The Quarterly Associations Publication of: Construction Contractors • Sheet Metal & Roofing Contractors • Fabricators Erectors & Reinforcing Contractors
On the SPRING 2020
The New Norm
Working to Navigate Life in a Covid-19 World HOW TO STAY SAFE AND SOUND AND OPEN FOR BUSINESS
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HOW COVID-19 IMPACTED PROJECTS AROUND THE REGION
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The Quarterly Association s Newsletter Constructio of: n Contractors • Sheet Metal & Roofing Contr
actors • Fabric
ators Erecto
rs & Reinforcing
On the LEVEL offers in-depth coverage and analysis of construction news, provides health and safety information, financial and economic insights, and authoritative comment from industry experts on laws and regulations affecting contractors. To contribute stories, advertise in future publications, or learn more about our products and services contact: Barry Lewis, Editor: blewis@ccahv.com Patty Dalton, Advertising: pdalton@ccahv.com 845-562-4280 info@ccahv.com ccahv.com 330 Meadow Avenue Newburgh, NY 12550
ON THE LEVEL:
33 BEFORE COVID-19 BECAME WIDE-SPREAD BUSINESS AND LABOR LEADERS WARNED OF COMPLACENCY
Contractors
43 WORKERS COMPENSATION & COVID-19
47 GOING BACK TO WORK – A PLAN FOR YOUR WORK PLACE
BOARD OF DIRECTORS Construction Contractors Association Scott Dianis – President Dan O’Kane – 1st Vice President Mark Stier – 2nd Vice-President Mike Adams – Secretary-Treasurer Ron Bloomer David Campbell Ira Gold Jay Harrison Joseph Jerkowski Robert Kaehler James McGowan Joseph Perez Paul Taphorn Alfred D. Torreggiani Charlotte Van Horn
SMACNA of Southeastern NY Lou Doro – President James D’Annibale – Vice President Steve Mulholland – Secretary Daniel C. Harden – Treasurer Mark DiPasquale –Past President Michael Briggs Walter “Chip” Greenwood William Haskel Dennis LaVopa, Jr. Leonard Train Association Staff: Alan Seidman – Executive Director Barry Lewis – Vice President of Communications & Member Services Alan Creais – Director of Membership Patty Dalton – Executive Assistant Millie Rodriguez – Administrative Assistant
Fabricators, Erectors & Reinforcing Contractors Association Justin Darrow – Chairman Jake Bidosky, III – Vice-Chairman Bernie Hillman – Secretary Daniel Teutul – Treasurer S P R I N G 2 0 2 0 Q U A RT E R LY P U B L I C AT I O N
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DIRECTOR’S MESSAGE WOW!!! The polite way to
through them. While we mourn the loss of those we have lost,
open, rather than what we’re
through the COVIC-19 pandemic, we will survive as a nation
all thinking……..
and come to realize there is a new norm. Let’s hope the medical
Today’s reality is surreal to be polite, but I also believe some of what is going on,
community comes up with a vaccine and we are able to move past social and workplace separation (maybe even get back to shaking hands).
will be the “new norm,” or
Some members have already run into problems getting
at least the norm for the next
compliance from employees not wanting to wear masks or
12-18 months. Work site
maintain distancing. To those that want to play “Russian Roulette”
distancing, masks on job sites, more work from home for office
thinking they are immune somehow, I can only say, you’re
staff will all be part of the norm.
endangering the life of everyone you come in contact with. I call
Prior to 9/11/2001, in this country, you never had to worry about TSA and stringent airport security. As that has become our norm for travel, the virus and health protection we are seeing, will not go away quickly. In the old days, you didn’t want to go into a bank and see someone with a mask on, now you don’t want to see anyone in any jobsite, without a mask on. I have lived through the Cuban Missile Crisis, the assassination of President Kennedy, Iranian Hostage crisis, various medical scares, such as HIV/AIDS, SARS, Swine Flu and Zika. We
that stubbornness and ignorance. The wild and rampant spread of this virus in a 3-4 month period, documents how dangerous it is. The macho and stubbornness doesn’t work now! You are placing not only your health and life in jeopardy, but those you work with and those you go home to! Please be careful!!!! I firmly believe we will be back financially and business wise. We can’t replace those we have lost and there aren’t words to describe those losses. Work and the investment market will be back. It will take some time, but we will recover.
have experienced 9/11, armed conflicts and wars and various
I hope the one thing that we don’t forget, is the great
economic ups and downs… but WOW, nothing to the magnitude
appreciation we have shown to our first responders and hospital
of our current challenges.
staffs. To our police, EMTs, fire personnel and our nurses and
We all know of someone who has passed during the current
doctors that are on the front lines every day, THANK YOU!
crisis and behalf of our Boards, I want to offer condolences to
To our Governor, our County Executives and all those making
those that have lost a loved one. To those that have faced the
the tough decisions, thank you for your leadership. These are
illness and recovered, we are all glad you are here!
trying times and there are always Monday morning quarterbacks
We face a challenge to our economy like most of us wouldn’t have imagined: • Savings and retirement accounts decimated; pension
funds tested to the max.
appreciative of your guidance. To our members and unions that have donated masks, gloves and food to our hospitals, please know that I am personally very appreciative and proud to work with you. Our members always
• Businesses shut down temporarily, but will they be able
that think they could do better, but I for one am truly
to reopen on the “other” side?
rise to the challenge and this time is no exception. May you and your families stay well and safe.
• Employees laid off. The hardships to them financially. Since the founding of the United States, history tells us of the many challenges and crisis’ we have faced as a nation. We have recovered from severe weather storms, the so-called Spanish
Alan Seidman Alan Seidman
Executive Director
Flu of 1918 and The Great Depression to name just a few of our challenges. Those times were monumental for those that lived
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COVID-19: Businesses Work to Navigate Through the New Norm By Barry Lewis, Vice President of Communications for CCA
The impact of the COVID-19 pandemic on all countries, people, and industries has been undeniable. The newest strain of coronavirus has sent economies all over the world into a tailspin as quarantines and social distancing measures put in place by governments have all but halted economic activity. In the span of two months, the coronavirus crisis has demanded sweeping changes from the construction industry, and experts say many of them will remain in place even after the outbreak recedes. As the coronavirus continues to upend everyday life, construction (for the most part) is considered an essential business but that doesn’t mean everything is business as usual. In addition to trying to protect workers, especially on jobsites where outbreaks are occurring, construction business owners are having to deal with the challenges of our new normal.
continued...
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COVID-19: Businesses Work to Navigate Through the New Norm These include having projects being put on hold due to
materials and equipment shortages have caused massive
funding and financial uncertainty. Road construction and
layoffs and furloughs to workers. Memories of the Great
highway projects are being postponed due to a reduction
Recession are still on the minds of many as they try and
of gas tax revenue caused by everyone staying at home.
navigate through these uncertain times.
Hospitals are hitting pause on new construction as
As contractors prepare to return to work on sites that
they focus on dealing with the coronavirus pandemic.
have been shut down by shelter-in-place initiatives, they
Restaurants, retail stores, and hotels are all readjusting
will face an industry that has been drastically changed
construction plans.
by the both public health and economic effects of the
Contractors are also having to navigate force majeure and acts of god clauses as construction schedules are being forced to be extended in order to practice social distancing and adhere to additional safety measures.
pandemic. The future remains uncertain, as we’re still some time away from a working vaccine. However, there are still ways to manage the impact of COVID-19 in the construction industry.
