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Texas Business Report A Publication of the Texas Association of Business TEXAS Volume 29 | Issue 2 | February 2014 | www.TXBIZ.org BUSINESS REPORT TAB’s Business & Commerce PAC (BAC PAC) WORKFORCEQ&A Board Makes Primary Endorsements My company has been assessed a large fine by USICE for For the first time, three major endorsements were I-9 Employment Verification violations. Recent OSHA, and made after BAC PAC Board Members heard from the Wage and Hour investigations Republican candidates for three major statewide offices as also have resulted in fines that have impacted our ability part of the TAB Annual Conference. to pay the ICE assessment. The BAC PAC board voted to endorse David Dewhurst in the Lieutenant Will the judge take this into Governor’s race, Dan Branch in the Attorney General’s race and Harvey consideration? Hilderbran in the Comptroller’s race. (see page 2) “This was not an easy decision to make,” said Bill Hammond, President and CEO of the Texas Association of Business. “We have worked closely with many of the candidates in these races. It isn’t all that often that we have so many friends of YOU’RE INVITED business seeking the same office like we do in these three races. I want to thank all of the candidates who came to speak at our annual conference, and I want them to Get ready to celebrate the best of know how hard it was to make these decisions.” the best and “Run For The Roses” April 1 at the Best Companies In January, the board made all of the other endorsements, including endorsing to Work for in Texas dinner. We U.S. Senator John Cornyn for re-election, and Attorney General Greg Abbott for are out of the gates with a high Governor. energy celebration of this year’s winners. Whether you are a Best Here is the full list of endorsements: Company winner, a proud Texan, Governor Attorney General Greg Abbott or a business in the home stretch Lieutenant Governor Lieutenant Governor David Dewhurst to greatness, we invite you to Comptroller State Representative Harvey Hilderbran celebrate with us. Visit www.txbiz.org/events Attorney General State Representative Dan Branch for details. Land Commissioner George P. Bush U.S. Senate Senator John Cornyn TAB MISSION To make the Texas business climate the best in the world. Lieutenant Gov. David Dewhurst State Rep. Harvey Hilderbran State Rep. Dan Branch continued on page 3 WORKFORCE TEXAS Q&A BUSINESS REPORT My company has been assessed a large fine by United States Immigration and Customs Volume 29 | Issue 2 Enforcement (USICE) for I-9 Employment Verification February 2014 violations. Recent Occupational and Safety and Health Administration (OSHA), and Wage and Hour TAB STATEWIDE OFFICERS investigations also have resulted in fines that have State Chairman, Dale Young, Summit Consolidated Group impacted our ability to pay the Immigration and Chair Elect, Terri Ricketts, Customs Enforcement (ICE) assessment. Will the Progressive Waste Solutions (IESI) Treasurer, Sara Tays, judge take this into consideration? ExxonMobil Corporation Secretary, Gary Gibson, The Office of the Chief Administrative Hearing Officer Star Furniture Company (OCAHO) recently held that financial burdens imposed President, Bill Hammond, Harry J. Joe Texas Association of Business Jackson Lewis LLP upon the employer by other governmental entities is a factor that can be considered and used to lower the TAB TEAM CONTACTS Sandra McGee, Senior Vice President assessed civil monetary penalty for the employer’s failure to properly and timely Employment Services & Finance complete the I-9 Employment Verification Forms for its employees, even though [email protected] such burdens were temporary. United States of America v. Pharoah’s Gentleman’s Dan Cahalen, Senior Vice President Membership Development Club, Inc. OCAHO Case No. 12A00061, July 18, 2013 (USDOL EOIR). [email protected] Aaron Cox, Vice President Pharoah’s, an adult entertainment business, was charged with failing to verify Chamber Relations the employment authorization of 30 employees within 3 days of their hiring [email protected] and completing the I-9 form for each of them, and failing to ensure the proper Cathy DeWitt, Vice President Workers’ Compensation, Tort Reform and completion of the I-9 for ten other employees. Pharoah’s conceded these allegations. Employment Relations [email protected] Moreover, the Government alleged that 22 of the I-9s that were subsequently Stephen Minick, Vice President produced in response to a Notice of Inspection had been backdated and that this Environmental Quality and Energy backdating warranted a finding of bad faith. The Government sought an order for [email protected] Nelson Salinas, Governmental Affairs Manager civil fines totaling $38,335, an assessment of $935 for each of the 40 violations. Education [email protected] Pharoah’s contended that the amount sought by the government was excessive Robert Wood, Communications Director and that