Economic development marketing and attraction is probably the least understood part of a community’s overall economic development plan. An economic development marketing and attraction strategy is how a community implements its wider economic development plan. Simply put, a successful economic development marketing and attraction strategy can help attract, retain, and expand new and existing businesses, and can help improve a community’s image both inside and outside the community. The marketing strategy should also focus on promoting the community-wide policies and programs designed to support technology-led economic development, small business entrepreneur led development, workforce development, real estate development and reuse efforts, and neighborhood level economic development efforts.

Before I go into the specifics of what a community economic development marketing and attraction strategy should look like, it’s important to remember that “marketing” is not an end in itself. Nor is marketing a panacea that can make up for a community’s shortcomings or the failure to develop and implement a comprehensive community-wide economic development plan that consists of technology-led economic development strategies, small business entrepreneur led development strategies, workforce development strategies, real estate development and reuse strategies, and neighborhood level economic development efforts. According to the International Economic Development Council (IEDC), “…marketing is a tool to help economic development practitioners reach their short and long term economic goals”.

Unlike product marketing, economic development marketing and attraction strives to position the competitive advantages of an entire community. Those with marketing backgrounds will recognize the following ways that economic development practitioners position their own communities. According to the IEDC, economic development practitioners position their own community in-terms of the following factors:

• Product Differentiation: Developing attributes and/or an image that is distinct from other communities such as a skilled workforce, core industries, or unique research and development activities. Also consider physical amenities as they significantly contribute to a community’s overall quality of life – a factor that has become increasingly important to high growth sector firms and industries over the past 15 to 20 years.

• Price Competitiveness: Having a comparatively low cost of doing business includes such things as lower labor and land costs, lower tax and utility rates, incentives that reduce operation costs, etc. Although the temptation is to focus solely on costs, we really want to focus on the “value proposition” rather than just “low cost”.

• Market Focus: Targeting a particular industry SECTOR such as plastics or software, or targeting a GEOGRAPHIC REGION for a particular audience.

Each of these factors needs to be spelled out early in the development of an economic development marketing and attraction strategy. It’s also important that different organizations, agencies, firms, industries, different levels of government, and the public in general be included in the early phases of developing the community’s economic development marketing and attraction strategy. It’s a sad fact that the most expensive and sophisticated marketing strategies often fail because product differentiation factors, price competitiveness factors, and market focus factors were not properly developed early on and are all too often developed by one or two interest groups. A narrow group leads to narrowly defined factors. Narrowly defined factors tend to favor the interests of only one or two groups while ignoring the interests of other groups/industries and the wider community at large.

Of the three factors listed above (product differentiation, price competitiveness, and market focus), “market focus” tends to be the hardest factor to properly define. When developing an economic development marketing and attraction strategy, it is critical to target those companies and those industries who best match the community’s assets and/or competitive advantages, who best coincide with the community’s overall economic development goals, and who have the best investment and growth potential that will help diversify the local and/or regional economy.

Economic development organizations and communities all too often use overly generic marketing phrases designed to appeal to no specific industry or firm in particular. Phrases like “we’re great” or “low taxes” or “mild climate” mean very little to individual firms and industries. It’s important to remember that every industry and firm is looking for something specific when it makes a relocation decision and every new business is looking for a specific reason why they should start a new business in a particular area. For example, high-tech firms want a highly skilled workforce and don’t mind paying a premium for qualified workers. But a large retail store is less interested in having a highly skilled workforce at its disposal. Instead, a large retail store wants a workforce that it can pay comparatively lower wages in order to remain competitive. So a phrase like “we’re great” or “mild climate” doesn’t really speak to the needs of either the high-tech firm or the large retailer.

In developing a community’s or region’s economic development marketing and attraction strategy, it’s important to have a greater understanding of the regional economy and its industries. The more accurately one can identify those industries and firms that best match the community’s existing capabilities, the more accurately one can target their economic development marketing and attraction efforts.