Many construction companies are appending their safety
CCA members shared how their businesses have been
and operating plans to add pandemic response sections.
affected by the virus and how they are preparing for
In addition to cancelled projects, delays caused by personal protective equipment (PPE) and building
the future: blewis@ccahv.com
Andrew Harm, Senior Superintendent for Holt Construction was instrumental in helping lead the completion of a temporary hospital in just two weeks at Bergen New Bridge Medical Center in Paramus, N.J. Holt teamed with the U.S. Army Corps of Engineers, Bergen County and FEMA on constructing the two fully-equipped tents, the first of its kind for Army Corps temporary facility construction standards. It will serve as a treatment facility for acute, non-COVID related patients due to the influx of COVIDpositive patients in the main building. Harm, who lives in New Windsor, is part of Local 279 of the North Atlantic States Regional Council of Carpenters. He joined Holt 15 years ago after his carpenters union apprenticeship and time as a journeyman, and has been instrumental in many of the company’s healthcare projects.
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COVID-19: Businesses Work to Navigate Through the New Norm
Biggest Job Drop in Over 80 Years: The construction industry lost 975,000 jobs on net
March to 14.7% in April. This was the highest rate since
in April, according to an Associated Builders and
the BLS started tracking unemployment in 1948.
Contractors analysis of data released by the U.S. Bureau of Labor Statistics. This was the largest recorded decrease in construction jobs since the government began tracking employment in 1939, despite construction
Because of technical reasons related to the BLS survey and a classification error in several responses, the unemployment rate is probably closer to 20%.
remaining an essential industry in much of the nation UNEMPLOYMENT RATE
through April. Nonresidential construction employment lost 560,500 jobs on net in April. There were job losses in all three nonresidential segments, with the largest decline registered among nonresidential specialty trade contractors, which lost 393,100 jobs. Nonresidential building lost 88,500 jobs, while heavy and civil engineering lost 78,900 jobs. The construction unemployment rate was 16.6% in April, up 11.9 percentage points from the same time last year. Unemployment across all industries rose from 4.4% in
“A
Note: Seasonally adjusted, April 2020 figure reflects forecast of surveyed economists Source: Labor Department, The Wall Street Journal
lot of guys are making
down a job site for two weeks. We had that happen
as much money staying
for a bridge job.”
home as they would be working, only thing they have worry about is if they will qualify for benefits at the end of the year. Do they have enough hours in long term to be eligible for health and pension benefits? Are they going to meet the requirements?”
“When it’s all said and done six months or a year from now, will the state be building? I spoke to (State Sen. James) Skoufis and with the budget already cut there might be fewer projects in the year, but there will be the need for repairs. Hopefully, we don’t lose the whole building season. But these projects that are in the works eventually have to get done. There are only so many man
“There are new realities besides adding sanitizers
hours in a project. If it takes a million hours to
and hand-washing stations. If you have a worker
build Legoland then it will take a million hours,
who tests positive for COVID-19 that person must
regardless of when they say they’re opening.”
stay home for 14 days, as do any workers who came in contact with him. For contractors, that’ll mean either hiring replacement workers or shutting
ON THE LEVEL:
Todd Diorio, President Hudson Valley Building Trades
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COVID-19: Businesses Work to Navigate Through the New Norm
“S
ome of my concerns
people get the product. I don’t think people are
is how quickly the
going to want to sit close together in breweries.”
companies that were deemed essential can get back on their feet. The disruption in construction, contractors not having enough manpower to stay on schedule, is a real concern. I have concerns that the phones will slow up and not ring as much from different industries
who would normally look at our region. We are going to have to come up with different strategies, figure out what we can do to attract developers. Some of those strategic plans have yet to be written.”
“I think it’s going to be a little bit like 9-11. There are going to be companies that want to get the hell out of the city and don’t want to be that clustered, don’t want to be so close to other humans, maybe have to watch their bottom line better, change their way of doing business. More people are going to work from home and with remote access we don’t need to be captive to a large talent pool. Up here we can be tapped into the worker remotely. It has always been a help for us to be close enough to the city that we can get products to the masses in a very short distance. That has helped us through the years and will continue to help us.”
“In terms of food and beverage, companies still want to distill and manufacture a product. I think there will have to be a lot of creativity on how
“W
Maureen Halahan, President/CEO Orange County Partnership
e are not a local
“It’s hard to plan for the unknown. We have
business so on any
projects for 2020 and beyond into 2025. Whatever
given day we can be on 12 job
doesn’t get accomplished in 2020 will probably
sites in 12 different states. The
get pushed over into 2021. Everything in 2021
most challenging is to keep up
will still go so I anticipate a major backlog.
with the codes and regulations
We will have to be prepared to meet and exceed
as it relates to COVID-19. We
those demands. You have to start planning for
need to be aware of the policies
2021 today.”
and compliances with state regulations, but the developer may have additional regulations that can take you into worse case scenarios. Their requirements can go beyond the state to give them an extra cushion.”
“For people starting out I think there will be different types of opportunities in the industry, a lot towards safety, marketing and strategic planning. I don’t think you can emphasize enough how important efficiency and planning is going to be.Those companies that can adapt will succeed.”
Jim Smith, President Advance Testing 10
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COVID-19: Businesses Work to Navigate Through the New Norm
“T
he single biggest
have sheet metal workers, carpenters, laborers, its
concern I have right now
very hard to adhere to a six-foot rule. It doesn’t
is establishing work six months down the road and for me to start jobs six months down the road I need to have that job in my hand right now. I’ve got to have a building up before I can begin any work, regardless what kind of building it is – powerhouse, distribution center or a data
center. Ninety-nine and nine-tenths of my work is with a building.”
work on a construction site like that.” “My fear is six months down the road. What’s the work picture going to be? In 4-6 months the Coronavirus is going to be pretty much mitigated and not a factor anymore but what has that done to construction by delaying everything by two months. In my business any corporation that I work for, if they’re having money problems the first place that they go to is capital improvements and scratch that off. They’ll say, ‘I’m not going to put the new addition on the building this year, I’ll
“In terms of social distancing, guys don’t eat lunch
put if off to next year.’ It’s going to take maybe
together anymore, try to not work in crews of two,
a year or so before people can get their feet on
try to break the work down so its one-man jobs and
the ground and make business decisions that will
stuff like that so you don’t have people on top of
move things forward.”
one another. But that creates new problems. Think about Legoland. You’re in one of the buildings, you’ve got electricians, you have plumbers, you
“W
Robert Kaehler, President Perreca Electric
e do inspections.
“What will happen is all these places that are not
Every day we do
getting inspected will call us, when everything
inspections. Code is that by
opens up, we will be bombarded. Perfect example,
law, inspections of sprinklers
will they let the Galleria open if they haven’t
are done a minimum once a
been inspected. I don’t know? My bet is they’ll
year, sometimes quarterly. But
let them open and say, hey, get it inspected in the
if the building is closed how do
next 10 days. But the problem is, multiply that by
I inspect them? Galleria Mall is
100 customers. My office is open for emergency
closed. They have inspections
services. If a pipe breaks, I have to go fix it or it
that are due on the sprinkler
floods the building. We can only be in so many
systems in stores. I can’t inspect
places at one time.”
them because the place is closed. They don’t want me in the building.”
