Contributor, Author at BusinessWest

By John Henderson

We’ve all heard the famous quote by Henry Ford, “the only thing worse than training your employees and having them leave is not training them and having them stay.”

When you invest in someone’s professional growth, how do you measure the return on your company’s investment? There are several models that can help you measure return on investment (ROI). One model that many people use is the Kirkpatrick Model of Training Evaluation. In this model, there are four levels to evaluate:

• Level 1: Reaction. This is simply noting how people directly respond to the training. Were they satisfied? You can measure that by evaluation responses.

• Level 2: Learning. What knowledge and skills did the employee acquire due to the training? This can be measured by observing the employee’s performance after the training — was there improvement?

• Level 3: Behavior. How did the employee’s behavior change? Has there been an increase in productivity, motivation, and employee engagement?

• Level 4: Impact. How has the training impacted the goals of the team and/or organization?

While the Kirkpatrick model is widely used, if you are looking for a more mathematical way to measure ROI, you can use a more traditional formula: simply calculate the dollar return (benefit: have sales increased, have efficiencies increased, has retention increased), and divide it by the cost of the investment (training).

Now, with all that said, let’s look at how to effectively get the most return on training investment.

First, determine the skills gap and identify the appropriate training course for the person to attend.

Second, set them up for success by doing the following:

• Explain to the person why you are sending him or her to the training session. I once had a participant during a break tell me he thinks he was sent to the leadership series because he was in trouble. I asked him if he would be comfortable asking his supervisor why he was selected to attend. When he returned to the next class, he proudly proclaimed, “I’m here because they think I have high potential to be a leader.”

• Provide the person with all the logistical information and an overview of what the content of the training will be.

• Provide the trainee’s supervisor with the same information.

• Encourage the trainee and supervisor to meet after the training is completed to discuss what was learned and how the employee intends to use the newly learned skills.

Investing in your employees’ training can bring great ROI if you make sure to follow the four steps outlined above. Don’t spend your learning and development dollars without ensuring that the participant is prepared and ready to learn.

John Henderson is director of Learning and Development at the Employers Assoc. of the NorthEast. This article first appeared on the EANE blog; eane.org

Addressing the Trend of Quiet Quitting in the Workplace

Employment

Motivation Matters

By Nicole Polite

Quiet quitting is a term that has recently gained traction, describing a workplace trend where employees strictly limit their tasks to what is outlined in their job descriptions, refusing to work longer hours or overextend themselves. While these individuals fulfill their basic duties, they establish clear boundaries to preserve work-life balance and resist the notion that ‘work is life.’

This behavior does not necessarily indicate a lack of commitment or intent to leave the organization. Rather, it often highlights a need to manage workplace stress or dissatisfaction effectively. This type of withdrawal could also suggest that an employee is reevaluating their career path or actively seeking new opportunities.

The concept gained notability during the period known as the Great Resignation, a time when many individuals reflected deeply on their careers, salaries, and how they are treated in the workplace. The primary motives behind quiet quitting often include a lack of advancement opportunities, insufficient pay, and a feeling of being undervalued. This isn’t a new phenomenon; workers have been adopting this approach for years in response to issues like poor compensation, unmanageable workloads, and inadequate growth opportunities.

Signs of Quiet Quitting

Quiet quitting can manifest in various ways, some of which include:

• Not attending meetings;

• Poor attendance;

• Arriving late or leaving early;

• Noticeable reduction in productivity;

• Lesser involvement in team projects;

• Avoiding participation in planning or strategy meetings; or

• A general lack of enthusiasm or engagement in work.

Ripple Effects of Quiet Quitting

Increased Workload for Others: With some employees dialing back their efforts, their colleagues often face increased workloads, which can result in burnout and further disengagement, perpetuating a harmful cycle.

Compromised Reputation: Quiet quitting can take a toll on an organization’s external image. Internal problems can tarnish its reputation as a desirable workplace, making it challenging to attract and retain skilled personnel.

Loss of Competitive Edge: In competitive sectors, where innovation is key, the lack of initiative resulting from quiet quitting can severely disadvantage a company.

Increased Turnover: If issues prompting quiet quitting, such as poor recognition, inadequate compensation, or limited growth prospects, aren’t addressed, employees may eventually leave the company. This turnover is not only disruptive, but also adds significant costs to the organization in terms of replacement and training.

Strategies for Employers to Mitigate Quiet Quitting

Employers aiming to combat quiet quitting and enhance employee engagement should focus on improving the overall employee experience through several strategic approaches:

Open Dialogue: Regularly engage with staff to understand their needs and address grievances. Genuine expressions of appreciation can significantly impact morale and motivation.

Realistic Workloads: Ensure that goals set for employees are achievable and reasonable, maintaining clear boundaries to prevent feelings of being overwhelmed.

Regular Check-ins: Create a supportive atmosphere by routinely checking in on employees’ well-being in informal settings. This can help foster a sense of belonging and care within the company.

Autonomy and Creativity: Encourage autonomy in daily tasks and problem solving to enhance creativity and personal investment in work.

Mental Health Prioritization: Develop and implement wellness programs that encourage employees to focus on their mental health. Foster an environment where mental well-being is regarded as essential as physical health.

Career Development: Actively discuss and facilitate potential career paths within the organization. Assist employees with clear, actionable steps to achieve their professional ambitions, showing commitment to their growth and development.

By implementing these strategies, organizations can not only address the issue of quiet quitting, but also cultivate a workplace culture that respects and values employee contributions and personal boundaries. Such an environment can lead to a more engaged and motivated workforce, ultimately benefiting the entire organization and leading to better overall productivity and employee satisfaction.

Conclusion

As quiet quitting continues to be a topic of discussion in many professional circles, it’s crucial for leaders and managers to take proactive steps to understand and address the underlying issues that lead to such behavior. By fostering an empathetic and supportive workplace, companies can ensure that their employees feel valued and motivated, reducing the inclination toward quiet quitting and boosting organizational health and effectiveness.

Nicole Polite is CEO of the MH Group, a staffing and recruiting firm in Massachusetts and Connecticut specializing in placing professionals in various industries with client companies.

How to Conduct an Effective Workplace Investigation

Law

A Road Map to Fairness

By Elaine Reall, Esq.

Managers, supervisors, and overworked HR professionals all face the specter of a sensitive workplace investigation from time to time. Allegations of illegal discriminatory behavior, workplace harassment and/or bullying, hostile-workplace assertions, or just straightforward favoritism based on a workplace romance between employees all regularly confront employers.

When to Investigate

The first question that employers need to ask is, does a formal or informal investigation need to take place? Not all workplace gripes or groans warrant an investigatory response.

Elaine Reall

“The first question that employers need to ask is, does a formal or informal investigation need to take place? Not all workplace gripes or groans warrant an investigatory response.”

For example, mandatory overtime in understaffed healthcare facilities is the subject of numerous complaints. And while it makes good employee relations sense to address such an issue, nothing in such a scenario rises to the level of warranting an investigation. However, if a formal or internal complaint indicates the possibility or probability of illegal discrimination, physical or emotional abuse, criminal misconduct, retaliation for whistleblowing, or OSHA-related safety or health issues, an employer would be wise to seriously consider initiating an investigation.

If an actual complaint exists (as opposed to vague rumors), prompt investigatory action is best practice, as it preserves evidence, prevents fading of witness memories, and demonstrates employer credibility. Yet, in a situation where only rumors and secondhand observations abound, an employer must weigh the pros and cons of pursuing an investigation without an actual complaint serving as an investigatory road map.

Who Should Investigate

Employers should begin by assessing the experience and background of managers and HR professionals working for the organization. Do such individuals have training and experience with internal workplace investigations? How critical is the confidentiality of information? Is there a high likelihood of legal action?

When considering inside versus outside investigators, consider this quick checklist:

• Do legal issues of document protection and privilege exist?

• Will the workplace benefit from a factual/credibility determination by a disinterested party?

• Evaluate the need for a general versus detailed findings/report.

• What is the likelihood of administrate agency (MCAD, etc.) or court action?

• Consider the need for professional demeanor.

• What is the value of inside managers/HR professionals being trusted in sensitive situations?

As a general rule of thumb, an experienced investigator (regardless of internal or external status) will be the most cost-effective.

Timing of Investigation

Prompt investigations are better investigations. Hoping that issues will simply go away is a surefire way for an employer to torpedo a strong result. Timely investigations deal efficiently with issues such as fresh witness memories, existing documentation, and lack of employee turnover. Investigatory urgency also lends a certain energy to the findings or report.

Unfortunately, employees often delay reporting serious issues and incidents to an employer for a variety of reasons. Often, the first evidence of a pattern of sustained harassment comes from information gathered during employee exit interviews. The best way to avoid this result is to actively encourage employees to report problems or concerns while they are still small (and fixable). The use of IT tools to make reporting of employee concerns simple and non-confrontational is a great adjunct to the traditional open-door complaint process used by many organizations.

Strategy, Strategy, Strategy

Nothing is more vital than extensive planning before starting a formal workplace investigation. Take all, or most, of the following actions:

• Gather and review relevant workplace documents;

• Read personnel files of potential witnesses and ‘suspects’;

• Do a deep Google dive on relevant parties;

• Do initial assessment of the nature of the complaint;

• Obtain legal advice about whether the subject matter may be legally privileged; and

• Outline the who, where, and why of the investigation (best investigator, best location for interviews, format for witness statements).

Limit Scope of Investigation

Finally, the workplace is not a judicial setting. Narrow the scope of your investigation to factual determinations. Examples: did X do/ask/physically touch, etc.? Did X violate employer policy? Do not introduce legal jargon or conclusions into the investigation. Example: don’t ask if someone created a hostile work environment.

Written Reports

Where a written report is appropriate or necessary, plain but detailed language is best for an investigator’s notes. Witness answers plus the investigator’s impressions and observations (example: tone of witness, loudness of response, marked body language) should be detailed.

Include specifics in the notes and in the final report. Outside third parties will view such detail as evidence of due diligence on the part of an employer. And, lastly, don’t depersonalize the report’s language; include actual names and identifying information (dates and times, locations, witnesses, and interview format [in-person versus Zoom]).

Written Versus Oral Report

If it has been a significant investigation, an employer needs to create a separate, stand-alone written report. Tip: do not file such a report in a regular employee personnel file. A distinct investigation file should be created. Written reports should not attempt to draw legal conclusions.

Consider notifying the complainant(s) and accused party of the general outcome of the investigation. Failure to do this almost always leads to such parties looking for answers outside the workplace, including talking with a lawyer.

Last, but never least, strive for a proper investigatory behavior and demeanor:

• Learn the value of silence and open-ended pauses;

• Don’t rush through questions;

• Ask a question and then actively listen;

• Remember to include open-ended questions to encourage witnesses to talk;

• Maintain a detached demeanor (avoid emotionally charged statements); and

• Absolutely avoid promises or guarantees.

Conclusion

Following the guidelines outlined above will help you create a solid investigatory road map. If you have any questions or concerns about the above policies, it is prudent to contact a labor and employment attorney so that the best investigatory practices can be followed and you can, hopefully, avoid unnecessary litigation.

Elaine Reall is an attorney who specializes in labor and employment-law matters at the Royal Law Firm LLP, a woman-owned, women-managed corporate law firm that is certified as a women’s business enterprise with the Massachusetts Supplier Diversity Office, the National Assoc. of Minority and Women Owned Law Firms, and the Women’s Business Enterprise National Council.

FTC Bans Non-compete Agreements for Nearly All U.S. Workers

Law

Sensible Move or Overreach?

By Meaghan Murphy, Esq. and John Gannon, Esq.

Meaghan Murphy

John Gannon

Non-compete agreements have long been the subject of intense debate. Some view them as a critical way to protect confidential and proprietary business information, while others view them as stifling the rights of workers to freely change jobs.

Taking the latter view, last year, officials at the Federal Trade Commission (FTC) proposed banning the use of non-compete agreements in the workplace. Because non-compete agreements prohibit workers from moving to or starting competing businesses for a designated period of time, from the FTC’s perspective, restrictions on employee mobility disadvantage workers who are seeking to change jobs, while at the same time harm businesses looking to hire employees. The net result, according to the FTC, hurts the economy overall and violates the Federal Trade Commission Act, which prohibits businesses from engaging in unfair methods of competition.

Just a few weeks ago, the FTC officially moved forward with its plan to eliminate non-compete agreements when it issued a final rule that will ban non-compete agreements nationwide starting Sept. 4, 2024. The new rule will impact an estimated 30 million workers — approximately one in five workers in the U.S.

“The rule does not impact non-disclosure and confidentiality agreements or non-solicitation agreements unless they prohibit a worker from, penalize a worker for, or function to prevent a worker from seeking or accepting work or operating a business.”

In this article, we take a closer look at what is required by the new rule, legal challenges to the nationwide ban, and strategies for employers who have non-compete agreements currently in place.

What Does the Rule Actually Say?

Here are the most important things businesses need to know about the new rule slated to take effect on Sept. 4 of this year.

Employers are prohibited from entering into or attempting to enter into a non-compete agreement with any employees. Also, with one limited exception (discussed below), employers will not be able to enforce non-compete agreements currently in place. Further, there is an affirmative obligation on employers to provide clear and conspicuous notice to workers with existing non-competes that those agreements will not be enforced against them.

There is a ‘senior executive’ exception: for senior executives, which are defined as those in “a policy-making position” earning more than $151,164 annually, it is unlawful to enter into new non-compete agreements after Sept. 4, but current non-compete agreements for senior executives will be allowed to stay in effect even after the effective date of the rule.

The rule does not impact non-disclosure and confidentiality agreements or non-solicitation agreements unless they prohibit a worker from, penalize a worker for, or function to prevent a worker from seeking or accepting work or operating a business. In other words, as long as those agreements are not worded so broadly as to essentially be non-compete agreements, they are safe.

As is often the case, there are some exceptions to the rule. For example, the rule does not apply to workers at nonprofits. Non-competes between franchisors and franchisees are exempted, so any such agreements remain lawful to have or enter into in the future. The same goes for non-competes between the seller and buyer of a business.

Legal Challenges

Business advocacy groups have taken issue with the non-compete ban from the get-go, arguing that the FTC’s actions are classic government overreach. The U.S. Chamber of Commerce — which touts itself as the world’s largest business-association advocacy group — announced its intention to file a lawsuit to block the rule months ago.

The chamber emphasized that non-compete agreements are — and should continue to be —upheld or struck down under well-established state laws and, further, that such a broad rule applied to all businesses across all sectors is not appropriate for the FTC to implement unilaterally.

In addition to the Chamber of Commerce’s lawsuit, a global tax services and software provider based in Dallas (Ryan, LLC) is challenging the rule in a federal district court in Texas. According to that company, non-competes are a valuable tool for firms to protect their intellectual property and foster innovation, and the FTC rule would upend businesses’ ability to do both.

Several motions have been filed in that case, and the court has suggested that it will issue a ruling on the legality of the FTC’s rule soon. Whichever way that court decides, employers can expect the losing party to appeal the decision to the Court of Appeals. After that, it’s possible the U.S. Supreme Court will weigh in.

What Should Employers Do?

Employers should collaborate with legal counsel to review all existing non-compete agreements and assess whether they will pass muster under the new FTC rule. If a business determines that most (if not all) of its non-compete agreements will be unenforceable come Sept. 4, management needs to craft a new plan aimed at protecting customer goodwill and shielding sensitive confidential information from disclosure.

As noted above, for the most part, non-disclosure and confidentiality agreements and non-solicitation agreements are not affected by the FTC’s non-compete ban. When properly drafted, these agreements can achieve the same goals as a non-compete without running afoul of the new FTC rule.

Businesses should also monitor the status of the FTC’s rule. We expect courts will issue important rulings in the FTC non-compete rule litigation very soon. If those decisions leave the rule in place in its current form, employers may need to issue notices compliant with the rule to those workers that fall within its protections, as well as refrain from requiring non-competes be signed by any workers in the future.

John Gannon is a partner with Springfield-based Skoler, Abbott & Presser, specializing in employment law and regularly counseling employers on enforcing restrictive covenants and protecting trade secrets. Meaghan Murphy is an associate with the firm and specializes in labor and employment law; (413) 737-4753.

Non-traditional Family Structures Challenge Modern Society

Law

The Decline of the Nuclear Family

By Julie A. Dialessi-Lafley, Esq.

Historically, a nuclear family (also known as an elementary family, atomic family, cereal-packet family or conjugal family), was the traditional family structure which is defined as a family group consisting of parents and their children (one or more), typically living in one home residence.

Statistically speaking, this is no longer the norm. In fact, 80% of households in the U.S. have a non-traditional family structure. Family structures that may be considered non-traditional or alternative include, but are not limited to, single-parent families (a single parent raises a child alone), cohabitation (an unmarried couple shares a household), same-sex families (two individuals of the same sex raise a family), grandparenting (grandparents raising grandchildren), and polygamy (marriage among at least three people).

Julie A. Dialessi-Lafley

“In the Baby Boom of 1960, there was one dominant family structure, with 73% of all children living in a family with two married parents in their first marriage. By 1980, 61% of children were living in this type of family, and today, less than half (46%) are in households with two married parents.”

Gay and lesbian households increased from 540,000 to 980,000 post-legalization of same-sex marriages, and multi-generational households have increased from 7 to 26%, which represents a 271% increase over a decade. The change in the common family structure from traditional to non-traditional happened quickly, and the laws have not moved as quickly to keep up with the times.

To highlight the change and how quickly it has taken place, consider that in the Baby Boom of 1960, there was one dominant family structure, with 73% of all children living in a family with two married parents in their first marriage. By 1980, 61% of children were living in this type of family, and today, less than half (46%) are in households with two married parents.

The formation of the non-traditional family, and the children that may result, can bring complex legal issues such as custody, visitation, child support, property division, estate planning, and constitutional issues, to name just a few of the most obvious ones. These are the legal issues only and do not even touch on social and emotional issues, which exist due to lack of understanding and/or acceptance in a society still rooted in traditional values.

Planning Is Paramount

Given how quickly the nuclear family has become the non-dominant family structure, one would think the members of non-traditional families would have all the resources they need available to them to address all the legal issues we face in our increasingly more complicated modern family society. Unfortunately, due to lack of concrete guidelines, non-traditional families are often forced to resolve these legal issues in a court process due to failure to understand the unique issues of their family structure or a lack of legal process.

By way of example, it is the unfortunate reality that some laws may not support the same federal estate or tax benefits in non-traditional households versus traditional ones. Federal benefits and retirement may not pass to non-married partners or same-sex spouses without actions taken specifically to designate beneficiaries. Proper tax planning and asset planning should be a priority in these households and relationships; however, these are areas often overlooked when dealing with the daily challenges of managing life and household dynamics.

When considering that most households have more than one income, likely have purchased real estate, have commingled assets, and may have blended families with children from other parents, non-married partners, or multi-generational households caring for children, the need to plan for the distribution of assets upon death is of paramount importance.

However, there is no specific, cookie-cutter estate plan for all non-traditional families to abide by. To ensure that property passes to your non-married partner, same-sex spouse, or non-biological and/or biological children, proper estate plans need to be put into place. These plans may include a will and trusts to ensure that goals of asset distribution are met upon a death.

In the same way, plans need to be put into place and properly documented to make sure that lifetime decisions such as health decisions, personal financial decisions, and end-of-life determinations can be made by your partner if not married, or by any person you chose. In the absence of estate planning, things may not be carried out as you would want them to be or by the people you would have selected had you taken the time to put a plan in place.

