Update on Overtime Rule

Yesterday, Judge Jordan of the Eastern District of Texas set a hearing on summary judgment in the business community challenge to DOL’s overtime final rule for Friday, Nov 8, at 11am (eastern). The judge could rule on the case from the bench or quickly after the hearing.

As a reminder, the initial change to the federal overtime rule went into effect on July 1^st. Salaried workers making less than $43,888 per year may now qualify for overtime pay. The threshold is set to increase again to $58,656 on January 1, 2025. Previously, only salaried workers making less than $35,568 annually qualified for overtime pay when they worked more than 40 hours in a week.

The Fair Labor Standards Act (“FLSA”) regulates when employees must be paid minimum wage and overtime. Under the FLSA, overtime pay, which is due to all employees who do not fall within a specified exemption, is one and one-half times an employee’s regular pay rate for every hour that is worked beyond 40 hours in a work week. While hourly workers are generally entitled to overtime pay, salaried workers are not if they earn above a certain pay level and supervise other workers. That pay level is what the Department of Labor increased.

Priorities Being Set as Tax Teams Focus on 2025 Tax Bill

It’s looking more and more like a salvage operation on Capitol Hill as the Tax Cuts and Jobs Act provisions are being examined, culled, embellished, and reconstituted before it expires at the end of next year. But no matter, good, bad, or ugly, there will be a new tax bill in 2025 and priorities for energy marketer family businesses are taking shape. The House Ways and Means Committee is busy managing its ten Tax Teams to improve or save what it can from the 2017 Tax Cuts and Jobs Act (TCJA). A few items on the salvage list include avoiding increased income taxes, stopping a decrease in estate tax lifetime exemptions, no increases in capital gains taxes, and restoring research and development expensing, to name a few. The House Ways and Means Committee Chairman Rep. Jason Smith (R-MO) and Tax Subcommittee Chairman Rep. Mike Kelly (R- PA) formed ten Tax Teams earlier this year to study key provisions in the Trump-era TCJA. The Tax Teams are set up as follows: American Manufacturing, Working Families, American Workforce, Main Street, New Economy, Rural America, Community Development, Supply Chains, U.S. Innovation, and Global Competitiveness. The stated goal of these teams is to: “help families, workers, and small businesses,” according to Smith.

What Are Key Tax Priorities?

But what are the key family business-oriented tax policies critical for our legislators to review? Our tax team experts on Capitol Hill have uncovered seven “Tax Policy Legislative Priorities” for the 119th Congress that will affect America’s energy marketers. Here they are:

1. Preserve the current tax rates and brackets enacted under the Tax Cuts and Jobs Act. Family-owned businesses rely on the consistency of tax rates more than corporate businesses due to the increased complexity in succession planning. In addition, family businesses are uniquely suited to reinvest more in their business, their employees, and their communities, according to the results of our 2024 Annual Business Survey. In our survey, 52% of respondents indicated that if they paid less in taxes, they would invest more in the business, and 30% indicated they would raise their employees’ salaries.
2. Reduce the estate tax rate. Estate taxes severely hamper the ability for family business owners to pass the business and related assets (which are typically illiquid) to the next generation, making it more difficult for the business to continue growing, providing important jobs, and contributing to local communities. Of family businesses surveyed, 70% have generational employees and 81% have been in operation for 20 years or more. Eliminating the estate tax consistently ranks among the top three priorities.
3. Make permanent the Section 199A deduction for passthrough businesses. The Tax Cuts and Jobs Act included a new deduction to help ensure business owners pay tax rates more comparable to the corporate tax rate reduced by the TCJA. If allowed to expire, the section 199A deduction will be uniquely and severely disadvantage passthrough businesses. Of family businesses surveyed in our annual study, 78% operate as passthrough businesses, whether a partnership, LLC, S corporation, or other non-corporate structure.
4. Restore 100% bonus depreciation. Next to their commitment to their employees, family-owned businesses rely on capital investments to compete, grow, and thrive. Bonus depreciation is a critical tool for family businesses to support their capital investments and finance facilities and equipment critical to their ability to grow, expand employment, and contribute to the communities in which they operate.
5. Preserve the capital-gains tax rate. Like the estate tax, the capital-gain taxes present an obstacle for capital formation and investments necessary for family businesses to expand, modernize, and succeed in an increasingly competitive market, with 13% of family businesses ranking it in their top three tax policies of concern – a 4% increase over the 2023 Survey.
6. Prevent the creation of a wealth tax. Wealth taxes – taxes on existing assets and unrealized gains – will be particularly harmful to family business owners who often disproportionately invest in the business in the hopes of passing it on to the future generations. In the most recent Family Business Survey, respondents identified preventing a “Wealth Tax” as one of their top five economic priorities – a concern that was nonexistent in prior years.

