OHIOCHAMBER.COM NOVEMBER/DECEMBER 2016

GET INFORMED. 1

Election 2016: Pro-business candidates prevail CyberOhio to help businesses Much accomplished, more to do

SHARE SUCCESS. 4

Employer role in providing a drug-free workplace ‘Cat’s Paw’ decision highlights investigations before termination 2016 All for Ohio series a success

STAY CONNECTED. 6

Growing Sweeties into the largest candy store in the country An Official Publication of The Ohio Chamber of Commerce The Ohio Chamber in action New members Wrapping up 2016

By Rich Thompson, Director, Political Programs

ELECTION 2016: PRO-BUSINESS CANDIDATES PREVAIL

As we digest the incumbent members won by was certainly helpful in his first bid the 2016 comfortable margins. In Washington, for statewide office. election, it D.C., Ohio is now represented by is clear that one Republican senator and one Also endorsed by OCCPAC, the old adage, Democrat senator, and 12 Republican Chief Justice Maureen O’Connor “To win the members of the House and four was unopposed in her bid for re- presidency Democrat House members. election to Ohio’s high court. you must GENERAL ASSEMBLY QUICK GLANCE DEWINE WINS OPEN SEAT win Ohio,” REPUBLICANS GAIN Rich Thompson FOR OHIO SUPREME COURT; held true. HISTORIC MAJORITIES Chamber-endorsed candidates FISCHER LOOKS TO HAVE Donald Trump will become the All 74 OCCPAC General WON; O’CONNOR UNOPPOSED come out ahead. 45th president of the United States Assembly-endorsed candidates The Ohio Chamber of Commerce following one of the wildest election won re-election, including seven Political Action Committee In the House, Republicans will hold nights our nation has ever seen. In Chamber Choice candidates. Ohio, Trump held on to a 51.9 to 43.3 (OCCPAC) endorses Ohio Supreme 66 seats, Democrats 33. percent victory. This percentage Court candidates who have a judicial The Ohio House GOP has picked up lead is the largest victory in an Ohio philosophy of not legislating from the largest majority by a caucus in In the Senate, Republicans will hold presidential election since George the bench. Thus, the three judicial the history of the Ohio House. With 24 seats, Democrats nine. H.W. Bush defeated Michael Dukakis candidates endorsed in 2016 share winning the open by 10.9 points in 1988. this philosophy. It was the race seat for House District 94, House between OCCPAC-endorsed Judge Republicans stand with 66 seats to ROB PORTMAN WINS SECOND Pat Fischer and Cuyahoga Common the Democrats’ 33 seats. HD 19 Rep. Anne Gonzales-R TERM IN U.S. SENATE, ALL Pleas Judge John O’Donnell that HD 21 Rep. -R INCUMBENTS WIN U.S. got the most attention down the On the Senate side, Sen. Lou Gentile HD 24 Sen. Jim Hughes-R CONGRESSIONAL RACES stretch. The Supreme Court has was the only incumbent to lose. HD 28 Rep. -R In Ohio’s Senate race, Sen. Rob been a priority for the Ohio Chamber Political newcomer HD 29 Rep. Bill Blessing-R Portman routed former Gov. Ted and the business community for came out on top in the 30th HD 30 Rep. -R Strickland in what was a crucial many years, and it was critical that Senate District that covers HD 36 Rep. Anthony DeVitis-R battleground state. While nationally, Fischer take the seat. As of this portions of Ohio’s Appalachian HD 37 Rep. -R Democrats initially had high printing, Fischer is up by a very region. Republicans in the Senate HD 38 Rep. Marilyn Slaby-R hopes that they would be able to narrow 1-point margin, 50.30-49.70 will have 24 seats, with the HD 40 Rep. -R oust Portman with high-profile percent, with provisional ballots yet Democrats holding nine seats in HD 41 Rep. Jim Butler-R candidate Strickland, they quickly to be counted. the 132nd . HD 42 Rep. -R faced insurmountable fundraising We’d like to thank our members HD 43 Rep. Jeff Rezabek-R * The second Supreme Court seat deficits and outside spending on who helped make all of our HD 47 Rep. -R was not expected to be nearly as behalf of Portman’s campaign. endorsed candidates successful. HD 48 Rep. -R competitive, and it wasn’t. OCCPAC- Portman ultimately came out on HD 50 Rep. Christina Hagan-R endorsed Judge Pat DeWine defeated The list of all of the OCCPAC top, 58.3 to 36.9 percent. There were HD 51 Rep. Wes Retherford-R Judge Cynthia Rice 56.4 to 43.5 endorsed General Assembly no surprises in any of the 16 Ohio HD 52 Rep. Margaret Conditt-R percent. DeWine’s name recognition winners is as follows. Congressional Districts, as all of HD 55 Rep. -R * *Denotes Chamber Choice candidate HD 59 Rep. John Boccieri-D # Not a current member of the Ohio General Assembly HD 61 Rep. -R HD 62 -R # Ohio House of Representatives HD 66 Rep. Doug Green-R HD 67 Rep. Andy Brenner-R HD 1 -R # HD 68 -R HD 2 Rep. -R HD 69 Rep. -R HD 3 Rep. -R HD 70 -R # HD 4 Rep. Bob Cupp-R HD 71 Rep. Scott Ryan-R HD 5 Rep. -R * HD 72 -R HD 6 Rep. Marlene Anielski-R HD 73 Rep. -R HD 7 Sen. -R HD 12 Rep. John Barnes-D Continued on page 3 HD 16 Dave Greenspan-R

WWW.OHIOCHAMBER.COM 1 In 2016, we all worked toward greater outcomes. Together, we all shared greater success. We’re all for Ohio.