ON THE LEVEL:
Ira Gold, President Sullivan Fire Protection Corp.
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COVID-19: Businesses Work to Navigate Through the New Norm
“T
ele-medicine will be a
to see everything open, it’s always safety first. I
big part of our future.
see people congregating in the streets with their
People are seeing that in their
masks below their chins or on their head. Not
doctor’s office. I believe we will
covering their face or nose. Not social distancing.
learn from this.
We can have another outbreak.”
“Different treatments hopefully
“We’re taking a large hit. Not having elected
will protect us in the long run
surgeries can be financially devastating. Time will
from this disease. Vaccines will
tell. The financial impact could eviscerate this
be available, but that’s all in the
hospital if funding does come as we need. What
future. For the immediacy we
has helped tremendously is that Medicare has
will have single-entre so people who have elected
advanced us. It’s not a grant it’s a loan. But it’s
surgery can come in a separate entrance. We will
six months’ worth of payment and we don’t have
do in-house testing in under two hours so I’ll
to pay that back for six months. That’s what is
know before this patient goes into my operating
keeping us afloat today. I’m hoping we can keep
room if they are positive or negative. We will
everything intact. But I’m not 100-percent certain
view everybody as COVID-19 positive until
of that.”
proven otherwise.” “We have to learn from other countries and other states. If we open too early, then 14-days later we’re gonna see a surge again. As much as I want
“W
Joan Cusack-McGuirk, President/CEO Montefiore St. Luke’s Cornwall
e’re asking businesses
“Any event-related business that really relies on
to go above and
in-person contact is going to suffer. Even if the
beyond what’s recommended by
ban was released today and everyone can go back
the state and CDC, asking them
to normal will the confidence be there? I think of
to keep customers, employees and
the air show in Orange County and the Dutchess
themselves safe. If it’s noted by
County Hot Air Balloon Festival, where outsiders
your customers that you’re taking
come and spend money in our communities…
these precautions they will feel
without those festivals the economy will continue
more comfortable to go into your
to be sluggish. If we can figure out ways to adapt
environment. Eventually it will
and still host some of these events I think we will
subside when the virus subsides.”
be able bring some semblance of normalcy back
“Beyond events what’s going to attract people to the area eventually is the beautiful scenic Hudson Valley and all the amenities we have to offer. I think we’re not only going to experience an increase in traffic of people who want to visit just
and help the economy grow.”
Frank Castella, Jr., President/CEO Dutchess County Chamber of Commerce
to escape NYC but also to live and commute.” 12
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COVID-19: Businesses Work to Navigate Through the New Norm Tri-State Drywall & Acoustical employees, from left, Paul Long and Chris Russo don Protective Personal Equipment (PPE) while working on the expansion and renovation project at Montefiore St. Luke’s Cornwall Hospital in Newburgh.
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Cleaning Companies Emerge as Safety Specialists By Barry Lewis, Vice President of Communications for CCA
Cleaning companies are on the front lines of the coronavirus pandemic, tasked to carry a heavier workload, deal with increased demand, and head out into potentially contaminated spaces. Hudson Valley DKI technicians use high grade disinfectant throughout the Orange County Emergency Communications Center as a precautionary measure to help keep county employees safe.
With many government buildings, businesses and schools closed, but possibly exposed to the virus, local companies are working long hours to deal with a unique demand that also requires exceptionally stringent cleaning practices, in line with recommendations from the Centers for Disease Control and Department of Environmental Conservation. At the same time, they still scramble for the proper disinfectants and solvents, needing to secure all proper materials before handling a job.
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ON THE LEVEL:
WORKING TO KEEP THE AIR CLEAN Lou Doro, vice president of Clean Air Quality Service, Inc. based in Hawthorne, said that when municipalities began their initial lockdown in mid-March his company went out to customer sites to start disinfecting cooling coils on air conditioning and heating units where bacteria grows to ensure fresh air was getting into buildings. But now with businesses hoping to reopen the company has shifted manpower.
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Cleaning Companies Emerge as Safety Specialists “The priority now is for the installation of
have to be ultra-sensitive about it. I’m moving
ultra-violet disinfection systems,” said Doro,
in and out of nursing homes and other facilities
who is also president of the Sheet Metal and Air
and I wind up getting it from a family member.
Conditioning Contractors National Association
Fortunately, we’re all fine, but people have to
of the Hudson Valley. “We are receiving a lot of
realize how easily it spreads. Keeping the air
calls from medical facilities but mainly dental
clean is another form of prevention.”
offices that are planning to open back up in the coming weeks. Doro, who has been with CAQS for 21 years, says the biggest change in people’s attitude over the past two months is that they are no longer taking their air distribution system for granted.
“In the past what they had was good enough. Now they are aware they need to enhance, have a better filtration and not just a standard system. And where the service was typically quarterly it’s now monthly or even weekly.”
DISINFECTING HELPS – BUT ONLY TO A POINT Despite the fact that COVID-19 is not believed to live on surfaces for extended periods of time, there is still a benefit to disinfecting all surfaces, said Angelo Ferrante, president of Goshen-based Hudson Valley DKI, as his technicians made their early morning rounds to sanitize the entire Orange County Emergency Operations Center. “This is totally unprecedented for us, something we never thought we’d see or be involved in,” said Ferrante, whose business will usually do cleaning and disinfecting for the normal flu season. “Maybe a couple of cases a year for
Doro says he gained an ever-greater appreciation for the risks in dealing with COVID-19 after he and his family in early April tested positive for the virus.
different viruses but nothing where it becomes a good part of your business. I’ve never seen anything like this nor do we want to see this.” Ferrante says his company applies a
“I’m really pushing for the guys to be cautious. I was always concerned for safety, but I know we
hospital-grade disinfectant that will kill bacteria but allow workers to use their stations within continued...
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Cleaning Companies Emerge as Safety Specialists a few seconds. “We pay attention to all the individual workspaces - keyboards, desks, chairs – as well as all the common touch surfaces. Those are the real hot spots where indirect transmission between individuals can occur.” But Ferrante notes that the disinfectant being applied eliminates most viruses for only a period of time. If someone comes to work infected or is sick, they can re-infect any of these surfaces immediately. “Facilities should be following all CDC guidelines for wearing masks, social distancing and cleaning. Hand sanitizers and wipes should be used on a regular basis. All precautionary measures should be taken for employees.” He says the new normal for his businesses is to be on call for disinfectant emergency services. “Someone gets sick and they trace it back to a patron in a restaurant we’re going to have to run out as if it was an emergency call for water damage. People are going to want to be proactive to keep people coming into their facility.” blewis@ccahv.com
Jimmy Lynch, a HVAC/R service technician and computerized controls specialist technician for Clean Air Quality Service, Inc., of Hawthorne, N.Y., on the roof of the Town of Montgomery government office building to clean and disinfect the cooling coils of any bacteria or mold that might be in the heating and air conditioning unit, bringing fresh air into the building. Lynch, 34, from Wappingers Falls, is with the Plumbers and Steamfitters of Local 21.
