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Perils of Joint Bank Accounts in Estate Planning

Posted: July 17th, 2019

Many of my senior clients want to be able to transfer their assets to their children in the simplest and quickest way possible when the time comes. Often, people think a joint account is an easy and inexpensive way to avoid probate by automatically passing property to the joint owner at death. Unfortunately, estate planning usually isn’t as simple as opening a joint account. While there are benefits, there are also many risks.

With a joint bank account, multiple people can be granted access to the money in the account. Primarily this type of bank account is used by married couples, civil partners, and housemates as the account holders can pay into the account, withdraw cash, pay bills, or write checks.

I often tell my clients that there are two scenarios in which a joint account typically works well (but not even these are risk-free). First, if you have one child and wish for everything to go to him or her, a joint account could provide a convenient succession path. Second, a joint checking account could make sense if you wish for your children to pay only your customary bills and to have access to a small portion of your funds in the event of death – since these working accounts don’t usually consist of the bulk of your estate.

Sounds pretty simple so far. So what are the risks?

Consider you create a joint account by adding your eldest child to the account. Don’t assume that he or she would consult with your other children every time before taking money from your account. There isn’t even a guarantee that your child will handle your money exactly in the way you would prefer. Too often, I have seen children (from even the closest of families) who are caring for their parents take money in payment without first making sure that their siblings are all on board. Even worse, they may use the money for their own purposes.

Another risk, particularly if you have multiple children, is that there may end up an inequitable distribution of your money upon your death. You might expect all your children to share equally, but there is no guarantee. Adding multiple children to a joint account might seem like a way to avoid this risk, but having several different children on different accounts is nearly impossible to manage and usually just multiplies the risk.

In addition, once a child is added on a joint bank account, the money becomes an asset for both parties. I know that sounds obvious, but I have to remind my clients that if the child comes across creditor or legal problems, the creditor could garnish the entire bank account. In other words, your account may be frozen or lose funds. You may be thinking that your child doesn’t have creditor problems, but what if he or she gets into a car accident or is on the receiving end of a lawsuit? These unpredictable instances only further the cons of joint bank accounts.

Moreover, I advise my clients to consider the extremes. What would happen if the child passed away before the parent? A grandchild could be left with only a fraction of what they were supposed to get and what was a non-probate asset would become a probate asset – divided up as per the Will.

Fortunately, there are simple ways to avoid these undesirable outcomes and still allow someone else to have access to your funds. Wills, revocable trusts and durable powers of attorney are great planning tools that minimize the risk. They specify that your estate will be distributed according to your wishes and provide for a simple asset management in the event of your incapacity.

If you or anyone you know is considering a joint account or is in the process of estate planning, please feel free to contact us for assistance.

Estate Planning and Digital Assets

Posted: July 1st, 2019

By: Martin Glass, Esq. email

Tags: elder law, estate planning, technology

When you consider your estate planning, you might think the existence of a simple Will is all you need to transfer of all your assets. If this is the case, you are overlooking a vital piece of your property: digital assets.

In today’s digital world, estate planning is becoming increasingly complicated. Say you take a picture using your phone and store the image on the memory card. If you give all of your tangible personal property to your heirs, which would include your phone (and therefore the memory card), does that include all the files on that card? What if you posted the picture on Facebook or some other media; would you own the rights to the picture itself, or would Facebook? This complexity is not only present when it comes to the ownership of images, but with all sorts of digital assets: Word documents, electronic mail, online access to bank accounts, social media accounts; the list goes on.

In the past, the service providers of these digital assets controlled who would have access to your assets after you pass. Consequently, personal representatives faced conflicts when trying to administer a decedent’s estate.

Currently, New York laws define which digital assets are considered digital content and restrict personal representatives from receiving automatic access to such information. For example, a personal representative can access your digital calendar more easily than your emails, because while your emails are considered content, your calendar is not. Although these regulations are in effort to protect your personal privacy, they could restrict anyone from accessing your digital assets, and your online files could become lost.

To protect your digital assets and ensure that a personal representative will not face challenges when accessing them, it is crucial that you discuss the assets in your Will while explicitly granting access of all online accounts to the designated person. Prepare a list of all your usernames and passwords, and keep it as current as possible, so that in the event of your death, the person in charge of your estate has access.