Thank you for your membership with the Ohio Chamber. By working together, we’re going to make 2017 Ohio’s best year yet as we bring you:

• A redesigned website • A new membership portal • A fantastic annual meeting • An informative policy conference at Salt Fork

And we’re doing this all while carrying out our mission to aggressively champion free enterprise, economic competitiveness and growth for the benefit of all Ohioans. GET INFORMED.

By Mike DeWine, By Keith Lake, Vice President, Government Affairs CYBEROHIO INITIATIVE AIMS MUCH TO HELP OHIO BUSINESSES ACCOMPLISHED,

We live in an unprecedented era of WITH MORE TO DO connectedness. From our mobile devices or computers, we can instantly communicate with loved ones, purchase products from A reflection of our anywhere in the world and even turn up the accomplishments, with a heat in our homes. However, the convenience of technology can come at a high cost. look toward the future Every day, cybercriminals launch While there was obviously a sophisticated cyberattacks targeting monumental change in direction businesses and the personal information Ohio Attorney General Mike DeWine announces at the federal level as a result of of Ohioans. A recent example is the attack formation of CyberOhio Initiative. the November election, here at the on Dyn Co., an internet domain name state legislative level, Ohio voters services provider. Dyn was hit with one of essentially affirmed the status quo. the largest denial of services attacks on Although both the and record. The attack was accomplished using Ohio House Republican caucuses malware that caused internet-enabled home each added one seat to their already devices, such as DVRs, security cameras and Keith Lake historically high margins, this baby monitors, to attack Dyn. The attack does nothing to change the balance of power in the Ohio shut down websites throughout the East General Assembly. Coast, including those of Netflix, CNN and Twitter, costing Dyn and the affected Even at the legislative leadership level, the changes businesses millions of dollars in lost revenue shouldn’t significantly impact the political landscape as we and damages. enter 2017 and the beginning of a new two-year session. That’s because Speaker Cliff Rosenberger will once again No organization is exempt from attacks like preside in the House, while Sen. Larry Obhof — already this. Business owners across Ohio must on the advisory board, including Abercrombie holding the No. 2 position in Senate leadership — will likely spend significant financial resources to & Fitch, Battelle, Cardinal Health, - ascend to the Senate presidency. Both minority leaders, defend against and respond to cyberattacks. Marshall College of Law, Columbus Sen. Joe Schiavoni and Rep. , are also back. Collaboratory, Deloitte, elnformatics, And still in power is Gov. , now entering the The cybersecurity playing field can often Lunarline, OhioHealth, The Ohio State final two years of his time as governor. seem one-sided in favor of the hackers. University, Rev1 Ventures, Steris, the U.S. Cybercriminals only have to be right once to Department of Energy, U.S. Bank, Wendy’s, Solid pro-business majorities will continue to prevail in get into an organization’s IT infrastructure, Western & Southern Financial Group and both the Senate and the House. As a result, working together but businesses must get it right every time. XLNsystems. with the governor, we can expect the legislature to continue Dyn had significant protections in place, and making building a better business climate a priority — just yet it was stopped from doing business. And CyberOhio will include several different as it has over the past six years. This, obviously, is good news Dyn is not alone. It joined the ranks of several components, ranging from proposing for Ohio employers. other businesses, including Yahoo, Target legislation that will help businesses thrive and Home Depot that, over the last few years, in a high-risk cybersecurity environment A number of key pieces of legislation backed by the Ohio have suffered significant cyberattacks. to business trainings, information sharing, Chamber were passed just in the past two years. These an internship program and the creation of include a budget containing a $1.2 billion tax cut, a bill that To try to level the playing field, I announced a Cyber and Privacy Unit within the Ohio prevents drastic increases in workers’ compensation costs the creation of the CyberOhio initiative. Attorney General’s Office. due to motor vehicle accidents caused by third parties and a The purpose of CyberOhio is simple — to plan to pay off Ohio’s federal unemployment compensation help businesses protect themselves against It is our goal to help create the best legal, debt that will save Ohio employers approximately $351 cyber threats. technical and collaborative cybersecurity million in unemployment taxes. environment possible for Ohio. By helping I’ve put together a Cybersecurity Advisory businesses, we ultimately better protect The governor and legislative leaders are also committed to Board to assist with industry expertise, the Ohioans who trust their information to addressing two other important business issues before the guidance, advice and practical suggestions these businesses. end of the year. One is comprehensive reform — long overdue for dealing with cybersecurity challenges. — of our broke and broken unemployment compensation Kirk Herath, vice president and chief privacy If you would like to subscribe to our system, and the other is protecting employers from the officer for Nationwide Financial Services, CyberOhio email listserve to receive escalating costs associated with Ohio’s energy mandates. will chair the advisory board. tips and threat information, please send your email address to Craig.Rapp@ Assuming the legislature clears the decks of these two In addition to Nationwide, a cross-section of OhioAttorneyGeneral.gov. issues during the waning days of this session, what will industries and organizations is represented Continued on page 4

