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Campolo’s Remarks at 42nd Annual HIA-LI Legislative Breakfast Featuring Elected Officials

Posted: January 17th, 2020

On January 17, 2020, CMM Managing Partner and HIA-LI Board Chairman Joe Campolo moderated the 42nd HIA-LI Annual Meeting and Legislative Breakfast, attended by over 350 members of the business community. Joe reported on HIA-LI’s incredible year in 2019 and the plans to relentlessly push for even greater economic growth in 2020. He then led a discussion with elected officials about the issues most affecting the business community. Panelists included U.S. Congressman Lee Zeldin, New York State Senator John Flanagan, New York State Assemblyman Mike Fitzpatrick, Suffolk County Executive Steve Bellone, Town of Smithtown Supervisor Ed Wehrheim, and Executive Director of Islip Economic Development Bill Mannix. Read Joe’s full remarks below.

I’d like to welcome everyone to our Annual Meeting and Legislative Breakfast. Thank you for being here this morning. As Chairman of the HIA-LI Board of Directors, I’m honored to join you as the moderator for this event as we embark on a new year for Long Island business and for the continued prosperity of our region.

2019 was a wildly successful year for the HIA-LI. Building on our success in uncovering the numbers and facts that we learned through our Economic Impact Study about what was then known as the Hauppauge Industrial Park, we took a giant leap forward. Based on the success of that initiative, the Suffolk County IDA funded an opportunity analysis to take a deeper look at the Park.

The conclusions were staggering – in addition to verifying the prior economic analysis, this report also found that the Park has the largest concentration of tradable businesses not only on Long Island, but also is a full 20% above the national average for tradable business clusters. Tradable industry is critical to a healthy economic ecosystem. The Park truly earned its new name and new brand – the Long Island Innovation Park at Hauppauge.

We now know how critical to Long Island it is to maintain and grow this high percentage of tradable business in the Park, for to lose them would be catastrophic. Unlike non-tradable businesses, tradable businesses are our only way to attract and keep the recent grads of our own educational organizations, who are all too often lured away by the glitz of NYC or Silicon Valley. This is the key, as these jobs will pay them adequate wages so they can buy our homes, afford the taxes and enjoy the higher-end amenities Long Island is known for.

And speaking of taxes, we also learned the astronomical amount of taxes that the businesses located in the Park generate on a federal, state, and local level. In the past, being that we never quantified those numbers, we didn’t have them to use when we engaged with our elected officials for resources and support. As a result, HIA-LI was relegated to the kiddie table while the adults shaped Long Island. Everyone, I believe, now knows that it was a huge mistake to leave so many business owners out of the discussion.

All of that changes now. HIA-LI has earned and will not accept anything less than a seat at the grown-ups table and will not accept being left out of critical discussions anymore. Armed with all our data, we are now able to have more intelligent conversations with our elected officials on a dollars-and-cents basis and are able to help educate them on the need to support this Park.

Luckily, our current elected officials understand this and have welcomed the new HIA-LI with open arms.

We’ve had productive and meaningful conversations with the County about economic development and sewers, with the Town of Smithtown about signs and overlay districts, and with the state about a workforce development center.

To my friends on the dais, I say thank you, and I say our work has just begun. HIA-LI will continue to relentlessly pursue improvements to the Park that will help foster and grow our beloved Long Island business, and we look forward to working with you all on these initiatives.

In addition to these efforts, our Small Business Task Force, headed by Rita DiStefano, and our Solar Initiative, headed by Scott Maskin, took enormous strides in 2019. HIA-LI also launched our Gold Member initiative, and I look forward to the growth of that program this year as well.

I am proud to report that HIA-LI is poised for another successful year. Thank you.

CMM Represents International Key Supply in its Merger with H.L. Flake Security Hardware

Posted: January 16th, 2020

Campolo, Middleton & McCormick, LLP, acted as legal counsel for Farmingdale-based International Key Supply Hardware in its recent merger with H.L. Flake Security Hardware, a portfolio company of Supply Chain Equity Partners, which sponsored the transaction.  The transaction means that the combined entity will be one of the largest independent security hardware distribution platforms in the United States serving locksmiths and security professionals.

