Business Magazine - August 2020

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ADVERTISE IN OUR BIGGEST ISSUE OF THE YEAR! 2020 ANNUAL REPORT

115th Annual Event Speaker Retired U.S. Navy Admiral William McRaven

Retired U.S. Navy Four-Star Admiral William McRaven is one of the most decorated and inspiring U.S. commanders and former chancellor of the University of Texas System. During his time in the military, McRaven commanded special operations forces at every level, eventually taking charge of the U.S. Special Operations Command. His career included combat during Desert Storm and both the Iraq and Afghanistan wars. He commanded the troops that captured Saddam Hussein and rescued cargo ship skipper Captain Richard Phillips from Somali pirates in 2009. McRaven is also credited with developing the plan and leading the Osama bin Laden mission in 2011. During his time as chancellor of the University of Texas (UT) System, McRaven also led one of the nation’s largest and most respected systems of higher education. Learn about McRaven’s exceptional leadership experiences, his lessons and insights on the force of teamwork and personal initiative, resilience in the face of opposition, accountability and the unconditional importance of never giving up in the MBA Business Magazine’s 2020 Annual Report. This special issue is distributed to thousands of business leaders and decision makers across the tri-state area and at the Manufacturer & Business Association’s highly anticipated 115th Annual Event on October 14 at the Bayfront Convention Center in Erie.

OCTOBER 2020 – ANNUAL REPORT – AD OPTIONS: Company Profile: $1,890

Special Two-Page Advertorial: $3,150

Full-Page Ad: $1,890

Seize the Bay!

Roberts Companies Headquarters: 5501 Route 89 North East, PA 16428 Phone: 814/347-1300 or 1-800-955-4087

Rise With Roberts History Founded in 1978, the Roberts Companies were built on a foundation of asset-based local, regional and over the road (OTR) units capable of running the lower 48 states and eastern Canada with a compliment of warehouse/distribution/ cross dock space in Western PA and Western NY. Roberts has a vast pool of resources and professionally trained staff to provide customers with full Supply Chain Solutions. Roberts provides consistent on-time service to clients through sophisticated management systems, strong client relations and a commitment to excellence. Office locations are in Erie and Pittsburgh, Pennsylvania, Harford, Connecticut and Charlotte, North Carolina to support its business across the globe. Capabilities Warehousing | Roberts offers uniquely customizable solutions for clients that have temperature sensitive products, strict deadlines and large or small shipments, both globally and nationwide. Roberts currently has a multitude of meticulously maintained, pest-controlled and heated space facilities for food grade products in Erie County, Pennsylvania. All facilities including New York locations, conveniently located off Interstate 90, are equipped with a bar code data collection system providing directed pick and pack location assignment, real-time inventory capability and a first in-first out (FIFO) management system.

www.robertstrucking.com www.rise-logistics.com Kirk Hill is the president and chief executive officer of Roberts Companies.

CO M PAN Y PR O FIL E

Print Media | To meet the need for a critical service in the direct mailing business, Roberts offers print media and direct mailing services for newspapers, retail circulars and mailers. With advertisements and information sharing through different channels, such as social media and online engagement nowadays, Roberts presents an economical process to control cost and coordinate freight for the printing industry.

#Rising Up Next… It’s a new and exciting time at the Roberts Companies! “We are drafting dreams and casting a wider net with new leadership, new services and new culture and our priority is to improve on all levels so that we may better serve

clients and the community,” says President and CEO Kirk Hill. “To build upon our reputable foundation, we are strengthening our workforce and expanding our businesses. We are proud to introduce Rise Logistics as our sister company! We will now offer the same premier services and greater resources in six locations handling all facets of supply chain logistics globally. Our Erie office and headquarters in North East, Pennsylvania deliver services locally and look forward to continuing to do so as Roberts Companies and Rise Logistics.” Rise with Roberts, here and beyond!

• Breathtaking views and amazing sunsets • Award-winning hotels and first-class modern convention center • 392 sleeping rooms connected to 128,000 square feet of combined meeting space

Trucking | With a focus on capacity and reliability, Roberts manages a fleet size of approximately 400 trucks within its company and carrier partner networks. As a brokerage firm with strong relationships with its clients, as well as its carrier partners, Roberts relies upon dependability and stability to solidify shipper carrier partnerships. Logistics | Roberts logistics solutions allows customers to reduce, measure and control transportation expenditures. The company works to maintain costs while providing customized invoicing, auditing and dedicated services to support customer business activities.

Contact us for more information or for reservations.

E R I E • P E N N S Y LVA N I A mbabizmag.com • OCTOBER 2018

Bayfront Convention Center • (814) 455-1260 Sheraton Erie Hotel • (814) 454-2005 Courtyard Erie Hotel • (814) 636-1005

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Profile and Advertorial Space Deadline: FRIDAY, JULY 24, 2020 Profile and Advertorial Materials Deadline: FRIDAY, JULY 31, 2020

Advertorial includes: • Layout and Design • 3 - 5 High Resolution Photos • Company Logo • Contact Information • Headshot • 600 - 800 words of copy

HURRY, SPACE IS LIMITED! To reserve your ad space (full-page, four-color only), please contact David Thornburg or Frank Mehler at 814/833-3200, 800/815-2660 or dthornburg@mbausa.org or fmehler@mbausa.org today.

Traditional Ad Space Deadline: THURSDAY, AUGUST 27, 2020 Traditional Ad Materials Deadline: WEDNESDAY, SEPTEMBER 9, 2020


BUSINESS

VOL. XXXIII NO. 8 | AUGUST 2020

MAGAZINE

SPOTLIGHT Q&A:

LEGAL EXPERTS SHARE SECRETS TO SUCCESSFUL SUCCESSION PLANNING

ENVIRONMENTAL, HEALTH AND SAFETY NETWORKING AND MORE: PROFESSIONALS CRITICAL TO KEEPING U.S. SECRETARY OF COMMERCE WORKPLACES RUNNING SAFELY VISITS MBA HEADQUARTERS IN ERIE


Retired U.S. Navy Four-Star Admiral, Commander of U.S. Retired U.S. Navy Four-Star Admiral, Commander of U.S. Special Operations (2011-2014) and U.S. Joint Operations (2008Special Operations (2011-2014) and U.S. Joint Operations (20082011), and Chancellor of University of Texas System (2015-2018). 2011), and Chancellor of University of Texas System (2015-2018). McRaven commanded the troops that captured Saddam Hussein McRaven commanded the troops capturedtheSaddam Hussein and is credited with developing the planthat and leading Osama bin Laden and is credited with developing the plan and leading the Osama bin Laden mission in 2011. He also led one of the nation’s largest and most respected mission also led one of University the nation’soflargest systems in of 2011. higherHe education at the Texas.and most respected systems of higher education at the University of Texas.