CONTINUED FROM PAGE 1

ELECTION 2016: PRO-BUSINESS CANDIDATES PREVAIL

HD 74 Rep. -R HD 92 Rep. -R SD 18 Sen. John Eklund-R HD 76 Rep. Sarah LaTourette-R HD 93 Rep. Ryan Smith-R SD 20 Sen. Troy Balderson-R HD 77 Rep. -R HD 95 Rep. Andy Thompson-R SD 22 Sen. Larry Obhof-R HD 78 Rep. -R HD 97 Rep. Brian Hill-R SD 24 -R *# HD 79 Rep. -R * HD 98 Rep. Al Landis-R SD 26 Sen. Dave Burke-R HD 80 Rep. Steve Huffman-R SD 28 -D # HD 81 Rep. Rob McColley-R Ohio Senate HD 82 -R # HD 83 Rep. Robert Sprague-R SD 2 Sen. Randy Gardner-R We look forward to working with all of the HD 84 Sen. Keith Faber-R SD 4 Sen. Bill Coley-R members of the Ohio General Assembly in the HD 86 Rep. Dorothy Pelanda-R SD 6 Sen. Peggy Lehner-R New Year as we aggressively champion free HD 87 Wes Goodman-R # SD 8 Rep. Lou Terhar-R enterprise, economic competiveness and growth HD 88 Rep. -R SD 10 Sen. -R for the benefit of all Ohioans. HD 89 Rep. Steven Arndt-R * SD 12 -R # SD 14 Sen. Joe Uecker-R Note: Unofficial results were used in this article as the HD 90 Rep. Terry Johnson-R races had yet to be certified by publication deadline. HD 91 Rep. Cliff Rosenberger-R SD 16 Rep. -R *

WWW.OHIOCHAMBER.COM 3 NOVEMBER/DECEMBER 2016

By Dee Mason, President of Working Partners CONTINUED FROM PAGE 3 THE EMPLOYER’S ROLE MUCH ACCOMPLISHED, WITH MORE TO DO IN PROVIDING A DRUG-

