News (All)

2022 Changes to Minimum Wage and Overtime Exempt Salary Threshold

Posted: December 21st, 2021

As the end of the year is approaching, it is important to remind New York State employers and employees of the increased minimum wages that affect both hourly and salaried employees.

For hourly, non-exempt workers, please see the below chart for basic hourly minimum wage increases that go into effect as of December 31, 2021:

Minimum Wage Increase

Geographic Location / Increase from 2021 2022 Rate
NYC $15.00 per hour (no change)
Nassau, Suffolk, & Westchester / +$1.00 per hr$15.00 per hour
Remainder of New York State / +$0.70 per hr $13.20 per hour

To the extent you or your workforce are paying basic minimum wage, it is important to make sure that the increased wages are reflected as of December 31, 2021.

Tip Credit

New York State also allows employers in certain industries to satisfy the minimum wage by combining a cash wage paid by the employer plus a credit for tips the employee receives from customers. The minimum hourly rates New York employers must pay most tipped employees go into effect as of December 31, 2021:

Service Employees

Geographic Location2022 Rate / Tip Credit
NYC$12.50 / $2.50
Nassau, Suffolk, & Westchester$12.50 / $2.50
Remainder of New York State$11.00 / $2.20

Food Service Employees

Geographic Location2022 Rate / Tip Credit
NYC$10.00 / $5.00
Nassau, Suffolk, & Westchester$10.00 / $5.00
Remainder of New York State$8.80 / $4.40

The “tip credit” rules can be difficult to follow, so it is important to track this information to ensure that tipped employees are receiving at least basic minimum wage, inclusive of tips, when calculating wages.

Increased Salary Threshold for Overtime Exemption

Finally, there are increases in the minimum salary threshold that must be met for exempt employees. As of December 31, 2021, the following minimum salaries must be paid for exempt administrative and executive employees:

Geographic Location2022 Salary Threshold
NYC$1,125.00 p/w ($58,500.00 annually)
Nassau, Suffolk, & Westchester$1,125.00 p/w ($58,500.00 annually)

With the upcoming changes, it is important to update policies and pay practices to stay in compliance.  If you have questions about minimum wage, overtime, or wage and hour exemptions, please contact us here or call (631) 738-9100.

Middleton and Malafi Named to Judicial Screening Committee of Suffolk County Bar Association

Posted: December 14th, 2021

CMM is pleased to announce that Senior Partners Scott Middleton and Christine Malafi have been named to the Judicial Screening Committee of the Suffolk County Bar Association (SCBA). The Committee is tasked with investigating the background, experience, and other qualifications of candidates seeking to run for judicial office in Suffolk County to ensure that potential nominees are qualified to serve on the bench. The Committee consists of 25 active members of the SCBA of recognized standing, judgment and independence, and serve for a term of three years or until their successor is appointed.

Middleton previously served on the Committee and was reappointed this year. He chairs the Municipal Liability and Personal Injury practice groups at CMM. He handles all types of litigation, representing individuals and defending large and small businesses and municipalities in a wide array of matters including transportation, personal injury, premises liability, labor law (construction accidents and employment issues), civil rights, wrongful death, road design, and general litigation. Middleton serves on the Board of Directors of East End Arts as President in addition to his membership on the Stony Brook University Intercollegiate Athletic Board.

Malafi joins the Committee this year in addition to her work chairing the Corporate department at CMM. Her practice focuses on mergers and acquisitions, corporate governance, and routine and complex transactions. She routinely represents buyers and sellers in multimillion-dollar transactions and serves in a general counsel role for many of the firm’s corporate clients. In addition to her legal work, Malafi serves on the Executive Board of Directors of Family Service League as the Vice-Chair of Governance & Nominating. She also sits on the Board of Governors of Touro Law School.

All members of the Judicial Screening Committee are appointed by the President of the SCBA, subject to the approval of the Board of Directors. Committee members are attorneys who have achieved distinction and experience in the practice of law. Middleton and Malafi’s roles on the Committee demonstrate their outstanding service to the public as well as their continued pledge to faithfully serve the Suffolk County legal community.

CMM Closes Sale of Online Bookkeeping Service to Software Leader

Posted: December 13th, 2021

It’s true that “teamwork makes the dream work,” especially when it comes to closing complex legal matters that require everyone on the team to pitch in one or way or another – either through work on the deal itself or picking up other work to keep other deals moving. In CMM’s latest success story, our corporate team did just that.

Our clients were the owners of an online bookkeeping service that has provided reliable and efficient bookkeeping services to organizations for over a decade. Servicing organizations nationwide, the company offers seamless solutions and support services for clients. In the multi-million-dollar deal, our clients sold their business to a leading software company that also provides solutions for groups and organizations through a technology-centered approach.

Senior Partner and corporate department chair Christine Malafi led CMM’s deal team, with support from Paralegal Katharine Campolo, and Touro Law School extern Julia Buli. Despite complications that resulted in last-minute restructuring of the transaction, CMM’s team was able to pull through to the finish line where our happy clients were waiting. The deal involved multiple LLCs organized in several jurisdictions, requiring collaboration with accounting professionals on the many tax implications of the transaction.