“If you want to change the world, start off “If you want to change by making your bed.” the world, start off by making your bed.” — Admiral McRaven, — Admiral McRaven, 2014 University of Texas Commencement Address 2014 University of Texas Commencement Address

Premium Table of 10: $2,500 Premium Table 10: $2,500 Main Table ofof 10: $2,250 Main Table of 10: $2,250 Individual Tickets: $275 Individual Tickets: $275

SPONSORED BY: SPONSORED BY: R

R


FEATURES FEATURE STORY | WHAT’S INSIDE

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Reopening and Recovery Businesses navigate new phase of challenges and opportunities.

COVER STORY | LOCAL PROFILE

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Compliance Management International Learn about how this leading national provider of environmental, health and safety (EHS) services, which has been assisting businesses for more than 25 years, is helping to keep workplaces running safely in the new pandemic era.

SPOTLIGHT Q&A | STRATEGY

7 DEPARTMENTS

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BUSINESS BUZZ

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PEOPLE BUZZ

WHAT’S NEW

EVENTS 21 NETWORKING AND MORE

EDITORIAL

U.S. Secretary of Commerce Wilbur Ross visits MBA headquarters in Erie.

LEGAL BRIEF | UPDATE

AWARDS AND PROMOTIONS

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HR CONNECTION

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LEGAL Q&A

Attorneys James Spoden and Craig Shamburg of MacDonald Illig in Erie, Pennsylvania, discuss some of the key areas that employers need to consider when developing an effective business succession plan.

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READ ON THE GO! For the most current Business Magazine updates, visit mbabizmag.com

WORKPLACE TRENDS

GET ANSWERS

ON THE HILL | WORTH NOTING

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Executive Editor Karen Torres ktorres@mbausa.org

Feature Photography Compliance Management International

Contributing Writers Eileen Anderson Tracy Daggett Matthew McCullough Tammy Lamary-Toman

Addtional Photography iStockphoto.com Design, Production & Printing Printing Concepts Inc. printcon@erie.net

Understanding regulatory compliance in pandemic and post-pandemic times. Matthew McCullough

Advertising Sales Frank Mehler 814/833-3200 fmehler@mbausa.org

Snapshot illustrates impact of COVID-19 health crisis and closures on the Keystone State and businesses. Eilieen Anderson

RECOGNITION | AWARD

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David Thornburg 814/833-3200 dthornburg@mbausa.org

Erie Community Foundation President Michael L Batchelor is recognized for his Lifetime Achievement Award.

On the Cover: Compliance Management International helps employers stay in compliance with robust environmental, health and safety consulting services for companies of all sizes and industries. See page 5 for full story. Mission Statement: The Manufacturer & Business

Association is dedicated to providing information and services to its members that will assist them in the pursuit of their business and community interests. – Board of Governors

Manufacturer & Business Association Headquarters: 2171 West 38th Street Erie, PA. 16508 Pittsburgh: 600 Cranberry Woods Drive, Suite 190 Cranberry Township, PA 16066 814/833-3200 |800/815-2660 | www.mbausa.org

© Copyright 2020 by the Manufacturer & Business Association. All rights reserved. Reproduction or use of editorial, pictorial or advertisements created for use in the Business Magazine, in any manner, without written permission from the publisher, is prohibited. Unsolicited manuscripts cannot be returned unless accompanied by a properly addressed envelope bearing sufficient postage. The magazine accepts no responsibility for unsolicited manuscripts or artwork. The Business Magazine and Manufacturer & Business Association do not specifically endorse any of the products or practices described in the magazine. The Business Magazine is published monthly by the Manufacturer & Business Association, 2171 West 38th Street, Erie, Pa. 16508. Phone: 814/833-3200 or 800/815-2660.

mbabizmag.com • AUGUST 2020

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LET’S TALK If you are seeking legal services, we should have a conversation about: • How we strive to achieve each client’s objectives • How we invest in our people • How we are thought leaders • How our firm has grown to a staff of more than 90 • How we’ve been recognized nationally • How we serve our communities • How we have worldwide capacity Let’s talk. Call us at 814-459-2800. Or visit kmgslaw.com/LetsTalk to learn more.

Knox McLaughlin Gornall & Sennett, P.C. Erie

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North East | Pittsburgh | Jamestown, NY 814-459-2800 | www.kmgslaw.com


FEATURE STORY | WHAT’S INSIDE

Reopening and Recovery BUSINESSES NAVIGATE NEW PHASE OF CHALLENGES, OPPORTUNITIES As communities and businesses navigate reopening and recovery, the most recent phase of the COVID-19 pandemic presents unchartered territory for all. But there is reason to be optimistic while overcoming inevitable challenges. According to a recent report by the Society of Human Resource Management (SHRM), small business owners are hopeful for a swift economic recovery as they begin reopening after closures due to the health crisis. The data comes from a survey of 416 small business executives from organizations with 500 or fewer employees. The survey also highlights innovations in business operations, changes in policies, key challenges and plans for when and how to reopen during the COVID-19 pandemic. To reopen, nearly a third of those surveyed said they’re re-evaluating business protocols. And the majority, 82 percent, said they have considered or adopted broader telework policies, while almost half, at 43 percent, said they would allow flexible hours or compressed workweeks. Although most respondents said they recorded an overall decrease in revenue since the beginning of the pandemic, 52 percent expect to recover to pre-COVID profitability in six months or less. This is a speedy recovery in comparison to forecasts by economists predicting some metro areas won’t return to pre-COVID-19 employment levels until 2024, according to SHRM. “The U.S. workforce has experienced nothing short of an upheaval. Following a pandemic, recession, and protests nationwide, we’re seeing small businesses innovate and adapt as they reopen their doors,” said SHRM President and CEO

