Ohio PHC Contractor by Blue Water Publishers, LLC

OHIO PHC CONTRACTOR • Volume 2012, Issue 2

Volume 2012, Issue 2 • OHIO PHC CONTRACTOR

The Ohio PHC Contractor is the official publication of the Plumbing-Heating-Cooling Contractors of Ohio 20040 Carolyn Avenue Rocky River, OH 44116 800-686-PHCC Fax: 216-393-0095 www.phccohio.org / www.facebook.com/phccohio

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Volume 2012 Issue 2

Advertisers Index Avizent 12 Boyd Lofgren & Company

Bradford White

Champion Pumps

FastEst, Inc.

Federated Insurance

Grundfos

6, 23

Hodes Company

Insinkerator 9

A Message From the President 6

Liberty Pumps

R. L. Deppmann

A Message From PHCC National Assoc. Ex. V.P., Gerry Kennedy 8

Legally Speaking: Employers Facing Big Facebook Challenges 10

Robertson Heating Supply

Saniflo 11 T&S Brass

Turbonics

Viega 7

Save-the-Date: 2013 PHCC/ACCA Ohio Convention & Expo 11 Keeping Score: Retirement Plans 13 PHCC Benefits Brochure 17

Welker McKee

PHCC Membership 50% Discount Offer 24

Woodford Manufacturing

PHCC Membership Application 25

Ohio PHC Contractor is a news magazine produced by the Ohio Association of PlumbingHeating-Cooling Contractors. Articles published in this magazine are the views and opinions of the writers and do not necessarily reflect the views or opinions of the Ohio Association of PlumbingHeating-Cooling Contractors. Publication in Ohio PHC Contractor should not be construed as an endorsement by the Association. Ohio PHC Contractor is the official magazine of the PHCC of Ohio and is published quarterly. News items from Ohio PHCC members are accepted. For information on advertising, contact: Jim Aitkins, Blue Water Publishers phone: 360.805.6474 • fax: 360.805.6475 jima@bluewaterpublishers.com 4

Departments:

OHIO PHC CONTRACTOR • Volume 2012, Issue 2

PHCC of Ohio 2012 - 2013 Officers & Board 30

Features: What Can the Association Do for Me? 16 Membership Milestones 26 Let’s Talk Safety 27 What the Supreme Court Health Care Opinion Means for HVAC & Plumbing Contractors 28 BWC Approves Base Rate for the July 1, 2012 Rate Year 29

Zero or even below, the Woodford 65/67 series commercial wall hydrants will tolerate any temperatures without freezing. All drain automatically, even with a hose attached. The 67 models include an ASSE Standard 1052 approved backflow preventer connection…and all come with Woodford quality, durability, and the ability to tolerate anything Mother Nature can throw at them.

WOODFORD 65/67 SERIES FREEZELESS WALL HYDRANTS

Model 67 Freezeless Wall Hydrant with backflow prevention The ASSE 1052 approved double check is field testable. Designed to complement modern architecture. The Model 65 offers the same features with an ASSE 1019 vacuum breaker.

RB67 Round Box Freezeless Wall Hydrant Fits through standard 6” diameter cored hole. Supplied with a ASSE 1052 approved double check backflow preventer that is field testable. Designed especially for tilt-up wall construction. Also available as the RB65 with ASSE 1019 approved vacuum breaker.

B67 Freezeless Wall Hydrant with double check backflow protection A rectangular version of our RB67, with backflow prevention. Also offered as the B65.

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Choose from backflow prevention (67 series) or anti-siphon vacuum breaker (65 series) hose connections. Volume 2012, Issue 2 • OHIO PHC CONTRACTOR

Departments

From the President Greg Eisenhart

he part of Ohio that I am from has long been classified as Appalachia and has suffered a depressed economy for quite some time. Lately, as the oil and gas industry has found new deposits in our area, we have started to see uplift (however slight) in our economy. While we don’t deal directly with the oil and gas reps, we have had different vendors stop in for parts and services. This lends itself to help and boost our bottom line. I believe in the coming year, from all indications, our region will see tremendous growth and vitality from the industry - especially the trickle down effect from the process. These events are predicted to last from fifteen to twenty-five years. What a welcome change in our economy this will be for our industry and all others. While the drillers may not need a plumbing or HVAC tech, there are many areas (parts and services) that we can realize some growth in. Businesses these days have to adapt to the changing environment that we find ourselves in. If you don’t change, you will get left behind and someone else will profit from it. Another big news story is the U.S. Supreme Court upholding Obamacare (health reform). This has the potential to

affect every business in the country. I wish I could tell you how, but as far as I know, no one understands the bill so no one understands how it will affect their business. The popular saying in the government before it was passed was, “let’s pass it and then figure out what it means.” Don’t you wish you could take such a lackadaisical look at your business affairs? As I have mentioned in the past, our legislative efforts have to be foremost in our minds or we will get left in the dust while other groups’ interests override ours. I continue to encourage giving to our PAC fund so we can keep our voice heard in the state and get our important items heard by our elected officials. This is the only way to protect ourselves and our businesses from disruptive forces that do not have our best interest at heart. I hope this note finds you and yours well and let’s continue our efforts to make the plumbing and heating industry a vital and successful part of our state’s economy.