2017 bring by way of a pro-jobs business agenda that will help grow Ohio’s economy? The Ohio Chamber’s public policy agenda will be finalized in FREE WORKPLACE December, but we will be advocating reform proposals in several areas. According to Quest Diagnostics, One is in the area of workers’ compensation reform. Although Ohio the industry leader in drug testing, employers have recently benefited from sound fiscal management by the the rate of positive workplace drug Bureau of Workers’ Compensation, culminating in employers receiving tests has steadily and significantly significant refunds, little has been done to close loopholes and address decreased since the late 1980s, with harmful court decisions that expand benefit eligibility beyond statutory the exception of a slight increase in intent. The Ohio Chamber will be pushing for cost-saving reforms that 2003 that fell again the following year. ensure our system is competitive with employer costs in other states. Then in 2013, the rate of positive tests for illicit drug use increased and has Perhaps at the top of the priority list is fixing the state’s confusing and not stopped increasing since, with burdensome employment discrimination statutes. Ohio’s laws are an outlier, the rate of positive tests reaching a both among states and when compared to similar federal statutes. That’s why 10-year high in 2015. we’ll be advocating for legislation to improve these statutes by increasing uniformity with federal law, thus allowing for greater predictability and • 2013 – 4.3 percent increase in rate consistency while maintaining robust protections for employees. of positive tests from the year prior compromise their ability to produce and work safely. Spell out measures Another ongoing threat to a healthy economy is the proliferation of statewide • 2014 – an additional 9.3 percent the company will take to ensure ballot issues. Mostly pushed by out-of-state groups pursuing political increase this safe practice and what agendas, statewide ballot issues frequently put the business community • 2015 – an additional 2.6 percent employees should do if they think on the defensive, forcing difficult and costly campaigns to fight them off. they have a problem. These campaigns waste resources, and something must be done. increase This rise is cumulative across • Supervisor training. Train TACKLING THE STATE’S OPERATING BUDGET several categories of drugs. The supervisors how to recognize Action on these important reforms, however, will take at least a temporary greatest culprits are amphetamines, if an employee seems “off,” and backseat to enactment of the state’s operating budget. Always the most time- marijuana and heroin, and positive support them with training and consuming and comprehensive single piece of legislation during any two- testing for each has increased policy directives to know how to year General Assembly session, the next biennial budget, for fiscal years 2018 annually for the past five years. intervene. and 2019, stands to be the tightest, most difficult budget since Kasich’s first However, prescription drug abuse has budget in 2011, when the state was staring down a budget shortfall of nearly • A plan for assistance. Identify eased; for example, nationally, Quest’s $8 billion. services for employees or their survey illustrates that the oxycodone family members who need help The governor will take the lead on the budget, as he is required to propose a positive rate has declined each year with misuse or abuse issues. These balanced executive budget that will serve as the starting point for legislative since 2011. can include: action. He is expected to reveal his proposal in early February. Ohio’s diverse efforts over the past six – Publicly subsidized community years have shown marked progress services, which we are all Perhaps at the top of the priority list is in combatting the prescription supporting with tax dollars drug abuse problem. Since the Ohio fixing the state’s confusing and burdensome Bureau of Workers’ Compensation – Specially negotiated implemented a pharmacy arrangements with a private employment discrimination statutes. management program in 2011, the service provider total number of opioid overdoses for injured workers has declined by 41 – A broad-brush Employee It comes at a time when many national economists foresee an increased percent, and the average daily opioid Assistance Program paid for probability of a recession, and current fiscal year revenue collections are load per injured worker in 2015 was through a contract (generally already coming in under projections. Through the end of October 2016, below 2003 levels. $20 to $60 per employee) between Ohio’s tax collections are $160 million, or 2.2 percent, below forecast. This the EAP and the company, includes shortages in nearly every major tax category, including sales, Unfortunately, taking the place of covering prepaid counseling commercial activity and personal income, and we’re only a third of the way prescription medication abuse, the sessions for employees and their through the fiscal year. rate of the use of heroin (whose high family members is akin to that offered by prescription On top of these troubling trends and general economic concerns, the state pain meds) is increasing. The number With each of these options, the proven starts out behind the eight ball in another significant way. That’s because the of employees testing positive for return on investment increases. Ohio sales tax levied since 2009 on services purchased by Medicaid managed heroin has increased 146 percent • Employee education. Educate care programs is not permissible under federal guidelines, and the state will since 2011, according to the survey. employees about avoiding the have to devise another tax policy that is. This sales tax generates $1.1 billion in And the Centers for Disease Control life damage that can be caused by state tax revenue and nearly $400 in piggyback county tax receipts – in other and Prevention reports that heroin drug misuse and abuse (whether words, we’re looking at a $1.5 billion shortfall. As a result of these challenges, use jumped 63 percent between accidental or by purpose), the state agencies have been directed by the Kasich administration to limit their 2012 and 2013, with some of the company’s policy and the resources budget requests to a maximum of 90 percent of FY 2017 appropriations. greatest increases occurring that the company has researched, in demographic groups with identified and/or is making Next year’s budget process will also likely include a continuation of the tax “historically low rates of heroin policy debate that has occurred virtually every year since Kasich took office available to the worker and/or their use: women, the privately insured family members. in 2011, with the governor relentlessly pursuing reductions in personal and people with higher incomes.” income tax (PIT) rates. • Drug testing (as appropriate). WHAT ACTIONS CAN AN Institute a systems-presence Although the Ohio Chamber generally supports reducing the state’s PIT EMPLOYER TAKE? testing program (i.e. drug testing) rates, our primary tax policy objective is to ensure that any tax policy changes With the overwhelming increase so when an employee seems off, are balanced, do not raise broad business taxes or impose other harmful tax in drug use, coupled with a low rate the company has an objective, shifting onto Ohio businesses and contribute to a more consistent business of unemployment (Ohio’s was 4.7 scientific approach to verifying operating environment that promotes job growth. We will continue to give percent as of August 2016), many if drugs are involved. Taking any voice to this perspective throughout the budget process. employers are challenged to hire and adverse employment action should keep drug-free employees. However, be based on trained management With a new president in Washington, there’s a sense of optimism that there are best-practice measures one of the biggest challenges stifling greater economic growth — costly, observation, objective standardized employers can take to support both practices and scientific verification burdensome and intrusive federal regulations — will come to a halt and even their workers and their bottom lines. be reversed. This would mean that additional steps to grow Ohio’s economy, that drugs are involved. (Although such as the ones discussed above, will be that much more beneficial to • Written company policy. Publish an employer receives a test Ohio businesses. the company’s position on result with an opiate category, it employees coming to work or is important to understand that operating under the influence Continued on page 5 of a drug — any drug — that can

4 SHARE SUCCESS.

By Brian Hall, attorney, Porter, Wright, Morris & Arthur LLP ‘CAT’S PAW’ DECISION HIGHLIGHTS INVESTIGATIONS BEFORE TERMINATION

In 2011, the U.S. Supreme Court, in Staub v. Proctor Hospital, 130 S.Ct. 2089 (2010), endorsed the “Cat’s Paw” theory of liability in an Uninformed Services Employment & Reemployment Rights Act (USERRA) case. The theory originated with Judge Richard Posner in a Seventh Circuit discrimination case and is derived from an Aesop Fable, in which, according to Posner, “A monkey induces a cat by flattery to extract roasting chestnuts from the fire. After the cat has done so, burning its paws in the process, the monkey makes off with the chestnuts and leaves the cat with nothing.” The analogy has been used by subsequent courts to hold an employer liable for an employee termination that is based on information from a supervisor with discriminatory or retaliatory intent, even if the biased supervisor did not participate in the adverse employment decision. A Second Circuit decision issued at the end of the summer took the “Cat’s Paw” theory one step further when it upheld an employer’s liability under Title VII when the adverse employment decision was influenced by the retaliatory intent of a low level co-worker who had no supervisory responsibilities.