Johnny C. Taylor, Jr., SHRM-SCP, in a written statement. “This research underscores how small businesses have truly proven their agility and flexibility as the country confronts the COVID-19 pandemic.” “Notably, 75 percent of small business executives are confident their business will be better prepared to effectively handle a crisis like the COVID-19 pandemic if one occurred in the future. With that in mind, returning to work will be a collaborative effort between business leaders, HR professionals and employees.” Indeed, there are numerous organizations that are assisting employers through reopening and recovery right here in the tristate region, from legal and financial firms to health and safety experts. In this issue of the Business Magazine, we’ll highlight these companies and how they can be of value to employers today and in the days ahead. One such firm is Compliance Management International (CMI), headquartered in North Wales, Pennsylvania, with offices in Cranberry Township and Mechanicsburg. CMI has been a leading national provider of environmental, health and safety (EHS)

for more than 25 years and is helping to keep workplaces running safely in the pandemic era. Plus, don’t miss this month’s Legal Brief, which examines the regulatory compliance in pandemic and post-pandemic times, or On the Hill, which shows a snapshot of the impact of the COVID-19 health crisis and closures on the Keystone State and businesses. And, be sure to check out the Spotlight Q&A to learn about some of the key areas that employers need to consider when developing an effective business succession plan. Know that the MBA is always here to assist you and your organization through reopening and recovery in any way it can! Visit our COVID-19 Employer Resources page on www.mbausa.org to stay up to date and learn more!

STAY FOCUSED ON THE FUTURE!

mbabizmag.com • AUGUST 2020

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COVER STORY | LOCAL PROFILE

Compliance Management International, with offices in Cranberry Township, Mechanicsburg and North Wales, Pennsylvania, has helped employers navigate environmental, health and safety issues during the pandemic.

Environmental, Health and Safety Professionals Critical to Keeping Workplaces Running Safely With the onset of COVID-19, the world was reminded how uncertain life can be. We stayed home to keep our families and friends safe and healthy. We were abruptly thrust from our typical workdays into remote work, Zoom calls, temperature testing and mask wearing. While we were thinking about our loved ones, we were also doing everything we could to keep our workplaces running and our employees safe.

CMI provides a team of professionals to handle EHS program needs typically with a fixed budget, without any unexpected EHS program management costs. “Our senior management team focuses on cultivating trained professionals who can integrate seamlessly into any organization to ensure an infrastructure and culture is in place to maintain compliance, knowledge, and data through company transitions and personnel changes,” states Lovensheimer. “Our Partnership Program has allowed us to grow into one of the largest health and safety outsourcing firms in the region.”

Organizational leaders worked closely with HR and – if lucky – consulted with experienced health and safety professionals to sort through the ever-changing guidance from the Centers for Disease Control and Prevention, state Health Departments, and the Occupational Safety and Health Administration to make decisions that allowed us to keep businesses open.

Expertise for Your specific Regulatory Requirements

Now, as we return to a new normal, the vast majority of employers have come to realize the importance of having environmental, health and safety (EHS) professionals in their workplaces. These EHS experts understand risk assessment and know how to make decisions that help maintain regulatory compliance and ensure safe and healthy workplaces in a cost-effective manner. Compliance Management International (CMI), with offices in Cranberry Township, Mechanicsburg and North Wales, Pennsylvania, is one such firm already assisting with this growing demand. Clients deemed essential and that worked with CMI continued to operate safely throughout the pandemic. They had immediate access to highly qualified Pandemic Safety Officers, plans and training to ensure safety without any additional cost. “It was an unsettling time, but CMI provided them with the expertise, confidence, and peace of mind by quickly conducting regulatory reviews and COVID-19 risk assessments, developing plans, and delivering virtual training to ensure management teams and employees understood the risks and were able to work safely under the new protocols,” explains CMI Vice President Betsy Lovensheimer. “Through CMI, clients continued to ensure environmental reports, permits and sampling programs were compliant. They set up temperature screening programs and conducted a wide variety of air quality and employee exposure monitoring programs. “

Just like any other department, internal EHS professionals are occasionally presented with instances they have never seen or experienced before. By outsourcing to CMI, employers have a team member capable of handling unique situations or new regulations to ensure their organization is covered in all situations — routine or emergency. They also have a team of EHS professionals who are assigned to address the day-to-day issues as well as a specialized team of environmental engineers, industrial hygienists and geoscientists who are called upon when new facilities, regulations, audits or emergency support is needed.

Cost Savings

Staffing an internal EHS department can help your organization maintain EHS compliance; however, it comes with substantial costs. According to CMI, outsourcing EHS allows you to invest in a well-trained team of EHS professionals, equipped with all the tools and resources they need to get the job done cost effectively. “You don’t need to worry about their compensation, replacement costs and downtime during transitions,” explains Lovensheimer. “The cost savings experienced by outsourcing can be invested elsewhere to help business growth.” Staffing an in-house EHS department certainly has some benefits and may be needed in high-risk organizations; however, outsourcing the planning, development, and execution will help ensure that a company is operating efficiently, compliantly, safely and optimally. For more information about CMI, visit www.complianceplace.com.

Personal protective equipment has become a critical topic for employers and their employees.

Betsy Lovensheimer, CMI Vice President

EHS Outsourcing – CMI’s Partnership Program

CMI is a unique EHS consulting firm. Founded more than 25 years ago, its objective was to offer an alternative to organizations that want to have access to experienced EHS professionals without the cost of a full-time internal resource or EHS department. The company’s mission is to enhance customers’ performance by providing outsourced EHS management teams to manage compliance, allowing leadership to focus on their firms’ productivity and growth. CMI maximizes its customers’ savings by lowering the cost of hiring/re-hiring, training and managing internal EHS staff, and eliminating legacy costs.

mbabizmag.com • AUGUST 2020

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SPOTLIGHT Q&A|STRATEGY

Legal Experts Share Secrets to Successful Succession Planning Finding the right timing to announce a succession plan may seem like a major challenge. But how a plan is drafted and executed is extremely critical. Here, Attorneys James Spoden and Craig Shamburg of MacDonald Illig in Erie, Pennsylvania, discuss some of the key areas that employers need to consider when developing an effective business succession plan. Succession planning is critical to the future of businesses. However, it is not merely about appointing a successor, but also planning to avoid potential issues. Please explain. A successful plan requires a business owner to first evaluate his or her financial plan and estate plan and then conduct an honest assessment of the type of transaction he or she is considering. Business owners are looking to transfer their business to family members, co-owners, employees, third parties and possibly no one. In some cases, succession or sale is unavailable and the business owner chooses to liquidate.

convert his or her business investment into cash proceeds; and, if that is the objective, success is assured with careful planning and execution. Sales to co-owners have a similar outcome. Sales to family members or employees, whether they take the form of a cash sale or more often some type of deferred payment, succeed if the family members and/or employees who succeed to the ownership and operation of the business are prepared and qualified to undertake those tasks. A transaction that is not overleveraged and thoroughly vetted is also more likely to succeed.

