Contributor, Author at BusinessWest

President, Digiarks: Age 39

Rob Madrid considers himself a marketer who has always used digital marketing as a primary tool.

Armed with an MBA from Western New England University and a bachelor’s degree from Springfield College, Madrid held positions with Weed Man Lawn Care, the American Hockey League, and the Basketball Hall of Fame. Before founding his own business, he was head of client strategy for MassLive.

“I bounced around, not because I was getting fired,” he said. “It was the budding entrepreneur in me getting impatient. Once I developed digital expertise, I felt I could be successful on my own.”

Madrid and a partner started Digiarks, a digital marketing and design firm, in 2021 with the founding principle “honest, smart, experienced digital marketing — no BS.”

“Our slogan is what we’re all about,” he said. “We’re about honesty and transparency on top of knowing what we’re doing.”

Last fall, after buying out his partner, Madrid asked his wife, Sara, to join the firm, bringing skills in content creation and account management. Digiarks also added a remote graphic designer.

“We really have two companies that work hand-in-hand,” he said. “Our graphic designer is the creative arm that compliments the traditional digital marketing company, which executes ad campaigns and other things.”

Madrid has become a popular speaker on digital-marketing topics. His advice for budding entrepreneurs? “Make sure you have a diverse skill set, because you’ll need to wear every hat.”

Another piece of advice is to “segment your time between administrative duties and prospecting, while making quality work the core of what you do. Quality work will turn into more business; that’s certainly been our experience.”

Inspired by the business book Good to Great, Madrid is committed to following the concept of striving to be the best in the world at what he can become the best in the world at, and avoid areas where he won’t be the best.

“We develop wonderful websites, high-quality ad campaigns, SEO marketing, and consulting,” he said. “By emphasizing these core competencies, we can focus on what we do best and make our clients successful.”

To Madrid, nothing is more important than Sara and their three children. While he hopes to see Digiarks succeed and grow, he will not let success compromise his ethics.

“Every day I ask myself, ‘will my kids be proud of me?’ That’s how I want to live and do business. That’s what guides me.”

—Mark Morris

Stephanie O’Leary

Technology Assurance Manager, KPMG US: Age: 39

Longmeadow native and Bay Path University graduate Stephanie O’Leary observed that “I’ve completed all my schooling in a town that’s eight square miles.”

While that’s a fact, it’s also true that she’s really going places.

In her five years with KMPG US, a global network of professional firms providing audit, tax, and advisory services, O’Leary has earned three promotions and has been recognized for her dedication and leadership.

Technology-assurance positions tend to be male-dominated, but O’Leary noted that she was one of three women recently promoted in this area. “This was exciting to see because it shows KPMG’s commitment to advancing women and underrepresented groups.”

Since she joined the company five years ago, she has been involved in mentoring new hires and interns, and was selected as a national facilitator to help develop the next generation of KPMG employees.

“I enjoy helping new associates find their way,” she said. “At the same time, there are others in the company looking out for me.”

O’Leary stays involved with Bay Path, serving as president of the Alumni Assoc. Council and as the youngest member of the university’s board of trustees.

“I’m the first person in my family to graduate from college, and I believe everyone who wants an education should have access to it,” she said. “As a fairly recent graduate, I bring a fresh perspective to the board.”

O’Leary speaks regularly with prospective Bay Path students, helps others prepare for job interviews, and makes recommendations for internships. She also led a project to establish a campus food pantry. “It’s hard to get an education if you’re hungry,” she said.

At the Wildcat Pantry, students who may not have the means can get food and personal items to make it through their day and to graduation “If we can make a small difference in a student’s life on campus, I would like that to be part of my legacy as Alumni Association president.”

When a couple friends were diagnosed with cancer, O’Leary decided to train for the Boston Marathon, raising more than $14,000 for Dana-Farber cancer research.

“I thought I’d be a one-and-done marathoner, but they asked me back,” she said. This year, she had a patient partner, a 4-year old in remission from leukemia, and shattered her fundraising goal, collecting more than $15,000.

“When you run for a cause like this, it gives you a lot of perspective,” she said. “The people you meet are truly inspiring.”

—Mark Morris

Israel Rivera

Interim Regional Manager, Families First; Holyoke City Councilor: Age 37

Holyoke City Councilor Israel Rivera’s pursuit of a master’s degree in public administration from Westfield State University might not sound out of the ordinary, until he tells his backstory.

At age 19, Rivera was incarcerated for five years for drug-related charges. Upon his release, he gravitated to positive places in the community that he’d known since childhood. To get back on his feet, he sought out the Holyoke Boys and Girls Club and the Holyoke Housing Authority.

“I went back to my old roots with the intent on giving back to my community,” he explained.

After earning an associate degree from Holyoke Community College and a bachelor’s degree in sociology from UMass Amherst, Rivera held positions in community engagement and workforce development, before Families First recruited him as interim regional manager. There, he oversees two programs that build stronger families by encouraging parents to connect and network with each other.

“As parents grow their network, they gain confidence,” he said. “If one person is having a problem, another parent will share what has worked for them with a similar problem. It’s a beautiful thing.”

Rivera is proud to be part of this effort to build stronger families in Western Mass. “As a father of three, these programs strengthen my knowledge as a parent and a community organizer.”

In 2021, Rivera was elected to Holyoke’s City Council and now chairs its public safety committee. “When I took office, I did not think the other councilors would appreciate my background,” he said. “But many have been supportive and want to hear my perspective.”

He hopes his life example will start to change societal attitudes about people who made mistakes in their youth but have matured into adults who are positive citizens. “If we allow formerly incarcerated people to be in society, we have to gradually allow them to fully take part in society.”

For example, after a person is incarcerated, they often face legal discrimination when trying to improve their lives, he noted. “I have friends who would like to apply for a liquor license to open a restaurant or apply for a lottery license to open a bodega, but they can’t because of their past.”

Rivera said he shares his own experience to educate and inspire others about what’s possible. “When I was incarcerated, I dreamed about where I am today. So when someone asks how I’m doing, I say, ‘I’m living the dream.’”

—Mark Morris

Brian Sullivan

Vice President, Northeast IT Systems Inc.: Age 35

Brian Sullivan You might say Northeast IT Systems was on a roll right from the start.

“I met my business partner while we were both in a bowling league,” said Brian Sullivan, the company’s co-founder, with Joel Mollison, and vice president. “We had a shared vision of what Northeast IT could be, and we opened the company in 2012.”

With a computer information systems degree from Holyoke Community College, Sullivan knew he had to convince people he was up to the challenge of making his business a success.

“My mom and dad have a hard work ethic, and that rubbed off on me,” he said, adding that he’s also benefited from a number of mentors through the years.

The company handles business-to-business technology needs, from simple help-desk requests to large projects, such as installing servers and network equipment. Sullivan sees Northeast as a partner for its customers.

“We will even assist companies in developing IT budgets to help them get the most out of their technology,” he said. “We treat every customer network and IT budget like it’s our own.”

He is most proud of partnering with the nonprofit technology training center Tech Foundry to bring interns to Northeast so they can experience what it’s like to work in the field. “It’s a great program to be part of because there was nothing before it that is geared to what we do.”

Sullivan and his colleagues put a priority on mentoring younger team members. “Whether they stay with us long term or not, it’s satisfying to see our team members grow personally and professionally,” he said.

He credits his wife, Shawna, for always supporting his “crazy” ideas. Last year, she suggested a community event to benefit people suffering from Crohn’s disease after she had successfully been treated for it. Sullivan pitched in and applied his experience organizing golf tournaments and other events. The result was the first running of the Movement 5K, raising more than $6,000 for the Crohn’s & Colitis Foundation.

Whether in his professional or personal life, Sullivan always tries to live up to the principles of treating others how he’d want to be treated, valuing communication, and delivering on promises. That philosophy seems to be paying off in the reputation of a firm that aims to … well, bowl clients over.

“Integrity is my number-one priority,” he said. “I’m a handshake guy, so your word is everything.”

—Mark Morris

Erica Swallow

Realtor, Turnberg & Swallow Team, Coldwell Banker Realty: Age 36

Erica Swallow’s résumé confuses people because she has worked in journalism, high-tech, and, currently, real estate.

“I have a broad range of interests, but the string that connects them all is feeling rooted to what I’m working on,” she said.

In 2019, she decided to put down roots in Western Mass. because of the high cost of housing in the Boston area. As a remote worker for a Boston-area tech company, Swallow researched houses within a 90-minute driving distance from work and fell in love with Springfield’s Forest Park district.

“I was blown away by the historic homes and having the 735-acre Forest Park next door,” she said.

When her company pulled all its remote workers back to headquarters, Swallow chose to stay in Springfield. After helping her mom sell the family home in Arkansas, then buy one for her in West Virginia, Swallow knew she had her next career.

“I’ve always known real estate was a powerful way for families to build equity and generational wealth,” she said. “I thought if I could help other families, this is where I want to be.”

Though she launched her real-estate career in 2020, her sales production last year led to inclusion in the Coldwell Banker International Diamond Society, placing her among the top 10% of Coldwell Banker agents worldwide.

As president of the Springfield Preservation Trust, Swallow is excited about taking part in her first large-scale building-rehab project at 7-9 Stockbridge St., the third-oldest building in the city’s downtown.

“When I came here, I wanted to build off the history that Springfield has, and this is exactly the kind of project I was hoping for,” she said. Once complete, the trust office will occupy the ground floor and lease the upper floors.

Swallow appreciates how much her life has changed from the days of growing up in poverty, and shared that her personal mantra is a quote by 13th-century poet Rumi, who encouraged people to “live life as if everything is rigged in your favor.”

“When you live from a place of empowerment, anything is possible,” she said.

Swallow used to think that making meaningful change in the world could only happen at the national level, but has since had a change of heart.

“I’ve learned that change gets made when you get involved locally,” she said. “I’ve made more change in my life in Western Mass. than I feel I’ve made in my whole career, and I’m still writing this part.”

—Mark Morris

Ashley Tresoline

Owner, Bella Foodie: Age 39

Ashley Tresoline

Personal chef and food educator Ashley Tresoline lives her company’s motto: “healthy starts from the inside out.”

“The idea is to help people live their best lives by using food to be healthy,” she said. “We also teach kids and adults how to make healthy food taste good.”

Tresoline grew up eating a normal, healthy diet influenced by her Italian grandparents. Then, about 10 years ago, she was diagnosed with multiple sclerosis (MS). “That turned my life upside down,” she recalled.

As she became more ill, Tresoline learned to focus on her diet and what foods can help with MS as well as other conditions. She became educated about the combinations of grains and vegetables that can lessen digestive issues and how it even matters what types of spices we put in our food.

“I studied all this and learned how to use my diet to help me be healthy every day, so when things are bad for me, my body is already in a state of being healthy,” she said.

Using her degree in business management and marketing from Springfield College, Tresoline started Bella Foodie to share her knowledge with others.

“I help my clients live their best lives,” she said. “That can range from supporting them through a health problem or working with someone who wants to be healthier and make their body function at the highest level possible.”

She also brings her message of good health into the community through the Boys and Girls Club of West Springfield and Girls Inc. of the Valley. “I love teaching cooking classes to these kids, because they become so engaged.”

During the pandemic, when in-person sessions weren’t possible, Tresoline hosted classes and connected with clients over Zoom, which helped extend her reach. That reach went worldwide with Food for Life, a show she developed for e360tv, an online streaming network.

“The show is about all things health and wellness,” she explained. “Our guests range from local to international people who share their expertise on a wide range of topics that affect health, food, and everything in between.”

To emphasize the importance of what we eat, Tresoline discussed the example of the seemingly healthy person who suddenly dies.

“We’ve all heard the story of someone who was really active in sports who died of a heart attack,” she said. “Chances are they had a terrible diet. No matter how good you look on the outside, you still need to be healthy on the inside.”

—Mark Morris

Planning for Small Business Growth: Three Strategies to Hit the Next Level

By Contributor April 17, 2023

Thought Leadership

Palmer’s Development Is All Part of the Plan

Community Spotlight

By Mark Morris

Ryan McNutt says the ‘hill’ off Palmer’s Mass Pike exit is a challenging site.

You might say Ryan McNutt is a man with a plan. The Palmer town manager keeps a copy of the town’s master plan on his desk for anyone who wants to know the projects and priorities for the community in the years ahead.

McNutt sees a real benefit in a formal plan because it reduces what can be an overwhelming world of choices.

“When you have a document that we’ve all agreed on, it allows us to work toward the different benchmarks that are laid out for us,” he said. “Having a plan just makes it easier to get things done.”

And there are a lot of initiatives that developers, the town, and the state are trying to get done in Palmer — everything from a hotel and water park on the site once proposed for a casino to a stop on the planned, and highly anticipated, east-west rail line; from new cannabis businesses and a brewery to some infrastructure projects, and much more.

Overall, it’s an intriguing tome for this town roughly halfway between Springfield and Worcester, one that could change the landscape in all kinds of ways.

One key benchmark involves developing the land near Exit 63 on the Massachusetts Turnpike, commonly known as the Palmer exit.

With several empty land parcels near the exit ramp, McNutt and others see this as a significant economic opportunity. He was prepared to have the town purchase one of the parcels, clean up the lot, and advertise it for development with the hope it would be a catalyst for others.

“When you have a document that we’ve all agreed on, it allows us to work toward the different benchmarks that are laid out for us. Having a plan just makes it easier to get things done.”

While planning that move, a developer bought the parcel from the current owner and signed on to build the Liberty Plaza, scheduled to open late next year. Committed retail stores include a Chipotle restaurant, Starbucks, Jersey Mike’s Subs, and two other retail spaces not yet finalized.

“This is a great success for the town because it turns an empty lot into the kind of plaza you would expect to see close to a turnpike exit,” McNutt said. “Best of all, we achieved the result we wanted without having to buy anything.”

But this project pales in comparison to another proposed project, one that involves development of an area known as the ‘hill.’ Located directly at the end of the turnpike exit, the parcel represents nearly 200 acres of land. It was this area that was the proposed site for a casino complex.

According to Quabog Hills Chamber of Commerce Executive Director Andrew Surprise, Kalahari Resorts is in discussion with the town about a potential 400- to 500-room hotel with an indoor water park. Kalahari Resorts currently has hotel complexes in Pennsylvania, Ohio, Wisconsin, and Texas. Themed around African adventure, the hotels emphasize family vacations by featuring large indoor water parks, and business gatherings by offering large conference centers.

Andrew Surprise says the Quaboag Hills Chamber has rebounded following a loss of members and direction during the pandemic.

“If Kalahari eventually locates here, it would be a huge economic benefit to Palmer and the entire region,” Surprise said.

At the town level, McNutt said Palmer is working with the company to address bringing public utilities and access roads to the hill parcel.

“It’s a challenging site,” he noted. “While nothing is a sure thing, I’m glad to see this company feels optimistic enough to keep exploring the opportunity.”

Meanwhile, those in — or looking to enter — the cannabis industry are also finding opportunities in Palmer.