Here’s what happened in Vasquez v. Empress Ambulance Service, Inc., ___ F.3d ___, 2016 U.S. App. LEXIS 15889 (2d Cir. 2016). The plaintiff’s co-worker sent her a sexually graphic photograph via text message. Upon learning that the plaintiff intended to complain to management about his behavior, the co-worker somehow manipulated the text messages on his phone to make it appear that the plaintiff was a willing participant in sexual banter and, in fact, that he was the one who had been sexually harassed by the plaintiff. In reliance on the co-worker’s “evidence,” the employer terminated the plaintiff for making a false claim of harassment. In an effort to avoid termination and to have her own case heard, the Therefore, the court would not permit the plaintiff offered to show the employer her cell phone in order to refute her employer to escape liability based on the co-worker’s account of what happened, but the employer apparently was not interested. The plaintiff then brought this action in federal district decision-makers’ own purported lack of court against the employer alleging that she was retaliated against for her complaints about sexual harassment. unlawful intent, even though the plaintiff’s The district court dismissed the complaint on the grounds that the co-worker was a low-level employee with employer could not be held liable for the retaliatory intent of a low-level employee who had no decision-making authority. The Second Circuit no supervisory authority. disagreed, however, stating that, “An employee’s retaliatory intent may be imputed to an employer where, as alleged here, the employer’s own negligence gives effect to the employee’s retaliatory animus and causes the intent. Therefore, the court would not permit the employer to escape victim to suffer an adverse employment decision.” liability based on the decision-makers’ own purported lack of unlawful intent, even though the plaintiff’s co-worker was a low-level employee In short, the Second Circuit faulted the employer for conducting a with no supervisory authority. In other words, the court concluded negligent investigation into the plaintiff’s complaints and concluded that that the employer’s own negligence provides an independent basis to the employer should have known of the plaintiff’s co-worker’s retaliatory hold it accountable for its employees’ unlawful conduct.

TAKEAWAYS Although this case arises in the Second Circuit, which covers New York, Connecticut and Vermont), all employers would be wise CONTINUED FROM PAGE 4 to learn a lesson from the Vasquez decision; that is, they should conduct a thorough and impartial investigation, particularly when an adverse employment decision will turn on information provided THE EMPLOYER’S ROLE IN PROVIDING A DRUG-FREE WORKPLACE by a co-worker. At a minimum, employers should consider whether the co-worker unless it has made arrangements (OhioMHAS) is currently might have a discriminatory, retaliatory or other biased motivation with its drug testing provider, it working with 18 Ohio counties to for providing the information and will want to test the accuracy may not be testing for the drugs coordinate access to the efficient, and completeness of the information being provided before making of abuse being featured in the affordable services needed, any decision. Part of conducting a meaningful investigation also media, such as Oxycodone (e.g., especially by smaller employers, necessarily will include giving the employee about to be terminated OxyContin®) and Hydrocodone to implement and maintain an opportunity to be heard and to demonstrate the bona fides of his or (e.g., Vicodin®.) drug-free operations. Contact her position. Had the employer in Vasquez permitted the plaintiff to your local chamber of commerce, defend herself, it likely could have avoided what appears to be a Overall, we are describing the your local treatment and recovery nasty lawsuit. elements that comprise a drug- services board (e.g. ADAMH free workplace program, which in board) and ask if it is involved Also, although Vasquez involved an employee termination, the Second today’s world is a necessary risk with the Drug-Free Workforce Circuit’s opinion will apply to any adverse employment decision, management program (economic Community Initiative, or contact whether it be the denial of a promotion, or forms of discipline other and safety) for every business the Office of Treatment and than termination. In addition, although Vasquez was a retaliation case, operator. The smaller a company Recovery, OhioMHAS, to ask it also will apply to cases of alleged discrimination. Finally, the Staub is, the more likely it will inherit how you can get involved. case that started it all was filed under USERRA, so there is no reason its unfair share of drug abusers. to believe that the logic of the Second Circuit in Vasquez won’t extend Why? Because the rate of use is Working Partners is a nationally to retaliation cases filed under the Family Medical Leave Act or other increasing, and smaller companies recognized expert in drug-free similar legislation that provides for a cause of action for retaliation. have less time and fewer resources workplace issues. It is a member to focus on drug misuse or abuse of the Ohio Chamber of Commerce Brian Hall is a partner with Porter Wright Morris & Arthur LLP in until it becomes an acute problem and can be reached at www. Columbus. He helps companies effectively manage their full range requiring attention. workingpartners.com or of workforce issues. You can reach Hall at (614) 227-2287 or (614) 337-8200. [email protected]. The Ohio Department of Mental Health and Addiction Services