The non-traditional family should consider cohabitation agreements, prenuptial agreements, custodial agreements (if recognizable in your home state), as well as formal estate planning in order to protect themselves and their families in the event of a breakup, divorce, dissolution of a household, or death.

Seeking Answers

It can be difficult for partners or single parents to protect their rights as a family. There is no definitive answer to these challenges with custody and parenting arrangements. Many of the outcomes are fact driven and left to the discretion of a court when agreements cannot be reached by the parents or caregivers. When relationships break down, parties are less likely to be able to put the best interests of the children at the forefront in order to reach an agreement.

Does a non-married person who has raised a non-biological child automatically have parenting rights? Are they financially responsible for the child(ren)? Do grandparents who have been a caretakers to a grandchild get visitation if the child returns to the care of the biological parent? The answers are not as clear and obvious as you would think or hope they would be when considering the relationships that may have existed between children and caretakers of any kind.

The law, again, is fact-specific and gives great discretion to the courts in reaching a decision when parties cannot resolve these issues among themselves. Thus, while many partners find informal custodial arrangements and other systems work well for them, the majority face issues when problems arise.

Frequently, mainstream advice is given with traditional families in mind, which undoubtedly creates confusion for unconventional arrangements. All family units of any structure, but especially for certain non-traditional families, should consult knowledgeable family-law attorneys and financial professionals to develop the plans that best meet the unique needs of their chosen life.

Julie A. Dialessi-Lafley is a shareholder with the law firm Bacon Wilson, P.C. and chairs the firm’s Family Law department. She is a certified family law mediator, a member of the Springfield Women’s Leadership Council, a member of the United Way of Pioneer Valley board of directors, and is licensed to practice law in both Massachusetts and Connecticut; (413) 781-0560; [email protected]

The Case for a Receiver

By Contributor July 4, 2024

Law Special Coverage

Such a Move Could Bring Order to Cannabis Control Commission

By Scott Foster, Esq. and Johannah Huynh

For business and civic leaders in Springfield, the appointment in 2004 of the Springfield Control Board remains a watershed moment in the city’s fiscal history.

Regardless of how one felt about the city being plunged into receivership by the Legislature through the appointment of the Control Board, the results were unmistakable, as the city went from having an annual budget deficit of $41 million in 2004 to having cash reserves of $34.5 million when the Control Board was disbanded in 2009. Springfield has continued to enjoy the fruits of the newfound fiscal responsibility with an ever-increasing bond rating since 2009.

Bruce Stebbins, a longtime resident of Western Mass., but then a recent resident, was elected to Springfield’s City Council in the midst of the Control Board’s tenure and had a ringside seat to the Control Board’s temporary reign over the city. He continued to serve on the council through the end of the Control Board and then became become Springfield’s Business Development administrator, reporting to the city’s chief Development officer.

Scott Foster

Johannah Huynh

Stebbins’ experience engaging with the Control Board and helping bring the city to financial stability may prove immensely valuable if the Massachusetts Office of the Inspector General (OIG), the top watchdog agency in Massachusetts responsible for preventing fraud and waste and abuse of public funds, get its wish.

In a recent six-page letter addressed to the Commonwealth’s top elected officials, the OIG strongly urged the Massachusetts Legislature to immediately appoint a receiver to run the day-to-day operations of the Cannabis Control Commission (CCC) while the Legislature concurrently reviews the CCC’s statutory governance structure.

Over the past two years, the CCC has been plagued by internal turmoil, which the OIG suggested is partially a result of the CCC’s enabling statute failing to clearly define or delineate the duties and responsibilities of the leadership hierarchy. The OIG’s recommendations for the Legislature to overhaul the governance structure seek to address the root of the CCC’s problems.

“Not only might the temporary appointment of a receiver allow the Legislature to resolve the CCC’s governance structure, but it could also better promote the efficiency of a regulatory body, which would be a welcome development for the hundreds of businesses that rely on the CCC’s oversight.”

Since the enabling statute is, according to the OIG, “unclear and self-contradictory with minimal guidance on the authority and differing responsibilities of the CCC’s commissioners and staff,” it’s surprising that the CCC has been able to oversee $322 million in tax and non-tax revenue in the most recent fiscal year.

The OIG was also concerned that, despite spending $160,000 on mediation services since May 2022 to draft a governance charter, the commissioners have yet to release meeting minutes relating to the discussion of the charter, publicly release a draft charter, approve the new charter, or even provide assurance that the mediation process is complete. Even if a governance charter were adopted, the OIG emphasized, such a charter would not have the force of law — only binding the CCC to the extent the commissioners agree.

Internal Strife

Acting CCC Chair Ava Callender Concepion has pushed back on the call for a receivership by citing the commission’s recently proposed blueprint of a governance structure in its final stages of legal review subject to a public meeting.

The ongoing lack of an official chair of the CCC was also cited by the OIG as an area of concern. Amidst the suspension of CCC Chair Shannon O’Brien by the treasurer since Sept. 14, 2023, the commissioners have disagreed on who held the appropriate authority to appoint Callender Concepcion to the role of acting chair. Just last month, the CCC voted to relieve the acting executive director, Debbie Hilton-Creek, of her day-to-day responsibilities, leaving the CCC without a duly appointed leader to oversee the operations of the agency.

Even in the absence of clarity on who has authority to do what, the OIG notes that compliance with the Open Meeting Law, which prohibits two or more commissioners from discussing matters outside of a publicly posted meeting, is simply impractical with respect to a large state agency overseeing day-to-day operations.

With such decentralization of management and ambiguous authority at the CCC, the OIG has stressed the urgency of appointing a receiver with the authority to manage the day-to-day operations of the CCC. Specifically, the OIG recommended that the receiver should be expressly authorized to both carry out the daily administrative functions of the CCC and carry out said functions notwithstanding any assertion of by the chair, acting chair, or commissioners under Chapter 76.

If the Legislature were to heed the OIG’s findings, the appointed receiver would have unchallenged authority to carry out the CCC’s administrative operations until the Legislature has resolved the CCC’s governing structure.

In this context, for an agency responsible for bringing in approximately $322 million in tax and non-tax revenue in FY 2023 alone, a receiver that was statutorily authorized to do what the CCC cannot, per the OIG, would be in the best interests of the cannabis industry, its consumers, and ultimately the constituents.

Not only might the temporary appointment of a receiver allow the Legislature to resolve the CCC’s governance structure, but it could also better promote the efficiency of a regulatory body, which would be a welcome development for the hundreds of businesses that rely on the CCC’s oversight.

Scott Foster is a partner at Bulkley Richardson in Springfield, and Johannah Huynh is a summer associate at the firm.

A New World of HR Leadership

By Contributor July 3, 2024

By Allison Ebner

Over the past several decades, the human-resources position has slowly evolved from a very tactical and compliance-heavy role to a more holistic and thoughtful voice that helps lift an organization to bigger heights.

That slow pace of evolution has had a few Red Bull energy drinks recently and is now moving at the speed of light, threatening to leave behind HR professionals who are not moving to gain new competencies and tools.

The ‘new world of work’ is comprised of a complex ecosystem of operations, technology, and integration of human capital. In short, this symphony sounds perfectly harmonized only if all parts of the orchestra are playing the right notes. Like the meteoric rise in AI technology, the skills we must bring to our organization as the people professionals have taken a giant leap forward.

So, what are these new competencies that HR professionals need to bring to the table today? Let me quote my colleague, Kim Dunn for the simple definition first: “business first, people always.”

Business Acumen: Do you know the financial picture of your entire organization? Can you read a P&L or balance a full budget? Do you follow your industry trade publications or attend events to become more educated? Travel with your sales teams to talk with your customers and clients? It’s only when you have a full understanding of your business operations that you can effectively create a talent plan to support it.

Data Literacy: Does your current HR technology support the needs of your organization? Are you maximizing the tech that you have now? Reporting and metrics tied to your people operations are critical components of your strategic plans and initiatives.

Problem Solving and Critical Thinking: Ready to get uncomfortable? Figure out how to build relationships with people you don’t really like. Why? They probably think differently than you do. And that means they have a perspective that you don’t. As HR people leaders, we need to be able to clearly evaluate all sides of an issue or problem, and we can’t do that in a vacuum. By the way, this also includes building and flexing your negotiation skills.

Creating People-centric Cultures: This one feels closest to home for most HR professionals. But we need to expand our skills around helping our employees build resilience and understand that change and uncertainty are here to stay. They’re part of our daily lives now, and we need to learn to function in a world of VUCA — volatility, uncertainty, complexity, and ambiguity.

Organizational Transformation: This includes skills like refreshing your employer brand for talent development, updating your EVP (employee value proposition), and rebuilding your performance management system — big initiatives that put you at the center of the strategic table in your organization.

You may be feeling very comfortable with some of these competencies and less confident in others. That’s OK. Conduct an honest assessment of where you need to focus your attention and find resources that can help you build those skills.

EANE is here to help you with that initiative. Our HRYOUniversity programs are designed to help you be a well-rounded HR professional with all the talents you need to take your career to the next level. For a discussion about building your own learning pathway, contact me, and I’ll be happy to send you our self-assessment form and a few other resources to get you started.

Allison Ebner is president of the Employers Assoc. of the Northeast. This article first appeared on the EANE blog; eane.org

Report Calls for More State Investment in Regional Transportation

Features Travel and Tourism

Funding Drive

Regional public transit plays a vital role in communities across Massachusetts, but the current funding approach is fragmented, unfair to those living in rural areas, and unable to fully meet the needs of residents statewide, according to a report released by the Health Foundation of Central Massachusetts and the Quaboag Connector.

Research support was provided by the Center for State Policy Analysis at Tufts University, which examined the operational funding landscape for regional transportation providers, including the “patchwork” of 15 regional transit authorities (RTAs) that offer fixed-route and on-demand bus and shuttle service to millions of residents living outside of Greater Boston, which is served by the Massachusetts Bay Transportation Authority (MBTA).

Regional public transit connects people to jobs, healthcare, education and many other daily activities and is a lifeline to those who cannot afford a car, choose not to own one, or cannot drive.

“Where residents live in Massachusetts should not determine their mobility or access to opportunity.”

The report found that the funding mechanism for RTAs lacks transparency, is overly reliant on local contributions relative to the MBTA, and does not adequately account for issues of regional, rural, or economic equity. It argues that a sustainable funding model is necessary to improve the efficacy and fairness of the transit system as a whole and to fill gaps in the current system.

“We must do more to eliminate transportation deserts and to ensure that urban and rural regions alike have access to public transit, not only within each region, but across a more connected system across the state,” said Dr. Amie Shei, president and CEO of the Health Foundation of Central Massachusetts. “Transportation is a public good, and we must invest in it today so we can achieve the Commonwealth’s climate, economic-development, health, and housing goals of tomorrow.”

RTAs are more reliant on local contributions from the communities they serve than the MBTA system — about 20% versus just 8% to cover operating expenses. Setting aside any federal dollars, the gap is even wider, with 32% of the RTA system funded by local contributions versus 12% of the MBTA. In rural parts of the state, where the tax base is limited, these contributions amount to a significant financial burden for local municipalities and taxpayers.

The study was commissioned by the Quaboag Connector, a micro-transit initiative serving 10 rural communities west of Worcester and funded through a Synergy Initiative grant from the Health Foundation of Central Massachusetts. The Quaboag Connector, led by the Quaboag Valley Community Development Corp. and the town of Ware, has provided more than 66,000 rides over the past several years, serving as a lifeline for local residents.

“Where residents live in Massachusetts should not determine their mobility or access to opportunity,” said Melissa Fales, executive director of the Quaboag Valley Community Development Corp. “This report underscores the critical need to incentivize connectivity across RTA service areas, particularly in rural areas, and to identify dedicated funding streams to support independent micro-transit efforts that are working to fill gaps across the Commonwealth.”

Advocates for transportation equity have called for increased state funding to support RTA operating expenses. “Providing accessible, affordable transportation to rural communities can have transformative impacts on community health, but there is currently no funding mechanism that incentivizes large-scale development of these programs or supports them sustainably in the long run,” said Jen Healy, Quaboag Connector program manager.

The report notes that, in addition to more funding, which should be based on publicly shared principles and stable funding over time, the distribution of funding across the RTA network should be reassessed, along with the incentives to expand service by RTAs or independent transit providers to underserved populations.

“Given how important regional transit is for mobility and economic opportunity around the state, there’s tremendous value in thinking about how best to support RTAs and other innovative players,” said Evan Horowitz, executive director of the Center for State Policy Analysis. “The funding-by-inertia process we’ve got really isn’t up to the task.”

The report, titled “Regional Transit in Massachusetts: Where We Are and Where We Need to Go,” is available online at www.rideconnector.org/report.

“This report highlights the need for sustainable funding for regional transit and robust, coordinated planning to better provide transportation options for residents, particularly in rural areas,” said Pete Wilson, senior policy director of Transportation for Massachusetts, a statewide coalition focused on improving the Commonwealth’s transportation systems. “Implementing the recommendations of this report will increase regional equity and sustainability for access to public transportation for all residents.”

How to Qualify and Comply with Massachusetts Requirements

Workforce Development

Certified Diverse Businesses

By Julie A. Dialessi-Lafley, Esq. and Britaney N. Guzman-Bailey, Esq.

It is no secret that running a profitable business can be difficult. It can be even more difficult, however, for women, minorities, veterans, persons with disabilities, and members of the LGBTQ+ community, who often face systemic obstacles to achieving sustainable economic status for their businesses.

Julie Dialessi-Lafley

Massachusetts has created various public programs for certain diverse business enterprises to address this issue, such as the state’s certification program through the Supplier Diversity Office (SDO).

The SDO currently certifies the following business categories: Minority (MBE), Women (WBE), Portuguese (PBE), and Veteran (VBE). The SDO also has agreements with third-party organizations to certify additional business categories: Service-disabled Veteran (SDVOBE), Lesbian, Gay, Bisexual, and Transgender (LGBTBE), and Disability-owned (DOBE).

The qualifications and requirements for each are easily found on the Commonwealth’s website. For a quick list, an interested business may review the SDO certification program at www.mass.gov/certification-program-for-sdo.

In addition to certifying businesses, the SDO also provides certified diverse businesses with networking opportunities to market their goods and services to potential buyers. The SDO certification may give business enterprises a competitive edge when seeking contracts with the government because the SDO sets benchmark spending goals for state-agency buyers to purchase goods and services from certified business.

Additionally, applica nts enjoy the marketing benefit of being listed in the SDO’s directory of certified businesses. A complete list of SDO-certified businesses can be found again at the Commonwealth’s website.

For certification, a business entity must be both owned and controlled by eligible persons and or principals, be free of any conversion rights, be independent, and be ongoing. An eligible person is an adult permanent resident of the U.S. who is a minority, veteran, person of Portuguese origin, LGBT individual, person with a disability, and/or a woman. An eligible principal must own at least 51% of the business enterprise or, if a nonprofit organization, must be in control of the organization.

Clarification of the categories is helpful and may result in being eligible based on more than one criteria. For example, in order to qualify as a minority, one is defined as an Indian or Indigenous, Asian, Black, Hispanic, or Portuguese person.

Careful Consideration

The Commonwealth looks carefully at all requirements. In order to meet the requirement of being free from conversion rights, neither the applicant nor the eligible principals may be subject to a scheme that, if exercised, could result in diluting the ownership of the eligible principals below 51% or cause the entity to not be independent or not controlled by eligible principals.

Under the independence requirement, the applicant cannot be dependent or affiliated with, or influenced by, legally or in practice, any other business enterprise or organization regarding its day-to-day or long-term affairs. The applicant cannot rely on or regularly utilize employees or workforce who, while performing work for the applicant, are in the course of employment with or under the direct control of another person or business entity other than the applicant. The SDO will deem an applicant not independent if the applicant presents insufficient evidence of having the capability to perform, with its own workforce, equipment, and facilities, the work it contracts to perform.

As to the ongoing requirement, the applicant must show that it was not formed for the of taking advantage of the certification program. Reorganization and/or ownership changes that subsequently render an applicant eligible for the SDO certification that occurred within the 12 months prior to application will create a rebuttable presumption that the changes were made to take advantage of the program. In order to rebut the presumption, the applicant must show that it has available resources that are appropriate for a business of its type and that it actively seeks out contracts for services. Essentially, demonstrating ongoing business and having financial resources will demonstrate the legitimacy of the business seeking certification.

Part of the application process includes attendance at a mandatory, two-hour workshop before applying for the SDO certification. It is only after attending the workshop that an applicant may gain access to the application portal. The certification process may take up to 60 days following the submission of an application.

In order to determine if a business may qualify before undergoing the rigor of the workshop and application process, the SDO offers a self-assessment tool for anyone unsure if their business may qualify for a SDO certification. The assessment can be found at www.mass.gov/forms/take-the-certification-self-assessment.

SDO certification typically lasts for three years, at which point the certification will automatically expire. Companies are removed from the SDO directory after expiration unless certification is renewed in a timely manner.

If there have been no material changes regarding the business, the applicant should submit a renewal affidavit attesting to the same and comply with any requests for information from the SDO certification specialist. Changes in ownership, control, or independence are some of the circumstances identified as a material change; naturally, if there have been material changes, the applicant must notify the SDO. The applicant has within 30 days of the change to notify the SDO or risk decertification.

Opportunity Knocks

As of June 5, 1,924 Massachusetts businesses are registered as WBE, 1,442 MBE, 576 DBE, 111 VBE, 74 SDVOBE, 60 PBE, 44 LGBTBE, and 20 DOBE.

Of these registered businesses, 154 of them are nonprofits, and the major business industries include service, construction, goods, technology, transportation, and manufacturing. Although 3,050 Massachusetts businesses are certified, only 223 of those businesses are registered from Hampden County, 69 from Hampshire County, 52 from Berkshire County, and 16 from Franklin County.

There is a lot of opportunity for a registered business, and the numbers indicate there are numerous businesses in the local footprint that would likely qualify but have not registered yet. In addition to the publicity around the certification, the certification also provides the business access to exclusive contracts and subcontract opportunities to help its bottom line. Clearly, well-positioned businesses and entrepreneurs understand getting an edge on the competition may help secure their foothold in the marketplace, and being a certified diverse business in the Commonwealth may be one such way to stand out.

Becoming a certified diverse business may also result in new networking and marketing opportunities and expanded opportunities to contract with the Commonwealth of Massachusetts. As the requirements for certification may differ based on the location of the business and business type, it is important that you obtain legal advice for your business on its potential eligibility and to assist through the certification and/or recertification process.

Julie Dialessi-Lafley is a shareholder and Britaney Guzman-Bailey is an associate at Bacon Wilson, P.C.

Small Businesses Can Gain Big with Outsourced Accounting

Accounting and Tax Planning

Thinking Outside the Firm

By John Trusler, CPA

Small-business owners often wear many hats, juggling various roles across their operations. But let’s face it: doing it all is not feasible in the long term.

One often-overlooked yet game-changing tool is outsourced accounting. Outsourcing your business’s accounting function provides considerable benefits beyond number crunching. It allows owners to devote more time and resources to core business functions like strategic growth and nurturing customer relationships, which are crucial for long-term success. Continue reading to explore more ways small businesses can thrive through outsourced accounting.

“Outsourcing your business’s accounting function provides considerable benefits beyond number crunching. It allows owners to devote more time and resources to core business functions like strategic growth and nurturing customer relationships, which are crucial for long-term success.”