only the minimum amount be assessed in view of the extreme financial [email protected] pressures and setbacks that they had recently incurred. They include: a recent Jennifer Clarke, Events Director sales tax audit that resulted in additional liability of $120,000; another state [email protected] assessment in the amount of $63,00 for unpaid unemployment insurance arising TAB REGIONAL OFFICES from misclassification of the employee status of their dancers from independent Central Texas Area - Beau Berlin contractors to employee; and being the defendant in a $5,000,000.00 personal [email protected] ~ (512) 769-2915 Coastal Texas Area - Daryl Davis injury lawsuit that was not covered by any insurance. [email protected] ~ (816) 582-3311 North Texas Area - Mark Sadowski On the issue of whether the production of the backdated I-9s constituted bad [email protected] ~ (214) 906-3361 faith, Administrative Law Judge Ellen K. Thomas declined to find bad faith in Northwest Texas Area - Marshall Jeffus the absence of additional evidence of the instructions given to the employer at the [email protected] ~ (940) 642-5428 time it received the Notice of Inspection and absent any evidence of other culpable Southeast Texas Area - Miles Resnick conduct. [email protected] ~ (409) 363-1481 Southeast Texas Area - Russ Penson The Administrative Law Judge (ALJ) did agree with Pharoah’s contention that [email protected] ~ (816) 286-9122 West Texas Area - K C Emery the amount sought by the Government was excessive in light of the New York [email protected] ~ (806) 620-3611 back sales tax, unemployment insurance tax assessments, and the costs that it was incurring in defending the personal injury suit. The ALJ stated that these Texas Business Report (ISSN0892-6816) is published on the 15th of every month by Texas Association of liabilities were factors that could be considered in conjunction with determining the Business, located at: 1209 Nueces Street, Austin, TX employer’s ability to pay a penalty in such proceedings. 78701. Subscriptions are available at a rate of $2.00, which is deducted from TAB members’ annual dues. Employment Relations questions? Articles may be reprinted with permission. Legislative advertising paid by TAB. Don’t forget to call TAB’s Employment Relations Hotline for your next HR Question Periodicals Postage Paid at Austin, Texas. 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 Endorsements continued from page 1 U.S. House (by district): 5. Sen. Charles Schwertner – Georgetown 21. Dade Phelan – Beaumont 7. Paul Bettencourt – Houston 22. Rep. Joe Deshotel – Beaumont 1. Cong. Louie Gohmert – Tyler 8. Rep. Van Taylor – Plano 24. Rep. Greg Bonnen – Houston 2. Cong. Ted Poe – Humble 9. Sen. Kelly Hancock – 25. Rep. Dennis Bonnen – Houston 3. Cong. Sam Johnson – Flower Mound North Richland Hills 26. Rep. Rick Miller – Sugar Land 4. Cong. Ralph Hall – Rockwall 10. Dr. Mark Shelton – Fort Worth 28. Rep. John Zerwas – Fulshear 5. Cong. Jeb Hensarling – Dallas 14. Sen. Kirk Watson – Austin 29. Rep. Ed Thompson – Pearland 6. Cong. Joe Barton – Ennis 15. Sen. John Whitmire – Houston 30. Rep. Geanie Morrison – Victoria 7. Cong. John Culberson – Houston 16. Sen. John Carona – Dallas 31. Rep. Ryan Guillen – Rio Grande City 8. Cong. Kevin Brady – The Woodlands 17. Sen. Joan Huffman – Houston 32. Rep. Todd Hunter – Corpus Christi 10. Cong. Michael McCaul – Austin 23. Sen. Royce West - Dallas 33. Rep Scott Turner – Frisco 11. Cong. Michael Conaway – Midland 25. Sen. Donna Campbell – San Antonio 35. Rep. Oscar Longoria – Mission 12. Cong. Kay Granger – Fort Worth 30. Sen. Craig Estes – Wichita Falls 36. Rep. Sergio Munoz Jr. – Mission 13. Cong. Mac Thornberry – Amarillo 31. Sen. Kel Seliger – Amarillo 41. Rep. Bobby Guerra – Mission 14. Cong. Randy Weber – Pearland 42. Rep. Richard Raymond – Laredo 17. Cong. Bill Flores – Waco Texas State House (by district) : 43. Rep. J. M. Lozano – Kingsville 19. Cong. Randy Neugebauer – Lubbock 1. Rep. George Lavender – Texarkana 44. Rep. John Kuempel – Seguin 20. Cong. Joaquin Castro – San Antonio 2. Rep. Dan Flynn – Van 45. Rep. Jason Isaac – Dripping Springs 21. Cong. Lamar Smith – San Antonio 3. Rep. Cecil Bell – Magnolia 47. Rep. Paul Workman – Spicewood 22. Cong. Pete Olson – Sugar Land 4. Rep. Lance Gooden – Terrell 48. Rep Donna Howard – Austin 24. Cong. Kenny Marchant – Irving 5. Rep. Bryan Hughes – Mineola 50. Rep. Mike VanDeWalle – Austin 25. Cong. Roger Williams – Weatherford 6. Rep. Matt Schaefer – Tyler 52. Rep. Larry Gonzales – Round Rock 26. Cong. Michael Burgess – 7. Rep. David Simpson – Longview Flower Mound 53. Rob Henneke – Kerrville 8. Rep. Byron Cook – Corsicana 27. Cong. R. Blake Farenthold – 54. Rep. Jimmie Don Aycock – Killeen Corpus Christi 9. Rep. Chris Paddie – Marshall 55. Rep. Ralph Sheffield – Temple 28. Cong. Henry Cuellar – Laredo 11. Rep. Travis Clardy – Nacogdoches 56. Rep. Charles “Doc” Anderson – Waco 29.
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