Is succession planning the same as exit planning? Succession planning may or may not be exit planning depending upon who is the successor. A sale to a co-owner likely will result in a business owner’s exit. Transfers to family members or employees often involve some continuity of organization and a transition plan that requires the business owner to remain a part of the transition process. Sales to third parties, whether a strategic buyer or financial buyer, often involve transition agreements and employment or consulting agreements for a limited period of time following the closing. In some cases, financial buyers also want the business owner to retain a partial investment in the business to ensure its orderly transition and success.

What legal issues need to be addressed? The legal analysis starts with the current organizational structure of the business, its bylaws, shareholder agreement or operating agreement to determine the legal obligations of the owners. The documents may need to be amended to address the type of transaction being undertaken. An acquisition transaction for sales to third parties, co-owners, employees or family members will need to be negotiated to provide the business owner and purchaser with comprehensive representations, warranties, covenants and remedies to protect both parties. It is usually helpful to enter into a non-binding term sheet, a letter of intent or outline of the transition plan to be certain that all parties have a common understanding of the transactions before significant costs are incurred.

What enables a succession plan to succeed? A sale to a third party often succeeds because the business owner is able to

When is the best time to start thinking about succession issues? Now. Every successful business has a strategic plan and depending upon

the business owner’s age and financial wherewithal, business succession or transition planning is both a work in progress and forward looking. Preparing family members and employees, and communicating goals with counsel are critical to the business owner achieving his or her transition vision. Achieving financial success independent from the business and establishing a retirement and estate plan will enable the business owner’s vision to be achieved. Is there anything you would like to add? There are no guarantees that a business owner’s transition or succession plan will succeed. There may not be family members who are interested or capable of running the business. Co-owners may lack liquidity and market factors may reduce negotiating leverage and sale price in transactions with co-owners. Employees frequently are not ready or able to run a business and have limited access to capital. Third parties may be difficult to find. There may not be strategic buyers such as customers or suppliers that are interested in acquiring your business and sales to private equity are often more challenging and place limits on the business owner’s ability to exit at closing. A long-term business plan and deeper conversations with advisers and family members are necessary to achieve goals and objectives that most business owners hope to achieve. Every situation is a little different, and it is difficult to generalize or identify one path for all businesses.

mbabizmag.com • AUGUST 2020

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Gov. Wolf Issues Closure Order on 3/19/2020 MIJB Client Alert Sent on 3/19/2020

Gov. Wolf Issues New Shutdown List on 3/20/2020 MIJB Client Alert Sent on 3/20/2020

Gov. Wolf Issues Reopening Guidance on 5/1/2020 MIJB Client Alert Sent on 5/1/2020

Whether navigating your business through a global pandemic or simply advising on day-to-day affairs, you can confidently rely upon the knowledgeable and responsive attorneys of MacDonald Illig to guide you through the best and worst of times.

100 State Street, Erie, PA 16507

(814) 870-7600

www.MacDonaldIllig.com


LEGAL BRIEF | UPDATE

Navigating Regulatory Compliance in Pandemic and Post-Pandemic Times

guidance that may relax or repeal stayhome orders, which impact personnel matters or that dictate the requirements for your business to reopen. • Check government websites for guidance or FAQs applicable to your particular business, such as construction or restaurants. • Subscribe to industry and trade association blogs and newsletters or newsfeeds, and newsletters and e-mail updates from regulatory bodies, and state and local legislators. • Be aware that enforcement will resume of pre-pandemic regulations suspended or loosely enforced during the height of the pandemic. • Do not assume that local authorities will continue relaxed enforcement of local regulations and ordinances as more businesses reopen.

Matthew W. McCullough is a partner at MacDonald Illig. His practice consists primarily of labor and employment advice and litigation for employers and business/commercial litigation. Businesses traditionally have operated in a highly regulated environment, with federal, state and local laws regulating antidiscrimination, Americans with Disabilities Act (ADA) compliance, employee paid and unpaid leave entitlements, wage and hour issues, workplace safety and environmental compliance to name a few. Prior to the COVID-19 pandemic, navigating these statutory and regulatory requirements could be tricky with the potential for significant financial exposure if not done correctly. Due to the variety and novelty of problems created by the pandemic and government response, businesses now face new requirements, some changing on a daily basis, in addition to preCOVID-19 requirements that remain in effect. The COVID-19 pandemic has given birth to an array of new legislation, regulations, executive orders and guidance too numerous to mention. Some of the more challenging employment-related enactments include new paid sick and family leave entitlements under the Families First Coronavirus Response Act, new Equal Employment

Opportunity Commission (EEOC) guidance concerning medical inquiries and virusrelated accommodations, wage and hour, and confidentiality issues involving remote workers. Plus, there is a myriad of requirements as businesses bring employees back to work, reopen to the public and resume “normal” operations. Much confusion was generated by the Paycheck Protection Program’s (PPP) application process and eligibility determinations, and businesses now must ensure that PPP funds are used properly to achieve maximum loan forgiveness. Existing pandemic-related regulations will continue to evolve and even more regulations are inevitable as more is learned about the virus’s transmissibility and its long-term impact on the economy. In short, this ever-changing regulatory landscape requires businesses and their advisers to be more vigilant than ever. Consider This Business must not underestimate the importance of awareness, understanding and compliance with evolving federal, state and local requirements. Here are some suggestions to assist businesses to maintain compliance during these challenging times: • Monitor websites for updates. Sources include OSHA, U.S. Department of Labor, EEOC, Governor Tom Wolf, and state and local health departments, and follow links to additional resources. • Carefully review federal, state and local orders, and regulations and