Scalable Solutions for Growing Businesses

As your business grows, its financial needs become more complex. Outsourced accounting services can seamlessly adjust to the size and needs of your organization. This scalability ensures that, as your operations grow, your financial oversight and capabilities expand alongside them, eliminating the need to hire additional in-house staff.

Additionally, outsourced accounting teams help streamline your annual tax preparation and compliance processes. It also offers comprehensive advisory services, including forecasting, IT support, and HR services.

Expertise and Professional Oversight

An outsourced accounting team provides businesses with the expertise of certified public accountants (CPAs) who have both private and public experience and a background working with multiple clientele within your industry. These experts deliver insight into financial reporting, automating transaction recording and account reconciliations, plus strategic planning often unattainable for small businesses.

Also, with in-house accounting staff, turnover can be a significant disruption. Outsourcing your team ensures continuity, mitigating the impact of such transitions.

Cloud-based Advantage

Outsourced accounting offers businesses a cloud-based advantage that enhances efficiency and transparency. Cloud-based technologies enable companies to access their financial records anytime, allowing for real-time, informed decision making. This approach enhances internal controls by improving bill-payment approval functions and overseeing the account reconciliation processes.

Conclusion

Outsourced accounting is much more than a cost-saving measure for small businesses. It’s a strategic choice that brings expertise, efficiency, technological advancement, and focused business growth.

By embracing outsourced accounting, small businesses can streamline their financial processes and gain valuable insights and stability, allowing them to concentrate on what they do best: growing their business and nurturing their customer base.

John Trusler is a tax director in the Hartford, Conn. office of Whittlesey. He has more than 19 years of experience in public accounting and four years in the private sector serving as the chief financial officer for one of the largest multi-specialty, for-profit medical groups in the Northeast. He is a member of the American Institute of Certified Public Accountants and the Connecticut Society of Certified Public Accountants.

Creating a Drama-free Workplace

Accounting and Tax Planning Special Coverage

By Kim Dunn

Many organizations face the challenge of creating and keeping their workplaces free from conflict and drama. Although drama comes from many places and in many forms, the only sure way to rid your organization of it is to get to its true source.

Identifying the cause or source is where you get to put your detective skills to work. Digging down to the root of the problem starts with asking deep and meaningful questions to draw out what the true issues are that are creating the conflict. To do this, you will need to become an expert fact finder, which is often easier said than done. In many instances, there is not just one issue, but many, and the path to identifying what has created the tension or conflict between employees is murky and blurred with emotions.

It is interesting that there are some organizational cultures that seem to breed drama and others where there is rarely an issue. My research and experience with managing conflict in the workplace has reinforced that failing to address the following items will almost always lead to workplace drama.

• Inauthentic Leadership. A lack of authenticity creates a belief that management is hypocritical and that they only talk the talk, but do not walk the walk. In this environment, employees lose enthusiasm for their jobs, passion for what the company represents, and, most dangerously, they lose trust.

• Lack of Transparency. Misguided attempts at confidentiality can create the sense that everything is a secret. In the face of lacking information, employees will write their own story, which is almost always dangerous. Remember, employees usually know more than you think they know. Old-fashioned though it may sound, it pays to be open with as much information as possible.

• Not Addressing Bad Behavior. Many leaders hope drama will just go away if they ignore it. We know all too well that bad behavior never goes away on its own. The fact that the drama exists must be acknowledged and accepted so that action can be taken to address it. Inconsistency in dealing with conflict not only leads to the erosion of trust, but also increases the chance that it will return for a second act.

What all of these causes have in common is that they lead to a lack of trust in leadership. When employees do not trust and respect leadership, they will quickly become disengaged.

Drama can be created from many sources, and once you have identified the ‘what’ and the ‘why,’ you can begin to take the action necessary to repair the damage or at least stop the bleeding.

If drama is alive and well in your organization, do not wait to take action to uncover and address the issues that are creating or feeding it. Drama impacts the bottom line because it takes up time, and time costs organizations money. That alone is reason enough to make it a top leadership priority.

In taking the steps to address workplace drama, it is important to remember that not all drama is created intentionally. It can be driven by insecurity, fear, or other emotional issues that have not been identified and dealt with. In many organizations, drama is created because people simply do not have the skills to manage conflict. Not many of us wake up in the morning looking forward to managing conflict; however, not having the skills to deal with it can lead to disastrous and expensive drama-filled workplaces.

The culture that you and the leaders are creating and cultivating in your organization must be a priority. By modeling the behaviors of collaboration, support, and customer focus, you will create a foundation where destructive behaviors are quickly identified and corrected. You can even take it a step further and build these behaviors into your performance-management system, which will help reward the best and address the rest.

The one thing we know for sure is that if conflict, aka drama, is not dealt with quickly, thoroughly, and consistently, it will never go away.

Kim Dunn is a Strategic Human Resources consultant at the Employers Assoc. of the Northeast. This article first appeared on the EANE blog; eane.org

Mid-year Tax Planning

By Contributor June 20, 2024

With Legislation Stalled, 2024 Sees Few Changes

By Kristina D. Houghton, CPA

After overwhelming approval by the House Ways and Means Committee on Jan. 19, the Tax Relief for American Families and Workers Act of 2024 was sent to the House under rules that would limit the ability to amend the text but would require approval by two-thirds of the chamber.

After a delay caused by a minor revolt of some GOP members who were trying to get an increase in the state and local tax deduction limit added to the bill as well as modifications of the child tax credit, an agreement was made to consider those in a separate bill in the near future, so the legislation passed by the House is the same version that was passed out of committee.

The bill provides for increases in the child tax credit, delays the requirement to deduct research and experimentation expenditures over a five-year period, reinstates the depreciation and amortization add-back through 2025 for purposes of calculating the business interest limitation, extends the 100% bonus depreciation through 2025, and increases the Code Sec. 179 deduction limitation, among other business-friendly provisions.

“Standard deduction amounts for 2024 have been inflation-adjusted and are higher than they were last year.”

Unfortunately, the Senate never addressed the bill. Due to the large number of provisions that are retroactively applicable to the 2023 tax year, and in some cases even earlier, the original hope was to get the bill passed before the start of the 2024 filing season. Since that deadline has passed, the goal is still to get the bill passed as soon as possible to minimize the administrative burdens on the IRS. There is no current date set for a Senate vote, and with this being an election year, the likelihood is slim.

As a result, planning for 2024 will not be much different than 2023, but let’s summarize the few changes, primarily inflation-related adjustments, effective for 2024. Pay attention to these changes because they can hurt or help your bottom line. Use this information now so you can hold on to more of your hard-earned money when it’s time to file your 2024 federal income tax return in early 2025.

Individual Tax Changes

Retirement Savings

Key dollar limits on workplace retirement plans and IRAs increase in 2024. The maximum 401(k) contribution is $23,000. People born before 1975 can contribute an extra $7,500. These limits also apply to 403(b) and 457 plans.

SIMPLEs have a $16,000 cap, plus $3,500 for individuals age 50 and older.

The 2024 contribution cap for traditional IRAs and Roth IRAs is $7,000, plus $1,000 as an additional catch-up contribution for individuals age 50 and older.

The income ceilings on Roth IRA pay-ins are higher for 2024. Contributions phase out at adjusted gross incomes of $230,000 to $240,000 for joint filers and $146,000 to $161,000 for single filers.

2024 deduction phaseouts for traditional IRAs range from adjusted gross incomes of $123,000 to $143,000 for joint filers covered by 401(k) plans and $77,000 to $87,000 for single filers and heads of household. If only one spouse is covered by the plan, the phaseout range for deducting pay-ins for the uncovered spouse is $230,000 to $240,000.

Adoption Tax Credit

The adoption credit is taken on up to $16,810 of qualified expenses in 2024. The full credit is available for a special-needs adoption even if it costs less. The credit phases out for filers with modified AGIs over $252,150 and ends at $292,150.

Standard Deduction

Standard deduction amounts for 2024 have been inflation-adjusted and are higher than they were last year.

The income-tax brackets for individuals are much wider for 2024 because of inflation during the 2023 fiscal year. Tax rates are unchanged.

Capital Gains and Qualified Dividends

The favorable tax rates on long-term capital gains and qualified dividends do not change. But the income thresholds to qualify for the various rates go up for 2024. The 0% tax rate applies at taxable incomes up to $94,050 for joint filers, $63,000 for heads of household, and $47,025 for single filers. The 20% tax rate starts at $583,751 for joint filers, $551,351 for heads of household, and $518,901 for single filers. The 15% tax rate is for filers with taxable incomes between the 0% and 20% break point.

The annual gift tax exclusion for 2024 is $18,000 per donee. That means in 2024, you can gift up to $18,000 ($36,000 if your spouse agrees) to each child, grandchild, or any other person without having to file a gift-tax return or tap your lifetime estate and gift tax exemption. Annual gifts over the exclusion amount will trigger filing of a gift tax return for 2024, but no gift tax will be due unless your total lifetime gifts exceed $13,610,000.

Business Tax Changes

Depreciation

First-year bonus depreciation isn’t as valuable in 2024. Last year, businesses could deduct 80% of the cost of new and used qualifying business assets with lives of 20 years or less. This year, the 80% writeoff decreases to 60%.

However, Section 179 expensing is higher. $1,220,000 of assets can be expensed in 2024. This limit phases out dollar for dollar once more than $3,050,000 of assets are put into use in 2024.

Note that the amount of business assets expensed can’t exceed the business’s taxable income. Bonus depreciation doesn’t have this rule.

Pass-through Income

A key dollar threshold on the 20% deduction for pass-through income rises in 2024. Self-employed individuals and owners of LLCs, S-corporations and other pass-throughs can deduct 20% of their qualified business income, subject to limitations for individuals with taxable incomes of more than $383,900 for joint filers and $191,950 for all others.

Conclusion

It is difficult to do tax planning in anticipation of what might happen in Washington, especially with this being an election year and the great divide on tax policy between the parties. Maybe the best planning would be to plan for possible tax changes in 2025 depending not only on the party that wins the presidential election, but also on the mark-up of the House and the Senate.

It could well be time to accelerate gifting, accelerate income, and postpone deductions. Perhaps with optimism, you can imagine that those postponed R&D and interest deductions will give you a deduction at a higher tax rate, and maybe this can lessen the pain of accepting possible increased tax rates.

Finally, remember that this article is intended to serve only as a general guideline. Your personal circumstances will likely require careful examination and should be discussed with your tax adviser.

Kristina D. Houghton, CPA is a partner at the Holyoke-based accounting firm Meyers Brothers Kalicka, P.C.

Eversource Offers Advice for Working Around Electricity

By Contributor June 7, 2024

Building Trades

Safety First

As the weather warms up and people spend more time outside getting their yards and homes ready for the summer, it’s important to keep safety in mind before taking on that next project, especially when dealing with electricity. Eversource is reminding customers that working around electric lines or equipment can be dangerous or even fatal if proper precautions aren’t taken.

“Safety is something we think about every day; it’s part of our daily workflow and is ingrained in all that we do,” Eversource Vice President of Safety Ken Bogler said. “Our crews work around electric equipment in all kinds of weather conditions and receive extensive training to make sure any repair, upgrade, or maintenance work is done as safely as possible. We want to make sure our customers are armed with the information they need so they can remain vigilant and take the necessary precautions when around electric equipment.”

“We want to make sure our customers are armed with the information they need so they can remain vigilant and take the necessary precautions when around electric equipment.”

Customers should always assume power lines are live. Anyone planning to work outside with ladders or power tools should know exactly where electric equipment is located, know what it’s touching, and have a plan to avoid it. Even a quick brush against an energized wire can cause serious harm.

Eversource encourages all customers to keep these additional safety tips in mind throughout the year:

Outdoor Safety Tips

• Don’t touch anything or anyone that’s touching a downed wire.

• Stay as far away as possible from downed wires and fallen trees that could have wires caught in them. Broken power equipment can feed electricity directly into the ground, charging the ground.

• For anyone in an accident with a car or other vehicle near a downed power line, stay in the vehicle until an Eversource worker or first responder says it’s safe to exit.

• Call before you dig. Call 811 or (888) 344-7233 at least three days prior to digging so that utilities can mark underground wires, cables, and pipelines.

• Keep kites, Mylar party balloons, model planes, and drones far away from power lines.

• Always store electrical equipment indoors and never use corded power tools in wet or damp conditions.

Indoor Safety Tips

• Avoid touching any bare wires, faulty appliances, or electrical outlets; always assume a wire or electrical appliance is energized.

• Cover unused wall outlets with plastic safety caps to protect small children and pets; consider installing tamper-resistant receptacles if your outlets do not currently have them to prevent foreign objects, other than electrical plugs, from being inserted into the outlet.

• Never overload outlets by using multiple adapters or power strips as this can cause overheating and fire.

• Regularly check wires and extension cords for signs of wear and replace those that are frayed or cracked.

• Keep an all-purpose fire extinguisher on every floor of a home; never attempt to put out an electrical fire with water.

• Install outlets with a ground fault circuit interrupter in rooms where water and moisture are present.

• Unplug appliances while cleaning or repairing them.

HCC, I Found Light Against All Odds Partner to Help Women at Risk

By Contributor May 24, 2024

Education

Giving a Hand Up

On April 30, representatives from Holyoke Community College and the Springfield-based nonprofit I Found Light Against All Odds agreed to work closely to increase educational and workforce training opportunities for young women at risk for homelessness.

HCC President George Timmons and Stefan Davis, CEO, president, and founder of the Springfield-based I Found Light Against All Odds, met at the college to sign a memorandum of understanding outlining the terms of the agreement.

I Found Light Against All Odds provides support services for young women to help address social and economic issues that can lead to poverty and homelessness. Specifically, by signing this memorandum, HCC and the foundation agree to broaden support services for area women, ages 18-20, to help them obtain safe housing and career opportunities through education and training.

“This agreement is firmly in line with HCC’s mission and vision to remove barriers to student success, to break cycles of poverty, and provide opportunities for education and training that will allow more young women to be successful, earn a livable wage, and enjoy all that life has to offer,” Timmons said.

According to statistics cited in the memorandum of understanding, Hampden County has a poverty rate of 16.9%, which is higher than the national average of 11.5%. Meanwhile, the poverty rates in Springfield and Holyoke are even higher at 25.5% and 26%, respectively.

“This agreement is firmly in line with HCC’s mission and vision to remove barriers to student success, to break cycles of poverty, and provide opportunities for education and training that will allow more young women to be successful, earn a livable wage, and enjoy all that life has to offer.”

“At the same time, research shows that many community-college students in Massachusetts experience hunger and/or homelessness, as well as other types of basic needs insecurity that can serve as barriers to degree completion and thereby limit economic sustainability and mobility,” the memorandum states.

Davis thanked Timmons and HCC faculty for the partnership. “We look forward to working with you and your staff to help these young women that are in darkness, searching for light and education. These women have dealt with a lot of trauma throughout their lives and are looking for ways to end the cycle of poverty. This collaboration proves that we care about them and that they have our support.”

Through the agreement, the foundation is looking to connect with HCC’s existing academic support services, such as admissions and financial-aid counseling, as well as career and transfer advising and more.

“It’s a natural fit between an agency that works to support young women and a college, HCC, which is known for its wraparound support model,” said Jeff Hayden, HCC’s vice president of Business and Community Services.

Before the signing, Davis introduced a video about I Found Light Against All Odds that featured interviews from two of its consumers. One of them was Alisandra Pantoja from Springfield, who attended the April 30 event.

Pantoja also stood beside Davis as he put pen to paper. She will be taking advantage of all the opportunities outlined in the agreement as a student at HCC starting in September, and plans to major in human services. “I like working with people,” she said.

Massachusetts Senate Proposes Free Community College for All

By Contributor May 24, 2024

Education

Expanded Opportunity

On May 6, Senate leaders unveiled MassEducate, a proposal for tuition-free, universal community college for all Massachusetts residents, aimed at boosting the state’s workforce and expanding opportunity for students and families in every part of the Commonwealth.

The announcement was made during an event at Middlesex Community College in Lowell, where Senate President Karen Spilka, Senate Ways & Means Chair Michael Rodrigues, and Senate Higher Education Chair Jo Comerford gathered with members of the Senate, presidents of the Commonwealth’s 15 community colleges, business leaders, students, and advocates.

“Today, we shift conversations about college from ‘I wish’ to ‘I will’ for thousands of students and families in Massachusetts,” Spilka said. “We are investing in talent that is right here at home and opening the workforce floodgates to employers who are starved for graduates, so Massachusetts keeps the competitive edge that we pride ourselves in.”

MassEducate would invest $75.5 million in new spending to cover tuition and fees for all residents, as well as up to $1,200 for books, supplies, and other costs to students who make up to 125% of median income in the state. Pell-eligible students already eligible for a books stipend through state financial aid would also be eligible for a stipend for books, supplies, and costs of attendance, for a combined amount of up to $2,400 per year.

“Today, we shift conversations about college from ‘I wish’ to ‘I will’ for thousands of students and families in Massachusetts.”

“With the historic investments announced today, ushering in universally free community college and more, the Senate doubles down on our commitment to build back the power and promise of public higher education,” Comerford said. “The Senate investments will propel the Commonwealth forward toward greater social equity and greater economic competitiveness.”

The Senate’s plan, which will be included in the chamber’s FY 2025 budget, would continue to invest in programs created in the FY 2024 budget, including $18 million in free nursing programs at community colleges and $24 million in free community college for residents over age 25.

Students would be eligible for free tuition, fees, and the stipend in the fall 2025 semester if the proposal is included in the Commonwealth’s final FY 2025 budget.

To support students whose education paths can be jeopardized by unanticipated life events, Senate leaders announced the creation of the Student Persistence Fund, a $10 million investment that would go directly toward aiding community colleges and state universities in supporting low-income students with such costs that are shown to put someone’s chance of finishing school at risk, such as transportation, childcare, or food insecurity.

Understanding that retention and graduation is directly tied to support systems like advising and career planning, the Senate also proposed an $18.3 investment in the Supporting Urgent Community College Equity through Student Services (SUCCESS) program, which is designed for community colleges to invest in wraparound supports and services using models proven to strengthen outcomes for students facing systemic barriers, especially for colleges’ most underserved populations.

To ensure the long-term fiscal sustainability of the program, the Senate’s proposal would institute annual tuition-increase caps at community colleges set at an inflation index. And to hold community colleges accountable for producing positive outcomes, the proposal creates a working group to re-evaluate community-college performance funding, aimed at better aligning state funding with key metrics such as student success and workforce alignment.

Recognizing that many Massachusetts students opt directly for four-year universities, the budget makes a $105 million investment in the Massachusetts financial-assistance program MassGrant Plus, which keeps college costs low for students at all public colleges in the Commonwealth. This increased investment builds on recent investments that have allowed all Pell-eligible students in Massachusetts to go to a community college, state university, or UMass campus without paying tuition or fees.

The proposal additionally includes policy directives to study future paths to success for the Commonwealth’s students. It directs the Department of Higher Education to improve the credit transfer pathway between two- and four-year institutions so students can easily transfer to a public four-year institution. It also creates a new commission to evaluate current state financial assistance for students to attend state universities and UMass and evaluate ways to further ensure accessibility and affordability of an education at these institutions.

Research Probes Relationship Between Sleep, Memory in Infants

By Contributor May 24, 2024

Technology

The Science of Naps

A UMass Amherst sleep scientist, funded with $6.7 million in grants from the National Institutes of Health (NIH), has launched two unprecedented studies that will track over time the brain development of infants and preschoolers to confirm the role of napping in early life and to identify the bioregulatory mechanisms involved.