Once the product differentiation, price competitiveness, and market focus factors have been adequately defined, one can then move forward with developing the marketing strategy. Generally, there are five “main techniques” that can be used in the economic development marketing and attraction strategy. They include: 1) advertising, 2) publicity, 3) promotional materials, 4) direct mailing, and 5) personal selling. Because resources will always be scarce, it’s important to determine what specific technique or combination of techniques best suite the budget and needs of the community. The IEDC has established a few easy criteria for determining what marketing technique(s) is best. These include:

• Exposure: Exposure doesn’t necessarily mean reaching the broadest audience. Rather, “exposure” should mean reaching the RIGHT AUDIENCE.

• Presentation: Evaluate each technique for its potential demonstration, visualization, explanation, and credibility.

• Cost: The cost of each different technique varies widely ranging from very expensive to very inexpensive. Set up a budget and stick to it. Remember, marketing is ONE PIECE of the wider economic development plan. Spending all your money on advertising leaves nothing for technology-led development strategies, small business and entrepreneur development strategies, workforce development strategies, business retention and expansion strategies, real estate development and reuse strategies, and neighborhood level economic development strategies.

After the “message” and the “medium” have been determined, it’s equally important to EVALUATE, EVAULATE, and then EVALUATE some more. It’s a sad fact that very little time is spent evaluating the RESULTS of the economic development marketing and attraction strategy. But those communities that treat the evaluation of the marketing strategy with the same degree of importance that crafting the message and selecting the medium are treated with are the communities with the most successful marketing and attraction strategy. Any marketing and attraction strategy should be benchmarked or compared with past performances, with the results of marketing efforts in other communities or regions, and against pre-established “targets” that are established at the beginning of the marketing effort.

According to the IEDC, “Be wary of focusing entirely on job creation as the one true measure of success. Focusing on metrics other than job creation realizes the layered nature of economic development, and that there are other ways to succeed aside from recruiting that one big company”. Successful economic development efforts create mid to high skill jobs that pay mid to high wages and offer individuals meaningful opportunities for general upward mobility. Successful economic development also helps diversify a local or regional economy and positively contributes to a community’s overall quality of life level. Retail jobs are fine. But most retail jobs don’t create mid to high skill level jobs and don’t pay mid to high level wages. Retail development is revenue development; retail development is not economic development. This is why just counting the number of new jobs created is a poor benchmark.

The IEDC lists several different benchmarks, in addition to the number of new jobs created, that can be used to evaluate both the short-term and long-term results of a community’s economic development marketing and attraction strategy. They include:

• Number of new business start-ups created within 1, 3, and/or 5 years of implementing the economic development marketing and attraction strategy.
• Percent of new businesses still operating after 1, 3, and/or 5 years of implementing the economic development marketing and attraction strategy.
• Number of companies recruited and the number of jobs expanded within target industry sectors at the 1, 3, and/or 5 year mark.
• Percentage growth of jobs created at the 125% level of median income. Remember, the goal is to get the highest return on our economic development invested dollars. We want jobs that pay mid to high level wages.
• Number of patents awarded to area businesses, firms, and industries within the established market focus.

The economic development marketing and attraction strategy is vital to successfully implementing a community’s overall economic development plan. It helps craft and communicates the community’s overall goals. It is the “public face” that is put on a community’s economic development policies and programs. But it is also important to remember that any economic development marketing and attraction strategy is just one part of a community’s overall economic development plan. A successful economic development plan drives the marketing effort; in the end, it shouldn’t be driven by the marketing and attraction efforts.

The other night (Thursday, January 28, 2010) I was watching the local news and there was an excellent story on the role that entrepreneurship has and will continue to play in Nevada’s economic recovery from the current recession. Dr. Mark Pingle, economics professor at the University of Nevada, Reno, was interviewed by Channel 4 KRNV News about the types of jobs that will be central in the recovery of Nevada’s economy. Interestingly, Dr. Pingle didn’t really point to a single industry or type of job (although he did mention that service sector jobs will continue to play an important role). Instead, Dr. Pingle pointed that entrepreneurship in general will play a central role in the ongoing economic recovery. I thought I’d start this year’s series of economic development blogs by exploring this issue in more detail.