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OHIO PHC CONTRACTOR • Volume 2012, Issue 2

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Introducing the Viega MegaPress® System for Black Iron Pipe

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Viega’s new carbon steel MegaPress and MegaPressG fittings are the fast, clean, secure way to connect black iron systems. Rick DeLuga of Atomatic Mechanical Services in Itasca, IL, experienced extraordinary time savings because there was virtually no cleanup. Viega MegaPress and Viega MegaPressG • The only carbon steel press fitting system for water and gas applications • Flameless press technology reduces installation time up to 60 percent • Provides security – join pipe consistently with no manual tightening • Patented Smart Connect® feature helps installers ensure secure connections

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Viega MegaPress and Viega MegaPressG for water and gas applications. The global leader in plumbing, heating and pipe joining systems Volume 2012, Issue 2 • OHIO PHC CONTRACTOR

Looking Forward to CONNECT 2012! October 3 - 5, 2012

here is a lot of positive energy building about CONNECT 2012, Oct. 3-5 at the Philadelphia Marriott. This historic East Coast city is going to be a beautiful place to visit in the fall, and the event’s programming could not be better. We are hoping that many of you will be able to attend this fun and exciting annual conference. Here are some of the highlights that should convince you to be part of this experience: Opening Reception The opening reception on Oct. 3 will take place at the Fairmount Water Works Restaurant, known as Philadelphia’s Landmark Dining Experience. You’ll enjoy breathtaking views, first-class service and delicious cuisine at the restaurant, which is part of an overall building complex of classic Greek and Roman architecture overlooking the Schuylkill River. After grabbing a bite to eat and drink, be sure to visit the Water Works Interpretive Center, where you can learn more about this national historic landmark that originally was one of America’s first municipal water delivery systems. Keynote Speaker and Showcase The next morning, keynote speaker Jason Ryan Dorsey will provide motivating guidance on “Crossing the Generational Divide.” During this entertaining session, you’ll learn how to interact effectively with the multiple generations that you encounter in your personal life or workplace, particularly Generation Y. Right after the keynote, the Product & Technology Showcase will be open from 9 a.m.-2 p.m., giving you plenty of time to walk the show floor and check out the PHCC Educational Foundation’s Plumbing Apprentice Contest. Educational Opportunities Be sure to attend as many educational sessions as your schedule will permit, as there are some topics and speakers that should be of interest. Consumer marketing, employee recruitment, managing your family business, upcoming leadfree product regulations, entrepreneurship and search engine optimization are a few examples.

OHIO PHC CONTRACTOR • Volume 2012, Issue 2

And while in By Gerry KennedyPHCC Philadelphia, make National Association time to visit places like Executive Vice President Independence Hall, the Liberty Bell, the Philadelphia Museum of Art and Longwood Gardens. I think you’ll be impressed with all the city has to offer. This action-packed, stimulating conference will be here before you know it. If you’re not a member of PHCC, this would be a perfect opportunity to check out all the association has to offer, and meet fellow contractors from all over the nation. For more information about CONNECT 2012, visit www.phccweb.org/connect, email connect2012@naphcc.org or call (800)533-7694.

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help you improve customer satisfaction and your bottom line. It’s fun, easy and will only take a few moments of your time. Everyone who completes the Test Drive will be entered to win a grand prize trip to Orlando and a racing event at Daytona, or one of two ﬁrst-place trips to Richard Petty Driving Experience in Las Vegas. Plus every week, we’ll be drawing names for a free iPad. So the sooner you get started, the more chances you have to win. But you’ll need to make your move fast; the program is only online from July 2 to September 30, 2012.

Visit insinkerator.com/testdrive to get started. NO PURCHASE NECESSARY. A PURCHASE WILL NOT IMPROVE YOUR CHANCES OF WINNING. “iPad” and the iPad design are registered trademarks of Apple Inc. Open only to legal U.S. residents 21 or older who are currently employed full or part time as a plumbing contractor involved in the purchase and/or installation of InSinkErator products. SWEEPSTAKES IS NOT OPEN TO THE GENERAL PUBLIC. Sweepstakes begins 7/2/12 and ends 9/30/12. Void where prohibited. Sweepstakes subject to ofﬁcial rules available at the InSinkErator training site or by sending a SASE to BI WORLDWIDE - Attn: InSinkErator Contractor Training Sweepstakes - CG4, 7630 Bush Lake Road, Minneapolis, MN 55439 to be received by 9/30/12. SPONSOR. InSinkErator, 4700 21st Street, Racine, WI 53406. *The mounting collar conﬁguration is a trademark of Emerson Electric Co.