Rebecca Spencer, a professor of Psychological and Brain Sciences who is well-known for her groundbreaking research into napping, is testing her theories about what’s happening in the hippocampus — the short-term-memory area of the brain — as babies and young children undergo nap transitions.

This new research is expected to become the gold standard of scientific evidence that emphasizes the importance of healthy sleep for young children as their brains develop. The findings will help inform nap policies for preschool and pre-kindergarten and be useful to teachers and parents of both neurotypical and neurodiverse children.

“The work we’ve been doing has always pointed to this interaction of sleep and brain development,” said Spencer, who carries out research in her Somneurolab at UMass Amherst. “We think that kids get ready to transition out of naps when the brain is big enough to hold all the information of the day until nighttime sleep.”

The study involving preschoolers is a collaboration between Spencer at UMass Amherst; Tracy Riggins, a developmental psychologist specializing in memory development at the University of Maryland (UMD); and Gregory Hancock, a UMD professor of Human Development and Quantitative Methodology. Previous research by Spencer and Riggins showed differences in the hippocampi of kids who nap compared to those who have transitioned out of naps.

“The work we’ve been doing has always pointed to this interaction of sleep and brain development. We think that kids get ready to transition out of naps when the brain is big enough to hold all the information of the day until nighttime sleep.”

“So far, we’ve used cross-sectional approaches,” said Spencer, referring to research that analyzes data at one point in time, as opposed to longitudinal studies that involve repeated observation over time. “We really need to show longitudinally within a child that the point when they transition out of naps is predicted by a transition in the development of their hippocampus.”

The hippocampus is the short-term location for memories before they move to the cortex for long-term storage. Naps allow children with an immature hippocampus to process memories. Young children give up their afternoon nap, not based on their age, but their brain development, Spencer hypothesized.

“Naps are beneficial to everybody. Naps protect memory for everybody, no matter what age. Kids who are habitual nappers really need the nap. If they don’t nap, they get catastrophic forgetting. That’s the difference between habitual and non-habitual nappers — not how good is the nap, but how bad is staying awake,” she explained.

Added Riggins, “in the end, being able to tell parents that those little deviations from routine that keep their children from napping might not have these huge implications for a neurotypical child in the long run would be great. And the more we know about how the brain works in a typically developing child during this nap transition, the more we will be able to know about where we could possibly intervene to help neurodiverse children — like children with autism and ADHD, whose sleep patterns tend to be disrupted — since we will have some sort of scientific basis.”

Go to Sleep

The research team is recruiting 180 children, ages 3 to 5. The researchers will track their brain development, memory performance, and nap status over the course of one year at three checkpoints. During the first and second sessions, the children will wear activity-tracking watches and EEG equipment to record naps and overnight sleep. They will also play memory games before and after naps. The children will undergo an MRI brain scan during the third session.

Monica and David Dumlao signed up their son Miles, 4, for the preschool study after watching the Netflix documentary series Babies, which features Spencer in the episode about sleep. “We like learning about the neuroscience behind brain development,” Monica Dumlao said at a recent study session in Spencer’s lab. “We thought this was a good opportunity to contribute to the science about the importance of naps.”

In the three-part infant study on nap transitions and memory, Spencer is studying the period before and after babies transition from two naps — one in the morning and one in the afternoon — to one, richer afternoon nap. She is recruiting 140 infants 7 to 9 months old. The babies will play a memory game before and after their naps. Their brain activity will be recorded during their naps using a non-invasive electrode cap. The sessions will take place at 9, 12, and 15 months.

“We think as they are getting ready to drop the morning nap, staying awake in that morning interval will be less and less damaging to their memory,” Spencer said. “But we don’t think that’s going to happen with the afternoon nap at this age. We think the afternoon nap stays superimportant.”

Fostering a Culture of Respect

By Contributor May 22, 2024

Custom Content Thought Leadership

By John Henderson

Let’s face it: we are living and working in a socially and politically divisive world that can have a negative impact on a company’s culture. So what can an organization do about this in order to create and sustain a culture of respect in their workplace?

It really comes down to courtesy — being polite and aware of other’s concerns and feelings, and practicing the good manners of saying “hello,” asking “how are you?” and actually waiting for the person to respond rather than continuing to walk by them.

We foster a culture of respect by appreciating everyone for their uniqueness and intrinsic worth as a person — what they bring to the team and organization. We realize that we must create a place where people can be their authentic self at work. We show that we value and support others. And the most important thing is that we accept people for who they are and what they do, but we don’t necessarily need to agree with their opinions or values.

The last one is where many organizations fall short by allowing people’s differences to get in the way of having a productive and positive environment where people feel valued and feel that they belong.

As in real estate, where the most important things are location, location, and location, the things that are most important to creating a respectful workplace are communication, communication, and communication. We must lead by example and communicate openly and constructively.

We must also have embedded in our culture the willingness to effectively address disrespectful behavior, not turn and walk away from it. When communicating, make sure it is clear, specific, and understood by the recipient by asking them to repeat back what they heard and what you agree upon. Most importantly, remember that our non-verbal communication is 70% of what is conveyed.

To foster a culture of respect does not have to be a difficult undertaking. Ensuring that the values and norms of the organization are understood by all is the first step, but living them is the next step that needs to be part of everyday life in your organization.

John Henderson is director of Learning and Development at the Employers Assoc. of the NorthEast. This article first appeared on the EANE blog; eane.org

How Connected Technology is Driving Sustainability

By Contributor May 20, 2024

Weight Loss, Miracle Medications, and the Workplace

By Contributor May 10, 2024

Law

Gainful Employment

By Abby M. Warren, Esq. and Virginia E. McGarrity, Esq.

Whether you are picking up a well-respected periodical or a celebrity newsmagazine, you cannot avoid reading about semaglutide injection drugs — drugs used to control blood-sugar levels for individuals with type-2 diabetes and weight loss.

‘Ubiquitous’ is the only word to describe the news coverage of these ‘miracle medications.’ As news has spread about these medications, their use has expanded far outside of Hollywood to individuals across the country, ultimately leading to a reported shortage. So, what impact, if any, does weight, weight loss, or the spread of such medications have on the workplace?

Weighty Considerations

First, studies have long concluded that discrimination based on appearance, including weight, occurs in employment and other areas of life and that it may disproportionally impact a specific group or groups of individuals. Likely in response to such evidence, effective Nov. 26, 2023, New York City passed a law protecting individuals who live in, work in, or visit the city from discrimination based on their height or weight regarding employment, housing, and public accommodations.

While New York City may be an early adopter of such a law, there may be more jurisdictions that follow this trend. Further, on the federal level, the Equal Employment Opportunity Commission has long taken the position that height and weight are generally unacceptable pre-employment inquiries as they may disproportionately impact employees of different protected characteristics. In short, weight has always impacted the workplace, including workplace decisions.

Second, there may be harassment or workplace bullying related to appearance, including weight. Harassment, whether sexual or based on other protected characteristics, can involve comments or actions related to the physical body and appearance. The same is true of bullying and targeting in the workplace. In today’s climate, where millions of employees are being prescribed or taking weight-loss drugs, this may include employees asking questions of a co-worker who has lost weight, asking whether a co-worker is taking a weight-loss drug, making judgmental statements, stigmatizing such individuals, and similar behavior.

While harassment and bullying related to appearance may not be new, such treatment based on the perception that an employee may be taking a weight-loss drug could be a more recent area with which human resources must grapple.

Third, workplace culture may be impacted by the recent focus on weight and weight-loss medications, and the level of such impact may depend on several factors. For example, the employer’s geographic location, the industry, the overall focus on health and wellness in the workplace, and the employer’s commitment to inclusivity and belonging may all impact how weight and height will be viewed, including using such weight-loss medications.

In light of these workplace considerations and the attention that these weight-loss medications have received in recent months, a number of employers have opted to implement clinical lifestyle programs and personalized weight-loss management plans. The goal of these programs is to reduce the number of employees who might benefit from weight-loss medications like Wegovy.

To the extent employers have control over their healthcare coverage (fully insured plans are typically subject to state insurance laws and individual determinations made by insurance carriers), the decision of whether to cover these weight-loss medications is a challenging one. While these drugs have potential for long-term improvement in the health of employees and can drive future cost savings for the health plan, the cost of covering them today may not align with budget constraints and sustained increases in healthcare spending over the long term.

For example, the current list price of Wegovy is more than $1,300 per month, and most patients take it indefinitely to maintain their weight loss. North Carolina recently announced it would no longer cover Wegovy and other similar weight-loss medications for its employees, estimating that such continued coverage would cause premiums to double for all employees (not just those who are taking the medications). While it is difficult to determine how many private-employer health plans are covering these weight-loss medications, it does not appear that such coverage matches the rampant surge in popularity these medications have experienced in the past year.

Advice for Employers

At this juncture in history, where celebrities, media, and the American public are hyper-focused on weight, including weight-loss medications, what actions can employers consider?

First, it is essential to continue fostering a positive and inclusive work environment that extends to weight, height, body shape, and appearance. Trainings, policies, town halls and education, and other visible commitments to such inclusivity can all support such a culture.

Second, businesses should establish specific training of managers, supervisors, and individuals involved in recruiting and hiring about weight and height discrimination and bias (including studies that have demonstrated the existence of this bias), and how these employees can foster an inclusive work environment, and remove any relevant barriers that may exist.

Lastly, employers may wish to review their current culture, policies, and benefits to determine if the employer is supporting the health and well-being of employees and their health journeys, and whether there are potential areas of improvement.

Abby Warren and Virginia McGarrity are partners at Robinson+Cole in Hartford, Conn. Warren is a member of the firm’s Labor, Employment, Benefits, and Immigration Group, while McGarrity is a member of the Employee Benefits and Compensation Group.

MiraVista Expands with New Adult Inpatient Treatment Beds

By Contributor May 10, 2024

Healthcare News

Meeting a Need

MiraVista Behavioral Health Center recently announced the expansion of its facilities with the opening of new adult inpatient treatment beds. These adult beds are in addition to the 16-bed adolescent unit which was recently renovated and now reopened.

The addition of these specialized beds reflects MiraVista’s ongoing commitment to meeting the growing demand for high-quality mental-healthcare services. With mental-health challenges on the rise globally, the Holyoke facility recognizes the importance of providing comprehensive and compassionate care to individuals with mental illness.

“We believe that everyone deserves access to effective treatment in a supportive environment, and these new beds will enable us to provide specialized care to more individuals in need.”

“Our decision to expand our inpatient treatment capacity underscores our dedication to serving our community and the Commonwealth and addressing the increasing need for mental-health services,” said Shelley Zimmerman, MiraVista’s hospital administrator. “We believe that everyone deserves access to effective treatment in a supportive environment, and these new beds will enable us to provide specialized care to more individuals in need.”

The new adult inpatient beds will offer a range of therapeutic interventions tailored to meet the unique needs of each patient. MiraVista’s multi-disciplinary team of experts, including psychiatrists, psychologists, social workers, and nurses, will work collaboratively to develop personalized treatment plans focused on promoting healing and recovery.

In addition to individualized therapy sessions, patients will have access to group therapy, medication management, recreational activities, educational workshops, and peer support, all designed to foster personal growth and empowerment. MiraVista’s holistic approach to treatment emphasizes wellness and resilience, empowering patients to achieve lasting positive change in their lives.

Direct admission without first being seen in an emergency department is a new process MiraVista introduced with the reopening of its adolescent unit.

Hope and Support

MiraVista also recognized May as Mental Health Awareness Month with a flag raising on May 9 and by illuminating its façade green.

“Green is used for the month to symbolize hope and support for individuals living with a mental illness,” said Kimberley Lee, chief of Creative Strategy and Development. “Our clinicians work across populations to help patients successfully manage their mental-health challenges and lead fulfilling lives in community.”

In conjunction with the Substance Abuse and Mental Health Services Administration’s (SAMHSA) observance of the month, Lee explained, MiraVista will highlight on its social media the diverse mental-health needs of various populations and encourage people to wear green.

“These 31 days are about advancing better understanding of mental health as a component of overall health and the importance of seeking evidence-based treatment for it when needed,” she said. “Whether someone is navigating personal challenges or extending empathy to others, this month holds significance for us all in showing support for mental healthcare.”

Lee said MiraVista will follow SAMHSA’s suggested weekly themes in highlighting the mental-health needs of older adults, children and teens, marginalized racial and ethnic groups, and those who identify as LGBTQIA+ and, as a result of bullying and discrimination, are at high risk for mental-health conditions.

“We are amplifying our efforts during May to destigmatize mental health, enhance understanding, and cultivate a supportive environment,” Lee said. “Promoting mental health and treatment for it benefits everyone — from the individual managing it to the family and friends who love them, to the community in which they live and contribute.”

Non-compete Agreements May Be in Jeopardy

By Contributor May 9, 2024

Law Special Coverage

Challenging the Rule

By Trevor Brice, Esq.

On April 23, the Federal Trade Commission (FTC) issued a final rule banning non-competition agreements for all employees. While this action by the FTC was expected, there were many unanswered questions about the final impact of the non-compete rule in regard to existing non-compete agreements and its scope as applied to future non-compete agreements. These questions were answered under the final rule as promulgated.

Most Non-competition Agreements Banned

The FTC’s final rule banning all non-competition agreements is effective 120 days after its publication in the Federal Register. As of the effective date, all non-competition agreements are banned, with close to no exceptions, except for franchisor/franchisee relationships and for sales of a business between buyer and seller.

Independent contractors are also included under the umbrella of employees that would no longer be subject to non-competition agreements under the final rule. This would effectively mean that many employees in industries such as film, finance, and other professional services now have the right to switch between employers, which the FTC states “will ensure Americans have the freedom to pursue a new job, start a new business, or bring a new idea to the market.”

Trevor Brice

“The U.S. Chamber of Commerce has already vowed to block the rule, calling it ‘an unlawful power grab’ and arguing that the authority to govern non-competition agreements should be left to the states.”

However, and of note, the FTC does not have jurisdiction over nonprofit employers, so non-competition agreements are enforceable in this regard despite the FTC’s final rule.

Final Rule Retroactive as to Lower-wage Workers

In addition to prohibiting all non-competition agreements after the effective date of the final rule with limited exceptions, the FTC’s rule is retroactive, prohibiting certain non-competition agreements before the effective date of the rule as well.

Existing non-competition agreements can remain in effect as to senior executives, which are defined in the rule as employees in ‘policy-making positions’ making at least $151,164 per year. Existing non-competition agreements with employees who do not meet this definition are no longer enforceable per the final rule.

Despite the final rule, employers do not need to modify existing non-competition agreements by rescinding them. Employers do, however, need to notify their workers that the employer will not enforce non-competition agreements in the future. The FTC has included in its final rule model language for informing employees of this change, which can be communicated through email, text, or in paper format.

The final rule does not generally impact non-disclosure agreements or non-solicitation agreements unless they prohibit a worker from seeking or accepting work or operating a business. Employers should be aware that more restrictive state laws governing non-competition agreements remain in effect.

Challenges to Final Rule Looming

As of the announcement of the FTC’s final rule, challenges are already looming. The U.S. Chamber of Commerce has already vowed to block the rule, calling it “an unlawful power grab” and arguing that the authority to govern non-competition agreements should be left to the states.

The statement issued by the Chamber of Commerce goes on to note that, “since its inception over 100 years ago, the FTC has never been granted the constitutional and statutory authority to write its own competition rules. Non-compete agreements are either upheld or dismissed under well-established state laws governing their use.”

This announcement by the U.S. Chamber of Commerce will undoubtedly lead to other challenges through the court system. Indeed, a Dallas-based global tax-services and software provider has already filed suit against the Federal Trade Commission over the impact of the final rule.

The FTC, as the Chamber of Commerce rightly points out, has no authority to write its own competition rules. The FTC can, however, make rules if it goes through the proper rule-making process, including introducing proposed legislation and leaving it open to comment for a certain amount of time, which did occur here.

However, even following this process does not ensure that the rule will stand. The rule still remains open to court challenges from the Chamber of Commerce, individuals, or organizations affected by the rule or any other stakeholders within the final rule. This could mean that changes would be on the horizon for the rule, and possibly a narrowing of its already expansive application.

Takeaways

As noted, the FTC’s final rule is already being challenged through the court system, and a challenge from the Chamber of Commerce will most likely follow suit. Therefore, if an employer has existing non-competition agreements, the employer may not need to rescind them just yet.

Further, if employers are intending to enter into non-competition agreements that are reasonable and enforceable under existing state laws, other options, such as non-disclosure agreements and non-solicitation agreements, may have to be used, but it would be prudent to wait on further ruling from the existing challenges to the final rule.

In the meantime, consultation with an attorney will aid in navigating the changing landscape of non-competition agreements.

Trevor Brice is an attorney who specializes in labor and employment-law matters at the Royal Law Firm LLP, a woman-owned, women-managed corporate law firm certified as a women’s business enterprise with the Massachusetts Supplier Diversity Office, the National Assoc. of Minority and Women Owned Law Firms, and the Women’s Business Enterprise National Council.

MHA Launches New Community Support Program

By Contributor May 9, 2024

Health Care Special Coverage

Toward Their Best Life

The Mental Health Assoc. (MHA) recently announced the launch of its new community support program (CSP), which is part of its BestLife Clinic.

The program aims to help individuals who are facing social, economic, and environmental factors that significantly impact their ability to access healthcare and live independently. CSP is a mobile, short-term (three to six months), intensive case-management service that helps clients who are dealing with unemployment, food insufficiency, transportation, and housing issues.

CSP services are available to individuals who have been diagnosed with a mental-health, substance-use, or co-occurring disorder. To qualify for these services, individuals must have had either a psychiatric hospitalization discharge within the past six months, multiple emergency-room visits within the past 90 days, or documented barriers to accessing and consistently utilizing essential medical and behavioral-health services. Clients must be at least 18 years old and actively enrolled in therapy, and they must be residents of Hampshire or Hampden county and not receiving other case-management services.

“The services they provide allow for our clinicians, recovery coaches, and medication prescribers to focus on their main tasks of providing therapy, peer support, and treatment, while they also serve as another set of eyes helping to monitor our participants’ needs and overall well-being.”

“Community support programs are very important for our participants as well as for our other service providers, such as clinicians, recovery coaches, and medication prescribers,” said René Piñero, vice president of Behavioral Health and Clinical Operations. “The services they provide allow for our clinicians, recovery coaches, and medication prescribers to focus on their main tasks of providing therapy, peer support, and treatment, while they also serve as another set of eyes helping to monitor our participants’ needs and overall well-being.”

Clients who qualify will work with MHA’s behavioral-health case managers to improve their overall lives by developing their daily living skills and helping them access critical resources such as benefits, housing, and healthcare. Clients will also receive assistance with accessing recovery-oriented peer-support groups and temporary assistance with transportation to essential medical and behavioral health appointments.

CSP services are available via community outreach, telehealth, and in-person. MHA accepts referrals through its Central Intake Department and accepts MassHealth and some insurances. To get in touch, call (844) 642-9355 or email the BestLife Clinic at [email protected].

MHA provides access to therapies for emotional health and wellness; services for substance use recovery, developmental disabilities, and acquired brain injury; services for housing and residential programming; and more. Its goal is to provide person-driven programming to foster independence, community engagement, wellness, and recovery.