Indeed, while there are no cannabis retailers currently operating in town, that will soon change. Kali Cannabis has begun building a retail operation on Shearer Street, close to the turnpike exit. Cannabis retailer Silver Therapeutics has also broken ground on its facility, and two additional companies, Green Gold Group and Green Adventure, are planning retail operations in Palmer. The latter companies are still completing the permitting process with the Cannabis Control Commission.

In short order, the town could see four cannabis establishments open their doors.

“We will have to see what the market does to determine the right number of cannabis retailers,” McNutt said. “We’re going to let capitalism solve that one.”

As for the chamber, in the middle of the pandemic, it faced a shrinking membership base and a loss of direction. During that time, Surprise became the executive director, with a mandate to turn things around. After nearly three years, he is happy to report the chamber is back.

“We’ve added dozens of new members in the last two years, with more businesses signing on every day,” he said, adding that, in the past year, the chamber has brought $364,000 in economic-development money to its members.

Tracking Progress

Another engine of economic development involves a train stop in Palmer as part of the east-west rail project currently under consideration. In the budget that Gov. Maura Healey will present to the legislature for approval, she has identified funding for train stops in Pittsfield and Palmer.

“While the budget hasn’t yet passed, it’s a promising sign because it shows the Commonwealth believes in the rail project and supports Palmer,” McNutt said.

If approved, a rail stop in Palmer offers residents the possibility of direct access to Boston without driving. But Surprise looks at that potential from a different angle. “I’m more focused on bringing people from Boston and Eastern Mass. here, so they can visit the region, spend money in this area, and help our economy.”

It’s an economy that’s growing and becoming increasingly diverse, with many new additions, including cannabis-based businesses as well as the town’s first brewery, created by Rachel Rosenbloom and her husband, Michael Bedrosian, who saw opportunity in Palmer and are seizing it.

“We knew town officials were looking to revitalize downtown, and we thought it would be a good idea to add something to the community that would encourage people to go downtown,” Rosenbloom said.

While the couple have been home brewers for 10 years, Rosenbloom is a professional brewer, working at Fort Hill Brewery in Easthampton for the past five years. Palmer is known as the Town of Seven Railroads because the rail industry was an important part of the town’s early industrial development. That knowledge inspired the couple to name their business Seven Railroads Brewery.

“We didn’t want to go with an obvious name like Palmer Brewing Company,” Rosenbloom said. “We wanted to choose a name that really meant something to the community and to the area.”

Once they receive the proper construction permits for their Park Street location, the couple will start installing their brewing equipment. They have secured a license to brew and are still waiting for approval of their license to pour, which will determine how soon they can open the taproom and start serving the public.

“We’re going to concentrate on being a brewery, and while we won’t be serving food, we will invite local food trucks and let patrons know they can bring in food,” Rosenbloom said.

Palmer at a glance

Year Incorporated: 1775
Population: 12,448
Area: 32 square miles
County: Hampden
Tax Rate, residential and commercial: Palmer, $21.40; Three Rivers, $21.82; Bondsville, $22.54; Thorndike, $22.25
Median Household Income: $41,443
Median Family Income: $49,358
Type of government: Town Manager; Town Council
Largest Employers: Baystate Wing Hospital; Sanderson MacLeod Inc., Camp Ramah of New England; Big Y World Class Market
*Latest information available

She is hopeful the taproom can open this spring or early summer, and she’s not the only one looking forward to it.

“Everyone we talk to is super excited and can’t wait for us to open,” she said. “The response we’ve gotten from the community has been so positive, with several local businesses reaching out to help and to discuss working with us in the future.”

Last spring, Surprise resumed publishing the chamber’s recreation guide and business directory after not producing it during the pandemic years. Published in time to distribute at the Brimfield Antique and Flea Market (which brings more than 250,000 people to the region every year), the guide’s return proved a big success.

“We distributed half our print run at the flea market as well as to more than 60 locations in the region, with many asking for more copies,” Surprise said. “People really liked the pocket-guide format, and, of course, it’s available online, too.”

With the 2023 edition, Surprise is looking to create different trails for antique shops, breweries and wineries, boutique shops, and more. He hopes the increased activity will increase the tourism dollars spent in the region. “Right now, our efforts are all about planting seeds and seeing what grows.”

Meanwhile, Palmer continues to seek a new use for the 100-year-old Converse Middle School. McNutt said the town looked into the costs to modernize it for municipal use, but the price tag was too high. Now he’s looking to see if housing developers, specifically those building for residents age 55 and over, can propose an effective use for the site.

As part of its master plan, Palmer is also working on replacing two main bridges in town, on Church Street and Main Street. After minor repairs, the Main Street bridge has been deemed safe for now, while the Church Street bridge was closed. A truss bridge is in use until a new Church Street bridge gets built.

“It’s a complicated construction project, but we are still on schedule with our benchmarks,” McNutt said. “It is still a goal that I will drive my car across the new bridge this year.”

A boat ramp for Forest Lake is one project that is now complete. As a small, quiet spot, McNutt explained that the lake is a popular place for parents to teach children how to fish.

In the past, boat owners would launch from a sandy area along the lake and park their vehicles on the adjacent road. That would often lead to two safety issues of launching during muddy times and then parking vehicles on a fairly busy road. The Massachusetts Department of Fish and Game and Department of Conservation corrected those issues with a dedicated boat launch and an adjoining parking lot.

“From a safety, convenience, and aesthetic point of view, the boat launch was a great project all around that will benefit people for years to come,” McNutt said.

Bottom Line

In order to keep town projects on the path to completion, Palmer has a master-plan implementation committee consisting of citizens and town officials to make sure the actions that occur are aligned with the goals the town has identified.

“As we succeed and complete these projects, it serves as a catalyst and allows us to get even more done for the town,” McNutt said.

After all, it’s part of the plan.

Senate Legislation Authorizing Chapter 90 Funding Should Benefit Rural Towns

Construction

Claiming Mileage

On March 30, the Massachusetts State Senate passed a bill that includes $350 million in bond authorizations for transportation needs across the state, including $200 million for the state’s Chapter 90 program, which provides municipalities with a reliable funding source for transportation-related improvements, including road and bridge repairs.

“This legislation will maintain and improve our state’s infrastructure, ensure that residents have safe and reliable transportation options, and support sustainable, regionally equitable economic development in communities across the Commonwealth,” Senate President Karen Spilka said.

The legislation also authorizes $150 million in programs that will assist municipalities with various transportation-related projects. This includes $25 million each for the municipal small-bridge program, the Complete Streets program, a bus-transit infrastructure program, grants to increase access to mass transit and commuter rail stations, grants for municipalities and regional transit authorities to purchase electric vehicles and the infrastructure needed to support them, and new funding dedicated to additional transportation support based on road mileage, which is particularly helpful for rural communities.

“Rural towns do not have large municipal budgets like some Commonwealth cities; yet, with much smaller municipal budgets, they have been expected to maintain many hundreds more miles of roads than their urban counterparts.”

“By dedicating a $25 million fund to rural communities for road and culvert work, the Senate has once again demonstrated a commitment to regional equity,” state Sen. Jo Comerford said. “Rural towns do not have large municipal budgets like some Commonwealth cities; yet, with much smaller municipal budgets, they have been expected to maintain many hundreds more miles of roads than their urban counterparts. They have culverts in need of repair and a significant number of gravel and dirt roads. This rural program recognizes and begins to address these pressing, inequitable realities for rural communities, and I’m deeply grateful.”

In arguing for the bill’s passing, Comerford made a passionate appeal for relief for communities in her district, which includes parts of Hampshire, Franklin, and Worcester counties.

“I know Boston didn’t have a lot of snow this winter. That was not the case in my district. Just over two weeks ago, a number of towns in my district received over 24 inches of snow, some getting as much as 38 inches just in one storm,” she said. “The Hatfield DPW director wrote that, ‘due to the late storms, we have a lot of roads that have fallen apart and a lot of tree damage. With the costs of asphalt rising and the Chapter 90 funding staying the same, we will never catch up.’ The Greenfield DPW director told us, ‘due to many freezes and thaw cycles, our roads have shown accelerated deterioration, and our pavement-management program is really in shambles.’

She said the base amount being provided to communities has been static for many years, while costs are constantly rising. “Weather events are getting more extreme, putting more stress on roads and bridges and cleanup, and rural municipalities have many dirt and gravel roads, making up more than 30% of a municipality’s road network, in some instances, in my district. And this, of course, is exacerbated by climate change, the erosion and the disrepair of these roads.”

She noted that the existing Chapter 90 formula used to distribute funds — established more than 50 years ago — takes into account road mileage, but also population and employment. “But this doesn’t work for the places that don’t have the people, but do have the miles and miles of roads. Adjusting the base Chapter 90 formula to put more emphasis on road mileage is something that I respectfully urge us to consider.”

State Sen. Paul Mark, who represents all of Berkshire County among some communities in Hampden, Hampshire, and Franklin counties, agreed that the mileage-based calculation will greatly benefit smaller towns.

“In a district of 57 cities and towns, 54 of which have populations of fewer than 10,000 people, and in some cases communities as small as 120 residents, we live first-hand every day how difficult it can be to undertake road repairs, invest in new equipment, or have our voice heard in Boston,” he said.

Legislators outside Western Mass. also praised the bill’s passage.

“Our transportation system is the backbone of our Commonwealth, connecting us to our jobs, families, and communities,” said state Sen. Brendan Crighton, chair of the Senate Committee on Transportation. “This investment is not just an investment in infrastructure, but an investment in the future of our Commonwealth, enabling our cities and towns to make the necessary improvements to promote efficient and safe travel for all.”

State Sen. Edward Kennedy, chair of the Senate Committee on Bonding, Capital Expenditures, and State Assets, added that “I’m pleased to see this crucial investment in the Commonwealth’s roads and bridges move toward fruition. The cities and towns of Massachusetts depend on this necessary funding to maintain their transportation infrastructure.”

A different version of the bill having previously been passed in the House of Representatives, the two chambers will now reconcile differences before sending the bill to Gov. Maura Healey’s desk.

What Employers Need to Know About Workers’ Compensation

Insurance

Avoiding a World of Hurt

By Encharter Insurance

If you are an employer in Massachusetts with one or more employees, workers’ compensation is a mandatory business-insurance coverage. An employer may be an individual, a partnership, a corporation, or any other form of ownership that has employees. Failure to carry workers’ compensation coverage can result in an immediate stop work order and fines for every day that no coverage was available.

Besides being the law, here’s why you need it: workers’ compensation is essentially a no-fault system designed to protect both employers and employees should a workplace injury or illness occur. Your workers’ comp insurance policy would cover payment for medical care related to the employee’s injury, and would pay wage-replacement benefits, also called indemnity payments. In exchange for these benefits, workers’ comp, rather than the courtroom, becomes the employee’s exclusive remedy.

Individual states have jurisdiction over their own systems, so specific regulations and benefits vary by state. In Massachusetts, the Department of Industrial Accidents (DIA) manages the workers’ compensation system, adjudicating any disputes or appeals that arise. Meanwhile, the Massachusetts Workers Compensation Rating and Inspection Bureau sets rates.

How Is Coverage Obtained?

Most employers secure their workers’ compensation from an insurance agent. Large employers sometimes self-insure but must pass several regulatory gating issues to qualify for self-insurance.

If two or more insurance companies decline to insure your organization, you may have to seek coverage in the Massachusetts residual market, also known as an assigned risk pool.

Workers’ compensation insurance can be canceled by the insurance company, but only for the reasons of non-payment of premium, fraud or material misrepresentation, or a substantial increase in the hazard being insured. Your insurance company would need to notify you of cancellation with 10 days written notice.

How Are Rates Set?

The cost of the insurance is based on anticipated loss experience and is comprised of two basic components.

Under manual premium, the cost for your workers’ compensation policy is determined by your payroll and the classification of the work your employees do. The riskier the work, the higher the rate for the class code. There are thousands of class codes set by the Workers Compensation Rating & Inspection Bureau (WCRIB) in Massachusetts.

Under modified premium, once you have purchased workers’ compensation for two years, if the sum of the premiums for two years is $11,000 or more, your policy will be subject to experience rating. Manual premium is multiplied by an experience rating factor (or ‘e-mod’) reflecting your specific organization’s loss history. Much like the experience rating system used by many states to develop auto insurance rates, a bad year will impact an employer for years to come, as three prior years’ experience are used to develop a workers’ compensation e-mod.

What Benefits Does Workers’ Comp Provide to an Injured Worker?

Workers’ compensation coverage provides unlimited medical expenses, lost wages (also referred to as wage replacement or indemnity), rehabilitation expenses, and dependent and funeral expenses up to a state’s limits

The amount and duration of wage replacement and medical benefits varies based on each state’s law. Generally, the injured worker faces no out-of-pocket medical costs.

What Are Your Responsibilities as an Employer?

• Obtain workers’ compensation insurance coverage. Failure to carry coverage can result in stop-work orders and daily fines for the uncovered duration.

• Show proof of that coverage by posting notice in a public and visible place that all employees use.

• Provide a safe workplace, as required by OSHA.

• If an employee is injured, send them for medical care. In Massachusetts, you have the option to choose the physician for the first appointment.

• Report a medical-only injury (one with no anticipated lost time) to your insurer.

• Report a workplace injury with five or more days of absence, or a death, to the Massachusetts Division of Insurance.

What Are Some Best Practices to
Minimize Costs?

You can lower your workers’ comp costs by working to the lowest possible e-mod. There are two variables that you should work to control: the frequency of injuries, or how many work-related incidents occur; and the severity of workplace injuries, or the duration of time away from work. Here are best practices to help control both and to help you attain the lowest possible experience e-mod:

• Maintain a safe and healthy workplace. The least costly injuries are the ones that never happen. Control frequency by setting the expectation for an injury-free workplace, training employees to work safely, requiring personal protective equipment, and conducting periodic walk-through audits. Your insurance company can often provide safety resources.

• Have a plan for point-of-injury response. A quick, caring, non-judgmental response to a work injury will help to set the trajectory for a positive outcome for all. Ensure that employees and managers know what to do if an injury occurs. Escort the injured worker to medical treatment.

• Partner with a nearby occupational doctor or medical clinic. Massachusetts allows employers to choose the first medical contact. Choose a top-quality physician or a clinic experienced in workplace injuries. Your insurance company may have a good network.

• Report injuries to your insurer in a timely manner. Early reporting is extremely important — numerous studies have demonstrated that the sooner injuries are reported, the better the outcome. Aim for same-day reporting.

• Prepare for return to work. It’s important to get employees back to work and on the team as soon as possible to help prevent disability syndrome. Plan for a transitional or modified job duties to help the employ re-acclimate and work-harden to their regular job.

Report: No Medical Cannabis Markets Fully Meet Patients’ Needs

Construction Special Coverage

Cannabis

Improvement Needed

In its annual “State of the States” report, Americans for Safe Access (ASA) gave 13 state medical cannabis programs failing grades.

In the report, the ASA gave failing grades to Georgia, Idaho, Indiana, Kansas, Kentucky, Mississippi, Nebraska, North Carolina, South Carolina, Tennessee, Texas, Wisconsin, and Wyoming. Idaho and Nebraska, the last two states without medical cannabis access, both got a zero.