• Be aware that most businesses also are regulated by federal and/or state authorities, and non-compliance at those levels can bring stiff fines and even license suspension or revocation. • Create a database to track information that applies to your business, and update regularly as requirements change. • Designate a particular person within your organization to be responsible for tracking and updating your database. • Ensure that your procedures and policies are updated timely to reflect changes in regulations and standards, and disseminate updates to those who must know to ensure compliance. • Be forward thinking. Develop a plan to respond to more strict regulation if we experience a spike in cases. In some situations, it may be appropriate to communicate directly with local officials or local representatives of state or federal agencies such as the Occupational Safety and Health Administration or the Department of Labor. To this end, maintaining good relationships with these agencies and individuals, particularly at the local level, makes good business sense. Finally, do not hesitate to contact your legal or other professional advisers for guidance. For more information, contact Matt McCullough at 814/870-7602 or mmccullough@mijb.com.

mbabizmag.com • AUGUST 2020

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AUGUST 2020 • mbabizmag.com

(814) 452-4085 (800) 897-9368


ON THE HILL | WORTH NOTING

Pandemic’s Impact on PA

Snapshot Illustrates How Health Crisis, Closures Affect Keystone State, Businesses Eileen Anderson is the director of Government Relations at SMC Business Councils, which merged with the Manufacturer & Business Association in 2019. Contact her at eileenanderson@smc.org. Editor’s Note: This article includes the most current figures as of July 9, 2020. Sir Isaac Newton had it right in 1687 when he proposed his First Law of Motion: A body in motion tends to stay in motion. That’s an accurate description of many businesses during these extraordinary times. What’s learned from numerous calls to MBA member companies is that many have been in motion since the March 23 shutdown. They have taken it in stride, often painfully, and dealt with many changes to operations and finances caused by the pandemic and directives from overhead. This collection of information partially illustrates the magnitude of the COVID-19 pandemic and the instant recession it caused. While uncertainty abounds, the task for businesses is to predict what lies ahead for the remainder of the year. The first case of COVID-19 in Pennsylvania was March 6 followed by the first death on March 18. • Confirmed cases: 92,418 • Confirmed deaths: 6,812

Closure of all PA non-life sustaining businesses was ordered on March 23. Weeks of confusion followed. It was difficult to understand the exemption request process, why some were granted and others denied. Some businesses could not initially determine their category and closed unnecessarily. The process caused extreme frustration for businesses and lawmakers alike. • Exemption requests reviewed: 42,000 • Exemption requests approved: 6,124 • Exemption requests denied: 12,826 Note: Estimates are from the Department of Community and Economic Development. Pennsylvania has nearly 1 million small businesses. Eventually those businesses that closed for good will become apparent, but no one will ever know the number of businesses that closed temporarily. When businesses shut down so does the economy. Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act and provided for the Paycheck Protection Program (PPP). Thousands of businesses applied for the Small Business Administration (SBA) loans. SBA gave this report on June 30: • 165,918 PPP loans were made to PA businesses with an economic impact of $20.7 billion. The PPP loans helped, but when businesses — both those that were closed and others that were open — suffer from weakened sales the result can be worker layoffs and furloughs.

Labor and Industry reported: • Nearly 2.2 million workers filed claims during the 10-week period beginning March 15. • Estimated unemployment compensation payments were $23.7 billion. • May’s unemployment rate was 13.1 percent. The CARES Act gave an extra $600 weekly to those on unemployment through July. It also provided stimulus checks. PA’s Independent Fiscal Office reported in late June that Pennsylvanians received 6.2 million checks with an economic impact of $10.8 billion. In response to the pandemic and collapse of the economy, Congress passed four bills between March 4 and April 24 totaling $3.6 trillion. • Coronavirus Preparedness & Response Supplemental Appropriations Act - $8 billion • Families First Coronavirus Response Act - $192 billion • CARES Act - $2.7 trillion • PPP and Health Care Enhancement Act - $733 billion Pennsylvania has a $25.8 billion fivemonth budget that keeps spending level through November. Painful cuts or increased taxes will be needed to make up for lost revenue projected to be $5 billion by June 2021. The state received $4.9 billion in federal stimulus, but it cannot be used to make up for lost revenues. Stay in motion! mbabizmag.com • AUGUST 2020

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BUSINESS BUZZ | WHAT’S NEW ERIE INSURANCE RANKED NO. 376 FOR 2020 ON FORTUNE 500 LIST

FORTUNE has ranked Erie Insurance number 376 on the 2020 FORTUNE 500 list of largest American corporations, based on total revenue from the 2019 fiscal year. ERIE moved up five spots in the 2020 scorecard. This is the 17th year that ERIE has made the FORTUNE 500, debuting in 2003. “For 95 years, ERIE’s promise to customers has remained the same: to be there when they need us most,” said Tim NeCastro, president and chief executive officer of Erie Insurance. “Continuing to rank among the FORTUNE 500 list companies speaks to our company’s strong financial position and commitment to service.” This year marks the 66th edition of FORTUNE’s ranking of America’s largest companies. According to a FORTUNE news release, FORTUNE 500 companies in total represent two-thirds of the U.S. GDP with $14.2 trillion in revenues (up 4 percent), $1.2 trillion in profits (up 8 percent), $20.4 trillion in market value (down 10 percent) and employ more than 29 million people worldwide. According to A.M. Best Company, Erie Insurance Group, based in Erie, Pennsylvania, is the 11th largest homeowners insurer and 12th largest automobile insurer in the United States based on direct premiums written and the 16th largest property/casualty insurer in the United States based on total lines net premium written. For more information, visit www.erieinsurance.com.

Erie Insurance, headquartered in Erie, Pennsylvania, has made the FORTUNE 500 for the 17th year.

ERIEZ CONTRIBUTES $1 MILLION TO ERIE’S WARNER THEATRE RENOVATION PROJECT

Eriez is contributing $1 million toward the renovation of Erie’s historic Warner Theatre. Amidst a $10-million funding shortfall, Eriez was among other local businesses that stepped up, including Erie Insurance and Erie billionaire Tom Hagen. The Erie County Convention Center Authority is borrowing the balance to close the gap of the roughly $26.7 million project.

The

Eriez is recognized as world authority in separation technologies. The company’s magnetic lift and separation, metal detection, fluid recycling, flotation, materials feeding, screening, conveying and controlling equipment have application in the process, metalworking, packaging, plastics, rubber, recycling, food, mining, aggregate and textile industries. For more information, visit www.eriez.com.