What Are Some Advantages of Senior Living Communities?

By Contributor April 26, 2024

Business of Aging

Season of Change

By the Arbors Assisted Living

Senior planning presents significant challenges as society ages. Evolving care needs; quality of care; emotional, physical, and financial burdens on caregivers; social isolation and loneliness; and healthcare accessibility are all concerns families face when recognizing a need for change.

While change can be scary, it’s also an inevitable part of life and can lead to many positive outcomes, such as new opportunities and fresh perspectives. In regard to senior planning, here are some positive changes you may find in addition to improving the quality of life and overall well-being of your loved one:

Person-centered Care: There has been a shift towards person-centered care in senior living communities, focusing on individual preferences, needs, and goals. This approach emphasizes dignity, autonomy, and respect for seniors, allowing them to make choices about their daily routines, activities, and care.

Increased Focus on Wellness: Many senior living communities now offer comprehensive wellness programs designed to promote physical, emotional, and social well-being. These programs may include fitness classes, recreational activities, educational seminars, and mental-health support services.

“Many senior living communities now offer comprehensive wellness programs designed to promote physical, emotional, and social well-being. These programs may include fitness classes, recreational activities, educational seminars, and mental-health support services.”

Age-friendly Design: Senior living communities are incorporating age-friendly design principles to create environments that are accessible, comfortable, and supportive of older adults’ needs. This includes features such as wheelchair ramps, grab bars, non-slip flooring, and well-lit common areas.

Community Engagement: There is a growing emphasis on fostering community engagement and social connections among seniors in senior living settings. Communities offer social events, group outings, volunteer opportunities, and intergenerational programs to combat social isolation and loneliness.

Flexible Living Options: Senior living options have become more diverse and flexible to accommodate varying preferences and care needs. In addition to traditional assisted living and nursing home facilities, there are now more options for independent living, continuing-care retirement communities, and aging in place with home-care support.

Culinary Excellence: Senior living communities are elevating their dining experiences by offering restaurant-style dining, diverse menus, and nutritious meal options tailored to seniors’ dietary preferences and health needs.

Emphasis on Lifelong Learning: Senior living communities are providing opportunities for lifelong learning and personal enrichment through educational classes, workshops, and cultural activities. These programs help seniors stay mentally stimulated, engaged, and connected to their interests and passions.

Family Involvement and Support: Senior living facilities are recognizing the importance of involving families in the care and decision-making process. They may offer family-support services, communication channels, and family-engagement activities to foster collaboration and support among residents and their loved ones.

Advancements in Memory Care: For seniors living with Alzheimer’s disease and other forms of dementia, there have been advancements in memory-care programs and specialized services. These programs focus on providing personalized care, sensory stimulation, and meaningful activities to enhance quality of life and preserve cognitive function.

Having the Conversation

Many families we encounter struggle with navigating this type of change with their loved ones. While we recognize the benefits and importance of senior planning, it’s important to understand that the seniors in our lives come from a different generation and may not fully grasp how much the industry has evolved.

Initiating a conversation can be the most challenging aspect. However, when explaining the need for change to a senior, it’s crucial to approach the discussion with empathy, respect, and clarity. Here’s how you might do so:

Acknowledge Feelings: Start by acknowledging any concerns or fears the senior may have about the proposed change. Let them know that it’s normal to feel apprehensive about new things, but change can also bring positive opportunities and improvements.

Highlight Benefits: Explain the reasons behind the proposed change and the potential benefits it could bring. For example, if you’re discussing a move to a senior living community, you might highlight the social opportunities, amenities, and support services available that could enhance their quality of life.

“If they’re concerned about losing independence, you could discuss how the new arrangement will still allow them to make decisions and maintain control over their life.”

Address Specific Concerns: Listen attentively to the senior’s concerns and address them one by one. Offer reassurance and practical solutions to alleviate any worries they may have. For instance, if they’re concerned about losing independence, you could discuss how the new arrangement will still allow them to make decisions and maintain control over their life.

Focus on Needs and Preferences: Emphasize how the proposed change aligns with the senior’s needs, preferences, and goals. Help them see how it could better meet their current and future needs, whether it’s improved safety, access to healthcare, or opportunities for socialization.

Involve Them in Decision Making: Involve the senior in the decision-making process and respect their autonomy. Encourage them to share their thoughts, preferences, and concerns, and consider their input when making plans for change. This can help them feel more empowered and in control of the situation.

Provide Support: Offer practical support and assistance throughout the transition process. This could include helping with logistics such as packing, moving, and settling into a new environment, as well as emotional support to help them adjust to the changes.

Highlight Past Successes: Remind the senior of times when they successfully navigated change in the past. Reflecting on past experiences of resilience and adaptability can help boost their confidence and willingness to embrace new challenges.

Offer Time and Patience: Give the senior time to process the information and adjust to the idea of change. Be patient and supportive, and avoid pressuring them to make decisions before they’re ready. Let them know that you’re there to support them every step of the way.

Stay Positive and Encouraging: Maintain a positive and encouraging attitude throughout the conversation. Focus on the potential opportunities and improvements that the change could bring, and express confidence in the senior’s ability to adapt and thrive in the new situation.

Follow Up and Check In: After the change has been implemented, continue to check in regularly with the senior to see how they’re adjusting and address any ongoing concerns or challenges. Offer ongoing support and encouragement as needed to help them navigate the transition successfully.

Conclusion

By approaching the conversation with empathy, understanding, and support, you can help your loved one feel more comfortable and confident about embracing change and navigating new opportunities in their life.

While we may be biased, we genuinely believe that embracing change during your loved ones’ golden years can be positive. As a family member, you’ll find comfort in knowing they’re receiving excellent care and enjoying a fulfilling experience.

Trends in Marketing and Communications Reveal a Shifting Landscape

By Contributor April 25, 2024

Sales and Marketing Special Coverage

Getting the Message Across

Marketing and communications in 2024 are evolving further, with no signs of slowing down. The year ahead promises groundbreaking shifts, from artificial intelligence revolutionizing marketing and user engagement to big brands capitalizing on social media’s bite-sized content for enhanced product exposure. Add to this the rise of immersive digital experiences, and you have a transformative landscape. Here’s what the experts at the integrated marketing agency 9Rooftops have to say:

Creative Shifts: Renewed Nostalgia and Inspiration

By Scott Seymour

Adaptable Personalization: With advancements in customization and AI workflows, new opportunities arise to resonate in ways we never thought possible. People will have the freedom to consume content tailored specifically for them. The ability to create adaptable creative to match someone’s current mood or their desired need state is worth exploring. Then, having the design expressed in a way that is completely in sync with their personal aesthetic preferences will be incredibly valuable.

Minimalism and Decluttering: Now more than ever, with massive amounts of information coming at us at any given moment, a movement toward simplification is welcomed. Reducing clutter throughout all aspects of our lives, including incoming communications, allows people to truly focus on what matters most without unnecessary distractions. Carefully curated content and purposeful design choices will genuinely deliver on the principle that less is more.

“With advancements in customization and AI workflows, new opportunities arise to resonate in ways we never thought possible.”

Fantastical Inspiration: Sparked by AI image generation and fueled by possibility, we anticipate an acceleration of surreal, fantastical styles that provoke a sense of wonder and escapism. A hyper-real utopian aesthetic blurs the lines between reality and imagination. With this extraordinary style of captivating imagery, surreal illumination, and dreamlike color palettes, they will continue to delight and defy reality.

Rise of Kindness: Acts of kindness uplift people when they need it most. Brands that tap into this concept will deepen connections with their consumers in new ways. This will promote empathy, fostering a sense of gratitude that can be contagious.

Nostalgia Reimagined: Fueled by a need for authenticity, optimism, and a desire for what’s next, a foundation of shared nostalgic cultural connections, themes, and designs will create stronger social bonds. Blending this charm with a modern twist will keep things fresh and interesting.

Social Media Shifts: Connecting Through Social-first Tactics

By Julia Repisky

TikTok: It’s no surprise that this social-media platform will continue to reign; in fact, TikTok is anticipated to increase its user base to 900 million, an 8% increase, so being active is more paramount than ever in 2024, especially as the audience continues to diversify beyond just kids.

Bite-sized Content: Short, easily digestible content led TikTok and Instagram reels to their huge success, especially as attention spans continue to shrink. People want content they can consume in seconds, and your brand should be able to deliver that in an authentic way.

SEO on Social: Gen Z and Millennials rely on social for more than entertainment. About 40% of young adults between 18 and 24 use social media like a search engine, meaning you’ll need to go beyond just hashtags to hit the right keywords to make your social presence known.

Hybrid, AI Content: The AI buzz won’t calm down anytime soon and will become an integral part of social-media content creation, whether to help with inspiration, optimize content, or create something completely new. Don’t be afraid to play around with what AI can help you do.

Raw, Authentic Content: Social media isn’t the place for polished product placement anymore. Users don’t want perfection, but a feed full of relatable, highly (or even completely) unedited content that feels natural. In 2024, aim for less overanalyzing and creating more content in the moment.

Customer Relationship Management: Emerging Patterns and Insights

By Jenny Brenner

Decisioning and Personalization Relevancy: This has always been a key driver in connecting effectively with prospects and customers, and with new AI tools aiming to decrease technical barriers, automate, and ease integration, anticipate an even higher baseline for personalized product offerings, content, and communications in the marketplace. Revisit your personalization capabilities to ensure you’re scoring and maximizing output across transactional, behavioral, and situational data.

Zero-Party Data Campaigns: They’re not going anywhere, gaining popularity in 2023 as an initial outcome of cookie-deprecation announcements. Expect brands to continue to take advantage of these for turnkey data collection and application, which are well-suited for on-the-fly personalization, situational and environmental touchpoints, and driving conversion-rate optimization results.

Interactivity: In an increasingly digital environment, it’s even more challenging for brands to break through the clutter in inboxes and experiences. Increasing the interactivity of your digital touchpoints, from email to MMS/SMS, can help significantly boost engagement and results. Make interactive features and formats, like GIFs, quizzes, and countdown clocks a regular part of your digital brand experience to engage customers and deliver offers and content in a unique and memorable way.

Experiential Rewards: Engaging loyalty-program members requires a blend of transactional and emotional benefits. While transactional benefits — discounts, offers, points — can drive direct replenishment and purchase retention, incorporating experiences, whether gamified or as exclusive rewards, can drive brand differentiation, preference, and loyalty. Pilot a gamified or exclusive experiential element in your loyalty program to spark member interest and engagement.

“In an increasingly digital environment, it’s even more challenging for brands to break through the clutter in inboxes and experiences.”

Prioritizing Customer Key Performance Indicators (KPIs): Increases in consumer privacy policy will continue into 2024, and as key platforms and providers decrease the amount of data shared back to marketers, brands need to find alternative measurement solutions across digital ecosystems. Prioritize defining, regularly calculating, and placing weight on customer-centric metrics alongside campaign KPIs in 2024 to provide a bigger picture of your campaign’s impact on ultimate goals: changing key behaviors and growing customer lifetime value.

Experience Marketing: Transformational Engagement

By Kate Bradbury

Immersive Digital Experiences: The introduction of the Sphere in Las Vegas has sparked a ton of excitement around the power of immersive artistic experiences where visual, sound, and physical form all come together in awe-inspiring ways. Advances in technology have made production more flexible and affordable for smaller-scale events. Moreover, discussing experiential marketing ROI through data science remains a way forward to measure results for a diversity of experience marketing strategies.

Scalable and Reusable: Efficient execution and long-term thinking around event assets will be critical as larger economic trends put pressure on marketing budgets. Creating event platforms that can scale up and down and reusable assets can help stretch marketing dollars. Plus, reusable assets help make events more sustainable.

Tech-powered Personalization and Customization: AI has seen a rapid technological increase and adoption rates. We think AI will enhance targeting and customization exponentially, allowing marketers to build dynamic experiences precisely tailored to their consumers from beginning to end. AI will also allow for consumer-driven, personalized experiences.

Exclusivity: FOMO (fear of missing out) is real, and post-COVID consumers are again placing an emphasis on gathering once-in-a-lifetime-style memories and experiences. Highly curated events with a level of exclusivity are a perfect fit for the right brand and can be magnified via an influencer approach.

“Online shopping is more convenient than ever, so if people are going to spend time going to a store, they want something special.”

Experiential Retail and Pop-ups: Online shopping is more convenient than ever, so if people are going to spend time going to a store, they want something special. Creating unique experiences with the full transformation of spaces or launching memorable pop-up shops are ways for brands to stand out. These dynamic and bespoke experiences help drive social sharing, additional brand impressions, and customer loyalty.

Digital Experience: Advancements in Personalization and AI

By Patti Mulligan

Hyper-personalization: As the practice of being treated as a unique individual increases loyalty, the demand for personalized experiences will continue to grow. AI will be increasingly reliant on analyzing customer data to facilitate these experiences. In fact, AI will offer real-time personalization of user experiences, which may result in immediate data analysis. An AI algorithm will immediately analyze a user’s actions on platforms, including clicks, navigation, and internal search queries, and adjust the website page’s products.

Sustainability: Developers will focus on improving performance of digital solutions, requiring less from servers and networks. There is a general concern across the spectrum of designers, developers, users, and customers who are committed to social responsibility and the environmental impacts of their experiences and products.

AI Integration: This is an obvious trend that is only gaining traction from development tools for more efficient coding to image generation and behavior insights. In fact, by 2030, the global revenue forecast for AI is projected to reach a mind-numbing $1.3 billion. Every big brand is traversing the AI landscape, including Google’s generative AI search experience. In theory, this will result in more data-driven designs that revolve around user insights.

Immersive Experiences: AR and VR will grow in usage and popularity and will be used increasingly to enable product interactions that are key to encouraging customer loyalty. Future evolutions will allow for virtual stores, enhanced product visualizations and experiences, and interactive product demonstrations. AR already enables virtual try-ons, which allows users to see how products look on them with their smartphones, helping encourage more confidence in the purchase process. Moreover, AR personalization allows you to see if that sofa looks right in your living room, or if that hat you found online will match your sport coat. Expect all these examples to evolve and expand into more consumer use cases.

Accessibility: A timeless requirement rather than a trend, accessibility should never fall out of the limelight. With one in four Americans having a disability, it is imperative for all users to be able to access websites. By implementing ADA guidelines, the benefits to companies are great as accessibility fosters inclusivity and quality, expands audiences, builds brand image and reputation, and prevents costly litigation.

The Creator Economy: New Influences

By Pamela Pacheco

Brand and Influencer Collaborations: Influencer marketing has become an integral part of brand promotion. In a 2023 Influencer Marketing Hub survey, an overwhelming 83% of respondents said they believe influencer marketing continues to be effective. Now, brands are taking it a step further by collaborating with influencers to create new products. This approach enables brands to leverage the influencer’s creativity and knowledge of their audience, resulting in more authentic products for their target audience. It also generates greater engagement and loyalty among consumers. This mutually beneficial collaboration between brands and influencers has proven to be effective in enhancing the overall success of marketing campaigns and will continue to evolve during 2024.

Social Commerce: In 2024, the alliance between influencer marketing and social commerce is set to rewrite the rules of online shopping. As the annual average social commerce sales per buyer is projected to grow 21.3% (according to an eMarketer report) this year and social media platforms like TikTok, Instagram, and YouTube continue to incorporate shopping features, influencers will act as the center, providing first-hand product reviews, live demonstrations, and real-time purchasing guidance to their audiences. This trend will enhance the shopping experience and offer brands a dynamic way to reach and convert consumers directly within their favorite social platforms.

“In a fun twist, employees are stepping into the spotlight as new influencers, leveraging their connection to the brand’s values and culture to cultivate deeper trust and engagement with consumers.”

Brand Employees Become Influencers: As this industry continues to evolve, brands are recognizing the potential within their staff. In a fun twist, employees are stepping into the spotlight as new influencers, leveraging their connection to the brand’s values and culture to cultivate deeper trust and engagement with consumers. Employees turned influencers will be encouraged to share their experiences, opinions, and knowledge about the brand to create authentic content that fosters deeper connections with consumers. So how are brands selecting these employees? They look for employees who are active on social media, have a considerable following, and possess strong communication skills. Now, anyone from the CEO to a sales associate can become a brand ambassador.

Macro- and Micro-Influencers Combine: The combination of macro- and micro-influencers will become a popular strategy for brands looking to diversify their audience reach and engagement in the world of influencer marketing. Macro-influencers typically have a larger following and higher social-media reach, while micro-influencers are more relatable and have a more niche following, which can result in higher engagement rates. By combining both types of influencers, brands can create a marketing campaign that appeals to a wide range of consumers and generates a higher level of engagement and loyalty.

Community-centric Influence: Influencers will shift their focus from chasing follower counts to nurturing social communities. This trend emphasizes meaningful engagements, discussions, and immersive experiences within niche communities, reshaping the influencer landscape.

Scott Seymour is executive vice president and chief creative officer, Julia Repisky is senior content and social media strategist, Jenny Brenner is group director of digital strategy and CRM solutions, Kate Bradbury is managing director, Patti Mulligan is vice president and director of digital experience, and Pamela Pacheco is senior social media strategist at 9Rooftops.

Settling an Estate Can Be Unsettling

By Contributor April 12, 2024

Wealth Management

Why the Assignment Is Best Left to a Professional

By Linda Dagilus, Steve Hamlin, and Janice Ward

Linda Dagilus

Steve Hamlin

Janice Ward

Years ago, they might have been known as an executor or, in the case of a woman, an executrix. And you still hear those terms occasionally.

But today, the phrase commonly used in reference to an individual handling someone else’s estate is ‘personal representative.’ And while the title may have changed, the responsibilities haven’t. They are significant, and there may actually be more of them today — a list that includes everything from the administration of a will to the handling of funeral arrangements; from preparing a final accounting and tax return to selling an estate; from investigating all claims against an estate and handling them accordingly to, yes, finding a home, or homes, for the pets of the deceased.

This broad and imposing range of responsibilities explains why those with estates, and especially large estates or those with complex assets, should think carefully about whom they choose to be their personal representative to administer their estate after they pass.

While family members have historically handled these duties, increasingly individuals are leaving these matters to third-party professionals, specifically trust officers — and for very good reasons. The most basic is the often-uncomfortable reality that settling an estate can be an unsettling experience, one that can potentially damage and destroy personal family relationships and result in mistakes that a professional might otherwise avoid.

But there are many reasons why individuals are increasingly looking to professionals to be personal representatives. First, they may not have family to turn to, or family they would consider qualified. Indeed, this is a considerable amount of work, some of it complex in nature, to put on someone who is not an expert in this area and has never done it before.

“Those with estates, and especially large estates or those with complex assets, should think carefully about whom they choose to be their personal representative to administer their estate after they pass.”

Also, many people simply don’t want to saddle a loved one with all that responsibility, especially at what will likely be a difficult time for them emotionally and when they are also likely juggling many other aspects of life and work. Additionally, choosing one family member over another to be your personal representative can often lead to conflict with the family member(s) not chosen.

Many of those turning to professionals, such as the Estate Settlement team within Greenfield Savings Bank Wealth Management and Trust Services, are recently divorced or surviving spouses who have found themselves suddenly in charge of their household’s financial savings and investments that had previously been handled primarily by their spouse.

The full list of responsibilities handled by a personal representative helps explain why it is best left to a professional and not a family member. It starts with pets, especially when there is no one else living with the recently deceased individual, but also includes everything from getting mail stopped and forwarded to a new address to securing the property to changing the locks and shutting off the water.

