Download this document in .pdf format
BRIEFLY:
Chicago Fed National Activity Index shows economic growth below average in January
The Chicago Fed National Activity Index was -0.58 in January, up from -0.69 in December. All four broad categories of indicators made negative contributions to the index in January.
The three-month moving average, CFNAI-MA3, increased to -0.60 in January from -0.69 in December. This negative value suggests that growth in national economic activity was below its historical trend. With regard to inflation, January's three-month moving average indicates low inflationary pressure from economic activity over the coming year. Employment-related indicators made a contribution of -0.25 to the index in January, following a contribution of -0.31 in December. The unemployment rate ticked down to 4.9 percent in January from 5.0 percent in December. Total nonfarm payroll employment decreased by 17,000 in January after a gain of 82,000 in the previous month. However, the employment category made a smaller negative contribution to the index in January than in December.
U.S. Supreme Court issues disappointing decision for small business owners
Court fails to resolve whether filing an initial questionnaire qualifies as filing a charge for ADEA cases
The U.S. Supreme Court issued a disappointing decision on February 27 that does little to clear up the uncertainty over what paperwork must be filed by an employee with the Equal Employment Opportunity Commission to initiate an employment discrimination claim.
The Age Discrimination in Employment Act, like many other federal civil rights laws, requires that an employee must file a "charge" with the EEOC in order to preserve their right to sue their employer for an alleged discriminatory act. In the case decided today, Federal Express v. Holowecki, the court was asked to determine if filing an intake questionnaire with the EEOC constituted a charge for ADEA purposes.
Instead of clearly establishing what qualifies as a charge, the court ruled that in order for an EEOC filing to be treated as a charge, "it must be reasonably construed as a request for the agency to take remedial action to protect the employees' rights or otherwise settle a dispute between the employer and the employee." The court found that in this case, the intake questionnaire submitted by one of the plaintiffs constituted a charge.
"This is an unfortunate decision for small business owners and employees because the confusion over what is technically required to initiate a discrimination claim has not been eliminated," said Elizabeth Milito, senior executive counsel for the National Federation of Independent Business Legal Foundation. "To make matters worse, this decision may allow certain filings to be recognized as a charge for ADEA purposes, even though the EEOC may not notify the employer that an employee has initiated a discrimination claim against the employer. An employer's first notice of a discrimination claim should never come in the form of a private lawsuit. This deprives both parties of the opportunity to resolve the dispute informally."
The court's opinion recognizes that the EEOC's regulations are "less than clear," but defers to the agency to simplify these procedures.
"NFIB hopes the EEOC will follow the court's suggestion and clean up their regulations so that both employers and employees can clearly understand what the technical requirements are for when an employee can bring a discrimination claim against their employer," said Milito.
New regulatory knowledge base debuts in Illinois
The Illinois Entrepreneurship Network Business Information Center is implementing a new web-based system, available in March 2008, which is designed to make getting business and regulatory assistance as easy as a click of the mouse. This new system disseminates regulatory and business assistance in an easy-to-understand format.
This single system allows business owners better access to information when researching small business questions and finds information more quickly and easily. Once the user types in a keyword, information is arranged in an easily accessible format.
Information on changing small business laws, regulations, and assistance programs is tracked and arranged in an order most commonly asked first, and allows users to forward "knowledge base" items to third parties for sharing. Once the system knows what the user is looking for, it automatically suggests related topics and articles on the subject.
Entrepreneurs can subscribe to an email service, which sends emails when there are changes or proposed changes in certain areas of interest. Additionally, businesses will be able to fill out an online complaint form and submit concerns regarding any "unnecessarily burdensome" administrative rule or guidelines.
This is the first time Illinois has had such an easy to use, one-stop shop, for regulatory and business information.
For more information, contact Katy Khayyat, katy.khayyat@illinois.gov.
Governor proposes tax cut . . . and tax hikes
Governor Rod Blagojevich, sounding like a pro-business chief executive, proposed cutting the Illinois corporate tax rate by twenty percent as an economic stimulus for employers in his Budget Address delivered to a joint session of the Illinois General Assembly on February 20. However following the speech, a closer examination of the Governor's proposals revealed plans to increase business taxes by more than a billion dollars.
The Governor's corporate tax cut would be made available to C corporations and only those C corporations who paid Illinois income tax and maintained a stable workforce. While the prospect for reducing the tax burden on business is always welcome, the governor left out any help for subchapter S corporations, partnerships, LLPs and others.
Further examination of the 2009 budget blueprint once again shows Blagojevich wants to impose a three percent payroll tax on any employer who spends less than four percent of their company budgets on paying for health care. The governor pegged the cost on employers at roughly $400 million for the first six months, but experts say that when annualized employers will pay more than $1 billion in new taxes.
In addition, the Governor is again proposing to eliminate existing job creation tax credits that will increase the cost of doing business in Illinois. Among the so-called "loopholes" the Governor is targeting are the single sales factor, Manufacturers' Purchase Credit, the R&D Tax Credit and a host of others. Estimates are that eliminating the credits will pump about $750 million into state coffers.
Blagojevich also said he's ordered state agencies to cut 3 percent across the board to save money. However he then couched the cuts by exempting the budget of health care, education and public safety. When it's realized that these three areas constitute about 85 percent of the total state budget, the savings realized from cutting three percent from the remaining 15 percent means little savings at all.
The General Assembly now goes to work on implementing the budget for the state fiscal year that begins on July 1 and many statehouse observers believe legislators will reject the Governor proposals and craft a budget better suited to the state's dire fiscal situation. State Comptroller Daniel Hynes has told lawmakers the state faces severe budget shortfalls of at least $1.6 billion and the nation's apparent economic slowdown will further act to hamper tax collections.