Sean McAuliffe, the founder and now former President of International Key Supply, said, “Working with CMM gave me peace of mind. The process was well organized, and Christine Malafi and her team were incredibly accessible and responsive. Their attention to detail and negotiating experience ensured that I was able to spend the majority of my time staying focused on running the business.” McAuliffe will continue to play a critical role moving forward, taking on the role of Director & Chief Strategy Officer – Automotive.

According to Malafi, Senior Partner at CMM who chairs the firm’s Corporate Department, “It’s always gratifying to counsel Long Island businesses that receive attention from private equity firms and companies located in other states and that result in such a successful outcome, including keeping operations on Long Island. Congratulations to Sean and the IKS team!”

CMM was recently recognized by Forbes as one of the Top Trusted Corporate Law Firms in America. Only 243 of the more than 40,000 law firms in the nation received this designation.

Vincent Costa assisted Malafi with the transaction. Learn more about our Mergers & Acquisitions practice here

NYS Employers Must Update Their Sexual Harassment Policies in 2020

Posted: January 14th, 2020

By Christine Malafi

Employers in New York State, take note: now that 2020 is here, you must update your sexual harassment policies, notices, and training – even if you just did so last year.

New York State laws addressing sexual harassment in the workplace have been evolving since 2018, when the worldwide #MeToo movement prompted lawmakers to make changes. In August 2019, Governor Cuomo signed further reformations which will soon come into effect. In particular, (1) the definition of sexual harassment has been expanded, resulting in more types of behavior qualifying as sexual harassment, and (2) the statute of limitations to file a sexual harassment complaint with the NYS Division of Human Rights has been increased. These amendments will likely create a more employee-friendly ruling climate, and employers should ensure that their policies are updated and that their employees are trained on the changes.

Here, a deeper look:

Sexual harassment definition: Previously, those claiming workplace harassment under New York State law were required to show that the harassment to which they were subjected was “severe or pervasive” to sustain their claim or legal action. The new laws lower the burden of proof by removing the phrase “severe or pervasive” from the legal standard, making “sporadic” sexual harassment sufficient to support a claim. Further, even if the employee fails to report the harassment or follow their employer’s internal policies and procedures, the new laws state that the employee may still be eligible to file for a sexual harassment lawsuit. Given these lowered standards, employers should address all forms of workplace harassment to avoid potential liability. These new laws are effective as of February 8, 2020.

Statute of limitations: As of August 12, 2020, the statute of limitations for filing a sexual harassment complaint with the NYS Division of Human Rights will be extended. Currently, the filing period is one year, and in August it will raise to three years.

These latest expansions prove how seriously New York State is taking the issue of sexual harassment, and all employers should take this opportunity to review and update their training procedures, notices, and policies. If you have any questions or concerns regarding these changes to New York State law, please contact our office.

McCormick Part of Task Force to Analyze Proposed Changes to New York State Court System

Posted: January 14th, 2020

Chief Judge Janet DiFiore is proposing Amendments to the New York State Constitution to consolidate New York’s major Trial Courts.

The Suffolk County Bar Association has joined with the Nassau County Bar Association to create a joint task force, pooling their knowledge and experience to analyze and comment on the proposed changes. CMM is pleased to share that Senior Partner Patrick McCormick, who serves as Secretary for the SCBA, is part of this important task force.

CMM is at the forefront of the legal and business communities, and McCormick’s critical insights will be an asset to the task force.

Renegotiating a Bad Deal

Posted: January 9th, 2020

By: Joe Campolo, Esq. email

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Ever negotiate a deal and happily put it to bed, only to have to revisit it months or years later? Every negotiator has ended up with an agreement that no longer suits their needs, or their adversary’s, and must go back to the table to turn the lopsided deal right again. But the dynamics of renegotiation aren’t the same as negotiating for the first time, and renegotiating what you thought was a done deal comes with its own set of pressures. Read on for tips on renegotiating effectively.