Volume 2012, Issue 2 • OHIO PHC CONTRACTOR

Departments

Legally Speaking

Bob Dunlevey Dunlevey, Mahan & Furry

EMPLOYERS FACING BIG FACEBOOK CHALLENGES

isgruntled employees are utilizing social media to launch out at their employers and fellow employees. Through the use of Facebook, Twitter, blogs, and the like, these attacks are significantly harming the goodwill of companies and the morale of employees. It is the biggest HR challenge facing employers today. Unfortunately, the National Labor Relations Board, which regulates both union and non-union companies, is taking great efforts to protect these disgruntled employees from discharge and discipline and is actively waging a battle against employers in an effort to further extend the rights of employees in the workplace. Each employer needs to understand the current status of the law in order to protect its interests and avoid liabilities. The employees’ water-cooler chatting has been replaced by online social networking and the power of social media is staggering. There are more than 800 million active Facebook users with over half of them logging on every day. Over 130 million Twitter users average approximately 200 million Tweets per day. People spend more than 700 billion minutes per month on Facebook. Yes – billions! Most alarming, the average U.S. worker spends approximately five hours per month on social media sites while at work. Do employees have a right to use social media sites before, during and after work? May you monitor their activities? Do you need a social media policy? These are just some of the issues employers are grappling with today because approximately half of them have already felt the brunt of employees using social media to attack them and only about 25% of them actually have a policy. Even though the National Labor Relations Act has been in existence since 1935, most employers do not realize that the NLRB has jurisdiction over non-union companies and the Act is equally applicable to them. The current regime in

Washington has stated that strong unions are as important to developing a strong middle class as boosting college graduation rates. To accomplish their goal of increasing unionization nationally, Washington has launched a social media initiative to give non-union employees broader rights to use social media for attacking employers and making their workplaces unionized. In addition, the NLRB is in the midst of compelling employers to display large posters identifying such employees’ rights. Implementation is scheduled for April 30, 2012. The law states that employees have the right to combine together to speak out about wages, hours and conditions of employment. When an employee posts an attack about an employer’s vacation policy or what he or she perceives to be an unfair discipline or discharge, that employee may very well be engaging in protected activity free from employer reprisals. But, often contained within the postings are sharp, disparaging comments about the employer, its business, the quality of its products, and its employees. Regrettably, the NLRB frequently finds these inflammatory statements to be acceptable for publication free from reprisal by the employer. Mockery and sarcasm are frequently found to be acceptable by the NLRB. The NLRB just released an “Advice Memo” which addresses sample cases, most of which resulted in the employer being found subject to unfair labor practice charges and financial consequences. The memo is merely guidance, however, and not the law. It is what the NLRB would like you to believe is the law when in fact it is an overstatement of it. It references that there are 75 test cases which have been sent to Washington recently for consideration and prosecution and the NLRB’s General Counsel is soliciting additional test cases from the various regional offices. You could be the next test case! continued on page 12

OHIO PHC CONTRACTOR • Volume 2012, Issue 2

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implementation and administration of the policy. • Consider prohibiting the use of personal social networking while at work. • Give a strong notice to all employees that monitoring will occur in order to reduce an employee’s expectation of privacy. • Instruct employees to use disclaimers when networking that their views are their own and not the employers. • Have a reporting procedure for possible policy violations. • Prohibit employees from using company systems for illegal activities. • Scrutinize your other policies regarding such things as confidentiality, harassment, business ethics, computer use, and customer information – they may contain illegal restrictions on employees’ rights now that the NLRB has changed its position. • Watch for developments in this area of the law because they are coming quickly. • Install a union aversion program to explain to your employees why they do not need a third party union to represent them. To receive a model social media policy and/or PowerPoint presentation addressing this topic, contact Bob Dunlevey at Dunlevey, Mahan & Furry (937) 223-6003 or rtd@dmfdayton. com.