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401(K) Investments are for the Long-Term SOME THOUGHTS ON THE CURRENT MARKET VOLATILITY By Lon Birnholz
Lon Birnholz is senior managing director of Matrix Asset Advisors, where he oversees Matrix’s fixed income portfolio management and heads up business development and client service activities. Lon@MatrixAssetAdvisors.com 212-486-2004
This has certainly been one of the most extraordinary and
the day-to-day news on coronavirus/COVID-19 and the
stressful investing environments of our lifetimes, due to
response to it. The markets will fluctuate dramatically,
the ‘sudden stop’ of the economy and the business impact
driven by fears of pandemic and recession on the one
related to the coronavirus and COVID-19 illness. Extreme
hand, and hopes for medical success and economic
market volatility is the new reality, with investors carefully
recovery on the other. It is difficult, if not impossible, to
watching economic indicators, market levels, corporate
try to invest with a one- to three-month time horizon with
performance, and political responses for hints about how
such broad uncertainties.
long and how deep the impending recession will be. And of course, the stress on each individual is multiplied by the health concerns for our families, our country and humanity.
But that doesn’t mean that investors should just exit the scene and go to 100% cash. For most investors, and virtually everyone with retirement assets in a 401(k) plan
For the near-term in this environment, the direction of
or similar type of accounts, the message is to ‘stay the
the financial markets is entirely unpredictable, driven by
course.’ If you have a 9- to 12-month investment horizon
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401(K) Investments are for the Long-Term and understand that prices can fluctuate wildly in the interim, you can buy strong businesses at great prices during these periods of market stress. We think there is a great likelihood that stocks will be meaningfully higher 12 months out, and that buying at current prices will ultimately be very profitable. At the moment, the stock market is being driven by the huge, understandable fear about the health of our people
the difficulties of managing life during this time.
Investor Survival Guide for Navigating the Coronavirus Bear Market
When it is apparent that the fight against coronavirus has
• Take a longer-term view. Try not to get
and the tremendous uncertainty related to the direct and indirect economic fallout of containing the outbreak and
a light at the end of the tunnel, we expect a significant stock market rebound even while the economy continues to struggle. Government action already taken will
caught up in the day-to-day volatility and market swings.
help mitigate the immediate economic impact, helping
• If you have an appropriate long-term asset
individuals, businesses and the healthcare system. When
allocation, stay the course and rebalance as
the market can focus on the future, it will look beyond the
necessary. Don’t get scared out of the market
negative growth in the first part of 2020 (recession) and
out of fear of recent declines or upcoming
toward the recovery.
economic decline.
When investors pick their collective heads up, the outlook
• If you have a longer-term time frame and
for stocks will be that much more compelling as a result
have cash on the sideline that you intended
of the very depressed valuations, the massive monetary
to invest in stocks, you should put money to
accommodation from the Federal Reserve, and the benefits
work in stages into the bear market.
from the enormous fiscal stimulus. We are looking for a V-shaped recovery for stocks, even if it takes more time for the economy to restart from the sudden stop. It’s important to note that stocks usually start to rally while a recession is still biting.
• Focus on companies with great balance sheets and strong business franchises at great prices. • Follow the lead of insiders; they are
In times of elevated uncertainty and stress, it is critical for investors to think about their long-term investment goals. For retirement assets like 401(k) accounts, resist the urge
starting to buy. This historically has been very bullish for individual companies and the stock market in aggregate.
to make drastic changes to your allocation in response to
• For conservative investors, avoid
market developments up or down. An investment advisor
companies with debt-laden balance sheets
can be a valuable resource for scenario planning or as a
and those in the most impacted industries.
sounding board for your concerns. Feel free to reach out
With all stocks so cheap, there’s generally no
to us if we can help or if you need an advisor.
need to take on liquidity or timing risk.
The information contained herein may be privileged and confidential and is not intended to be a solicitation or an offer and has been obtained from sources believed to be reliable, however it is in no way guaranteed by Matrix Asset Advisors, Inc. as to its accuracy. Opinions and projections are as of the date of their first inclusion herein and are subject to change without notice to the reader. As with any analysis of economic and market data, it is important to remember that past performance is no guarantee of future results.
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Thank you to all our heroes on the front lines who risk their lives to help save ours.
laborfirst.com
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Hoovler Takes Fight for Worker Rights to County DA’s By Barry Lewis, Vice President of Communications for CCA
Orange County District Attorney David Hoovler says that while the Coronavirus pandemic has put a temporary halt on much of the construction industry, he is stepping up efforts to crack down on wage theft.
He says that wage theft and construction fraud is costing
enforce wage theft laws while working with other
taxpayers millions of dollars, local laborers the chance
stakeholders in the industry.
to earn a fair living wage and potentially risk the lives of residents who may be entering unsafe buildings.
He planned to have representatives from the carpenters union and leaders from other trades to the association’s annual spring
New York State Labor Department statistics show that in 2018,
conference in Saratoga on the importance of networking to
more than $35.3 million in fraudulently obtained money was
uncover labor related crimes and to discuss prevailing wage
returned to 35,000 workers throughout the state who were
issues and how to deal with unscrupulous contractors who
victimized by wage theft and public work violations.
misclassify workers to avoid paying them a fair wage. While
As president of the District Attorneys Association of New York, Hoovler says he wants to help train county prosecutors across the state on how to investigate and 24
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the actual conference was cancelled due to COVID-19 Hoover says he still plans on doing a virtual summer conference on continuing legal education on wage theft.
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Hoovler Takes Worker Rights Fight to State DA’s “I understand that law enforcement budgets
In a letter to the Albany Times-Union
are stretched thin and that investigations
published in March in which he talked about
into revenue-related crime aren’t always
the prosecution of wage theft cases, Hoovler
a priority, especially in areas with violent
said there is state program already in place
crime. I want to show other district
to aid law enforcement. The New York State
attorneys that prosecuting these crimes are
Crimes Against Revenue Program provides
not complicated and don’t have to take up
grants for district attorneys to investigate and
a lot of resources,” said Hoovler, noting
prosecute crimes such as tax fraud and wage
the key is for district attorneys to develop
theft. He notes that CARP is self-sustaining;
relationships with union leaders who are
it generates revenue back to the state through
seeing the crimes being committed.
fines and restitution.
“I met Todd (Diorio, president
“When we come out of all this, you’re
of the Hudson Valley Building
going to see an explosion and I fear a booming wage theft economy. You’re
Trades) years ago when I first began working in the D.A.’s office. I talk often with Alan Seidman who is on the management side. You have to rely on these people and their members to be your boots on the ground.”
going to have some employers try to take advantage of people who have been out of work, been suffering and been hurt. We have to be ready to step up and go after them and set an example.” blewis@ccahv.com
IF YOU KNOW SOMETHING, CALL The Orange County District Attorney’s Office operates a Labor Crime Tip Line to receive reports of crimes involving the workplace, particularly crimes involving failure to pay proper wages, unsafe working conditions, prevailing wage violations, workers compensation fraud, and other crimes where either employees or the government have been victimized. Callers can leave information anonymously, or if they wish to be contacted by a District Attorney Office criminal investigator, they may leave their contact information. The Labor Crime Tip Line is (845) 291-2107.