Too often do people fail to recognize the necessity of properly passing on the right to their digital assets. To make sure this doesn’t happen to you, plan your estate with the help of a qualified professional. To discuss how to best protect your assets, please contact us.

Intellectual Property Concerns for Businesses Using Social Media

Posted: June 24th, 2019

Tags: intellectual property, technology

The internet has become a powerful presence in our lives, especially in how we use it to communicate. Social media in the form of social networking is now included in millions of Americans’ daily activities, is integral to how most of us now search for and obtain jobs, and even influences how we conduct business. Consequently, it has become commonplace for businesses to use various social media platforms to conduct polls, contests or sweepstakes among employees, interact with customers and potential customers, and spread brand awareness. Users can and do copy and paste pictures, songs, videos, documents, or even links to webpages onto a business’s profile to share via social media.

Different social medial platforms are available to help companies manage these various online activities, making them both simple and quick to organize for any company’s marketing department. Furthermore, social media marketing is an easy, cost-effective and wide-ranging way for businesses to reach new customers.

However, intentionally or unintentionally associating your business with the intellectual property of another may bring about liability for trademark, copyright, and other types of intellectual property infringement. Below is a guide to intellectual property issues businesses should consider.

What constitutes intellectual property infringement on a social media platform?

Several types of infringement can result from associating your business with the intellectual property of another. There can be trademark infringement if a company requests user-generated content from their employees which includes photos or videos and those photos or videos contain third-party trademarks in the background, on signage, or on clothing (i.e., the Nike logo). This can arguably lead to a false association claim by suggesting that the trademark owner supports the company-sponsored event. If a trademark is used in a way that tarnishes the reputation of the trademark owner (i.e., being associated with drugs, pornography and other illegal actions), there could be potential liability for trademark dilution. (This explains why clothing logos are sometimes blurred out on TV shows.)

Copyright laws can also be infringed upon if user-generated content contains copyrighted material such as art, music, photos, or quotes without proper referencing. Unless the user creates their content, obtains permission from the copyright owner, or their content is in the public domain, direct copyright infringement may result. Although a company might successfully argue that any unauthorized content was either “de minimis” (small or brief enough so as to be insignificant) or “fair use” (the promotion of freedom of expression by permitting the unlicensed use of copyright-protected works in certain circumstances), it is far easier for a company to simply prevent any claims of infringement altogether.

The right of publicity can also be violated when social media accounts tied to a particular business publish the name or likeness of a person for commercial purposes, without obtaining their permission. This can become relevant if a video or photo contest submission features individuals other than the employee who entered the contest. Depending on the nature of the social media site, an argument can be made that the submission was not being used for commercial purposes; however, a sponsor or business may have liability if the video or photo is used in an advertising campaign, on television, or in a print ad.

What can your business do to mitigate liability for intellectual property infringement?

Staying up to date on intellectual property laws is extremely important in this era of social media. Intellectual property law and social media is an intersection of emerging concern for lawmakers, lawyers, business owners, and consumers alike, because the existing laws were written prior to the mainstream use of social media. Therefore, staying abreast of all current developments is vital in making sure your business remains compliant with the law.

There are also some specific ways your business can avoid potential intellectual property liability. All online contests, sweepstakes, and polls must contain official entry rules detailing: the exact nature of the relationship between business, social media platform and entrants; eligibility for entry; the steps that need to be taken to enter; and the prizes available to be won. This creates a limited “contract” and specifies that any videos or pictures will not be used for commercial purposes. Furthermore, clear content submission guidelines should be provided which include general prohibition of using third-party materials, or depicting any activity which would violate the law, is obscene, lewd, vulgar or defamatory, involves violence, drugs or alcohol, is dangerous, is disparaging to competitors, or is in any other way inappropriate. (This list is not exhaustive; if your business is promoting a contest or sweepstakes, please contact us to discuss the official rules to avoid running afoul of gambling laws, which vary by state.)

