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Prevailing Wage – What Do I Need to Know?

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Lori A. Beirman, Director of Audit Quality, Dannible & McKee, LLP

Micron Technologies is slated to build a semiconductor fabrication facility in Onondaga County. The project may receive, among other things, up to $5.5 billion in tax incentives from Albany’s “Green CHIPS” program. This program requires construction projects to comply with prevailing wage rules.

Prevailing wage laws are designed to level the playing field for local workers. These laws apply to public projects and require contractors to pay most of their workers a set minimum wage of no less than the local “prevailing wage” rate. This rate is often based on wages and benefits paid to union employees. By standardizing compensation rates across union and nonunion worksites, the higher standards and benefits obtained by unions through collective bargaining agreements are extended to a much larger base of workers.

For some background, federal construction projects are covered by the Davis-Bacon Act, which is a federal law that protects construction workers’ wages on government-funded projects. It covers all 50 states. In addition, 32 states have their own prevailing wage laws for state government-owned construction projects. The New York State Department of Labor (NYSDOL) is responsible for calculating the prevailing wage for state and local government projects, except for New York City, where the city comptroller publicizes prevailing wage rates. While the U.S. Labor Department determines prevailing wage by conducting periodic surveys of area employers, New York State does not conduct a wage census. Instead, the NYSDOL copies the terms and conditions of construction union contracts, for each trade and region. This difference is due to the assumption that at least 30% of the workers in every trade in every part of the state belong to a trade union. Because these “prevailing” wages are often based on union contracts, including union fringe benefits, they can equal or even exceed a worker’s hourly cash pay on private work. In other words, in addition to the basic hourly cash pay rate, prevailing wage schedules include supplements (fringe benefits) that vary based on the craft, trade or occupation. Prevailing wage supplements may be provided to workers in the form of a cash payment (wages), or through irrevocable contributions to a fund, plan or program, or any combination of the two. Deciding which method of payment for supplements to use can be complicated and should involve discussions with a financial professional.

To further support local workers and boost the local economy, lawmakers continue to work to broaden the definition of public work and expand the reach of the prevailing wage to more projects across the state. For example, since prevailing wages drive up costs, it may encourage contractors to have more work performed off-site. To counteract this issue, in 2017 and again in 2023, lawmakers worked to pass laws to apply prevailing wage rules to certain off-site fabrication of goods used on a public works job site. In February 2022, New York State passed a law relating to the payment of prevailing wage for work involving the delivery to and hauling of aggregate supply construction materials on a public works job. Additionally, state and federal lawmakers have proposed legislation to broaden the definition of public works projects to include those paid for in whole or in part out of public funds.

Due to these constant changes in the law, it is important for construction contractors in New York to stay up to date with the laws and their responsibilities, not just for their employees but also for the employees of their subcontractors. According to Section 198 (e) of the New York State labor laws, contractors are liable for all claims on unpaid wages, benefits and wage supplements for workers employed by their subcontractors.  Therefore, it is critical for contractors to perform due diligence on their subcontractors. Recordkeeping is critical to ensure compliance with prevailing wage laws in New York. Proper documentation of employee hours worked ensures contractors adhere to the law and assists in any possible investigations or audits conducted by the NYSDOL.

Prevailing wage laws support good wages and benefits, thereby helping to close racial, gender and geographical pay gaps, promote quality work and improve the value received for each taxpayer dollar. However, for employers, prevailing wage laws can be confusing and complex. The repercussions of noncompliance can be devastating to any business. Therefore, it is important for employers to have a clear understanding of prevailing wage laws and to know when to ask for assistance.

Lori A. Beirman is the director of audit quality at Dannible & McKee, LLP, a public accounting firm with offices in Syracuse, Auburn, Binghamton and Schenectady, NY, and Tampa, FL. She has over 23 years of experience in audit, reviews and compilations in a variety of industries, such as construction, manufacturing and professional service firms. For more information on this topic, you may contact Lori at (315) 472-9127 or visit online at www.dmcpas.com.

State of the Construction Industry

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Earl R. Hall, Executive Director, Syracuse Builders Exchange

 Considering the multi-year, $2.5 billion Route 81 project, and the highly anticipated start of Micron’s 20-year, $100 billion semi-conductor chip fabrication project in Clay, the media and elected officials have used the word “megaprojects”.   These unusual megaprojects garner great interest and typically lead to questions about the impact of these projects on society.  As a result, people have asked me about how such megaprojects impact the construction industry in central New York.

To begin with, it is important to understand that the construction ecosystem, although resilient, is fragile.  The tripartite balance that exists between project owners, contractors and labor has never experienced projects of this magnitude happening at once, so forecasting the impact on the industry may be difficult.  Making assumptions is what a good actuary does to assist in predicting the future, so I will make assumptions to provide better context.

