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

Posted: June 21st, 2019

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By Michelle Toscano

This year marks the 50th 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.

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.

HIA-LI Launches Task Force to Implement Recommendations of Innovation Park Opportunity Analysis

Posted: June 20th, 2019

HIA-LI, Long Island’s leading force and economic engine for regional development and the steward of the Long Island Innovation Park at Hauppauge (formerly the Hauppauge Industrial Park), has launched a task force to begin implementation of the recommendations of the Opportunity Analysis recently completed by the Suffolk County IDA and Regional Plan Association. Members of the Innovation Park Task Force include Terri Alessi-Miceli, President & CEO of HIA-LI; Joe Campolo, Managing Partner of Campolo, Middleton & McCormick, LLP and Chairman of the HIA-LI Board of Directors; Carol Allen, President & CEO of People’s Alliance Federal Credit Union; Anthony Manetta of HB Solutions; Rich Humann, President & CEO of H2M Architects + Engineers; Jim Coughlan, Principal of TRITEC Real Estate Co.; Bob Quarte, Managing Partner of AVZ Certified Public Accountants; Jack Kulka of the Kulka Group; and Kevin O’Connor, President & CEO of BNB Bank.

The Opportunity Analysis revealed after months of research, interviews, and studies that the Park is the anchor of Long Island’s tradable economy – those industries that bring new dollars into the region. Comprised of Long Island power players and stakeholders in the Park, the Task Force has already begun work on critical economic strategies recommended in the Opportunity Analysis to capitalize on this unparalleled growth opportunity. The group is focused on programs to facilitate business growth, attract and retain key knowledge workers, strengthen training and workforce development, promote innovation, and build connections and partnerships among businesses, government, and institutions.

On Long Island as a whole, tradable industries are small, making up only 23 percent of Nassau and Suffolk’s economy, compared to a national average of 36 percent. However, the Opportunity Analysis revealed that 58 percent of the jobs in the Park are in tradable industries.

“These findings confirmed and expanded all of our conclusions and suspicions about the Park,” said HIA-LI Board Chairman Joe Campolo. “Our mission now is to accelerate this growth by relentlessly spreading the word about the Park as the region’s premier hub for growing businesses, and to continue building bridges between the public and private sectors to truly make an enormous impact.”

“While the Long Island Innovation Park at Hauppauge already delivers tremendous economic benefits for Long Island, we’re working on a specific and strategic plan to truly maximize the Park’s long-term potential,” said Terri Alessi-Miceli, President and CEO of HIA-LI, “and the members of this Task Force have the expertise to transform its vision into a reality.”

The IDA and RPA Opportunity Analysis was led by James Lima of James Lima Planning + Development, a national NYC-based planner who has worked with Silicon Valley giants to help build their campuses and ecosystems.

Malafi featured in “Dropped from the Drug Test” in LIBN

Posted: June 20th, 2019

By Bernadette Starzee

A new law in New York City will prohibit most employers who operate there from conducting pre-employment drug testing for marijuana.

The law was passed last month and will go into effect May 10, 2020.

Certain positions, such as police officers, construction workers, commercial drivers, and workers caring for children or medical patients, among others, were excluded from the law.

About 2.8 percent of workers and job applicants tested positive for marijuana in 2018, according to Quest Diagnostics statistics.

Supporters of the New York City law said it would knock down a barrier that blocks people from employment based on private behavior and not ability to do the job. They also pointed out that marijuana can remain in the system for extended periods of time.

“If you ingest weed in whatever manner a month ago, I’m not sure how that prevents you from doing a job now,” Public Advocate Jumaane Williams, a Democrat who sponsored the proposal, told the New York City Council.

But not everyone agrees. “Private businesses should have the power to determine their own hiring practices – not just in deciding what skills and experience are relevant to certain positions, but also whether the use of a specific drug could have an adverse impact on a perspective employee’s ability to perform,” Council Republican Leader Steven Matteo said in a statement.

While recreational marijuana use is now legal in many states, it is still illegal in New York. But the city’s employment laws are among the nation’s most protective of workers.