WWW.OHIOCHAMBER.COM 5 NOVEMBER/DECEMBER 2016

By Samantha Cotten, Director, Public Policy Communications By Brooke N. Bates FROM BURNING THE CANDY MAN CAN CANDLES TO How Tom Scheiman has grown Sweeties into the largest candy store in the country BURNING WASTE Tom Scheiman’s office door opens 2016 All for Ohio series a success into the aisles of Sweeties Candy, the largest candy store in North America. Customers often pop in to From August through October, the Ohio Chamber ask his help recalling the name of a of Commerce embarked on an effort to further nostalgic treat from their childhood, engage our members by visiting companies across and Scheiman happily guides them the state. The All for Ohio series was designed to through 16 aisles of colorful treats, facilitate critical conversations among business 300 bulk candy bins, a 30-foot-long leaders, Ohio Chamber staff and state legislators. wall of jelly beans and a truckload The tours fostered in-depth conversations of saltwater taffy. That totals regarding how policy decisions impact the more than $3 million in delicious operations of Ohio businesses. Samantha Cotten inventory, with more than 4,500 “Through this tour, we were able to engage in a more detailed discussion sweets in stock, weighing more than “I made a major with our members and further understand how legislative issues half a million pounds. affect each business, as well as have an open discussion with state “Nobody can say they offer more decision to invest in my policymakers,” says Keith Lake, vice president of government affairs at candy than we do in variety or the Ohio Chamber. business, start building inventory levels,” says Scheiman, This year, six companies participated in the All for Ohio tour. who has been selling candy for 46 inventory and taking years — since he was 15. • Vantiv, Cincinnati market share — and it • Root Candles, Medina Sweeties evolved from a Cleveland- • Heritage Thermal Services, East Liverpool based wholesale candy company really paid off.” • Petland, Chillicothe that started in 1950 as Bag a Sweet • Ariel Corp., Mount Vernon Candy Co. When Scheiman bought Tom Scheiman, owner • Dynegy, Beverly the business with his wife, Judi, in b.a. Sweetie Candy Co. 1982, he inherited four employees Based in Medina, Ohio, Root Candles manufactures premium quality in a 1,200-square-foot garage. He aisles for more convenient shopping. religious and consumer candles. relocated the business to a larger facility and added retail, opening “Since we moved into this facility, “Root Candles genuinely appreciates the All for Ohio tour visit by the 10 more stores, which closed when foot traffic is up 50 percent,” Ohio Chamber,” says Brad Root, president of Root Candles. “The direct recession struck. After a 1993 name Scheiman says, citing 400,000 retail discussion was constructive. Being one of the Ohio Chamber’s founding change to b.a. Sweetie Candy Co. and customers in 2016 — not including 55 companies, we have seen strong efforts over the past 12 decades another move to a larger location, the 45,000 golfers or the diners to make sure that Ohio has a strong business and economic climate. Scheiman focused on growing one who visited Sweeties Soda Shoppe, For Root, the close working relationship of the Ohio Chamber with its store instead of several. which opened next to the retail store members and with our Ohio Legislature is vital to the future success of in May 2016. The farm-themed ice manufacturing in Ohio.” The next recession was a turning cream parlor serves 36 flavors of point, proving his commitment Although the companies on the tour vary in size and industry, they premium ice cream (made on site), to grow his company, even as all face similar challenges when it comes to state policies impacting 36 toppings and 200 soda varieties. wholesale customers closed. their business. Topics ranged from workforce development issues to At peak season, all three businesses employ 62 people. the legalization of medical marijuana, unemployment compensation “I made a major decision to invest solvency, tax climate and the regulatory environment at the state level. in my business, start building “So far, the Soda Shoppe business inventory and taking market Heritage Thermal Services provides advanced incineration services for has been incredible, but not without share — and it really paid off,” wastes generated by manufacturing and services industries and is one of its challenges,” says Scheiman, who Scheiman says. “From that point, only eight facilities of its kind in the United States. invested $1.1 million, including we’ve exploded.” $250,000 in kitchen equipment “The Ohio Chamber of Commerce is a strong voice for small business and $500,000 in décor including NOSTALGIC AND NEW on topics ranging from changes with OSHA rules to taxation to health custom-made chicken coop lights, Most of Sweeties’ business is insurance to environmental affairs,” says Stewart Fletcher, vice milk can barstools and swinging still wholesale — supplying 250 president of operations and general manager at the Heritage facility. wooden seats. regional retailers — but it’s best “We value their contributions greatly as an advocate for business.” known for stocking hard-to-find “The whole reason for our success The series was a great way for legislators across the state to get a nostalgic candies. is that we sell at value pricing, so firsthand look at how their decisions affect the business community. I wanted to do the same in the It’s one of our largest-selling Additionally, it allowed for these decision makers to build better Soda Shoppe,” he says. “I didn’t product categories,” Scheiman says, relationships with members located in the districts they represent. It want to overcharge, but because “although it’s dipping every year as also showed legislators that despite the diverse nature of Ohio Chamber of the amount invested, the return our customers get older.” members, there are important decisions that impact all businesses, isn’t as great as I wanted it to be. regardless of size, industry or location. Sweeties thrives by continuing to It doesn’t mean I’m disappointed adapt as consumer tastes change. in its revenue. I’m disappointed in The legislators and candidates who attended the visits were: my expenses, but you have to take “You have to be in tune with what’s the risk.” • Sen. Joe Uecker • Rep. Darrell Kick going on,” says Scheiman, who’s • Sen. Bill Seitz • Rep. Tim Ginter adding organic candy as customers Profits from the candy warehouse • Sen. Bill Coley • Rep. Gary Scherer seek better-for-you options. He and golf course will support the • Rep. Margaret Conditt • Sen. Bob Peterson also offers single-color candy for Soda Shoppe while Scheiman • Rep. • Rep. Margaret Ann Ruhl weddings, selling $1 million in makes adjustments. As soon as • Rep. Jonathan Dever • Sen. color-specific sweets last year. Golfland’s season ended in October, • Rep. Ron Maag • Sen. construction crews began updating • Rep. Lou Terhar • Rep. Scott Ryan Making room for more candy, the course for 2017. Shortly after, • Sen. Larry Obhof • Sen. Troy Balderson Sweeties began building a new the retail storefront underwent • Rep. Steve Hambley • Rep. Andy Thompson candy warehouse on Brookpark a makeover, as Sweeties continues Road in Cleveland in 2012, and to grow. For more information on the All for Ohio tour, visit our blog allforohio. Sweeties Golfland mini-golf com and read more on the individual visits. If your company is interested course debuted that summer. The “It’s all about controlled growth,” in participating in the 2017 All for Ohio tour, please contact Samantha 40,000-square-foot store opened in Scheiman says. “We’re still a really Cotten at [email protected]. January 2015 with twice as much small business; we’re just large in space as the former location, higher what we do.” ceilings for stacking, loading docks for efficient shipping and additional