But it quickly proceeds to other, more complex financial matters that include:

• Entering the will into probate and assuring that all legal requirements of the settlement process are completed;

• Accounting for all personal property and arranging for the support of the family;

• Collecting all life insurance, rents, and other amounts due;

• Obtaining appraisals of the property for required tax purposes;

• Preparing a final accounting of the estate; and

• Distributing the estate as directed by the will.

While choosing a family member may seem logical and respectful, and some family members may actually volunteer for this work, most individuals are not fully qualified to handle such duties, and even if they are, they would often be placed in a difficult situation where relationships can become strained and matters can be delayed.

There is often a perception of unfairness if one family member is making all the decisions that affect the personal finances and tax consequences of each beneficiary. For example, is this individual liquidating all the assets — which might cause significant capital gains to family members who pay high tax rates — and are those decisions equally fair and appropriate for all affected parties?

It is a fact: estate administration is complicated and time-consuming. Money can, and often does, complicate relationships. Money can make people do things they wouldn’t ordinarily do. Money can breed distrust — and worse.

And that’s why the work of a personal representative is best left to a professional.

Linda M. Dagilus, vice president and trust officer, has more than 25 years of experience in the financial-services industry. Stephen B. Hamlin, CTFA, senior vice president and senior trust officer, is a certified trust and fiduciary advisor with more than 35 years of experience in trust banking and investment management. Janice E. Ward, Esq., CFP, first vice president and trust officer, is an attorney and certified financial planner with more than 20 years of experience in trust banking and wealth management.

How Financial Planning Has Changed with the Secure Acts

By Contributor April 12, 2024

Wealth Management

Securing the Future

By Patricia M. Matty, AIF

With the Secure Act 1.0 of 2019 and the updated Secure Act 2.0, which went into effect in 2023, there have been many important changes to the rules and regulations for retirement saving and investing over the past five years.

While the elimination of the ‘stretch IRA’ was a key feature of the first Secure Act, the update provides many enhancements for investors. (The so-called stretch IRA refers to leaving an IRA to a non-spouse beneficiary who could then ‘stretch’ distributions from the IRA over their lifetime, thus enhancing the tax-deferral feature of the IRA.)

As financial planners, one of our goals is to help clients save as much as possible for retirement in the most tax-efficient manner. This usually involves maxing out retirement-plan contributions (workplace plans like the 401(k) and 403(b), as well as IRAs), as well as deferring the income associated with retirement-plan withdrawals as long as possible.

“As planners, these changes often prompt investigating alternative ways to pass on wealth earlier to heirs, including layering in additional diversification with investments spread between retirement accounts, Roth IRA/401(k) plans, and non-retirement assets.”

Some key changes associated with these goals are summarized as follows:

• Starting in 2025, the workplace ‘catch-up’ contribution for individuals ages 60-63 will increase to $10,000 per year (from $7,500). The IRA catch-up contribution, which is now set at $1,000, will be indexed to inflation starting in 2024. For high-income earners, 2026 will see a change that restricts catch-up contributions in workplace plans to a Roth account in after-tax dollars.

• RMDs (required minimum distributions) from retirement accounts start at age 73, thanks to the Secure Act 2.0. Starting in 2033, this will increase to age 75. For retirees that have sufficient income and assets in non-retirement accounts, delaying RMDs as long as possible is generally preferred.

• The penalty for not taking your RMD decreased to 25% from 50% (of the RMD amount). This penalty will decrease to 10% if the IRA owner withdraws the RMD and files a corrected tax return in a timely manner. While these penalties are quite rare in our experience, the previous 50% rate was severe and too punitive.

Younger workers and their priorities also received some beneficial changes to the rules and regulations:

• Starting in 2025, businesses adopting new 401(k) and 403(b) plans must automatically enroll eligible employees at a contribution rate of at least 3%. We’ve found that inertia is the enemy when it comes to saving for retirement. Getting younger workers started on the habit of saving and investing is critical to reaping the benefits of tax-deferred growth over the long term.

• Student-loan debt and payments are often cited as a reason for not contributing to a workplace retirement plan. Starting in 2024, employers will be able to match employee student-loan payments with matching payments to a retirement account.

• For 529 college savings plans that have been open for at least 15 years, ‘unspent’ plan assets can be rolled over into a Roth IRA for the beneficiary (subject to a lifetime limit of $35,000).

These selected highlights represent a small sample of the changes brought about by Secure Act 2.0. On balance, we believe the changes provide enhancements to the ability of investors and savers to provide for a prosperous retirement.

As planners, these changes often prompt investigating alternative ways to pass on wealth earlier to heirs, including layering in additional diversification with investments spread between retirement accounts, Roth IRA/401(k) plans, and non-retirement assets.

Eliminating the stretch IRA is inducing non-spouse beneficiaries to take mandatory distributions out over a five- or 10-year period versus over their lifetimes. This can significantly increase the beneficiary’s tax bracket, which may not have been the intention of the financial/estate plan.

Here are just a few options your financial planner can help you look at to navigate these changes:

• Depending upon your own personal tax bracket, you may want to take larger IRA distributions and gift funds to your children before you pass.

• Convert pre-tax retirement assets to Roth IRAs.

• Diversify your savings between qualified and non-qualified accounts.

• If you give to charities, you can donate directly from your retirement accounts once you hit age 70. These gifts and distributions are tax-free to you and have zero tax implications on your income

• Take larger retirement-plan distributions (speak with your accountant and your financial advisor first to ensure this may be a good option, as taking larger distributions may also impact your Medicare premiums), and make annual gifts to your children while you are alive. If you are married, you have a higher AGI than if you are single in later years.

As is always the case, consult your financial professional or tax preparer to see how the changes in the Secure Act 2.0 affect your individual circumstances. This information is provided for informational purposes only and should not be construed as advice. St. Germain Investment Management does not offer any tax or legal advice.

Patricia M. Matty is senior vice president, financial advisor, and financial advisory director for St. Germain Investment Management.

What a Top-heavy Market May Indicate About Future Returns

By Contributor April 12, 2024

Wealth Management

Stay the Course

By Jeff Liguori

One trillion dollars. That number of zeroes, 12 in all, is difficult to comprehend.

But in the world of investing, ‘trillion’ is becoming more common. Market capitalization, computed by multiplying the number of shares outstanding by the current price of that company’s stock, is a standard measure of valuation for a public company. There are currently seven stocks with a valuation that exceeds $900 billion: Microsoft, Apple, NVIDIA, Amazon, Meta (formerly Facebook), Alphabet (formerly Google), and Berkshire Hathaway, in order of size.

The valuation of those seven companies is currently $15.9 trillion in aggregate. At the start of 2020, the valuation of the same seven companies combined was roughly $5.6 trillion, and only two companies — Apple and Microsoft — had exceeded $1 trillion in market capitalization.

We will refer to these seven companies as the ‘Super Seven.’

Jeff Liguori

“Comparing the output of a country to that of a technology company is a fun exercise, and not at all realistic, but it does illustrate the magnitude of these trillion-dollar behemoths.”

In a little more than four years, despite a global pandemic which took the S&P 500 down by nearly 30% in a month, the market cap of the Super Seven has increased by almost 300%, while the S&P 500 has returned almost 74%.

For perspective, the gross domestic product (GDP) of the U.S. is approximately $28 trillion, up from $22 trillion at the end of 2019, an increase of 27%. The U.S. workforce is about 134 million people, which means each worker contributes, on average, $209,000 to annual GDP. In contrast, the Super Seven have a total of 3.06 million employees (Amazon is more than half of that total) and should generate about $2.5 trillion in revenue this year, which equates to $827,000 of output per employee. Employees of the Super Seven contribute 300% more than the average employee in the U.S. contributes to our GDP.

If Microsoft was a country, it would be the sixth-largest in the world, slightly smaller than the GDP of India but larger than that of the United Kingdom. Apple would be the eighth-largest, in between the economies of France and Russia. If the two companies merged to form the country of Microapple, it would be the third-largest economy at nearly $6 trillion dollars, with fewer than 400,000 residents.

OK, maybe these are not fair comparisons.

Other than Berkshire Hathaway, the seven companies are technology-focused, which by their nature require fewer workers because the businesses are highly efficient. The U.S. economy is dominated by service jobs, and approximately 80 million of the 134 million employed are paid hourly. Comparing the output of a country to that of a technology company is a fun exercise, and not at all realistic, but it does illustrate the magnitude of these trillion-dollar behemoths.

What can this top-heavy market indicate about future returns? Jason Goepfert of Sundial Capital Research, which uses huge data sets to help frame market direction, looked at the performance of equally weighting the 500 stocks in the index versus the actual performance of the S&P 500, where it is weighted by size, thus dominated by the Super Seven.

In the past three years, the equally weighted index is up 25% versus 36% for the S&P 500. The gap widens further, a 75% versus 98% return, respectively, in the past five years. It is the second-widest spread since 1958. When was the gap higher? In late 1999, as the dot-com bubble was nearing a climax. Some market analysts are concerned that the artificial-intelligence boom, which has fueled growth in these large technology companies, is the new dot-com bubble.

Despite the average stock underperforming the S&P 500 for the past few years, there may be reason for optimism. My firm, Napatree Capital, put out commentary (click here) in October of last year highlighting shares of Target (TGT) as an example of a stock that could play “catch-up” and help fuel the rally. We noted that “shares of Target (TGT) are trading 25%-30% below its historic average valuation, and more than 50% below its peak valuation. The stock is down 27% year to date, after losing 34% of its value in 2022. If such stocks start to rally, it should be healthy for the broader market.”

Since Nov. 1 of last year, the price of Target’s stock has rallied nearly 65%. And it is a similar story for other bellwether stocks such as Citigroup (C), Delta Airlines (DAL), Home Depot (HD), Bank of America (BAC), Disney (DIS), and others, which had dismal performance leading into the third quarter of last year but have since beaten the S&P 500 by a wide margin.

If you’re frustrated by the returns in your portfolio, it implies that you don’t own large positions in a small number of stocks, mostly in the same sector. But stay the course. Prudent investing is built on broad diversification across a range of categories. Owning the underperformers may yield excellent results just yet. Following the tech bubble in 1999, those forgotten, boring, blue-chip-type stocks outperformed their tech brethren for nearly a decade.

Maybe past performance is an indication of future results.

Jeff Liguori is the co-founder and chief Investment officer of Napatree Capital, an investment boutique with offices in Longmeadow as well as Providence and Westerly, R.I.; (401) 437-4730.

Retiring Early May Come With Challenges

By Contributor April 11, 2024

Special Coverage Wealth Management

Living the Dream

By Barbara Trombley, CPA

Do you dream of retiring early? Do you picture yourself in sunny Florida at your vacation home during the winter and heading back to temperate New England for the summer? Playing golf, lying on the beach, enjoying grandchildren, and not adhering to a corporate work schedule — this is the dream of many, but is it a financial possibility? What are the pitfalls of an early retirement, and what can you do now to achieve your dream?

At the heart of the dream is financial independence. This means not relying on employment to fund your current lifestyle. Retiring in your 50s or at age 60 means that you cannot draw Social Security, and you need to figure out a healthcare plan. Many people today do not have access to pensions like the generation before us. So that means investing early and wisely is paramount to building the wealth needed to achieve your retirement dreams. Also, if you retire before age 59½, you need an investment account outside of your retirement plan to avoid a 10% penalty on withdrawals.

The most logical place to look for investments is your work retirement plan. Are you fully funding each year? At age 50, an employee can contribute $30,500 in 2024. That includes the catch-up contribution of $7,500. This may be the easiest place to invest as your funds are automatically withdrawn from your paycheck.

After your retirement plan, you can and should have a brokerage account or investment account with a financial advisor. These accounts come with many names, like individual, joint, non-qualified, etc., and send you a 1099 each year for your taxes. Many people are not aware of how easy it is to invest outside of your work plan. Investing in a well-managed portfolio, over time, will greatly increase your wealth.

“Many people today do not have access to pensions like the generation before us. So that means investing early and wisely is paramount to building the wealth needed to achieve your retirement dreams.”

Having a plan to withdraw from your portfolio is integral to a successful early retirement. Life expectancy is increasing, and inflation and market volatility may always impact your financial life. The old myth of withdrawing 4% of your portfolio and having it last for your lifetime may not work if you begin the withdrawals in your 50s.

Using a conservative rate of withdrawal and adjusting it for market volatility would be prudent. This means that a large nest egg may be needed to achieve your dream. Also, you may consider a type of insurance product called an annuity. At its core, an annuity provides a series of payments for a premium that you pay. There are many different types of annuities, so do your homework and understand the risks. Annuities can be valuable for providing a lifetime income stream that you may need to fund retirement.

When to start Social Security may be one of the most important decisions that a retiree can make. Yes, it adds a stream of income that will take the stress off retirement withdrawals, but taking it too early can be detrimental to a financially sound retirement. Social Security benefits are available at age 62, but they are reduced by approximately 32% of the full retirement-age benefit amount. Conversely, every year that a retiree waits after age 67, retirement benefits are increased 8% per year. Social Security planning should be approached with great care.

Perhaps the biggest challenge to an early retirement is finding a healthcare plan. Medicare does not begin until age 65. What do you do before then? Many early retirees go to the Health Insurance Marketplace, also known as the Affordable Care Act (ACA) marketplace. You can compare plans and see if you qualify for subsidies based on your income. Your income is what is shown on your tax return, so having an investment account outside of your work retirement plan can be advantageous when withdrawing living expenses in early retirement.

Other options could be COBRA from your last employer, or perhaps your spouse still works and has access to a policy. A last, and expensive, option would be to pay for private insurance. Many of my clients find the cost of private insurance to be prohibitive, and that is the reason many wait until age 65 to retire.

Tax planning can also play an important role in an early retirement. Investments can have many different tax structures. Traditional 401(k) plans, SIMPLE plans, and IRAs are all fully taxable when withdrawn after age 59½. Roth 401(k)s and Roth IRAs are not taxed upon withdrawal. Non-qualified investment accounts or brokerage accounts have a variety of tax implications, including dividends, interest, and capital gains. Structuring the withdrawals from your different accounts can play a very large role in planning for retirement and may save a lot of money if done properly.

Lastly, the word ‘retirement’ means many things to many people. For some people, it means not working at all, which requires a plan for fully funding your living expenses. For others, it means leaving your full-time, stressful career and taking on a part-time ‘fun’ job or a different career altogether, which would help pay the bills until Social Security full retirement age. Working with an experienced financial planner and not making this decision to retire early on your own is always recommended.

Barbara Trombley is a financial planner with Wilbraham-based Trombley Associates. Securities offered through LPL Financial. Member FINRA/SIPC. Advisory services offered through Trombley Associates, a registered investment advisor and separate entity from LPL Financial. Asset allocation does not ensure a profit or protect against a loss. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

Don’t Devalue Professional Credentials

By Contributor April 10, 2024

Healthcare News Special Coverage

By Pam Shlemon

In an instance of good intentions gone awry, an effort to hire people because of the skills they possess rather than their college degrees has turned into a concern that certified rehabilitation counselors may not be able to divulge their credentials to clients. That’s not helpful to anyone, especially the clients they serve: people with disabilities.

In January, Massachusetts Gov. Maura Healey signed an executive order requiring the state government to use skill-based hiring practices. That means the state would not ask its job applicants whether they held a college degree, or other advanced certifications, unless it was absolutely necessary for the job, potentially enabling people with relevant experience but not a degree to be hired.

As the leader of a national organization that advocates for people with disabilities, I see the value of skills-based hiring, which would open doors for qualified, motivated workers who may lack a particular degree.

The problem came soon after, with how the Massachusetts Rehabilitation Commission interpreted that order. Commissioner Toni Wolf suggested limitations on how the state’s certified rehabilitation counselors, or CRCs, use and disclose their certification to their clients.

That is a problem. Reducing the emphasis on credentials while hiring is one thing, but trying to erase their importance while performing the job is misguided. CRCs get their credentials from the organization I lead, the Commission on Rehabilitation Counselor Certification. The certification is the national gold standard in the field of rehabilitation counseling for people with disabilities, and it leads to proven better outcomes. Indeed, the Massachusetts Division of Professional Licensure asks for proof of the certification to become a licensed rehabilitation counselor.

Certification for CRCs serves as a quality guarantee, an assurance for a person with a disability that their counselor has the skills, knowledge, and ethical standards to help clients live as fully and independently as possible. A CRC is required by their certification to focus on what the client can and wants to do in their life, and is trained to work toward those goals. The nationally accredited certification is the result of rigorous training, comes with a 50-page code of ethics, and is not lightly granted.

In this field, as in many professions, credentials are important. You trust a certified public accountant, not a bookkeeper, with accounting skills. You bare your soul to a licensed mental-health professional, not someone familiar with some aspects of mental health. When you need surgery, you rely on board-certified surgeons and anesthesiologists, not someone knowledgeable in human anatomy but unlicensed to practice. This is true as well with rehabilitation counseling.

Favoring just skills at the expense of credentials is risky in the field of rehabilitation counseling. The training, the degree, and, most importantly, the certification verify that they know what they are doing. A person hiring a rehabilitation counselor would want to be sure they could do the work, avoid unintentional harm, give accurate information, and not take shortcuts, like referring clients to mediocre employment opportunities misaligned to their skillset or failing to account for their functional limitations. The certification held by a CRC provides that assurance.

A CRC, for example, is committed to helping a person with disabilities find and keep a high-quality job that suits them and bolsters their independence, not just any job. We work with a vulnerable population. The certification is acknowledgement of that and serves as a promise that CRCs never forget their obligations to this population.

Being barred from divulging their credentials hurts the CRCs, too. It’s demoralizing and frustrating to be unable to speak about their qualifications. It’s an erasure of their professional identities.

I have no quarrel with Gov. Healey’s move toward skills-based hiring, which is beneficial to many people in many fields. We at CRCC favor legislation that increases access to certification, including the Tomorrow’s Workforce Coalition, which advocates for workforce-development policies that open up funding for certifications, including the CRC.

Commissioner Wolf’s track record is long and admirable. This is certainly a case of a move made with good intentions and unintended consequences. I hope the commissioner sees that and steps back from this move.

Pam Shlemon is executive director of the Commission on Rehabilitation Counselor Certification (CRCC), the national organization that sets the national standard for certification and advocates both for the profession and individuals with disabilities.

Used-car Values Decline, Leaving Some in a Tricky Spot

By Contributor March 29, 2024

Autos

Change of Direction

A growing number of consumers across the U.S. are finding themselves upside down on their car loans as the used-vehicle market continues to stabilize and used values dwindle, according to the latest Edmunds Used Vehicle Report. Among the findings:

• Used-car values continue on a downward trend. The average transaction price (ATP) for all used vehicles in the fourth quarter of 2023 dipped to $28,371, a 4.4% decrease from $29,690 in Q4 2022.

• Trade-ins with negative equity are on the rise, as 20.4% of new vehicle sales with a trade-in had negative equity in Q4 2023 — the highest in two years — compared to 17.7% in Q4 2022 and 14.9% in Q4 2021.

• Consumers who are upside down on their auto loans owe more than ever before. The average amount owed on upside-down loans climbed to a record high of $6,064 in Q4 2023, compared to $5,347 in Q4 2022 and $4,143 in Q4 2021.

“A storm is brewing in the used market as incentives and inventory continue to trickle back into the new-vehicle market,” said Ivan Drury, Edmunds’ director of insights. “With demand for near-new vehicles on the decline, used-car values are depreciating similarly to the way they did before the pandemic, and negative equity is rearing its ugly head.”