Lynn Allen Cione President
Mark J. Stellwag, Regional President 1769 Route 52, Fishkill, NY 12524 (845) 440-2898 Equal Housing Lender. ©2018 M&T Bank. Member FDIC. mtb.com
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40 Matthews Street, Suite 104, Goshen, New York 10924 T 845.294.1700 ext 1100 u C 845.551.9546 u F 845.294.1897 LynnC@orangeny.com
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COVID-19’s IMPACT ON CONSTRUCTION CONTRACTS By Michael E. Catania
Michael Catania, Catania, Mahon, Milligram, & Rider, PLLC mcatania@cmmrlegal.com
COVID-19 has altered the very framework of construction projects and their underlying contracts. Orders relative to what are essential business and/or projects, virus mitigation rules and social distancing best practices seem to change on a weekly, if not daily, basis. With all of this going on, the last thing a Contractor may be contemplating is how it can preserve and protect its contractual rights for delay damages or extras caused by this pandemic. Below are a few helpful guidelines based off of the AIA’s A201, General Conditions that are used on many jobs here in the North East. Please note, the following assumes an unaltered version of A201 2017. Owner’s and their counsel tend to heavily revise the general conditions so please pull the actual terms referenced below and make sure they have not been altered. 1. I am worried about getting paid a. Given the pandemic’s impact on the economy, and in particular certain industries, you may be worried that your once flush Owner is no longer liquid enough to meet his/her payment obligations on the project. If your project is controlled by AIA’s A201, then you can look to section 2.2, “Proof of Financing” for some reassurance. This clause requires an
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Owner, in response to a written request by a Contractor with a “reasonable concern,” to furnish “reasonable evidence that the Owner has made financial arrangements to fulfill the Owner’s obligations.” If a Contractor makes such a request, and the Owner ignores it, the Contractor is permitted to stop work.
3. My Job has been suspended due to Governmental orders; can I terminate? a. Section 14.1.1 allows a Contractor to terminate the Contract if the Work is stopped for a period of 30 consecutive days, through no act or fault of the Contractor (or any of its Subcontractors/suppliers). As a result of:
b. In addition, and under sec 9.7, non-payment by the Owner is also grounds to stop work and for the contract time to be extended.
i. Issuance of an order of a court or other public authority having jurisdiction that requires all Work to be stopped;
2. I am worried about delays and possible Liquidated Damages a. Take a look at section 8.3. If it was not modified, it allows for delays for “causes beyond the Contractor’s control.” In fact, where such a cause is present, the contract time “shall be extended for such reasonable time as the Architect may determine.”
ii. An act of government, such as a declaration of national emergency, that requires all Work to be stopped.
b. COVID-19 delays can fall within Section 8.3.1, thus entitling the contractor to more time. Examples might include building permit delays due to lack of building inspectors or a Covid-caused backlog, unusual delays in the delivery of construction material, or labor delays caused by the inherent inefficiencies in the social distancing mandates on construction sites. Frequent time-outs for cleaning, coupled with the extra time it takes workers to put on and take of PPE after every break, can waste hours over any given work week.
b. As you are all aware, some projects have been suspended by Executive Orders as “non-essential.” If you are on a suspended job, and it has lasted more than 30 days, contact your construction attorney for guidance on whether and how to terminate. This is especially true if you fear the Owner will force you to accelerate once the suspension is lifted, or that your profit on the job will be eaten away by material price increases. c. If you terminate under Section 14.1.1, and per Section 14.1.3, you will also be entitled to lost profits on the yet to be completed portion of your Work. Again, check your contracts carefully as Owners typically will have modified these provisions. There are also certain notice and claim provisions that must be strictly followed. If not, your termination may be held unlawful.
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How COVID-19 Impacted Projects Around the Region By Barry Lewis Vice President of Communications for CCA The coronavirus pandemic, affecting every facet of life in the U.S., is generating unprecedented levels of uncertainty for the construction industry. It is presenting a range of challenges for economic development professionals, business and labor leaders and elected officials as they try to navigate the severity and length of the crisis. In March Gov. Andrew Cuomo issued indefinite shutdown orders for all nonessential construction sites in the state to protect public safety. Only essential construction may continue, including for roads, bridges, transit facilities, utilities, hospitals and health care facilities, affordable housing and homeless shelters. Several projects in the region were in various stages of development when New York shut down construction and business in mid-March. Here is an update on some projects.
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How COVID-19 Impacted Projects Around the Region
AMAZON CLEARS LAND, WORKING ON SITE In February Amazon began clearing on a $75.2 million distribution center in the Town of Montgomery. While many nonessential construction sites were ordered to shut down, the work on Amazon continues as it was viewed as crucial for supply chains. Construction is expected to take about 18 months on the 1,010,880-square-foot facility at the intersection of Routes 747 and 17K. It will be the largest building in Orange County. The Amazon warehouse will provide 800 jobs, an additional 300 construction jobs and bring millions of tax dollars and additional revenue to aid education, emergency services and municipalities in the region. Amazon is required to hire at least 85 percent local laborers. Over 15 years, the project will provide more than $25 million in phase-in taxes. It’s estimated over the next 15 years, Amazon will create:
LEGOLAND DELAYS OPENING UNTIL 2021 Legoland’s $500 million theme park located in the Town of Goshen was scheduled to open July 4, 2020 but its United Kingdom-based owner, Merlin Entertainments, delayed opening until 2021. Work on a new state Route 17 Exit 125 beside the park, set to be the largest of nine Legolands worldwide, continues because it is considered an essential public safety project. The Legoland construction site alone averages more than 400 workers each day.
• $22 million in regional taxes • $14 million to Valley Central School District
Whenever it opens, Legoland will initially employ 1,073
• $2.2 million to Orange County
workers, with more to be hired as more parts of the site,
• $2.5 million to Coldenham Fire District
including a hotel and an aquarium, eventually come online.
EXPANSION PLANS REMAIN FOR CORNWALL HEALTH CARE SITE Montefiore St. Luke’s Cornwall campus is still on track
Local labor will be used for the renovations, which
to build an Open Access Primary Care Center, Imaging
Cusack-McGuirk said are expected to take about 18-24
Suite, Multi-specialty Physician offices and expand its
months. The hospital is currently in the process of
blood bank after receiving an $11.9 million commitment
creating architectural drawings with plans to begin later
from the New York State Department of Health.
this year.
In January State Senator James Skoufis joined Joan Cusack-McGuirk, president and CEO of MSLC to announce the award from the Statewide Health Care Facility Transformation Program. The renovations will further advance technologies and guest services. The Primary Care Center will treat patients during expanded hours including walk-ins. continued... ON THE LEVEL:
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How COVID-19 Impacted Projects Around the Region
DANSKAMMER ADDRESSES CONCERNS, TOUTS BENEFITS Danskammer Energy
officials say the new
officials say their
Danskammer will
plans to construct a
run more than it does
new $500 million
now but still reduce
gas-fired power
nitrogen oxide and
plant in the Town of
sulfur dioxide in the
Newburgh are moving
lower Hudson Valley
through the Article
by hundreds of tons
10 approval process
a year.
in Albany and after
At its peak,
public hearings, hope to have shovels in the ground by the middle of 2021.
Danskammer will produce about 450 construction jobs for up to two-and-a-half years, maintain
William Reid, CEO of Danskammer Energy met in
25, high-skilled jobs and create more than $50 million in
February with local labor leaders and county and state
revenue over 20 years to local government.
representatives to review the potential construction timetable and explain the economic and environmental benefits for a new 535-megawatt facility that will be built adjacent to and replace the existing 69-year-old plant along the Hudson River. Danskammer Company
The Orange County Industrial Development Agency recently approved a modified four-year, payment-inlieu-of-taxes extension for Danskammer at the request of the Town of Newburgh and the Marlboro school district. The new PILOT is extended to 2025.