No state earned an A, but Connecticut, Illinois, Maryland, Michigan, and Rhode Island got the highest grade on the ASA report card, a B+.

Massachusetts earned a C+. According to the report, “medical cannabis sales in Massachusetts have reached almost $1 billion since the medical cannabis program was approved in 2018. Despite this promising sales number, Massachusetts did not make any noticeable improvements to the medical cannabis program in the past year.

“In 2023, ASA recommends that legislators in the state expand protections provided under the law for patients. As it stands, employment protections only exist through case law and should be formalized by the state Legislature. The Legislature should also seek to protect patients rights within housing, education, and family court as well.”

The ASA did commend Massachusetts for not requiring a fee with patient registrations and encourages policymakers to extend patient registrations to cover multi-year periods in order to cut down on administrative paperwork for patients.

According to patient feedback gathered for the Massachusetts report, “patients surveyed expressed concern regarding inflated pricing, a concentration on potential harm rather than potential benefits, and that the adult use/recreational market is undermining the medical market. They also reported a lack of pediatric access.”

While states continue to slowly adapt their laws to meet the needs of patients, the ASA noted, “we have noticed a big shift in states prioritizing adult use. Recreational adult-use programs and medical cannabis programs are not the same and should not be treated as such. A state may have both recreational, adult-use laws and medical cannabis laws, but those programs must remain separate in order to serve the distinct needs of the population. Cannabis patients rely on medical cannabis products for their health and well-being and should be treated as patients by the state — not as recreational consumers.”

This includes protections that may not exist in the recreational market, the report explained, such as excise and sales tax breaks on medical cannabis products, continued access to medical cannabis for minor patients, civil-rights protections for employment, housing, parental rights, and even alternative accessibility methods.

“Medical cannabis programs are essential to patient health and well-being and should be maintained and improved upon regardless of the legality of recreational adult use in the state,” the ASA argued. “While adult-use models can expand access to a larger population of people and may even increase the number of legal cannabis retailers, these systems and associated businesses are often not held to the same standards as authorized medical cannabis businesses.

“For example, laboratory testing of adult-use products may not have to undergo screening for the full array of heavy metals and contaminants that medical products require. It is also uncommon that states ask adult-use retailers to maintain staff competent about medical cannabis products or their applications to ensure patients have a trained advisor to consult with when they purchase medicine. It is critical to patient health that states maintain focus on addressing medical cannabis program challenges and patient needs before, during, and after developing adult-use programs.”

The ASA also gave grades to the medical cannabis programs of U.S. territories, such as the Commonwealth of the Northern Mariana Islands (D+), Guam (C-), Puerto Rico (D), and the Virgin Islands (D+).

According to a report by Ganjapreneur, “even in states with full medical cannabis programs, each state differs greatly in how patients can access their medicine, where they can access it, or even what types of products they can access.” Because medical cannabis remains prohibited federally, it added, “most state programs leave out millions of potential patients due to issues with affordability, patient rights, and civil protections, or product-safety standardization.”

The ASA gave no state a grade higher than a B+ because none of them “include the entire range of protections and rights that should be afforded to patients under the law, with some lagging far behind others.”

The ASA believes there are more than 6 million medical cannabis users in the U.S., which is about 1 million more than in its report from 2021.

Landscapers Look Ahead to Opportunities but Also Some Challenges

By Contributor April 14, 2023

Yard Markers

By Mark Morris

Sean Corrigan says landscapers have to deal with the challenge of longer lead times for delivery of many supplies.

Mark Lacombe likes good head start.

And like others in the landscaping industry, he’s grateful for one of the mildest winters in many years — from one perspective, at least.

“A mild winter helps us because there’s no frost in the ground, which allows us to start working on sites now rather than waiting for the frost to thaw and the mud season that would typically follow the thaw,” said Lacombe, general manager of Commercial Grounds Maintenance for Mountain View Landscapes in Chicopee.

However, the downside of a mild winter affects snowplowing, the other business many landscapers run in winter months. Lacombe said a normal winter allows the company to start the year off with revenue, even though he can’t count on it every year.

“During a normal winter, we’ll do about a million dollars in snow removal,” he said. “This winter was only about 65% to 70% of our normal business. That’s where a mild winter really hurts.”

Still, area landscapers say they are staying busy as spring takes hold in New England, and 2023 holds promise as well as some continuing challenges.

Brian Campedelli, owner of Pioneer Landscapes in Easthampton, said his crews are already busy finishing several jobs that carried over from last year due to the unprecedented growth his company experienced in 2022. This year is off to a strong start, too.

“During a normal winter, we’ll do about a million dollars in snow removal. This winter was only about 65% to 70% of our normal business. That’s where a mild winter really hurts.”

“We had a good turnout at the home show,” Campedelli said of last month’s annual event put on by the Home Builders & Remodelers Assoc. of Western Mass. “Many people we spoke with are interested in new projects.”

Greg Omasta also begins the year with several carryover projects. The owner of Omasta Landscaping in Hadley believes he will have a busy year, but he’s also concerned that increases in basic necessities like food and fuel may cause some homeowners to delay their yard improvements.

“We’re still getting calls every day, so I guess I’m optimistic and pessimistic all at the same time,” Omasta said.

Greg Omasta (right, with son Chris Omasta) says inflation in basic necessities may cause some families to delay yard improvements this year.

At the height of the pandemic, the residential side of landscaping exploded as homeowners who would have normally scheduled out-of-town vacations had to stay put. Many decided to convert their yards to outdoor entertainment areas. From elaborate projects like swimming pools and outdoor kitchens to simple landscape upgrades and firepits, every contractor had more business than they could handle.

However, while COVID-19 boosted the staycation phenomenon, it also created unusually high demand for all the products used in hardscaping and landscaping at a time when supply chains around the world faced sporadic delays due to the pandemic.

Landscapers now report that many of the supply-chain issues have subsided, but there are still delays for some products, and everything costs more.

“As we order for this season, plant prices are up, and the freight charges to ship them to us are really high,” Lacombe said, noting that this is a particular challenge when bidding for commercial landscaping projects that won’t start for 12 to 18 months. “We have to estimate the costs for a job that will happen a year from now, while our material prices are only guaranteed for 30 days.”

“Since COVID, municipalities are paying more attention to outdoor spaces and upgrading them, particularly with more climbing structures.”

Omasta pointed to one pleasant surprise, as grass-seed prices have seen a slight decrease. “Also, fertilizer prices have stabilized. I don’t expect them to come down, but at least they are more stable than they’ve been.”

Places to Play

Public parks and playgrounds are an area of commercial business both Omasta and Mountain View have seen as growth opportunities.

Sean Corrigan, vice president of Landscape Construction for Mountain View, said his company has a full schedule of reconstruction work on parks, playgrounds, and athletic fields, with most of the work happening in Connecticut and the Boston area.

“Since COVID, municipalities are paying more attention to outdoor spaces and upgrading them, particularly with more climbing structures,” he said. “They are interesting structures, and many have unique designs. The kids love them.”

Playground equipment and drainage piping are among the products that still have long lead times for delivery, Corrigan noted. “It’s getting better, but we still have to factor in extra time for these items.”

Finding enough workers is another challenge that still exists, but the situation has started to improve. Campedelli said this year has been easier to hire laborers as better-quality applicants are looking for work.

“Some of the more specialized jobs, like hardscape installers, are still hard to fill,” he said. “We recently hired a new general manager and a new office manager, who are both fantastic.”

Dave Graziano says the industry is being challenged to cultivate the next generation of workers.

While Omasta hires extra workers for spring and fall cleanups, he depends on a core group of employees who have worked with the company for years. “We provide them with benefits, holiday and vacation pay, as well as other perks to keep them with us.”

Lacombe said more people are looking for work this year than in the past, but finding workers with experience remains difficult.

“We’re hiring on attitude more than anything else,” he said. “I can teach someone what they need to know, but they need to be willing to come to work every day and put in the effort.”

Dave Graziano, project manager in the Landscape division of Graziano Gardens in East Longmeadow, sees a larger industry problem finding the next generation of landscape workers who want to put in the effort to be successful.

“Anything you can do outside to enhance the entertaining possibilities in your yard is generally what remains popular with people.”

“It’s not for everyone, but it can be rewarding work,” he said. “You see the fruits of your labor from the design of a project through completion, and you make the customer happy. It’s very satisfying.”

Graziano proudly noted that he and his brothers, Mark and Chris, work closely with all their customers. “One of the reasons people call us is because they know they will get a Graziano, and our customers like that.”

Along with landscaping services, Graziano Gardens also runs a retail location, he added. “In addition to people who hire us for landscaping projects, our clients are also do-it-yourselfers who are looking for good ideas and advice.”

As the world continues to move past COVID and more people leave home for vacation, landscapers say there are still plenty of homeowners who want to improve their yards.

“It seems that people are traveling by car more than plane, yet they are still spending money on their yards,” Omasta said.

“It’s not for everyone, but it can be rewarding work. You see the fruits of your labor from the design of a project through completion, and you make the customer happy. It’s very satisfying.”

Campedelli added that he’s hearing from plenty of homeowners who still want stone patios, new lawns, firepits, and other projects. “Anything you can do outside to enhance the entertaining possibilities in your yard is generally what remains popular with people.”

Long-term Value

In addition to the entertainment factor, Omasta noted one compelling reason to invest in a landscape project is the value it can add to a home when it goes up for sale.

According to Better Home and Gardens, attractive landscape projects can add 5% to 12% to a home’s resale value, while a professional hardscape project can add 15% to 20% to the resale value.

For many consumers, thoughts about landscape improvements don’t occur until the weather reaches 70 degrees and stays there. Campedelli’s advice for homeowners planning large backyard projects? Book soon if you want to get your job done this year.

“For special projects, we are scheduled into June and maybe a little later,” he said. “We can bring on new yard-maintenance clients without waiting, but big projects are booking further out.”

While traveling for vacations is on the rise, many people are still staying close to home and investing in their backyards. During the winter months, Campedelli attended seminars from hardscape block manufacturers who said they are in full production this year with lots of new product selections.

“They said the availability is much better this year, and we’ll have no problem getting what we need,” he said. “I hope they are right.”

Implement a Total Rewards Strategy

By Contributor April 13, 2023

Healthcare News Special Coverage

By Pam Thornton

The way that we work has changed over the past several years, and as a result of that shift, our mindset around rewards and recognition for employees also needs to change. We are facing a major rebalancing resulting from the severe economic and social shifts that have emerged.

Gartner reports that one of the top five priorities for 2023 is prioritizing the ‘employee experience, with almost 50% of HR leaders making this a major focus. A well-thought-out ‘total rewards’ strategy can have a big impact on attracting and retaining talent and overall employee experience.

Being a human-resources professional is a harder job than it ever has been before. Developing and using skills to influence how organizations shape their employee experience and human-capital strategies is a critical leadership role and one that cannot be done in the HR department alone. The answer is a holistic approach to total rewards that truly engages employees and includes every member of the organization.

There are five critical components in a total rewards strategy to consider when creating better employee engagement: compensation, benefits, recognition, well-being, and development.

It’s important to evaluate the compensation system you have in place. Do you have a system that is linked to organizational goals and individual competencies? Is your incentive and rewards system doing what it is designed to do? Do the benefits you offer resonate with your employees? Are they using them? An evaluation of the effectiveness of the overall strategy is critical, and the only way to really get the answers to these questions is to ask your employees and include them in the assessment and development of a truly effective total rewards program.

Well-being is all-encompassing and means something different to every individual, which makes this one of the hardest things for us to wrap our arms around. Flexible work practices, mental-health resources, financial-wellness solutions, and expanded caregiver-support options are just some of the building blocks that should be explored when creating your strategy. Offer solutions that give employees what they need and balance the business priorities of the organization. Thinking creatively to achieve the right mix is the ultimate goal.

The final and probably the most important component of a total rewards strategy is development. Developing your own skills and the skills of your workforce should be an ongoing journey that everyone participates in.

If we don’t put our life mask on first, we may not be able to help others. “Average leaders raise the bar on themselves; good leaders raise the bar for others; great leaders inspire others to raise their own bar,” author and leadership expert Orrin Woodward said. Leaders, please be students and use what you’ve learned to inspire, model, and teach.

We have an opportunity to re-engineer the traditional employment experience. Not all organizations are created equal, and we don’t have an endless fountain of resources, but we all collectively need to put the effort in to assess and adjust our total rewards strategy to leverage what we’ve got.

Pam Thornton is director of Strategic HR Services at the Employers Assoc. of the Northeast. This article first appeared on the EANE blog; eane.org

Experts Reveal Ways to Stay Fit Working from Home

By Contributor March 31, 2023

Healthcare News

An Active Office

Standing desks are standard at many local companies.

Since COVID-19 swept across the globe, many industries have shifted to fully remote or hybrid working. During the pandemic, 70% of the workforce was working from home, and since then, 62% of companies have planned to incorporate remote work, be it fully remote or hybrid.

With more and more people working from the comfort of their own home, concerns have arisen that this model may be associated with more sedentary lifestyles and, in turn, increased risk of obesity. Most of our calories throughout the day are burned through non-exercise activity thermogenesis, which includes walking and other basic activities. When working from home, sometimes those activities can be even more limited.

Here are a few ideas from online fitness resource Total Shape to stay fit even while working from home.

Standing Desk ($150-$600)

Standing desks have gained popularity over the last few years and have been proven to provide many positive health benefits. Simply put, standing burns more calories than sitting, even if you simply stand still. Research has also shown that 66% of workers felt more productive, and 87% felt more energized, using standing desks. Standing activates the muscles in your legs and core while stimulating circulation, which can help you to burn extra calories (typically 60 to 90 per hour) and build your strength. Standing desks come in a range of styles and cater to many different budgets, meaning this is an accessible option for all.

Desk Treadmill ($200-$800)

Although it is a more expensive option, this is one of the most effective ways to stay fit while working at home. It essentially takes the standing desk a step further by adding the walking element. Studies have shown that walking between 1 and 2.5 mph can lead to an extra 170 to 240 calories burned per hour. Not only have people encountered the physical benefits of getting more exercise, but walking helps oxygenate the brain by stimulating blood circulation. In other words, we think better and more efficiently when we walk. With most people having busy schedules outside of work, it can be difficult to get the recommended amount of physical exercise, which makes this a great way to stay fit while working from home.

Under-desk Bike ($50-$200)

A very similar concept to the desk treadmill, an under-desk bike features a small set of pedals that can slide under your desk so that you can pedal while sitting. The small machines can be altered to have more resistance, which makes it harder or easier to pedal. This type of aerobic exercise is good for staying fit and can help strengthen your legs and joints. Studies estimate that pedaling while seated can burn up to 10 calories per minute, depending on the intensity, which means you could burn up to 600 calories per hour. However, the average gentle pedaling will most likely burn 100 to 300 calories per hour.