Edmunds analysts note that consumers who paid above MSRP for a new vehicle during the pandemic are the most vulnerable to falling underwater on their car loans because their newer tradeins are the most susceptible to dramatic decreases in value.

According to Edmunds data, one- and two-year-old vehicles are experiencing the most significant drops in value compared to older used vehicles. Compared to Q3 2022 (when used vehicle values were at their peak), Edmunds data reveals:

• The ATP for one-year-old vehicles in Q4 2023 dropped to $38,720, a $6,763 decrease;

• The ATP for two-year-old vehicles dropped to $32,583, a $3,294 decrease; and

• The ATP for 10-year-old vehicles dropped to $12,447, a $1,304 decrease.

“During the last few years, consumers could jump into new-car loans, and their tradeins were shielded from negative equity because some dealers, desperate for used inventory, were willing to pay near original purchase prices,” Drury said. “These days, consumers need to be more careful — especially if they’re trading in newer vehicles — because near-new cars are being hit the hardest by depreciation.”

Although a downturn in used values is negatively affecting a growing share of new-car owners, Edmunds analysts note that there’s a bright spot for car shoppers with bigger budgets. In an analysis of ATPs of used vehicles up to three years old compared to ATPs for new vehicles, large luxury cars offered an average discount of $48,111 — the greatest dollar savings across all vehicle segments — with new vehicles going for $118,309 compared to $70,198 for used. Large mainstream SUVs also offered a notable average discount of $19,966, with new vehicles going for $76,131 compared to $56,164 for used.

“If you want to save big on used versus new, you still have to be willing to spend big,” said Joseph Yoon, Edmunds’ consumer-insights analyst. “Unfortunately, the most price-sensitive consumers seeking affordable transportation will have a much harder time finding discounts because the supply of older used vehicles is still pretty restricted.”

Looking forward, Edmunds analysts caution that a number of factors influencing used-vehicle prices will make trade-in values increasingly difficult to predict heading into 2024.

“As near-new vehicles sit on dealer lots for longer periods of time and automaker incentive programs continue to change dramatically month to month, dealers will likely be hedging their bets against value reductions as they manage their inventory,” Drury said.

Toward the end of 2023, Edmunds experts issued a number of predictions for the vehicle-sales industry, with 15.7 million new cars to be sold in 2024, a 1% increase from the estimate of 15.5 million new vehicle sales in 2023. Electric-vehicle (EV) market share is expected to tick slightly higher to 8% of total new vehicle sales in 2024, up from 6.9% in 2023.

Still, hybrids remains the more comfortable choice for the majority of Americans seeking electrified options right now. According to Edmunds data, hybrid market share increased to 9.7% in November 2023 from 4.9% the year prior.

New Treatment for Dangerous Food Allergies Elicits Hope

By Contributor March 29, 2024

Healthcare News

Breathing a Little Easier

About 3.4 million children and 13.6 million adults in the U.S. have been diagnosed with what’s known as immunoglobulin E-mediated (or IgE-mediated) food allergy, causing reactions ranging from mild to moderate (including hives and swelling) to severe and life-threatening, such as anaphylaxis.

More than 40% of children and more than half of adults with food allergies have experienced a severe reaction at least once, and it is estimated that food-related anaphylaxis results in 30,000 medical events treated in emergency rooms in the U.S. each year.

That’s why so many are encouraged by the U.S. Food and Drug Administration’s (FDA) approval of Xolair (omalizumab) injection for immunoglobulin E-mediated food allergy in certain adults and children 1 year or older for the reduction of allergic reactions that may occur with accidental exposure to one or more foods.

Xolair was originally approved in 2003 for the treatment of moderate to severe persistent allergic asthma in certain patients.

“This newly approved use for Xolair will provide a treatment option to reduce the risk of harmful allergic reactions among certain patients with IgE-mediated food allergies,” said Dr. Kelly Stone, associate director of the Division of Pulmonology, Allergy, and Critical Care in the FDA’s Center for Drug Evaluation and Research. “While it will not eliminate food allergies or allow patients to consume food allergens freely, its repeated use will help reduce the health impact if accidental exposure occurs.”

According to the Centers for Disease Control and Prevention, almost 6% of people in the U.S. in 2021 had a food allergy, and exposure to the particular food (or foods) to which they are allergic can lead to potentially life-threatening allergic reactions, such as anaphylaxis.

There is currently no cure for food allergy. Current treatment requires strict avoidance of the food(s) the patient is allergic to and prompt administration of epinephrine to treat anaphylaxis should accidental exposures occur.

Palforzia (peanut allergen powder) is an oral immunotherapy product approved in patients ages 4 to 17 for the mitigation of allergic reactions, including anaphylaxis, that may occur with accidental exposure to peanuts, but its benefits are restricted to peanut allergy. Xolair is the first FDA-approved medication to reduce allergic reactions to more than one type of food after accidental exposure.

“Over the past 35 years, I have seen how debilitating food allergies can be for patients and their loved ones, as they are consumed by the fear of accidental exposure,” said Dr. Robert Wood, director of the Eudowood Division of Allergy, Immunology and Rheumatology at Johns Hopkins Children’s Center and principal investigator of the OUtMATCH study that led to FDA approval.

“While allergic reactions to exposures are common and often severe, there have been limited treatment advancements for food allergy,” he added. “The results of the OUtMATCH study showed that anti-IgE therapy could significantly reduce the occurrence of allergic reactions across multiple foods in the event of an accidental exposure.”

OUtMATCH stands for Omalizumab as Monotherapy and as Adjunct Therapy to Multi-allergen OIT in Food Allergic Children and Adults.

“Living with food allergies has a profound impact on patients and their families, causing significant stress and requiring constant vigilance,” said Dr. R. Sharon Chinthrajah, associate professor of Medicine at Stanford School of Medicine, Sean N. Parker Center for Allergy and Asthma Research, and OUtMATCH co-lead study investigator.

“The OUtMATCH study demonstrated that anti-IgE therapy increased most patients’ threshold for an allergic reaction,” she added. “This presents an important new treatment option for patients and families in its potential to reduce the risk of allergic reactions from accidental exposures they may face in day-to-day life.”

Caution Warranted

As noted, Xolair isn’t a cure, and patients who take it must continue to avoid foods they are allergic to. Xolair is intended for repeated use to reduce the risk of allergic reactions and is not approved for the immediate emergency treatment of allergic reactions, including anaphylaxis. There are 160 different foods that cause IgE-mediated food allergy.

Still, detailed results from the OUtMATCH study showed treatment with Xolair increased, for a majority of trial participants, the amount of peanuts, tree nuts, egg, milk, and wheat they consumed without an allergic reaction, dramatically lessening the results of accidental ingestion or cross-contamination.

Xolair is a drug (in the class of drugs called monoclonal antibodies) that binds to IgE, the antibody type that triggers allergic reactions, and blocks IgE from binding to its receptors.

Xolair’s safety and efficacy in reducing allergic reactions in subjects with food allergies was established in one multi-center, double-blind, placebo-controlled study of 168 pediatric and adult subjects who were allergic to peanut and at least two other foods, including milk, egg, wheat, cashew, hazelnut, or walnut. Researchers randomly gave subjects either Xolair or placebo treatment for 16 to 20 weeks.

The primary measure of Xolair’s efficacy was the percentage of subjects who were able to eat a single dose (600 milligrams or greater) of peanut protein (equivalent to 2.5 peanuts) without moderate to severe allergic symptoms, such as moderate to severe skin, respiratory, or gastrointestinal symptoms, at the end of the treatment course.

Of those who received Xolair, 68% (75 of 110 subjects) were able to eat the single dose of peanut protein without moderate to severe allergic symptoms, compared to 6% (3 of 55 subjects) who received placebo. Of note, however, 17% of subjects receiving Xolair had no significant change in the amount of peanut protein tolerated (they could not tolerate 100 mg or more of peanut protein). As a result, continuation of strict allergen avoidance is still necessary, despite treatment with Xolair.

The key secondary measures of efficacy were the percentage of subjects who were able to consume a single dose (1,000 milligrams or greater) of cashew, milk, or egg protein without moderate to severe allergic symptoms at the end of the treatment course. For cashew, 42% who received Xolair achieved this endpoint, compared to 3% who received placebo.

For milk, 66% who received Xolair achieved this endpoint, compared to 11% who received placebo. For egg, 67% who received Xolair achieved this endpoint, compared to none of the 19 who received placebo. As a result, Xolair treatment is approved for certain patients with one or more IgE-mediated food allergies.

Optimistic Outlook

In the U.S., Genentech and Novartis Pharmaceuticals Corp. have worked together to develop and co-promote Xolair.

“Xolair offers patients and families an important new treatment option that can help redefine the way food allergies are managed and reduce the often-serious allergic reactions that can result from exposure to food allergens,” said Dr. Levi Garraway, Genentech’s chief medical officer and head of Global Product Development. “We look forward to bringing this treatment to the food-allergy community who have long awaited an advancement.”

Other allergy experts are equally hopeful.

“As more and more people are affected by food allergies, the need for a new approach to help prevent serious and often life-threatening allergic reactions and emergencies is critical,” said Sung Poblete, CEO of Food Allergy Research and Education. “As someone with food allergies, I know firsthand the significant impact they can have on people and their loved ones, and I share in the community’s excitement for this approval.”

Kenneth Mendez, president and CEO of the Asthma and Allergy Foundation of America, added that “the stress of living with food allergies can weigh heavily on people and their families, particularly when navigating events like children’s birthday parties, school lunches, and holiday dinners with friends and family. Given the growing prevalence of food allergies, this news offers hope to the many children and adults who may benefit from a new way to help manage their food allergies.”

How to Earn Women- and Minority-owned Business Certification

By Contributor March 29, 2024

Women in Businesss

Navigating the Process

By Jennifer Sharrow, Esq.

Women- and minority-owned businesses play a vital role in our local economies. They also play a larger role within communities in general — they serve as gathering places, education centers, and inspiration for future generations of entrepreneurs.

But, much like they represent our community, often largely by reason of the makeup of their ownership, they face challenges of historic and continuing discrimination. This can result in issues with access to capital, less favorable terms in negotiating contracts, and challenges finding suitable office or commercial spaces.

Formal certification as a woman- and/or minority-owned business can help alleviate some of those burdens. There are a number of different organizations that provide this certification. The state of Massachusetts has the Supplier Diversity Office; the U.S. Small Business Administration has the 8(a) Business Development Program and the Women-owned Small Business Federal Contract Program; and there are a number of private groups that issue certifications and provide other support, such as the Women’s Business Enterprise National Council and the National Minority Supplier Development Council.

Jennifer Sharrow

“Our women- and minority-owned businesses are already proud of their accomplishments, and now more than ever they deserve to celebrate their status.”

Getting certified brings new opportunities from federal agencies, state and local governments, and certain large corporations, who often designate a percentage of contracts for certified women- and minority-owned small businesses. Certification may open up access to exclusive networking, training, and educational programs for business owners. Certification may also increase eligibility for loans, grants, and programs specifically designated for certified entrepreneurs, such as management and technical-assistance programs.

All certification programs contain similar requirements, and if you’re an owner looking to get certified, you will want to start gathering information about the business, information about you, and information about the ways that you lead the business.

The Business

This will include standard documentation that the business is legally operating in good standing. Typical documents submitted about the business include formation documents filed with the secretary of State, governing documents such as the bylaws, financial records, and copies of lease agreements and customer contracts.

It is possible for a newly formed business to get certified, and where certain documentation is unavailable, such as tax returns, the certifying program will generally accept replacement documentation or narrative answers about the business operations.

You as an Owner

This will include proof of ownership of the business, such as stock certificates or the operating agreement, showing that the business is at least 51% women- or minority-owned. Additionally, the owner will need to submit personal information in the form of a photo ID, evidence of citizenship, and a résumé.

How You Manage the Business

This is very important. The certifications generally require not just 51% ownership, but also that the women and minority owners exert substantial control over the operations of the business. These aren’t programs for propping up a token leader, but instead for acknowledging those who have had to run their business while jumping over additional hurdles due to their race, gender, ethnicity, or other diverse class status.

Evidence for this often takes the form of answering a series of questions on who has the power to make financial decisions; take charge of bidding, negotiation, and signing of contracts; supervise employees, and manage the office.

What’s Next

Most programs will involve back-and-forth communication with the program certifiers, and for the Massachusetts Supplier Diversity Office, an investigator is assigned after submission of the application for verification and additional information gathering on the business.

Once approved, in addition to taking advantage of the benefits offered through the programs, the certification gives bragging rights. Our women- and minority-owned businesses are already proud of their accomplishments, and now more than ever they deserve to celebrate their status. A formal certification will only further benefit the business, and when they grow, we all reap the rewards.

Jennifer Sharrow is an associate with the law firm Bacon Wilson, P.C. in the Corporate Department, and is licensed to practice law in both Massachusetts and New Hampshire; (413) 781-0560; [email protected]

Spring Allergies and Asthma Are Problems in Western Mass.

By Contributor March 28, 2024

A Blooming Challenge

By David Robertson, MD, MPH, MBA

Spring is a season of rebirth and rejuvenation, with flowers blooming and the world around us turning from brown to green. However, for many area residents, this beautiful transformation comes with a less-welcome companion, with Springfield consistently ranking as one of the worst cities in the country for allergies and asthma.

This year, the warm winter that just came to an end is set to extend the allergy season, bringing about an early and possibly more intense onset of symptoms for allergy sufferers.

The Warm Winter Effect

Typically, cold winters help delay the start of the allergy season by keeping plants dormant and the ground frozen longer. A warmer winter can lead to an earlier thawing and activation of outdoor molds in the soil. This early activity, combined with spring rains, means that outdoor mold spores are already circulating, ready to trigger allergy symptoms. With tree pollen following closely behind, residents may find themselves in the midst of a particularly challenging allergy season.

Understanding Allergies and Asthma

Allergies occur when the immune system overreacts to substances in the environment, known as allergens, which are harmless to most people. These can include tree, grass, and weed pollens; molds; animal danders; and dust mites. When these allergens are inhaled or come into contact with the skin, they can cause symptoms such as sneezing, itching, runny nose, and watery eyes.

“Managing allergies and asthma requires a multifaceted approach. The three basic strategies for dealing with environmental allergens are avoidance, medications, and allergy immunotherapy.”

For some, allergies can also exacerbate asthma, a condition characterized by inflammation and narrowing of the airways in the lungs, leading to wheezing, shortness of breath, and coughing. Asthma can be triggered by allergens as well as changes in the weather, making the spring season particularly challenging for individuals with both allergies and asthma.

Strategies for Relief

Managing allergies and asthma requires a multifaceted approach. The three basic strategies for dealing with environmental allergens are avoidance, medications, and allergy immunotherapy.

The first line of defense is to minimize exposure to allergens. This can include staying indoors on days when pollen counts are high, using air purifiers at home, and changing clothes and rinsing off after time spent outside. Some people also find wearing masks or even protective eyewear helpful, particularly with activities that may increase allergen exposure, like cutting the grass and gardening.

Many over-the-counter (OTC) and prescription medications can help manage symptoms of allergies and asthma. Antihistamines, decongestants, nasal sprays, and eye drops are widely used to alleviate allergy symptoms, while asthma sufferers often use prescription inhalers to control their symptoms. However, choosing the right medication can be daunting due to the vast array of options available.

For those with severe allergies, allergy immunotherapy, which includes allergy shots and sublingual tablets, may be an option. This long-term treatment gradually desensitizes the body to specific allergens, potentially providing lasting relief.

Navigating Treatment Options

While many effective treatments are available over the counter, selecting the right product can be challenging without professional guidance.

In studies, nasal steroid sprays like Flonase or Nasacort are the most effective family of medicines for helping with congestion, sneezing, and post-nasal drip, but many people do not like using them. They may not be right for everyone, particularly people prone to nosebleeds or with glaucoma or cataracts.

Oral antihistamines, like Allegra, Claritin, or Zyrtec, can help with sneezing and itching, and these new antihistamines are not supposed to cause drowsiness, though everyone’s body is different. Antihistamine eye drops can help with itchy, watery, or swollen eyes, but can also cause or worsen dry eyes.

Oral decongestants can provide temporary relief of sinus pressure, but can also cause increased blood pressure and insomnia, so we generally recommend minimizing these medications. Nasal decongestant sprays like Afrin can provide temporary relief of congestion, but should not be used for more than two or three days in a row because they can cause increased congestion.

All of these medicines are available in less expensive generic forms, which most people find equally effective.

Given the number of treatment options and potential side effects for some people, it may beneficial to consult with a healthcare provider or an allergist to develop a personalized treatment plan. If you already have a treatment strategy that works for you and your family, now may be a good time to get a few boxes of your preferred medicine — in the last few years, there have been occasional shortages at the peak of allergy season. But leave enough for your neighbors!

The Road Ahead

As Springfield and the surrounding region brace for a longer allergy season, staying informed and proactive in dealing with allergens will be crucial for those looking to enjoy the spring while keeping their symptoms in check.

By understanding the triggers, using effective management strategies, and seeking professional guidance when necessary, allergy sufferers should be able to navigate the challenges of spring allergies and asthma with increased confidence.

Dr. David Robertson is an allergist and clinical immunologist and owner of Western Massachusetts Allergy, LLC in Springfield.

Corporate Transparency Act Creates New Reporting Requirements

Law

Prepare for Compliance

By David A. Parke, Esq.

The new reporting rules that became effective Jan. 1, 2024, under the federal Corporate Transparency Act (CTA) now require many small businesses and other entities to file reports with the U.S. Financial Crimes Enforcement Network (FinCEN). FinCEN estimates there are more than 30 million entities that are subject to these reporting rules on their effective date.

The CTA is intended to provide law enforcement with a means to combat crimes, like money laundering, that are aided through the use of shell companies. The CTA applies to ‘domestic reporting companies’ and ‘foreign reporting companies,’ as defined in the rules. This article will focus on domestic reporting companies.

Under the CTA, a reporting company, subject to the CTA, must file information with FinCEN regarding itself and its beneficial owners. For a reporting company formed on or after Jan. 1, 2024, the company must also report information regarding the individuals who created the company. Any changes to previously reported information must also be reported in a timely manner to FinCEN. The rules specify the information that must be reported about a reporting company and its beneficial owners and company applicants.

David Parke

“The CTA is intended to provide law enforcement with a means to combat crimes, like money laundering, that are aided through the use of shell companies.”

A domestic reporting company under the CTA is any corporation, limited-liability company, or other entity created by filing a document with the secretary of State or a similar office under the law of a state or Indian tribe, unless exempt. There are 23 categories of entities that are exempt from reporting. The exemptions include highly regulated entities like issuers of securities registered under Section 12 of the Securities Exchange Act of 1934, banks, insurance companies, regulated public utilities, and certain tax-exempt organizations. Many small entities are likely not covered by an exemption and will need to report. The rules define more specifically the conditions of each exemption.

One exemption is for a ‘large operating company,’ as defined in the rules. This is a company that employs more than 20 full-time employees in the U.S., has an operating presence at a physical office within the U.S., and has more than $5 million in annual gross receipts or sales, excluding gross receipts or sales from sources outside the U.S., according to the company’s federal income-tax return for the previous year.

