In my thinking, that “something else” always was running for the U.S. Senate, not governor of Tennessee. It generally is a more natural move to go from a U.S. Representative to the Senate, although in 1994, Don Sundquist made the move that Wamp wants to do, winning the gubernatorial election and defeating current Tennessee Governor Phil Bredesen in the process.

But, here we are just weeks away from the primaries, and next month, voters will decide if the Republican nominee will be Wamp or Bill Haslam, mayor of Knoxville. My sense is that the real election is the Republican primary, and whoever wins is going to be the next governor.

Obviously, Haslam will outspend Zach, although I think that Wamp has done an impressive job of raising money, and certainly his campaign is not broke. Nonetheless, it is hard to win elections when one’s opponent has deeper pockets, and I think that Zach knew this would be an uphill fight no matter what.

Although the polls have Haslam in a double-digit lead, my sense is that Zach has gained in recent weeks and it remains to be seen whether or not he can pass Haslam, who in my view is a very strong candidate. Should Wamp win the nomination and the election, what kind of leadership do I think he would provide? I will try to answer that question in this column.

Wamp’s experience for the past 16 years has been as a legislator and a dealmaker. Obviously, there is nothing wrong with either, and while I have not agreed with all of Zach’s votes (his support for the ill-conceived TARP comes to mind, although I suspect he would like to have back that vote), I do think that his overall voting record has been positive and certainly better than what we have seen from the current Congressional leadership.

However, as governor, Zach cannot legislate; he must be an administrator, and an administrator that is effective enough not only to deal with executive branch agencies, but also to work with the legislature. I’m not sure which job is more difficult, to be honest, but having spent almost all of his political life as an elected representative, I am sure that Zach has insights into dealing with the members of the Tennessee General Assembly.

There is one thing that Wamp cannot do: engage in deficit spending. Unlike the federal government, which has been running deficits for years, states and localities must balance their budgets or go broke. They cannot borrow their way out of such a situation, and they certainly cannot print money.

Because the policies of the Obama administration are going to guarantee that the U.S. economy will be in the tank for a long time, whoever becomes the next governor of Tennessee is going to be dealing with budget crises, and that also means that the main newspapers and a lot of other “progressives” are going to demand a state income tax. That is guaranteed.

Interestingly, many of the states with the worst budget problems also have high income tax rates, which serve to encourage the legislatures (and governors) to spend beyond their means. So, while I know that there will be the pressure to enact an income tax, nonetheless Tennesseeans will be better off without one, and I hope that either Zach or Haslam remembers that simple truth.

So, what kind of governor will Zach be if he wins the election? I believe that he has too much energy and too much political experience to be a failure. In fact, I believe that Wamp, if elected, will be a highly effective governor and in a few years, people will be throwing his name around for the Republican nomination for president.

Since I have not talked to Zach in many years, I have no idea if that is his goal: to be president of the United States. If he wishes to go that route, certainly he will have a better shot as governor of Tennessee than as a representative or even a senator. But if he wants to be president, he first needs to win the primary, which means he has to come from behind to do it.

I don’t have a crystal ball, and while I follow the news in Tennessee more than I follow the news in Maryland, nonetheless I cannot make a prediction. Zach is an excellent campaigner, a good stump speaker, and is very charismatic, especially in person. Whether or not that makes up for the financial advantages that Haslam enjoys, plus Haslam’s connections across the state, is something that the voters will decide.

“Interest rates have been this low or lower than today only 5 percent of the time in the past 20 years,” TVA Interim Chief Financial Officer John Hoskins said. “The reopening was a great opportunity to lock in lower interest costs on a long-term basis.”

Bank of America, Merrill Lynch and Morgan Stanley are lead managers for the financing. TVA will use proceeds from the sale to refinance existing debt and for other power system needs.

Investors that purchased the bonds include insurance companies, money managers, pension funds and other institutions that typically need highly rated investments.

“The order book for the transaction was high quality and the demand was strong,” Hoskins said. “The structure of the financing benefited TVA and also met the needs of our investors.”