INFRASTRUCTURE NEED COULD AID 17-FORWARD-86 The grassroots effort by a group of economic development, labor and business leaders and elected officials to build upgrades and a third lane on Route 17 from Harriman to Liberty may gain some traction with a proposed infrastructure stimulus package from the federal government.
on the state there are no new projects on tap for 2020,
In January, State Senator James Skoufis was joined by fellow Senators Tim Kennedy and Jen Metzger, as well as members of the 17Foward86 coalition to ensure that the three-year campaign for Route 17 expansion project is funded through the New York State Department of Transportation’s 5-year, $500 million Capital Program. Skoufis now says that due to fiscal constraints and an uncertainty of revenue projects that the virus has put 30
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just maintaining existing bridges and repaving existing highways. He believes the state will be moving to a one-year Capital Program, that will benefit the Route 17 project. “By next year the environmental work for Route 17 will have been completed and at that point I think we are primed to get construction money into the DOT Capital Program.”
blewis@ccahv.com
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When you want reliable professionals, you hire union carpenters.
The Kartrite Resort & Indoor Waterpark
There’s no greater asset in the building industry than a worker who shows up wellprepared and ready to go. It can mean the difference between a project that runs smoothly and a project that runs out of time. The Carpenters union recognizes this and has provided contractors with world-class quality and professionalism for 130 years – in addition to a can-do spirit to step up to meet any challenge. It’s not just a relationship, it’s a true partnership, and the entire building community benefits.
The North Atlantic States Regional Council of Carpenters. It’s time to build. To learn more, visit NASRCC.org
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NEW MEMBERS The Affinity Group is a premier wealth management firm. Since 2002 they have utilized a team approach to wealth management, working with professionals in the financial services, accounting, and legal areas where necessary. The firm’s CEO, Nicholas Preddice, is ready to work with you and can be reached at 973-534-5785 or npreddice@financialguide.com. Nick’s office is located at 49 Brundige Drive, Goldens Bridge, NY 10520 BNY Mellon is an investments company providing investment management, investment services and wealth management that help institutions and individuals succeed in markets all over the world. Chris Babcock is ready to assist you and can be reached at 617-722-6972 or at Christopher.babcock@bnymello.com. His office is located at 201 Washington Street, Boston, MA 02108. Hudson Valley Contracting Group/DKI specializes in disaster response and restoration. Their emergency response division is ready 24/7 365 days a year to aid in the restoration of affected properties. The firm’s president, Angelo Ferrante, is ready to assist you – contact him at 845-206-1393 or angelo@hudsonvalleydki.com. Their firm is located at 2713 Route 17M, New Hampton, NY 10958. For more information www. hudsonvalleydki.com
Jacobowitz and Gubits, LLP is a legal firm providing counsel to individuals and businesses for a wide range of legal issues. For nearly 50 years the firm has offered substantial experience, legal knowledge and effective resources in the Mid-Hudson Region. Attorney John Cappello is ready to assist you and can be reached at 845-778-2121 or jcc@jacobowitz.com. The firm is located at 158 Orange Avenue, (PO Box 367) Walden NY 12586. For additional information: www.jacobowitz.com. NXG Insurance Group offers over 40 years of experience in Insurance and Risk Management. The Principles of NXG are aware of the needs and challenges insureds face in today’s ever-changing environment of risks and exposures. The firm’s president, Joe Davis, is available to assist you and can be reached at 845-594-4703 or info@nxginsurance.com. The firm is located at 159 Green Street, Kingston NY 12401. For more information www.nxginsurance.com. Stoneworks LTD is a premier countertop fabricator with state-of-the-art equipment and technology that is capable of producing products that go beyond expectations. Contact sales manager Eric Behrends for more information. He can be reached at 845-562-9204 or ebehrends@staneworksltd.com. To see their work www.stoneworksltd.com
MILESTONES
Darlind Associates, located
Thomas J. Kempton, Jr. Inc.,
Profex, Inc., located in Newburgh,
in LaGrangeville, NY, marks
located in Middletown, NY, marks
NY, marks 25 YEARS as a
30 YEARS as a member of CCA.
30 YEARS as a member of CCA.
member of CCA.
www.darlindassociates.com
www.tjkempton.com
www.profexinc.com
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Before COVID-19 became wide-spread Business and Labor Leaders Warned of Complacency By Barry Lewis, Vice President of Communications for CCA
When business executives and union leaders gathered for the Hudson Valley Construction Industry Partnership annual meeting on February 26 – March 1 at the Marriott Harbor Beach Resort & Spa in Ft. Lauderdale, Florida they never could have imagined how just a few weeks later their agenda and concerns for the coming months and possibly years would change. continued...
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Even Before Virus Business and Labor Leaders Warned of Complacency
Ross Pepe, president and CEO of the Construction Industry Council of Westchester & Mid-Hudson Region with Alan Seidman, executive director of the Construction Contractors Association of the Hudson Valley.
Some 120 members and guests from New York’s
“experiencing some of the highest amount of construction
downstate region convened to discuss contracting
activity that we’ve seen in the last 20 years. But he
challenges, labor relations and public works and private
noted the CIC and others need to educate and advocate
development programs in 2020. The seminars included
to younger demographic age groups. “It’s showing up at
presentations by legal, legislative and labor/management
different events, planning boards, IDAs—we’ve got to
specialists and featured a motivational talk from retired
shake the tree and educate people. The next generations
New England Patriot linebacker and Pro Football Hall of
have a propensity to spend more money on things that are
Fame member Andre Tippett.
socially responsible like the environment and care for their
At the time many in attendance were focused on the impact of the opioid epidemic and the challenges
community. That is something our industry can get behind. But we have to communicate that.”
facing workers, unions and the business community.
Todd Diorio, business manager of Laborers Local 17 and
But several leaders representing the building trades and
president of the Hudson Valley Building & Construction
business management sounded warnings that seemed to
Trades Council, highlighted the working relationship
foreshadow the drastic economic shift expected in the
between the HVBCTC and Labor Management Alliance
construction industry.
and noted current and past projects like Legoland,
John Cooney Jr., executive director of the Construction Industry Council of the Hudson Valley told those attending the first day of seminars that his members are 34
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Amazon, Resorts World Catskill and the Kartright Water Park and future projects like the new Danskammer and the Route 17/I-86 expansion.
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Even Before Virus Business and Labor Leaders Warned of Complacency
Todd Diorio, business manager of Laborers Local 17 and president of the Hudson Valley Building & Construction Trades Council talks about the working relationship between labor and management.
Retired New England Patriot linebacker and Pro Football Hall of Fame member Andre Tippett was the motivational speaker on the final day of the HVCIP annual meeting.
“Too many times, owners and developers come to us late after the anti-growth, environmental groups or anti-development groups have already engaged in a process to delay or kill a project. We are experienced professionals who take the time to learn the important details of each project so we can effectively advocate on behalf of the project, signatory contractors and trade workers of the Hudson Valley,” said Diorio. Alan Seidman, executive director of the Construction Contractors Association of the Hudson Valley, said both labor and management are “being reactionary” and not getting out in front of the free-ride perception facing developers.