If a business wishes to use social media submissions in an advertising campaign, the rules for entry submission should clearly state what would violate copyright and trademark laws or the company should obtain copyright ownership interest, prior permission or a perpetual license for use. The company should also examine the submitted social media content prior to any advertising, promotional or other commercial use for any images or videos that may contain third-party celebrities, famous logos, quotations not in the public domain, or anything else which might require consent and release to use.

Due to the present gray areas in intellectual property law, and with market competition requiring businesses to protect their brand image, companies should be vigilant toward any potential trademark, copyright, patent, right of publicity or privacy, or trade secrets infringements, and be careful not to infringe on the rights of others, especially on social media platforms. For your specific intellectual property concerns, please contact our office.

Long Island’s Aerospace Industry: 50 Years on from Apollo 11

Posted: June 21st, 2019

Tags: technology

By Michelle Toscano

This year marks the 50^th anniversary of NASA’s Apollo 11 moon landing, an event of particular significance for Long Islanders. Astronaut Neil Armstrong’s voice from the surface of the moon saying, “That’s one small step for man, one giant leap for mankind,” perfectly sums up the historic and extraordinary quest of the Apollo program “to boldly go where no man has gone before.” It was a quintessentially American challenge of discovery and exploration, an unparalleled feat of engineering and physics, the advent of practical computer technology and software programming…and Long Island was at the heart of it all.

In 1962, at the height of the space race and NASA’s desperate push to land Americans on the moon, Bethpage-based Grumman Aircraft Engineering Corp. won the NASA contract to design and construct the Lunar Excursion Module (LEM) for the Apollo program. The LEM was the strangely-shaped spacecraft which actually landed on the lunar surface, and from which Neil Armstrong took his first historic step. The lucrative 350 million-dollar NASA contract brought immediate and profound effects to Long Island, creating thousands of new jobs and a sense of purpose and pride to Grumman employees. Yet this wasn’t the first time Long Island was at the forefront of the aerospace industry.

Long Island has long been known for its importance in the history of aviation and flight. Called the Cradle of Aviation for its numerous air fields and aircraft production facilities, particularly during World War II, Long Island housed training centers for pilots, was the home of three major airfields – including Roosevelt Field where Charles Lindbergh departed from in his trans-Atlantic flight aboard the Spirit of St. Louis in 1927, and Curtiss Field where Amelia Earhart and other women founded the International Organization of Women Pilots in 1929 – and during the “Golden Age” of aviation (1918-1938), an astounding 20 aircraft manufacturers alone were established on Long Island. By 1945, over 100,000 people on Long Island worked in the aircraft industry and today over 240 companies on Long Island still work in the aerospace industry.

“The known limits of flight were expanded regularly in the skies over Long Island” (article here) and so it is no surprise that when Americans turned to spaceflight, the unknown frontier, it was Long Island’s aviators who led the way. The LEM, which was designed and created entirely on Long Island, was the first manned spacecraft to operate wholly in the airless vacuum of space and remains, to this day, the only crewed vehicle to land anywhere beyond Earth. It was used throughout the Apollo program and remains the jewel in Grumman’s resume.

It might not have “made the Kessel Run in less than twelve parsecs” like Han Solo’s Millennium Falcon, but it was the astronauts’ “only hope” during that fateful Apollo 13 mission, providing life support and propulsion for the crew in order to return them safely to Earth, and was the most reliable component of the entire, combined Apollo and Saturn-rocket space vehicle throughout the Apollo program. It was furthermore the only part of the spacecraft to never have a systems, engine or component problem which could not be resolved in time to prevent aborting a landing mission.

Fifty years on from Apollo 11, Long Islanders can take pride in the extraordinary achievements of their neighbors and forebearers and honor their commitment to pushing back the boundaries of the unknown as pioneers in the field of aerospace.

Quotes are attributed to Neil Armstrong, Star Trek, Cradle of Aviation Museum and Star Wars.

Michelle Toscano is a paralegal and legal researcher at CMM. She can be reached at mtoscano@cmmllp.com.