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So what do you need to do today as a concerned employer? • Create and publish a lawful social media policy and train employees on your expectations. • Appoint one of your managers to be responsible for the 12

OHIO PHC CONTRACTOR • Volume 2012, Issue 2

Quality

We know workers’ comp. Stability

While the current status of the law permits employees to say and do things which are highly offensive to the average employer, its employees and customers, there remains some limitations on what an employee can say. An employer’s confidential, proprietary, trade secret information cannot be divulged. Criticisms of fellow employees based upon race, religion, age and other such categories remain unprotected, along with such things as sexually harassing comments. Threats of violence are also unprotected. But, published comments containing obscenity, profanity, bullying, and certain defamatory statements have been found to be acceptable to the NLRB when the communications also address wages, hours or conditions of employment. Key considerations in the NLRB’s rulings on media policies and related discipline are: • Whether other employees joined in the discussions; • Whether the issues are related to work concerns employees previously raised with management; • Whether the postings were started purely for personal reasons; • Were the employees’ comments so egregious they lost legal protections? The NLRB has already found illegal employers’ disciplinary policies which speak in terms of prohibiting “disrespectful” and “inappropriate” comments on the basis that these terms are vague and could chill employees’ rights to speak out. Policies prohibiting employees from using social media to discuss their wages, hours or conditions of employment have been found violative of the NLRA as well. Work rules which prohibit posting a statement that lacks truthfulness and might “damage the reputation” or “goodwill” of the employer have been adjudged illegal and unenforceable also. Employees terminated under these illegal policies have been ordered reinstated with back pay and benefits. Moreover, the employer is then required to display a notice before all employees regarding their rights to form and join a union and to speak out regarding wages, hours and conditions of employment. These NLRB postings are an open invitation to union organizational activities, place the employer in a bad light, and give employees a “green light” to do more social networking about their company. Even more alarming is that when the employer threatens to sue an employee for engaging in this harmful and sometimes defamatory activity, it can create an additional cause of action for the employee against the employer. Employers must not be quick to have their business attorney shoot off a threatening letter to an employee doing a posting.

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Departments

Keeping Score

Michael Bohinc. CPA

RETIREMENT PLANS

ast issue we finished discussing the 8 steps of retirement planning. Now, let’s take a look at some of the different types of plans that are available to companies and others which are available to individuals. Retirement plans are usually either IRA-based (like SEPs and SIMPLE IRAs) or “qualified” (like 401(k)’s, profit-sharing plans, and defined benefit plans). Qualified plans are generally more complicated and expensive to maintain than IRA-based plans because they have to comply with specific Internal Revenue Code requirements in order to qualify for their tax benefits. Also, qualified plan assets must be held either in trust or by an insurance company. With IRA-based plans, your employees own (i.e. “vest”) in your contributions immediately. With qualified plans, you can generally require that your employees work a certain numbers of years before they vest. Which plan is right for you? With a dizzying array of retirement plans to choose from, each with unique advantages and disadvantages, you’ll need to clearly define your goals before attempting to choose a plan. For example, do you want:  To maximize the amount you can save for your own retirement?  A plan funded by employer contributions? By employee contributions? Both?  A plan that allows you and your employees to make pretax and/or Roth contributions?  The flexibility to skip employer contributions in some years?  A plan with lowest costs? Easiest administration? The answers to these questions can help guide you and your retirement professional to the plan (or combination of plans) most appropriate for you. SEPs (Simplified Employee Pension) A SEP allows you to set up an IRA (a “SEP-IRA”) for yourself and each of your eligible employees. You contribute

a uniform percentage of pay for each employee, although you don’t have to make contributions every year, offering you some flexibility when business conditions vary. For 2012, your contributions for each employee are limited to the lesser of 25% of pay or $50,000. Most employers, including those who are self-employed, can establish a SEP. SEPs have low start-up and operating costs and can be established using an easy two-page form. The plan must cover any employee aged 21 or older who has worked for you for three of the last five years and who earns $550 or more. SIMPLE (Savings Incentive Match Plan For Employees) IRA plan The SIMPLE IRA plan is available if you have 100 or fewer employees. Employees can elect to make pretax contributions in 2012 of up to $11,500 ($14,000 if age 50 or older). You must either match your employees’ contributions dollar for dollar--up to 3% of each employee’s compensation-or make a fixed contribution of 2% of compensation for each eligible employee. SIMPLE IRA plans are easy to set up. You fill out a short form to establish a plan and ensure that SIMPLE IRAs are set up for each employee. A financial institution can do much of the paperwork. Additionally, administrative costs are low. Profit-sharing plan Typically, only you, not your employees, contribute to a qualified profit-sharing plan. Your contributions are discretionary--there’s usually no set amount you need to contribute each year, and you have the flexibility to contribute nothing at all in a given year if you so choose (although your contributions must be “substantial and recurring” for your plan to remain qualified). The plan must contain a formula for determining how your contributions are allocated among plan participants. A separate account is established for each participant that holds your contributions and any investment gains or losses. Volume 2012, Issue 2 • OHIO PHC CONTRACTOR