The deal highlights CMM’s dynamic M&A team and the confidence that clients have in our ability to take on complicated transactions and navigate the twists and turns that come along. Contact us for your next merger or acquisition.

Malafi on Panel Discussion: Financial & Legal Advice for Startups and SMBs

Posted: December 13th, 2021

Event Date: December 14th, 2021

Join Christine Malafi, Esq. on Tuesday, December 14 at 9:00 AM for Amity Education Group‘s informative panel discussion on startups and small and midsize businesses. Malafi will be joined by panelist Vincent Garritano, CPA of G.S. Garritano & Associates, CPAs and moderator Kevin L. McCrudden of Amity Education Group New York. The event will be held virtually.

Long Island Business Community Welcomes Breeze Airways to MacArthur Airport

Posted: December 9th, 2021

Recent HIA-LI Survey Spearheaded by Campolo Highlights Exponential Revenue Potential of Long Island’s Hometown Airport

CMM’s Joe Campolo was on hand at a December 6 press conference announcing Breeze Airways’ new home at Long Island MacArthur Airport. Starting in February 2022, the airline – founded by David Neeleman (who previously cofounded multiple airlines including JetBlue) – will offer nonstop flights to Norfolk, Virginia and Charleston, South Carolina. Touting Breeze as the “Seriously Nice™” airline that “gets you there twice as fast at half the price,” Neeleman described Breeze as “a technology company that happens to fly planes.” The fact that the tech-savvy airline chose MacArthur as its first New York airport is a testament to the power and support of the Long Island business community.

This support was on full display this past summer in the robust response from the business community to HIA-LI’s Long Island MacArthur Airport Survey, spearheaded by Campolo and his team at CMM. For many years, the business community has lamented the lack of direct flight destination options from MacArthur Airport. To that end, the goal of the HIA-LI survey was to showcase support for the airport and help attract new airlines, paving the way for new travel options for Long Islanders.

The survey results are staggering, displaying the potential untapped revenue that more nonstop destinations could bring to MacArthur and the region. After providing their annual business travel budgets, respondents of the survey said that the addition of more nonstop flights would increase their overall travel spend at MacArthur from 36.2% to 78.8%. The survey also found that when taken together, Nassau and Suffolk Counties hold the potential to generate as much as $1.1 billion in revenue for the airport.

The survey stemmed from Joe Campolo’s involvement with the MacArthur Airport Advisory Board, to which he was invited by Town of Islip Supervisor Angie Carpenter after his work on the HIA-LI’s Long Island Innovation Park at Hauppauge (LI-IPH) Task Force caught her attention. Recognizing the Innovation Park as Long Island’s hidden economic gem, Campolo has successfully led efforts to quantify the economic impact of the LI-IPH and magnify the LI-IPH’s role in Long Island economic development, putting the LI-IPH on the map for future development projects.

“The addition of Breeze Airways at MacArthur Airport provides a tremendous advantage for regional development and is such a win for the business community,” said President & CEO of HIA-LI, Terri Alessi-Miceli. “HIA-LI is proud to support initiatives like the LI-IPH Task Force and the airport survey to help business survive and thrive now and in the future.” “MacArthur Airport is a critical asset to the Long Island business community. When the data from the survey started pouring in, it was clear that the business community strongly supports the airport while recognizing the need for more nonstop travel destinations,” said Campolo. “Now, the addition of Breeze Airways at MacArthur Airport will open up more possibilities for the Long Island region and opportunities for further economic advancement.”

HIA-LI’s 44th Annual Meeting and Legislative Program

Event Date: January 14th, 2022

Joe Campolo will moderate the HIA-LI 44th Annual Meeting and Legislative Program on Friday, January 14, 2022. The virtual event will be from 8:00 – 10:30 A.M. Hear from your local and state representatives while you learn about Long Island business initiatives and the 2022 economic forecast.

Interests vs. Positions: Guidelines for “Getting to Yes” and Avoiding Negotiation Jiu-Jitsu

Posted: November 29th, 2021

By: Joe Campolo, Esq. email

There is a single orange sitting on a kitchen table and two sisters want it. What is the solution to appease both sisters?

  1. You can split the orange in half and give one half to each sister.
  2. The older sister can receive the whole orange.
  3. Flip a coin, and the winning sister will receive the whole orange.

Let’s say you split the orange in half to be fair to both sisters. Now, each sister has half of an orange. The younger sister proceeds to eat her half, but still feels hungry afterward. She throws the peel in the garbage. The older sister uses her half to zest the peel and make an orange cake. She has no use for the orange itself, so she throws it out. In the attempt to make it fair for the sisters by giving them each half of the orange, we’ve just committed a crucial negotiation error: we’ve assumed each sister’s position and incorrectly guessed their interests.

If we asked the older sister what she wanted to do with the orange, she might have said she needed the peel for her cake. If we asked the younger sister why she needed the orange, she might have replied that she wanted a snack. If we had asked these questions, we would have discovered a fourth solution to appease both sisters: one receives the peel, and one receives the fruit itself. A win-win scenario.