Partner

for your business is a credit union. Checking accounts to credit and debit cards Commercial, real estate and SBA loans Complete line of payment acceptance options Look farther than a big bank for your business needs. One of the great things about doing your business banking with a credit union is that since we’re member-owned, we do not answer to shareholders. You own your business, why not own your bank? To learn more, call us at (814) 825-2436 or go to eriefcu.org Bank. Borrow. Grow.

Insured by NCUA Loans subject to credit approval. Membership eligibility required.

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MBA Ad 0220.indd 1

AUGUST 2020 • mbabizmag.com

2/7/20 4:13 PM


PEOPLE BUZZ | AWARDS AND PROMOTIONS KNOX NAMES CHIEF OPERATING OFFICER, ANNOUNCES INFLUENCER HONOR

GECAC CEO APPOINTED TO EDINBORO COUNCIL OF TRUSTEES

Tara Mobley has joined Knox McLaughlin Gornall & Sennett, P.C. as chief operating officer.

Mobley has extensive experience in financial, human resources, and operations management in banking, manufacturing and public accounting firms. Most recently, she served as vice president of Operations for an investment bank based in Tampa, Florida. At Knox Law, she will supervise all administrative and professional support operations including finance, human resources, organizational development, business development, information systems, risk management, and the firm’s physical facilities. Originally from Northern California, she holds an MBA and a bachelor’s degree in business management. Mobley joins a team of 40 attorneys and 50 support staff at Knox Law, which has provided quality legal services to businesses, governmental entities, nonprofit organizations, insurance companies, financial institutions, individuals and families for more than 60 years. Additionally, Timothy Wachter, lead for Knox Law Public Strategies, has been named to the list of Top 25 Attorney Influencers of 2020 by Opportunity Zone Magazine. He is one of only two attorneys selected from Pennsylvania. Wachter is recognized as a national thought leader in Federal Opportunity Zone Development and regularly advises businesses and stakeholders regarding Opportunity Zone investments. His recent articles are “Opportunity Zones: The Erie Model,” “Opportunity Zones: The Role of Government,” and “Opportunity Zones: 3 Waves of Investment.” According to the site, “Candidates were evaluated based on their vision, influence and industry experience.” The magazine, which is published by Opportunity Zone Expo, recognizes individuals in five categories: attorneys, fund managers/developers, tax specialists, policy influencers and professionals in specialized fields.

The chief executive officer of the Greater Erie Community Action Committee (GECAC) Danny Jones has been appointed to the Edinboro University Council of Trustees.

Prior to taking his current position at GECAC in March 2017, Jones retired as director of student services and homeless liaison for Erie’s Public Schools, a position he held for 24 years. He spent seven years as a drug and alcohol counselor and youth advocate with GECAC at the beginning of his career. Jones serves on the board of directors for Sarah Reed Children’s Center, Empower Erie, Erie Together, Erie County Policy and Planning Council, Junior Achievement and Saint Mary’s Home of Erie. Jones was born and raised in Erie. He graduated from Erie’s Strong Vincent High School and earned his undergraduate in psychology from the University of Pittsburgh. He earned his master’s in Counseling – Student Personnel Services from Edinboro University.

Opportunity Zone Expo is “the country’s leading education, networking and marketing platform for key players in the industry.” At Knox Law, Wachter regularly advises governmental, business and nonprofit clients on highly complex legal, regulatory and public policy related matters. He also regularly provides counsel on matters related to the Pennsylvania Right-toKnow Law to dozens of agencies throughout Western Pennsylvania.

Insurance Name: Jeff Evans

ACES APPOINTS NEW EXECUTIVE DIRECTOR

Americans for the Competitive Enterprise System, Inc. (ACES) announced the appointment of Stacy Bartholomew as executive director of the organization effective immediately.

Title: Employee Benefits Consultant Company: Northwest Insurance Services

According to a press release, Bartholomew has been with ACES for the past six years as programs manager and is dedicated to the organization’s mission and core principles. “ACES is confident that her leadership and guidance of the organization will enhance our programming and image for many years to come,” the release states.

Products/Services Provided: In his role, Evans works with employers to help them address the critical challenges of cost, compliance and employee satisfaction associated with their employee benefit programs. Evans concentrates his efforts on developing cost-containment strategies that will be necessary for employers as they adjust to the challenges of health-care reform in order to comply with upcoming laws and regulations.

Val Laufenberg, past executive director, will continue at ACES in a part-time capacity, lending her many years of expertise. She has been a part of the ACES organization since 1986, helping to bring Pennsylvania Business Week to thousands of area students and teachers, while continuing ACES’ longstanding role in the community as the premier economic education resource.

ERIE ART MUSEUM NAMES INTERIM EXECUTIVE DIRECTOR

The Erie Art Museum recently announced that former NWPA Red Cross Executive Director Pam Masi was named the Erie Art Museum’s interim executive director.

CONTACT INFORMATION: Email: Jeffrey.Evans@northwest.com

Masi began as interim executive director in early April 2020.

Phone: 814/920-1063

Masi was the Red Cross executive director for 12 years. Before that, she was the vice president of communications and fundraising for the MS Society.

Fax: 814/838-1044 Address: 800 State Street, Suite 200 Erie, PA 16501

The Art Museum, located in downtown Erie, holds a collection of more than 8,000 objects, with strengths in American ceramics, Tibetan paintings, Indian bronzes, photography and comic book art.

www.northwest.com

mbabizmag.com • AUGUST 2020

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NOW, MORE THAN EVER, YOUR COMMUNITY NEEDS YOU! You can be a philanthropist with a gift of just $25 or more. Every gift made on Erie Gives is enhanced by the prorated match provided by The Erie Community Foundation and our sponsors. OnlineDonations: On Tuesday, August 11, visit www.ErieGives.org between 8:00 a.m. and 8:00 p.m. and give $25 or more to your favorite nonprofit. Check Donations: Download the check form at www.ErieGives.org and mail with your check to 459 West 6th Street, Erie, PA 16507, by Monday, August 10. Required Minimum Distribution from IRAs: Please contact your advisor or call us at 814-454-0843.

Erie Gives 2020 Tuesday, August 11

8:00 a.m. - 8:00 p.m.

www.ErieGives.org

814-454-0843

Text REMIND to 814-580-5846 to receive updates about Erie Gives.