Resistance Bands ($15-$40)

Resistance bands are an affordable option to help train your body and get fitter, by helping you build muscle and burn calories (180 to 250 per hour) while seated at your desk. You can perform plenty of passive resistance-band workouts even when you’re doing something at your desk, and in between typing and during brainstorming sessions, your body can keep active alongside your mind. Exercises could include bicep curls, overhead tricep extensions, and shoulder raises. However, there are many variations and other exercises that can be done with resistance bands. A study published in 2022 showed that resistance-band training lowers body fat in people who are overweight better than other forms of training, including free weights and body-weight exercises.

Seven-minute Workout

Searching ‘seven-minute workout’ on an app store will reveal an app that will guide you through various workouts you can do in your own home, which take just seven minutes at a time. The best thing about the seven-minute workout app is that its programs are designed especially for people who are doing the workouts at home, and who have no special equipment. The brief nature of these workouts allows people with busy schedules to fit in exercise and can help break up your workday, which can increase productivity while burning 20 to 50 calories per session. While there are some in-app purchases available, you can use the app completely free, so there’s nothing stopping you from getting started.

Diet

Exercise and living an active lifestyle are obviously important in staying fit and healthy; however, diet is a key contributor to overall health and fitness. People with few distractions at home may find they are more aware of hunger than they would be at the workplace, which can lead to more snacking and possibly an unhealthier diet. By focusing on eating healthy foods and healthy snacks, people who work from home can ensure they are staying fit and keeping their bodies healthy. Studies show that both the overall composition of the human diet and specific dietary components have been shown to have an impact on brain function, which means diet isn’t only going to keep you fit, but it’s going to improve cognitive function, and thus the quality of work produced.

Why It’s Important

A spokesperson from Total Shape noted that “roughly two in three people in the U.S. are overweight, and with many aspects of life becoming more sedentary, it’s important that people try to find new ways to keep fit and healthy. Life has become busy and more expensive, meaning that it’s harder to find the time and money to attend gyms or activities that help us to remain fit. This guide provides a plethora of choices for people on various budgets and with specific preferences to ensure we are keeping ourselves healthy.”

Total Shape is a fitness resource site providing information about workouts, supplements, and fitness to help people reach your goals. Total Shape does not provide medical advice, diagnosis, or treatment.

Why Many Diets Don’t Stick, and How to Improve the Odds

By Contributor March 31, 2023

Healthcare News

Set Up to Fail

“How to lose weight fast” has an average 284,000 monthly search volume in the U.S., demonstrating that Americans are desperate for a quick fix to help shed those unwanted pounds in time for summer.

How to lose weight is one of the most pressing health questions for many people. As many as 95% of dieters fail to reach their body target or quickly backslide and regain the weight they lost once their diet is finished. Because of this, a massive number of people are serial dieters who skip from one eating plan to the next, trying to find best way to lose weight and keep it off.

While there are thousands of diets to choose from, the overall rule is, if you want to lose weight, get toned, build muscle, or even just improve your energy levels, you’ll probably need to change what you eat.

“Provided that your diet of choice meets your caloric needs, it will have the desired effect,” an exercise and nutrition expert at online resource Fitness Volt said. “For example, consume fewer calories than you need, and you will burn fat and lose weight, but consume more than you need, and you will gain weight.

“However, most people fail to stick with their diet long enough for it to work sustainably. They’re strong out of the gate, but soon fall off the wagon and return to their previously sub-optimal eating plan,” the expert continued. “That’s why so many of us lose weight only to regain it shortly afterward, and it seems long-term, sustainable weight loss is rare nowadays.”

According to Fitness Volt, here are six reasons why most diets fail.

Foods Are Too Restrictive

Most diets ban certain food or food groups. For example, the paleo diet excludes all processed foods, while keto severely limits your carb intake. Other diets will cut out sugar or alcohol. The problem is, while cutting out certain foods can help contribute to your daily calorie deficit, this technique is also guaranteed to trigger cravings.

Essentially, any diet that bans a particular food or food group will invariably result in cravings, driving you to cheat on your diet. So allow yourself the smallest amount of this particular food or drink to allow your body to feel like it isn’t being deprived of something. In other words, everything in moderation.

Ingredients Cost Too Much

It is good to follow a diet of healthy, fresh ingredients, but with food being one of life’s unavoidable expenses, it will be harder for you to sustain this diet plan long-term if you aren’t always financially stable.

For example, some diets specify that you must eat expensive foods and that somehow these products are better for weight loss than those that are more reasonably priced. Organic vegetables and grass-fed beef from free-roaming cattle cost a lot more than the basics you get at Costco, but nutritionally are not all that different. They certainly won’t help you lose weight faster.

For a diet to be sustainable, you need to be comfortable with how much your food costs. For example, if your grocery bill doubles overnight, you’ve got a ready-made excuse for quitting your new eating plan.

It’s Too Complicated

To make diets unique, they are often unnecessarily complicated. This complexity can often cause people to make mistakes or just give up after a while.

Food-combing diets are a perfect example of this. Some may say things like “you can’t eat fat and carbs in the same meal,” which looks OK on paper, but makes meal prep far more complicated than it needs to be. Ultimately, for any diet to work, it needs to be simple enough to follow every day.

Perfection or Failure

Diets can often be very prescriptive and allow no variation. However, in everyday life, any diet can be difficult to stick to. Perhaps you have a friend’s birthday or an off day, and you decide to indulge in something sweet.

The reality is that your diet doesn’t have to be perfect; it just needs to pretty good most of the time, which is more than enough to reach weight-loss goals.

Ignoring the Long Term

Putting a timeframe on any diet sets you up for failure. Some of the most common ways diets are advertised are through their quick-fix timestamp, like “lose 30 pounds in 90 days” or “30-day get-ripped plan.”

Excess body fat accumulates over many years, and no one goes to bed lean and then wakes up fat. Likewise, achieving your body goal could take many months, or even years. To achieve a significant result in just a few weeks, any diet must be very restrictive, and, therefore, it may be unsustainable, as your body will soon put the weight back on that it dramatically lost. Before considering any diet, ask yourself, “can I follow it for the next six to 12 months?”

What’s the Science?

Some diets are based on very flawed science or may not be based on any science at all. One example of this is calorie-burning or negative-calorie foods, such as celery. No food burns more calories than it contains, and these claims are very misleading.

Effective diets work by manipulating your calorie balance. Consume fewer calories, and your body will make up the shortfall by using stored body fat for energy. No deficit means no fat burning. There are no shortcuts around this law of thermodynamics.

Bottom Line

As a rule, if a diet promises something that sounds too good to be true, it probably is, so don’t fall for it.

“Fortunately, healthy eating doesn’t have to be complicated or unpleasant, and weight management doesn’t have to take over your life,” Fitness Volt’s expert said. “You don’t even have to give up your favorite foods. However, you will need to quit looking for short-term fixes and adopt healthier, long-term habits.”

Fitness Volt is a comprehensive online resource dedicated to strength sports. Its mission is to empower readers with tried and tested knowledge and practices surrounding the latest fitness and nutritional information.

Cybersecurity Conference This Fall Will Help Businesses Stay Safe

By Contributor March 31, 2023

Technology

Layers of Protection

By Mark Morris

As the world increases its dependence on the internet for all kinds of transactions, keeping everything secure becomes a constant challenge.

Cybersecurity experts compare their work to an ‘arms race’ in which every new, secure tool they put in place motivates cybercriminals to find a new way to defeat it.

“When you think about it, we need to be right all the time; they only need to be right once,” said Charlie Christianson, president of CMD Technology Group, which installs computer networks for all kinds of companies and keeps them safe.

Paul Whalley, president of Growth for Your Company (G4YC), said cybersecurity is like physical security in that, the more difficult it is for criminals to defeat, the better the odds of not being a victim.

“For example, if criminals want to rob a house, they are more likely to hit the house with an open door over one with bolted locks on every door, tightly shut windows, and a sign out front that says they have a security system.”

“Two-thirds of people use the same passwords on multiple online accounts. Imagine if a cybercriminal knows that one password and can log into your financial, work, or cloud accounts. It happens every day to millions of people.”

In his current venture with G4YC, Whalley helps companies like CMD Technology Group grow their business. In addition, Growth for Your Company is organizing a cybersecurity conference on Tuesday, Sept. 19 from 8:30 a.m. to 3 p.m. at Twin Hills Country Club in Longmeadow. The idea is to educate local business leaders and IT professionals on evolving cyberthreats and the latest tools to combat them.

Businesses that purchased antivirus software years ago may think they are protected, but Christianson noted that, even if the old software blocks a cyberattack, it can take months to determine the source of the attack and how it gained entry.

“The new software tools can make a huge difference because they will immediately point you in the right direction to find the problem,” he said. “Some will block the threat and move it to a safe server to determine if it needs to be quarantined.”

Two-factor authentication (2FA) — that access code a bank sends by text after the customer inputs a password — has emerged as a strong deterrent against outside attacks. Encouraging safe practices such as a written policy to guide employees on how to act when they are using the company’s system is another key to fighting cyberattacks.

The software tools are only as good, however, as the people using them. Scott Augenbaum is a retired FBI agent and cybercrime-prevention trainer who is scheduled to present at the fall cybersecurity conference. Augenbaum contends that online safety begins with basic practices everyone can follow, starting with passwords.

“Two-thirds of people use the same passwords on multiple online accounts,” he said. “Imagine if a cybercriminal knows that one password and can log into your financial, work, or cloud accounts. It happens every day to millions of people.”

When he retired from the FBI in 2018, Augenbaum said, cybercrime was a $4 trillion problem. Since then, the cost to society has doubled. “The pandemic ruined everyone’s lives except the cybercriminals. So many people were shopping online, working from home, and logging in remotely to our most critical sites.”

In addition to using 2FA, Augenbaum recommends that businesses and individuals identify what he calls “mission-critical accounts,” such as banks, credit cards, and cell-phone accounts, and make sure each password is unique and at least 12 to 15 characters long.

All three cybersecurity experts told BusinessWest no one is too small to be a target for cybercriminals.

“Every one of the victims I’ve worked with felt they didn’t fit the victim profile,” Augenbaum said. “Anyone who thinks they are immune because they are a small business increases their chances of joining the list of small businesses that have been victimized.”

Christianson agreed, and gave an example of someone who owns a pizza shop. “That person might think they are only in the pizza business, so what could happen? Well, they most likely process credit-card transactions, and that’s a gold mine to a cybercriminal.”

He added that it’s important for a business owner to consider what is unique in their environment that makes them vulnerable to a cyberattack. There was a time when insurance for cyberattacks could quickly help a company get back to business but after years of increasing claims, that has changed.

“There is a new landscape for cybersecurity insurance companies,” Whalley said. “Companies are now more stringent on eligibility to get cyberinsurance.”

Before selling a cybersecurity policy, Christianson added, insurers want to know that a business has built several layers of protection into its systems.

“Just like an onion has layers, an effective security system also has layers to make it harder to penetrate a company’s data,” he explained. “If one layer gets defeated, there’s another one right behind it to stop a potential breach.”

The Sept. 19 conference will focus, in large part, on how to create those layers of protection with technology and a more educated human element.

“Along with the technology, we will be encouraging training so everyone understands how to mitigate the risks,” Christianson said. “We all have a role to play in preventing cyberattacks.”

Fitness Centers Report Renewed Interest in Getting Healthy

By Contributor March 30, 2023

Second Wind

By Mark Morris

Steve Conca says he’s seen a post-pandemic uptick in people wanting to take charge of their health.

Editor’s Note:

These are exciting, challenging, and ever-changing times for healthcare and the businesses and individuals providing it. To better inform and educate its readers about the many issues, trends, and developments in the healthcare sector, BusinessWest will be introducing a new, monthly segment that will present content from its sister publication, Healthcare News (HCN) .

This new resource will be called “HCN Monthly Feature,” bringing news and information on the many health, wellness, and fitness issues and developments of today, from both regional and national sources. Each HCN Monthly Feature will have specific themes and points of emphasis — everything from health and fitness (this month) to behavioral health; from cancer care to a salute to the region’s nurses — and it will be made available online at both businesswest.com and healthcarenews.com, as well as via the daily e-newsletters BusinessWest Daily News and HCN News & Notes, making it readily available to subscribers and consumers in the Western Mass. region and beyond.

For subscriptions, additional information, and to send us your news and story ideas, please visit BusinessWest and HCN

Marina Lebo remembers what Healthtrax in East Longmeadow looked like during the pandemic — and is glad it looks a lot different now.

“The plastic barriers are down, and the equipment is all back where it was,” said Lebo, vice president of Operations at the club. “We have more cleaning supplies available, but that’s the only difference.”

Fortunately, that return to normal is manifesting in other ways as well — including an increase in activity.

That’s only natural; at the start of the pandemic in March 2020, fitness centers were forced to shut down. Three months later, they were allowed to reopen at 40% occupancy only after installing clear plastic barriers at the front desk, mandating masks for everyone, spacing out exercise machines, and providing lots more sanitizing wipes to clean the equipment after each use.

With Healthtrax membership back to about 70% of pre-pandemic levels, Lebo’s goal is to keep increasing everyone’s comfort level to encourage going to the club as a normal activity again.

Steve Conca, owner of Conca Sport and Fitness in West Springfield, described the last few years as a whirlwind. He’s grateful his business has survived — and even thrived — since the early days of the pandemic.

“We don’t have a huge membership base, probably around 150, and it’s a very tight-knit community where people support each other inside and outside the gym,” he said.

When everything shut down in the spring of 2020, Conca began meeting with clients outdoors and over Zoom. “Everyone stuck with us, which was great. We didn’t lose too many people once we got back into the swing of things.”

Outdoor gatherings and livestreams were options Ashley Brodeur also used to keep her business going during the height of the pandemic. The owner of Active Lifestyle Fitness in Agawam hosted a private group on Facebook Live to keep her members on a regular workout schedule. While she appreciated virtual classes as a short-term necessity, she said, nothing beats the in-person experience.

In fact, shortly after in-person sessions resumed, Brodeur noticed several members getting easily winded from doing the same workouts they were performing during the livestream sessions. “When I asked why, they admitted that they weren’t doing the entire workout at home.”

So everyone was glad to return, she went on. “There is an accountability in having to show up somewhere and having someone watch how you are exercising.”

Wake-up Call

Everyone who spoke with BusinessWest pointed out that the pandemic served as a wake-up call about the importance of good health. As their members return to fitness centers, all agree there’s a new emphasis on getting results.

Marina Lebo says the rise of flexible and hybrid work schedules has led to Healthtrax being busy at less traditional times.

“I think a lot of people’s minds shifted during the pandemic,” Brodeur said. “Instead of working out to quickly lose some weight, our typical member now seeks a higher quality of life and to avoid becoming an unhealthy person.”

Lebo noted that the most vulnerable people to getting COVID usually have issues with obesity or struggle with other health problems.

“There’s been a realization that, if you stay in shape, you will be better-prepared for all kinds of ailments, and you’ll be less likely to have symptoms over someone who isn’t as healthy.”