401(k) plan The 401(k) plan has become a hugely popular retirement savings vehicle for small businesses. According to the Department of Labor, an estimated 60 million American workers are enrolled in 401(k) plans with total assets of about 3 trillion dollars. With a 401(k) plan, employees can make pretax and/ or Roth contributions in 2012 of up to $17,000 of pay ($22,500 if age 50 or older). These deferrals go into a separate account for each employee and aren’t taxed until distributed. You can also make employer contributions to your 401(k) plan-either matching contributions or discretionary profit-sharing contributions. Combined employer and employee contributions for any employee in 2012 can’t exceed the lesser of $50,000 (plus catchup contributions of up to $5,500 if your employee is age 50 or older) or 100% of the employee’s compensation. 401(k) plans are required to perform somewhat complicated testing each year to make sure benefits aren’t disproportionately weighted toward higher paid employees. However, you don’t have to perform discrimination testing if you adopt a “safe harbor” 401(k) plan. With a safe harbor 401(k) plan, you generally have to either match your employees’ contributions (100% of employee deferrals up to 3% of compensation, and 50% of deferrals between 3 and 5% of compensation), or make a fixed contribution of 3% of compensation for all eligible employees, regardless of

whether they contribute to the plan. Your contributions must be fully vested. Another way to avoid discrimination testing is by adopting a SIMPLE 401(k) plan. These plans are similar to SIMPLE IRAs, but can also allow loans and Roth contributions. Because they’re still qualified plans (and therefore more complicated than SIMPLE IRAs), and allow less deferrals than traditional 401(k)s, SIMPLE 401(k)s haven’t become a popular option. Defined benefit plan A defined benefit plan is a qualified retirement plan that guarantees your employees a specified level of benefits at retirement (for example, an annual benefit equal to 30% of final average pay). As the name suggests, it’s the retirement benefit that’s defined, not the level of contributions to the plan. In 2012, a defined benefit plan can provide an annual benefit of up to $195,000 (or 100% of pay if less). In general, defined benefit plans are too costly and too complex for most small businesses. However, because they can provide the largest benefit of any retirement plan, and therefore allow the largest deductible employer contribution, defined benefit plans can be attractive to businesses that have a small group of highly compensated owners who are seeking to contribute as much money as possible on a tax-deferred basis. Because of their high cost (both current and future), these plans

What do the Beach Boys, Mickey Mouse, and T&S low-lead faucets have in common?

They all got their start in California, and they all swept the nation. Although California led the way with the AB1953 legislation mandating low-lead faucets, it’s only a matter of time until they are required in all states. And T&S is ready — all of our faucets are low-lead compliant and are available across the country. And, as always, T&S faucets are as rugged and reliable as they come, and meet the requirements of the Buy America Act. Contact your sales rep for more information.

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14TSB-437 OHIO PHC CONTRACTOR • Volume 2012, Issue 2 Low Lead PHCC Ad PUBS.indd 11

12/1/10 8:47 AM

are being phased out of many companies. Companies large and small are going towards defined contribution plans. Defined contribution plan A defined contribution plan is a qualified plan that provides an individual account for each participant in the plan. Benefits depend on the amount contributed, income, expenses, gains, losses and other items that may affect a participant’s account. You could have a profit-sharing plan or a 401(k) plan, among others, that is a defined contribution plan. Annual reports are required to be filed for the plans. Combined employer and employee contributions for any employee in 2012 can’t exceed the lesser of $50,000 (plus catch-up contributions of up to $5,500 if your employee is age 50 or older) or 100% of the employee’s compensation. Because there are so many different retirement plan options available and there’s so much information to share, we’ll have to break this up into two issues. Next issue, we’ll talk about Individual Retirement Accounts (IRAs). In the meantime, now is the time to look into retirement plan programs for you and your employees. Remember, retirement planning ranked as the top financial concern Americans are facing and many haven’t even started saving or planning for it. Step back and see the forest (retirement/financial plan) for the trees (current, specific financial issues). You’ll be glad you did.

Disclaimer: Every effort has been made to ensure that the material in this handout is accurate. However, we make no representations or warranties with respect to the accuracy or completeness of the content included. You should consult with a professional to discuss your specific situation. Some material in the handout are provided and copyrighted through Forefield, Inc. and the AICPA. U.S. Treasury Department Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that, unless expressly stated otherwise, any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein. This handout is not intended to be comprehensive in nature and competent professional tax advice should be sought in determining the issues that impact your specific situation.

Michael A. Bohinc is a certified public accountant in Cleveland, OH. He is also a licensed HVAC and plumbing contractor in the State of Ohio. He is an associate member of the PHCC of Ohio and ACCA of Ohio and an instructor for the National PHCC Educational Foundation . He is also a Consult & Coach Partner for the Service Roundtable and an Advisor for the Service Nation. He has 24 years’ experience working on business management issues in the HVAC and plumbing industries. He can be reached at: 440/ 708-2583, e-mail mbohinc@keepingscorecpa.com.