Assumption #1 – Labor

The lack of labor continues to plague the industry, which in some cases may result in a contractor’s inability to complete a project on time.  Failure to complete projects on time may contractually lead to liquidated damages.  Delivering labor to Micron will certainly be a challenge as the regional industry today does not have such capacity; however, one can assume much of the labor for Micron will be imported from other regions of the United States.  As a result, I do anticipate the project will have the labor force necessary to achieve project delivery requirements, but certainly there will be labor challenges.  Moreover, regional contractors serving traditional clients, such as hospitals, universities, industrial and institutional facilities may not be materially impacted to the extent of not having available labor.

Assumption #2 – Project Schedules

Project owners’ delivery schedules are becoming increasingly aggressive, both in the public and private sectors.  Often the contractor’s ability to achieve the schedule is dependent upon a wide variety of items but having adequate labor and timely delivery of construction material, such as concrete, is essential to achieving schedule goals.  Although much of the labor on the megaprojects may come from out of state, one should assume meeting project owners’ future aggressive schedules may be more challenging due to the potential labor pressures associated with megaprojects.

Assumption #3 – Wage Growth

Anticipating future regional wage growth is paramount for construction contractors and project owners alike.  How will the megaprojects impact future wage growth?  Over the past two years, construction industry employees have enjoyed advantageous conditions leading to above average wage growth.  I expect this environment to continue, with wage adjustments far exceeding inflation.  Additionally, many employers are rewarding their best employees with additional compensation, benefits and other incentives to remain with their employer.

Forecasting future regional wage growth will be difficult as it remains unknown the incentives required to attract labor to Micron’s project.  While Micron’s 20-year project has a Project Labor Agreement which contains the unions’ wages and fringe benefit schedules, I anticipate such wage schedules will be the “minimum wage” requirement for this project.

“What does this all mean?”

The most asked question is, “How will these megaprojects impact other project owners?”  This question is most difficult to answer; however, one can assume:

  • Continued exceptional craftsmanship from labor.
  • Continued exceptional project management, execution and delivery from construction industry employers.
  • Renewed focus on the tripartite relationships.
  • Increased cost of labor and associated increased cost of construction project budgets.
  • Less compressed project delivery schedules.
  • Billions of dollars in new construction spending for new projects surrounding and supporting these megaprojects.
  • Continued labor shortages.
  • Enhanced Career and Technical Education programs in public schools.
  • Increased construction in the housing market.
  • A revitalization of the central New York region.

These two megaprojects, along with additional capital investments from both the public and private sectors, will directly fuel the incredible economic development central New York will experience over the next decade.  It will be essential that the construction industry, and society in general, take advantage of these opportunities and overcome any of the barriers associated with change. 

Steering Through New York’s Construction Safety Landscape

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Wael Khalil, VP & Director of Safety & Health. Lovell Safety Management

In the challenging construction landscapes of New York State, employers face the formidable task of navigating through terrain complicated by the steep costs of insurance. This situation is largely exacerbated by the rigorous absolute liability laws that pertain to falls. For years, these falls have not just been a leading cause of significant injuries within the construction industry but have also escalated the financial implications of such incidents to new heights. Constructing a high-rise building in New York can incur higher expenses compared to other states, largely due to the elevated costs of insurance. Despite legislative initiatives that mandate comprehensive training on proper fall protection measures, these types of accidents continue to pose a persistent threat to the wellbeing of construction workers and the economic stability of their employers.

Drawing on three decades of experience in the health and safety field, I have witnessed firsthand the evolution of job site safety. Today’s construction sites are undoubtedly safer than those of 30 years ago, a testament to the progress achieved through relentless advocacy, improved standards, and technological advancements. However, our quest for “absolute safety” is an ongoing endeavor.

An analysis by The National Institute for Occupational Safety and Health (NIOSH), published in September 2017 and titled “The construction FACE database — Codifying the NIOSH FACE reports,” sheds light on fall-related fatalities. The findings reveal that since 1982, approximately one in five individuals documented in the Construction FACE Database (CFD) succumbed to injuries within their first two months on the job. Notably, 75% and 43% of the reports recommended the implementation of safety training and the installation of protective equipment, respectively.

Yet, a detailed examination of job sites plagued with safety violations uncovers a recurring issue: the failure of employers to enforce established safety protocols. It becomes evident that while education and training are crucial components, they alone do not complete the puzzle. The most significant gap lies in the enforcement of known safety regulations—a duty that falls squarely on the shoulders of employers. As per NYC Department of Building, as of January 2023, falls constituted approximately 70% of all construction-related incidents, yet New York City imposes the most comprehensive employee training regulations in the state and in most cases the country.

