Economic Outlook 2020 Bettering Ohio’S Business Climate Pro-Business Policies in 2020 SHARE SUCCESS

OHIOCHAMBER.COM JANUARY / FEBRUARY 2020

GET INFORMED. 1 Economic outlook 2020 Bettering Ohio’s business climate Pro-business policies in 2020 SHARE SUCCESS. 4 Looking ahead to election year 2020 Promoting Ohio products internationally Notes from the Research Foundation Interns help businesses boost international sales STAY CONNECTED. 6 Drug-free policy must-haves Nonbusiness use of company email An Official Publication of The Ohio Chamber of Commerce Chamber website redesign New members A profile of Ohio Chamber members By James Investment Research Inc. ECONOMIC OUTLOOK 2020 This is a tale of two economies. We find a divergence between confident consumers and wary businesses. The consumer, buoyed by a low unemployment rate, decent wage growth, higher net worth, lower debt service and a rising stock market continues to spend. The business sector, on the other hand, has sharply pulled back on Figure 1 Figure 3 investments. Industrial production and the Institute for Supply Management (ISM) manufacturing survey are in territory usually associated with a contracting economy. (See figure 1.) This is important to the state of Ohio because the largest portion of Ohio’s GDP is manufacturing. At the same time, job openings and manufacturing payrolls here have been slipping. Lastly, trade tensions and global economic weakness are undermining Figure 2 Figure 4 overall business confidence. This tug of war will only end if the In the end, we believe the consumer will consumer can convince businesses to carry the day, so we are not likely to see a reverse their negativity as they did in recession in the coming year. 2015 and 2016. The other unfortunate possibility is that businesses start cutting jobs, which would erode consumer confidence. However, we expect sluggish economic the momentum of growth here and abroad. (See figure 2.) the stock market While late in the economic cycle, is still positive. workers’ pay is still rising faster than STOCKS consumer prices, and almost everyone Bull markets rarely die of old age. Corporate who wants a job has one. The outlook This is good, because the current stock profit growth for the consumer sector remains solid; market rally, which began in March has stagnated Figure 5 the manufacturing sector is facing 2009, is the longest bull market in since 2011, so We are finding some relative value some challenges because of tariffs and history. It has also produced one of corporations have been buying back opportunities in the finance and geopolitical uncertainties. the highest 10-year total returns on shares to increase earnings per share. energy sectors. Due to the lateness the S&P 500. (See figure 3.) in the economic cycle and the In the end, we believe the consumer Corporate stock repurchases have amounted to $2.4 trillion over the popularity of passive investing, we will carry the day, so we are not likely As a result, valuations are now believe large stocks should continue past 10 years, one of the reasons the to see a recession in the coming year. extremely elevated. Fortunately, to advance, but smaller stocks offer market had such strong returns. opportunities. International stocks (See figure 4.) have underperformed U.S. stocks In addition, low interest rates have for many years, but valuations are allowed corporations to issue debt to very attractive in some developed repurchase shares, which then boosts and emerging market. This provides earnings per share. Unfortunately, potential opportunities. these extreme corporate debt levels Overall, we expect modest gains in pose a risk for investors. the market, and we should see some rotation into unloved areas. Typically, this phase of the presidential cycle is favorable for stocks. However, James Investment Research is due to the uncertainty about the trade a member of the Ohio Chamber of war and impeachment, stocks may Commerce. Reach it at (937) 426- have already enjoyed most of this 4640. Visit its website at http:// benefit in 2019. See( figure 5.) www.jir-inc.com.

WWW.OHIOCHAMBER.COM 1 In 2019, we all worked toward greater outcomes. Together we all shared greater success. In 2020, we look forward to even more accomplishments. We’re all for Ohio.

