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Campolo Moderates HIA-LI Economic Development in the Town of Islip

Posted: February 27th, 2023

Event Date: March 21st, 2023

Joe Campolo will moderate the HIA-LI Economic Development in the Town of Islip panel on Tuesday, March 21, 2023. The event will be held at Long Island MacArthur Airport from 8:00am – 10:00am. Hear about the latest happenings in the Town of Islip. Panelists include Phil Boyle, President & CEO of Suffolk OTB, Angie Carpenter, Supervisor of the Town of Islip, Shelley LaRose Arken, Commissioner of Long Island MacArthur Airport, Dr. Patrick O’Shaughnessy, President & CEO of Catholic Health, and Derek Trulson, Vice Chairman of JLL Real Estate Company.

Click here for more information and to register for the event.

New York State Enacts Pay Transparency Law: What Employers Need to Know

Posted: January 25th, 2023

By: Zachary Mike, Esq. email

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Update: For the most recent information on the Pay Transparency Law, follow this link:
New York State Amends Pay Transparency Law

By now, you may have heard that starting later this year, job postings in New York State must include a salary range. What does this mean for your business? Read on for what employers need to know concerning this new law.

What is the new Pay Transparency Law?

On December 22, 2022, New York Governor Kathy Hochul signed into law the New York Pay Transparency Law[1] (the “Law”), which takes effect September 18, 2023. The Law amends New York Labor Law[2] to require most private sector New York employers to provide salary ranges for all advertised jobs and promotions in New York State. Similar requirements enacted in 2022 already apply to employers who operate in New York City. Nevertheless, the Law includes some significant differences from the New York City law and others that employers should be aware of.

Essentially, the Law requires employers of four or more employees[3] advertising a job, promotion, or transfer opportunity to disclose the “compensation or a range of compensation for such job, promotion, or transfer opportunity” in the job posting. The “range of compensation” is defined as “the minimum and maximum annual salary or hourly range of compensation for a job, promotion, or transfer opportunity that the employer in good faith believes to be accurate at the time of the posting.”

The Law applies to jobs that can or will be performed, at least in part, in the state of New York. Therefore, depending on forthcoming guidance from the New York Department of Labor, the Law could be construed broadly enough to apply to out-of-state employers that have employees performing work in New York State.  (Note that the Law does not apply to temporary help firms that assign employees to other employers for short-term projects or seasonal work, since such firms are already required to provide wage range information in compliance with the New York State Wage Theft Prevention Act.)

How is the Pay Transparency Law different from similar laws already enacted throughout New York State?

The first notable difference from the New York City law is that the Law requires employers to keep and maintain records of the posted salary ranges for at least six years, beginning on the effective date (September 18, 2023). Such records must demonstrate “the history of compensation range for each job, promotion, or transfer opportunity and the job descriptions for such positions, if such descriptions exist.”

The other prominent feature of the Law is that in addition to the salary range, it requires employers to include a “job description for [a] job, promotion, or transfer opportunity, if such description exists” in any advertisement for a job, promotion, or transfer opportunity in New York State. There are currently no parameters that define “job description,” but employers should ensure that covered postings include and disclose any pre-existing job descriptions relating to the job being posted if they do indeed exist.

Unlike the limited private right of action under the New York City law, there is no right to file a private cause of action for alleged violations of the state law. Instead, aggrieved individuals may file a complaint with the New York State Commissioner of Labor. Failure to comply with the Law can result in civil penalties of up to $1,000 for a first violation, $2,000 for a second violation, and $3,000.00 for a third or subsequent violation. We will continue to monitor any additional rules and regulations promulgated by the New York Department of Labor.

Please contact us for guidance or with any questions.

For additional information, please visit:

https://www.nysenate.gov/legislation/bills/2021/S9427


[1] S.9427/A.10477

[2] §194-b

[3] The Law also applies to employment agencies and the employees and agents of employers and employment agencies.

The information contained in this article is provided for informational purposes only and is not and should not be construed as legal advice on any subject matter. The firm provides legal advice and other services only to persons or entities with which it has established an attorney-client relationship.

Malafi Quoted in Newsday Regarding NY’s Law Expanding Breastfeeding Accommodations

Posted: January 18th, 2023

By Jamie Herzlich, Newsday

Working moms in New York have the right to expanded accommodations for expressing breast milk at their places of employment under recent legislation.

The law, which takes effect June 7, requires all employers to provide a designated location for nursing employees to pump breast milk that includes such amenities as seating, a working space, and nearby access to running water. They also must develop and implement a written policy regarding employee rights when breastfeeding in the workplace. 