  1. Identify the key issues: Are you the party initiating the renegotiation? Before approaching the other parties, make sure you have a clear idea of what is wrong with the current contract. Look at the role each party plays in causing the problem and how everyone, not just you, is affected by it. Then decide which issues are most important. You may not be able to resolve everything. Plan to address your biggest problem first. On the receiving end of a renegotiation request? Analyze and understand what’s critical to the other side, what points you can’t budge on, and where you may have some room to negotiate. Decide if it’s worth giving a little to avoid the deal falling apart – or if it isn’t.
  2. Propose a renegotiation: If you’re the party seeking the renegotiation, once you’ve identified the issues, confront all parties involved and actually propose a renegotiation. Clearly articulate why you view components of the contract – or results that came out of the contract – as problems, and back that up with convincing evidence. Odds are that the opposing side will be willing to sit down and consider alternatives. Most people have a desire to be fair, especially if you’re able to back up your claims with evidence – and even if they’re not feeling charitable, they may choose renegotiation over an expensive lawsuit.
  3. Understand the dynamics: Negotiations for new business deals are often positive, with the parties sharing an optimistic view of the deal’s potential. But renegotiation often takes place somewhere between dashed expectations and the threat – or actual filing – of a lawsuit. Understand that the same negotiation strategies you employed the first time around may not be the right choice now, and that you and your adversary know more about each other than before. This reality can be either a curse (you let your adversary exploit what they know to their own advantage) or a blessing (here’s an opportunity for you to use what you learned during the first go-round to get a more advantageous deal). 
  4. Create value: A gain for you doesn’t need to be a loss for them – it’s in your best interest to provide some benefit to the opposing party in your proposed resolution. You’ll accomplish nothing if you both enter the renegotiation unwilling to give an inch. Create an atmosphere of cooperation and see how you can come to at least a win-not-lose solution.
  5. Take your time: With urgent problems, it’s common for negotiators to push for a quick fix to alleviate the stress. But the flawless plan you negotiate today may not work for you three years from now. (Isn’t that why you’re at the renegotiation table in the first place?) Take the time to consider negotiating shorter-term deals that will allow for natural breaks for renegotiation. Both parties can come back to the negotiation table and discuss what works for their businesses after the short contract concludes.

Whether you want to renegotiate because your original plan has unintended consequences, or you just want to see if you can get more out of your deal, keeping the above tips in mind will help your renegotiation plan succeed.

2020 Changes to Minimum Wage and Overtime Exempt Salary Threshold

Posted: January 6th, 2020

It is that time of the year again. 2020 is here and New York State has once again increased the minimum wage and the overtime exempt salary threshold effective December 31, 2019.

Minimum Wage Increase
Employers generally must pay nonexempt employees at least the minimum wage.  Minimum wage throughout New York may vary based on the employer’s size, geographic location, or industry.  There are different hourly rates for workers in the fast food industry and those who receive tips.  The table below outlines New York’s 2020 minimum wage:

Geographic Location 2020 Rate
NYC (11 or more employees) $15.00 per hour (no change from 2019)
NYC (10 or fewer employees) $15.00 per hour
Nassau, Suffolk, and Westchester counties $13.00 per hour
Remainder of NY $11.80 per hour

The minimum wage is expected to increase annually until it reaches $15.00 per hour by the end of 2021 for all of New York State.

Increased Salary Threshold for Overtime Exemption

Both federal law (Fair Labor Standards Act (FLSA)) and state law (New York Minimum Wage Act and applicable regulations) generally require the payment of overtime wages for work performed after 40 hours per week.  However, there are exemptions for certain salaried employees from federal and state minimum wage and overtime pay requirements.  In addition to New York’s minimum wage increase, the minimum salary that must be paid to workers classified as exempt under New York State Labor Law’s administrative and executive exemptions increased for 2020. As with minimum wage, the salary thresholds vary depending on the employer’s location and the number of employees.  The table below outlines the revised salary thresholds in New York State:

Geographic Location 2020 Salary Threshold*
NYC $1,125.00 per week ($58,500.00 annually)
Nassau, Suffolk, and Westchester counties $975.00 per week ($50,700.00 annually)
Remainder of NY $885.00 per week ($46,020.00 annually)

*Numbers provided are pursuant to New York State law and are higher than the federal FLSA thresholds.  Employees must meet certain duties tests in addition to their earnings or they will otherwise be eligible for overtime pay.