Thank you for your membership with the Ohio Chamber of Commerce. By working together, we are going to make this New Year Ohio’s best yet as we bring you: • A redesigned website • Cost-saving member services • More educational opportunities • Valuable information on the 2020 election • An informative Annual Meeting • A voice at the Statehouse And we are 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 Gov. Mike DeWine BETTERING OHIO’S BUSINESS CLIMATE Ohio is a great • We also continue to work with • In October, Husted traveled to friendly state. The initiative, overseen place for JobsOhio and its regional partners London to finalize a deal with the by the lieutenant governor and advised businesses to to bring investment and new jobs London Stock Exchange Group’s by the Small Business Advisory succeed. We are to the state. During the first three Elite program to open its first Council, reviews Ohio’s regulatory located within quarters of 2019, JobsOhio finalized American headquarters in Cleveland system to eliminate duplicative rules a day’s drive of 206 projects, with 16,086 new job in 2020. The Ohio headquarters will and regulations that stand in the 60 percent of commitments and 33,839 retained provide small- to medium-sized U.S. way of job creation. When we took the population jobs, for a total of $2.91 billion in companies access to the skills and office, there was a backlog of 1,233 of the U.S. and annual payroll. Additionally, new networks to help them reach the next rules awaiting attention. Today, the Canada. And and existing companies made $4.85 stage of growth. backlog has been cleared, and we are Ohio has an eager and well-trained billion in total capital investment • I also met with Jason Kenney, the looking at creative ways to improve the workforce, coupled with a culture of commitments. premier of Alberta, and Doug Ford, regulatory environment in Ohio. innovation. Since taking office last the premier of Ontario, in the fall to • We returned dividends of $1.5 billion Meanwhile, we have unfinished January, Lt. Gov. Jon Husted and I promote Ohio’s trade relationship to Ohio employers following strong business to attend to on our STRONG have been driving that point home, with Canada and the two provinces. returns on investments by the Ohio Ohio violence prevention initiative from Cleveland to Cincinnati and from Canada was Ohio’s largest export Bureau of Workers’ Compensation. and its related bill, which protects London to Tokyo. During the past year, This is in addition to a historic market in 2018. constitutional rights and enhances we have been working hard to make the cut in rates for public and private >> Generating opportunities state laws in a way that will protect business climate better by: employers. through programs and incentives. our communities and help those who >> Making Ohio the best place in • We also maintained the Business Those who invest in the 320 qualified are a danger to themselves and others. the Midwest to start and maintain Income Deduction, which allows opportunity zones designated in Ohio The bill, sponsored by Sen. Matt Dolan, a business. business owners to take the first by the U.S. Treasury as part of the R-Chagrin Falls, is making its way • My administration is promoting $250,000 of their income tax-free. Tax Cuts and Jobs Act of 2017 will through the legislature. workforce development and training be benefiting from capital gains tax >> Creating international through our new TechCred program, breaks while undertaking projects We announced H2OHIO, a $172 business ties. in which businesses work with that bring steady employment and million investment in targeted • In September, I led a business colleges or tech schools to design affordable housing to neighborhoods solutions to help ensure safe and clean development mission to Japan appropriate classes for employees that desperately need them. To water for all Ohioans, in November. and attended the Midwest U.S.- looking to gain new skills. The further entice investors, we added We will be looking to farmers during Japan Association (MWJA) annual business then applies for funding a 10 percent tax credit on top of the spring planting to adopt best practices conference in Tokyo. Japan is Ohio’s to pay for the training. For more federal incentive. Communities and help decrease runoff in order to top international investor, with more information, visit TechCred.Ohio.gov. are using our free marketing tool prevent algal blooms in Lake Erie and than 72,860 Ohioans employed at at OpportunityZones.Ohio.gov to other water sources. • We are improving the transportation 852 Japanese-owned establishments promote their zones and projects. infrastructure for businesses and across the state. During the mission, In the next year, my team will continue residents by investing in our roads Neaton Auto Products Manufacturing >> Eliminating unnecessary the successful initiatives already to keep them safe and reliable. announced it was investing $15 regulations. under way and look for new With funding included in the new million to expand its factory in Preble The Common Sense Initiative was opportunities to boost the state’s transportation budget, we were able County and adding 70 new jobs to its created to reform regulatory policies economy and promote a higher level to move important projects forward. workforce of 800 Ohioans. and help make Ohio a business- of prosperity for Ohioans.

WILL SECOND-HALF MOMENTUM FOR PRO-BUSINESS POLICIES CARRY FORWARD INTO 2020? The most significant pro-business The legislature then tackled face liability for breach of a written by ending surprise billing. However, legislative accomplishments of 2019 several issues that would benefit contract and increase penalties for their approaches are vastly different, were not actions that enhanced employers. This was a welcome those who physically damage or and no clear path forward has yet Ohio’s business climate. Instead, change and hopefully indicates a tamper with critical infrastructure emerged that could garner support in the Ohio Chamber’s major 2019 desire to prioritize the need to foster projects, such as telecommunications both chambers. The Ohio Chamber is accomplishments preserved the a competitive business climate that networks, railroads, pipelines, electric supportive of taking patients out of the status quo, saving the small business makes Ohio a great place to conduct generating facilities and water sewer equation, but only if this can be done income deduction (BID) and defeating business. systems. Work on several of these 12 without creating a process that would a proposed expansion of workers’ bills could be completed early in 2020. lead to increased health insurance compensation benefits. In December, lawmakers finalized premiums for employers. House Bill 2, creating the new Other key bills are still in their State lawmakers fashioned the state’s TechCred program. This innovative original chamber but are making From a business perspective, the 2019 operating budget for the next two fiscal program, supported by the Ohio progress. Most significant is HB 352, legislative year ended with much years. During this, the House tried to Chamber, is designed to help a longstanding Ohio Chamber policy positive momentum, particularly limit the BID, which allows owners of employers overcome workforce objective that makes needed reforms when contrasted with the first half sole proprietorships and pass-through challenges. TechCred will assist to Ohio’s employment discrimination of the year. The challenge will be entities to deduct 100 percent of their employers in “upskilling” their laws. HB 352 reforms our confusing carrying that positive momentum into business income up to $250,000 on existing workforce and gives and burdensome employment 2020, translating it into even more their Ohio personal income tax return employees the ability to earn industry- discrimination statutes to better action, especially given that 2020 is an and taxes any remaining business recognized, technology-focused align with federal law and the laws of election year. income at a flat 3 percent rate. credentials, better preparing them other states. Attorneys who practice An election year can mean a slowing of The Ohio Chamber and our Ohio for a job in our advanced technology- in this area and are members of the the legislative process, in part because Small Business Council mobilized infused economy. Through this Ohio Chamber’s Employment Law incumbents seeking re-election want against this plan that would have program, businesses can identify Committee testified in support of the to be back home in their districts raised taxes on small business owners specific qualifications needed and can bill in November. Not one organization interacting with their constituents by $528 million per year. Reacting to be reimbursed by the state for up to or individual testified against it. This more than they want to be in vocal grassroots opposition from small $2,000 of training once an employee should mean HB 352 is ready for the Columbus working on public policy. business owners across the state, the earns a credential. The next online House Civil Justice Committee to With a St. Patrick’s Day primary and a legislature removed most of the BID application period opened Jan. 2, favorably report at its next hearing, mid-April spring break — along with changes from the final state budget it 2020. Visit techcred.ohio.gov to apply likely in mid-January. Following that, an array of other issues, such as the delivered to Gov. Mike DeWine. or for more information. it will await a vote by the full House. capital budget, gun legislation, sports gaming, school vouchers and drug AWAITING ACTION More controversial is the issue The problematic workers’ com- sentencing reform — it is probably A dozen Ohio Chamber-backed bills of surprise medical bills. Many pensation proposal to give first unreasonable to expect all of the Ohio have passed one chamber and await employers are concerned about the responders coverage for post- Chamber-backed bills to get done final action in the other. Among burden that surprise medical bills — traumatic stress disorder was put before the legislature wraps up its pre- these are bills to protect consumers costly, unexpected bills patients get forward by the House, which included general election work in mid-June. legislation establishing the Bureau of and businesses by prohibiting local after they receive care from an out-of- Workers’ Compensation’s two-year governments from imposing a tax, fee network provider they thought was Nonetheless, you can count on budget. It was stripped from the bill or ban on disposable plastic bags and in their network — create for their the Ohio Chamber to continue to by the Senate, but this issue is far other containers, reduce from eight employees. Both the Senate and the aggressively push lawmakers to make from settled. years to six the timeframe employers House have bills to protect patients the issues above a top priority.