As part of the 2020 Nonprofit Excellence Awards, The Nonprofit Partnership recently presented the inaugural Lifetime Achievement Award to Erie Community Foundation President, Mike Batchelor, who will retire from his 30-year career in December. When Mike was hired in 1990, the Foundation had a $20M corpus and 53 named endowments. Today, the Foundation has a market value of $286M with over 850 funds. During his tenure, he helped grow community foundations serving Corry, Findley Lake, North East and Union City. He created Erie Vital Signs, which tracks key indicators, and The Nonprofit Partnership that supports local nonprofits. He also directed the creation of Erie Gives, an online giving day that has raised over $26M for local nonprofits. To promote inclusion and diversity, Mike helped launch the Erie Women’s Fund and the LGBT Community Endowment. Most recently, he worked on a partnership with Arctaris Impact Investors and Erie Insurance to infuse $40M into Erie Opportunity Zones.

Congratulations Mike on a successful career!


OUR FOCUS. YOUR VALUE.

LET’S OPTIMIZE YOUR ENERGY STRATEGY. The energy market is constantly evolving. For you, that spells opportunity. By combining our expertise with your needs, we can lead you to an energy plan that yields long-term savings. From upfront analysis to a tailored procurement strategy — diligence through implementation — our team can make energy a key component in driving your business forward.

BidURenergy, Inc. is a wholly owned subsidiary of NRG Energy, Inc. © 2020 NRG Energy, Inc. All rights reserved. 456480665

Judy Rosatti MBA EnergyAdvisor Direct Phone: 814-314-1933


HR CONNECTION | WORKPLACE TRENDS SURVEY TAKES PULSE OF CFO CONCERNS ABOUT COVID-19

Chief financial officers (CFOs) are concerned about a new wave of COVID-19 infections leading to a further economic downturn, according to a recent survey from Big Four firm PricewaterhouseCoopers (PwC). PwC’s sixth COVID-19 CFO Pulse Survey found the biggest concern for finance leaders is a second wave of coronavirus infections (59 percent), followed closely behind by the impact of a global economic downturn (54 percent). In response, CFOs are shifting their focus to how they can create sustainable business models so they can better adapt to the new realities of working and doing business at an unpredictable time.

Avoid the Legal Pitfalls of Management Managers at all levels are held to a high standard of professional, ethical and legal behavior. Every day, these individuals make key decisions that affect the companies for which they work, its employees and its culture as a whole. As a manager, it is essential to understand and adhere to the ethical and legal obligations of your position to meet the expectations of all employees and to set an example of such behavior for others. From your employees’ standpoint, managers and other company leaders are the fabric of your organization. Executives and compliance personnel make policies to reflect the legal and ethical standards workers are expected to measure up to. However, managers must apply, interpret and execute the policies and legal standards sensibly based on the situations employees encounter. When hiring, promoting, implementing discipline or processing a termination, all managers must make these decisions based solely on the employee’s ability to perform the job. Avoid the common legal pitfalls such as: • Poor documentation • Inflated or inaccurate evaluations • Unfair or inconsistent behavior The Manufacturer & Business Association’s Supervisory Skills Series can help you navigate these tricky legal waters. Also, make sure to consult with a member from your HR department with questions and problems. Stay focused on your goal of making the right decisions and getting the right employees in the right positions instead of tripping into a legal pitfall due to poor management.

Tracy-Daggett

Tracy Daggett, PHR is the manager of Professional Development Training Services at the Manufacturer & Business Association. Contact him at 814/833-3200, 800/815-2660 or tdaggett@mbausa.org.

The majority of the 330 U.S. CFOs and finance leaders polled by PwC expected COVID-19 to decrease their revenue or profits (78 percent), but their outlook has improved, with 13 percent of CFOs anticipating a revenue decrease of 25 percent or greater, down seven percentage points from the previous survey. They now have a slightly more optimistic view, 11 percent of the survey respondents see a potential to increase revenue.

PUBLIC HEALTH CRISIS CREATES NEW TYPES OF IN-DEMAND JOBS

The number of jobs lost as a result of the COVID-19 pandemic has far surpassed the losses seen during the 2007-09 Great Recession. But while around 40 million people have filed for unemployment benefits, the public health crisis has also created new types of work. Contact tracers, temperature takers, health monitors and workplace redesigners are jobs that are now booming. “This pandemic has been an unprecedented shock to the labor market and has created a need for new jobs and new skills very quickly,” said Julia Pollak, a labor economist at ZipRecruiter, an online employment marketplace in Santa Monica, Calif. “Here we have a public health disaster that’s created a wide range of roles needed to contain the disease and increase the confidence of American consumers. So they are very important jobs. Many are related to other jobs, with a lot of transferable skills.” COVID-19 has created a paradigm shift in how we think about work and how businesses protect their employees and customers, said Patrick Beharelle, CEO of TrueBlue, a recruiting and staffing firm based in Tacoma, Wash. “The demand for new safety-related roles will continue to grow, and companies will continue to evolve their workplace practices with stricter health protocols and more flexible work options,” he said.