“We’re taking the initiative to change the terminology to say ‘phase-in taxes’ rather than ‘giving tax breaks’. We need to change people’s perception and help educate them. Working with other Hudson Valley organizations we want to educate the public that these developments are aiding schools, taxes are being paid and good paying jobs are being created for the next generation to live here and raise their family here. Jobs for today and tomorrow.” blewis@ccahv.com ON THE LEVEL:
Business Manager Stephen Reich of the Heavy Construction Laborers 754 talked about the need for more projects and development in the coming year.
At the closing reception of the HVCIP meeting, Alan Seidman, executive director of the CCA of the Hudson Valley, Susan Cooney, John Cooney Jr., executive director of the Construction Industry Council and Jim Smith of Advance Testing.
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Healthy Buildings, Indoor Air Quality and Our Health By Rick Alfandre, AIA LEED AP BD+C, Alfandre Architecture, PC
Health has been a hot topic as of late due to the Coronavirus pandemic. In our lifetimes, we have never faced a viral outbreak of this magnitude, nor any of the consequences. While many may feel grateful to be able to work from
People have been aware of the adverse effects of polluted
home the forced lockdowns and retreat into home isolation
air for centuries. Specifically, “bad air” was thought to
has also given us a heightened awareness of the role our
be responsible for the spread of disease and the adverse
surroundings play in our health and wellbeing. We have
reactions) that occur in badly ventilated rooms. While
been advocating for people and organizations to invest in
prior generations weren’t aware of all the reasons behind
healthier buildings for some time. Buildings play a central
the adverse reactions to air quality, they did have a general
role in the spread of disease. From measles to influenza and
understanding that “bad air” was linked to “bad health.”
the common cold, the scientific literature is full of examples.
Indoor Air Quality is quite simply what it states—the quality
But, as much as buildings can spread disease, if operated
of the air in the building itself.
smartly, they can also help us fight against it. One thing is
of the health of our environment and ourselves.
THE MODERN ERA Unfortunately, modern buildings can contain various substances that are potentially hazardous to our health. These substances can range from typical dust to major irritants and poisons. The smaller the space, the more potential contaminants can concentrate circulate, causing lasting problems. As the production of more “modern” (i.e., synthetic) building materials increases, so too does the potential adverse risks to human health.
Our health is intricately linked to our environment.
BIOLOGICAL AND CHEMICAL
clear: we will all have new expectations about the buildings where we live, work, learn, and play. Many are focused on creating a healthier home environment while many of us are focused on how we return to work and school. Sustainable building factors in the health of the inhabitants and the impact on the community, and the impact on the earth. Being mindful of sustainability goals is being mindful
As the advent of modern building techniques became commonplace, the issues that came from these techniques slowly became more relevant. For instance, having a fire (for heating and cooking) within enclosed spaces can cause serious issues with Indoor Air Quality (e.g., regular exposure to higher levels of Carbon Monoxide), which in turn can affect our health. The very things that enhance our quality of life can end up being detrimental to our health.
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AIR CONTAMINANTS Air contaminants can be either biological or chemical. Biological contaminants are things like viruses, bacteria, dust mites, animal dander, and mold. Mold is complex because it produces both spores (particles) and gases (volatile compounds that produce the telltale “musty” odor. Some molds can cause negative health effects ranging in severity from allergic reactions and immune responses (i.e., asthma), to infectious disease and even cancer (CDC, 2009).
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Healthy Buildings, Indoor Air Quality and Our Health CHEMICAL AIR CONTAMINANTS Chemical contaminants come from multiple sources. One of the most common sources is combustion by-products, including carbon monoxide (CO). CO, an odorless colorless gas can cause flu-like symptoms, headaches, dizziness, nausea, and confusion s and death. Any fuel-burning equipment or appliance can be a potential source of CO. Another large class of chemical contaminants are Volatile Organic Compounds (VOCs). These are large chain, usually complicated, organic molecules that are emitted from many common building products and finishes, furnishings, some clothing, and cleaning supplies.
SOME AILMENTS ASSOCIATED WITH POOR INDOOR AIR QUALITY (IAQ) INCLUDE Coughing, throat and nose irritation and congestion; eye irritation; Dizziness; Fatigue and Headaches; shortness of breath; impaired vision, coordination, and learning; As well as the transmission of airborne illnesses One study found that every time you double the rate of outdoor air delivered into an office, worker performance improves by 1.7% across four simulated office tasks: text typing, addition, proofreading, and creative thinking. In another study an analysis of sick leave data for more than
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3,000 workers across 40 buildings found that 57% of all sick leave was attributable to poor ventilation. Of course, it is not just air quality that drives health and performance. A study of workers found that they reported more headaches and worked 6.5% more slowly on a typing test when they were in an office with a pollution source: a dirty carpet.
INDOOR AIR QUALITY SOLUTIONS So, what are some solutions? To increase our productivity and reduce the harmful effects of poor IAQ manage contaminants in your immediate environment and increase ventilation. As we move forward with improving our buildings for health, any new build or renovation should include an energy recovery ventilation system. Energy recovery ventilation allows us to substantially increase fresh air while minimizing energy costs. In addition to increased fresh air improved filtration methods improve the quality of the indoor air and can also help reduce the spread of illnesses inside buildings. Ultraviolet air purification and sterilization system may be considered as an additional measure for managing biological contaminants in the air. It should be noted that managing airborne illness transmission requires other steps in addition to those outlined here.
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IN MEMORIAL: RON OLORI SR., LONGTIME CCA MEMBER Ronald Olori Sr., a
member of the construction community of the Hudson
Rockland County native
Valley since 1950. It was a source of great joy to Ron
and longtime member
that the crane service continues today with the help of his
of the Construction
grandchildren, the fourth generation of the Olori family.
Contractors Association, died on March 30, 2020. He was 78.
Ron gave his time and attention to so many organizations throughout Rockland County during his lifetime. The two closest to his heart were the Boy Scouts of America
Ron was president of Olori Crane Service in Nanuet, a
and St. Peter’s parish. He dedicated his time and talents
company he owned and operated along with his son,
to keeping St. Peter’s church, rectory and school up and
daughter and most recently his grandson. He had been a
running. Whether it be lights, heat, and air conditioning,
CCA member since 1976.
Ron used his resources in the construction business to the
He is predeceased by his beloved wife Anna Marie. Ron
benefit of the parish.
is survived by his beloved children Ron Jr & Trish Olori
Ron was Scoutmaster of Troop 19 from 1963 to 1994
of Stony Point, Lisa & Anthony Bruno of New City.
when his son Ron Jr. took over the position. He was “Mr.
Along with his brothers, Ron helped their father Lou build Olori Crane Service, which has been a respected
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O” to many young men in his 30-year tenure. Many of his former scouts still refer to him as “their Scoutmaster”. He remained on the troop committee until his passing.
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Local 754 Rockland County, NY Stephen Reich Business Manager Kenneth Lewis President
Lorenzo Henderson Vice President
Kevin Wagner Recording Secretary
Robert Bonomolo Secretary Treasurer
Bradley Ashford Sergeant at Arms
Executive Board Members: Joseph Coskey Brian Barbera, Jr.
