A Publication of the Association of Business Texas Volume 27 | Issue 5 | May 2012 | www.TXBIZ.org Business Report

Endorsements for the May Primary WorkforceQ&A Early Voting Begins May 14. What must our compny pay an employee subpoenaed to appear The Business and Commerce Political Action Committee in court if that employee has no (BACPAC) Board has made its endorsements for the May paid leave time available? primary that begins with early voting in just a few days. (see page 2) You will notice that not every race has an endorsed candidate. In most cases, that’s because an endorsement wouldn’t make a difference in the primary. In a few cases the Board decided to wait until the run-off election to endorse a candidate because of the large number of people seeking the same office. register today

The Board will have more endorsements for the run-off election in those seats that 2012 TAB aren’t endorsed here, and will have a full list of endorsements for the November National Affairs Conference General Election. Join us in Washington, D.C. At the top of the ballot, the BAPAC Board endorsed former Governor Mitt June 6 and 7 Romney for President. “We feel that Governor Romney is the only contender that Every other year, TAB and its has business experience in this race, and we think that gives him an advantage members go to Washington, in handling the economic issues facing this country,” said Bill Hammond, Texas D.C. Association of Business President and CEO. “It is going to be extremely difficult to to meet with congressmen, senators and business experts. deal with the challenges of rebuilding the economy when federal spending running amuck, but the BACPAC Board strongly feels that Governor Romney can handle Special Guests: Congressman Paul Ryan those issues and get this country back on Congressman Michael Burgess, M.D. the right track.” Senator The BACPAC Board also endorsed Go to www.txbiz.org Lt. Governor in the for conference and hotel information U.S. Senate Race. Warren Chisum and Barry Smitherman have been endorsed for Railroad Commission, as is House Speaker Joe Straus in his contested primary race. TAB Mission “All of these candidates have shown that they care about the issues facing Texas To make the Texas business, either through their past voting business climate the records or through personal interviews best in the world. BACPAC endorses David Dewhurst for US Senate done with myself and members of my staff,” said Hammond. continued on page 3 Workforce Texas Q&A Business Report One of our exempt supervisors was subpoenaed Volume 27 | Issue 5 to testify out of town in a child custody dispute May 2012 between his sister and former brother-in-law. While the employee was subpoenaed to appear TAB Statewide officers on Monday, he was told by the judge to stand by, Rudy Oeftering, State Chairman and ultimately did not testify until Friday morning John Bass, Chair Elect Dale Young, Treasurer and was then released by the judge to leave. The Terri Ricketts, Secretary employee, who had no paid leave time available, Bill Hammond, President missed all week before returning from out of town TAB Team Contacts on Friday afternoon and working just two hours Sandra McGee, Senior Vice President Bob Nichols, before the end of the work day. How much of the Employment Services & Finance Bracewell & Giuliani LLP employee’s weekly salary are we required to [email protected] pay? Dan Cahalen, Senior Vice President Membership Development If you treat the employee as exempt under one of the white-collar exemptions [email protected] (executive, administrative or professional exemptions) to the Fair Labor Standards Act Aaron Cox, Vice President Chamber Relations (FLSA), the employee must receive his entire salary for that work week even though [email protected] the employee only worked two hours. Cathy DeWitt, Vice President The FLSA includes an exemption from the minimum wage and overtime provisions Workers’ Compensation, Tort Reform and Employment Relations for an individual employed in a “bona fide executive, administrative or professional [email protected] capacity” as defined in the FLSA. To qualify as exempt, the employee must satisfy Stephen Minick, Vice President certain tests regarding the nature of the employee’s duties, the amount of the Environmental Quality and Energy employee’s salary, and whether the individual is paid on a “salary basis.” [email protected] Kandice Sanaie, Governmental Affairs For an employee to be regarded as paid on a “salary basis,” that individual must be Manager paid a predetermined amount not subject to reduction because of “variations in the Insurance & Health Care quality or quantity of the work performed.” The worker must receive his or her full [email protected] Nelson Salinas, Governmental Affairs Manager salary for any week in which the individual performs any work subject to certain Education narrow exceptions provided for by regulations. [email protected] Generally, whole-day deductions from pay may be made when an exempt employee Robert Wood, Communications Director [email protected] is absent from work for one or more full days for personal