SAGE ADVICE FROM A DEAR GRANDFATHER: DEMOCRACY ISN’T SUPPOSED TO BE EASY.
August always makes me feel sentimental. Personally, it is because I lose the freedom of spending extra time with my kids when they resume school and we hold “The Hope” Weekend for Tyler’s Hope, which serves as a reminder that we’ve yet to find a cure for dystonia. On August 4, I always remember my grandfather, Earl Scarborough, on his birthday. He passed in 2011, and I now occupy his office at our agency and have a picture of him above my desk that I see every day. Professionally, I celebrate my anniversary of joining Scarborough Insurance on August 5, 1996. I’ll never forget my first day at work. I went to lunch that day with my grandfather to celebrate his birthday, and he gave me some professional advice that I never forgot. He told me that when working with prospective clients, you always need the three P’s: Product, Price and Politics. With regard to the third “P,” he meant it in context of making sure that I had the confidence of the decision-maker. However, given that this is a major election year, this article will focus on the greater impact of politics on all of our businesses and lives.
Elections have consequences, and in the coming months, we’ll all hopefully participate in the selection of many of our political leaders. I’d recommend to anyone, business owner or employee, to take the time to research the candidates and consider how their election might impact you personally. Don’t just accept “what” the candidates say they would do, but make sure they can explain “how.” The recent examples of state and federal political actions that impacted businesses are many, but I’ll illustrate a few:
- The U.S. Department of Labor recently implemented two changes that will affect most businesses. The first has to do with raising the minimum amount an exempt (salaried) employee must be paid in order to allow an employer not to track and pay overtime. If you’re not familiar with this, the regulation takes effect on December 1, 2016, and the new threshold is $47,476 per year. There are too many nuances to the rule to fully explain in this space, but every business owner needs to do his or her homework and make the necessary changes to remain compliant. The other DOL ruling impacts any business owner who serves as a fiduciary in an employer-sponsored retirement plan. Again, if you’re not familiar with the implications, do your research or face the consequences.
- The Affordable Care Act is perhaps the most famous recent example of legislation that impacted literally every American. I’ve written several articles on the subject for this magazine, so I won’t dwell on the pros and cons of the ACA again. But, if you have any doubt that your vote matters, look no further than this example.
- In April 2016, a 2003 Florida statute limiting the amount paid to attorneys in workers’ compensation cases was overturned by the Florida Supreme Court. The 2003 statute was largely responsible for driving workers comp rates down by over 60 percent since its passage. Almost immediately, the National Council on Compensation Insurance filed for a 17.1 percent increase in rates to take effect August 1,2016. I would predict that further rate hikes are on the horizon if the Florida Legislature does not act to pass replacement legislation. Until it does, every business will pay more for workers’ compensation coverage.
Of course, local elections and ballot initiatives require the same level of voter scrutiny as state and federal elections. On a monthly basis, there are examples of local governments impacting the ability to conduct business, fund parks and recreation, adequately educate our children and pave our roads. Based on voter turnouts for local elections when we’re not also voting for federal or statewide candidates, not enough people understand the significance of spending the time to adequately vet the options for those local offices.
Trust me when I tell you that I “get it” when people say that politics is boring or that they feel their votes don’t really matter. We all have jobs, lives, and families that demand our time, and researching a local school board candidate can easily move to the back burner. But friends, democracy isn’t supposed to be easy. Those using this excuse to avoid making the effort are ensuring they get the government they deserve and doing a great disservice to future generations.
So please, consider heeding the wise advice of my grandfather. Don’t forget that third “P,” do your homework and make informed choices this fall. And one more thing: Happy Birthday, Papa Earl — we love you.
BRIAN SCARBOROUGH is a Principal at Scarborough Insurance, an independent agency that sells all lines of insurance and has been serving the community since 1961. Visit scarins.com for more information.