The 2009 30-year bonds have top ratings of Aaa by Moody’s Investors Service and AAA by Standard and Poor’s and Fitch Ratings. The bonds mature on Sept. 15, 2039, and are not subject to redemption prior to that date. Interest will be paid semi-annually each March 15 and Sept. 15.

The bonds are listed on the New York Stock Exchange and are issued, maintained and transferred through the book-entry system of the Federal Reserve Banks. Transactions may be cleared and settled by international participants through Clearstream and Euroclear. The bonds can be identified by the CUSIP number 880591EH1.

In another profile this month, I look at Bill Haslam, mayor of Knoxville and someone with Orange Blood, which matches my blood type as well. Thus, when I think of Bill, I think of UT football, basketball and, of course, the Lady Vols. But there is more to Tennessee than East Tennessee (or, at least I think that might be the case).

Yes, yes, I know he went to Emory University in Atlanta, but nonetheless I don’t think he cheers for the Gators or the Crimson Tide, and his family is one of the most important UT boosters. (Now, I like boosters, as when I was at UT on the track team. We had a nice, big budget and had a nationally-oriented program. Boosters played a role in that situation, so don’t diss UT boosters in my presence.)

Of course, Haslam is not running for the office of Top UT Booster, nor is he about to be president of the UT System, a job that seems to have had its problems in recent years. Instead, he is running for governor, and he is running on his record as the mayor of Knoxville for the past seven years. In fact, as I see it, the Republican gubernatorial primary this year is reminiscent of the 1994 general election in which Congressman Don Sundquist was running against Nashville Mayor Phil Bredesen.

Obviously, there are differences. For one, Bredesen and Sundquist were in opposite parties, while Haslam and Zach Wamp are both Republicans. However, we have a battle between an executive and a legislator, and the issues surrounding them really are thematic in politics and deserve a harder look.

Unfortunately, from what I can tell, Haslam supporters in and out of the media have decided to resort to the Marilyn Lloyd tactics of nearly two decades ago when she narrowly defeated Zach in the 1992 3rd District Congressional election. It was in that campaign that Lloyd’s camp showed the infamous “mug shot” of Wamp, taken when he was arrested many years before at an altercation. The charges were dropped. It was actually illegal to use that picture, but this is Congress and so Lloyd broke a law in order to be elected so she could help make more laws. Yeah, go figure.

So, what has appeared at various newspaper offices this year? Oh, the mug shot. Forget the fact that it was taken more two decades ago and forget the fact that Wamp has put together a good record as a member of Congress. And forget the fact that he has not engaged in egregious conduct while in Washington and has forged a good personal reputation.

No, Tennesseans are supposed to vote for Haslam because cops took a mug shot of Zach Wamp during the 1980s.

However, I know that Haslam wants to win the primary, and it is all the rage to demonize one’s opponent. But I also want to know what Haslam will do if elected, not just what kinds of pictures his supporters in and out of the media stoop to distribute. So, I have looked at Haslam’s campaign Web site to see what I could glean from the positive face he puts on for voters.

In looking over his issues page, I do find myself more hopeful than what I have seen regarding the negative side of his campaign. For example, he is much more open to home schooling and educational alternatives than most Democrats are going to be, as they are tied to the teachers’ unions and other groups that continue to march their bands into the wall and wonder why they aren’t going anywhere.

Furthermore, I appreciate his business experience, as the guy actually has made a payroll and knows the difference between a profit and a loss. Furthermore, Knoxville has the reputation of being a well-run city, and I always like going back there for my track team reunions and the like. That he says he does not support an income tax is a good thing, for if Tennessee ever implements an income tax, we can bet that sooner or later the sales taxes (after being cut initially) will go up again.

Now, I am not much of a “good government” type, as I think that “good” and “government” are oxymorons. Nonetheless, I prefer a governor who actually is thinking “economy,” as opposed to the wild spendthrifts in California and my residential state of Maryland. One can bet that if he is governor, Bill Haslam will not run Tennessee into the ground financially.

On health care, it somewhat is a wash, although I do appreciate his stand on malpractice reform, and I think he makes more sense than do most people in government when it comes to government-funded health care. (He could be Mitt Romney of Romneycare fame, who created a state version of Obamacare, both of which are disasters.) I also appreciate his stand on opposing unfunded mandates. (Are there any other kinds coming from Washington?)