Smaller employers should start thinking creatively on how they can make accommodations or rethink space to comply, experts say.

“I think certain small businesses may be able to claim an undue hardship as to some of the law’s requirements, but the burden will be on the employer to show the undue hardship,” says Christine Malafi, senior partner and chair of the corporate department at Campolo, Middleton & McCormick, LLP in Ronkonkoma.

If there is a complaint, a resolution will be up to the Department of Labor on a case-by-case basis on the very specific facts involved in each situation, she says.

Some employers in certain circumstances may have to work out a reasonable accommodation such as providing a nursing pod, but if employees work outside, they may not have access to running water with a pod, Malafi says.

But bottom line is all employers have to “start thinking of a space with electricity and privacy where women can go to express breast milk,” says Malafi.

This is backed up by a recent amendment to the Fair Labor Standards Act, called the PUMP Act (Providing Urgent Maternal Protections), which on the federal level requires employers to provide a place to express breast milk that’s private from view and free from intrusion for all employees, Malafi says.

Read the full article on Newsday’s website.

Does Your Business Use Third-Party Payment Apps? What You Need to Know About the Changes to IRS Form 1099-K

Posted: January 17th, 2023

By: Zachary Mike, Esq. email

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Many small businesses often use third-party payment processors such as PayPal, CashApp, or Venmo to facilitate a frictionless payment experience for goods and services that can be made right from a customer’s smartphone. However, due to recent changes in the law, anyone who receives $600.00 or more as payment for goods and services using any of these payment apps can expect to receive a Form 1099-K.

Form 1099-K, Payment Card and Third Party Network Transactions, is a federal informational tax form used to report payments for goods and services to the Internal Revenue Service (“IRS”). Organizations that facilitate these payments, like debit or credit card companies, PayPal, Venmo, and others, are required by law to file Form 1099-K with the IRS and send copies of them to the payment recipient. The Form 1099-K may include amounts considered to be both included and/or excluded from gross income for federal tax purposes.

Previously, the IRS only required this level of reporting if payments exceeded $20,000.00 or more and over 200 transactions were completed during the year. While that reporting is still required, the new lower tax reporting requirement is a result of a change to the tax code in the American Rescue Plan Act, the $1.9 trillion stimulus package passed by Congress and signed into law March 2021. Beginning January 1, 2023, a payment settlement entity (“PSE”) such as Venmo is required to file and send its users a Form 1099-K for transactions made during the 2023 tax year. A PSE is defined by the IRS as “a domestic or foreign entity that…has the contractual obligation to make payment to participating payees in settlement of payment card transactions.”

The IRS said these changes also extend to people who sell items on internet auction sites such as eBay, and even people who run a “craft business” if they accept credit card payments through these apps. To comply with the new requirements, PayPal and Venmo have offered its users a way to tag their peer-to-peer transactions as either (1) personal, for friends and family, or (2) for Goods and Services. For example, users should select the appropriate category of “Goods and Services” whenever they are sending money to another user to purchase an item or paying for a service.

According to the IRS, these PSEs must then file the Form 1099-K for payments made in settlement of reportable payment transactions for each calendar year, which will then be sent to applicable individuals for income received through electronic forms of payments. PSEs may also request additional information from payment recipients, such as an Employment Identification Number (EIN) or Social Security Number (SSN) to properly report transactions on the Form 1099-K. If any of the payments are incorrectly labelled, payment recipients can contact the PSE directly for assistance. For instance, if the payment recipient reports their business income on a Form 1120, 1120S or 1065 and receives a Form 1099-K in their personal name as an individual (showing a SSN), contact the PSE listed on the Form 1099-K to request a corrected Form 1099-K showing the business’s EIN.

Recently, the IRS announced that calendar year 2022 will now be regarded as a transition period for purposes of IRS enforcement and administration of the third party network transactions. As a result of this delay, third-party settlement organizations will not be required to report tax year 2022 transactions on a Form 1099-K to the IRS or the payee for the lower, $600 threshold amount enacted as part of the American Rescue Plan of 2021.Instead, payment recipients will be required to report such earnings for the 2023 tax year during the 2024 tax season. To issue the Form 1099-K by mail or electronically by January 31, 2024, all tax information should be confirmed with the PSE by December 31, 2023. The sooner the confirmation, the sooner the payment recipient will be able to send, spend, and withdraw money from any payments that might be on hold.