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LEGAL Q&A | GET ANSWERS WE ARE TAKING EMPLOYEE TEMPERATURES AND REQUIRING EMPLOYEES TO NOTIFY US IF THEY TEST POSITIVE FOR COVID-19. MAY WE STORE THIS INFORMATION IN EXISTING MEDICAL FILES INFORMATION OR DO WE HAVE TO CREATE A NEW MEDICAL FILE SYSTEM SOLELY FOR THIS COVID-19 INFORMATION? The Americans with Disabilities Act (ADA) requires that all medical information about a particular employee be stored separately from the employee’s personnel file, thus limiting access to this confidential information. According to the guidance issued by the Equal Employment Opportunity Commission (EEOC), an employer may store all medical information related to COVID-19 in existing medical files. This includes an employee’s statement that he or she has the disease or suspects he or she has the disease, or the employer’s notes or other documentation from questioning an employee about symptoms. IF AN EMPLOYEE HAS A PRE-EXISTING MENTAL ILLNESS OR DISORDER THAT HAS BEEN EXACERBATED BY THE COVID-19 PANDEMIC, MAY HE NOW BE ENTITLED TO A REASONABLE ACCOMMODATION (ABSENT UNDUE HARDSHIP)? The EEOC has stated that although many people feel significant stress due to the COVID-19 pandemic, employees with certain pre-existing mental health conditions, such as anxiety disorder, obsessive-compulsive disorder or post-traumatic stress disorder, may have more difficulty handling the disruption to daily life that has accompanied the COVID-19 pandemic. As with any accommodation request, employers may: • Ask questions to determine whether the condition is a disability; • Discuss with the employee how the requested accommodation would assist him or her and enable him or her to keep working; • Explore alternative accommodations that may effectively meet his or her needs; and • Request medical documentation if needed. WE HAVE AN EMPLOYEE WHO TOOK PAID SICK LEAVE UNDER THE FAMILIES FIRST CORONAVIRUS RESPONSE ACT (FFCRA) AND EXPANDED FAMILY AND MEDICAL LEAVE UNDER THE FFCRA TO CARE FOR THEIR CHILDREN WHOSE SCHOOL WAS CLOSED FOR A COVID-19 RELATED REASON. AFTER COMPLETING DISTANCE LEARNING, THE CHILDREN’S SCHOOL CLOSED FOR SUMMER VACATION. CAN THE EMPLOYEE NOW TAKE EXPANDED FAMILY AND MEDICAL LEAVE TO CARE FOR THEIR CHILDREN BECAUSE THEIR SCHOOL IS CLOSED FOR SUMMER VACATION? The Department of Labor (DOL) issued guidance on this very issue and stated that paid sick leave and emergency family and medical leave are not available if the school is closed for summer vacation (or any other reason that is not related to COVID-19). However, the employee may be able to take leave if his or her child’s care provider during the summer — a camp or other programs in which the employee’s child is enrolled — is closed or unavailable for a COVID-19 related reason.

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AUGUST 2020 • mbabizmag.com

Supreme Court Rules Sexual Orientation, Gender Identity Discrimination Violates Title VII In a highly anticipated decision issued on June 15, 2020, the U.S. Supreme Court has ruled that Title VII of the federal Civil Rights Act (Title VII) protects individuals against employment discrimination based on their sexual orientation or gender identity. The decision settles a dispute among the federal courts and marks a notable expansion to the reach of Title VII. Title VII prohibits employers with 15 or more employees from discriminating against employees and job applicants on the basis of race, color, religion, national origin or sex. Federal courts have previously held that the law’s protections only extend to traditional notions of gender. The Supreme Court’s opinion in Bostock v. Clayton County reverses those rulings, holding that discrimination based on homosexuality or transgender status necessarily involves intentionally treating individuals differently because of their sex, which is prohibited by Title VII. The Court also ruled that when an employer takes adverse action against an individual who is gay or transgender only in part because of that individual’s sex, that action still violates Title VII. This is true even if the employer subjects male and female homosexual or transgender individuals to the same rule. The ruling means employers should review their employment policies and training materials to ensure that employees and supervisors understand that federal law prohibiting discrimination on the basis of sex now includes discrimination on the basis of sexual orientation and gender identity. Employers should also be aware that the Court’s ruling aligns with the Equal Employment Opportunity Commission (EEOC)’s current Title VII enforcement policies and that state laws may specifically prohibit employment discrimination based on sexual orientation and gender identity.

Tammy Lamary-Toman, JD, PHR

is vice president and employment counsel at the Manufacturer & Business Association. Contact her at 814/833-3200, 800/8152660 or ttoman@mbausa.org.


MediPlanConnect offers a turn-key, no cost, personal solution to Manufacturer & Business Association member companies and all your Medicare-eligible employees and retirees. • • • • •

Personal advising and guidance Plan selection Easy enrollment HR support Employee education

Call 717.980.3201 today to connect to a personal MediPlanConnect advisor. Or email info@mediplanconnect.com.

www.MediPlanConnect.com

mbabizmag.com • AUGUST 2020

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help us

do more Donate on Erie Gives Day!

The mission of Lakeshore Community Services is to enhance the lives of people with intellectual and mental disabilities, providing care that promotes self-expression, creativity, and personal choice. We do not define people by their challenges, but by their potential. We are committed to providing care that protects the safety and welfare of every individual we serve.

Be amazing!

Visit LakeshoreCS.org to learn more.

Give a gift of $25 or more

Erie Gives Day |

TUESDAY, AUGUST 11

When you choose Lakeshore as your charity of choice on Erie Gives Day, The Erie Community Foundation and its sponsors will provide a prorated match of your donation. You can be the amazing in someone’s world.

Please donate on August 11 at ErieGives.org.


EVENTS & EXTRAS | NETWORKING AND MORE The Manufacturer & Business Association offers numerous programs and services to assist member companies, including professional development training courses, informational briefings and workshops and networking sessions – in person and LIVEOnline. To learn more, visit www.mbausa.org.

y welcomes MBA Board Chairman Mark Raim r Ross to the U.S. Secretary of Commerce Wilbu Association on July 1.

Secretary Ross visited Howard Industries during his stop in Erie. The visit enabled him to see the dynamic manufactu ring industry found in Northwest Pennsylva nia.

Secretary Ross told business leade rs that the new USMC A trade deal will give America its “most level playing field on our continent since 1994.”

Secretary Ross attended a round table discussion at the Manufactu rer & Business Association that was focused on the new U.S.-Mexico Canada Agreement (USMCA) and other key business topics.

When you give to Crime Victim Center of Erie County, you are giving a voice to the victims who have been silenced. You are giving a fresh start to survivors who have lived with trauma their whole lives. You are giving freedom to those trapped within walls of isolation, fear, and shame.

If you or someone you know needs help or information about our services, CALL US TODAY.

814-455-9414 • www.cvcerie.org

mbabizmag.com • AUGUST 2020

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PRSRT STD US POSTAGE PAID ERIE, PA PERMIT #199

Stick with what works. 96% of businesses that choose UPMC Health Plan stay with UPMC Health Plan. You’ve given a lot of thought to your employees’ health coverage. And you’ve come to a familiar conclusion – nothing’s better than UPMC Health Plan. Choose us for affordable plan options. Full in-network access to UPMC along with other doctors and hospitals in the community. Care when you travel. Service from a designated Health Care Concierge. And health tools that keep up with busy lives and schedules. All this is worth sticking with, don’t you agree? To learn more, visit UPMCHealthPlan.com/employer. #stickwiththeplan


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