As for crime, my first reaction to yet another candidate who is “tough on crime” is: please, no.

The goal of a governor should not be to incarcerate as many people as possible, and the way to do that is to put the emphasis on dealing with violent crime, as opposed to spending millions to arrest people for engaging in acts of mutual consent. (I really wish that at least one candidate would run on a “crime” platform that would emphasize the demilitarization of local and state police forces, as opposed to turning them into paramilitary forces, which has been the case.)

So, my assessment of Bill Haslam is mixed in that there are things about him that I like and things that I wish were different. I wish that he would take a higher road in his campaign, as I have the same attitude toward a candidate using Zach’s “mug shot” that I had toward Duke University students who insisted on waving Wal-Mart bags and chanting “Wal-Mart, Wal-Mart” at a member of the UT Lady Vols basketball team a couple years ago. (She had been caught shoplifting on a dare when she was in high school.)

Nonetheless, would he make a good governor for Tennessee? I hope so, for we are in for some rough years ahead, and I want to see good leadership if he is elected in November. I may not live in Tennessee any longer, but it still is my home.

Dr. William L. Anderson is an assistant professor of economics.  A native of Chattanooga, he received his bachelor’s degree in communications from the University of Tennessee, his master’s degree in economics from Clemson University and his Ph.D. in economics from Auburn University.
An accomplished writer, Anderson has written for national publications such as Reason Magazine.  He has served as a reporter and editorial writer on the staff of ETBJ for over 18 years.

No red flags

Not having met Mr. Roberts, I have to go with what I see in the news and also on his campaign Web site, and there is a good bit there that I like. Furthermore, there are not a lot of the red flags that I often see with conservative Republicans. (For example, there is no “tough on crime” portion in which he promises to continue the drift toward federalizing literally every violation of state law, something that I have seen too many times with both Republicans and Democrats.)

Before going into details about his stance on the issues, let us first talk some politics. Mr. Roberts is running for a seat that has been held by Democrats as long as I have been alive, and the only truly close election was in 1994, when Mr. Gordon won by one percent. That is significant, as 1994 was a very exceptional year for Republicans, the year that Zach Wamp first won in the Third District.

It is hard to know what will happen this year. While odds obviously favor the Democratic candidate, continued unhappiness with President Obama is not going to make it easy for a Democrat in Middle Tennessee — or elsewhere in Tennessee —save Nashville and Memphis, which are the Ultimate Democratic Safe Seats.

Historically, voting for Democrats in Roberts’ district has been part of the “yellow dog” tradition, and I am not sure that is going to continue indefinitely. Thus, if there is a year in which a Republican could take this seat, it is 2010. The question, then, is whether or not Mr. Roberts can be successful.

As readers know, I analyze candidates from the point of view of libertarianism, although there is a wide range even there. For example, I could be labeled a “Ron Paul Republican,” which is someone who believes that we need limited government (VERY limited), and the USA should stay out of foreign wars unless we are directly attacked. Neither Democrats nor most Republicans like my points of view, as either I am seen as “favoring the rich,” “favoring corporations against the people,” or “not wanting the United States to be strong abroad.” While these straw phrases don’t accurately describe my political views, nonetheless I understand how my viewpoints are going to be interpreted.

On the issues

That being said, let me analyze Mr. Roberts’ campaign. Professionally, he is a Certified Public Accountant, which I like, as he actually understands things like time value of money and the issues of good and bad assets. My sense is that he sees through the outright criminality of the U.S. Government’s “budget” practices and I surmise that in private conversation, he might wonder where the government gets the moral authority to accuse others of financial fraud.

There is something else I like, and that is his admission of nearly having a major business failure, but being talked out of considering bankruptcy by an elder in his church. (Yes, THAT is something I can appreciate — a church elder that is willing to give tough advice and show tough love.) Why is that important? Simple; it demonstrates character.

A person who is willing to suck it up, delay gratification, and pay off his debts is someone who understands what it means to be someone of his word. There is far too much glibness in public life today. How many members of Congress have actually made a payroll at some time in their lives? I don’t mean a payroll in which the funding comes from the hide of taxpayers.