With the new reporting requirements approaching, it is important for payment recipients to keep accurate records, such as receipts and bank statements, and be prepared to determine whether the information reflected on the Form 1099-K is taxable or non-taxable income.

This article is for informational purposes only. For tax advice or guidance, please consult your accountant directly.

Please contact us with any questions.

For additional information, please consult these sources:

https://help.venmo.com/hc/en-us/articles/4407389460499-2022-Tax-FAQ

https://www.irs.gov/forms-pubs/about-form-1099-k

https://www.irs.gov/instructions/i1099k

https://content.govdelivery.com/accounts/USIRS/bulletins/33f1ba9?reqfrom=share/

https://www.irs.gov/pub/irs-drop/n-2023-10.pdf

https://www.forbes.com/advisor/taxes/cash-apps-to-report-payments-of-600-or-more/

https://www.nbcnews.com/news/venmo-paypal-zelle-must-report-600-transactions-irs-rcna11260

The information contained in this article is provided for informational purposes only and is not and should not be construed as legal advice on any subject matter. The firm provides legal advice and other services only to persons or entities with which it has established an attorney-client relationship.

CMM’s Jeffrey Basso Highlighted in LIBN Who’s Who: Labor Law

Jeffrey Basso is a partner at Campolo, Middleton, & McCormick, LLP (CMM) where he represents business owners, corporations, corporate officers, shareholders, and investors in a variety of litigation matters in state and federal court involving employment, business, and contractual disputes. Basso was selected as one of thirteen attorneys to be featured in LIBN’s Who’s Who Labor Law special edition publication.

Basso has experience prosecuting and defending matters on behalf of clients in actions involving employment contracts, non-compete agreements, trade secrets, fiduciary duty, breach of contract, hour and wage disputes, real estate transactions, investments, and construction matters.

His successful track record in the labor law arena spans numerous industries. Recent representative matters include the defense of a Long Island metal fabrication company in a hostile workplace/discrimination lawsuit (resulting in the dismissal of all claims) and the defense of a large catering company in a wage and retaliation dispute (resulting in the court’s refusal to reinstate the former employees).

As business owners enter 2023, Basso advises they have a procedure in place for documenting poor work performance, insubordination, and other employee misconduct to minimize issues if and when an employee is terminated.

“Too many times, employers make the critical mistake of not documenting instances of poor performance and other issues with their employees,” he said. “Then, if the employee is terminated, litigation often ensues over claims of wrongful termination, retaliation and other related claims, which can be extremely costly and damaging to business owners. “

“If the employer has a procedure in place and documents the employee’s history of poor performance or other misconduct, these claims can often be extinguished before they get started,” Basso said.

Basso is also experienced in representing clients in business divorce matters, including the negotiation of creative strategies to divide assets, as well as business divorce litigation. His litigation practice also includes appellate work.

He earned a bachelor’s degree from the University of Delaware and a juris doctor from St. John’s University School of Law.

He is admitted to practice in New York State and before the United States District Court, Southern District of New York and the United States District Court, Eastern District of New York.

View the full Who’s Who book here.

CMM Announces Three Senior-Level Promotions

Posted: January 11th, 2023

Campolo, Middleton & McCormick, LLP is delighted to announce that Lauren Kanter-Lawrence and Nancy Conte have been promoted to Vice Presidents and Kathleen DiLieto has been promoted to Controller, effective January 1, 2023. These senior-level promotions highlight the firm’s role as a destination for top talent in professional services.

As Vice President, Lauren Kanter-Lawrence, Esq. is responsible for CMM’s recruitment, training, marketing and communications, and business development efforts. She creates and implements programs that support the development and retention of the firm’s professionals, spearheads all staffing and talent matters, and oversees CMM’s in-house training programs. She also works closely with the Managing Partner on critical economic development initiatives to help Long Island grow. A graduate of Cornell University and Pace Law School, she joined the firm in 2008 as an attorney and has served as Director of Communications and Talent.

Nancy Conte has been promoted to Vice President of the Strata Alliance, a first-of-its-kind service that manages, connects, and aligns professional service providers working together for business owners and high-net-worth families. She plays a critical role in ensuring that clients have access to premier service providers covering all their needs. Bringing significant operational experience to her new role, Conte ensures that Strata has the resources to provide a superior client experience. In addition to her work with Strata, Conte also oversees the operations at CMM and other strategic business partners. She graduated from Stony Brook University and previously served as Strata’s Director of Operations.