A ‘beneficial owner,’ whose information must be reported to FinCEN, is any individual who exercises substantial control over the reporting company or who owns or controls, directly or indirectly, at least 25% of the ownership interests of the reporting company. The reporting rules address various types of direct or indirect control or ownership arrangements under which an individual would be a beneficial owner.

An individual would be included as a beneficial owner if that individual is a ‘senior officer,’ which includes the president, chief financial officer, general counsel, chief executive officer, chief operating officer, or any other officer who performs a similar function. The rules also include as a beneficial owner any individual who has authority over the appointment or removal of any senior officer or a majority of the board of directors or similar body, or has substantial influence over important decisions, including decisions of the type enumerated in the rules.

A ‘company applicant,’ whose information must be included for a domestic reporting company created on or after Jan. 1, 2024, is an individual who files the document that creates the company, and the individual who is primarily responsible for directing or controlling the filing where more than one individual is involved.

Any domestic reporting company created before Jan. 1, 2024, must file its initial report with FinCEN by Jan. 1, 2025. Any domestic reporting company created during 2024 must file within 90 days. Any domestic reporting company formed on or after Jan. 1, 2025 must file within 30 days. The deadlines are measured from the earlier of actual or public notice that creation is effective. If there is a change in any information previously reported to FinCEN regarding a reporting company or its beneficial owners, an updated report must be filed with FinCEN within 30 days.

FinCEN has an E-filing website for reporting information (boiefiling.fincen.gov), and charges no filing fee. FinCEN has also published a Small Entity Compliance Guide and Frequently Asked Questions to provide guidance regarding the CTA reporting rules. FinCEN allows for use of a FinCEN identifier, which is a unique number assigned by FinCEN to an individual who applies for such a number and submits the information required of a beneficial owner or company applicant. The reporting company’s report may include the FinCEN identifier in lieu of the information otherwise required for the individual.

The consequences of non-compliance can be significant. It is unlawful under the CTA for any person to willfully provide or attempt to provide false or fraudulent beneficial ownership information to FinCEN, or to willfully fail to report complete or updated beneficial ownership information to FinCEN. Under the CTA, violators are liable for a civil penalty of not more than $500 for each day the violation continues, and may be fined not more than $10,000, imprisoned for not more than two years, or both.

An entity that is or may become a reporting company should consider establishing an internal compliance program to identify reportable changes and assure that the necessary information is received in a timely manner. A company should also consider if any changes should be made to its governance documents to require beneficial owners to provide (again, in a timely way) the information needed for the reporting company to comply with its CTA reporting obligations.

These new reporting requirements will affect many entities. It is important for companies to inform themselves of the CTA’s requirements, determine if the CTA applies, and prepare for compliance.

David A. Parke is a partner in the Business/Finance department at Bulkley Richardson.

Keep in Mind These Considerations for Successful Co-parenting

Law

Unmarried Parents Are Still Parents

By Julie A. Dialessi-Lafley, Esq.

More and more frequently, people are opting not to get married, but are still desirous of having children and becoming parents, whether or not they are in a committed relationship with their partner. The decision to have a child or children creates a permanent connection to the other parent, regardless of the marital status of the parents.

Unmarried parents have various types of relationships. We see unmarried parents that live together, some have separate households but spend time together, and many are not together any longer and may have new relationships. The unmarried parents need to navigate how to bring up their child together while being apart. This requires that both parents understand that the other parent has a right to be in the life of the child. The law supports the idea that fathers and mothers both have the right to parent their children, even if unmarried.

Emotions of the parties often cloud their judgment when considering the role of the other parent in the life of the child. Did the parties break up? Has one person (or both) moved on? Was the relationship short-term without commitment and lacking a foundation between the parents? The history of the relationship is certainly impactful on the parent; however, first and foremost, parents need to be reminded that fathers need to be responsible, present, and cooperative with the mothers of their children, and mothers need to encourage, support, and accept the relationship a child has with their father.

The Child’s Best Interest

The standard in the Commonwealth of Massachusetts to determine a parenting plan and custodial relationship with children and parents starts with a best-interest standard. The presumption is that both parents should play a role in the life of a child unless it is not in the child’s best interest. It is often difficult for a parent to separate their feelings about the other parent when trying to determine the parenting relationship. It is clear, however, that simply because someone is not a good partner does not mean they should not be in the life of their child.

Julie A. Dialessi-Lafley

“First and foremost, parents need to be reminded that fathers need to be responsible, present, and cooperative with the mothers of their children, and mothers need to encourage, support, and accept the relationship a child has with their father.”

When parents are not married, the law provides that, absent an agreement or court order otherwise, the mother has sole legal and physical custody of the child. This is rebuttable and is not intended to prevent fathers from having equal footing in the lives of their children.

More times than not, with good communication, the parents can develop a parenting plan that provides for both parents to be involved in the legal decision making for the major medical, educational, and religious decisions of the child. This is what is known as legal custody. Parents can agree to share legal custody and make these major decisions together.

If they are unable to agree, a court may order shared legal custody if a history of the parents being able to work together to make these decisions can be demonstrated. Even if the court does not order shared legal custody, both parents still have the right by statute to have access to the medical and educational information and records of the child. It does not mean that a parent is excluded from knowing these things about their child.

There are always exceptions that need to be considered, such as domestic violence or history of restraining orders, which impact the ability of the court to grant certain relief if the parents are unable to agree.

It is worth reiterating that, if the parents are able to put their feelings about the relationship with the other parent aside and focus on the child, they can in most circumstances — if certainly not every one — develop a parenting relationship where both parents can be involved in the child’s life.

Parenting plans that deal with the actual parenting time the parties spend with the child should include the normal parenting plan, a holiday schedule, and vacation schedule, so that there is a clear plan for each parent’s time with the child. The location of pick-up and drop-off of the child, the specific time for exchange of the child, and who may transport the child are critically important in developing the parenting plan. Being clear and specific with these terms may create a plan that will reduce conflict between the parties when they may not both have the same philosophy about co-parenting with the other parent.

Parenting plans should also deal with child support, health insurance, uninsured medical expenses, extracurricular activities and payment of those expenses, education of the child, and the primary residence of the child, at a minimum.

The parenting plan also can include terms around communication. Communication is key, and throughout the child’s life, there are going to be countless times when the parents will need to discuss or exchange information with the other parent, make a decision together, or attend parent-teacher conferences, activities, or countless different life events.

A method of communication can be defined, such as through text, a parenting application which tracks communication, or through parent meetings on a scheduled basis. Regardless of the method, it is often key to successful co-parenting for there to be set rules as to where, when, and what the parents talk about.

By agreement, parents can include terms around phone calls or video calls with the child, as well as any other contact they want to have in between their parenting time. Language that fosters a positive and supportive parenting relationship between the child and the other parent can be included by agreement of the parents to prevent disparaging, disrespectful discussions.

The Court as a Last Resort

If the parents are unable to agree on how to develop a parenting plan, the court ultimately has the jurisdiction to make the decision. The court will do its job, but most every judge will encourage the parents to come to an agreement if they are able to do so, as they know their child better than anyone.

If the court is ultimately the decision maker, the court will consider the age and developmental stage of the child, the individual needs of the child, the history of the relationship between the parents, how close the parents live to each other, the parents’ work schedule, and problems such as substance abuse, domestic violence, child abuse, or a criminal record.

Naturally, this is not the exhaustive list, and the topics of this article are general. When navigating these issues, you should seek advice of an attorney in order to understand all the issues that need to be addressed and understand your rights as a parent.

How Anti-harassment Training in the Workplace Can Go Wrong

Law

Walking a Fine Line

By Trevor Brice, Esq.

As Massachusetts employers know, one of the best defenses to a discrimination or retaliation suit is to implement preventive measures. One of the most commonplace of these preventive measures is anti-harassment training courses for the workforce that can show the employer is in compliance with state and federal law.

However, a recent case shows that this preventive measure, while it is virtually always a helpful addition to an employer’s preventive measures against discrimination and retaliation, can go too far if not managed or implemented properly.

Anti-harassment Training Can Benefit the Workplace

Generally, anti-harassment training is a helpful addition the employer’s tool chest for preventive measures against discrimination and harassment. It gives employees the tools to be able to identify situations in which employees are harassed, discriminated against, and/or retaliated against; identify the classes upon which discrimination, harassment, and retaliation are illegal; and utilize the employer’s reporting procedures to prevent further discrimination, harassment, and retaliation when it is identified.

When deployed properly, anti-harassment training has the effect of creating, at the very least, a discussion in an educational environment about the influence of discrimination, harassment, and retaliation within the workplace.

“Generally, anti-harassment training is a helpful addition the employer’s tool chest for preventive measures against discrimination and harassment.”

Anti-harassment training also makes for an open forum in which employees can learn basic concepts that will make for a safer and inclusive environment that will help to prevent illegal discrimination, harassment, and retaliation. The court in the recent case of De Piero v. Pennsylvania State University acknowledged the positives in anti-harassment trainings, stating that “training on concepts such as ‘white privilege,’ ‘white fragility,’ implicit bias, or critical race theory can contribute positively to nuanced, important conversations about how to form a healthy and inclusive working environment.”

Anti-harassment Training Can Create a Hostile Work Environment

However, the court in De Piero also pointed to a more novel concept, that anti-harassment training can make for a hostile work environment. The plaintiff in De Piero sued on the hostile work environment theory, stating that he had to attend at least five conferences or trainings that discussed racial issues in “essentialist and deterministic terms, ascribing negative traits to white people or white teachers without exception and as flowing inevitably from their race.”

In order to prove hostile work environment, the plaintiff had to prove that he suffered intentional discrimination because of his protected status; the discrimination was severe or pervasive, it detrimentally affected him, and it would detrimentally affect a reasonable person in like circumstances (Castleberry v. STI Grp.).

In this case, the defendant employer moved to dismiss the plaintiff’s complaint, stating that the anti-harassment training did not create a severe or pervasive work environment and that it did not interfere with the plaintiff’s work performance.

However, the plaintiff succeeded, with the court ruling that the plaintiff had pled sufficient facts to go forward with his hostile work environment claim. Specifically, the court stated that the plaintiff “was obligated to attend conferences or trainings that discussed racial issues in essentialist or deterministic term, ascribing negative traits to white people or white teachers without exception.”

The court pointed out a training in which the trainer in the anti-harassment conference forced the plaintiff and other white and non-Black people to hold their breath longer to feel pain. It is this and other examples from the defendant’s anti-harassment training that led the court to conclude that the plaintiff’s hostile work environment claim could survive.

Conclusion

While the De Piero decision points to how employers can have possible liability when implementing preventive measures, employers should not abandon anti-harassment training and other preventive measures. The court specifically stated that anti-harassment training can aid employers and that “discussing in an educational environment the influence of racism on our society does not violate federal law.”

The takeaway from the De Piero decision is therefore not to eliminate anti-harassment training, but to instead emphasize that the communication and substance of these trainings matter and that anti-harassment trainings can violate federal law if not implemented properly. If employers have questions or concerns about their anti-harassment training following this decision, it is prudent to contact employment counsel.

Trevor Brice is an attorney who specializes in labor and employment-law matters at the Royal Law Firm LLP, a woman-owned, women-managed corporate law firm that is certified as a women’s business enterprise with the Massachusetts Supplier Diversity Office, the National Assoc. of Minority and Women Owned Law Firms, and the Women’s Business Enterprise National Council.

Alzheimer’s Assoc. Offers Tips for Supporting Dementia Caregivers

Healthcare News

Easing the Load

Currently, there are more than 11 million family members and friends across the country providing care to more than 6 million Americans living with Alzheimer’s disease.

Caring for those living with Alzheimer’s or other dementia poses special challenges for family caregivers. As dementia symptoms worsen, caregivers can experience increased emotional stress, depression, anxiety, and new or worsened health problems. Caregivers often experience depleted finances due to disruptions in employment and paying for healthcare or other services.
“Caring for a person with Alzheimer’s takes longer, lasts longer, is more personal and intrusive than most other diseases, and takes a heavy toll on the health of the caregivers themselves,” said Monica Moreno, senior director of Care and Support for the Alzheimer’s Assoc. “During the course of the disease, caregiving tasks escalate and become more intensive. Alzheimer’s and dementia caregivers are often managing multiple conditions, including memory loss, co-morbidities, loss of mobility, reduced communication skills, and behavioral and personality changes.”

Alzheimer’s Caregiving by the Numbers

• More than 11 million people in the U.S. are providing unpaid care to a person living with Alzheimer’s or dementia.
• Eighty-three percent of the help provided to older adults in the U.S. comes from family members, friends, or other unpaid caregivers.
• Nearly half of all caregivers (48%) who provide help to older adults do so for someone with Alzheimer’s or another dementia.
• Among primary caregivers of people with dementia, more than half take care of their parents.
• Approximately two-thirds of caregivers are women, and one-third of dementia caregivers are daughters.
• Approximately one-quarter of dementia caregivers are ‘sandwich generation’ caregivers, meaning they care not only for an aging parent, but also for children under age 18.
• In 2022, the lifetime cost of care for a person living with dementia was $377,621.
• Seventy percent of the lifetime cost of care is borne by family caregivers in the forms of unpaid caregiving and out-of-pocket expenses.
• Forty-one percent of caregivers have a household income of $50,000 or less.
Source: Alzheimer’s Assoc.

Across the country, 59% of dementia caregivers report high to very high emotional stress due to caregiving, and 38% report high to very high physical stress due to caregiving. Seventy-four percent of dementia caregivers report they are “somewhat concerned” to “very concerned” about maintaining their own health since becoming a caregiver.

To help caregivers balance competing priorities while maintaining their overall health and well-being, the Alzheimer’s Assoc. offers these tips:

• Find time for yourself. It’s normal to need a break from caregiving duties. No one can do it all by themselves. Consider taking advantage of respite care or help from family and friends to spend time doing something you enjoy.

• Become an educated caregiver. Understand the disease, its progression, and accompanying behavioral and physical changes. Know resources in your community that can help.

• Build a support network. Organize friends and family who want to help provide care and support. Access local caregiver support groups or online communities such as ALZConnected to connect with other caregivers. If stress becomes overwhelming, seek professional help.

• Take care of yourself. Try to eat well, exercise, and get plenty of rest. Making sure that you are healthy can help you be a better caregiver.

• Accept changes. Eventually, your loved one will need more intensive kinds of care. Research care options now so you are ready for the changes as they occur.

• Know you’re doing your best. It’s normal to lose patience or feel like your care may fall short sometimes. You’re doing the best you can. For support and encouragement, consider joining an online or in-person support group.

“As difficult as it may be, caregivers need to make their health and well-being an equal priority,” Moreno said. “Maintaining your health can help you be a better caregiver. No caregiver should face this disease alone. The Alzheimer’s Association is here to help.”

The Alzheimer’s Assoc. provides local support and programs to families facing this devastating disease, including a 24/7 helpline staffed by master’s-level clinicians and specialists who are available 365 days a year and can help families navigate a variety of disease-related issues. Call (800) 272-3900.

Be Aware of Coming Changes in Wage and Hour Laws

By Contributor February 29, 2024

Law Special Coverage

New Year, New Protections

By John S. Gannon, Esq.

Last month, the U.S. Department of Labor (DOL) issued a final rule that provides businesses with guidance to be used when evaluating whether a worker should be classified as an employee or an independent contractor under the Fair Labor Standards Act (FLSA). The DOL is also expected to issue a final rule that will extend overtime protections to an estimated 3.6 million salaried workers who are currently exempt under the law. Read on for more details about both of these developments.

Employee or Independent Contractor?

There are lots of reasons why a business would want to classify an individual as an independent contractor instead of an employee. For starters, employees are entitled to minimum wage and overtime pay protections, while independent contractors are not.

Moreover, Massachusetts employees are afforded rights and protections under the state Paid Family and Medical Leave program and the Earned Sick Time Law. Employees can also take advantage of workers’ compensation benefits when they are injured on the job, and typically can collect unemployment if they lose their job. Independent contractors do not get these benefits.

As a result, agencies like the DOL and the Massachusetts Attorney General’s Office consider misclassifying employees as independent contractors to be a serious problem. To combat this, DOL recently released guidance that explains how to analyze whether a worker is an employee or independent contractor under the FLSA.

The new rule is generally considered more employee-friendly than previous guidance, and it looks at the ‘economic realities’ of the working relationship. If the economic realities show that the worker is economically dependent on the employer for work, then the worker is an employee. If the economic realities show that the worker is in business for himself or herself, then the worker is an independent contractor.

The following factors are used to guide the assessment of whether a worker is an employee under the FLSA or an independent contractor in business for himself or herself:

• Opportunity for profit or loss depending on managerial skill. If the worker has no opportunity for profit or loss in connection with the project they are working on for the business, they are probably not in business for themselves, and therefore employee status is suggested.

• Investments by the worker and the employer. This factor looks at whether the individual uses their own tools/equipment and the labor of others to further a true business. If these investments are being made, it suggests the worker is an independent contractor.

• Permanence of the work relationship. Independent-contractor relationships are typically set for a defined period of time, or until a project is finished. If the relationship is continuous/indefinite in duration, it suggests an employee-employer relationship.

• Nature and degree of control. Independent contractors set their own schedules free from supervision by their clients or customers. Conversely, if the worker is being supervised and has a set schedule, employee status is suggested.

• Whether the work performed is integral to the employer’s business. This factor looks at whether the work is critical, necessary, or central to the potential employer’s principal business, which indicates employee status. Where the work performed by the worker is not critical, necessary, or central to the potential employer’s principal business, this indicates independent-contractor status.

• Skill and initiative. The focus here is on whether the worker uses their skills in connection with business initiative. If the worker does, that indicates independent contractor status; if the worker does not, that indicates employee status.

Proper classification of workers is of critical importance to employers. As explained above, when an employer misclassifies an employee as an independent contractor, the worker cannot take advantage of numerous workplace protections afforded to employees. This can lead to significant administrative penalties for businesses, not to mention costly misclassification lawsuits. When the classification analysis is a close call, employers should consult with their employment counsel prior to making the determination to avoid costly mistakes.

New Overtime Protections for Millions of Employees

Last fall, the DOL announced a proposed rule that would increase the salary threshold for exemptions from minimum wage and overtime pay requirements under the executive, administrative, or professional exemptions — otherwise known as the EAP exemptions.

As a reminder, in order to qualify for an EAP exemption, employees generally must be paid a salary of at least $684 per week ($35,568 annually). The DOL’s proposed rule would raise the current minimum weekly salary threshold for exempt employees to $1,059 per week, which amounts to $55,068 annually. In short, this means that most employees with a salary of less than $1,059 per week will soon be entitled to overtime when working more than 40 hours in a workweek.

The DOL’s proposed salary threshold rule would also automatically update these earnings thresholds every three years. We expect the rule will be finalized in April, and may go into effect as soon as June. With the 2024 presidential election approaching, the Biden administration will want to finalize this rule as soon as possible to avoid a new administration rescinding the rule.

Bottom Line

We encourage clients to take a proactive, preventive approach to wage and hour laws. Consider having your compensation practices audited by experienced counsel to be sure your business is not mistakenly classifying employees as independent contractors. Also, an audit will help spot overtime exemption problems before litigation ensues.

John S. Gannon is a partner with Skoler, Abbott & Presser, P.C., one of the largest law firms in New England exclusively practicing labor and employment law. Gannon specializes in employment litigation and personnel policies and practices, wage and hour compliance, and non-compete and trade-secrets litigation; (413) 737-4753; [email protected]

Keep Talking About Mental Health

By Contributor February 28, 2024