WWW.OHIOCHAMBER.COM 3 JANUARY / FEBRUARY 2020

By Anthony Lagunzad, Director, Grassroots and Political Programs MAPPING THE BATTLEGROUND: LOOKING AHEAD TO ELECTION YEAR 2020

It’s here. Election year 2020 has election, a substantial emphasis seats opening up in officially arrived. Admittedly, it feels has been placed on the primary the House due to like we’ve been on this national election, with Statehouse candidates term limits in 2020, election cycle since 2016. But let’s announcing campaigns to run for 2020 with two senators – leave the presidential race and talking open seats as early as a year ago. A few one Democrat and one points to the media and take a look of either safe-Republican or safe- Republican – seeking re-election. at how down-ticket Ohio Statehouse Democrat open districts are seeing five These same regions, in contrast to the general, auditor, secretary of state and races are shaping up. or more candidates from that party suburban areas becoming bluer, voted treasurer, both Republican candidates filed to run in the primary. All told, overwhelmingly red for Donald Trump for the high court lost. Out of the 99 Ohio House seats, 17 Republicans are running candidates in 2016 after being historically blue. One of the challenges with judicial incumbents are vacating their seats in 96 House races, and Democrats, Moreover, the GOP is putting forth campaigns is that party identification due to term limits, retirement or looking to eliminate the Republican candidates and resources to attempt to is not attached to candidates’ names attempts to run for other elected supermajority, are fielding candidates take those suburban districts they lost on the ballot. So the main campaigning offices. The distribution of those open in 83. On the heels of picking up a net in 2018 back. The collective state GOP objective is to increase name seats by party matches up with the five seats in 2018, the Democrats’ goal political arm, which includes both identification, which is more difficult current distribution in the House — this year is to have a net gain of at least Statehouse chamber caucuses, has to establish in these campaigns 12 open seats are Republican-held two seats in the House. This would substantially more cash on hand than than other races due to the relative districts, five are Democrat held, and block the House GOP supermajority the Democratic Party as of the last obscurity of the court compared to the the Ohio House currently maintains a that currently allows them to override reporting deadline. 64-member Republican supermajority. gubernatorial vetoes. executive branch or the legislature. In surveying the field and how it’s Voters, unfortunately, simply don’t get One interesting component is how Everything about the primary election shaping up, the ultimate goal for the as excited about state-level judicial many “incumbents” appointed in the is inherently forward-looking to the Ohio Democratic Party in 2020 is to races. Should the Democrats repeat a past year will be running for their general election in November. For take back enough seats to eliminate Supreme Court sweep in 2020, they seat for the first time. With nine of the Democrats, the goal is to continue the Republican supermajority in both will then hold a 4-3 majority for the those new appointees (so far) this their trend from 2018 and potentially Statehouse chambers. Of course, for first time in nearly two decades. The General Assembly, just over a quarter even shut out Republicans from their Republicans, it’s to hold onto those concern that should motivate the of all Ohio House districts will have remaining held seats in urban counties supermajorities. business community to make these relatively fresh names and faces such as Cuyahoga (Cleveland), races a priority is not partisan, but running in those races in November. Franklin (Columbus), Hamilton While Statehouse contests get more the potential for a shift in judicial attention, of higher priority for the On the Ohio Senate side, only half of (Cincinnati) and Lucas (Toledo). philosophy toward activism and business community in 2020 are the the 33 districts are up in 2020 due Democrats picked up a handful of results-oriented justice. two races for Ohio Supreme Court to the four-year terms. Of those 16 seats in these counties in 2018 from seats. Republicans currently hold a So there you have it, the 50,000-foot even-numbered districts, five are Republicans. The trend both in Ohio 5-2 majority in the court, but the only view of Ohio politics for the 2020 open seats. All five of these open seats and nationally during the Trump era statewide elections in 2020 are two election year. But as always, anything are red Republican districts, but the has been for Democrats to successfully Supreme Court races where Justices can happen between now and Tuesday, Ohio Democratic party is running a challenge suburban areas that Sharon Kennedy and Judi French, both Nov. 3. You can access general info candidate in all 16 Senate races on the were once – and recently – strongly Republicans, are up for re-election. In about the 2020 primary and general ballot in 2020. Just like the House, Republican-leaning. As part of this its current makeup, the Ohio Supreme elections on the Ohio Chamber’s the Senate also has four members effort by the Dems to flip red districts Court majority is fair and balanced. website at https://ohiochamber. appointed in 2019 who will be running blue, there are three high-priority We are fortunate not to have justices com/politicalgrassroots/. If you are for re-election but will be on the ballot Republican-held flip targets in the interested in seeing a deeper analysis for their district for the first time. Senate and four in the House, with an who use their power to legislate from additional focus on a few competitive the bench. However, both Republicans of individual state-level races, become The previous two national elections in races in neighboring counties. and Democrats are putting heavy a member of OCCPAC and make a 2016 and 2018 have changed the game As far as GOP flip targets, they’re emphasis on these races because of contribution at https://ohiochamber. for campaigns at the state level. With looking toward far Northeastern and 2018’s election results. In an election com/politicalgrassroots/occpac to a lot of the partisan lift coming from Southeastern Ohio. In these regions, year that otherwise saw Republicans receive the OCCPAC Ohio Politics presidential candidates for the general there are two Democrat-controlled sweep the races for governor, attorney Insider Newsletter.