Many contemporary economists and policy analysts and makers have argued that “green technology” jobs will pave the way for the state’s and the nation’s short-term economic recovery and eventual return to long-term economic growth and prosperity. Even the President, in his January 27th, 2010 “State of the Union Address”, placed great emphasis on the role “green technology” jobs will have in helping the nation recover from the current economic recession and help the United States regain its title as the most prosperous and innovative nation in the world. In Nevada especially, many economists, policy analysts, and policy makers have argued that Nevada’s abundance of geothermal, solar, and wind resources comprise a 21st-Century goldmine for Nevada’s future.

Certainly, there is a lot of truth behind the assertion that today’s investment in alternative energy resources and other “green technologies” can be a goldmine for both Nevada’s and the nation’s long-term economic interests. If anything, the successful investment in alternative energy resources and other “green technologies” can reduce our local and national dependence on foreign sources of energy and who knows what other applications today’s investment in alternative energy and other green technologies might render. Keep in mind that some of the most significant discoveries in the world, like the discovery of penicillin, were made by complete chance and the result of other non-related research.

Perhaps that’s the main point that Dr. Pingle was trying to make last night when he said, “I don’t think the future lies in green jobs or computer technology or any one thing. If it were that simple, someone would have already done it.” Dr. Pingle is not “as alone” as the news story suggests. In fact, many scholars, practitioners, and professionals in the field of economic development have argued for decades that the problem with contemporary entrepreneurial economic development policies and contemporary business retention, expansion, and attraction programs is that they often limit themselves to one or two primary industries with little realization that local, regional, state, and national economies are far more complicated and are comprised of numerous inter-related industries. Think about this in your own case. Do you just consume energy? Or do you also buy clothes? Do you go to the movies? Do you drive a car to work or take public transportation? How many cups of coffee do you have a day? Do you get your hair cut? Do you like to go skiing? See. Your own economic life is far more complicated than just the energy you consume. Our public economic development policy should keep that in mind and we shouldn’t be so quick to put all our economic eggs into a single basket.

By focusing on just one or two primary industries – like green technologies, renewable energy, or computer technologies – a local, regional, state, or even national economy can become highly susceptible to the ebbs and flows of a market-driven economy where periods of boom and bust can threaten the dominance of the primary industry. Let’s not forget that over the past 50 or so years the Nevada economy was, and still is, primarily dependent on the gaming and tourism industry. The Nevada gaming and tourism industry is, by all accounts, passed its prime as Nevada no longer has the monopoly on gaming that it once enjoyed. Almost every state in the country, and many nations across the world, has invested heavily in the development of their own gaming and tourism industry. This changed reality has left Nevada’s long-term economic health exposed and weakened. Economic diversification, through a well defined and crafted economic development strategy and plan, strives to make the economy of interest – a local economy, a state economy, a national economy, etc. – less dependent on any one industry but encourages economic growth through the successful development and growth of several industries that are inter-related but can also be successful without the other industries.

Southern California is a perfect example of what happens when economic development policy is designed to favor a particular industry or set of industries while ignoring the wider economic development interests of the region. For much of the Cold War between the United States and the U.S.S.R., state, regional, and local policy makers throughout Southern California took exceptional policy steps in promoting an aerospace industry. In a very short period of time, the aerospace industry became one of the largest, if not the most dominant, employer and most profitable industries in Southern California. For decades the aerospace industry was relied upon to provide Southern California, and really the entire state, with a never-ending supply of highly skilled, high paying jobs. No one thought that it would ever end. And then the Cold War ended and the aerospace industry in Southern California considerably shrank. So much was invested in the aerospace industry that when it collapsed it left millions unemployed. The impacts of the collapse of the Southern California aerospace industry are still felt today – nearly 20 years after its peak.

This is the lesson that Nevada economic development policy makers should keep in mind. Replacing one dominant industry (i.e. gaming and tourism) with another dominant industry (i.e. renewable energy, green technologies, or computer technologies) is not a long-term plan for long-term, stable, economic growth. Believe it or not, something else will come along in the unforeseeable future to replace these emerging industries. Certainly, policy makers in Nevada should strive to develop the natural resources – i.e. geothermal, solar, and wind – that are abundant throughout the state and help encourage reasonable growth in these areas. But, as Dr. Pingle pointed out last night, Nevada policy makers should also consider wider and more complex entrepreneurial policies, programs, and strategies.