Kathleen DiLieto, CPA, has been promoted from Assistant Controller to Controller. Now head of the accounting department, DiLieto is responsible for all financial reporting, budgeting and forecasting, general accounting, cash and treasury management, internal control assessments, accounts receivable and accounts payable. A CPA with her Accounting degree from St. Joseph’s College, DiLieto has over 20 years of experience in both public accounting and private industry. Her public and private sector experience enables her to analyze issues from all critical angles and work with firm leadership to effectively plan for the future.

Please join us in congratulating them!

CMM’s Arthur Yermash Highlighted in LIBN Who’s Who: Commercial & Residential Real Estate Law

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Arthur Yermash is a partner at Campolo, Middleton & McCormick, LLP (CMM), where he leads the firm’s commercial leasing practice. Arthur was selected as one of only thirteen attorneys to be featured in LIBN’s Who’s Who Commercial & Real Estate Law special edition publication.

Yermash developed the strategy for the renegotiation of nearly 1,000 commercial leases nationwide for a major retailer in the early days of the pandemic, a critical hands-on role that ultimately saved the client significant money and gave them the ability to adapt their business plan for unprecedented circumstances. This tenant-side work, coupled with his experience negotiating a wide range of commercial leasing transactions on behalf of landlords, enables Yermash to negotiate creative and effective solutions to lease disputes.

Yermash’s leasing work spans office leases, ground leases, master leases, sub-leases, triple-net leases, and sale-lease-back throughout Long Island, New York City, and throughout the country. He also helps clients navigate the purchase and sale of commercial real estate throughout the region.

“One of the biggest concerns about commercial real estate for 2023 is the expected continued growth of interest rates,” Yermash said.

“Many buyers, sellers and developers rely on financing for acquisition and development projects,” he said. “As interest rates increase, so do the costs of property and construction. While this may result in lower prices on commercial real estate, the great cost of financing is likely to have a cooling effect on property changing hands, as well as the number of development projects that take place.”

“While some indicators suggest that the speed at which interest rate increase could slow in 2023, it is critical to keep a close eye on how this develops,” Yermash said.

For over a decade, Yermash has also worked with CMM’s corporate department directly supporting the general counsel and full legal and business teams for a national retailer, serving as their go-to resource and primary outside counsel on an extraordinarily wide range of business and employment matters. He has also represented Long Island and NYC companies in countless business-related matters and transactions from the routine to the complex. These roles have enabled Yermash to develop deep experience advising corporate clients on all aspects of their businesses.

View the full Who’s Who book here.

2023 Changes to New York State Paid Family Leave

Posted: December 27th, 2022

By: Zachary Mike, Esq. email

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Beginning January 1, 2023, the amount of weekly benefits and eligible family members under the New York State Paid Family Leave Act (PFLA) will change.  The PFLA, which took effect in 2018, provides eligible employees with up to 12 weeks of job-protected, paid time off to bond with a child, care for a sick family member, or assist family when a service member is deployed abroad. The time can be taken all at once or in increments of full days.

Currently, the list of family members for whom eligible workers can take Paid Family Leave to care for includes spouses, domestic partners, children, step-children, parents, step-parents, parent-in-laws, grandparents, and grandchildren. These family members can live outside of New York State, and even outside of the country. Under the new changes, this list will be expanded to include biological siblings, adopted siblings, stepsiblings, and half-siblings.

Employees taking Paid Family Leave receive 67% of their average weekly wage, up to a cap of 67% of the current New York State Average Weekly Wage (NYSAWW). For 2023, the NYSAWW is $1,688.19, which means the maximum weekly benefit is $1,131.08. This is $62.72 more than the maximum weekly benefit for 2022.

New York State Paid Family Leave is essentially a type of insurance that may be funded by employees through payroll deductions. Although benefits are expanding to cover more family members this upcoming year, the contribution rate has gone down. For 2023, employees will contribute 0.455% of their gross wages per pay period. The maximum annual contribution for 2023 is $399.43, being $24.28 less than 2022. Employees earning less than the current NYSAWW of $1,688.19 will contribute less than the annual cap of $399.43, consistent with their actual wages.

Employers should confirm their 2023 Paid Family Leave premiums with their insurance carriers and coordinate with their payroll providers to make sure that the 2023 payroll will include the correct contribution rates.  Written employment policy documents will also need to be updated if they include the specific PFLA benefit or deduction levels.

If you have questions about the PFLA, please contact us.

The information contained in this article is provided for informational purposes only and is not and should not be construed as legal advice on any subject matter. The firm provides legal advice and other services only to persons or entities with which it has established an attorney-client relationship.