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This Community Newspaper is a weekly publication of Escambia / Santa Rosa Bar Association
Section A, Page 1
Vol. 14, No. 50
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December 24, 2014
1 Section, 4 Pages
Raising the Minimum Wage By Josh Newby
Minimum wage workers in Florida got a raise on Jan. 1 of this year. On that date, an automatic increase of 12 cents per hour, calculated annually according to the federal Consumer Price Index, went into effect, boosting the state’s minimum wage from $7.93 to $8.05. For tipped employees, wages increased from $4.91 to $5.03. For minimum wage workers, this increase amounts to $4.80 every 40 hours and $249.60 a year. While this increase may seem trivial, the increase always sparks debate and passionate outcries on either side. Florida is currently ahead of the federal minimum wage of $7.25— which has not been increased since 2009—but far below the $10.10 pitch made by President Obama as part of his 2010 State of the Union address, and far, far below countries like Australia and France that boast wage minimums of over $12. The United States began the minimum wage as part of the Fair Labor Standards Act of 1938, which has increased 22 times under 12 presidents and is enforced by the Department of Labor. According to economic policy leaders in the nation, minimum wage should be $18.28 to keep pace with labor productivity. However, that presents a whole range of problems. Today, a number of alternatives to the minimum wage have been presented to mitigate the damaging effects of increasing the burden on businesses. “A higher wage is obviously a good thing for that minimum wage worker, but it is often disadvantageous for businesses, which are always working to keep input costs under control and maximize output,” said Dr. Rick Harper, executive director of the University of West Florida Office of Economic Development and Opportunity. “Enacting a higher minimum wage incentivizes businesses to use alternative, cheaper forms of input, which leads to innovation and substitution possibilities.” Harper explained that, at a place like McDonald’s, which relies on minimum wage workers for a bulk of their labor force, a higher wage often causes opposite of the intended effect. While many hope that a higher minimum wage will mean greater economic prosperity for workers and perhaps less than gratuitous profits for the company, organizational leadership often looks at technologybased innovations to replace workers,
even though the investment may be more expensive up front. “So what ends up happening, is people get laid off in favor of cheaper, technology-based labor,” said Harper. “Most minimum wage workers do get to keep their jobs, and that’s great for them, but there are a minority that get replaced. Businesses are always looking to keep their labor costs down. As labor costs go up, it’s going to become more attractive to economize the use of labor.” It is the people who don’t have a job, and are having a hard time getting a job—often the young and minorities—who are most adversely impacted by a minimum age increase. Innovations in the field often price them out of the job, which means less entry-level workers. This of course leads to a cyclic, systemic problem of a skill-less labor market. “Those people are going to be hurt,” said Harper. “Unskilled workers are priced out of the market.” And a higher minimum wage affects different parts of the state different. For example, in Miami, where land is scarce, the minimum wage is 11 percent higher than the national average, yet not many workers are affected because prices are lower. In Pensacola, the effect of a higher minimum wage would be more immediate and more negative. “The effects, good and bad, differ by sector more than the size of the business,” said Harper. “Obviously, a region highly dependent on service and food industries is going to see more the effects than a technology sector.” A higher minimum wage is not all bad, though. Those with low wages tend to spend their money right away, which boosts the economy. While the wealthy tend to save more, poor workers do not have that luxury, and their increase gets put back into the system almost immediately. But Harper fears that the positive effects do not outweigh the long-term negative effects. Thankfully, there is another way. “A nation as wealthy as America should still be able to have a class of working poor that can put food on the table, but the answer is not via increasing the minimum wage,” said Harper. “The earned income tax credit is a more economically viable option that is better for both sides of the equation—the worker and the em-
ployer. It mitigates the negative effects of a high minimum wage.” The Earned Income Tax Credit (EITC) is a refundable tax credit for low to moderate income working people; essentially, it gives people’s money back to them. Right now, the amount of the EITC depends on the recipient’s income and number of children. By increasing the EITC and extending it to those who do not have children, Harper believes the burden of supplementing low wages can transfer from private sector businesses to the United States Treasury. Right now, about one if five people, or 28 million taxpayers, receive the credit. “When the minimum wage is lower, that encourages employment because it makes workers affordable,” said Harper. “If we can favor a lower amount while increasing the maximum amount one can receive on the EITC, that’s helpful for everyone.” When the minimum wage goes up, companies respond not by cutting the wages of presidents and CEOs, but by passing the price on to the consumer. “A company that is often hated for