I don’t know Kerry Roberts, but I guarantee you I can respect a man who has gone through something like a near bankruptcy, who has stared down the real possibility of a humiliating business failure — and come out on the other side. Most members of Congress have absolute contempt for the people who have sent them there, and the people who must produce extra to carry the weight of an Imperial Congress along with an Imperial Presidency. My sense is that if he is elected, Mr. Roberts will show respect for people in his district that is borne from personal experience.

As for the issues, I noted earlier that I don’t see the red flags. Now, he is fairly general in pushing a platform, but that is what one should expect from a candidate for Congress. Furthermore, he is one of the few people who actually understands the specific costs that new congressional mandates place upon businesses — large and small — and he understands the deadweight effect that these laws produce. I guarantee readers of this column that Mr. Roberts’ Democratic opponent will claim the government is not creating enough new burdens.

“First, do no harm”

Primum non nocere, which translated into English means, “First, do no harm,” is a standard phrase in medical ethics. (It often is incorrectly associated with the Hippocratic Oath, which does urge doctors to “abstain” from doing harm.) I believe that in taking the oath of office, each member of Congress should include Primum non nocere along with pledging fealty to the U.S. Constitution.

Certainly, there is no worse enemy of the Constitution than the U.S. Government, and that is because too many members of Congress have caused immeasurable harm.

My sense is that if Mr. Roberts is nominated and wins the general election in November, he will do less harm than his opponents. This is not a backdoor endorsement (I do not do endorsements), but rather a simple observation.

Instead of dealing with the high jinks of big Wall Street banks, the bill is going to take over Main Street lending and on top of it create a new czar to make decisions about millions of Main Street transactions across America.  It looks like Washington is about to start regulating your daughter’s dentist bill, the plumber, and the storeowners up and down Main Street who give you flexible credit.  That’s going to make credit harder to get because the dentist or the plumber or the storeowner is going to say, “I’m not going to fool with it.  I don’t want to be regulated by some Washington bureau, so if you want to buy my goods, go to the bank and get some money or get another credit card.

That’s going to slow down the economy.  That’s going to make jobs harder to create because it’s going to make credit harder to obtain and harder to offer. If our real intention in Congress on both sides of the aisle was not to interfere with Main Street lending, then we should have actually done that.  Republicans offered an amendment that would have done that, but it was defeated by the Democratic majority.

And we don’t need another czar.  But suddenly, we have this new Washington agency not only possibly regulating Main Street lending, but with an unaccountable person running it who writes the rules and regulations.

On top of all this, the United States’ total debt is about to reach $13 trillion. That means we’re racing past a yellow flag to a large red flag that’s waving in the wind and saying, “Stop the train before we run off the fiscal cliff.”

The Democratic Congress seems to be totally unaware of this big red flag and this fiscal cliff toward which we’re headed.  It continues to take steps to pass the president’s budget, which will double our debt in five years and triple it in 10.

The elections this May are one more reminder that the November election will be primarily about too much spending, too much debt, too many taxes and electing Republican senators to put a check and a balance on a runaway Washington government.

Sen. Lamar Alexander, (R-Tenn.), can be reached in his Washington, D.C. office at (202)224-4944.

Children who are physically well do much better in schools and avoid the chronic health consequences of a sedentary lifestyle. We are often over-medicating many younger children for illnesses and depression when research and common sense both clearly demonstrate that sweat is the most effective anti-depressant ever invented.

Physical education has been squeezed out of our schools, and it needs to be welcomed back in with open arms. Comprehensive physical education can give every child — regardless of background — an opportunity to learn healthy habits and get moving. The human body was made to move. Research shows that children who get a good healthy dose of cardiovascular exercise have better brain functions, test scores and sleep patterns and a better quality of life.

By the fourth grade, every child should know there are adverse consequences to a sedentary lifestyle and poor nutrition. God determines only part of your size, and the rest comes from living a healthy lifestyle. Scientific evidence demonstrates that both lifestyle and genetics can cause obesity, but new data suggests that diet and exercise can counteract the inherited risk.

About eight years ago, I founded the Congressional Fitness Caucus, which is a bipartisan group of more than 80 Members of Congress dedicated to increasing awareness about the danger of obesity and promoting the benefits of physical activity to overall health and wellness.