Alure Home Improvements

Posted: May 28th, 2019

On a recent Saturday afternoon, Alure Home Improvements President & CEO Sal Ferro was in a customer’s house in Lindenhurst, examining an electric panel. Alure had just completed a renovation, and the customer had taken to social media to complain about an electrical issue. While no business is immune to the occasional customer complaint, the way the business handles that complaint says everything about their approach to customer service. Ferro personally reached out to the customer and asked if he could come see the problem for himself. He took a look, called a technician to fix it that day, and now has a customer for life – one whose social media complaints turned into raves once he experienced Ferro’s integrity and personal investment in making things right.

In an industry where contractors come and go, Alure – a full-service remodeling company that has helped homeowners turn houses into dream homes since 1946 – has thrived. “We believe in a raving fan approach to customer service,” says Ferro. The approach works: powered by Alure’s philanthropic focus and emphasis on company culture, Alure’s customer-centric approach has driven the company’s success for over 70 years. CMM Managing Partner Joe Campolo recently visited Ferro, his friend and client, at Alure’s state-of-the-art showroom to discuss leadership philosophies, how to create raving fans out of clients and staff, and strategies to succeed in the often fickle Long Island market.

Alure operates three divisions – exterior, alterations, and kitchen/bath – serving Nassau and Suffolk Counties and the metropolitan area out of its showroom in East Meadow and a corporate office, warehouse and call center in Commack. Alure’s sales approach is based on education first. “By educating a client and focusing on their agenda, not our own, we’re providing a service. We take the time to understand what the client wants, we give them choices, and we design and engineer the project to meet their budget.”

The showroom is therefore an integral part of Alure’s business model, giving customers the ability to see, touch, and feel before installing at home. The displays are frequently updated to reflect current trends while also offering an array of options (“we have just as much tile as a tile store!” Ferro says), and customers can choose from a custom-designed project to Alure’s “Extreme” five-day bathroom/10-day kitchen remodel to anything in between. Ferro is also a fan of Ken Blanchard’s Raving Fans: A Revolutionary Approach to Customer Service, and has even taught seminars and training based on the book’s method of turning customer service into a competitive advantage. Not many home remodeling companies have a Customer’s Bill of Rights.

This approach explains how Alure has withstood the inevitable ups and downs of seven decades of business. “Alure is the secure, best choice for home remodeling – great quality, done timely and in budget,” Ferro says. “Our company ethics, morals, and honor are part of every job.”

As President & CEO, Ferro sets Alure’s vision, then puts the pieces in place to execute – but is clear that it’s his team who executes on that vision. He empowers his management team to make decisions, meeting with them and the entire staff regularly to help them “see the forest through the trees.” He works to set the company culture from the top. Alure’s 200-member strong team enjoys remarkable longevity – staff who happened to walk by at the showroom that day had been there for 18 years, 15 years, 12 years – and were excited to talk about it. “Sal has built an environment where people want to come to work and stand behind their work,” explains Seth Selesnow, Alure’s Director of Marketing & Public Relations, who has been with the company since 2003. “Alure understands the importance of investing in both employees and clients – our internal and external customers.”

Ferro therefore interviews every single potential hire himself after his management team has recommended a candidate. “I consider whether this person will interact well with our team,” Ferro explains. With its focus on company culture, Alure strives to show employees how important and valued they are, and small gestures of appreciation go a long way to build camaraderie. At a recent “Festive Friday” luncheon, for example, the Alure team enjoyed a company cornhole competition along with other games, catered by Felico’s sausage truck.

Philanthropy is also a major component of Alure’s DNA. Alure performed eight renovations for deserving families on the hit show “Extreme Makeover: Home Edition” and supports countless nonprofits on Long Island and in the region, including the Interfaith Nutrition Network, The Clark Gillies Foundation, Family Service League, Long Island Fight for Charity, the Farmingdale College Foundation, and many more. Last year Ferro established the Ferro Foundation, which provides college scholarships to promising students, as well as a home care program dedicated to senior citizens and veterans. “Philanthropy is critical. Even if you can’t afford to do something monetarily, you can do something with your time.”