For the past year or so, Conca has seen a resurgence in his West Springfield facility due to people taking more initiative with their own health and wellness — especially older people or those who navigated the pandemic with heart disease, diabetes, weight issues, or other health factors, and now want to improve their outlook.

“They weren’t really paying attention to their fitness or health before,” he said. “These are folks who want to take a much closer look at their health.”

Most of Conca’s members are in their mid-40s through their 60s. “We have some folks in their 30s, but they’re not the majority,” he said. “It’s a nice mix of folks, and no one’s here for vanity reasons like getting ready for bikini season. They want to move better, feel better, take care of themselves. When they go on vacation, they want to be able to go on a hike without pain.”

The demand for more results-oriented workouts has meant growth in the personal training and small-group training programs at Healthtrax. Lebo said the small-group training appeals to people who like a dedicated workout at a scheduled time.

“If you’re a biker, golfer, tennis player, runner, obviously you can’t go as fast and hard and aggressive as you did in your 20s or 30s, but you can still go out and enjoy doing it, at maybe a little less intensity.”

“If you have a goal and you start to see results, you are more likely to stick with the training,” she said. “It’s far more effective than going to the gym for weeks, doing your own thing, and not seeing any noticeable results.”

To establish a starting point for fitness, Healthtrax uses a high-tech body-composition machine known as InBody 570. While the user stands on it barefoot and holds the handles, the machine provides a wealth of fitness information that helps a person understand what type of workout would benefit them most.

“For example, someone who is thin might learn they are not as fit as they thought, and the InBody might also reveal a heavy person has a good amount of muscle, so they can concentrate on exercises that burn fat,” Lebo said.

At Active Lifestyle Fitness, Brodeur offers what she calls a 6 Week Transformation Challenge, with an emphasis on strength, cardio health, and flexibility. She emphasized this is not a quick fix, but a results-oriented approach to a healthy and balanced body.

“We developed this program because people told me, ‘I need help. I don’t want to mess around with my health anymore’” she said. “It’s been successful because it centers around the basics of helping people properly move their body and build strength.”

Instead of just wanting to lose some weight, Ashley Brodeur says, today’s fitness crowd is looking to improve their quality of life.

An emphasis on long-term health comes with many rewards. Conca noted that, while everyone knows the definition of ‘lifespan,’ he talks with members about ‘healthspan’ — the number of years one spends without being hampered by chronic disease — and ‘playspan,’ the number of years one is able to continue to enjoy favorite activities.

“If you’re a biker, golfer, tennis player, runner, obviously you can’t go as fast and hard and aggressive as you did in your 20s or 30s, but you can still go out and enjoy doing it, at maybe a little less intensity.”

Understanding the value of that playspan, and of maintaining the ability to enjoy quality-of-life moments like getting on the floor to play with a grandchild and easily getting back up, puts a real-life emphasis on fitness goals, Conca said, which are more powerful than the numbers attached to weight-loss goals.

“When they come here, a lot of folks are not in a good place; they’re struggling, and there’s a lot of misinformation out there,” he explained, adding that many people have tried different approaches but lacked proper accountability along the way.

“We really personalize it. I’ve been really blessed to help people and have a team around me who feel the same way. It’s exciting because we’re really helping people.”

Opportunity Knocks

Lebo has seen a huge change involving when people choose to access her club. In the past, the hours before and after work were consistently busy, while the club was practically a ghost town in the early afternoon. That’s no longer the case.

“We are busy at all different times during the day,” she said. “With more people working from home or on floating work schedules, they might come in after 9 a.m. or after 2 p.m.”

All-day activity has been a positive development because, in addition to seeing activity all day, members no longer experience those congested times waiting to use the more popular exercise equipment.

“It’s also good for our training classes because we can schedule throughout the day instead of trying to jam everyone in after work,” Lebo said.

Whether it’s through personal training sessions, small groups, open gym time, or an introductory, six-week program called Mastering Your Best Self, Conca emphasizes that fitness should not be stressful. In fact, when done properly, it should reduce other stressors in life.

“Everyone’s dealing with something, whether it’s physical stress, financial stress, or family situations, taking care of someone. Everyone’s got a lot of stuff on their plate. So we try not to make fitness another burden for them,” he said.

“We want people to recognize, they have an opportunity to take better care of themselves, and it’s going to make all those things they are dealing with much more manageable. Fitness can be fun, let’s not make it a punishment.”

Mental-health Needs Continue

By Contributor March 29, 2023

By Negar Beheshti, MD

The emergency declaration of the COVID-19 pandemic may end on May 11, depending on the specific policies and guidelines of each country or region. However, the mental-health needs of individuals affected by the pandemic are likely to continue long after the official declaration ends.

The COVID-19 pandemic has caused significant stress and uncertainty for many people, including social isolation, financial difficulties, and concerns about health and safety. These stressors can take a toll on mental health, leading to symptoms of anxiety, depression, and other mental-health issues.

While the end of the pandemic may bring some relief, it is important to recognize that the mental-health impacts of the pandemic may be long-lasting. Therefore, it is essential to continue to prioritize mental healthcare and support, both for those who have been directly affected by the pandemic and for the general population.

This can include accessing mental-health services, practicing self-care strategies such as mindfulness and exercise, and seeking support from friends, family, or mental-health professionals as needed. By taking steps to address their mental health, individuals can promote their overall well-being and resilience in the face of ongoing challenges.

Mental Health America’s 2023 ranking of states in terms of higher access to mental healthcare shows Massachusetts continues in a top position. The Commonwealth, which has made access a priority through its recent creation of Community Behavioral Health Centers, ranks second, as it did in 2022, in terms of such markers as access to insurance, treatment, and quality and cost of insurance.

Lack of affordability and lack of access are consistently among the barriers cited in seeking mental healthcare, so it is good to see the state maintain its ranking on access in comparison to other states. Massachusetts, through its Roadmap for Behavioral Health Reform, is working to reduce these barriers, and we here at MiraVista are proud that our opening nearly two years ago in the middle of the pandemic created additional inpatient psychiatric beds in the state for both adults and youth, as well as expanded inpatient treatment for substance use.

Still, the need for increased mental-health services — and the funding to support them — to meet demand continues both in the state and nationally.

The pandemic brought attention to the existing gaps in mental-health services and has spurred efforts to address them. It is crucial to recognize that the need for mental-health support and resources continues to exist post-pandemic, and individuals should be encouraged to seek help and support whenever necessary.

Our experienced clinicians deliver patient-centered and evidence-based care, helping those with mental-health and substance-use conditions to find their road to recovery in order to live a fulfilling life.

Dr. Negar Beheshti is the chief medical officer for MiraVista Behavioral Health Center in Holyoke and its sister hospital, TaraVista Behavioral Health Center, in Devens. For more information on MiraVista’s psychiatric services, visit www.miravistabhc.care.

Real Estate Transactions

By Contributor March 29, 2023

Real Estate

The following real estate transactions (latest available) were compiled by Banker & Tradesman and are published as they were received. Only transactions exceeding $115,000 are listed. Buyer and seller fields contain only the first name listed on the deed.

FRANKLIN COUNTY

BUCKLAND

120 Bray Road
Buckland, MA 01370
Amount: $225,000
Buyer: Sarah Davenport
Seller: Shirley H. Demers
Date: 02/22/23

9 Norman Road
Buckland, MA 01330
Amount: $350,000
Buyer: Colleen M. Clark
Seller: Marcel International
Date: 02/23/23

ERVING

16 Moore St.
Erving, MA 01344
Amount: $335,000
Buyer: Benegan2 LLC
Seller: S. M. Phillips Supplemental
Date: 02/22/23

191 North St.
Erving, MA 01344
Amount: $275,000
Buyer: Terrance L. Dunn
Seller: Joseph C. Reed
Date: 03/01/23

GREENFIELD

65 Conway St.
Greenfield, MA 01301
Amount: $1,400,000
Buyer: Clinical & Support Option
Seller: 60 Wells Street LLC
Date: 03/02/23

186 High St.
Greenfield, MA 01301
Amount: $460,000
Buyer: Joshua L. Westbrook
Seller: Nils P. Ahbel
Date: 02/21/23

42 Homestead Ave.
Greenfield, MA 01301
Amount: $250,000
Buyer: Jeffrey Andrews
Seller: Debra S. Andrews
Date: 03/01/23

10 Sanderson St.
Greenfield, MA 01301
Amount: $201,000
Buyer: Jennifer Farley
Seller: Miller, Peter S., (Estate)
Date: 03/03/23

46 Wells St.
Greenfield, MA 01301
Amount: $188,425
Buyer: Clinical & Support Option
Seller: Zenun LLC
Date: 03/02/23

60 Wells St.
Greenfield, MA 01301
Amount: $1,400,000
Buyer: Clinical & Support Option
Seller: 60 Wells Street LLC
Date: 03/02/23

HEATH

172 Route 8A
Heath, MA 01339
Amount: $175,000
Buyer: Robert J. Brennan
Seller: Janet R. Giard
Date: 02/28/23

MONTAGUE

140 7th St.
Montague, MA 01376
Amount: $190,000
Buyer: Daniel Lederer
Seller: Pinette, Brian Edmund, (Estate)
Date: 02/22/23

87 K St.
Montague, MA 01376
Amount: $195,000
Buyer: J. M. Dinsmore-Lafrance
Seller: Eugene Milewski
Date: 03/01/23

465 Millers Falls Road
Montague, MA 01349
Amount: $239,000
Buyer: Joseph Reed
Seller: Jane E. Dion
Date: 03/01/23

NORTHFIELD

21 Meadow St.
Northfield, MA 01360
Amount: $265,000
Buyer: MW & MW Realty LLC
Seller: Frank B. Podlenski
Date: 03/03/23

16 South Mountain Road
Northfield, MA 01360
Amount: $335,000
Buyer: Todd Lescarbeau
Seller: 16 South Mountain RT
Date: 02/27/23

ORANGE

232 East Main St.
Orange, MA 01364
Amount: $275,000
Buyer: Tyler Q. Grossman
Seller: My Jireh Properties LLC
Date: 02/24/23

308 East Main St.
Orange, MA 01364
Amount: $120,000
Buyer: L5 Development LLC
Seller: Cascade Funding Mtg. TR HB4
Date: 03/01/23

232 East River St.
Orange, MA 01364
Amount: $220,000
Buyer: Lawrence Matchem
Seller: Forrest A. Calder
Date: 02/28/23

124 Mechanic St.
Orange, MA 01364
Amount: $287,500
Buyer: David L. Lincoln
Seller: Jacob R. Paul
Date: 02/28/23

SHELBURNE

30 Bridge St.
Shelburne, MA 01370
Amount: $530,000
Buyer: Hanna Inv Group LLC
Seller: Kenneth H. Chaffee
Date: 02/28/23

SHUTESBURY

29 Ladyslipper Lane
Shutesbury, MA 01072
Amount: $222,208
Buyer: Stanwich Mortgage Loan TF
Seller: Christopher G. Burnett
Date: 03/02/23

WARWICK

Northfield Road, Lot 11
Warwick, MA 01364
Amount: $117,000
Buyer: Joseph Giarusso
Seller: Gary A. Salamone
Date: 02/24/23

WHATELY

Christian Lane (off)
Whately, MA 01093
Amount: $6,628,005
Buyer: Full Bloom Market Garden LLC
Seller: Mustang Whately Investments LLC
Date: 03/02/23

HAMPDEN COUNTY

AGAWAM

30 Alhambra Circle North
Agawam, MA 01001
Amount: $278,000
Buyer: Andrew J. Racette
Seller: Barbara J. Souliere
Date: 02/28/23

87 Anthony St.
Agawam, MA 01001
Amount: $314,000
Buyer: Ryan C. Dustin
Seller: Ivan Carrasquillo
Date: 02/21/23

2 Belmont Ave.
Agawam, MA 01030
Amount: $120,000
Buyer: Jeremy Mutti
Seller: Gail M. Almquist
Date: 02/27/23

60 Maynard St.
Agawam, MA 01030
Amount: $250,000
Buyer: Thomas E. Gilroy
Seller: Carey, Helen J., (Estate)
Date: 02/28/23

47 Howard St.
Agawam, MA 01001
Amount: $227,500
Buyer: Melissa Surprise
Seller: Debra A. Ceccarini
Date: 02/21/23

19 Meadowbrook Road
Agawam, MA 01001
Amount: $530,000
Buyer: Michelle M. Macklin
Seller: Christopher Nascembeni
Date: 02/21/23

33 Perry Lane
Agawam, MA 01001
Amount: $535,000
Buyer: Ryan Hayward
Seller: Andrey Kaletin
Date: 02/23/23

62 Ramah Circle North
Agawam, MA 01001
Amount: $650,000
Buyer: 62 Ramah Circle LLC
Seller: Joseph F. Dempsey
Date: 02/24/23

47-49 Royal St.
Agawam, MA 01001
Amount: $120,000
Buyer: Plata O. Plomo Inc.
Seller: Westerly TR
Date: 03/03/23

42 South Brooke Lane
Agawam, MA 01001
Amount: $405,000
Buyer: Kelly S. Nouwen
Seller: Kelly, Nancy Comery, (Estate)
Date: 02/21/23

268 South Westfield St.
Agawam, MA 01030
Amount: $340,000
Buyer: Amanda J. Robare
Seller: Bethany A. Tangredi
Date: 03/01/23

192 Shoemaker Lane
Agawam, MA 01001
Amount: $460,000
Buyer: Asila LLC
Seller: Joseph S. Schlaffer
Date: 02/24/23

CHICOPEE

94 9th Ave.
Chicopee, MA 01020
Amount: $154,000
Buyer: Milton J. Theriault
Seller: Glenn A. Tunis
Date: 02/28/23

59 Artisan St.
Chicopee, MA 01013
Amount: $240,000
Buyer: BD Geffin LLC
Seller: Round Two LLC
Date: 03/03/23

144 Ashgrove St.
Chicopee, MA 01020
Amount: $270,000
Buyer: Shannon M. O’Connell
Seller: Edward A. Leblanc
Date: 02/22/23

175 Beauregard Ter.
Chicopee, MA 01020
Amount: $385,792
Buyer: RMS Series T2020-1
Seller: David Hall
Date: 02/24/23

65 Bonneville Ave.
Chicopee, MA 01013
Amount: $340,000
Buyer: Hassan Saleh
Seller: Lisa B. Marques
Date: 02/24/23

250 Britton St.
Chicopee, MA 01020
Amount: $255,000
Buyer: Kevin C. Dimitropolis
Seller: Richard A. Funk
Date: 03/02/23

35 Center St.
Chicopee, MA 01013
Amount: $1,250,000
Buyer: 35 Center St. Chicopee LLC
Seller: 35 Center Street RT
Date: 03/01/23

27 Charbonneau Ter.
Chicopee, MA 01013
Amount: $369,000
Buyer: Graciano Ortiz
Seller: LP Properties LLC
Date: 02/21/23

954 Chicopee St.
Chicopee, MA 01013
Amount: $240,000
Buyer: Juan C. Cornejo
Seller: Luciano Santos
Date: 02/27/23

36 Fuller St.
Chicopee, MA 01020
Amount: $385,000
Buyer: Serdar Turkmen
Seller: Sergeo V. Arbuzov
Date: 02/28/23

28 Glendale St.
Chicopee, MA 01020
Amount: $265,000
Buyer: Janet L. Stadnicki
Seller: Gallagher Cap Group LLC
Date: 02/23/23