The legal framework, particularly embodied by New York State’s Sections 240 and 241 laws, looms large over the construction sector, highlighting the critical necessity for employers to intensify their focus on safety enforcement. This could encompass an array of proactive strategies, such as conducting surprise inspections, initiating unannounced audits, and engaging third-party evaluators for impartial site assessments. Such measures not only ensure adherence to safety standards but also cultivate a culture of diligence and accountability.

The message is unequivocal: Employers must elevate their management of job site safety to mitigate risk exposure. In an industry marked by considerable stakes, the repercussions of complacency can indeed be profound.  As we continue to strive for a safer tomorrow, the commitment to rigorous enforcement of safety protocols remains the beacon guiding our efforts. The path to reducing the financial and human costs of construction accidents is clear, and it begins with a steadfast dedication to safety at every level.

For more information on this issue and other safety related concerns on the job site you may contact Wael Khalil, VP & Director of Safety & Health, Lovell Safety Management at wkhalil@lovellsafety.com or 917-692-9108.   You may also visit online at www.LovellSafety.com.

 

NYS 2024 Workers’ Compensation Updates

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By: Brett Findlay, Sr. VP, Business Risk Specialist

There have been significant changes applicable to New York State workers’ compensation in 2024. However, none have been as impactful as the 2022 change to the experience modification rating formula (or EMR), which all experience-rated policyholders have now seen the effects of. The volatility of loss impacts to policyholder EMR’s has been significant. There may be some help on the way, through rate decreases.

For the ninth consecutive year, an aggregate rate decrease is on the horizon. Furthermore, the New York State Assessment was dropped again in January. Also, the impacts to individual workers’ compensation policies from the changes to the experience rating (EMR) formula have been experienced by all policyholders since our last update.

In a press release dated May 9, 2024 the New York Compensation Insurance Rating Board (NYCIRB) filed its annual loss cost indication with the New York State Department of Financial Services. An approved and published filing for the expected decrease of 9.0% of the overall loss cost level should be confirmed and announced by August 1, 2024. The change in rates is effective on policies renewing on or after October 1, 2024.

The impact of the loss costs, or rates, will vary depending on each individual classification code. For an understanding of the potential impact to your business and individual class codes utilized on your policy, please feel free to reach out to OneGroup using the contact information below.

It is important to note that these rate changes will not go into effect on any individual policy until October 1, 2024. If your effective date is before that date, you will have to wait until your policy renewal before any potential rate changes apply. Regardless of when your effective date is, you should know the exact rate changes to your classifications sooner rather than later. It’s important to not only forecast the future costs of your program, but also to develop a plan for your upcoming renewal.

In January, the New York State Assessment saw another decrease. This year the assessment dropped from 9.8% to 9.2% in 2023, even moreso from 10.2% in 2022, and 11.8% in 2021. Overall, there’s been a nearly 20% decrease in the aggregate cost to policyholders since 2021.

As far as the new formula to determine Experience Modification Ratings, or EMR’s, those changes went into effect on October 1, 2022. The formula is significantly different than it has been in the past and is affecting policyholders who’ve experienced workers’ compensation losses from both a frequency and severity standpoint. OneGroup has been monitoring the impact to policyholders, hosted multiple educational seminars, and developed materials to explain the changes in detail. The formula change has impacted many businesses, both positively and negatively. For more information on how you have been or will be affected, please do not hesitate to contact us directly.

So, what does this mean for New York State contractors? For any individual questions and/or concerns, please do not hesitate to contact Brett Findlay, Sr. Vice President of Business & Construction Risk.

OneGroup has a team of specialists, dedicated to risk management and construction industry specific insurance issues. We’re able to serve as a resource to your organization for all your construction specific questions and concerns. OneGroup takes great pride in being at the forefront of industry trends and assisting others where we can. You can find out more about us here: www.OneGroup.com or about our construction expertise, http://www.OneGroup.com/business-insurance/unique-industry-solutions/construction-industry/.

For more information please contact Brett Findlay, Senior Vice President Business Risk Specialist at (315) 280-6376 or BFindlay@OneGroup.com 

Syracuse Community Health: Evolving and Expanding Under New Leadership

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By Elizabeth Landry

Syracuse Community Health entered a new chapter this year, with Ofrona Reid, MD, MBA, MS taking the helm as Interim President and CEO this past January. Reid was previously the Chief Medical Officer at Oneida Health, having re-located to Oneida from the Bronx, where he grew up. His experiences in his youth have contributed to his sense of passion for leading Syracuse Community Health, a vital health care organization in Central New York that serves those who are uninsured, disadvantaged or who face other obstacles to receiving quality healthcare. In the city of Syracuse, the patient population facing challenges to having its healthcare needs met is large: the city’s 13202 zip code ranks as the poorest in the state and ranks 26th nationally.