As Alure heads into its eighth decade in business, Ferro is relentlessly focused on growing and evolving as the market changes. “The Long Island market is unique,” Ferro says. “If you’re not growing, you’re dying.” The company’s enviable organic growth through the addition of new products and services each year shows that Ferro’s vision is working and thriving on Long Island. “Long Island is an incredible place to be – there’s tremendous opportunity,” Ferro says. “It’s close to the city, we have beaches, research centers, great universities – you name it, Long Island has it. It’s a great place to do business.”

Learn more about Alure at https://www.alure.com/.

Sal Ferro shows Joe Campolo some of Alure’s options for countertops.

Alure has every option for the modern bathroom, from faucets to shower heads.

The showroom is an integral part of Alure’s business model, giving customers the ability to see, touch, and feel before installing at home.

The Alure team gets together for some fun team bonding with games like cornhole and Jenga at a recent “Festive Friday” luncheon.

You Can’t Hide Your Lying Eyes: Body Language in Negotiation

Posted: May 23rd, 2019

By: Joe Campolo, Esq. email

Tags: negotiation

Imagine you walk into a bar and see a couple that’s clearly on a first date. You can almost always tell if they’re interested in each other, even if you can’t hear the conversation. If he’s leaning forward and making eye contact, it’s probably going well, but if she’s constantly checking her watch, the feelings might not be mutual. Body language is an important way for us to pick up on emotions.

Though we like to think we base our judgments on character, rather than making assumptions on appearance, it’s simply untrue. We are hardwired to notice posture, facial expressions, tone of voice, and more, and all of it helps us form an opinion. So no matter how careful you are with your words at the negotiation table, you could be indicating dissent or frustration in how you hold your body. Consider these tips to empower you for your next negotiation.

Your eyes. The saying that you listen more to a person with your eyes than your ears is critical to a negotiation. The most important step to a successful negotiation is a party feeling that they have truly been heard, and that simply won’t happen if you are multitasking or playing with your phone during the conversation. Put your phone away and make sure that you maintain comfortable eye contact (in a non-creepy way).

Your hands. When you’re not thinking about it, you may not realize what you’re conveying to the opposing party through your hands. Drumming your fingers on the table signals that you’re impatient or even bored, and may send the message that you don’t consider the matter important or don’t value what your adversary is saying. Fidgeting, such as playing with a pen or adjusting your collar repeatedly, is considered a hallmark of nerves. That’s not something you want to convey in a negotiation. Try to still your hands so that you come across calm and collected.

Your body position. One signal you might not realize you’re sending is based on the position of your torso. You might be making eye contact and actively listening to your opponent, but if your chest is faced away, you’re sending a clear signal that you’re not invested in the conversation. Turn your body toward the conversation to convey that you’re taking the discussion seriously and value your adversary’s perspective.

Your handshake. We all know that a firm handshake makes for a good impression (and there’s a reason a weak handshake gets the “dead fish” nickname), but what else are you saying? Too firm, and you could come off as overly aggressive. Too weak, and you convey that you’re, well, weak. What you’re doing with your other hand can send signals as well. Putting your other hand on top of theirs is can be seen as a sign of dominance, while patting someone on the arm during a handshake can convey trust and good will.

There are many ways to convey emotion during a negotiation. The most important thing to keep in mind is to always be aware of what you’re conveying. Perhaps displaying a little command with a firm handshake is exactly what you need in your next negotiation—but use your body language as a tool, instead of sending a message you didn’t mean to give.

Suffolk County’s Plastics Ban: What Your Business Needs to Know

Posted: May 8th, 2019

By: Don Rassiger, Esq. email

Tags: corporate, environmental law, municipal

Suffolk County is the first county in New York State to restrict the use of plastic straws according to County Executive Steve Bellone, who on Earth Day (April 22, 2019) signed a pair of bills banning restaurants and retailers from distributing plastic straws and stirrers as well as Styrofoam products. The move comes after some local municipalities have passed similar legislation regarding plastic and polystyrene products – including Southampton (read more about that law here) – as well as state and county laws banning single-use plastic bags. If you operate a food service establishment in Suffolk County, here’s what you need to know.