GRANTS HELP OHIO BUSINESSES PROMOTE PRODUCTS INTERNATIONALLY Provided by the Ohio Development Services Agency

You have a product or service that Through the International Market many in the world would want to buy, Access Grant for Exporters, and now you can get help letting the known as IMAGE, companies world know that you’re here. can be reimbursed for some of The Ohio Development Services their expenses in promoting their Agency is ready to provide that products and services to the world. help. Through the International Market Access Grant for Exporters, known as IMAGE, companies can be Business Administration’s State reimbursed for some of their expenses Trade Expansion Program. Popular in promoting their products and qualifying activities include, but are services to the world. Development not limited to, exhibiting at trade will reimburse 50 percent of qualified shows, participating in trade missions, expenses, up to $10,000. international advertising, translation services and website development. That assistance can make a big difference for the small and medium- For more information about the sized businesses that IMAGE grants and to apply, visit IMAGE. supports. BioThane Coated Webbing, a development.ohio.gov. Applications North Ridgeville, Ohio, manufacturer are being accepted until Feb. 28. of coated webbings and assemblies, in Canada. Now, BioThane is “Exporting is vital to the Ohio gained international customers with successfully selling custom products economy, with nearly $55 billion In addition, Development’s Export the help of IMAGE funding. to these international markets. The worth of international sales by Ohio Assistance Office and the Export IMAGE grant made this possible and companies in 2018,” says Lydia Assistance Network of regional “BioThane used IMAGE funds to is making a huge difference for a small L. Mihalik, director of the Ohio offices can help companies with exhibit at a trade show in Germany,” business like us.” Development Services Agency. other international business says Kim Madjar, BioThane’s director “IMAGE is key to helping small initiatives, as well. To learn more, of sales and marketing. “While there, International sales are a major factor businesses compete in the global visit exportassistance.development. we established a new customer from for the Ohio economy, and the Export marketplace.” ohio.gov. To find the nearest Export Poland. We have increased sales with Assistance Office at the Development Assistance Network office, visit this customer and have established a Services Agency works to help The IMAGE program is funded, https://development.ohio.gov/bs/ relationship with its sister company companies grow their foreign markets. in part, through the U.S. Small bs_itac.htm.

4 SHARE SUCCESS.

By Justin Barnes, Executive Director, Ohio Chamber of Commerce Research Foundation NOTES FROM THE RESEARCH FOUNDATION BUSINESS LEADERS WARY OF FUTURE UNCERTAINTY

Figure 2. Top Issues of Concern The survey also revealed some of the top concerns weighing on Ohio’s business Figure 1. Prosperity Pulse Index leaders. While the cost of health care is and remains the No. 1 concern for Ohio In early December, the Research Foundation released the results of our third businesses, state and local taxes climb the rankings, and workforce issues and quarter 2019 Prosperity Pulse business leader survey. We conduct this survey the state’s political environment re-enter the top five. We anticipate that the at the end of each quarter, to keep tabs on how business owners feel about the results of the next survey will reflect some of the recent activity surrounding the economy, challenges facing their operations and what to watch out for in the announced plans to implement the United States-Mexico-Canada Agreement coming months. (USMCA), although ongoing negotiations with China and the impact of tariffs on other countries may still give businesses pause. In the 3Q survey, we found that business owners, while remaining largely optimistic about the future of their companies, continue their trend of These surveys help the Research Foundation provide insight from business expressing concerns about the impact of ongoing trade negotiations and owners to thought leaders and public officials across the state. With a busy fall a deepening political divide. As you can see in Figure 1 above, the overall ahead and the election year on the horizon, the Prosperity Pulse will remain a Prosperity Pulse index dropped nearly 13 points from the previous quarter, great barometer of economic performance in Ohio. marking the second-lowest score in the last two years. The drop is attributed to a To see the full results of the 3Q Prosperity Pulse survey, or any of the previous decrease in the number of respondents who anticipated profits for their business editions of the survey, visit http://www.ohiochamberfoundation.com/projects. in the fourth quarter, combined with reduced planned capital investments. Despite those drawbacks, businesses in sectors across the economy had strong Thank you to all the business owners who responded to our quarterly Prosperity hiring plans for the fourth quarter, with 92 percent of respondents indicating Pulse survey last fall. As we circulate the next survey in the coming weeks, be on they planned to add to their headcounts. the lookout and make sure your voice is heard.

