Column: Is New York really open for business?

BY MATTHEW PEPE

It”™s getting to the point you don”™t know who to believe.

A classic example aired on the radio recently. One spot on the dial was New York Gov. Andrew Cuomo, telling listeners that in the Empire State, “We”™re open for business.” Then, in what sounded like the very next commercial on another station, Texas Gov. Rick Perry was heard barking about big skies (with the help of a $1 million Texas Economic Development Council campaign), as he tried to lure businesses away from New York to the Lone Star State, using New York”™s litigious atmosphere and impact on business as a negative.

Job creation and job poaching all in a New York minute, literally.

I really want to believe Gov. Cuomo, but something just doesn”™t ring true about the new New York message.

If there is one persistent topic of heated debate today it is over New York state”™s preventable injury law known as Labor Law 240, Scaffold Law. The law requires the employer to provide safety equipment and training for workers. Under the law property owners, general contractors and sub-contractors are determined to be in the best position to oversee safety and protections for workers. Failure of the employer to supply ”“ or the worker to use ”“ necessary safety equipment that results in injury leaves the employer liable for damages.

The law also extends to protection from gravity-related injuries. The strict interpretation of the law by New York state courts has led to a decline in insurance companies willing to cover employers, thereby driving up premiums. The answer to this dilemma lies in the ability of management and labor to seek common ground that provides workers with needed safety protections and employers with a measure of fairness in determining the cause of injuries.

Studies show that the Scaffold Law increases insurance costs by as much as 400 percent over those of similar cities such as Chicago. The result is fewer projects, fewer insurers and far fewer jobs. What started as a law covering falls from heights has morphed into anything gravity-related, even when firmly on-ground. With no ability for the employer to put up a defense, basic rights are ignored.

The Construction Industry Council and the Building Contractors Association, along with many other regional associations, have joined with the Lawsuit Reform Alliance in one of the biggest campaigns to reform the law. Statewide, the Alliance”™s efforts have successfully beaten down bad legislation from the New York State Trial Lawyers Association for the first time in memory.

And the governor? He has all but thrown in the towel when he admitted earlier this month that this legislative session will probably end in a draw ”“ each side punching itself out ”“ and no decision.

Nevertheless, we”™ve made some headway and the job is far from done. We remain committed until the campaign succeeds in reforming the Scaffold Law.

However, we cannot do it alone; we need your help. Your elected representatives need to hear from you and how you have been impacted by the Scaffold Law. Were you ever the defendant without the ability to defend yourself in a lawsuit? Have your liability insurance premiums gone up? We know the answers but our lawmakers still ignore the obvious truth.

Labor Law 240/241 reform would be a great start. After Illinois repealed its similar law in 1995, New York continues to be the only state in the nation with an “absolute liability” standard. It”™s time we KO”™d this business killer.

Matthew Pepe is executive director of the Building Contractors Association of Westchester & Mid-Hudson Region Inc. in Tarrytown. He can be reached at 914-631-6070 or matthew@cicnys.org.