We should be considering how we can support innovations and invention – IN GENERAL. We should not worry about what specific field or what specific uses these future innovations and inventions can serve. The International Economic Development Council (IEDC) argues that the primary goal(s) of economic development policies, programs, and strategies should be to create mid to high skill level job opportunities that offer mid to high level pay, offer individuals meaningful opportunity for general upward mobility, and contribute to a community’s overall quality of life. Nothing in that definition mentions renewable energy, green technologies, or any other industry.

In order to create those mid to high skill level jobs, that offer mid to high level pay and offer individuals meaningful opportunities for general upward mobility and contribute to our state’s overall quality of life, we first have to embrace the vast complexities of our state, regional, and local economies. In doing so we have to talk seriously about our state’s fiscal system, our education system, our infrastructure and transportation system, and the many other things that contribute to our collective long-term economic growth.

I just wanted to say “sorry” that it’s been nearly a year since my last post. As some of my readers know, I’ve been a Doctoral Student at the University of Southern California for the past two years and I spent all of last year writing my dissertation, titled, “The Twilight of the Local Redevelopment Era: The Past, Present, and Future of Urban Revitalization and Urban Economic Development in Nevada and California”. I successfully defended the 617-page dissertation in front of my committee last month on December 4, 2009. Now that I don’t have to spend 14 hours a day writing and editing my dissertation, I hope to spend much more time on the NSBDC Blog writing about “economic development”.

Check out my latest post – “The Role of Entrepreneurship in Nevada’s Economic Recovery” – posted on Friday, January 29, 2010.

I look forward to reading your comments and thoughts.

Thanks.

Dr. Frederick Steinmann

A checklist to use during the development process

Are you ready to build a website for your small business or for yourself? There are simple search engine optimization steps you should consider during the development process.

The following 12 step optimization checklist will bring you one step closer to maximizing your revenues with smart web design.

1.) Choose a domain name, that is a URL, that is descriptive of what your website will represent:

• Your business name (ex. WestwardStrategy.com)
• Your first and last name (ex. KristyCrabtree.com) or
• Keyword specific phrase (ex. WestwardDesignGroup.com)

2.) Decide what keywords and/or phrase targets the visitors you are looking for, and that best describes what your business offers.

3.) Sub directory names using keywords or phrases should use hyphens in the url: http://url.com/descriptive-keyword/

4.) Title tags are the words that appear on site visitor’s browser tabs as they navigate through your site. Clearly define your title tags for each individual web page making sure that it is accurate and descriptive of the page’s content. Keep it 70 characters or less.

• (Example 1) Primary Keyword – Secondary Keyword | Brand Name
• (Example 2) Brand Name | Primary Keyword and Secondary Keyword

5.) The meta description is the primary source of information search engines review, and this is also the information that appears along with your site name in the search engine results. Clearly define your meta descriptions for each individual web page making sure that it too is accurate and descriptive of the page’s content. Keep it 155 characters or less

EXAMPLE: Keyword/Phrase Search Results

6.) Develop keyword rich content on all pages including the keyword and/or phrase within the content

7.) Use descriptive words for your navigation when it makes sense

8.) Name all images on website with descriptive image names:

• (Example) chocolate-lab-running.jpg vs. img0893.jpg

9.) The title tags are the words that visitor’s click to reach the hyperlinks behind them. Add descriptive title tags to anchor links

• (Example) title=” Descriptive Title Tag” vs. title=”Click Here”

10.) Setup Google Analytics and see who’s visiting your website and who’s giving you referral’s: http://www.google.com/analytics

11.) Create a sitemap and submit to Google Webmaster Tools and other search engines. The free tools give you a look under the hood at your website performance: https://www.google.com/webmasters/tools

12.) Add new website to local free business listings and other free directory sites

__________________________________________

Contributed by Kristy Crabtree
Westward Strategy & Design Group

Here is a question that our clients often ask: “My husband and I are thinking about buying a local business. The current owner has a price in mind. My husband seems to think it’s a good deal, but it seems high to me. How do we figure out what a fair price would be?”

Purchasing an existing business can be a great way to launch yourself into the world of commerce. Since the business is up and running you can be saved much of the hard work and risk involved in starting up a new venture. The equipment, inventory, procedures, employees, and even customers, are already in place. Of course this is why the current owners may want more for the business than just the value of the assets. They have worked very hard to put all this together.