The IMA is watching the budget process closely to make sure expenditures made with our tax dollars is made responsibly and for essential state services.
Green Suppliers Network
Manufacturers of all sizes are turning to lean manufacturing techniques to reduce waste and save money. In fact, you may already be practicing lean at your facility. But did you know you can save even more by expanding your efforts to be Lean and Clean?
The Green Suppliers Network works with large manufacturers to engage their suppliers in low-cost technical reviews to identify strategies for improving process lines and using materials more efficiently. The Lean and Clean Advantage targets and eliminates the root causes of waste. The result — a stronger bottom line.
Green Suppliers Network reviews can help you:
- Find customized solutions to your manufacturing challenges
- Save money and increase capacity
- See immediate results through hands-on training on the shop floor
- Achieve additional savings and efficiencies beyond traditional lean techniques
- Improve supply chain relationships
Working in collaboration with the U.S. Department of Commerce (DoC), the U.S. Environmental Protection Agency (EPA) established the Green Suppliers Network to help small and medium-sized manufacturers stay competitive and profitable while reducing their impact on the environment.
Visit their Website for more information: http://www.greensuppliers.gov/gsn/home.gsn.
Join the IMA Energy Program . . .
IMA members looking to compare their electric supply options can go to http://www.newenergy.com/control
and receive a free, no obligation rate quote.
OfficeMax Advantage can save you 30% or more on your office supplies . . .
IMA members and OfficeMax — a first-class partnership
Go to: http://www.ima-net.org/membership/programs.cfm
to download your OfficeMax Retail Connect Card and start saving today!̃
Annual Holiday Survey Report . . . now ONLINE!
http://www.ima-net.org/08IMAHolidayRpt.pdf
The IMA's Annual Holiday Report highlights employers' plans on select holidays throughout the year. This year's survey was conducted from August 10-31, 2007 for the 2008 calendar year. Four questions were asked ranging from total number of paid days off to a breakdown of full or half day paid holidays, and on which days the member company is actually closed throughout the year. Nearly 450 IMA members responded.
For the results, visit http://www.ima-net.org/08IMAHolidayRpt.pdf.
The IMA's new strategic partnership with Heritage-Crystal Clean (HCC) caters to your company's environmental needs. Big savings are available to IMA members. To learn more, contact HCC's Jim Skelton at jim.skelton@crystal-clean.com, call 847-783-5110 or visit: www.crystal-clean.com.
IMA's Recycling Expansion & Modernization (REM) grant ...
The Illinois Department of Commerce and Economic Opportunities wants to help Illinois companies deal with the issue of reducing waste through the Recycling Expansion and Modernization (REM) Grant Program. Through this grant, the Illinois Manufacturers' Association can offer your company a solid-waste assessment at 25 percent of the actual cost; the grant pays the remaining 75 percent. Join the growing number of companies that are on the path to becoming green. Find out how easy it is to participate in the IMA's REM grant program. It's an investment in your future — one that will reap perpetual rewards for your business and your community.
For more information, contact Judy Parker, IMA Director of Training, 217-522-1240, ext. 3036, or email
jparker@ima-net.org.
Order the IMA's 2007-2008 Benefits Report at https://www.ima-net.org/ben_report_order.cfm
Order the IMA's 2006 Annual Compensation Report at http://www.ima-net.org/reportorder/login.cfm
For more information, go to one of the links above, or contact Janie Stanley at 800-875-4462, ext. 3020, or email:
jstanley@ima-net.org
DATES OF NOTE:
More information/events may be found at http://www.ima-net.org/calendar.cfm and
http://www.ima-net.org/MIT/open.cfm
March 7, 2008
IMA-MIT Event: Effective Presentation Skills
DePaul University's O'Hare Campus, 3166 River Rd., Des Plaines
Learn to create and articulate a clear and concise message, respond to questions effectively. Let us provide you with the skills and tools needed to deliver a winning presentation. Due to video taping each participant, registration is limited to 12. Register early to ensure availability.
March 14, 2008
Sales Skills for Non-Sales Professionals
DePaul University's O'Hare Campus, 3166 River Rd., Des Plaines
Gain a competitive edge by giving "touch point" employees the skills to perform as "sales professionals." Learn how core communication skills influence the sales process. Learn to turn negative or difficult situations into sales opportunities and learn valuable closing techniques.
March 28, 2008
Time Management and Personal Effectiveness Skills
DePaul University's O'Hare Campus, 3166 River Rd., Des Plaines
Learn to delegate with confidence, plan and execute productive meetings, prioritize daily activities for ultimate results, develop techniques for planning and achieving goals.
March 31, 2008
Failure Mode and Effects Analysis (FMEA), Decatur Public Library, 130 N. Franklin St., Decatur
Learn to maximize the benefits of performing FMEA activities, eliminate or minimize effects of potential failures, gain ideas for other applications and learn about risk evaluation and management.
April 1, 2008
Failure Mode and Effects Analysis (FMEA), DePaul University, 150 W. Warrenville Rd., Naperville
Learn to maximize the benefits of performing FMEA activities, eliminate or minimize effects of potential failures, gain ideas for other applications and learn about risk evaluation and management.
For
IMA-MIT events, contact Judy Parker, 800-875-4462, Ext. 3036, or email jparker@ima-net.org
Download this document in .pdf format
Other Executive Memos available online.
Remember, you must have the Adobe Acrobat
Reader software in order to view .pdf documents. Acrobat Reader
can be downloaded
for free from the Adobe Web site.