With the passage of the new law, companies with operations in New York City that have drug testing policies “need to use this grace period before the law takes effect to change their policy or procedure,” said an expert.

He is advising clients with offices in New York City to stop testing for marijuana now, rather than waiting for the deadline to take effect. He said it is also likely that similar laws will pop up elsewhere across the state.

Though recreational marijuana use is illegal in New York, the state has a legal medicinal marijuana program, as do most states. Medical marijuana users in Massachusetts, Connecticut and Rhode Island have won lawsuits in recent years against companies that rescinded job offers or fired workers because of positive tests for pot. A number of businesses around the country have simply stopped testing job applicants for marijuana.  

“Over the past few years, a number of laws have been passed that require companies to be more careful about what they ask before offering prospects a job,” said Christine Malafi, senior partner and chair of the corporate department at Ronkonkoma-based Campolo, Middleton & McCormick. For instance, laws limiting the use of criminal background checks and prohibiting companies from asking about salary history have gone into effect in various jurisdictions.

“In this environment where unemployment is pretty low and where marijuana is becoming ever more socially acceptable…employers are either philosophically or practically having to take a long, hard look at whether they’re even going to screen for pot,” said Michael Clarkson.

The Associated Press contributed to this article. Read the full article here.

LIBN article “HIA-LI Fostering Growth at Industrial Park” features Campolo’s Task Force

Posted: June 17th, 2019

By Adina Genn

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.

“These findings confirmed and expanded all of our conclusions and suspicions about the Long Island Innovation Park,” Joe Campolo said in a statement about plans to move forward with implementing key recommendations. Campolo is the managing partner of Campolo, Middleton & McCormick, a law firm in Ronkonkoma, who serves as chairman of the HIA-LI board of directors,

According to the analysis, there is room for growth at the park. The report found that this is especially so in tradable industries. These industries in the region make up 23 percent of Long Island’s economy, while the national average is 36 percent. The study also found that “58 percent of the park’s workforce represents jobs in tradable industries, a figure two-and-a-half times greater than that of Long Island as a whole.”

Now, the task force is focusing on five strategic areas to realize growth. These areas include facilitating business growth, attracting and retaining key knowledge workers, strengthening training and workforce development, promoting innovation, and strengthening connections with businesses, government, and institutions.

“Our mission now is to accelerate this growth by relentlessly spreading the word about the park as the region’s premier hub for growing businesses, and to continue building bridges between the public and private sectors to truly make an enormous impact,” Campolo said.

“We’re working on a specific and strategic plan to truly maximize the park’s long-term potential,” Terri Alessi-Miceli, HIA-LI’s president and CEO, said in a statement. “The members of this task force have the expertise to transform its vision into a reality.”

Members of the Innovation Park Task Force also include Carol Allen, president and CEO of People’s Alliance Federal Credit Union; Anthony Manetta of HB Solutions; Rich Humann, president and CEO of H2M Architects + Engineers; Jim Coughlan, principal of TRITEC Real Estate; Bob Quarte, managing partner of AVZ Certified Public Accountants; Jack Kulka of the Kulka Group; and Kevin O’Connor, president and CEO of BNB Bank.

Read more here.

Malafi featured in LIBN article “Getting on Board the Training Train” on New Sexual Harassment Laws

Posted: June 17th, 2019

By Bernadette Starzee

By Oct. 9, employers throughout New York State must provide anti-sexual harassment training to all of their employees. But as the deadline looms, many companies have not started the training yet.

Many small businesses don’t have counsel, and they might not be cognizant of all of their responsibilities as an employer. But under New York law, all employers who operate in the state were required to have a sexual harassment prevention policy in place by last October. They were given a year after that to complete the training (though all workers in New York City had to be trained by April 1, 2019). The training must be repeated on an annual basis, and new employees must be trained shortly after they are hired.

Many attorneys with a concentration in employment law have been conducting training to help their clients comply with the new requirement.

Campolo, Middleton & McCormick, a law firm based in Ronkonkoma, will offer training sessions for employees of multiple companies in its training room next month.

“A lot of businesses have not complied yet, and there are many companies with just a few employees who don’t want to spend the extra funds to have a private training session,” said Christine Malafi, senior partner and chair of the firm’s corporate department. “This is a more economical way for them to do it.”