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Volume 2012, Issue 2 • OHIO PHC CONTRACTOR

What Can the Association Do For Me?

“Every man owes a part of his time and money to the business or industry in which he is engaged. No man has a moral right to withhold his support from an organization that is striving to improve conditions within his sphere.” ~ Theodore Roosevelt

s Editor’s note: Roosevelt’s observation is as valid today as it was in his time. Below is another commentary we have seen that we believe is right on target.

ne of the most frequently asked questions with regard to trade association membership is: “What can the association do for me?” And, since association membership usually involves money, it is a perfectly logical question to ask. The answer, quite frankly, however, is “Nothing.” Your association can do things with you, but not for you. The reason is simple and it involves the same principles that apply to a man and his business. A businessman invests money and he also invests his time and energy to make his business succeed. The same holds true for the dues dollar, which represents a similar investment in one’s business. There are certain functions and services of the association which require the physical support and involvement of its members. It needs the collective thinking of all concerned to formulate plans, and it requires the physical effort of its members to put those plans into operation. A survey indicates that 85% of all economic failures were firms or business not connected with a trade association.

OHIO PHC CONTRACTOR • Volume 2012, Issue 2

Also it seems that the businessman who rebels against paying associations dues is always the first to criticize and to say that an association does him no good. However, he is always in front of the line to take the benefits that come his way as a result of the efforts of the association and its dues paying members. Those benefits don’t just happen. They are the result of a lot of hard work and effort by a great number of individuals who devote time and energy to get the job done. Free enterprise in America did not achieve its present position by passive acceptance. Our association owes its position and stability to a long line of doers. What YOU do for it today determines how useful it will be for you tomorrow. No one would want to be in an industry without a trade association. Just as a church sets the moral environment in which to live and raise a family, trade associations set the ethical and economic environment in which to operate a business. When a group of citizens is faced with problems of mutual concern affecting their neighborhoods, they form a civic association. When the workers of America were faced with substandard working conditions, low pay, and abusive treatment by management, they formed trade unions. The problems which face our industry today affect every contractor no matter how large or how small. And, since no one individual could possibly begin to solve any of these problems alone, it remains that each should join a collective effort to protect his business investment. It’s as simple as that. This article first appeared in the 1984 or 1985 Ohio PHC Contractor Magazine.

Volume 2012, Issue 2 • OHIO PHC CONTRACTOR

OHIO PHC CONTRACTOR • Volume 2012, Issue 2

Volume 2012, Issue 2 • OHIO PHC CONTRACTOR

OHIO PHC CONTRACTOR • Volume 2012, Issue 2

Volume 2012, Issue 2 • OHIO PHC CONTRACTOR

OHIO PHC CONTRACTOR • Volume 2012, Issue 2

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Volume 2012, Issue 2 • OHIO PHC CONTRACTOR

OHIO PHC CONTRACTOR • Volume 2012, Issue 2

Top Reasons to Join PHCC ADVOCACY Powerful representation to defend you against excessive regulations in your community

EXPERT ADVISORS Access to PHCC’s legal, financial, legislative, regulatory and technical specialists

NETWORKING Build relationships with fellow professionals, suppliers and customers

MEMBER DISCOUNTS Significant discounts on workers comp, vehicles, license bonds and Speedway fuel

INFORMATION The latest need-to-know industry information

3-in-1 MEMBERSHIP One price gets you Local, State and National level membership

EDUCATION PHCC is the leading provider of technical and business training for contracting business owners, managers, and other personnel

Without PHCC You Stand Alone! Join over 3,000 independent PHC Contractors to put PHCC Power in your Business! Volume 2012, Issue 2 • OHIO PHC CONTRACTOR

PHCC Ohio would like to recognize the following companies celebrating Membership Milestones in 2012. Thank you for your membership and continued support over the years.

