SideBar Newsletter from Shumaker Williams, P.C.

By Ryan P. Siney

By Steven J. Koehler

Pennsylvania's new Home Improvement Consumer Protection Act ("HICPA") took effect on July 1, 2009. This law imposes new registration and contracting requirements on contractors (including subcontractors and independent contractors) who provide home improvement services, as well as retailers who sell materials for home improvements. HICPA applies to any person or business which repairs, replaces, remodels, renovates, alters or installs materials in an existing home, including items such as driveways, swimming pools, porches, garages, roofs, walls, siding, solar energy systems, security systems, flooring, patios, fences, gazebos, sheds, landscaping, painting, air conditioning, windows, awnings and doors. HICPA also requires that contractors and retailers provide specific detailed information to the consumer in a written contract.

HICPA's registration requirement applies to any person or business which provided more than $5,000.00 in home improvements in Pennsylvania in 2008. The registration process involves providing detailed information about the contractor to the Bureau of Consumer Protection. The contractor must also provide proof of liability insurance and pay a $50.00 registration fee. The contractor will receive a registration number which must be included in advertisements, estimates and contracts provided after July 1, 2009.

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Boards of Directors and Risk Oversight

By Jane G. Davis

In the wake of the various crises in the financial industry and the general economic downturn, Boards of Directors need to understand the risks that their own companies may face and exercise appropriate oversight to ensure that those risks are properly managed. The amount of risk that was taken on, often unknowingly, by financial services companies has put a spotlight on the role of the Board in managing risk and will undoubtedly result in greater scrutiny by regulators and courts. A question being posed from all sides is "Where were the Boards?"

Directors first need to identify the risks that their industry and their particular business face. All companies face some general risks, such as the potential for fraudulent conduct by employees and business disruption resulting from natural disasters. Specific industries also face particular risks, such as product liability for manufacturing companies, liquidity issues for those in the financial services arena, and Foreign Corrupt Practices Act exposure for those conducting business abroad. Boards and management should work together to identify areas of risk to the organization. For Boards who feel ill-equipped to undertake this analysis, there are numerous consultants specializing in this service. Because the business environment does not remain static, Boards should periodically revisit the company's risk profile to determine if there have been any changes.

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Economic Downturn Brings Unexpected Immigration Benefits

By Craig T. Trebilcock

The negative impact of the economic downturn has been felt by all businesses. One surprise from the severe recession has been an unexpected business immigration benefit for employers who rely on foreign national workers to supplement their workforce.

The biggest surprise of 2009 has been that the number of available white-collar H-1B work visas has not been exhausted, as in prior years. Engineers, physicians, IT professionals, and others who have a bachelor's degree may still apply for three year H-1B visas. Hiring freezes and layoffs chilled the demand for H-1B visas in April, as businesses were wary about adding additional staff. Approximately 20,000 H-1B visas remain as of this writing for eligible companies and applicants. At the current pace of applications, visas will likely remain available through the Fall season as the economy begins to recover.

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New Rules Concerning the Family Medical
Leave Act Now in Effect

By: Michael E. Rowan

The Family Medical Leave Act ("FMLA") generally entitles employees to take up to 12 weeks unpaid, job-protected leave in a 12 month period for the birth or adoption of a child, a serious medical condition or to care for a close family member with a serious medical condition. Throughout the leave, the employer must continue to provide group benefits to the employee, and at the end of the leave, must restore the employee to his or her former position or to a position with equivalent pay, benefits, and terms and conditions.

For the first time since the FMLA was enacted in 1993, the Department of Labor has extensively revised the regulations relating to the FMLA. These extensive revisions will affect every employer subject to the law. The revisions went into effect on January 16, 2009. Among the more significant changes to the regulations are the following:

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