INTERNS HELP OHIO BUSINESSES BOOST INTERNATIONAL SALES Provided by the Ohio Development Services Agency

More than 50 Ohio college students an opportunity for the are preparing to focus on the students to grow and international marketplace over the learn in their field of study next eight months, and they will boost and a great opportunity Ohio companies’ sales in the process. for the businesses to Companies can apply now to have a grow in international highly motivated and knowledgeable markets,” says Lydia intern join their staff during Mihalik, director of the the summer of 2020. The Ohio Development Services Development Services Agency will Agency. “There’s reimburse companies half of the great opportunity in Above: Kendrik Smith interned intern’s salary, up to $3,600. international markets, and what that with Engineering Consultants. means is an expanding workforce Right: Lauren Hole served her Companies have found success within the state of Ohio.” internship with Bionix. through the Ohio Export Internship Program in the past. Bionix Fifty-four students will be part Development Corp. in Toledo, which of the Ohio Export Internship “There’s great opportunity in international markets, and what develops, manufactures and markets Program for 2020 and will start that means is an expanding workforce within the state of Ohio.” innovative single-patient-use medical the upcoming journey by taking – Lydia Mihalik, director of the Development Services Agency products, has participated in the export-focused coursework during program for multiple years. the spring semester at one of four universities that are partners with the “Our intern came to Bionix well- Development Services Agency. After completing the course in May, annual Ohio Export Internship prepared,” says Brett Smith, director the students will be assigned to Ohio Program Showcase, where the Those universities are: of market development at Bionix. companies that apply to be a part of students’ achievements are celebrated “She was able to research, analyze • The Ohio State University, the program, and they will work at the in a ceremony at the Ohio Statehouse. and provide a well-developed plan for Max M. Fisher College of Business companies for 12 weeks, from May addressing specific European markets. into August 2020. “I think the export internship program • Cleveland State University, She also fit our culture well.” is very well run and managed,” says Monte Ahuja College of Business The Export Assistance Office at Chuck Ferrell, vice president of Companies looking to expand existing • Youngstown State University, Development is closely involved sales and marketing at Engineering export initiatives or start a new one Williamson College of Business throughout the program. Staff visits Consultants Group Inc. in Akron. can get the help they need through the with students during the spring “ECG wants to thank the state of internships. • University of Dayton, School of semester class and with the companies Ohio for these services and the Ohio Business Administration that apply. Those contacts help Development Services Agency for Since the internship program began in Eleven of the students will travel from Development’s staff determine which their leadership and support.” 2012, 274 students have worked with their home institutions to take the intern will be a good fit for a particular 176 Ohio companies to improve their Company applications are being export course. Those universities are company. international sales. The interns’ work accepted now for on-site meetings Ohio Wesleyan University, Shawnee has resulted in 315 new international During the internships, Export that have begun and run through State University, Denison University, markets, distributors or customers for Assistance Office staff continues to February 2020. The final deadline for Bowling Green State University, the companies. mentor the students throughout the companies to apply is Feb. 1, 2020. Ashland University, University summer. “The Export Internship Program is of Akron and Baldwin Wallace For more information and to apply, a great opportunity for all involved, University. The internships culminate in the visit eip.development.ohio.gov.

WWW.OHIOCHAMBER.COM 5 JANUARY / FEBRUARY 2020

Provided by Working Partners FIVE DRUG-FREE POLICY AND PROCEDURE MUST-HAVES Written documents are critical for an Specific guidelines not only serve to full- and part-time employees. But DFWP, makes your program live in a effective and comprehensive drug- prevent problems associated with what about temporary employees, functional way. free workplace (DFWP) program. A overconsumption but can also help interns, independent contractors, The procedures for handling situations documented, memorialized program insulate the company in the event or volunteers? Are these individuals may be contained in a single drug- provides legal protection in the event there is litigation for damages caused subject to all — or just some — of the free workplace policy, or, to prevent that the general public or a disgruntled by an intoxicated employee. program rules and testing applications? the policy from becoming too employee challenges your organization, Are they excluded altogether, or Use of prescription drugs. cumbersome, in a separate program especially as it pertains to drug and covered under a different contractual Employees have protections under procedures document. alcohol testing (considered search and agreement? An operationally sound federal law regarding their use of seizure by the U.S. Supreme Court). program should clearly articulate the Remember, a program dealing with prescription medications, but the A program must adhere to federal and expectations of all individuals that employee drug use doesn’t live in a silo side effects of some medications can state law and any other authority to could impact the safety, productivity or separate from nondrug free workplace jeopardize safety. Do employees know which the company is subject. public image of your organization. policies and procedures. Practices need what to do if that happens? While to be interwoven with all other related To be consistent and fair, an effective you don’t want to prevent employees Employee assistance. DFWPs are corporate policies, e.g. HR, safety, program dealing with employee drug from properly using medication, your designed to help employees, in addition administrative. To deal with drug use needs specific and clear policy program documents should offer to helping the organization. Does your issues responsibly, an employer needs statements and written directives. directives for what employees should program provide specific directions to have policies and procedures around Details in all documents must be do if they are taking something that to employees struggling with alcohol drug testing, fair-chance practices, compulsory and complementary. could jeopardize safety or productivity. or other drug issues? Where can they time-off guidelines, applicable Without detailed, company-specific go for help, and what if they need time insurance, benefits and other available procedures, an enterprise can be left Post-accident testing. Testing an off to seek that help? What safety assistance, re-entry support and potentially exposed when faced with employee after an accident is prudent, precautions should the company more. Regardless of where you put the real-life alcohol and drug issues. but what counts as an accident in your organization? To prevent management take if an employee voluntarily information, operational details on all Here are examples of five operational from making decisions based on shares information about a program related corporate practices must be issues that are often overlooked — but subjective criteria — e.g. they think or is identified as having a problem congruous and documented. shouldn’t be. the employee was high — you need a via a positive test? These decisions detailed, objective definition of what will be influenced not only by your While operating your DFWP, if Alcohol consumption. Is there constitutes an accident that qualifies organization’s preferences and needs something occurs, you must be able ever a time when employees are for post-accident testing. Having a but by any compliance mandates you to pull out your policy and procedures allowed to drink in connection to written and meticulously followed follow. However, whatever action is to guide your actions. If something work, e.g., at holiday gatherings, policy leaves little doubt about when taken in this situation must be dictated happens and you don’t know how to entertaining prospective clients, to send, or not send, an employee for by your program’s written documents. respond, don’t wing it. Find a specialist attending conferences? If so, clear, post-accident testing. who knows the law, can help you work written parameters concerning Addressing real-life situations like through the situation and ultimately that use need to be included in Program coverage. A company’s these, along with others you will add a new operational procedure to your policy or program documents. DFWP typically applies to both encounter while operating your your program.