New York State also makes online resources available for employers to provide training. But while training can be completed online, in-person training has certain advantages.

In these live sessions, managers and employees are able to hone in on the questions that are relevant to them and address concerns that are uppermost in their minds.

Over the last several months, Malafi has been engaged by several chambers of commerce to provide anti-sexual harassment training to groups made up of their member businesses.

At these sessions, several participants recounted incidents that had happened to them in the workplace and asked if they should report them, Malafi said.

“The sessions made people more aware of what constitutes proper behavior and improper behavior in the workplace,” Malafi said. “In most of the complaints, in my opinion, the employee who is doing the offensive conduct is not aware that it is offensive to the other person, because the two individuals don’t take it the same way.”

The sessions provide a lot of back and forth on issues such as physical contact in the workplace.

“Someone might say, ‘What’s the big deal if I put a hand on someone’s shoulder?’” Malafi said. “I say you shouldn’t do it. You have to be cognizant about how the other person feels, and rather than make a mistake about how they would feel about it, it’s better to just not do it.”

With the diverse pool of people in the workforce – who come from a wide range of backgrounds and generations – different actions can be interpreted in many different ways.

“You might have people ranging in age from 19 to 80 in a workplace, and the age difference can make a gigantic difference in how people act,” Malafi said. “They might not realize how what they’re doing is offending people. With these sessions, there is a dialog back and forth. People feel comfortable because I’m not their supervisor or employer, so they feel more comfortable having an open discussion.”

Campolo, Middleton & McCormick offers two types of training sessions – one for managers and supervisors, and one for non-management employees.

The session for management has an extra component. “New York State does not require separate training for managers, but we feel it is extremely important that they receive extra training because the new law places responsibilities on managers and supervisors that did not exist before,” Malafi said.

Read more here.

Register for our sexual harassment prevention training sessions here.

CMM Cares Bowling Fundraiser

Posted: June 17th, 2019

Event Date: July 30th, 2019

Help CMM Cares raise funds to benefit Family Service League, our non-profit recipient this year.

Whether you throw strikes, spares or gutter balls, join us for an evening of bowling, food, drinks, networking, and some friendly competition!

Bowlers can register individually, as a team or can take advantage of our sponsorship opportunities. Registration includes two hours of bowling, shoe rental, food, drinks and open bar.

Prizes and awards to the best (and worst) team! Register here.

Lucky Strike Sponsor $1,000

  • Two lanes reserved for 2 teams of 5 bowlers, 2 hours of bowling, food, drinks & shoe rentals
  • Newsletter & social media recognition
  • Name & logo on event program & signage

Spare Sponsor $750

  • One lane reserves for your team of 5 bowlers, 2 hours of bowling, food, drinks & shoe rentals
  • Social media recognition
  • Name & logo on event program

Bowling Team $500

  • Team of 5 players, 2 hours of bowling, food, drinks & shoe rentals

Individual Bowler $125

  • 2 hours of bowling, food, drinks & shoe rental for one

Spectator $75

  • Food & Drinks!

About CMM Cares

In honor of the firm’s 10th anniversary in 2018, we launched CMM Cares, a volunteer initiative to benefit the Long Island community with donations of time, dollars, and support. Sponsorship dollars will offset the costs of our programming so that every dollar possible will go to organizations that need it.

Contact vtringone@cmmlp.com or mromano@cmmllp.com with questions. Please note: payment of sponsorships for CMM events and programming does not create an attorney-client relationship.

ADA Accessibility for Websites

Posted: June 14th, 2019

By Christine Malafi

The Internet has become a necessity for the marketing and promotion of businesses, services, and merchandise. An evolving legal issue is website accessibility for those with disabilities and the applicability of Title III of the Americans with Disabilities Act (“ADA”). Accessibility of public websites and compliance with the ADA in connection with public websites may cause issues for some time to come, especially given the lack of governmental regulations and guidance in this area. Nevertheless, it’s important for businesses to know where the law currently stands, as well as any potential liabilities which may arise from a failure to be in compliance.