reasons. However, absences Lori Buntin, Events Director for jury duty, attendance as a witness or temporary military leave are not regarded [email protected] as absences for the employee’s personal reasons. Accordingly, an employer cannot make deductions from pay for partial workweek absences of an exempt employee TAB Regional Offices occasioned by one of these activities. North Texas Area Mark Sadowski An employer can offset any amounts received by an employee as jury fees, witness fees [email protected] ~ (214) 906-3361 or military pay for a particular week against the salary due for that particular week Northwest Texas Area Marshall Jeffus without loss of the exemption. Most employers, however, find deducting for jury or [email protected] ~ (940) 642-5428 witness fees is not worth the bother given the very small amounts of those payments. Southeast Texas Area Miles Resnick Because there are a variety of traps associated with the FLSA “salary basis” rules, be [email protected] ~ (409) 363-1481 careful when considering making any kind of deduction from the salary of employees Russ Penson you treat as exempt under the executive, administrative or professional exemptions. [email protected] ~ (816) 286-9122 Ensure the deduction is specifically permitted under the FLSA regulations or do not Texas Business Report (ISSN0892-6816) is published on the 15th of every month by Texas Association of make the deduction. Business, located at: 1209 Nueces Street, Austin, TX 78701. Subscriptions are available at a rate of $2.00, Employment Relations questions? which is deducted from TAB members’ annual dues. Articles may be reprinted with permission. Legislative Don’t forget to call TAB’s Employment Relations Hotline advertising paid by TAB. Periodicals Postage Paid at Austin, Texas. for your next HR Question POSTMASTER – Send address changes to: 1.800.856.6721, ext. 164 or E-mail [email protected] Texas Business Report, 1209 Nueces Street, Austin, TX 78701 2 BACPAC Texas House Endorsements TAB BACPAC Primary Election Is May 29. Endorsements continued from page one Texas House: District 1: George Lavender District 83: Charles Perry President: District 2: Dan Flynn District 84: John Frullo District 3: Cecil Bell District 85: Lee Duggan Railroad Commission: District 4: Lance Gooden District 86: John Smithee Warren Chisum District 88: Jim Landtroop District 5: Bryan Hughes Railroad Commission: District 89: Jodie Anne Laubenberg District 6: Leo Berman Barry Smitherman District 7: Tommy Merritt District 91: Lady Theresa Thombs District 8: Byron Cook District 93: Barbara Nash US Senate: District 9: Wayne Christian District 94: Diane Patrick David Dewhurst District 10: Jim Pitts District 96: Bill Zedler US House: District 11: Chuck Hopson District 98: Vicki Truitt District 3: Sam Johnson District 13: Lois Kolkhorst District 108: Dan Branch District 4: Ralph Hall District 14: John Raney District 112: Angie Chen Button District 5: District 15: Rob Eissler District 114: Bill Keffer District 6: Joe Barton District 16: Brandon Creighton District 121: Joe Straus District 7: John Culberson District 18: John Otto District 122: Lyle Larson District 8: Kevin Brady District 10: Michael McCaul District 19: Mike Hamilton District 126: Patricia Harless District 11: Michael Conaway District 20: Marsha Farney District 12: Kay Granger District 21: Alan Ritter District 13: Mac Thornberry District 24: Greg Bonnen District 14: Randy Weber District 25: Dennis Bonnen District 17: Bill Flores District 28: John Zerwas District 19 Randy Neugebauer District 32: Todd Hunter District 21: Lamar Smith District 33: Scott Turner District 22: Pete Olson District 44: John Kuempel District 23: Francisco Canseco District 47: Paul Workman District 24: Kenny Marchant District 52: Larry Gonzales District 27: Blake Farenthold District 29: Gene Green District 53: Harvey Hilderbran District 31: John Carter District 55: Ralph Sheffield District 36: Mike Jackson District 56: Doc Anderson District 57: Marva Beck Texas Senate: District 58: Rob Orr District 2: Bob Deuell District 59: Sid Miller District 3: Robert Nichols District 4: Tommy Williams District 60: District 5: Charles Schwetner District 61: Phil King Early voting begins May 14 District 9: Kelly Hancock District 63: Tan Parker District 10: Mark Shelton District 64: Myra Crownover District 11: Larry Taylor District 66: Van Taylor District 127: Dan Huberty District 12: Jane Nelson District 69: James Frank District 128: Wayne Smith District 16: John Carona District 71: Susan King District 129: John Davis District 17: Joan Huffman District 72: Drew Darby District 130: Allen Fletcher District 18: Glenn Hegar District 73: Doug Miller District 132: Bill Callegari District 24: Troy Fraser District 75: Hector Enriquez District 133: Jim Murphy District 25: Jeff Wentworth District 79: Joe Pickett District 136: Tony Dale District 26: Leticia Van de Putte District 80: Tracy King District 138: Dwayne Bohac District 27: Eddie Lucio Jr. District 28: Robert Duncan District 81: Tyron Lewis District 144: David Pineda District 30: Craig Estes District 82: Tom Craddick District 150: Debbie Riddle District 31: Kel Seliger