DISCLAIMER: This article is designed to provide accurate information regarding the subject matter covered. It is provided with the understanding that those involved in the publication are not engaged in rendering legal counsel. If legal advice is required, the services of a competent professional should be sought. This article was provided by Ohio Chamber Member Working Partners. It is one of many support articles available on the Ohio Chamber’s website at https://ohiochamber.com/opioid-toolkit/, then scroll to the bottom and click on “Drug-Free Workplace Resource Library.” Contact Working Partners at (614) 337-8200.

NEW RULING GIVES EMPLOYERS ADDITIONAL DISCRETION TO PROHIBIT EMPLOYEES FROM USING EMAIL FOR NONBUSINESS PURPOSES By Traci Martinez and Jill Kirila, Partners at Squire Patton Boggs (US) LLP On Dec. 16, 2019, the National Labor financial results or prospects, or the the board held that, “There is no basis Relations Board’s (NLRB) decision performance or value of company for concluding that a prohibition on About the Authors: in Caesars Entertainment d/b/a Rio stock by using an internet message the use of an employer’s email system All-Suites Hotel and Casino ruled board to post any message, in whole for nonwork purposes in the typical that employers can prohibit use of or in part, or by engaging in an workplace creates an ‘unreasonable their email system for nonbusiness internet or online chatroom impediment to the exercise of the purposes, thereby overturning the • Convey or display anything right to self-organization.’” The board board’s controversial 2014 decision fraudulent, pornographic, abusive, further noted that an employer has a in Purple Communications. In Purple profane, offensive, libelous or property right to control the use of its Communications, the board held that slanderous communication systems. Accordingly, employees who are granted access the policy was deemed lawful under • Send chain letters or other forms of to an employer’s email system have the NLRA. nonbusiness information a statutory right under the National Labor Relations Act (NLRA) to use • Solicit for personal gain or This decision marks a continuing that email system during nonwork advancement of personal views return to an approach by the board Jill Kirila serves as co-leader of that better balances an employer’s the Squire Patton Boggs global time for purposes protected by Section • Violate rules or policies of the right to have legitimate policies Labor & Employment Practice. 7 of the NLRA, including organizing company union activity. and rules for its employees that Reach her at (614) 365-2772 or • Visit inappropriate (nonbusiness) govern important aspects of their [email protected]. In the Caesars Entertainment case, websites, including, but not limited employment and company business, the board analyzed pertinent portions to, online auctions, day trading, with employees’ right to act of Caesars Entertainment’s handbook retail/wholesale, chat rooms, concertedly to improve terms and policy to determine whether the message boards and journals. Limit conditions of their employment. One rule improperly impeded or chilled the use of personal email, including note of caution, however; the board employees’ NLRA rights to engage in using streaming media (e.g., video concluded that this ruling applies to protected concerted activity, including and audio clips) and downloading the “typical” workplace, where there the following. photos. are other means of communication The administrative law judge, between employees on nonwork time. CONFIDENTIALITY applying the principles of Purple Thus, in the rare instance where use Do not disclose or distribute outside of Communications, held that the of employer email or IT resources is [the company] any information that is prohibition on sending nonwork the only means of communication, the marked or considered confidential or information interfered with the policy may draw additional scrutiny. proprietary unless you have received Traci Martinez is a member of employees’ rights under the NLRA. assigned nondisclosure agreements For employers interested in the firm’s Global Board and is an Thereafter, on Aug. 1, 2018, the board through the Law Department. implementing new rules related to experienced civil litigation and issued a notice for the parties to file employee use of computer resources labor and employment lawyer briefs answering whether the board Computer resources may not be and emails, contact your employment advising public and private sector should adhere to, modify, or overrule used to: legal counsel. clients across various industries. Purple Communications. • Share confidential information Reach her at (614) 365-2807 or with the general public, including After extensive briefing by all parties, [email protected]. discussing the company, its including over 30 amici briefs filed,