Employers should review their wage and hour practices annually to ensure that their employees are properly classified as exempt or non-exempt and that current minimum wage and overtime rates are being paid to qualified workers.  Take advantage of the new year to give your practices a fresh look.

We counsel employers on compliance with all federal, state, and local laws that impact the workplace. View more on our Labor and Employment page.

If you have questions about minimum wage, overtime, or wage and hour exemptions, please contact us here or call (631) 738-9100.

Newsmaker of the Year: Campolo’s Leadership Helps Shine Spotlight on Long Island Innovation Park at Hauppauge

Posted: January 6th, 2020

Renamed in 2019, the Long Island Innovation Park at Hauppauge is finally getting the investment and attention it deserves thanks to HIA-LI’s relentless focus on growing this economic engine, spearheaded by HIA-LI Board Chairman Joe Campolo and HIA-LI President and CEO Terri Alessi-Miceli. These efforts earned a spot in LIBN’s 2019 roundup of the year’s top stories, “Newsmakers of the Year.”

HIA-LI fostering growth at industrial park

A new task force at HIA-LI is set to implement an action plan to optimize the long-term economic impact of the 1,400-acre Long Island Innovation Park at Hauppauge (up until recently was called the Hauppauge Industrial Park).

The action plan is based on the recommendations of the 160-page opportunity analysis by the Suffolk County IDA and Regional Plan Association that was released earlier this year. Leading the analysis was James Lima of James Lima Planning + Development, a New York City-based planning firm whose client list includes Facebook, several agencies for the City of New York, the University of Tennessee and other villages, cities and foundations.

A 41-year-old organization, the HIA-LI serves as the voice of the industrial park, where 55,000 people are employed. The park delivers $13 billion in annual output, according to the HIA-LI.

The report’s findings show that the park is the “undisputed anchor of Long Island’s ‘tradable’ economy,’” which brings “new dollars and commerce into the region,” according to a press release about the new task force.

Read the rest of the article here. For more details on the Innovation Park Opportunity Analysis and plans for growth, read Joe Campolo’s remarks from the 2019 HIA-LI Business Achievement Awards here.

Hon. Andrea Harum Schiavoni Elected Suffolk County Family Court Judge

Posted: December 31st, 2019

Campolo, Middleton & McCormick congratulates our colleague and friend Hon. Andrea Harum Schiavoni on her election as a Suffolk County Family Court Judge as of January 1, 2020. To serve in this role, Schiavoni will vacate her role as Southampton Town Justice, where she was first elected in 2008. She will also leave her role at CMM, where she has spent the past several years focusing on commercial, family, and matrimonial mediation, real estate deals, and transactional matters for our East End clients.

In addition to her work at CMM and as Southampton Town Justice, Schiavoni was appointed to establish a Justice Court in the Village of Sag Harbor in 2010 and serve as its first justice and, in 2013, was appointed by then-Chief Administrative Judge A. Gail Prudenti to start a Veterans Treatment Court on the East End. She is a recognized authority in alternative dispute resolution, with significant experience working as a mediator and arbitrator, which will undoubtedly serve her well in her new role in Family Court.

Senior Partner Scott Middleton, head of our East End practice, said, “On behalf of all of us at CMM, we congratulate Andrea on this fantastic opportunity as she embarks on a new chapter in her distinguished legal career.”

David Green Promoted to Senior Associate

Posted: December 31st, 2019

Campolo, Middleton & McCormick is thrilled to announce that litigator David Green has been promoted to Senior Associate as of January 1, 2020. He is an incredibly hardworking member of our team whose creative thinking and results-oriented approach to handling our clients’ legal matters have earned him this promotion.

David represents all types of businesses and individuals in various areas of litigation. He has spent many years in courthouses fighting for clients and developing a reputation as an attorney with knowledge, skill, and talent. He has secured tens of millions of dollars for clients, managing cases from intake through inception. The University of Delaware and University of Miami School of Law graduate has been recognized as a Super Lawyers Rising Star in 2018 and 2019.