First you need to work through the tough decisions concerning the lifestyle changes, personal commitment necessary, potential impacts to your family’s well being, and risks to your mental health that may come from owning your own business.

You should also find out why the current owner is selling the business. Is it to retire, or change careers? Maybe it is a partnership that has fallen apart. Keep a keen eye out for businesses that are failing, and the owner is looking to hand the problem off to someone else.

Once you have convinced yourself that ownership of this business is for you, you need to look at the valuation process.

Typically a business may be worth from 2 to 3 ¼ times the adjusted annual cash flow. Determining that “adjusted annual cash flow” is the real trick. To figure this out you will have a fair amount of research and homework to complete. In business this is called a “due diligence” study.

You must get the current owner to give you the profit and loss records for the past 24-36 months, tax returns representing the same period, a current balance sheet, copies of the utility bills and other major expenses, bills from suppliers, and a listing of the inventory and equipment to be conveyed in the sale. Using these documents you can obtain and verify the profits and expenses of the business.

With all of this information your primary goal is to figure out how much money the business will make if you are running it. You will want to look closely at how much the current owners have been taking out of the business and how many perks and extra expenses may be included in the costs. Look for trends; has the business been growing, holding steady or decreasing, and what are the reasons for those trends.

Another area you will want to look closely at are the assets of the business. What is the real value of the equipment and the inventory. Is the inventory current, will you be able to use or sell it, or is much of it outdated and worthless? If the transaction is to include property or a building you may want to look at that portion of the purchase from only a real estate perspective. It’s as if you are making two purchases, one for the business and one for the property.

Once you have looked carefully over all this information you will begin to understand the real value of this existing business. Armed with your new knowledge you should talk with your attorney, accountant, banker, perhaps other business owners to get their guidance and advice. But remember, that this is your decision and only you can decide whether a business is for you.

We have a good publication about buying and selling a business in the toolbox publications on our own site, right here. It more fully explains this transaction from both the buyer and sellers point of view.

You might also want to look up information on buying a business at www.sba.gov or at the Kaufmann Foundation’s Biz Info Library. These websites have extensive libraries of information that can really help you complete your due diligence study.

If you’d like to talk with someone about this, call us and make an appointment, that’s what we are here for.

Entering into a commercial lease is one of the first steps entrepreneurs take when opening a new business or a new location. The lease process involves many important decisions, not only assessing the viability of the physical location, but also the provisions contained in the lease document. It is important to remember that not all leases are created equal. In fact, many provisions in a lease may appear harmless, but can have significant ramifications to your business and its operations.

Term and Renewal Periods

For a new business, a shorter initial term with several optional periods for renewal provides the most flexibility. Not only does a
shorter initial term limit the exposure if the new business does not do as well as planned, but it can also provide flexibility to the new business if it is so successful that the premises is no longer functional for its operations. Further, renewal terms should always establish a future lease rate. Failure to establish a method to calculate future increases can result in disagreements when the initial term expires.

Use and Exclusivity

The use provision should clearly identify all of the expected business activities, while at the same time, not limit future expansion. This provision does not ensure that zoning and other laws allow for the businesses use. It is the tenant’s responsibility to check into these items before the lease is executed. In addition, the Landlord should provide an exclusivity clause which protects against the leasing of space to another tenant who would directly compete against the business. This provides protection of the customer base and also protects your Landlord against vacancies from business failures that such direct competition may cause.

Personal Guarantees

Personal guarantees are generally standard for new business leases. These guarantees make the guarantor personally liable for the lease in the event that the business is not able to meet the obligations of the lease.

Maintenance and Repair

The lease should always clearly identify the parties responsible for maintenance and repairs. Generally in multi-tenant locations, the tenant is responsible for the maintenance and repair of the interior of the premises and the landlord is responsible for the outside and common areas, including all structural components. Additionally, the tenant generally has to return the premises to the condition it was in at the beginning of the lease term, excluding normal wear and tear.

These are only a few of the items to be aware of in any lease. The most important thing to remember is that nothing is a substitute to having an experienced attorney review your lease.