this is Walmart, which relies on both low-income workers and shoppers,” said Harper. “They respond to higher wages by raising the prices of the goods they sell. They do this, though, because investors only want companies with a high profit margin. Thus, in a case like Walmart, their profits continue to soar while their workers and shoppers are disadvantaged.” They cannot necessarily be blamed for this. It is simple economics. Instead of working against the laws of economics, Harper said, it is better to lean into them and put them to work for the working poor. “An expanded EITC does just that,” said Harper. “It does a better job of increasing equity. The feds send a debit card with money on it or make direct deposits into an individual’s bank account. This is coming from the treasury, so the taxpayers are footing the bill, not businesses that employ people. This keeps costs at businesses low while giving more individuals more buying power.” The data shows that this makes a measurable impact, too. When individuals receive one large, lump-EITC sum at the beginning of each year,
they spend it quickly and the effects are powerful but short-lived. By spreading it throughout the year, poor families can be sustained for longer and the businesses they shop at benefit, thus enabling them to hire more workers to keep up with demand. And it seems to work, too. Sixty percent of those who get the benefit stop claiming it after just two years. The issue is very political, though. Some support an expanded EITC while others cry redistribution of wealth. There have also recently been reports of EITC fraud, bogus claims, and errors in the billions of dollars. “The real issue is that people don’t understand the effects of both sides,” said Harper. “These people, the people who get up and go to work, especially the young and minorities, deserve to put food on their table. They deserve to not live in systemic poverty their whole lives. The best way to do that is to implement policy that doesn’t put the burden on businesses that employ these very people, but on those who can actually afford it.”
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December 24, 2014
The Summation Weekly NEWS FROM THE BAR ASSOCIATION
520 APPLICATIONS RECEIVED FOR 2015 CLASS OF BOARD CERTIFIED LAWYERS TALLAHASSEE – The Board of Legal Specialization and Education (BLSE) received 520 applications for the 2015 class of board certified lawyers, with five practice areas seeing applications jump by more than 30 percent over the previous year. “Every year we see the numbers of attorneys applying for board certification grow,” said Jack Pelzer, BLSE chair. “Not only is this very gratifying, it is a tangible demonstration that attorneys, their employers and their clients understand the value of this achievement. Attorneys become better, and the profes-
sion becomes better, through the process of obtaining and maintaining certification. All attorneys are encouraged to strive for this credential.” Only board certified lawyers may use the terms “specialist,” “expert” or “B.C.S.” for Board Certified Specialist when referring to their legal credentials.
Board certified lawyers are evaluated for professionalism and tested for expertise. Fifteen of the 24 areas of certification maintained or increased applications from 2014 to 2015, with Admiralty and Maritime Law seeing a whopping increase of 300 percent. State and Federal Government and Administrative Practice applications increased by 50 percent. Applications also increased significantly for Real Estate (38 percent), Appellate Practice (38 percent) and Immigration and Nationality (31 percent). Applications also increased for Construction Law, Education Law and International Law. Applications for board certification have risen steadily nearly every year since 2008,
TO BE MADE Judicial Nominating Commissions: One lawyer vacancy for each of the 26 JNCs. The Florida Bar has the opportunity to nominate three lawyers for each Judicial Nominating Commission to the Governor for his appointment. Each appointee will serve a four-year term, commencing July 1, 2015. Applicants must be engaged in the practice of law and a resident of the territorial jurisdiction served by the commission to which the member is applying. Commissioners are not eligible for state judicial office for vacancies filled by the JNC on which they sit for 2 years following completion of their term. Applications must be submitted no later than 5:30 p.m., Monday, March 2, 2015 in the Executive Director’s office of The Florida Bar. Resumes will not be accepted in lieu of an application. Screening committees of the Board of Governors will review all JNC applications. The Executive Committee will then make recommendations to the Board of Governors. Persons interested in applying for any of these vacancies may download the proper application form (there is a specific JNC application) from The Florida Bar's website, www.floridabar.org, or call Bar headquarters at (850) 561-5757, to obtain the application. Completed applications must be received by the Executive Director, The Florida Bar, 651 East Jefferson Street, Tallahassee, Florida 32399-2300 by the March 2 deadline date.