To strengthen physical education in our nation’s schools, I worked with my Fitness Caucus co-chair, Congressman Ron Kind, (D-Wisc.), to author the Fitness Integrated with Teaching (FIT) Kids Act. The bill, which was carefully crafted not to impose any additional financial constraints on schools, recently passed the U.S. House of Representatives and has the support of more than 40 health, education and physical activity organizations.

FIT Kids would help make sure that children are active during the school day and are taught to be personally responsible for their health. The legislation would help provide parents and the public with information about the physical education that students receive so that parents can compare it to recommended national standards. It would also examine the link between children’s health and their academic achievement, and recommend effective and innovative ways to get physical education back into schools to help our next generation lead an active lifestyle.

We have to start addressing this national crisis. There’s no way the federal government can get its arms around these future health care costs unless Americans start living healthier lifestyles today. While obesity leads to a life of chronic illness, we can change the course of our young people if they understand the importance of physical activity, diet, wellness and prevention. The more children we can encourage to have a regular regime of physical activity in their lives and take better care of themselves, the better off we will be as a society.

The obesity rates among children and young adults additionally threaten our future military strength. Just last month the “Too Fat to Fight” report was released by an organization of retired military leaders. Amazingly, it warns that more than nine million young adults, or 27 percent of all Americans ages 17 to 24, are too overweight to join the military. The study notes that up to 40 percent of a child’s daily calorie intake occurs at school.

The importance of getting children active recently has gained a lot of attention, including the launch of the First Lady’s program to end childhood obesity in a single generation. In whatever way we approach this problem, physical activity in children must be a priority. This will be difficult to achieve without integrating it into our schools where children spend a large part of their daily life.

If we are going to get serious about combating childhood obesity, we must involve everyone in this effort — especially our schools. We cannot afford the economic and societal costs of childhood obesity, and strengthening physical education in schools could be a big step in reversing the trend lines and saving lives.

U.S. Rep. Zach Wamp (R-Chattanooga), is serving his 8th Congressional term, and is currently running for governor of Tennessee.  Mr. Wamp can be reached in his Washington, D.C. office at (202)225-2371.

The Tennessee Automotive Manufacturers Association (TAMA) has named their 2010 Board of Directors. The 2010 officers of TAMA are Patrick Higgins, president; Keith Updike, vice president; and Kevin Hunsinger, treasurer.

Higgins is managing director for Marsh. He began his career with Marsh in 1976 and is a licensed insurance agent in all 50 states. His background and training has been focused within the insurance risk management practice, specializing in the commercial property, casualty and financial products with an emphasis on sophisticated risk financing, especially as it relates to the global/international business community. Higgins is a member of the Governor’s U.S. Southeast/Japan Association, former Board of director for Exchange Club, member of Society of International Business Fellows, former member of the Hartford Insurance Company Producers Council, Independent Agents of Tennessee, as well as Board of Director for the Mississippi Automotive Manufacturers Association (MAMA) and participating member of the Alabama Automotive Manufacturers Association (AAMA).

Updike, TAMA vice president, is managing director for BBK Nashville, providing BBK clients with extensive expertise in world-class manufacturing practices and continuous improvement methodology — targeting improvement in the areas of manufacturing, quality, supply chain and materials management. He is an experienced operations executive, having managed multiple facilities, union and non-union workforces and in public and private companies. Updike is a member of the Japan-American Society of Tennessee and the Turnaround Management Association.

Hunsinger, TAMA treasurer, is a senior manager in audit and enterprise risk services for Deloitte and Touche LLP, in Nashville. He has served multinational clients primarily in the manufacturing industry, including Bridgestone Americas Inc., Nissan North America, Saturn Corporation and Denso Manufacturing of Tennessee. Hunsinger also serves on the Finance Committee of Family and Children’s Service.