Years J. L. Kolp Plumbing, Heating, Cooling Miracle Plumbing, Heating & Cooling

Years Approved Plumbing Beery Plumbing H & S Plumbing Thornton & Son

Years Lewin Plumbing

Years Ken Neyer Plumbing William R. Becker Plumbing Zernechel Plumbing & Heating

Years Grabill Plumbing & Heating Sam’l Beresford Plumbing

Years Swan Plumbing, Heating & Electrical C & D Mechanical Roman Plumbing Zoellner Plumbing Bill Case

Years Conrad’s Precision Plumbing & Heating Dupps Plumbing G & R Plumbing Ray Jacobs Plumbing Kramer Plumbing Whitt, Inc. dba Whitt Plumbing R & T Schneider Plumbing Reilly Plumbing

OHIO PHC CONTRACTOR • Volume 2012, Issue 2

Years Wm. R. Becker Plumbing Kerlin Company Steve Jerome Plumbing Calla Plumbing Carr Electric, Heating & Cooling Ciro’s Sewer Cleaning Rupp Plumbing & Heating Niehaus Plumbing R. L. S. Plumbing DiFranco Plumbing dba Adelmo Electric Von Deylen Plumbing & Heating

Years Plum Perfect Plumbing Jim the Plumber Lott’s Plumbing & Heating B & B Mechanical Services Flow-Rite Plumbing Rambo-Westendorf Plumbing Helmes Plumbing G.W. Gill Plumbing & Heating J.R. Sbrocco Plumbing Bemer Plumbing ARS Plumbing & Rescue Rooter

Let’s Talk

Safety

et PHCC help you develop and implement a quality safety program for your company and your employees. PHCC’s Safety Lessons provide pertinent information and topics for your safety meetings. Members will soon be able to access, browse and download PHCC’s Online Toolbox to support your safety program. Visit www.phccohio.org for more information and to download your Safety Lessons. OSHA On-Site Consultation Program The OSHA On-Site Consultation program is offered at no charge to employers through the Ohio BWC’s Division of Safety & Hygiene. This program is funded mainly by the US Department of Labor through the BWC. The On-Site Consultation is offered to small Ohio employers in high-risk industries and assists them in identifying potential safety hazards and what steps they can take to correct them.

This Program offers: • On-site safety inspections and consultation at no charge • Assistance with safety program execution • Safety and hygiene training • Additional resources both printed and electronic Unlike the federal OSHA program, OSHA On-Site Consultation does not: • Have right of entry to a workplace • Issue citations or fines This service is only initiated by the employer, not OSHA or BWC. Once initiated, the employer and BWC will agree upon a deadline within which they will rectify any safety problems that were discovered during the consultation. For more information, please visit the BWC Division of Safety & Hygiene OSHA On-Site Consultation site at www.ohiobwc. com/employer/programs/safety/SandHOSHAOnsiteDetails.asp

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Experience the Deppmann Diﬀerence Volume 2012, Issue 2 • OHIO PHC CONTRACTOR

What the Supreme Court Health Care Opinion Means for HVACR & Plumbing Contractors

By Charlie McCrudden

oday the Supreme Court upheld most of the Patient Protection and Affordable Care Act, the health care reform law passed by Congress in March of 2010 and is being phased in over time. In the ruling, written by Chief Justice John Roberts, the Court found that the individual mandate may not withstand a challenge under the Commerce Clause or the Necessary and Proper clause, but that it can stand since it is a tax on those who do not comply with the law. The Court did limit Congress’s ability to require states to participate in the provision that expands the Medicaid program. What will this mean for HVACR Contractors? As most of the law has been upheld there will be few changes to the planned phase-in of the law between now and 2018. The law does not require businesses with less than 50 employees to provide health care coverage to its employees. But starting in 2014, a business with more than 50 or more employees that does not provide coverage to its workers (or provides coverage that is unaffordable) will pay a penalty if a single employee is eligible for and receives a tax credit for purchasing health care coverage on one of the Exchanges. A worker is eligible for a tax credit if their income is up to 400% of the poverty line. The employer’s penalty is equal to $2,000 per the number of employees over 30 employees. If an employer with 50 or more employees offers a bare bones plan that covers less than 60% of the costs of typical covered services or where the individuals share is more than 9.5% of their income, the penalty is $3,000 for each employee

OHIO PHC CONTRACTOR • Volume 2012, Issue 2

who receives a tax credit up to $2,000 times the number of employees over 30 employees. In an effort to encourage employers with fewer than 100 employees to provide coverage, the law offers tax credits based on size. As early as 2010, small businesses with less than 25 full time employees and an average annual wage rates of less than $50,000 per employee that pay at least half the cost of their employee’s health care coverage are eligible for tax credits.

What does this mean for individuals? The individual mandate provision still takes effect on January 1, 2014. That provision will require individuals to get health care insurance coverage from their employer or a federal program (like Medicare, Medicaid, or TRICARE), or one of the state health care exchanges would pay a penalty based on income. In 2014 the penalty tax is $95 per adult and $47.50 per child (up to $285 per family) or 1% of the household income whichever is greater. The penalty increases in 2015 and for the years 2016 and beyond. Despite being upheld by the Supreme Court, the issue of Patient Protection and Affordable Care Act will remain a political issue going forward. Republicans have vowed to make repealing the law a primary goal if they can take the Senate and White House in the November elections. Charlie McCrudden is ACCA Vice President for Government Relations.