33 Guyotte Ave.
Chicopee, MA 01020
Amount: $131,000
Buyer: Cheyenne Rose
Seller: Gary P. Biela
Date: 02/24/23

27 Hearthstone Ter.
Chicopee, MA 01020
Amount: $176,000
Buyer: Marek Dazblaz
Seller: PHH Mortgage Corp.
Date: 03/01/23

55 McCarthy Ave.
Chicopee, MA 01020
Amount: $130,000
Buyer: Revampit LLC
Seller: Marilyn E. Mars
Date: 03/03/23

36 Montvue St.
Chicopee, MA 01013
Amount: $166,500
Buyer: Pah Properties LLC
Seller: Susan Smith
Date: 02/28/23

56 Mount Vernon Road
Chicopee, MA 01013
Amount: $225,000
Buyer: Christopher Nascembeni
Seller: Paul W. Gajda
Date: 02/22/23

15 Nora St.
Chicopee, MA 01013
Amount: $223,000
Buyer: Daniel T. Maciolek
Seller: Daniel D. Maciolek
Date: 03/01/23

1 Saint James Ave.
Chicopee, MA 01020
Amount: $2,291,333
Buyer: WG 2023 LLC
Seller: Walgreen Eastern Co. Inc.
Date: 03/03/23

73 Searles St.
Chicopee, MA 01020
Amount: $240,000
Buyer: Jarvis Irt
Seller: Susan M. Gustafson
Date: 02/23/23

64-66 Shepherd St.
Chicopee, MA 01013
Amount: $440,000
Buyer: Masshousing LLC
Seller: Volodymyr Boyko
Date: 02/27/23

78 Skeele St.
Chicopee, MA 01013
Amount: $400,000
Buyer: Richard Dunn
Seller: Gouin, Lauria A., (Estate)
Date: 02/21/23

61 Van Horn St.
Chicopee, MA 01013
Amount: $375,000
Buyer: Jesus F. Trinidad
Seller: Congamond Management LLC
Date: 02/21/23

43 West St.
Chicopee, MA 01013
Amount: $215,000
Buyer: Blackrock Bng Group LLC
Seller: Anglejoy Co. LLC
Date: 03/02/23

EAST LONGMEADOW

153 Chestnut St.
East Longmeadow, MA 01028
Amount: $260,000
Buyer: Jaime L. Hernandez
Seller: Douglas Dichard
Date: 02/22/23

143 Kibbe Road
East Longmeadow, MA 01028
Amount: $150,000
Buyer: Bryan Kaselouskas
Seller: Joseph T. Pastreck
Date: 03/03/23

198 Maple St.
East Longmeadow, MA 01028
Amount: $575,000
Buyer: John J. Ryan
Seller: Louis A. Calabrese
Date: 02/21/23

566 Parker St.
East Longmeadow, MA 01028
Amount: $446,000
Buyer: Ryan Conn
Seller: Cig3 LLC
Date: 03/02/23

257 Pease Road
East Longmeadow, MA 01028
Amount: $378,000
Buyer: Steven Valentino
Seller: Bank Of America
Date: 02/28/23

397 Porter Road
East Longmeadow, MA 01028
Amount: $230,000
Buyer: Stacy C. Elms
Seller: Jennifer M. Darcy
Date: 02/28/23

20 Sherwood Lane
East Longmeadow, MA 01028
Amount: $800,000
Buyer: Keith Polci
Seller: Cheryl T. Turgeon
Date: 02/28/23

14 Theresa St.
East Longmeadow, MA 01028
Amount: $301,000
Buyer: Valerie Keller
Seller: RL&LL Pasquale IRT
Date: 03/01/23

14 Van Dyke Road
East Longmeadow, MA 01028
Amount: $305,000
Buyer: Andre Harper
Seller: Erica Harp
Date: 02/27/23

35 Westernview Circle
East Longmeadow, MA 01028
Amount: $380,000
Buyer: Andrew J. Famiglietti
Seller: April S. Mills
Date: 03/02/23

GRANVILLE

1442 Main Road
Granville, MA 01034
Amount: $270,000
Buyer: Flavia Robotti
Seller: Secretary Of Housing & Urban
Date: 03/01/23

388 South Lane
Granville, MA 01034
Amount: $240,000
Buyer: Kokoleka RT
Seller: Joseph Walsh
Date: 03/02/23

HAMPDEN

37 Allen St.
Hampden, MA 01036
Amount: $238,000
Buyer: David Chapdelaine
Seller: Chapdelaine Realty Inc.
Date: 02/23/23

83 Allen St.
Hampden, MA 01036
Amount: $170,000
Buyer: Guy Libiszewski
Seller: Gary A. Baribeau IRT
Date: 02/23/23

119 East Longmeadow Road
Hampden, MA 01036
Amount: $380,000
Buyer: Samuel Loretta
Seller: Robert Gossman
Date: 02/24/23

44 Hollow Road
Hampden, MA 01036
Amount: $652,000
Buyer: Maxwell R. Fisk
Seller: David A. Proulx
Date: 03/02/23

601 Main St.
Hampden, MA 01036
Amount: $350,000
Buyer: Aaron C. Pitrat
Seller: Jeanne A. McKenna
Date: 02/28/23

33 North Monson Road
Hampden, MA 01036
Amount: $425,000
Buyer: Gerald J. Tessier
Seller: Pamela B. Courtney
Date: 02/21/23

HOLLAND

5 Inlet Dr.
Holland, MA 01521
Amount: $340,000
Buyer: James Votzakis
Seller: Daniel Burns
Date: 02/24/23

HOLYOKE

5 Adams St.
Holyoke, MA 01040
Amount: $1,319,930
Buyer: High Apartments LLC
Seller: 33 34 Van Cort LLC
Date: 03/03/23

323 Elm St.
Holyoke, MA 01040
Amount: $280,000
Buyer: Victoria Delia
Seller: Amelia Serrano
Date: 02/21/23

54 Gates St.
Holyoke, MA 01040
Amount: $189,987
Buyer: Francis Yarra
Seller: Varakas RT
Date: 02/23/23

688 High St.
Holyoke, MA 01040
Amount: $1,092,570
Buyer: High Apartments LLC
Seller: 688 High LLC
Date: 03/03/23

20 Highland Ave.
Holyoke, MA 01040
Amount: $235,000
Buyer: Leslie Decristofaro
Seller: Daniel P. McCavick
Date: 02/24/23

24-26 Sydney Ave.
Holyoke, MA 01040
Amount: $210,000
Buyer: Michael Dion
Seller: Moore, Sarah Mary, (Estate)
Date: 02/22/23

LONGMEADOW

29 Crescent Road
Longmeadow, MA 01106
Amount: $357,000
Buyer: Daniel J. Avissato
Seller: John M. Kirkpatrick
Date: 02/24/23

901 Frank Smith Road
Longmeadow, MA 01106
Amount: $385,000
Buyer: Antonio M. Fonseca
Seller: Torff, Sora K., (Estate)
Date: 03/02/23

58 Hazardville Road
Longmeadow, MA 01106
Amount: $240,000
Buyer: Buffalo LLC
Seller: Robert D. Spaulding LT
Date: 03/02/23

83 Longfellow Dr.
Longmeadow, MA 01106
Amount: $412,295
Buyer: Lakeview Loan Servicing
Seller: Christina A. Knybel
Date: 02/27/23

33 Williston Dr.
Longmeadow, MA 01106
Amount: $506,000
Buyer: Adam A. Berg
Seller: John M. Riordan
Date: 02/28/23

LUDLOW

39 Chapin St.
Ludlow, MA 01056
Amount: $395,000
Buyer: Dequan R. Thompson
Seller: James R. Carvalho
Date: 03/01/23

441 Chapin St.
Ludlow, MA 01056
Amount: $230,000
Buyer: Vincent Serrazina
Seller: Martins, Maria C., (Estate)
Date: 03/01/23

26 Grant St.
Ludlow, MA 01056
Amount: $258,000
Buyer: Jeffrey Converse
Seller: Christopher Dynak
Date: 02/23/23

434 Miller St.
Ludlow, MA 01056
Amount: $349,000
Buyer: Alyssa L. Santucci
Seller: Todd M. Nareau
Date: 02/22/23

73 Napoleon Ave.
Ludlow, MA 01056
Amount: $284,900
Buyer: Samuel Pettinger
Seller: Edward L. Lafromboise
Date: 02/28/23

97 Turning Leaf Road
Ludlow, MA 01056
Amount: $179,900
Buyer: Robert Sullivan
Seller: Whitetail Wreks LLC
Date: 02/28/23

96 Yale St.
Ludlow, MA 01056
Amount: $228,900
Buyer: Katie E. Czarniecki
Seller: Arturo Aguillon
Date: 03/03/23

MONSON

36 Main St.
Monson, MA 01057
Amount: $395,000
Buyer: Carol J. Damico
Seller: Real Estate Investment Northeast
Date: 03/03/23

20 Thayer Road
Monson, MA 01057
Amount: $210,000
Buyer: Rehab Home Buyers LLC
Seller: Eric R. Meffen
Date: 03/03/23

114 Upper Palmer Road
Monson, MA 01057
Amount: $301,000
Buyer: Mark W. Anderton
Seller: Alexus Bolanos
Date: 03/02/23

4 Zuell Hill Road
Monson, MA 01057
Amount: $350,000
Buyer: Eugene H. Stroh
Seller: Brandi M. Kane
Date: 03/01/23

PALMER

364-368 Boston Road
Palmer, MA 01069
Amount: $170,000
Buyer: Justin T. Benoit
Seller: Joshua R. Benoit
Date: 02/23/23

Bridge St., Lot A1
Palmer, MA 01069
Amount: $425,000
Buyer: Demon Deacon Realty LLC
Seller: Mortgage Realty LLP
Date: 02/24/23

Bridge St., Lot A2
Palmer, MA 01069
Amount: $425,000
Buyer: Demon Deacon Realty LLC
Seller: Mortgage Realty LLP
Date: 02/24/23

5 Deborah St.
Palmer, MA 01069
Amount: $160,000
Buyer: Kendrick S. McKee
Seller: Mary R. Laviolette
Date: 03/02/23

17 Lathrop St.
Palmer, MA 01069
Amount: $120,000
Buyer: Michael R. Larzazs
Seller: Gary M. Larzazs
Date: 03/03/23

1382-1388 Main St.
Palmer, MA 01069
Amount: $425,000
Buyer: Demon Deacon Realty LLC
Seller: Mortgage Realty LLP
Date: 02/24/23

116 Nipmuck St.
Palmer, MA 01069
Amount: $557,000
Buyer: Theodore A. Mora
Seller: Terence A. Blair
Date: 02/28/23

45-47 South St.
Palmer, MA 01080
Amount: $302,000
Buyer: Manuel S. Puyen-Roche
Seller: Kendrick S. McKee
Date: 03/02/23

1140 Thorndike St.
Palmer, MA 01069
Amount: $925,000
Buyer: Admass 4 LLC
Seller: Gary Wolf
Date: 03/01/23

53 Vicardav Ave.
Palmer, MA 01069
Amount: $391,000
Buyer: Jemima Boating
Seller: Marisol Aponte
Date: 03/03/23

21 Wilbraham St.
Palmer, MA 01069
Amount: $320,000
Buyer: Ham Ivestment Realty LLC
Seller: Edward R. Greenbaum
Date: 02/24/23

SPRINGFIELD

49 Ambrose St.
Springfield, MA 01109
Amount: $238,000
Buyer: Jesse D. Freeman
Seller: Samantha E. Hahn-Clark
Date: 02/24/23

1060 Bay St.
Springfield, MA 01109
Amount: $1,875,000
Buyer: National Retail Properties LP
Seller: Oliver Auto Body Realco
Date: 02/24/23

47 Beauregard St.
Springfield, MA 01151
Amount: $230,000
Buyer: Yuranis Hernandez
Seller: Rebecca Stratos
Date: 03/02/23

28 Birch Glen Road
Springfield, MA 01119
Amount: $230,000
Buyer: Jesus Vazquez
Seller: Sean M. Geaghan
Date: 02/21/23

141 Birchland Ave.
Springfield, MA 01119
Amount: $284,000
Buyer: William A. MacKinnon
Seller: Adam M. Provost
Date: 02/24/23

70 Canterbury Road
Springfield, MA 01118
Amount: $240,000
Buyer: David R. Kern
Seller: Melro Associates Inc.
Date: 02/28/23

16 Carlisle St.
Springfield, MA 01109
Amount: $212,900
Buyer: Chris D. Feliz
Seller: Waiwai RT
Date: 02/24/23

80 Carnavon Circle
Springfield, MA 01109
Amount: $215,000
Buyer: Marcus A. Starks
Seller: Thomas J. Garvey
Date: 02/23/23

145 Chapin Ter.
Springfield, MA 01107
Amount: $290,000
Buyer: Sheyla Acosta-Rosario
Seller: Ana Andino
Date: 02/22/23

16-18 Cherry St.
Springfield, MA 01105
Amount: $300,000
Buyer: Hector L. Vazquez-Mejia
Seller: Jmx Ii TR
Date: 03/01/23

657 Cooley St.
Springfield, MA 01128
Amount: $245,000
Buyer: Pamela Bryant
Seller: BHR Properties LLC
Date: 03/01/23

5 County St.
Springfield, MA 01109
Amount: $160,000
Buyer: Ernest Rental LLC
Seller: Fallah Razzak
Date: 02/28/23

597-615 Dickinson St.
Springfield, MA 01108
Amount: $475,000
Buyer: MSH Properties LLC
Seller: Rizvan A. Merza
Date: 03/02/23

256 Draper St.
Springfield, MA 01108
Amount: $205,000
Buyer: Meghan L. Tolley
Seller: Lamoureux, Mirjam, (Estate)
Date: 02/24/23

20 Drexel St.
Springfield, MA 01104
Amount: $191,500
Buyer: Dnepro Properties LLC
Seller: Patrick R. Meade
Date: 02/22/23

135 Dubois St.
Springfield, MA 01151
Amount: $220,000
Buyer: Joshua Romer
Seller: Bay Flow LLC
Date: 03/03/23

23-25 Edgewood St.
Springfield, MA 01109
Amount: $306,000
Buyer: Wilfredo Gonzalez
Seller: Alexander L. Freire
Date: 02/24/23

35 Eton St.
Springfield, MA 01108
Amount: $305,000
Buyer: Narya N. Waring
Seller: Platinum Homes LLC
Date: 02/22/23

47 Fenwick St.
Springfield, MA 01109
Amount: $255,000
Buyer: Jacqueline A. Ferguson
Seller: Philip Panidis
Date: 03/02/23