Other 2010 TAMA Board of Directors include: Thomas Brewer, director, South Central Tennessee Workforce Alliance; Phil Carver, sales consultant, Advanced Sales & Engineering LLC; Joe Conner, managing shareholder, Baker, Donelson, Bearman, Caldwell & Berkowitz, PC; Andre Gist, president and chief executive officer, Manufacturers Industrial Group; Bill Holt, warehouse operations manager, Continental Machinery Movers; Christine Karbowiak, chief administration officer, Bridgestone America Holding, Inc.; Thomas Loafman, director of purchasing, Volkswagen Group of America; Lorie Shaunteé, national recruitment specialist, Tennessee Department of Economic and Community Development; Rick Youngblood, director and plant manager, Nissan North America-Decherd. Brannan Atkinson, president of Atkinson Public Relations, serves TAMA as executive director.

TAMA was founded in 1987 in response to Tennessee’s rapidly growing automotive manufacturing industry led by Nissan North America and Saturn Corporation. TAMA is a membership organization created to strengthen and expand Tennessee’s automotive industry. It helps Tennessee automotive companies react to the challenges of the global automotive marketplace.

TAMA’s 132 diverse member companies include primarily Original Equipment Manufacturers (OEMs) and Tier 1, 2 and 3 suppliers as well as government agencies and professional services organizations that have specializing expertise in the automotive industry. Membership consists of both in- and out-of-state businesses.

Jim Williamson

Jim Williamson will hold the title of director of special projects. Elana Gulas will serve as economic development and retail coordinator. Blair Waddell is the new promotions and events coordinator.

“These three individuals bring our team to a new level, and their qualifications support the new vision and standard of the organization overall, said White. “Williamson’s strong background in both the technical and design industries gives him a unique perspective when working with potential businesses, government and other strategic partners to advance our downtown. His history of directing sustainability initiatives and managing development projects will be vital as we move forward with our goal of promoting and supporting Chattanooga’s downtown.”

Williamson has 15 years of experience in project management and architecture. Most recently he served as the director of a pre-construction services at Kuebler Builders, Inc. Prior to that, he worked as the senior project manager and director of sustainability initiatives at CBL & Associates. Williamson received his bachelor’s degree in architecture from the University of Tennessee.

Elana Gulas

Gulas joins the River City Company from CreateHere, where she served as the senior fellow for culture responsible for collaboration with business owners to facilitate successful community growth, events and campaigns. A graduate of East Tennessee State University, Gulas holds a bachelor’s degree in business administration with an emphasis in marketing. She is currently a member of WTCI’s Community Advisory Board.

“It is imperative that River City Company positions downtown Chattanooga as an ideal location for distinctive retail and other business opportunities,” said White. “In her role, Gulas will support River City’s efforts to support and grow the downtown retail and business sectors. She has shown herself to be a strong leader and committed to Chattanooga’s continued development.”

Blair Waddell

In her new position, Waddell will be responsible for the day-to-day operations associated with various new programs and promotions launched by River City Company to enhance the downtown experience.

Waddell joined River City from CreateHere, where she helped create the community-visioning project, STAND.

“Waddell will work with downtown businesses to establish partnerships for cross-promotion of downtown, and offer unique opportunities to engage residents and visitors in downtown life,” White said. “Waddell brings the highest level of professionalism to our company and a proven track record of event field work in our community.”

Established more than 20 years ago, River City, a non-profit organization, was funded by local foundations and businesses to serve as the catalyst of a community visioning initiative that also included the Riverwalk and the 21st Century Waterfront, The Tennessee Aquarium, The Creative Discovery Museum, RiverBend, the Chattanooga Lookout Stadium, the Bijou Theatre and a variety of residential developments. The organization acts as a facilitator and partner to assist businesses to expand and relocate, promote existing retail and attract new shops and restaurants to Chattanooga.

In 2009, Miller completed two acquisitions in Tennessee and one in Alaska. The Tennessee acquisitions, completed in June of 2009, have resulted in Miller becoming the largest owner/operator of oil and natural gas wells in the state of Tennessee.

In December 2009, Miller completed the largest acquisition in the 40-year history of the company by acquiring certain assets from Pacific Energy Resources in Cook Inlet, Alaska. Miller recently announced that its operations in Alaska were producing over 1,100 BOED and that the value of its reserves have increased 48 percent to over $540 Million PV-10 (SEC) and to over $862 Million PV-10 (NYMEX).