6 STAY CONNECTED.

NEW MEMBERS We welcome the following new members to the Ohio Chamber of Commerce. These companies joined the Ohio Chamber between Nov. 5 and Dec. 19, 2019. As of Dec. 19 we have welcomed a record 618 new members. We looking forward to working with all of these new companies, as they are #allforohio. Able Fence of Columbus Inc., Columbus K&A Professional Wood Services LLC, Mansfield Advanced Mechanical Services, Fairborn K9to5 Doggy Daycare LLC, St. Mary’s Advanced Plastic Systems, Gahanna Kessler & Associates Inc., Dayton Alliance Building Group LLC, Xenia Knowlton Industrial Steel Supply Inc., Norwich Allied Builders, Dayton Koch Sporting Goods, Cincinnati OHIO CHAMBER’S WEBSITE Alumina Railing Products Inc., Cleves Lakeside Supply Co., Cleveland REDESIGN PROVIDES EASIER AMEND Consulting, Cincinnati Law General Contracting, St. Louisville ARES Inc., Port Clinton Lee Cleveland Property Management, Pepper Pike NAVIGATION AND VALUABLE Armcorp Construction Inc., Celina Life Rocks LLC, Cincinnati RESOURCES Articulation, Columbus Luken Construction Inc., Cincinnati Assured Partners Consulting Inc., Boardman M.J. Mock & Associates LLC, Centerville The Ohio Chamber of Commerce’s website got a brand-new AssuredPartners NL LLC, Cincinnati Malbasa Financial Services, Cleveland look toward the end of 2019, making it sleeker and easier to navigate. With information on everything from membership Auto Additions Inc., Westerville Mathie Benefits Inc., West Chester to the latest bills the Ohio Chamber is tracking, the new Avalon RV Center, Medina Maximum Accessible Housing-WEST, Cleveland website makes staying up to date with the Ohio Chamber Benchmark Insurance Management Inc., Westerville McGohan Brabender, Dayton easier than ever. Benefit Strategies Agency LLC, Findlay Milligan Construction Co., Sidney NEW DESIGN Benefits Network - a Division of Risk Strategies, Mistras Group Inc., Newark While the Ohio Chamber’s website still contains vital Cincinnati information on advocacy, policy and membership, the layout NFP Corporate Services (OH) Inc., Independence makes this information easier to find, while boasting a bold Borgers Ohio Inc., Norwalk Noebull Automotive, Columbus new design. The roaming navigation bar at the top of the Brad Smith Roofing Co. Inc., Westlake Northwest Therapy Service Inc., Bellefontaine page allows users to easily browse pages on the website Buckeye Beach Park, Thornville without losing where they started. The navigation bar Ohio Athletic Committee, Sandusky is also more succinct, with categories like “Advocacy & Burnside Law LLC, Portsmouth Ohio Green Works LLC, Waynesville Policy,” “Communications,” “Membership” and “About Us” Carey Electric Co., Vandalia Ohio Library Council, Columbus containing all needed information. Catchweight, New Albany Ohio Quarter Horse Association, Columbus There are new organizational tools throughout the website, City Plating and Polishing LLC, Cleveland Ohio Tool Systems Inc., Richfield making it easier to find specific information quickly. For Cleveland Air Comfort Corp, Cleveland example, drop-down menus and tabs help users find specific Precision Alignment and Tire, Delaware issues of Ohio Matters or Legislative Update without Coil Processing Repair Inc., Celina Primatech Inc., Columbus navigating away from the page. Columbus Pest Control Inc., Columbus Quest Restoration, Toledo Complementing the new navigational elements, the design Concord Fabricators Inc., Grove City Quicken Loans Inc., Mentor offers sleeker graphics, high-resolution images on every Controllix Corp., Walton Hills Rader Environmental Services, Findlay page and updated links and language. Craynon Fire Protection, Dayton Radico Inc., Columbus VALUABLE RESOURCES Cresco Labs, Chicago Restoration Brew Worx, Delaware The Ohio Chamber’s website provides valuable resources Cunningham Insurance Ltd., Mt Vernon for members to address a variety of needs. The Opioid Restoration Park Church, Medway Toolkit is a free resource for companies doing business in Dawn Enterprises Inc., Valley View Richland Residential Inc., Middleburg Heights Ohio. The toolkit provides a five-module video course for DeMary Truck, Columbus Sandusky State Theatre, Sandusky employers, as well as additional videos and printouts on Dick Baker Roofing Inc., Columbus topics like how to navigate CBD questions and how to create Savin Sales Associates Inc., Chagrin Falls a recovery-supportive workplace. Ohio Chamber member DiDac Tex, LLC, Oakwood Schroedel Scullin & Bestic LLC, Canfield Working Partners also provides a Drug-Free Workplace Dietz, Futrell and Walters Insurance, Beverly Shawnee State University, Portsmouth Resource Library within the toolkit, which includes a Dryden Builders Inc., Centerville compilation of articles on a drug-free workplace. Shoreline Construction & Excavating Ltd., DS Benefits Group, LLC, Medina Russells Point The Ohio Chamber’s Health Benefit Program is a new Duling-Warnock Residential, Hilliard Smarty Pants Learning Centers Inc., Cleveland resource on the website. As a member of the Ohio Chamber, the Health Benefit Program may help small businesses save Eagle Concrete Construction LLC of Ohio, Sokol Eisenberg Insurance, Columbus up to 15 percent on a self-funded health plan. The program Springboro Springfield Township, Clark County, Springfield is tailored specifically for Ohio businesses with two to EDP Renewables North America LLC, Chicago Stratton Creek Wood Works LLC, Kinsman 50 employees and provides access to the UnitedHealth Elford Development Ltd., Columbus Premium Program. Strinteg Corp., Cleveland ELK Promotions, Columbus TAH Benefits, Westerville HR Academy — a resource for Ohio businesses and law Energy Insurance Agency, Lexington, Kentucky firms to help maintain a comprehensive understanding The Benefit Source Inc., Beachwood of employment law and issues — can also be found on the Faircreek Church, Fairborn The Columbus Architectural Studio LLC, Columbus site. The Ohio Chamber partners with top employment Falcon Tool & Machine Inc., Dayton The Daimler Group Inc., Columbus lawyers across Ohio to host webinars on topics related Fayette County Board of Developmental The Nigh Law Group LLC, Columbus to employment law to help HR professionals. Those Disabilities, Washington Court House professionals can also earn credits, such as HRCI, SHRM or The Sandel Corp., Gahanna Find My Benefits, Cleveland CLE, at the same time. The SEBO Group, Columbus First Insurance Group of the Midwest Inc., Defiance Other valuable resources on the Ohio Chamber’s The Siekmann Co., Plain City First Tracks Technology, Lewis Center website include: Thomas R. Bates, CFP, LLC, Columbus Front Health, Columbus • Ohio Matters, the Ohio Chamber’s bi-monthly Thompson-Cunningham Insurance, Worthington publication, with in-depth stories on legislative issues, Frontier Electric Services, Columbus Total Athletic Development Inc., Granville member company information and more Girl Scouts of Ohio’s Heartland Council Inc., • Legislative Update, an email sent every Monday to all Ohio Columbus TR Hedge & Associates, Dublin Chamber members on the latest legislative news from our Grady Enterprises Inc., Columbus Tri-Craft Inc./Tech-Matic Inc., Middleburg Hts blog, allforohio.com Greer & Whitehead Construction Inc., Harrison Vanderhorst Financial Services LLC, Sidney • Bill Tracking, a resource that showcases all the bills the Vapor Emporia, Findlay Ohio Chamber is currently tracking Hamman Family Partnership, Mt. Sterling Helping Hands Health and Wellness Center, Verhoff Alfalfa Mills Inc., Ottawa • Free Enterprise Index, a resource that shows how Columbus legislators voted, providing necessary information Village of Sunbury, Sunbury to identify pro-business legislators, gauge legislator Hill & Hamilton Inc., Bellefontaine Village of Wintersville, Wintersville performance and highlight issues that impact Ohio’s IAB Benefits LLC, Columbus Worker Owned Restaurant Corp., Athens business climate Innogy Renewables US, Chicago Worthington United Methodist Church, VISIT THE NEW SITE TODAY IP Security Reps, Springfield Worthington Explore the Ohio Chamber’s website at J A Knapp Agency, Sunbury Zimmer Development Co., Wilmington, www.ohiochamber.com. North Carolina Jon Edwards Steel, Columbus