3 Member Profile Heldenfels Enterprises, Inc. of the State’s most high profile structures, including Cowboys Stadium in Arlington and Reliant Stadium – Success From Ships To in Houston. It also gave rise to the company’s Building Systems Division in 2007. Headed by Gil Heldenfels, Stadiums the new Division is focused on delivering innovative Heldenfels Enterprises, Inc. was founded as the building solutions that capitalize on the inherent successor to a prominent South Texas family business durability, sustainability and speed of precast concrete. backed by nearly a century of construction experience Although Fred and Gil Heldenfels represent a new era – from ship building to highway construction. Today, of brothers in the business, they hold firm to the ideals the company specializes in the manufacturing and of the family members that preceded installation of precast/prestressed concrete them. The company’s mission statement is structures for the highway, marine, Gil Heldenfels is proud to be faithful stewards through integrity, industrial and building construction to serve as a TAB board dependability, and innovation for both markets. member; an organization their customers and communities. Outside Its predecessor, Heldenfels Brothers, of the business, the brothers adhere to this with unmatched was founded in 1909 by brothers F.W. mission in various ways, including public Heldenfels Sr. and C.A Heldenfels as a influence when it service, community involvement and lumber materials business in Beevillle, comes to shaping the support of higher education. Texas. The two early entrepreneurs moved legislation affecting our Being members and supporting TAB to Rockport to expand into shipbuilding represents yet another way they practice at the start of World War I, with a contract business and regulatory good stewardship for Texas. Gil Heldenfels from the Federal Government to build environment and is proud to serve as a TAB Board wooden, steam powered cargo vessels. keeping Texas a beacon Member. He says that the organization is After the war, they began dredging oyster for business. unmatched when it comes to influencing shell from the shipyard to be used as road and shaping the legislation that affects his base, thus enabling their first foray into business and regulatory environment and road construction, an area where the Heldenfels name keeps Texas a beacon for business. Texas has been a great would make a significant mark in coming years. place for the Heldenfels family to do business for over By 1936, F.W.’s three sons had joined the business and 100 years and TAB has been working diligently to keep helped expand it into the construction of military bases, it that way for over 85 years. airports and ever-larger highways. As their sons and grandsons joined them, Heldenfels Brothers continued broadening into new markets and capitalizing on technological innovation, always maintaining the standard of excellence associated with the family name. In 1995, Fred Heldenfels IV formed Heldenfels Enterprises, Inc. and bought the assets of the company’s precast/prestressed concrete division. With two manufacturing plants in Texas, one in Corpus Christi and one in San Marcos, Heldenfels Enterprises maintains the Heldenfels presence in traditional construction markets – highway, marine and industrial – while continuing the tradition of building on technological advances to expand into new markets.

One of those new markets - stadiums and arenas – has Cowboys Stadium in Arlington allowed the company to play a key role in building some