The rise in legal cases brought on by allegations of the failure to provide ADA accessibility for websites has risen drastically. So far in 2019, over 350 New York area businesses have been impacted. Additionally, from 2017 to 2018, ADA website lawsuits increased a staggering 177%, rising from 814 in 2017 to 2,258 in 2018. It was New York State that led the nation in this increase, with 1,564 ADA website lawsuits made in New York during 2018.

The purpose of the ADA is to provide equal opportunity to individuals with disabilities, as well as to stimulate business by increasing the purchasing power of those with disabilities. Title III of the ADA specifically prohibits discrimination of individuals with disabilities “in the full and equal enjoyment of the goods, services, facilities, privileges, advantages, or accommodations of any place of public accommodation by any person who owns, leases (or leases to), or operates a place of public accommodation.” While the ADA is silent on the specific issue of website accessibility, case law has made it clear that the ADA applies to public websites, and businesses must accommodate individuals with disabilities and make their websites ADA accessible. Yet the extent to which websites must be made accessible has not been definitively determined. In December 2015, the Department of Justice (“DOJ”) announced that it would issue private sector website ADA accessibility regulations during fiscal year 2018. However, a 2018 Presidential Executive Order cut regulatory resources and subsequently froze the DOJ’s public accommodations website rulemaking, leaving many businesses unsure what the regulations will be. Questions remain as to whether all websites fall under the ADA and whether a website must also be tied to a physical location before it falls under the ADA, among others. However, recent Court decisions may help to shed some light on a company’s responsibilities.

In Robles v. Domino’s Pizza, LLC, 913 F.3d 898 (2019), the 9th Circuit Court of Appeals decided that the ADA applied to Domino’s Pizza’s website, that they had received fair notice they were not in compliance with the ADA, and that due process did not require the DOJ to issue specific guidelines for ADA compliance for Domino’s to be liable for failure to comply. In this specific case, the Plaintiff was unable to order online using the Domino’s website due to inaccessibility for screen readers, although a live person was available by phone to assist in the placement of an order; but, since the website facilitated access to a place of public accommodation, Domino’s was required to follow ADA guidelines. The 9th Circuit further stated that both websites and mobile applications had to satisfy a business’s obligations under the ADA. This case is significant because the Court considered, but rejected, the defense that the alternate option of a telephone hotline was sufficient to satisfy a company’s obligations under the ADA.

The 9th Circuit took a stricter position on the application of ADA guidelines to a website or mobile app, which is tied to a physical location, than the more expansive positions taken by Courts in Massachusetts, New York, and Vermont, holding that as a “place of public accommodation,” the alleged inaccessibility of Domino’s website and mobile app unlawfully prevented customers from accessing goods and/or services at their physical locations. This decision reversed the district court’s dismissal of the lawsuit and, although considered an outlier among similar Court decisions, could set precedent in determining similar lawsuits in the future.

Therefore, in the continued absence of DOJ regulations, and in light of the 9th Circuit’s decision, what should businesses do? Many settlements approved by the DOJ have implemented the World Wide Web Consortium’s Web Content Accessibility Guidelines 2.0 (WCAG) on how to make a website more accessible. At the most basic level, an ADA accessible website should provide these (and other) types of features:

  • Text alternatives for any
    non-text content;
  • Alternatives for time-based
    media;
  • Content that can be presented
    in different ways (for example simpler layout) without losing information
    or structure;
  • Be easy to see and hear,
    including separating foreground from background;
  • Permit all functionality from a
    keyboard if needed (as opposed to a cursor);
  • Permit sufficient time to read
    and use content;
  • Not be designed in a way that
    is known to cause seizures or physical reactions;
  • Include ways to help users
    navigate, find content, and determine where they are;
  • Allow users to operate
    functionality through various inputs beyond the keyboard;
  • Provide text content that is
    readable and understandable;
  • Have web pages operate and
    appear in predictable ways;
  • Help users avoid and correct
    mistakes; and
  • Maximize compatibility with
    current and future user agents, including assistive web technologies.

The best option for business owners to not fall victim to a successful Title III suit is to comply with these WCAG guidelines.