Of course, not every negotiation is this simple. However, understanding the difference between a person’s interests and positions could be the difference between negotiation success…or a miserable flop. A win-win negotiation is one in which both parties find alignment between their interests to create value for both sides. A negotiator’s position might be what they want (an orange), but their interest is why they want it (to eat it or use to make a cake).

In one of my previous negotiation blogs, I discussed how to utilize active listening as a powerful negotiation tool to gather information. Now, you can use active listening to gather information, and then determine a solution that aligns with the interests of both parties. Roger Fisher and William Ury outline this in their book Getting to Yes: Negotiating Agreement Without Giving In.

Here are some key considerations to find alignment:

Ask “why” and separate positions from interests

As in the orange example, don’t assume the opposing party’s position to be their underlying interest. Let’s consider an example that Fisher and Ury highlight in their book:

Two men disagree about a window: one wants it open, while the other one wants it closed. They go back and forth on leaving it open, closed, halfway shut, slightly ajar, and so on. Then a third person walks into the room and asks why the first man wants the window open. He replies that he wanted some fresh air. The third person asks the second man why he wants the window closed. He replies that he wanted to avoid the draft. The third person thinks for a moment and then proceeds to open a window in the next room, bringing in fresh air while avoiding the draft at the same time: a win-win.

When you find out the “why,” aka underlying interests, of the parties involved in a negotiation, it’s easier to find what both parties value to create a win-win scenario.

Ditch the “winner vs. loser” mentality

Too often, negotiations are viewed in black and white terms: there is a loser and a winner, and the name of the game is to “win.” Emotions run rampant, and the negotiation plays out with a “you vs. them” undercurrent. When this happens, try to frame issues as an open discussion in which the opposing party feels comfortable with you.

For example, if you’re trying to negotiate with the seller of a building you are buying, try not to get locked into a game of negotiation jiu-jitsu in which there’s a cycle of action and reaction. This happens when the seller names their price, you refuse and go lower, then they refuse and maintain their original price without budging. This mentality creates a situation where you as the buyer think the only way to win is to lock in the low price. Instead, try looking at the bigger picture and address the basic concerns of the opposing party.

Perhaps the building has issues with the roof or needs a structural upgrade. These discussions could be steered toward a suggestion for the current owner in which you imply that they are better off selling the building to you at a lower price than fixing it themselves. By framing it this way, both you and the current building owner could feel like winners.

Have your BATNA ready

We’ve talked about BATNA before on this blog. Fisher and Ury coined the term, which stands for “Best Alternative to a Negotiated Agreement.” Essentially, it’s a Plan B to provide negotiating power and serves as your bottom line in a negotiation. Having a BATNA at the ready helps you avoid doing negotiation jiu-jitsu in which you go back and forth with your counterpart until there is no solution to be found.

Let’s use the example of a car salesman and a would-be purchaser. If the person trying to buy a car wants to spend around $20,000 but would pay no more than $25,000, that means their BATNA is $25,000: the worst-case scenario that would still lead to a successful negotiation and outcome for both parties involved. For the salesman, their goal could be to sell a car for $27,000 but their BATNA could be $22,000. Therefore, if the salesman and the person interested in the car negotiate with their BATNAs in mind, the car could be sold for somewhere between $22,000 and $25,000.

In Summary…

Distinguishing what someone wants and why they want it, using win-win tactics, and having a BATNA prepared can help you avoid negotiation jiu-jitsu to gain a favorable outcome for both yourself and your negotiation counterpart. The next time you find yourself locked in a negotiation that seems like it has no end, try to dig deeper and uncover the underlying interests of the person you are negotiating with. You might find a hidden path to “getting to yes.”

CMM Closes Complicated Asset Purchase in Collaboration with Tax Advisors

Posted: November 22nd, 2021

Complications are inherent in any M&A transaction, but CMM understands that lawyers need to be deal makers, not deal breakers. Our attorneys work tirelessly to keep deals moving efficiently toward closing despite the challenges. Quite often, this requires us to work closely with other professionals to help our clients overcome the hurdles they face throughout the course of their transactions.

CMM’s M&A team recently did just that in a multi-million-dollar APA transaction – collaborating with our client’s tax advisors to close the deal. Our client is a loss control and safety service provider in the insurance industry, servicing clients nationwide to ensure that customers are provided with the most up-to-date systems that fit their geographic needs. The deal involved the sale of our client’s assets to a larger business consortium in the mortgage and insurance industry.

On its face, the transaction was a fairly straightforward asset purchase deal but grew significantly more complicated due to income tax issues as well as other issues stemming from our client’s continued equity ownership interest in the purchasing entity after closing. Despite these issues, Partner Don Rassiger led the CMM team and worked seamlessly with our client’s tax advisors to untangle the complicated web of tax issues and bring the deal across the finish line.

CMM attorneys look at the bigger picture and examine how collaboration can foster effective results for clients in a holistic manner. Learn more about CMM’s unique M&A practice and the recent deals we’ve closed here.