lawyers, continuing legal education and passing an examination. Board certification is valid for five years. Over the five-year period, the lawyer must continue to practice in the specialty area and attend Florida Bar-approved continuing legal education courses. Recertification requirements are similar to those for initial certification. Not all qualified lawyers are board certified, but those who are have taken the extra steps to have their competence, experience and professionalism evaluated. For more information, please visit The Florida Bar website at floridabar.org/certification or contact The Florida Bar’s Legal Specialization & Education Department at 850/561-5842.
FLORIDA BAR BOARD OF GOVERNORS ELECTION RESULTS
2015 JUDICIAL NOMINATING COMMISSION NOMINATIONS
with applications for 2015 showing an increase of 20 percent over those filed for 2008. Board certification recognizes lawyers’ special knowledge, skill and proficiency in various areas of law and professionalism and ethics in practice. A lawyer who is a member in good standing of The Florida Bar and who meets Supreme Court prescribed standards may become board certified in one or more of 24 fields of practice. Nearly 4,700 of Florida’s 100,000 lawyers are board certified. Board certification is a rigorous process, and minimum standards include: five years of law practice, substantial involvement in the field of law for which certification is sought, confidential peer review by judges and
TALLAHASSEE – West Palm Beach attorney David C. Prather and Tampa attorney William J. Schifino Jr. are both running for president-elect of The Florida Bar. Additionally, 19 incumbents on the Board of Governors were re-elected without opposition, one is newly elected, and two seats – in the 11th and 16th circuits – have contested elections. Ballots will be mailed to all eligible voters by March 2, 2015, and must be received before midnight EST on March 23, 2015.
The 19 incumbents re-elected without opposition for two-year terms (2015-17) are: • • • • • • • • • • • • • • • • • • •
2nd Circuit, Seat 1 – Lawrence E. Sellers Jr., Tallahassee 4th Circuit, Seat 2 – Michael G. Tanner, Jacksonville 5th Circuit, Seat 1 – Renee E. Thompson, Ocala 6th Circuit, Seat 2 – Sandra Fascell Diamond, Seminole 8th Circuit, Seat 1 – Carl B. Schwait, Gainesville 9th Circuit, Seat 2 – Paul L. SanGiovanni, Orlando 11th Circuit, Seat 4 – Michael J. Higer, Aventura 11th Circuit, Seat 6 – Steven W. Davis, Miami 12th Circuit, Seat 1 – F. Scott Westheimer, Sarasota 13th Circuit, Seat 2 – Lansing C. Scriven, Tampa 13th Circuit, Seat 3 – Margaret Diane Mathews, Tampa 15th Circuit, Seat 2 – Ronald P. Ponzoli Jr., West Palm Beach 15th Circuit, Seat 4 – Gary S. Lesser, West Palm Beach 17th Circuit, Seat 2 – Diana Santa Maria, Fort Lauderdale 17th Circuit, Seat 3 – Lorna E. Brown-Burton, Deerfield Beach 17th Circuit, Seat 5 – Adam Rabinowitz, Fort Lauderdale 19th Circuit, Seat 1 – John M. Stewart, Vero Beach 20th Circuit, Seat 2 – Marcy L. Shaw, Fort Myers Out-of-State, Seat 3 – Eric L. Meeks, Cincinnati, Ohio
Newly elected for a two-year term (2015-2017) is: • Out-of-State, Seat 1 – E. Duffy Myrtetus, Richmond, Va. The seat was previously held by Richard A. Tanner, formerly of Montclair, N.J.