© 2009 Drinkwater Law Offices

By Bonnie Drinkwater, Esq. and Tracy McKenzie, Esq.

Under both federal and state employment laws, employers are required to post specific employment materials for employees in a conspicuous area (such as a break or lunch room) and in a language employees understand. When there are changes to existing employment laws or new laws are enacted, the mandatory posting requirements also change. Accordingly, employers must be aware of and comply with changes in the mandatory posting requirements.

There have been several recent amendments to both state and federal employment laws and mandatory posting requirements. Effective November 21, 2009, employers with fifteen or more employees must post the updated “Equal Employment Opportunity is the Law” poster which includes information regarding the new Genetic Information Nondiscrimination Act (“GINA”) prohibiting discrimination against applicants and employees on the basis of genetic information.

In addition, following are several recent changes to state employment posting requirements: 1) Effective October 20, 2009, the Nevada Unemployment Insurance poster must include a new website address for filing an unemployment claim online; 2) The Nevada Minimum Wage poster was recently updated to reflect an amendment to exemptions that apply to retail or service workers and to reflect the recent increase in the state minimum wage.

We recommend that employers obtain the mandated employment posters from a provider that notifies employers of posting requirement changes and provides updated posters (e.g. www.postercompliance.com).

© 2009 Drinkwater Law Offices

By Bonnie Drinkwater, Esq. and Kerry Kolvet, Esq.

If you are in business or thinking about starting a business in Nevada, there has been a change in the way that your business should obtain its Nevada Business Registration (the “License”). With a few minor exceptions, this License is required of every person or entity doing business in Nevada. This means anyone who performs services or engages in a trade for profit or if you have a legal entity with the State.

Effective October 1, 2009, State Licenses began to be issued out of the Nevada Secretary of State Office rather than the Department of Taxation where you previously filed for the License. As part of this change, the Secretary of State’s office will require that all businesses file for their annual State License in conjunction with the filing of the Annual List.

What if you should have a License, but never got one?

If your initial list is due soon (before the end of the year), you can simply apply for the License when you file your initial list with the Secretary of State. However, if your list is not due soon (say before the end of the year), you should submit a Gap Business License Application as soon as possible to avoid late penalties for failure to obtain a License. Thereafter, your License will be due when your annual list is due.

What if you have a License but it expires before your annual list is due?

You should submit a Gap Business License Application as soon as possible (preferably before the expiration date) to avoid late penalties for failure to obtain a License. Thereafter, your License will be renewed when you file your annual list.

What if you have a License, but it expires after your list is due?

Simply file your list when it is due and submit for your License renewal at the same time (even though it has not expired). You will pay a prorated fee for the balance of the year and, next year, your License will expire at the same time that your annual list is due.

To find more information and the appropriate forms, visit the Nevada Secretary of State’s website at www.sos.state.nv.us.

© 2009 Drinkwater Law Offices

By Bonnie Drinkwater, Esq. and Tracy McKenzie, Esq.

Effective October 1, 2009 (It’s coming up fast!), the State of Nevada will recognize a new civil contract between unmarried individuals who meet the requirements of the Nevada Domestic Partnership Act and who properly file registration documents with the Nevada Secretary of State.  Domestic partners may be the same sex or opposite sex.

The new law grants registered domestic partners the same rights, protections, benefits, responsibilities, obligations and duties as those granted to married couples under the law whether imposed by statute, regulation, rule, government policy, common law, or any other source of law.  These rights and responsibilities extended to registered domestic partners include those provided under testamentary/probate law, employment and discrimination law, and all family law statutes including community property, spousal and child support, and adoption.

Although distinct from marriage under Nevada’s Constitution, domestic partners should, in most cases, be treated as the legal equivalent of spouses with the exception listed below.

OK, Fine!  So what are you supposed to do???

To comply with the Nevada Domestic Partnership Act, you should review your policies and procedures to determine if revisions need to be made to account for registered domestic partners.  Generally, any reference an employee’s spouse in your employee handbook or policies should be revised to refer to “spouse and/or domestic partner.”  In doing these revisions, however, you should be aware that certain benefits for spouses mandated by federal law, such as COBRA continuation health coverage and Family and Medical Leave Act leave, may not be available to domestic partners.