Under the new legislation, the ban on plastic straws, stirrers, and Styrofoam will take effect on January 1, 2020. Your server dropping a handful of individually wrapped plastic straws on your table will be a distant memory, with restaurants, delis, and food service establishments providing straws and stirrers only if asked (and even then, the product must be biodegradable, not plastic). (Note that those who have a disability or medical condition will still be able to request a plastic straw.) And as with Southampton’s ban, the new Suffolk County law also bans food and beverage business from using polystyrene (“Styrofoam”) take-out containers – unless used to store eggs, raw meat, pork, fish, seafood, and poultry – as well as the use of packaging “peanuts,” starting next year as well.

In an extension of Southampton’s ban, Suffolk County lawmakers also passed a bill to ban single-use plastic utensils, plates, and cups distributed by vendors at county parks and beaches, which would go into effect when the current park vendor contracts are up. Such a move would also require the County to install more water fountains to allow for bottle refilling.

Suffolk County restaurants and food establishments should start preparing now for the transition to biodegradable options – including paper, bamboo and cardboard, among others. According to the New York State Restaurant association, the market has not yet caught up to the demand (https://www.newsday.com/business/plastic-straw-styrofoam-ban-suffolk-1.29639871), so the supply and the cost of alternative options could become more challenging as January 1, 2020 approaches. Get your orders in now!

While the switch to biodegradable options will undoubtedly cost business owners more, savvy restaurateurs can capitalize now by switching to biodegradable options before 2020, demonstrating environmental awareness to millennial consumers who may reward this forward thinking with loyalty. Further, most Long Islanders agree that environmental cleanup costs are sky-high, and a decrease in plastic litter can make a major difference. Surrounded by water, Long Island is particularly affected by plastics polluting the waterways we rely on for food, livelihood, and pleasure. The public has been particularly focused on sea animals washing ashore sick or dying from eating or becoming trapped in plastics.

By helping to reduce this type of waste, restaurants can promote their forward-thinking attitudes and attract new customers. Once again, please contact us with any compliance questions you may have.

How to Deal with Threats in Negotiation

Posted: April 3rd, 2019

By: Joe Campolo, Esq. email

Published In: The Suffolk Lawyer

Tags: negotiation

Have you ever sat across from someone at the negotiation table who eventually stops bargaining and instead starts giving ultimatums?

I’m referring, of course, to the use of intimidation and fear tactics at the bargaining table: someone who threatens to stop negotiating to begin legal action or damage your character and status. How should you respond when the other side begins issuing threats?

The two most common and automatic responses are to offer a direct counterattack or to immediately concede in an effort to maintain what gains or status you already have; however, both tactics won’t work in the long run. A direct counterattack often leads to an escalation in conflict, and immediate concession shows weakness and promotes further intimidation. Instead, threats at the bargaining table should be deflected and the negotiation redirected back toward common interests and goals. Here’s a road map for the next time you find yourself face-to-face with a threat at the negotiation table.

Analyze. The first step is to realize that a threat has been made in the first place. Sometimes threats are overt and obvious, but other times they are subtle. The best way to realize what you’re dealing with is to take a step back from the situation so that you can observe it dispassionately. This might just be psychologically, or you might even want to call a break – or even just take a sip of water – to give yourself time to assess.

Empathize. Being able to empathize and understand your opponent’s perspective is critical to achieving a good result. This is especially difficult after he or she has issued a threat against you. By suppressing your automatic reaction toward either anger or fear, you are better able to empathize with your opponent and begin to question what he or she is after. As you figure that out, you will know how to respond to their threat.

Question. What does your opponent want? By focusing the conversation on what they want, and how you can get it for them through negotiation, you calm tensions, lower the hostility from the issuance of threats, and keep the conversation going. This tactic works best with a straight-shooter; someone who is not actually attempting to threaten but instead informing their opponent of strong alternatives in their arsenal.

Call the bluff. If an opponent’s threat is nothing more than intimidation or is coming from a place of weakness, it might be best to simply call attention to the threat, and therefore neutralize it. Research by Anne L. Lytle, Jeanne M. Brett, and Debra L. Shapiro in The Strategic Use of Interests, Rights, and Power to Resolve Disputes suggests that calling attention to, or labeling, a threat is the best way to get a negotiation back on track. This was the tactic recently used by Nike, when Stormy Daniels’s ex-lawyer Michael Avenatti was arrested on charges of trying to extort $25 million from the multinational footwear giant by threatening to reveal damaging claims about them.