New EMA Member Service Benefit: You Need Drivers. EMA Can Help

The Energy Marketers of America has partnered with the National Propane Gas Association (NPGA) to provide a new member benefit to help your company get drivers on the road. The ACE (Administrative Compliance Experts) Services Program guides individuals through the Entry Level Driver Training (ELDT) requirements set by the Federal Motor Carrier Safety Administration (FMCSA).

What does ACE do?

Serving as the FMCSA Registered Training Provider, ACE handles:

• FMCSA paperwork and filings
• FMCS audits
• Training materials and training equipment guidance to meet FMCSA requirements

ACE will save you thousands of dollars – up to $3,000 per driver – AND help you cut through all the red tape.

To begin enrollment, please click HERE and when prompted, enter the Energy Marketers of America as your ACE Network Partner.

Learn more about how ACE works, how much it costs, and how you can enroll your company by viewing EMA’s webinar from October 24.

Please contact ACE at 202-466-7203 or eldt@npga.org if you have any questions.

“Our company has had many drivers go through the program… ACE keeps all of the records for you and allows you to keep it in house. Simple, easy, cost effective. An absolute unbelievable program. To me, signing up for ELDT and utilizing the ACE program is a no-brainer” – Damon Gibson, CHS

On-Demand Webinar: Beneficial Ownership Reporting for Energy Marketers

The January 1, 2025 deadline for BOI report filings is rapidly approaching. To assist you in staying compliant and avoiding penalties, the Energy Marketers of America recently hosted a highly informative webinar, “The BOI Reporting Deadline is Approaching: What Energy Marketers Need to Know to Stay Compliant,” in collaboration with Wolters Kluwer on September 10th. Thanks to all who joined us live!

In this webinar, we covered the types of entities affected by the BOI requirements, emphasized the urgency of meeting the federal deadline, and provided an overview of the BizFilings BOI reporting solution. We also included a step-by-step demonstration of the tool to guide you in filing your BOI reports on time and maintaining compliance with this federal regulation.

For those who were unable to attend, we’re pleased to provide you with the recording. Access these resources at your convenience to stay informed and prepared.

CLICK HERE to access the on-demand webinar.

Next Steps:

• Need to figure out if your business is impacted by BOI? Take the quiz.
• Ready to file? Click here to file now and use EMA12 for 12% off your filing.

Avoid penalties and fines - get organized, save time, and file your BOI report today.

October 2024 Contributors to EMA MDF

Energy Marketers of America’s Marketer Defense Fund (MDF) wants to thank the following individuals for their MDF contributions during the October 1-31 timeframe:

California:
Mike Downs, Downs Energy

Connecticut:
David Daniels, Daniels Oil Company, Inc.

Georgia:
Don Everett Jr., Ware Oil & Supply, Inc.

Iowa:
Dave Reif, Reif Oil Company

Louisiana:
Frank Marcello, Marcello Distributors

Michigan:
Robert Hohn, Paxson Oil Company

Mississippi:
Philip Chamblee, MPMCSA

NECSEMA:
Tom Frawley, Summit Distributing LLC

North Carolina:
RAI Trade Marketing Company

North Dakota:
Travis Halvorson, Farmers Union Oil
Mike Rud, NDPMA

Oregon:
Alex Hattenhauer, Hattenhauer Distributing Company

Tennessee:
Seth Blanks, Highland Corporation

West Virginia:
Greg Darby, Little General Store, Inc.

Corporate donations are acceptable. MDF funds have been used to create a COVID-19 Situational Update & Resources webpage, to hire experts to cover important regulatory agencies and disaster relief dedicated to strengthening our lobbying efforts on Capitol Hill. Click here to donate to the EMA MDF.

Weekend Reads

See how the Inflation Reduction Act is affecting your community | The Washington Post

FDA Warns Firms Illegally Selling E-Cigarettes Resembling Products With Smart Technology, Including Phones and Gaming Devices

U.S. energy production has increased faster than energy consumption over the past 50 years | U.S. Energy Information Administration (eia)

US West Coast refiners boost imports of light Canadian crude | Reuters

1 big thing: Climate law in the crosshairs | AXIOS

Oil prices rise 1% after boost from US fuel demand

Federated Insurance Risk Management Academy Webinar
Cannabis and the Workplace: Thursday, November 21, 2024, 1:00 p.m. Central Time

This webinar will provide attendees with practical knowledge about managing employee behavior and performance relating to the use of marijuana or cannabis products in and out of the workplace. Baseline issues such as what to do about impairment at work, how to navigate both legal and illegal use by employees, and the status of drug testing will be explained. Employees' expectations around these issues have transformed, and employers face complex and often conflicting rules and laws when grappling with these issues, and the presenter can help provide practical solutions for dealing with them. Real life examples will be provided and there will be a live Q&A session at the end.

Advanced registration for this 30-minute webinar.

For additional information or to discuss this in further detail, please feel free to contact your Federated regional representative or EMA’s National Account Executive Patrick Cunningham at 507.455.8935. Federated is a Partner in EMA’s Board of Directors Council.