WWW.OHIOCHAMBER.COM 7 A PROFILE OF OHIO CHAMBER MEMBERS

As of this writing, the Ohio Chamber As you can see, we represent a variety of Commerce added a record 600 new of members – just like Ohio’s business members in 2019. So what is the profile community, which is made up of a of Ohio Chamber membership? variety of businesses in all industries and of all sizes. This year we added so that they can learn first-hand how Of our 8,000 members, 20% are in new members like Facebook, SHARE their decisions impact business. manufacturing. This is the largest and Air Stream, plus many more. We industry group represented in our have featured these new members in Later this year, we will announce membership. The rest of the top 10 social media posts throughout the year our endorsements for those running industry categories are: and highlighted some of them in this in the Ohio House, Senate and Ohio • 11% nonprofits and other chambers publication. Supreme Court. We have a thorough of commerce endorsement process so that you can • 10% retail Our elected officials want to hear be assured the people we endorse are • 10% construction from a variety of businesses, as well, supportive of economic growth and • 5% transportation which is what makes our organization Ohio’s job creators. We encourage • 4% health care such a unique advocate for business. our members to become active in the When one of our team members is • 4% industrial political process by not only voting testifying in front of a committee at the • 4% business services in the March 17 and Nov. 3 elections, Statehouse, our elected officials know • 4% insurance but also by supporting our endorsed they are speaking on behalf of a diverse • 3% wholesale candidates by sharing the information and influential group. As for company size, with your employees, contributing to • 33% have one to 10 employees There are many times when we need the Ohio Chamber Political Action • 24% have 11-25 employees members to help carry our message. Committee or even helping out on • 18% have 26-50 employees Whether it is contacting elected their campaigns. • 7% have 51-100 employees officials to let them know how their The variety in our membership base • 7% have 101-200 employees decisions will impact the business best reflects the entire business • 5% have 201-500 employees community, or coming to Columbus to community in our state. It’s the • 2% have 501-1,000 employees testify in person, our elected officials uniqueness of our membership that • 3% have 1,000-10,000 employees are interested in hearing from our really sets us apart. Whether you • And 1% of our membership has over members. are a sole proprietorship or part of 10,000 employees. Because this is an election year, it a large international company, your The majority of our members are is very important for you to let the voice is heard at the Ohio Chamber of located in Northeast Ohio, 24% in candidates for the Ohio House, Senate Commerce. Central Ohio, 21% in Northwest Ohio and Ohio Supreme Court know the and 7% are in the southeastern part of issues that are important to your the state. business. Invite them to your company

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 34 S. Third Street, Suite 100 Ohio Matters is published by position of the Ohio Chamber of Commerce. The Chamber’s position on Ohio Matters, Columbus, OH 43215 Convero key issues will be clearly stated. The Ohio Chamber of Commerce does Attn: Database Manager, 614.228.4201 • 800.622.1893 835 Sharon Drive, Suite 200 not necessarily endorse the products and services advertised in Ohio Ohio Chamber of Commerce, Fax 614.228.6403 Cleveland, OH 44145 Matters. Articles can be reproduced, but only with permission from, and 34 S. Third St., Suite 100 [email protected] 844-428-8844 • www.converoinc.com attribution given to, the Ohio Chamber of Commerce. For authorization, Columbus, Ohio 43215 www.ohiochamber.com Sue Ostrowski, Managing Editor please contact Ohio Chamber Vice President of Communications Julie www.ohiobusinessvotes.com Wendy Armon, Art Director Wagner Feasel at 614.228.4201. The Chamber reserves the right to FOR MORE INFORMATION CONTACT reject advertising based on content and does not accept advertising Julie Wagner Feasel Katie Janoch, Advertising Sales that is in conflict with a position of the Chamber. Vice President of Communications 440.250.7073 • [email protected] [email protected] Ohio Matters is a bimonthly publication for members of the Ohio Chamber of Commerce. Subscription cost is included with annual dues.

A Dose of Reality for Employers:

A FREE online toolkit to help mitigate the risks associated with Ohio’s opioid crisis. This toolkit is available to all companies in Ohio. We encourage everyone to use and share the information.

www.ohiochamber.com/opioid-toolkit

For more information, contact Julie Wagner

Feasel at the Ohio Chamber of Commerce at #ALLFOROHIO [email protected] or 614-228-4201.