“Growing up in the same type of community with similar struggles, barriers and exposures gave me a sense of what’s needed in the greater Syracuse community, as well as the desire to really make a change,” Reid said. “My ultimate passion and vision are to design and deliver a high-quality care model that focuses on providing health equity to patients who unfortunately are vulnerable and under-served in our community.”

Expanding Access to High-Quality Care

Along with his executive team, including Jessica Yoxall, Chief Operating Officer and John Milligan, Chief Financial Officer, Reid has laid plans for several initiatives aimed at increasing access to quality healthcare for the impoverished communities in Central New York. Included in these plans, SCH will be expanding the Quick Care center to increase walk-in access for patients. According to Reid, these walk-in services are critical to the goals of the organization.

“If we have a patient coming into Quick Care for foot pain, for example, we can screen them for other underlying conditions like high blood pressure or diabetes, and then tunnel them to a primary care provider for further care. This process allows us to identify and help close health care disparities in the community,” Reid explained.


Along with the expansion of the Quick Care offerings, SCH will also be adding more dental care for its patients, specifically at the East location. Yoxall explained how these additional dental services are aimed at resolving some of the health care disparities in the area related to location and lack of transportation.

“One of the things we look at when we determine need of new services is the social determinants of health for our patients, such as difficulty obtaining transportation to appointments,” explained Yoxall. “If we have a high volume of patients that live on the East side or perhaps the West side we consider what the specific services are that we can incorporate into those locations to help overcome these barriers. For instance, one of the things we’re working on right now is expanding our dental practice by incorporating access to our dental services at our East location. We’re currently working with the NYS Department of Health to put in three dental operatories for both a dentist and a dental hygienist, where we can offer full-service dental care including panoramic x-rays for our patients. This is just one of the many important ways that we continue to provide high-quality services and promote health equity right here in our community.”

Fostering Connections in the Community

Another strategy the team at SCH continues to explore to provide needed health services to impoverished CNY communities is forging deeper connections with other resources in the area. By identifying ways the health center can partner with other community-based organizations and agencies, the team at SCH is making large strides in advocating for patient needs, especially when patients themselves may not be aware of the resources available to them.

“One of the things Dr. Reid has

 been a huge proponent of over the last two and a half years is connecting the needs of patients in the community with related services that are available. Onondaga County is a very resource-rich community in terms of services, but connecting patients with those services can often be challenging. To bridge this gap, we’ve been working with the

 Onondaga County Health Department, outside agencies and other offices and sharing our story about what we’re doing for patients and what their needs are so we can better connect them with the care that they truly need,” said Yoxall.

SCH’s partnership and collaboration with other community-based organizations is taking shape in several different areas of health care. To help address food insecurity, SCH is working with the CNY Food Bank to distribute 200 boxes of fresh produce each month, available to anyone in the community. A collaboration with Food Access Healthy Neighborhoods Now, or FAHNN, as well as the Mary Nelson Program, will also help SCH alleviate the food desert in Central New York. Additionally, SCH will be partnering with Brady Market to offer a café space in the new building at 930 South Salina Street, offering fresh, healthy food options for patients and staff alike.

The team at SCH also has plans to partner with Catholic Charities, the Rescue Mission and Dr. David Lehmann from Upstate Hospital to help provide quality health care to the sheltered and unsheltered homeless population in Syracuse.

“Dr. Lehmann makes house calls to the homeless and he reached out to me to help identify additional ways the homeless population can receive continued health care,” stated Reid. “We’ve developed a pathway where Dr. Lehmann sees them and can refer them to our Quick Care locations where we can do an initial blood screening, tests and vaccines before they even see a primary care provider. The goal is to get them in to a primary care provider for follow up, which includes dental care and behavioral health. We’re going to work with Catholic Charities and the Rescue Mission to accomplish this goal and provide needed services right on the spot.”

Recruitment, Teamwork and Company Culture

According to Reid, one of the most important requirements for achieving the goals laid out in 2024 and beyond is a strong, supportive leadership team. “Without my staff and clinical teams, there’s no way I’d be able to go after my vision for the organization,” Reid said.

Certainly, this emphasis on teamwork also resonates with the executive leadership team at SCH. “What I enjoy most about working at Syracuse Community Health is our team,” said Yoxall. “Everyone at SCH has a shared vision to provide high-quality care to improve health outcomes for the patients we serve. The employees at SCH are constantly going above and beyond to meet the needs of our patients and organization.”

To continue building on the company culture and attracting top talent from the community, the team at SCH has needed to reach out to local educational institutions to get the word out about all that the health center has to offer. According to Yoxall, many in the community may not understand that students who rotate through SCH will be able to learn about podiatry, eye care, family medicine, pediatrics and more.