Also, think about your company’s forms.  If you have a new hire packet that includes information about a spouse, change that to say “Spouse/Domestic Partner.”

YOU HAVE A CHOICE REGARDING HEALTH CARE BENEFITS!

The major exception to the rights extended to registered domestic partners is required employer health care benefits.  Public and private employers in Nevada are not required to provide health care benefits under their applicable plan to registered domestic partners, but they may choose to do so.

If you wish to extend insurance benefits to domestic partners, we suggest that you call your insurance provider to discuss whether you can and/or will offer benefits to domestic partners of your employees.  Under this new law, employers who offer benefits to their employees and spouses will need to carefully evaluate each benefit and determine if they are required, or if they elect, to include domestic partners.

Please keep in mind that under federal law, neither same-sex spouses nor domestic partners are generally recognized as spouses for whom favorable tax benefits apply. This would usually mean that certain tax-favored benefits (like pretax cafeteria plan or flexible spending account benefits) cannot be provided to employees who add domestic partners to group health plan coverage.

The conditions that must be met to register a domestic partnership can be found in Senate Bill 283 in the 2009 session information on the Nevada Legislature’s website:  www.leg.state.nv.us

For more information on how to register a domestic partnership with the Nevada Secretary of State, go to:   www.nvsos.gov/licensing/securities/domesticpartnership.asp

© 2009 Drinkwater Law Offices

By Bonnie Drinkwater, Esq. and Tracy McKenzie, Esq.

Effective August 15, 2009 in the State of Nevada, if you are an employer with fifty (50) or more employees (for each working day in each of twenty (20) or more calendar weeks in the current calendar year), you must comply with the new parental leave for school activities law.

This law requires you to provide an employee who is a parent, guardian, or custodian of a child enrolled in a public or private school four (4) hours of unpaid leave per school year per child to:

• Attend parent-teacher conferences;
• Attend school-related activities during regular school hours;
• Volunteer or otherwise be involved at the school in which the child is enrolled during regular school hours; and
• Attend school-sponsored events.

You may place the following restrictions on an employee’s use of the parental leave:

• The leave must be taken in increments of at least one (1) hour;
• The leave must be taken at a time mutually agreeable to both the employer and the employee;
• The employer may require the employee to request the leave in writing at least five (5) school days in advance of the leave; and
• The employer may require an employee to provide documentation indicating that the employee attended or participated in the school-related function for which the leave was granted.

What changes should I make to my employee handbook?

You should prepare and distribute a new (or updated) policy which sets forth who is eligible for the leave, the amount of leave, the activities for which leave will be granted, and the procedure an employee must follow to request the leave.  The policy should also contain a provision indicating that the company will not terminate, demote, suspend or otherwise discriminate against an employee, or threaten to take such action against an employee, who utilizes the leave benefits provided by the new law.

Do I need to do training?

The employer should also train their supervisors and managers regarding the provisions of the new law to avoid discrimination against employees who take parental leave.  There are provisions in the law itself that make it an unlawful employment practice for an employer to terminate, demote, suspend, discriminate against, or to otherwise threaten to assert such action against an employee who:  (1) takes the parental leave granted by the statute; (2) attends a conference requested by an administrator of the child’s school; or (3) is notified during work hours by a school employee of an emergency regarding the employee’s child.

What happens if I don’t comply?

The provisions of the new statute provide specific remedies for a violation.  If you terminate, demote, suspend, discriminate against, or threaten to take such action against an employee in violation of the new law, you may be guilty of a misdemeanor.  There is a procedure for an aggrieved employee to file a complaint with the Labor Commissioner.  You then have an affirmative duty to provide the employee “who is discharged from employment or who is demoted, suspended or otherwise discriminated against with all the forms necessary” to file a complaint with the Labor Commissioner.  If the Labor Commissioner finds in favor of the employee, the Labor Commissioner may award, in addition to any remedies provided in NRS Chapters 607 and 608, the following:  (1) lost wages and benefits as a result of the violation; (2) an order reinstating the employee to their position without loss of seniority, pay or benefits; and (3) damages in the amount of the lost wages and benefits.

© 2009 Drinkwater Law Offices