6 STAY CONNECTED.

THE OHIO CHAMBER 2. IN ACTION 1. 1. In September, the Ohio Chamber and several members of the Ohio General Assembly visited member company Vantiv in Cincinnati.

2. Our Chamber Choice reception in September was so successful that all of our Chamber Choice candidates won their races in November!

3. HR Academy Symposium hosted by 3. 4. the Saint Clairsville Chamber and Nelva Smith with Steptoe-Johnson was the presenter.

4. Bill Edwards and Mark Katz with Ulmer and Berne LLC present an Ohio Chamber HR Academy Human Resource and Employment Law seminar in October.

We’d like to recognize all of the new members who have joined the Ohio Chamber of Commerce this year (as of Nov. 3, 2016). We’re All for Ohio.

American Airlines Inc., Phoenix, AZ Frutarom USA Inc., Cincinnati, OH Ohio Valley Painting Co. Inc., Dayton, OH American Interiors Inc., Toledo, OH Glazer’s Distributors of Ohio Inc., Columbus, OH Paragon Systems Inc., Herndon, VA AOZ Trucking Inc., Brunswick, OH Great Work Employment Services, Akron, OH Petland Inc., Chillicothe, OH Assembly & Test Worldwide Inc., Dayton, OH Hasty Service Inc., Toledo, OH Precision Mechanical Inc., Parma, OH Baltimore Truck & Trailer Inc., Hebron, OH Ziegler Heating Co., Ashtabula, OH Premier Ag Co-op Inc., Columbus, IN Barr Engineering Inc., Columbus, OH HNTB Ohio Inc., Columbus, OH Reed Smith LLP, Philadelphia, PA Bird Enterprises Inc., Millersburg, OH Honey Baked Ham Co., Alpharetta, GA Ridge Corp., Pataskala, OH Bison Rapids Investments LLC, Defiance, OH Jack’s Heating Air Conditioning & Plumbing Inc., Findlay, OH S&K Mold & Tool Inc., Tipp City, OH Boscov’s Department Store LLC, Reading, PA Jags Inc., Portsmouth, OH Sawmiller LLC, Haydenville, OH C & J Well Services Inc., Charleroi, PA Komyo America Co. Inc., Troy, OH Schroeder Masonry Inc., Leipsic, OH Care Equipment LLC, Zanesville, OH KTM Enterprises Inc., Greenville, OH Sensical Inc., Solon, OH Cedar Craft Products Inc., Blacklick, OH L & M Equipment Co. LLC, Dayton, OH Sharonbrooke Inn Management Co., Newark, OH City Materials Services Inc., Youngstown, OH L B Brunk & Sons Inc., Salem, OH Slagle Mechanical Contractors Inc., Sidney, OH Cl Products International LLC, Leesburg, OH Lewis Jewelry Distributing Co. Inc., Beachwood, OH Southern Columbiana County Regional Chamber of Coit Services of Ohio Inc., Cleveland, OH Licking Metropolitan Housing Authority, Newark, OH Commerce, East Liverpool, OH Columbus Center for Human Services Inc., Columbus, OH Logan Home Enterprises Inc., Kettering, OH Strongsville Hospitality LLC, Fairview Park, OH Columbus Fish & Seafood LLC, Columbus, OH Lutheran Outdoor Ministries in Ohio, Westerville, OH Tee Jaye’s #10, Columbus, OH Comtech Global Inc., Columbus, OH Maple City Ice Co., Norwalk, OH Tee Jaye’s #3 LLC, Columbus, OH Davies Pharmacy Inc., Canton, OH Martha Cochrane McConville Home for Aged Women, TPC Wire and Cable Corp., Macedonia, OH Deerfield Construction Co. Inc., Loveland, OH Steubenville, OH Tri-State Processing Inc., Cincinnati, OH Double Eagle Club LLC, Galena, OH Metals USA Plates & Shapes Northeast LP, Ambridge, PA Truck One Inc., Newark, OH E&H Hardware Group LLC, Wooster, OH Miami Valley Housing Opportunities Inc., Dayton, OH Ulmer & Berne LLP, Cleveland, OH Fairhope Hospice & Palliative Care Inc., Lancaster, OH Moeller Family Trust, Cincinnati, OH Valley Personnel/Valley Transportation Inc., Fisher & Phillips LLP, Columbus, Ohio Nabors Corporate Services, Houston, TX Ashland, OH Fricker’s Bowling Green LLC, Miamisburg, OH New Albany Gardens & Care Center, Hilliard, OH Williams Co., Tulsa, OK Fricker’s North College Hill 107 LLC, Miamisburg, OH October Enterprises Inc., Eaton, OH Wright Tire & Auto LLC, Bowling Green, OH