25 Ferncliff Ave.
Springfield, MA 01119
Amount: $220,000
Buyer: Smails LLC
Seller: Funai, Pauline Agnes, (Estate)
Date: 03/03/23

131 Florida St.
Springfield, MA 01109
Amount: $615,000
Buyer: SRK Realty LLC
Seller: BTS Realty LLC
Date: 03/01/23

37 Forest St.
Springfield, MA 01108
Amount: $170,000
Buyer: Rehab Home Buyers LLC
Seller: Joseph M. Santaniello
Date: 02/22/23

242 Fort Pleasant Ave.
Springfield, MA 01108
Amount: $550,000
Buyer: Daviau & Robert Properties LLC
Seller: Opus Durum LLC
Date: 02/27/23

98 Gatewood Road
Springfield, MA 01119
Amount: $275,000
Buyer: Bhavinibahen R. Patel
Seller: Eduardo Quinteros
Date: 03/01/23

259 Gillette Ave.
Springfield, MA 01118
Amount: $147,000
Buyer: Sarah A. Sypek
Seller: Andrea J. Dangelo
Date: 03/03/23

35 Helberg Road
Springfield, MA 01128
Amount: $295,000
Buyer: Alexandra Hamilton
Seller: Alexis W. Bradley
Date: 02/24/23

62 Homestead Ave.
Springfield, MA 01151
Amount: $161,000
Buyer: Robert Bearce
Seller: David W. Bearce
Date: 02/28/23

43 Hudson St.
Springfield, MA 01118
Amount: $280,000
Buyer: Mariel D. Toeo
Seller: Wicked Deals LLC
Date: 02/28/23

150 Jamaica St.
Springfield, MA 01119
Amount: $385,000
Buyer: James E. Menard
Seller: W. P. Lemieux
Date: 03/03/23

77 Johnson St.
Springfield, MA 01108
Amount: $335,000
Buyer: Michael A. Raiford
Seller: Round Two LLC
Date: 02/23/23

282-286 Main St.
Springfield, MA 01105
Amount: $300,000
Buyer: Elona Capital LLC
Seller: Wamhkm LLC
Date: 02/21/23

76 Marble St.
Springfield, MA 01105
Amount: $250,000
Buyer: Real Estate Investments Northeast
Seller: Real Estate Investments Northeast LLC
Date: 03/02/23

36 McBride St.
Springfield, MA 01104
Amount: $218,000
Buyer: Julio Rodriguez
Seller: Charles Elfman
Date: 02/28/23

94 Monmouth St.
Springfield, MA 01109
Amount: $345,000
Buyer: Jose Nunez
Seller: Uziel Q. Martinez-Barrios
Date: 02/27/23

181 Newton Road
Springfield, MA 01118
Amount: $305,000
Buyer: Justin L. Deconti
Seller: Keith O. Davies
Date: 02/24/23

200 Newton Road
Springfield, MA 01118
Amount: $300,000
Buyer: Keith O. Davies
Seller: Natalie A. Jurgen TR
Date: 02/24/23

30 Norman St.
Springfield, MA 01104
Amount: $145,000
Buyer: Martha Victorio
Seller: Carmen Pabon
Date: 02/22/23

121-123 Orange St.
Springfield, MA 01108
Amount: $298,000
Buyer: Gabriel Rodriguez
Seller: Panther Development LLC
Date: 03/03/23

36 Orleans St.
Springfield, MA 01109
Amount: $130,000
Buyer: Ali H. Abdraba
Seller: Natixis Real Estate Capital TR 2007-He2
Date: 02/23/23

1698 Parker St.
Springfield, MA 01128
Amount: $295,000
Buyer: Scott J. Heim
Seller: Michael Stewart
Date: 02/28/23

173 Pendleton Ave.
Springfield, MA 01109
Amount: $143,000
Buyer: Isidoro R. Sanchez
Seller: Pah Properties LLC
Date: 02/23/23

296 Quincy St.
Springfield, MA 01109
Amount: $190,000
Buyer: Ileana C. Rodriguez
Seller: London Realty LLC
Date: 02/21/23

75 Rowland St.
Springfield, MA 01107
Amount: $230,000
Buyer: Jennifer M. Reyes
Seller: Julian Navarro
Date: 02/22/23

75 Saffron Circle
Springfield, MA 01129
Amount: $181,000
Buyer: Zachary Yacteen
Seller: Lazetta McCoy
Date: 02/24/23

160 Shady Brook Lane
Springfield, MA 01118
Amount: $269,000
Buyer: Dustin Marchinkoski
Seller: Heather M. Leone
Date: 02/24/23

128 Shawmut St.
Springfield, MA 01108
Amount: $282,000
Buyer: Arista M. Parillo
Seller: Andrew Famiglietti
Date: 03/02/23

1017-1019 Sumner Ave.
Springfield, MA 01108
Amount: $336,000
Buyer: Abdi Adan
Seller: Lil As Property Mgmt. LLC
Date: 02/24/23

151 Switzer Ave.
Springfield, MA 01109
Amount: $220,000
Buyer: Patricia D. McKenzie
Seller: Silversnake Properties LLC
Date: 03/03/23

135 Tavistock St.
Springfield, MA 01119
Amount: $169,900
Buyer: Belinda L. Wilson
Seller: Zachary D. Vollinger
Date: 02/24/23

85 Upland St.
Springfield, MA 01104
Amount: $215,000
Buyer: Altagracia F. Torres
Seller: Krzysztof Letowski
Date: 03/01/23

113 Vermont St.
Springfield, MA 01108
Amount: $550,000
Buyer: Sunflower Property Inc.
Seller: STV Realty LLC
Date: 03/03/23

188 Wachusett St.
Springfield, MA 01118
Amount: $225,000
Buyer: Amelia Serrano
Seller: Z. I. Sanabria-Rodriguez
Date: 02/21/23

64-66 Wallace St.
Springfield, MA 01119
Amount: $245,000
Buyer: Erick C. Weber
Seller: Ramon Rivera
Date: 03/01/23

64-66 Wallace St.
Springfield, MA 01119
Amount: $134,000
Buyer: Ramon Rivera
Seller: Thomas L. Bretta
Date: 03/01/23

31 Washburn St.
Springfield, MA 01107
Amount: $225,000
Buyer: Jovanny Cartagena
Seller: JJJ17 LLC
Date: 02/28/23

211 Wilbraham Road
Springfield, MA 01109
Amount: $215,000
Buyer: Luis J. Cabreja-Hidalgo
Seller: Janet Davidson
Date: 02/24/23

48 Wilmont St.
Springfield, MA 01108
Amount: $279,900
Buyer: Jason Stallone
Seller: Cindy Guzman
Date: 02/21/23

1403 Worcester St.
Springfield, MA 01151
Amount: $178,970
Buyer: Truman 2016 SC6 Title TR
Seller: Darryl Leclair
Date: 03/01/23

SOUTHWICK

94 Foster Road
Southwick, MA 01077
Amount: $800,000
Buyer: Baker Commodities Inc.
Seller: Plakias Real Estate Holdings LLC
Date: 02/28/23

61 Hastings Road
Southwick, MA 01077
Amount: $128,000
Buyer: Pah Properties LLC
Seller: PHH Mortgage Corp.
Date: 02/28/23

2 Tall Pines Trail
Southwick, MA 01077
Amount: $620,000
Buyer: Anthony Kruge
Seller: Hamelin Framing Inc.
Date: 03/01/23

WESTFIELD

630 East Mountain Road
Westfield, MA 01085
Amount: $255,000
Buyer: Michael Pelc
Seller: Mary A. Fravesi
Date: 02/28/23

1214 East Mountain Road
Westfield, MA 01085
Amount: $310,000
Buyer: Janelle Aieta
Seller: Matthew Pittenger
Date: 02/23/23

74 East Silver St.
Westfield, MA 01085
Amount: $308,000
Buyer: Cariel Lewis
Seller: Johnathan Spear
Date: 02/28/23

33 Fowler Ave.
Westfield, MA 01085
Amount: $283,000
Buyer: Kevin Suffriti
Seller: Cody Livingston
Date: 02/28/23

12 Grand St.
Westfield, MA 01085
Amount: $235,750
Buyer: JLR Brothers Properties LLC
Seller: Marvon Construction & Development Inc.
Date: 03/02/23

46 Grandview Dr.
Westfield, MA 01085
Amount: $325,000
Buyer: Keith M. Evans
Seller: Mary-Louise Dazelle
Date: 02/24/23

27 Hampden St.
Westfield, MA 01085
Amount: $160,000
Buyer: Rene Gauthier
Seller: Nimchick Jr., Paul W., (Estate)
Date: 03/01/23

17 Lincoln St.
Westfield, MA 01085
Amount: $240,000
Buyer: Meyer Attias
Seller: Hing-Lun Chong
Date: 02/24/23

32 Montgomery St.
Westfield, MA 01085
Amount: $235,000
Buyer: Tatyana Mokan
Seller: Patricia Mahoney
Date: 02/24/23

114 Otis St.
Westfield, MA 01085
Amount: $245,000
Buyer: JLR Brothers Properties LLC
Seller: Marvon Construction & Development Inc.
Date: 03/02/23

155 Yeoman Ave.
Westfield, MA 01085
Amount: $185,000
Buyer: Damien Roberts
Seller: Jaret E. Bednaz
Date: 02/24/23

WILBRAHAM

22 Brainard Road
Wilbraham, MA 01095
Amount: $313,000
Buyer: Frank Kulig
Seller: Jennifer L. Gay
Date: 02/24/23

227 Burleigh Road
Wilbraham, MA 01095
Amount: $325,000
Buyer: Jennifer Danielson
Seller: Kathleen A. Farrell
Date: 02/27/23

7 Ladd Lane
Wilbraham, MA 01095
Amount: $427,000
Buyer: Nabil Tavarez
Seller: Bart Soar
Date: 02/27/23

1 Lee Lane
Wilbraham, MA 01095
Amount: $399,000
Buyer: Kathaleen Provost
Seller: Thomas S. Manzi
Date: 02/24/23

9 Red Bridge Road
Wilbraham, MA 01095
Amount: $200,000
Buyer: CRK Estates LLC
Seller: Gleason Realty Co. Under TR
Date: 02/24/23

444 Ridge Road
Wilbraham, MA 01095
Amount: $157,000
Buyer: Nathan D. Riddle
Seller: Alexandra Riddle
Date: 03/01/23

359 Springfield St.
Wilbraham, MA 01095
Amount: $410,000
Buyer: Kyle G. Beaudreault
Seller: John F. Tenczar
Date: 03/01/23

5 Squire Dr.
Wilbraham, MA 01095
Amount: $810,000
Buyer: Eamon Kearney
Seller: Grahams Construction Inc.
Date: 03/01/23

945 Tinkham Road
Wilbraham, MA 01095
Amount: $338,000
Buyer: Peter W. Chiumiento
Seller: Michael Pope
Date: 02/24/23

WEST SPRINGFIELD

29 Clara St.
West Springfield, MA 01089
Amount: $275,000
Buyer: Margaret F. Desmarais
Seller: Jerome D. McCarthy
Date: 02/28/23

49-51 Prospect Ave.
West Springfield, MA 01089
Amount: $400,000
Buyer: Sandy E. Romero-Leones
Seller: Barbara D. Theroux
Date: 02/28/23

80 Riverdale St.
West Springfield, MA 01089
Amount: $158,500
Buyer: Fatima Apartments LLC
Seller: Wells Fargo Bank
Date: 03/02/23

40 Riverview Ave.
West Springfield, MA 01089
Amount: $575,000
Buyer: Jacob Hannoush
Seller: Danielle R. Deangelo
Date: 02/28/23

64 Roanoke Ave.
West Springfield, MA 01089
Amount: $1,110,800
Buyer: 64 Roanoke LLC
Seller: Horsesandhouses LLC
Date: 03/03/23

Sand Hill Road
West Springfield, MA 01089
Amount: $300,000
Buyer: Amanda R. Putnam
Seller: B9 Industries Inc.
Date: 02/24/23

2383 Westfield St.
West Springfield, MA 01089
Amount: $147,900
Buyer: Grey Horse Holdings Inc.
Seller: Heidi TR
Date: 03/01/23

21 Worcester St.
West Springfield, MA 01089
Amount: $232,000
Buyer: Jonathan Pignataro
Seller: Katelyn M. Crogan
Date: 03/01/23

HAMPSHIRE COUNTY

AMHERST

32 Aubinwood Road
Amherst, MA 01002
Amount: $668,000
Buyer: McColpin & Archer FT
Seller: Terry, Linda L., (Estate)
Date: 03/02/23

429 Henry St.
Amherst, MA 01002
Amount: $735,000
Buyer: Scott C. Fleener
Seller: Victoria Risk
Date: 03/03/23

8 Hillcrest Place
Amherst, MA 01002
Amount: $475,000
Buyer: Justin C. Ching
Seller: Wolnik, Walter Joseph, (Estate)
Date: 02/24/23

100 Larkspur Dr.
Amherst, MA 01002
Amount: $650,000
Buyer: Danielle Orchard
Seller: Magdalena Olive
Date: 03/01/23

1611 South East St.
Amherst, MA 01002
Amount: $960,000
Buyer: John & Deborah May FT
Seller: David R. Buchanan RET
Date: 03/03/23

179 Wildflower Dr.
Amherst, MA 01002
Amount: $810,500
Buyer: C. E. Kindervatter-Clark
Seller: Christina Weston-Smith
Date: 03/01/23

BELCHERTOWN

170 Metacomet St.
Belchertown, MA 01007
Amount: $355,000
Buyer: Benjamin L. Wilder
Seller: Gary Stones Remodeling LL
Date: 03/01/23

212 Rockrimmon St.
Belchertown, MA 01007
Amount: $339,000
Buyer: Garrett R. Demers
Seller: Carol A. Griffeth
Date: 02/22/23

13 Sargent St.
Belchertown, MA 01007
Amount: $335,000
Buyer: Kristopher J. Ventura
Seller: Thomas W. McRae
Date: 03/03/23

5 Woodland Lane
Belchertown, MA 01007
Amount: $500,000
Buyer: George Harp
Seller: Andrey Korchevskiy
Date: 02/28/23

CHESTERFIELD

1 River Road
Chesterfield, MA 01012
Amount: $429,000
Buyer: Matthew C. Pittenger
Seller: Charlotte Summers
Date: 02/24/23

EASTHAMPTON

6 Doody Ave.
Easthampton, MA 01027
Amount: $299,900
Buyer: Yesenia L. Hostetter
Seller: Gerard McCook
Date: 02/23/23

233 Loudville Road
Easthampton, MA 01027
Amount: $529,900
Buyer: Margaret Kaiser
Seller: New England Remodeling
Date: 03/03/23

16 Lyman St.
Easthampton, MA 01027
Amount: $535,000
Buyer: Elizabeth R. Lebling
Seller: Cheryl A. Thomas-Camp
Date: 03/02/23

GOSHEN

5-B Wildwood Lane
Goshen, MA 01032
Amount: $142,000
Buyer: Julia Shippee
Seller: Jared D. Mallet
Date: 03/02/23