“Dr. Reid and I have been doing a lot of outreach in the community and connecting with local community colleges as well as Henninger High School to help explain the type of work that we do. Many people who live in the city of Syracuse may not have even heard of the health center, or they’ve heard of it and thought of it only as a free clinic. As a result, when they see a job posting from SCH they may not understand the scope and the extent of the services we provide here. We’ve been working and partnering with both the nursing program and medical assistant program at Onondaga Community College, sharing our story about everything we’ve accomplished, the services that we provide and the amazing experience we can provide to students,” stated Yoxall.

Continued Focus on Patients’ Needs First

With the team aligned on strategies for making material improvements in healthcare access in the community, the coming years will certainly be full of change and growth at SCH. Alongside new Quick Care locations, planned building expansions include a new clinic on the Onondaga Community College campus and enhancements to the original SCH location at 819 South Salina Street. These developments will further improve patient experience as demonstrated by the brand-new, state-of-the-art location at 930 South Salina Street that recently opened in December of 2023.

As exemplified by the beautiful new building, SCH continues to expand and offer more and more state-of-the-art services for patients in settings that are truly reflective of the high-quality care the organization offers. For Milligan, the new building demonstrates how patients’ needs will always be at the very center of the mission at SCH.

“We are so proud of our new 930 building,” Milligan said. “It was specifically designed to enhance the patient’s experience. The natural lighting, open spaces and easy transitions between care areas really improve the patient flow and experience.”

Whether at the new building, the Quick Care centers, in Syracuse elementary schools or in the streets of the community, the team at SCH will continue to focus on achieving healthcare equity for all.

“I really feel that if we’re going to close the healthcare gap, we can’t sit back and wait,” explained Reid. “We’re going to make the necessary moves to close the gap and bring high-quality healthcare to those who need it the most. We’re going to continue to advocate for our patients and help them overcome barriers to the excellent health care that they deserve.”

Impact of Megaprojects

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Earl R. Hall, Executive Director

Considering the multi-year, $2.5 billion Route 81 project, and the highly anticipated start of Micron’s 20-year, $100 billion semi-conductor chip fabrication project in Clay, the media and elected officials have used the word “megaprojects”.   These unusual megaprojects garner great interest and typically lead to questions about the impact of these projects on society.  As a result, people have asked me about how such megaprojects impact the construction industry in central New York.

To begin with, it is important to understand that the construction ecosystem, although resilient, is fragile.  The tripartite balance that exists between project owners, contractors and labor has never experienced projects of this magnitude happening at once, so forecasting the impact on the industry may be difficult.  Making assumptions is what a good actuary does to assist in predicting the future, so I will make assumptions to provide better context.

Assumption #1 – Labor

The lack of labor continues to plague the industry, which in some cases may result in a contractor’s inability to complete a project on time.  Failure to complete projects on time may contractually lead to liquidated damages.  Delivering labor to Micron will certainly be a challenge as the regional industry today does not have such capacity; however, one can assume much of the labor for Micron will be imported from other regions of the United States.  As a result, I do anticipate the project will have the labor force necessary to achieve project delivery requirements, but certainly there will be labor challenges.  Moreover, regional contractors serving traditional clients, such as hospitals, universities, industrial and institutional facilities may not be materially impacted to the extent of not having available labor.

Assumption #2 – Project Schedules

Project owners’ delivery schedules are becoming increasingly aggressive, both in the public and private sectors.  Often the contractor’s ability to achieve the schedule is dependent upon a wide variety of items but having adequate labor and timely delivery of construction material, such as concrete, is essential to achieving schedule goals.  Although much of the labor on the megaprojects may come from out of state, one should assume meeting project owners’ future aggressive schedules may be more challenging due to the potential labor pressures associated with megaprojects.

Assumption #3 – Wage Growth

Anticipating future regional wage growth is paramount for construction contractors and project owners alike.  How will the megaprojects impact future wage growth?  Over the past two years, construction industry employees have enjoyed advantageous conditions leading to above average wage growth.  I expect this environment to continue, with wage adjustments far exceeding inflation.  Additionally, many employers are rewarding their best employees with additional compensation, benefits and other incentives to remain with their employer.

Forecasting future regional wage growth will be difficult as it remains unknown the incentives required to attract labor to Micron’s project.  While Micron’s 20-year project has a Project Labor Agreement which contains the unions’ wages and fringe benefit schedules, I anticipate such wage schedules will be the “minimum wage” requirement for this project.

“What does this all mean?”