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WWW.OHIOCHAMBER.COM 7 TIME FLIES WHEN YOU’RE HAVING FUN

As 2016 comes to an end, we wrap This fall, OCCPAC endorsed 60 issues. We will have new members up (no holiday pun intended) candidates running for the Ohio of the House and Senate to meet another year and another General House and 14 for the Ohio Senate. and new priorities to ensure a Assembly session. We have also Of those 74, seven were selected strong business climate. begun planning for 2017. as Chamber Choice candidates, as We will also be rolling out a they were in very competitive races. This year, on the legislative new membership portal, where All of these candidates won their front, we led the charge to fix our members will be able to receive respective races. We also endorsed broke and broken unemployment committee information, interact three candidates for the Ohio compensation system, ensured with other members, pay their Supreme Court. Our endorsements there would be employer membership investment and — whether for the General protections in medical marijuana register for events. Speaking Assembly or Supreme Court — legislation and advocated for the of events, our Annual Meeting help to ensure that actions that expansion of small claims court is set for May 2 at the Jo Ann impact Ohio’s business climate will caps. Our members testified against Davidson Theatre in the Riffe benefit the free enterprise system. costly health care mandates and for Center, with our Legislative making rules compliance easier for In July, our Executive Committee Reception immediately following small businesses. We championed members met for a brainstorming at the Sheraton Hotel. Our highly bills that would bring uniformity, session to discuss areas in which anticipated Policy Conference at fairness and efficiency to Ohio’s we can expand our advocacy and Salt Fork is Sept. 6 to Sept. 8. More employment discrimination membership efforts. Out of that information will be mailed and laws, and tax reforms that would meeting, we formed an Opiate emailed after the first of the year. remove tax uncertainty or repeal Task Force to look at what role The New Year also brings our 124th burdensome taxes. the Ohio Chamber should have year of servicing Ohio’s businesses. in dealing with the state’s opiate Politically, 2016 started off with the I’d like to take this opportunity to epidemic. From member input, we March primary, in which the Ohio thank all of our members for their are learning that this has become a Chamber of Commerce Political support and the support of our huge workforce problem. The task Action Committee (OCCPAC) mission. Remember, We’re ALL force is speaking to experts in the endorsed seven candidates in the for Ohio. field, and we are looking at ways House and six in the Senate. Ohio in which the Ohio Chamber can was at the center of the political play a role in providing education universe as our governor ran for or assistance. the nation’s highest office, and Ohio’s U.S. Senate race attracted As we move to 2017, we have begun national attention. preparations for our top advocacy

EDITORIAL POLICY POSTMASTER OHIO CHAMBER OF COMMERCE DESIGN AND PRODUCTION Articles written by guest columnists do not necessarily reflect the Please send address changes to Ohio 230 East Town Street Ohio Matters is published by position of the Ohio Chamber of Commerce. The Chamber’s position on Matters, Attn: Database Manager, Ohio Columbus, Ohio 43215-0159 Convero (formerly SBN Interactive) key issues will be clearly stated. The Ohio Chamber of Commerce does Chamber of Commerce, P.O. Box 15159, 614.228.4201 • 800.622.1893 835 Sharon Drive, Suite 200 not necessarily endorse the products and services advertised in Ohio Columbus, Ohio 43215-0159. Fax 614.228.6403 Cleveland, OH 44145 Matters. Articles can be reproduced, but only with permission from, and [email protected] 844-428-8844 • www.converoinc.com attribution given to, the Ohio Chamber of Commerce. For authorization, FOR MORE INFORMATION CONTACT www.ohiochamber.com Sue Ostrowski, Managing Editor please contact Ohio Chamber Vice President of Communications Julie Julie Wagner Feasel www.ohiobusinessvotes.com Lori Smith, Art Director Wagner Feasel at 614.228.4201. The Chamber reserves the right to Vice President of Communications reject advertising based on content and does not accept advertising [email protected] Katie Janoch, Advertising Sales that is in conflict with a position of the Chamber. 440.250.7073 • [email protected]

Ohio Matters is a bimonthly publication for members of the Ohio Chamber of Commerce. Subscription cost is included with annual dues.

THE HUMAN RESOURCE MANUAL IS WRITTEN BY OHIO ATTORNEYS AND PUBLISHED BY THE OHIO CHAMBER OF COMMERCE SPECIFICALLY FOR COMPANIES THAT HAVE EMPLOYEES IN OHIO.

With thanks to Squire Patton Boggs, an Ohio-based law firm steeped in employment law expertise, we offer a comprehensive HR Manual packed with information about employment law and human resource- related matters, all presented in an easy-to-understand manner. #ALLFOROHIO Just $99. Order online at www.hracademyohio.com, then click on Products, then HR Academy HR Manual.

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