protect your business and its bottom line!” 2019 RMA Attendee

You can learn more by viewing a brief video about the Risk Management Academy. To reserve your spot in the upcoming session or for more information, please contact Royetta Spurgeon at rlspurgeon@fedins.com or (800)533-0472 Ext. 455-5604. Or, visit Federated's website.
Federated Insurance September Educational Articles