The most asked question is, “How will these megaprojects impact other project owners?”  This question is most difficult to answer; however, one can assume:

  • Continued exceptional craftsmanship from labor.
  • Continued exceptional project management, execution and delivery from construction industry employers.
  • Renewed focus on the tripartite relationships.
  • Increased cost of labor and associated increased cost of construction project budgets.
  • Less compressed project delivery schedules.
  • Billions of dollars in new construction spending for new projects surrounding and supporting these megaprojects.
  • Continued labor shortages.
  • Enhanced Career and Technical Education programs in public schools.
  • Increased construction in the housing market.
  • A revitalization of the central New York region.

These two megaprojects, along with additional capital investments from both the public and private sectors, will directly fuel the incredible economic development central New York will experience over the next decade.  It will be essential that the construction industry, and society in general, take advantage of these opportunities and overcome any of the barriers associated with change. 

Empowering Central New York: The Crucial Role of Manufacturing

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By: James A. D’Agostino, CEO, MEP Center Director

Central New York is a region rich in history, culture, and natural beauty. Amidst the picturesque landscapes and vibrant communities, manufacturing stands as a cornerstone of the local economy, driving growth, innovation, and opportunity. As we explore the unique regional economic landscape, one quickly sees that manufacturing plays a pivotal role in shaping our prosperity. And, with the arrival of Micron Technology and its supply chain, the influence of manufacturing will only continue to grow.

Central New York’s manufacturing sector serves as a vital source of employment, providing jobs that sustain numerous families and communities. From the production of aerospace and defense components to advanced medical devices and beyond, manufacturers in Central New York offer a diverse array of career opportunities. These jobs not only offer stability and some of the most competitive wages in the area, but they also foster a sense of pride in contributing to the region’s economic vitality. Manufacturing also fuels a culture of innovation and technological advancement within the region. Central New York boasts a rich ecosystem of research institutions that collaborate closely with manufacturers in a multitude of industries to drive innovation forward. Whether it’s developing cutting-edge materials, refining manufacturing processes, or pioneering new technologies, Central New York’s manufacturers are at the forefront of innovation, propelling the region into the future.

Manufacturing also serves as a magnet for investment and talent, bolstering Central New York’s economic development efforts. The region’s strategic location, robust infrastructure, and skilled workforce make it an attractive destination for businesses looking to establish or expand their operations. From multinational corporations to homegrown startups, manufacturers in Central New York benefit from a supportive business environment that fosters growth and prosperity. Importantly, manufacturing plays a crucial role in driving exports and enhancing Central New York’s competitiveness in the global marketplace. The region’s manufacturers produce a wide range of goods, from precision machinery to specialty foods, that are in demand both domestically and internationally. By exporting goods to markets around the world, Central New York’s manufacturers not only generate revenue but also raise the profile of the region as a hub of innovation and quality craftsmanship.

Additionally, manufacturing contributes to Central New York’s resilience and self-sufficiency, particularly in times of crisis. The COVID-19 pandemic underscored the importance of localized supply chains and the need for regions to be self-reliant. Central New York’s manufacturing sector rose to the challenge, pivoting production to meet the urgent needs of healthcare providers, essential workers, and the community at large. This agility and adaptability demonstrate the inherent strength of Central New York’s manufacturing base and its ability to weather adversity. Manufacturing continues to play a vital role in developing the skilled workforce that the region needs to thrive in the 21st century economy. Through partnerships with educational institutions, apprenticeship programs, and workforce development initiatives, manufacturers in Central New York are investing in the next generation of talent. By equipping individuals with the technical skills and knowledge needed to succeed in modern manufacturing settings, Central New York is ensuring that its workforce remains competitive and resilient.

As most of us locals already know, manufacturing is not just an industry in Central New York; it is a driving force behind the region’s prosperity and resilience. From creating jobs and fostering innovation to driving exports and empowering communities, manufacturing touches every aspect of life in Central New York. As the region looks to the future, including the exciting arrival of Micron Technology, continued investments in manufacturing will be essential to building an even more vibrant and sustainable economy that benefits all of us. By harnessing the power of manufacturing, Central New York can unlock new opportunities, spur innovation, and chart a course towards an even brighter tomorrow.

TDO is a consulting and training organization based in Liverpool, New York. Our mission is to grow the local economy by helping Central New York manufacturers and technology companies drive operational excellence and cultural transformation to reach their full potential. TDO’s support of the local mission generated $265 million in economic impacts in the last contract period supporting jobs, investments, cost savings, and profitable growth. If you are a small or mid-size manufacturer and would like to talk further, TDO’s team is fully certified to help. Reach out today to learn more and schedule a free consultation.

Do You Know Why You Buy The Insurance You Buy?

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This is a very valid question given that very often when we speak with executives, they question what insurance coverage they have—and why they need it at all. We often buy insurance simply because that is what we have done in the past. In other cases, it may be because someone such as a lender or customer is requiring it. It’s important to understand that insurance is meant to finance risk. As such, it is a valuable exercise to consider the risks you want to mitigate with insurance and make sure you are purchasing the coverage that will help you a achieve that goal.