A Strong BATNA (Best Alternative to a Negotiated Agreement). Always have a Plan B. As I have discussed previously, it is important to show up to the negotiation table with a strong alternative to your desired scenario. Preparation is key in any negotiation, especially once a threat has been issued.

Show power. Power both protects you and prompts action. Sometimes an aggressor will respond only to aggression. In such a case, the best solution would be to offer a counterattack to show strength but to then immediately shift the topic back to common interests and goals to avoid trench warfare or a stalemate.

If you focus on these steps and alternative responses, you can answer a threat at the negotiation table in a way that de-escalates the situation and shows strength at the same time.

For further reading, check out the Program on Negotiation’s blog here and look back at my prior posts about power, empathy, preparation, and BATNA.

Southampton Bans Plastic Straws and Styrofoam in Food Establishments

Posted: April 3rd, 2019

By: Don Rassiger, Esq. email

Tags: corporate, environmental law, municipal

In 1988, Suffolk County passed the nation’s first law banning polystyrene “Styrofoam” food packaging due to its threat to the environment, paving the way for other jurisdictions across the country to do the same. Today, at both a Town and County level, Suffolk County is once again leading the way on environmental issues with regard to plastic bags, plastic foam containers, and plastic straws – and these new laws just may help drive up business in the bargain.

Similar to legislation recently passed in Patchogue Village and the Village of East Hampton banning foam food packaging, the Town of Southampton recently passed Town Board Resolution 2019-203 requiring restaurants and food service establishments in the Town to transition from plastic (including straws and stirrers) and Styrofoam products to biodegradable alternatives. This law will go into effect on May 8, 2019 to give businesses time to use up their old stock and make the transition to alternatives which can include cardboard, stainless steel, renewable corn, or bamboo products.

Under the law, restaurants will be permitted to keep a small number of plastic straws on hand for those with physical disabilities who require them, but straws will not be distributed automatically. All other customers who ask for a straw will be given a biodegradable one.

The law applies to all food service establishments and beverage providers, including restaurants, delis, bakeries, bars/taverns, fast food restaurants, take-out, and ice cream stores. Failure to comply can result in a fine up to $1,000, or imprisonment for a term of 15 days or less, or a combination of these.

Similar legislation is also being debated at the county level. Bills introduced in the Suffolk County Legislature in February 2019 aim to reduce plastic litter by eliminating plastic straws and Styrofoam containers, plates, and cups in restaurants throughout the county. This legislation follows the plastic bag fee that went into effect in Suffolk County last year – and which has resulted in an 80 percent decline in the number of single-use plastic bags distributed in the county over the past year, according to estimates.

Food service providers may understandably be concerned about adding yet another to-do item to their never-ending list, but savvy business owners should not view this ban as a burden, but as a potential boon to business. (Indeed, according to 27east.com, the Town’s Sustainability Committee surveyed 80 of the approximately 240 restaurants in the Town, and between 90 and 95 percent agreed that banning straws and Styrofoam containers “was a move in the right direction.”) (Read the full article here.)

By demonstrating an understanding of local environmental and health concerns, Long Island food and beverage service establishments will provide new incentives for existing and potential customers to frequent their stores and restaurants and will be making a change in our world for the better. Many of today’s consumers, particularly millennials, are concerned for the environment and would be more inclined to dine at an environmentally friendly establishment.

Furthermore, Baby Boomers and older generations still remember when restaurants used cardboard takeout boxes and paper straws before the widespread use of plastic, and thus wouldn’t find an adjustment back to this material difficult or inconvenient. In addition, the growing number of food intolerances, food allergies (see our related article here), and alarming cancer rates means that any change in daily life that might decrease the chances of that happening will bring relief and acceptance from Long Island residents, proponents say.

Finally, most Long Islanders agree that environmental cleanup costs are sky-high, and a decrease in plastic litter can make a major difference. By helping to reduce this type of waste, restaurants can promote their forward-thinking attitudes and attract new customers.

Please contact us with any compliance questions you may have.