BWC approves Base Rates for the July 1, 2012 Rate Year

he Bureau of Workersâ&#x20AC;&#x2122; Compensation (BWC) recently approved the Base Rates for the July 1, 2012 Rate Year. The new rates will be effective for payroll from July 1, 2012 through June 30, 2013 and will impact premiums due to the BWC in February and August of 2013. On average, the BWC Base Rates will have a 0% increase for the July 1, 2012 Rate Year. However, the Base Rates for individual Manual Numbers have been adjusted, with some decreasing and some increasing. Employers that report to the Plumbing Manual Classification (Manual Number 5183) and the Heating and Air Conditioning Classification (Manual Number 5537) will experience a change in their Base Rate.

Plumbing Manual Classification Manual Number 5183 will decrease 6% from $3.52 for every one hundred dollars of payroll to $3.31 for every one hundred dollars of payroll. Heating and Air Conditioning Manual Classification Manual Number 5537 will increase 5% from $4.00 for every one hundred dollars of payroll to $4.19 for every one hundred dollars of payroll. There are a number of discount programs that are available to assist in lowering the actual premium that your organization pays to the BWC. Please contact Kelly Denk at Frank Gates with any questions relating to the rates, or ways to decrease your premium.

Volume 2012, Issue 2 â&#x20AC;˘ OHIO PHC CONTRACTOR

Departments

PHCC of Ohio 2012 - 2013 Officers & Board

PHCC of Ohio

20040 Carolyn Ave Rocky River, OH 44116 800-686-PHCC [7422] Fax: 216-393-0095 www.phccohio.org www.facebook.com/phccohio

Officers President Greg Eisenhart Sanford Plumbing & Supply 330-386-5191 Fax: 330-386-5470 1725 Pennsylvania Ave East Liverpool, OH 43920 plumber@spii.net

President-Elect Rob Fetz Fetz Plumbing-Heating & A/C 937-652-1136 Fax: 937-652-0015 PO Box 516 Urbana, OH 43078 rftz@iapdatacom.net Vice-President Jim Haberek Haberek Plumbing & Heating 216-433-7774 Fax: 216-433-7776 5330 Smith Road Brookpark, OH 44142 office@haberek.com Treasurer Bruce Stebbins Stebbins Plumbing & Heating 937-859-4534 Fax: 937-859-5441 621 E Dixie Drive West Carrollton, OH 45449 stebplumb@gmail.com

Staff

Rocco Fana, Jr. Executive Director

Debbie Tittl Executive Assistant

Mary Williams Administrative Assistant

OHIO PHC CONTRACTOR â&#x20AC;˘ Volume 2012, Issue 2

Past Presidents Advisory Committee Dave Keister Keister Plumbing & Heating 330-895-4256 Fax: 330-895-4791 1215 Aurora Road Minerva, OH 44657 dkeister@plbgweb.net

Greg Faustina The Plumbing Source 216-365-0600 Fax: 216-365-0166 5042 Corbin Bedford Heights, OH 44128 greg@plumbingsource.net

Dennis Schlekie Approved Plumbing 440-526-2905 Fax: 440-526-7698 770 Ken Mar Industrial Pkwy Broadview Heights, OH 44147 Dennis@approvedplumbing.com

Trustees Zone 2 Ronald Schmitt Joe Schmitt & Sons Plumbing & Heating 937-836-3086 Fax: 937-832-1827 500 Atla Ave; PO Box 237 Englewood, OH 45322 schmitt.ronald@gmail.com

Zone 6 Paul Episcopo VIP Plumbing, Inc. 216-581-5731 Fax: 216-581-5732 14600 S Industrial Ave, Unit H Maple Heights, OH 44137 paul@viplumbing.com

Zone 3 Brian Nieman Nieman Plumbing, Inc. 513-851-5588 Fax: 513-851-9104 2030 Stapleton Ct Cincinnati, OH 45240 brian@niemanplumbing.com

Zone 7 Tom Shuman Shuman, Inc. 330-688-2322 Fax: 330-688-3151 28 Castle Dr Munroe Falls, OH 44262 tjshuman7@gmail.com

Zone 5 Rodger Sweitzer Baumann Plumbing 614-888-2411 Fax: 614-262-4958 22 Westerville Square Westerville, OH 43081 baumannplumbing@ ameritech.net

Zone 9 Rick Seifert D & A Plumbing & Heating 330-449-8733 Fax: 330-499-8747 11197 Cleveland Ave NW Uniontown, OH 44685 ricks@crowngroupohio.com

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Plumbing-Heating-Cooling Contractors of Ohio 20040 Carolyn Avenue Rocky River, OH 44116

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