4 Can Jobs And A Lizard Go Together? Quotes Plan Seeks To Protect Drilling, Jobs And The Dunes Sagebrush Lizard This plan accomplishes The Texas Association of Business endangered list. That is when a “the one essential thing (TAB) has been one of the groups decision from the U.S. Fish and that is critical to Texas in meetings with the Comptroller’s Wildlife Service is expected. Having — the assurance that Office to come up with a plan to this plan in place will reduce the oil and gas exploration both protect the Dunes Sagebrush uncertainty businesses will face if and production can that happens. Lizard (DSL), and keep oil and gas continue regardless production going strong. Southwest Regional Director of the outcome of a “We’re not saying that the lizard with the U.S. Fish and Wildlife listing decision for the should be put on the endangered Service, Dr. Benjamin Tuggle, told lizard. species list,” said Bill Hammond, the members that the goal is to – ”Bill Hammond in TAB President and CEO. “I think it maintain economic activity while the Texas Tribune, testifying on the Texas makes sense, however, to have a plan still protecting the lizard. Oil and Conservation Plan in place to protect lizard habitat and gas companies remain concerned, allow drilling however, and to continue argue that in case the putting the The jobs of the future, federal lizard on the “the jobs that are being government endangered created now, are going species decides to to require a higher level declare it list would of thinking and an endangered.” endanger production. ability to do math. On April 30 ” Texas isn’t – Bill Hammond in the Hammond the only state Houston Chronicle, testified Dunes Sagebrush Lizard talking about new math facing this standards adopted before a problem, as by the State Board of Texas Senate oil fields in New Mexico could also Education. subcommittee hearing to discuss the be hurt if the lizard is put on the list. Texas Conservation Plan in Odessa. State Comptroller Susan Combs “This voluntary plan accomplishes testified during the hearing that the goal of ensuring oil and gas she too doesn’t think that the DSL production can continue, whether “The business should be put on the endangered list the lizard is listed or not,” said community in Texas because there isn’t enough data to Hammond. “That is critical not just pays for roughly two- support that listing. for the economy of , it is thirds of the cost of critical for the economy of the entire education in Texas, Participating in the Texas state.” and we are the ultimate Conservation Plan would be voluntary. It would mean that It is also critical for Texas’ budget. consumer of the there would be no further land That includes the much talked system. They are our use restrictions, other than those about “Rainy Day Fund” which future employees. is replenished with oil and gas ” imposed under the voluntary – TAB President Bill plan, if the lizard is placed on the tax money. Without that fund Hammond in the Austin continuing to grow, the State American-Statesman endangered species list. speaking about TAB would have no financial safety net. joining a school funding The public should know by Having that safety net in the face of lawsuit. sometime next month whether exploding Medicaid and education the lizard will be added to the costs is vital. 5 1209 Nueces Street Texas Business Report Austin, Texas 78701 MAY 2012 (512) 477-6721 phone (512) 477-0836 fax www.TXBIZ.org

Talk AboutBusiness In Education, Efficiency Matters Bill Hammond, TAB President

In business, being efficient in the The questions for me are pretty varies widely. At least knowing that way that we operate and the way that simple. Are school districts using every dollar is going where it should we spend money is the difference money efficiently? What steps can be and few dollars are being wasted will between staying in business and going taken to ensure that they are using give us a clearer picture of how to bankrupt. money efficiently and getting every make the system fairer. dollar possible into the classroom? We aren’t sure that’s the case with By 2025, we need 60 percent of all For example, it costs up to $90,000 public education. We all know students to graduate career or college to fire one bad teacher in the education is expensive, and many ready. Today that number is around Houston school district because of people will argue that to fix education 25 percent. The graduation rate in the way current Texas contract law is it takes lots more money. However, Texas is only 65 percent. That means written. That is certainly something up until this last legislative session, the drop-out rate is a statewide lawmakers could take a look at to we have spent lots more money, average of 35 percent. Texas will improve efficiency. Charter schools but outcomes haven’t improved not have the educated workforce also appear to do a better job for less concurrently with the increase in that it needs without some huge money dealing with at-risk students, spending. You also can’t really make improvement. The question is: will a yet the State limits the number of the argument that money is the issue, system that runs more efficiently help charter schools. Removing that cap when you haven’t looked at whether us reach that goal? I certainly think so. and allowing for more charter schools you are spending that money as might also be a way to improve According to a Comptroller’s report, efficiently as possible. efficiency. It is absolutely essentially (the Financial Allocation Study It’s not just school districts fault. for the taxpayers of Texas, and our for Texas) in the last decade total There are some requirements in state future workforce that this issue be spending rose almost five times as fast law that can cause school districts to discussed by the court. as enrollment; yet these are the results spend money they really don’t have to we see. People are fond of pointing When everything is said and done, be spending. to the cuts of the last legislative and we know money is being spent session, but they fail to recognize the That is why TAB has joined a lawsuit, efficiently, then we can make far more enormous increase in spending before asking a court to look at efficiency intelligent budget decisions, both at that, with few results to show for it. in education. Never before have the state and local level. It will be far All of this is why answering the simple the courts weighed in on that issue, easier to balance spending between question “are we spending the money because never before has anyone asked school districts as well. Even with all already in the system efficiently,” is that question. The plaintiffs, who of the efforts over the years to equalize so very important before we move include parents representing their funding, there really is no such thing. forward with the debate on the bigger students, in this lawsuit are asking. What districts spend per student question of the finance system itself.