Contested races
Escambia-Santa Rosa Bar Association CLE Library • 2014 Survey of Florida Law: 12 General Includes 3.5 Ethics Credits • Family Law 101: 7.5 Credits • 2014 Medicare/Medicaid Lien Seminar: 3.0 Credits • Ethics/Professionalism/Substance Abuse Seminar: 4.0 General, 3.0 Ethics, 1.0 Substance Abuse Credits • Elder Law: 3.0 Credits
• 11th Circuit, Seat 2 – Incumbent Dori Foster-Morales, Miami, is being challenged by Marlon Weiss, Miami. • 16th Circuit, Seat 1 – Candidates Meghan M. Benstead, Key West, and Bernadette Restivo, Key Largo, are running for the seat vacated by Judge Timothy J. Koenig. The Board of Governors is the Bar’s governing body, with exclusive authority to formulate and adopt matters of policy concerning the activities of the Bar, subject to limitations imposed by The Rules Regulating The Florida Bar. The 52-member board is composed of: • The Bar president and president-elect; • The president and president-elect of the Young Lawyers Division; • Representatives elected by members of the Bar from each of the state's 20 judicial circuits; • Four out-of-state representatives elected by Florida Bar members who reside outside of Florida; • And two public members appointed by the Florida Supreme Court.
• Whose Side Are You On? Superman’s or The Elites: 1.0 Ethics Credit • Protecting Business By Intellectual Property: 3.5 Credits • Business Valuation Seminar: 1.0 Credit • Domestic Violence/Substance Abuse/Mental Health Law: 4.0 General, 1.0 Mental Illness, 1.0 Substance Abuse Credits • Collaborative Divorce 101: 1.0 Credit • Maritime Law: 2.0 Credits • Florida Courts E-Filing Portal & Relevant Rules: 3.0 Credits • Accident Reconstruction & Analysis: 4 Credits $10 Per Credit Member $20 Per Credit Non-Member Call 434-8135 to order your CLE today!
Professionalism Awards Nomination Deadlines Approaching The Florida Bar’s Standing Committee on Professionalism is now accepting nominations for the William M. Hoeveler Judicial Professionalism Award, the Group Professionalism Award, and the Law Faculty/Administrator Professionalism Award. The William M. Hoeveler Judicial Professionalism Award is for either a state or federal judge “who best exemplifies strength of character, service, and competence as a jurist, lawyer, and public servant.” The purpose of the Group Professionalism Award is to find one organization that has an innovative program that can be implemented by other organizations to promote and encourage professionalism within the legal community. The Law Faculty/Administrator Professionalism Award is intended to honor a faculty member or administrator who through teaching, scholarship, and service to the profession best supports or exemplifies the mission of the Standing Committee on Professionalism. The deadline for nominations and all supporting documents for the William M. Hoeveler Judicial Professionalism Award is February 2, 2014. The deadline for nomination packets for the Law Faculty/Administrator Professionalism Award and the Group Professionalism Award is Feb. 16, 2014. All nomination forms can be found on the Center's website at www.floridabar.org/professionalism - under the “Awards” section - and must be submitted to the Henry Latimer Center for Professionalism.
The Summation Weekly
December 24, 2014
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NEWS FROM THE BAR ASSOCIATION ANNOUNCEMENTS Local Attorney Julian Harris is closing his office on 2090 N. Palafox Street and is giving away Decorative Law Books (all or nothing). If interested call 850-433-7954
University of West Florida 4th Annual Mock Trial Competition
SUBSCRIPTION RATES: $20/year (All ESRBA Members) $22.50/year (Escambia / Santa Rosa / Okaloosa County Non-Members) $27.50/year (Other counties within Florida and all other states Non-Members) www.summationweekly.com A Publication of the Escambia / Santa Rosa Bar Associaion
UWF will host its 4th annual mock trial competition on the UWF campus on Jan. 17 and 18, 2015. Volunteer judges are needed for each round. We will provide training before each round. If you are interested or would like more information, please contact UWF faculty sponsor Kimberly McCorkle Tatum at ktatum@uwf.edu or by phone at 857-6198. We need volunteer judges for any of the four rounds: Saturday at 8:30 am, Saturday at 1:00 pm, Sunday at 8:30 am, and Sunday at 1:00 pm.
EXECUTIVE DIRECTOR MICHAEL A. DOUBEK mike@esrba.com MEMBER SERVICES SPECIALIST JASON BOATWRIGHT jason@esrba.com BAR OFFICE 216 S. TARRAGONA ST., SUITE B PENSACOLA, FL 32502 BAR OFFICE PHONE: 434-8135 BAR OFFICE FAX: 436-8822 EMAIL: esrba@esrba.com WEBSITE: www.esrba.com
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The Summation Weekly