However, it may not always be deemed “reasonable” for businesses to create a fully ADA compliant website. As is stated in the ADA: “A public accommodation shall make reasonable modifications in policies, practices, or procedures, when the modifications are necessary to afford goods, services, facilities, privileges, advantages, or accommodations to individuals with disabilities, unless the public accommodation can demonstrate that making the modifications would fundamentally alter the nature of the goods, services, facilities, privileges, advantages, or accommodations. “ 28 C.F.R. § 36.302 (2012).

If making your website fully compliant with the WCAG is too costly for your company, other options may be available. Although New York courts have yet to address this specific issue, others have. In National Federation of the Blind v. Target Corp., Target was sued because its website did not enable visually impaired persons to directly purchase products, redeem gift cards, or find stores.  The court ruled against Target, as Target failed to show that the information on its website was available in another reasonable format. The court acknowledged ADA defines discrimination to include a failure to take such steps “as may be necessary to ensure that no individual with a disability is excluded, denied services, segregated or otherwise treated differently than other individuals because of the absence of auxiliary aids and services, unless the entity can demonstrate that taking such steps would fundamentally alter the nature of the goods, service, facility, privilege, advantage, or accommodation being offered or would result in an undue burden.” 42 U.S.C.S. § 12182(b)(2)(A)(iii). The court specifically noted the following examples of accessibility: “if a menu cannot be read by a blind person, the restaurant need not make the menu available in Braille; the restaurant could ensure that waiters are available to explain the menu”; and “while a bookstore must ensure that it communicates with its customers in formats which accommodate the disabled, a bookstore is not required to stock books in Braille.” Courts therefore recognize that there may be significant limitations on the possibility of making a website completely or fully ADA accessible.

The Court in Robles v. Domino’s Pizza, LLC, held that an alternative means of access to a website has to be proven sufficient and effective in assisting customers who are disabled. This could prove to be a costlier endeavor than making the website itself accessible, and businesses should take this into consideration when they are deciding how best to make their websites compliant with ADA guidelines.

Absent further guidance, businesses and individuals with public business websites are urged to ensure accessibility. At CMM, we are available to assist and guide you on this issue.

CMM Hosts Cutting-Edge International Business Seminar, “Grow Local, Go Global”

Posted: June 13th, 2019

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Recognized for being on the cutting edge of legal and business issues, Campolo, Middleton & McCormick hosted the first in a series of international business panels on June 13, 2019, featuring a panel of legal, accounting, and M&A experts discussing a host of issues facing U.S. companies doing business abroad. “Grow Local, Go Global: Your Roadmap for Doing Business Internationally,” co-hosted by Protegrity Advisors, featured a wide-ranging discussion about international business law in the EU, international tax practices, EU GDPR data compliance, the opportunities and difficulties presented by Brexit, and other issues for local businesses to consider when expanding or operating overseas. CMM Managing Partner Joe Campolo moderated the panel, which included Gregg Schor, Chairman of CMM International and CEO of Protegrity Advisors; Alan Sasserath, Partner of Sasserath & Zoraian, LLP and international tax expert; Dr. Justus Fischer-Zernin, Partner and Solicitor at Hanselaw Hammerstein & Partners in Hamburg, Germany; and Geert Somers, Partner and Attorney at Timelex in Brussels, Belgium.

In attendance were Long Island businesses who had questions about expanding overseas or how to deal with issues with their existing global operations. In an in-depth discussion enhanced by a wealth of personal experience provided by the panel, local businesses learned the importance of building an international network and obtaining local counsel to use as a resource when they want to expand overseas. Some highlights from the panel include: 