215 Old Nyack Turnpike Chestnut Ridge, NY 10977 Phone 845-425-5073 www.local754.com
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WORKERS COMPENSATION & COVID-19 By Barry Lovell
If your employee tests positive for COVID-19, should you report it to your workers’ compensation insurance carrier? The answer is maybe. The workers’ compensation law in New York has always recognized that certain types of diseases are tied to specific occupations, and many of those connections are specifically listed in the law. For example, silicosis is specifically tied to those whose work exposed them to silica and other harmful dust. Most of these recognized occupational diseases are a result of repeated exposure over long periods of time. But the New York Workers’ Compensation Board has also recognized that some illnesses are contracted by exposure in the workplace that is more akin to a specific incident or moments in time, like an accident. One of the controlling cases dates back to the 1940s. A nurse riding in an elevator was coughed on by a person know to have polio. The Board ruled that the nurse’s disease occurred as a result of this “accident” and therefore was compensable. In another case, a schoolteacher was found to have a compensable case of the mumps. The Workers’ Compensation Board found that “daily and close contact with her pupils subjected her to an unusual degree of exposure to infection and was a special hazard accidental in character.” So, all of the healthcare workers affected by COVID-19 will likely be entitled to ON THE LEVEL:
workers’ compensation benefits. But what about construction workers? Each case will be based upon the particular fact pattern associated with the particular incident. Some claims may be obvious. If an employee rode back and forth to a jobsite in the cab of a company truck with another employee who caught the virus outside of work, but came to work while contagious, then the board would likely find that exposure to have been an “accident” and might award benefits. Other claims may be more ambiguous. Under normal circumstances, most employees are not covered by workers’ compensation for accidents that occur while commuting to work. The Workers’ Compensation Board could determine that commuting itself became a special hazard of employment for anyone required to come to an essential job during the NY on PAUSE period when most jobsites were shut down. In that case, a worker who could trace their specific exposure to COVID-19 while coming to work could be found to be covered. Under any circumstances, if a worker contracts COVID-19 and states that their exposure occurred at work employers need to report the claim to their carrier. The carrier will investigate, and depending upon the facts and circumstances of the claim, and our current understanding of the science of the virus, a determination will be made regarding compensability. At that time, the degree to which an employer has taken the necessary steps
Barry Lovell is the President of Lovell Safety Management Co., LLC. Lovell-managed workers’ compensation insurance programs have returned almost $1 billion in dividends to participants. He can be reached at 212-709-8600, or blovell@lovellsafety.com.
to protect their workforce will be an important component in determining where an employee contracted the virus. One area to pay careful attention to is the downtime on jobsites, like lunch or coffee breaks. Our initial observations of many essential jobsites saw a rigorous observance of social distancing measures while work was being completed. But at lunch hour, employees were interacting in ways that put them at greater risk for spreading the virus. Most of the time, injuries to employees during lunch time are not covered under workers’ compensation. Given the nature of the COVID-19 emergency, however, the Board may not make such distinctions regarding exposure. To protect employees and their families, employers should actively discourage behaviors that lead to violation of social distancing rules. Though the COVID-19 emergency presents some new and unprecedented challenges, we are fortunate to have in place a system that is already equipped to respond to the needs of injured workers.
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GOING BACK TO WORK – A PLAN FOR YOUR WORK PLACE By Robin Seidman
COVID-19 has changed our lives drastically – both on the personal side and business side. While some things may go back to what they were, there is a new “normal” that we will need to adjust to. For businesses, that means thinking ahead to what our workplaces and work practices will look like when we are once again fully open for business. For one, businesses may find value in having more employees work remotely or at the very least, putting policies in place that govern when an employee can work remotely (weather events, for example), how they will work remotely, if the employee has the internet connections needed to support work-from-home, what hardware and software they will need and what security precautions must be taken. By the way, the business should have a very clear and concise policy that details the company’s expectations and procedures for working remotely and should be aligned with the company’s Information Security policy. This is especially important to protect the privacy of the customer, its employees, its customers and its vendors. Secondly, video conferencing may become a preferred replacement to in-person meetings – whether it is between a company and its employees, a company and its customers or a company and its vendors. The challenge of working with COVID-19 Pause mandates has forced many businesses to use video conferencing and luckily, it is not very difficult. However, once again, proper preparations, precautions and training is required to ensure that the meetings are smooth, protected from video conference hacks or “bombs” and that video conference etiquette is ON THE LEVEL:
followed - particularly by employees. While video conferencing, it is important for employees to understand proper conferencing etiquette. An employer should provide the following guidelines either electronically or by paper but a discussion with employees is an absolute must.
Robin Seidman is the owner of RJS HR Solutions specializing in Sexual Harassment Training, Customer Service Training and Human Resource Policy and Procedure. For more information, go to www.rjshrsolutionsllc.com. Contact Robin directly at robin@rjshrsolutionsllc.com or 845.494.8530.
Guidelines: • Locate a quiet location or office for your conference. Because confidential material may be discussed, family and friends should not be within earshot of the call.
• If you need to ask a question or make a comment, try not to talk over another speaker. This is sometimes difficult when you can’t see all attendees but wait for a lull in the discussion before making your point.
• Test video conferencing capabilities from your offsite location before the conference is scheduled to start. If there is a connectivity issue, contact your supervisor or IT department.
• When the call is over, disconnect properly.
• Dial into the conference 3 minute before the start time. • Make sure your camera is on and pointed at you. Focus on a head and shoulder shot to avoid getting your background into the picture. Backgrounds should be neutral – no pictures, images, people walking/talking in the background, etc. • Make sure your microphone works but keep it on mute until you need to speak. • Business casual dress is required. Although you are working remotely, your location during the conference is part of our business environment. • Do not eat, drink or chew gum during the conference. • Pay attention. Do not multitask – that includes typing on your computer, mobile phone, etc.
Remember, all employees are not “tech savvy” and may require assistance. Each company should have at least one IT resource available to walk employees through the setup process and to troubleshoot issues. COVID-19 is absolutely a game-changer to the way we conduct business and some of the practices we have been forced to put into place may turn out to be excellent solutions in managing our workplaces. One final note: Many companies found themselves in the unhappy position of making workplace changes on a moment’s notice and scrambling to find solutions to keep the business running within the strict limitations mandated by the government. A Business Continuation Plan can have most of the details worked out BEFORE a weather storm, pandemic or other issue arises. Now is the time to get a plan in place.
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Pete Clifford of Bricklayers & Allied Craftworkers - Local 1 works with Julianna Ackerly of Montgomery.
Career Day The 21st Annual Hudson Valley Construction Career Day on March 6 at Rockland County Community College gave some 550 high school students from the Hudson Valley and Catskills a hands-on opportunity to learn from experts in the Building Trades and expose them to opportunities about a career in the trades. The event was hosted by the Construction Industry Council of Westchester & Hudson Valley and the Building Contractors Association of Westchester & The Mid-Hudson Region.
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UPCOMING EVENTS Annual Lobster/Clambake New date to be determined
CCA Golf Outing July 27, 2020
Stewart NY Airshow August 29-30, 2020
Holiday Get-Together & Charitable Event November 30, 2020 *All dates subject to change pending government and CDC guidelines.
Go to CCAHV.com Advocacy. Community. Projects. News. Events. On your computer, laptop or mobile device.
VISIT. EXPLORE. SIGN UP NOW.
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William F. Vacca Vice President - Business Development ADDRESS: 15 Scott’s Corners Drive, Montgomery, NY 12549 phonE: 845.457.7700 x367 CEll: 845.661.2524 fAx: 845.457.2712 EmAil: william.vacca@waldensavingsbank.com wEbSitE: waldensavingsbank.com
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