A simple example: Property Insurance is often purchased to replace the building, and Business Interruption Insurance to pay for lost profits while the building is being rebuilt after a disaster occurs. However, for most companies, the real goal is to retain their clients that might leave if they cannot be provided with services or products while facilities are being rebuilt. Therefore, a more focused approach is to work out a plan to continue providing your services or products during your rebuilding process, and purchase Extra Expense coverage to cover the extra expenses incurred to implement this plan.

Business leaders must also consider the ramifications of expanding litigation and legal system abuse. Unfortunately, this increases the chances of being sued even if you are not at fault.  Defending these cases can be expensive. Insurance is a strategy to pay for the cost of defense as well as any damages for which you may be liable.

Flood is another example of risk that is changing so we may need to alter our normal response to planning for flood as well as how we think about purchasing this coverage. Flood is typically only purchased in high-hazard flood zones like low areas near rivers and lakes. The world today is dominated by short periods of extreme rainfall that creates run-off and short-term flooding in areas that normally do not flood. Many more people are at risk that were never at risk before.  Questions to ask:  Are you in the path of rainwater run-off? Do you have methods of reducing the impact of flood? Should you purchase the Flood Insurance coverage?

Many businesses rely on controlled environments that, if they fail, can create loss. Some examples include cleanrooms that can take months to recertify if the environmental controls systems fail; or crop/food/livestock storage areas in which the food or animal could perish if the environmental controls systems fail. The leading risk for environmental control systems failure is human or computer error. Both are excluded from standard business interruption insurance. An insurance solution is to seek coverage that is customized to include these causes of loss, thereby protecting those specific risks.

Most liability insurance is based upon providing coverage when you cause property damage or bodily injury. But what if you cause financial harm only? That is where coverage such as Professional Liability and Directors and Officers coverage can be an important consideration.

Insurance names are not always what they appear. The name General Liability Insurance would suggest it covers General Liability. That is not the case. Many things are specifically excluded in this policy. It is important to understand if these exclusions are relevant to you and your business. For example, imagine a business that owned a truck that was used solely on its property. Owners often believe they do not need to purchase Automobile Liability coverage because their vehicle is not being registered and used on public roads. Many GL policies exclude the liability associated with vehicles that are meant to be driven on public roads. So, if an employee were to accidentally run over someone on the property, the loss could be excluded on the GL policy.

According to FEMA, 40 percent of businesses never reopen after disasters and another 25 percent fail within one year. The U.S. Small Business Administration found that over 90% of companies fail within two years of being hit by a disaster. These are truly alarming statistics that imply that companies can do better at risk management planning.

No matter how knowledgeable and experienced your insurance broker is they cannot provide you with the most effective risk management solutions without working closely with you to understand the specific risks associated with your business, your plans to mitigate that risk and your priorities in financing the risk either directly or with insurance.

Lippes Mathias LLP Combines with Syracuse-Based Health Care Firm CCBLaw

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Lippes Mathias LLP Combines with Syracuse-Based Health Care Firm CCBLaw, Expands Lippes’ National Footprint to Include Every Major City in New York. The combination creates one of the largest New York health care teams outside of New York City.

Lippes Mathias today announced it has combined with CCBLaw, a Syracuse-based law firm with a respected national reputation for providing innovative legal services to clients in the areas of health care, business, labor and employment and real estate. Eleven attorneys, with two set to be admitted on June 17, as well as eight staff members, will join Lippes Mathias as part of the move.

With this combination, Lippes Mathias now has 197 total attorneys with 158 staff and 15 offices across the country.

“When we execute our growth vision, we continue to emphasize the right cultural synergies, and the match with CCBLaw is no exception,” Kevin J. Cross, Lippes Mathias’ managing partner and chairman, said. “The new Lippes attorneys bring exceptional experience and capabilities that pair perfectly with our health care team—creating one of the largest health care practices outside of New York City. I’m proud to note that this expansion also marks a significant milestone in Lippes Mathias’ growth story as our national footprint of 15 locations now reaches every major New York market.”

CCBLaw, one of only two Central New York law firms ranked Metro Tier I in health care law by Best Law Firms, provides legal and consulting services to health care clients, including group medical practices, private practice physicians, dentists, and allied health professionals, hospitals, ACOs, physician organizations, independent practice associations, ambulatory surgery centers, and other facilities throughout the United States.

“This is the right move at the right time, compounding value and opportunity for both groups,” Michael J. Compagni, former CCBLaw managing member and new Syracuse office leader, said. “Our entire team is excited to join Lippes Mathias—well-known and regarded for its people-first approach to the business of law. Lippes’ emphasis on culture creates an environment where attorneys and staff thrive. We’re thrilled to be a part of a growing firm that is doing it differently.”