“It is an honor to receive the Tennessee Oil Man of the Year award,” said Boruff. “This award really should have been designated for our entire company. The tremendous accomplishments in 2009 at Miller Energy Resources could not have been achieved without the hard work and dedication of the team we have assembled within our organization and I want to thank them all.

“In 2009, we built the foundation for the future at Miller,” Boruff continued. “This has translated into a great start in 2010 for our company as we continue to effectively execute our ambitious business plan moving forward, while adding value for our shareholders.”

Miller Energy Resources is a high growth oil and natural gas exploration, production and drilling company operating in multiple exploration and production basins in North America. Miller is headquartered in Huntsville, Tenn., with offices in Anchorage, Knoxville and New York City.

According to DOL statements on this strategy, Plan/Prevent/Protect is aimed at those employers who have not taken the necessary steps to ensure compliance. DOL states its recognition that some employers’ lack of compliance is the result of difficulty understanding the laws and regulations that govern America’s workplaces. For other employers, DOL’s opinion is that complacency or a “catch me if you can” philosophy may be why they have not taken more proactive actions to achieve compliance.

The Labor Department seeks to change the behavior of such employers by requiring employers to “find and fix” problems, rather than waiting for a Labor Department investigator to discover the problems and enforce the law. Although the specifics will vary by law, industry and regulated enterprise, this “Plan/Prevent/Protect” strategy will require all regulated employers to take three steps to ensure safe and secure workplaces and compliance with the law:

* “PLAN”: The Department will propose a requirement that employers create a plan for identifying and remedying risks of legal violations and other risks to workers – for example, a plan to search their workplaces for safety hazards that might injure or kill workers. The employer would provide its employees with opportunities to participate in the creation of the plans. In addition, the plans would be made available to workers so they can fully understand them and help to monitor their implementation.

• “PREVENT”: The Department will propose a requirement that employers thoroughly and completely implement the plan in a manner that prevents legal violations. The plan cannot be a mere paper process. The employer cannot draft a plan and then put it on a shelf. The plan must be fully implemented for the employer to comply with the “Plan/Prevent/Protect” compliance strategy.

• “PROTECT”: The Department will propose a requirement that employers ensure that the plan’s objectives are met on a regular basis. Just any plan will not do. The plan must actually protect workers from violations of their workplace rights.

What the strategy proposes is that employers be required to assemble plans, create processes and designate people charged with achieving compliance. They will be required to implement these plans and evaluate their effectiveness in achieving compliance.

New rules will primarily target compliance with the Fair Labor Standards Act (FLSA), the Occupational Safety and Health Act (OSHA), the Federal Mine Safety and Health Act of 1977 (Mine Act), the Employee Retirement Income Security Act (ERISA), and Executive Order 11246 (affirmative action for federal contractors and subcontractors).

As part of the recordkeeping requirements of the Fair Labor Standards Act, the DOL proposes to establish a requirement that employers perform a classification analysis for any worker that the employer classifies as an independent contractor. The employer would then be required to disclose that analysis to the worker and retain that analysis to give to DOL investigators who might request it.

Without a doubt, DOL’s new enforcement program will compel employers to institute more proactive policies and actions to attempt to ensure their compliance with Federal employment laws. The first step is for employers to “find and fix’ violations – that is, assure compliance – before a Labor Department investigator arrives at the workplace. The audit can then be used as the basis for writing and implementing a compliance plan to prevent future violations. The plan must contain implementation steps such as annual compliance audits, methods for employees to participate in the plan, and designation of particular employees who are responsible for ensuring compliance. Ongoing education and training for these designated employees will also be a necessity, as well as a system for compliance reporting.

Employers who fail to take the steps necessary to comprehensively address the risks, hazards, and inequities in their workplaces will be considered out of compliance by DOL and, depending upon the agency and the substantive law it is enforcing, subject to remedial action. In other words, “Tag, You’re It” for developing, implementing and enforcing company policies that will ensure your company’s compliance with employment, safety and employee benefit laws.

Jerome Pinn is an attorney in the Knoxville office of Wimberly, Lawson Seale & Daves.  He welcomes your comments on this topic or other employment law issues, and can be reached at (865)546-1000.