tceperry--
No site is penalized for the use or non-use of any H tag. Looking at your Home page, I think it is lacking content. You are not penalized for this, either. However, your site has little text to index:
The Cutting Edge 4843 North Ridge Road, Perry, Ohio 44081
Phone: 800-962-2376 (440-259-2581) Fax: 800-453-2441 (440-259-2580)
Email: sales@cuttingedgeinc.com
Proof of this is in doing a search for "legend plates" minus the qutoes. Your site turns up at about #16 on Google. Here is what is important to note: It's not your Home page, but this one:
http://www.cuttingedgeinc.com/lp.htm
Notice the difference? Tons of text content. I think if you were to make a Home page similar to that page with your various products, your ranking in the results would improve. This has nothing to do with H tags or
SEO. It is simply content.