Marc S. Beckman, a founding member of CCBLaw, will co-lead Lippes Mathias’ health care practice team alongside Brigid M. Maloney, partner, Lippes Mathias.

“Since we have been representing so many practices with respect to private equity-backed transactions in the health care field, we wanted to align ourselves with a firm such as Lippes that will benefit our clients by allowing us to bring greater breadth and depth to our team,” Beckman said. “Our footprint has always been larger than Central New York, and together with the diverse practice areas, resources, infrastructure, and geographical footprint of Lippes, this mutually beneficial integration allows us to provide a broader scope of legal services to our clients long into the future.”

Former CCBLaw attorneys are nationally recognized for their extensive background in complex federal regulatory and statutory issues, including the federal physician self-referral prohibition or Stark regulations, fraud and abuse and anti-kickback laws, professional license defense as well as compliance and repayment actions involving both entitlement programs and third-party payors. The team regularly handles mergers and acquisitions of professional practices, establishment of ambulatory surgical centers, development of joint ventures among healthcare providers (including both private practices and hospital systems), development and maintenance of large group practices, space sharing arrangements, employment matters including litigation and employee leases, professional services agreements, exclusive provider agreements, and telehealth arrangements. On numerous occasions, the team has successfully defended clients in government and third-party payor audits and investigations and in settlement negotiations of reimbursement issues with Medicare, Medicaid, TRICARE, and all other third-party payors.

Former CCBLaw attorneys and staff will continue to work out of their office space at 507 Plum St. in Syracuse. For more information about the combination or to learn more about Lippes Mathias’ health care services, call (716) 853-5100 or visit lippes.com.               

About Lippes Mathias LLP
Lippes Mathias is a full-service law firm with nearly 200 attorneys serving clients regionally, nationally, and internationally. With offices in Buffalo, Clarence, Albany, Long Island, New York, Rochester, Saratoga Springs and Syracuse, N.Y.; Greater Toronto Area; Chicago, Ill.; Jacksonville, Fla.; Cleveland, Ohio; San Antonio, Texas; Oklahoma City, Okla. and Washington, D.C., the firm represents publicly and privately owned companies, private equity and venture capital firms, real estate developers, financial institutions, municipalities, governmental entities, and individuals.

The Importance of Culture in Health Care

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Kathy Ruscitto

A few months ago I had the opportunity to hear two physicians talk about their careers as they received recognition. Dr. Kara Kort, a surgeon, and Dr. James Tucker, a family physician.

Both are esteemed by their patients and colleagues. They are passionate about the profession they chose and the work they do as physicians and leaders in their disciplines.

As they spoke, the words, tone, and tears they shared all spoke to service to others. They chose medicine to help people.

In his remarks Dr. Tucker thanked to his patients for letting him be part of their villages, lives and families.

Dr. Kort talked about how being vulnerable in her own life experiences , enabled her to help patients at critical points in their lives.

Health professionals often choose their career to contribute to improving  the  health of others. Clinicians  value their  professional expertise, training, the ability to give their patients high quality care , and collegiality across a health care system.

The reality is they are facing complex systems that require automation, long hours to balance their complex demands, and frustrated patients with payer barriers. We knew we were going to face a large segment of retirements across physicians and nurses, COVID accelerated those trends. The current system feels broken to many clinicians and patients.

In an article in Medscape, Drs. Toprol, Verghese and Pearl discuss Physicians’ roles in accelerating  system changes to improve patient care. They all suggest some of the challenge is clinician resistance to letting go of old culture, and adopting new more efficient options like telemedicine. Changes that allow patient access and follow up during workforce shortages is better than delayed, or no care at all.

Other experts feel the most important investment we can  make is a shift away from fee for service care to value based care, aligning incentives around patient outcomes. 

While these examples may be part of structural system redesign, shared culture is equally important.

Medicine is a team sport. It requires collaboration across a spectrum of disciplines, workforces, and payers. We must listen and value the input of the health professionals if we are to rebuild our health systems culture and workforce to continue to provide high quality patient centered care. System redesign alone, in the absence of shared culture will not resolve our issues.

Right care, right time, right place, right cost is often included in marketing and headlines these days. The underlying assumption being we have a shared culture of achieving this care. 

As you plan retreats , strategy and future goal sessions, spend time discussing culture and clinician input into our future in health care. It is the most important thing we need to do to meet our challenges.

Resources:

Healing the Professional Culture of Medicine – Mayo Clinic Proceedings

To End Burnout, Doctors Must Change the Culture of Medicine

https://hbr.org/2022/09/5-steps-to-restore-trust-in-u-s-health-care