  • Authorities in the EU have begun to crack down on the implementation of the GDPR data and privacy protection laws. These laws apply not just to companies located in, or with a physical presence in Europe, but also to businesses who offer products and services to the EU. GDPR compliance is now at the top of the list when checking out an international company’s due diligence.  
  • Real estate laws are not uniform across the EU; however, bank financing of investment properties is regulated by governments.
  • When performing consulting work in the EU without establishing a permanent presence there, a U.S. business will not need to pay taxes; however, it should be noted that there are certain thresholds for what equates to a “permanent establishment” and the longer or more frequent the consulting work is, then that threshold may be met.
  • When providing consulting work overseas, specifically in the architecture and engineering fields, the first question a business must ask is whether they have the equivalent or necessary certifications to supply services in their targeted country. 
  • When a business wants to expand into Europe, what country should they choose? The panel suggested doing research regarding the potential customer base, with Sasserath stating that the U.S. government can provide some fact finding regarding potential overseas customer bases for a fee. They also suggested assessing the tax situation of the recipient country beforehand. Dr. Fischer-Zernin advised that setting up a subsidiary would be easier than a branch, because a subsidiary can operate the same way as all other companies in that country and thus offer fair and equal competition. Somers noted that many U.S. businesses expand into Brussels due to the prevalence of English spoken there and the fact that it is conveniently located within Europe.
  • One issue for local businesses to consider is the relative difficulty of finding, hiring, and firing employees in Europe compared to the States. Schor advised U.S. businesses to be careful and to find a distributor overseas who is in line with their interests, as well as to negotiate a contract that provides exclusivity and some guarantee of profits. He also recommended negotiating an exit strategy going in, so that U.S. businesses are aware of all local laws that will apply if they must relocate or close an overseas branch.
  • Regarding Brexit, both Dr. Fischer-Zernin and Somers noted that the United Kingdom will still mostly have to follow European Law when doing business with the EU and that many U.S. businesses who once used the U.K. as a gateway to Europe are now opening branches in Ireland and Amsterdam instead. Sasserath, however, assessed that U.S. businesses should not have a fear of the unknown when contemplating expanding into the U.K., should continue to take informed, measured steps when doing business, and that there would be more opportunity for U.S. businesses to go into the U.K. and access a market due to Brexit. Schor stated that from an M&A perspective, the market was very healthy, and that Brexit would likely lead to more U.K. investment in the States.

CMM, through its CMM International offering, plans for this informative, important and increasingly relevant discussion to become the first of many events addressing the benefits, potential pitfalls and basic guidelines of doing business internationally. For specific questions regarding your personal situation, please contact our office.

The RISE Act: Suffolk County Bans Inquiring About Salary History

Posted: June 13th, 2019

Suffolk County employers, take note: effective June 30, 2019, employers in the county will be barred from asking about a job applicant’s salary history during the hiring process or relying on any such information to determine compensation.

The change is the result of the Restricting Information on Salaries and Earnings (“RISE”) Act, which amends the Suffolk County Human Rights Law and applies to employers with four or more employees (read more here). Under the new legislation, inquiring about a candidate’s salary history (including compensation and benefits), whether orally, in writing, on an application, or otherwise, or conducting research into the candidate’s salary history, is prohibited. The law also bars employers from relying on a candidate’s salary history in determining his or her compensation at the new company at any stage of the hiring process – including at the offer or contract stage.

Penalties for violating this law will include compensatory damages to the individual as well as payments to Suffolk County, up to $50,000. Fines could reach $100,000 if the violation is found to be willful, wanton, or malicious.

The intended purpose of the legislation is to help eliminate the gender wage gap, as well as wage inequity for employees from minority groups. In other words, the law is intended to give employees coming from lower paying jobs an opportunity to not be weighed down at their new positions.  The belief is that employers will focus more on the local job market to determine the appropriate wages.

While a salary history ban has not been implemented statewide, Suffolk County joins a number of areas in the state, including Westchester County, Albany, and New York City, that have already passed such legislation. (Please contact us for additional guidance if your business operates in any of these regions.) A statewide bill may go to the State Senate for a vote during 2019.

Employers should update their employment practices as soon as possible to comply with the new law, which takes effect at the end of this month. Removing any references to salary history on your application forms is a critical first step. All employees who conduct interviews and participate in the hiring process should also be trained in compliance with the new policy.

This law comes on the heels of the new sexual harassment laws passed in New York State during 2018. This updated legislation now requires employers to have both a sexual harassment prevention policy, as well as annual sexual harassment training for all employees which starts no later than October 9, 2019.

If you have questions about the RISE Act, or about your sexual harassment policy and training, please contact us.

Thank you to Michelle Toscano for her assistance with this article.