GRANBY

213 Amherst St.
Granby, MA 01033
Amount: $125,525
Buyer: Walter Frederics
Seller: Ievgenii Gusiev
Date: 02/24/23

26 Baggs Hill Road
Granby, MA 01033
Amount: $335,000
Buyer: Josh E. Dufresne
Seller: Easton, Ronald W., (Estate)
Date: 02/28/23

3 Sherwood Dr.
Granby, MA 01033
Amount: $230,000
Buyer: David Scott
Seller: Marc A. Cormier
Date: 02/24/23

14 Sherwood Dr.
Granby, MA 01033
Amount: $254,750
Buyer: Bridger R. Neveu
Seller: Ervin G. Meimerstorf
Date: 02/22/23

HADLEY

7 Hadley Place
Hadley, MA 01035
Amount: $460,000
Buyer: Tuan Nguyen
Seller: Marilyn R. Murphy
Date: 03/03/23

303 Russell St.
Hadley, MA 01035
Amount: $837,500
Buyer: Bar Hadley LLC
Seller: 303 Russell Street LLC
Date: 03/02/23

305 Russell St.
Hadley, MA 01035
Amount: $500,000
Buyer: Bar Hadley LLC
Seller: Frontage Inc.
Date: 03/02/23

315 Russell St.
Hadley, MA 01035
Amount: $3,000,000
Buyer: Bar Hadley LLC
Seller: 315 Russell Street LLC
Date: 03/02/23

HATFIELD

1 Elm St.
Hatfield, MA 01038
Amount: $325,000
Buyer: 1 Elm Street Property LLC
Seller: John M. Holhut
Date: 02/28/23

HUNTINGTON

210 Worthington Road
Huntington, MA 01050
Amount: $374,125
Buyer: Sharon French
Seller: Noel W. Kenney
Date: 02/24/23

NORTHAMPTON

12 Drewsen Dr.
Northampton, MA 01062
Amount: $323,500
Buyer: Heather M. Goodenough
Seller: Amanda B. Ashton
Date: 02/22/23

30 Powell St.
Northampton, MA 01062
Amount: $341,500
Buyer: Patricia L. Sipe
Seller: Jeffrey R. Vanasse
Date: 02/23/23

92 Sandy Hill Road
Northampton, MA 01062
Amount: $168,750
Buyer: Michael W. O’Brien
Seller: Christine M. O’Brien
Date: 02/27/23

12 Vernon St.
Northampton, MA 01060
Amount: $510,000
Buyer: Michele L. Ruschhaupt
Seller: Thomas E. Borawski
Date: 02/27/23

PLAINFIELD

426 West Main St.
Plainfield, MA 01070
Amount: $143,151
Buyer: Stanwich Mortgage Loan TR
Seller: Michele L. Bagdonas
Date: 02/21/23

615 West Main St.
Plainfield, MA 01070
Amount: $256,000
Buyer: Mystie Ford
Seller: Michael J. Slocum
Date: 03/03/23

SOUTH HADLEY

26 Alvord St.
South Hadley, MA 01075
Amount: $485,000
Buyer: Jane K. Weakley
Seller: David R. Adams
Date: 03/03/23

15 Chileab Road
South Hadley, MA 01075
Amount: $420,000
Buyer: Steven Segore
Seller: Lowell W. Gudmundson
Date: 02/24/23

29 Fairlawn St.
South Hadley, MA 01075
Amount: $320,000
Buyer: Joseph E. Tavares
Seller: Robert E. Grammo
Date: 03/02/23

24-28 Gaylord St.
South Hadley, MA 01075
Amount: $7,150,000
Buyer: Hadley Gaylord LLC
Seller: Wbcmt 2007-C33 Gaylord St.
Date: 03/01/23

28 Lawn St.
South Hadley, MA 01075
Amount: $380,000
Buyer: Phillip A. Brecher
Seller: Lee R. Savage
Date: 02/27/23

1 Lesperance Court
South Hadley, MA 01075
Amount: $160,000
Buyer: Michael Cowan
Seller: Robert J. Schroeter
Date: 02/24/23

126 Main St.
South Hadley, MA 01075
Amount: $265,000
Buyer: South Hadley Falls LLC
Seller: Barbara J. Knightly
Date: 02/28/23

7 Prospect St.
South Hadley, MA 01075
Amount: $7,150,000
Buyer: Hadley Gaylord LLC
Seller: Wbcmt 2007-C33 Gaylord St.
Date: 03/01/23

41 South St.
South Hadley, MA 01075
Amount: $137,000
Buyer: Jose M. Buscan
Seller: Lsrmf MH Master Part TR
Date: 02/27/23

SOUTHAMPTON

11 Cold Spring Road
Southampton, MA 01073
Amount: $350,000
Buyer: Thomas S. Avila
Seller: Joseph T. Moynahan LT
Date: 02/28/23

373 College Hwy.
Southampton, MA 01073
Amount: $605,000
Buyer: Vitaly Divnich
Seller: Mathieu J. Tebo
Date: 02/28/23

82 Crooked Ledge Road
Southampton, MA 01073
Amount: $548,000
Buyer: Eugene R. Labrie
Seller: Robin B. Buckingham
Date: 03/02/23

10 Susan Dr.
Southampton, MA 01073
Amount: $475,000
Buyer: Daniel Phillips
Seller: K. J. & Jill M. Malo
Date: 02/24/23

WARE

107 Church St.
Ware, MA 01082
Amount: $245,000
Buyer: Claire C. Purgus
Seller: Stephen M. Burns
Date: 02/28/23

39 Homecrest Ave.
Ware, MA 01082
Amount: $225,000
Buyer: Katherine M. Sarrasin
Seller: Karl A. Beaumier
Date: 03/01/23

WILLIAMSBURG

52 Briar Hill Road
Williamsburg, MA 01096
Amount: $171,500
Buyer: Jameson Conz
Seller: Gloria I. Cross
Date: 03/03/23

WORTHINGTON

567 Huntington Road
Worthington, MA 01098
Amount: $137,000
Buyer: Albert G. Nugent
Seller: Albert G. Nugent
Date: 02/21/23

New Accounting Standards Impact Business Leases for 2022

Banking and Financial Services

Details, Details

By Matthew Nash, CPA

The implementation of the Financial Accounting Standards Board’s (FASB) new lease accounting standard, ASC 842, presents a major challenge for companies that produce financial statements under Generally Accepted Accounting Principles (GAAP).

Matthew Nash

After almost seven years since the release of Accounting Standards Update (ASU) 2016-02 in February 2016, these organizations must now work toward implementing ASC 842 for the 2022 fiscal year. This article will provide an overview of the key changes that need to be made in order to ensure compliance with the new lease-accounting standard.

What Is ASC 842?

This standard intends to provide visibility on a company’s capital needs and obligations, improve consistency in financial-statement presentation, provide enhanced disclosures to the readers of the financial statements, and improve the comparability of lease practices across entities and industries.

Under the new standard, lessees are required to account operating leases with terms longer than 12 months on the balance sheet, resulting in the recognition of a right-of-use asset and the corresponding liability. Under the previous standard, ASC 840, the only leases that were required to be accounted for on the balance sheet were capital leases, which are now referred to as finance leases under ASC 842. Prior to ASC 842, operating leases required disclosure only in the notes to the financial statements.

Lessor accounting practices remain largely unchanged from ASC 840 to 842.

What Qualifies as a Lease Under ASC 842?

To better understand the new lease standard, you must first understand the definition of a lease. A lease is defined as the contract, or part of a contract, that conveys the right to control the use of an identified property, plant, or equipment for a period of time in exchange for consideration.

To simplify this definition, a lease is a physical asset that a company has the right to direct the use of for economic benefit. The most common examples of leases are office space, machinery, vehicles, equipment, and land.

What Steps Should Companies Take to Prepare?

To prepare for adoption of this standard, companies first need to account for all their existing leases and thoroughly review the contracts to determine whether they include an operating or a finance lease.

Do You Have an Operating Lease or Finance Lease?

If the lease meets any of the following criteria, it will be classified as a finance lease:

• Does the lease transfer ownership at the end of the lease term?

• Does the lease grant the lessee a right-to-purchase option that is lessee is reasonably certain to exercise?

• Is the lease term for the major part of the economic life of the underlying asset?

• Does the present value of the sum of lease payment and any residual value guaranteed by the lessee not reflected in the lease payments equal or exceed substantially all of the underlying asset’s fair value?

• Finally, is the underlying asset of such a specialized nature that it is not expected to have an alternative use to the lessor at the lease term end?

If the answer to all five of those questions is no, then the lease qualifies as an operating lease.

Lease Details

After concluding the lease type, it is time to dig into the lease details:

• When does the lease start?

• When does the lease end?

• Are there early termination or renewal options?

• Are there variable expenses related to the lease?

• What is the monthly cost of the lease?

The answer to all these questions is integral to the calculation of the asset and liability to be included in the financial statements. Once the total future lease obligation has been calculated, the obligation will be presently valued using one of three discount rate options. The newly recognized right-of-use asset and liability will then be amortized over the life of the lease, based on the lease type.

For income-statement purposes, operating leases will continue to be classified as lease expense, and finance leases will be split between amortization expense and interest expense.

Transition Methods

As part of the initial adoption of the new lease standard, there are certain practical expedients that can be adopted to help make the transition easier. Companies are not required to assess existing lease classifications. Existing operating leases with terms extending beyond 12 months will be included on the balance sheet effective Jan. 1, 2022, the date of required adoption. Existing capital leases will continue to be included with property, plant, and equipment, and will be amortized over the remaining life of the lease.

Financial-statement Disclosure Impacts

Aside from the impact on the balance sheet, the standard will also provide enhanced disclosures in the notes to the financial statements. The required disclosure will include qualitative and quantitative disclosures, including descriptions of the existing leases, disclosure of lease expenses as included in the income statement, cash paid for leases during the current year, new right-of-use assets obtained through operating and finance leases, weighted average of discount rate used to present value the lease obligation, and the maturity analysis disclosing the future obligations to be paid.

In Conclusion

The new lease standard is expected to have the biggest impact on those companies with a large volume of real-estate leases that have previously been required to be disclosed only in the footnotes to the financial statements. The overall expectation is that most companies with leases will see some impact related to the adoption of the new standard. Because the new standard has a balance-sheet impact, it is recommended that all companies review any financial covenants and proactively work with financial institutions to consider whether amendments to covenants may be required.

There are many intricacies within the new lease standard, and it will be a learning process for all of those involved in preparing their company’s financial statements. The best thing a company can do is take the time to make sure that they fully understand how each lease is written, and to have an open dialogue with their CPA.

Matthew Nash, CPA is a senior manager at the Holyoke-based accounting firm Meyers Brothers Kalicka, P.C.; (413) 536-8510.

It Pays to Have a Healthy Dose of Skepticism

Wealth Management

ESG Investing

By Josh Bedell, CFP, CIMA and Sylvia Callan, CFA

As with any new investment trend, a rise in popularity can give way to bad actors.

ESG (environmental, social, and governance) investing is not immune. Recent articles from the Economist, Barron’s, and the Wall Street Journal focus on the rise of ESG investing, and the perhaps predictable attempt by some to capitalize on this trend in a disingenuous and unscrupulous manner.

However, they leave investors who are socially conscious without a way forward in seeking to decipher the good from the bad.

The need couldn’t be more pressing, with ESG investing slated to rival traditional forms of investing in the next several years. With this potential surge in demand, concerns have arisen about how seriously the ESG criteria are being considered.

“Some mutual funds and portfolio managers have taken to slapping an ESG title on a fund or portfolio without doing much of anything to truly incorporate ESG factors into the investment process. This practice of attempting to woo well-intentioned investors, while not actually striving for change, has even earned a sardonic title: ‘greenwashing.’”

Indeed, some mutual funds and portfolio managers have taken to slapping an ESG title on a fund or portfolio without doing much of anything to truly incorporate ESG factors into the investment process. This practice of attempting to woo well-intentioned investors, while not actually striving for change, has even earned a sardonic title: ‘greenwashing.’

Josh Bedell

Sylvia Callan

The good news is that the SEC has taken notice, and has proposed some rules that would create consistent standards and disclosure requirements. In addition, the Principles for Responsible Investing (PRI), a globally recognized institution for sustainable investing, tracks the development of regulatory policies in sustainable finance that support ESG investment principles. Over the past year alone, the PRI identified more than 200 new or revised policy instruments that support, encourage, or require investors to consider long-term value drivers in ESG — the main elements of socially responsible investing.

Understanding the evolving landscape in ESG can feel like a daunting task, especially if you have many other things on your plate, like a job, family, and normal day-to-day responsibilities. The good news is, there are some relatively easy steps investors can take to ensure their portfolio aligns with their values.

For starters, mutual-fund families that focus exclusively on ESG and/or socially responsible investment (SRI) funds are more likely to utilize stringent criteria than a traditional fund family that has added one or two ESG funds in recent years. Further, actively managed funds, which incorporate at least some degree of qualitative analysis, tend to evaluate companies more thoroughly than index funds, which simply track a list of ‘approved’ holdings from a third party, though there are exceptions.

Investors without the time or inclination to do this research on their own can turn to a trusted asset manager who takes ESG investing seriously. Dedicated ESG portfolio managers do extensive work in the field, often talking to mutual-fund managers directly, visiting corporate offices, analyzing lists of underlying holdings, and obtaining advanced credentials related to ESG investing.

Ultimately, it pays to have a healthy dose of skepticism. It certainly helped our firm when we decided to offer an ESG strategy for our clients. It required an added layer of scrutiny to ensure that ESG investment principles were clearly defined, closely monitored, and reported in a timely manner.

It could be an encouraging sign that increasing numbers of investors are seeking to effect positive change while also generating competitive — or possibly even superior — returns. A shift of this magnitude is bound to encounter some hiccups along the way.

Far from a reason to abandon the initiative altogether, greenwashing concerns offer an opportunity to further investor engagement, advance regulatory reform, and promote endeavors to improve ESG reporting and investing standards with the potential to benefit us all.

Josh Bedell is a financial planner and investment advisor, and Sylvia Callan is a portfolio manager, for Gage-Wiley. Callan has earned the CFA Institute certificate in ESG investing and leads the firm’s ESG efforts. Securities offered through St. Germain Securities Inc., a FINRA member. Gage Wiley is a d/b/a of St. Germain Securities Inc.

Using History as Our Guide

Wealth Management

It Shows That Our Pain May Be Followed by Some Gains

By Jeff Liguori

According to Google searches, the popularity of the term ‘inflation’ hit its highest peak in at least five years during the second week of August of last year.

Jeff Liguori

For the sake of comparison, the term ‘stock market’ is one of the more popular Google searches. On average, ‘stock market’ is three times more popular than ‘inflation.’ For further comparison, the search for ‘Lebron James’ is regularly much higher than ‘inflation,’ but still not quite as popular as ‘stock market’ on average. Yet, in August of last year, ‘inflation’ bested both terms, by a wide margin.

Higher consumer prices are causing anxiety. The Federal Reserve, with its dual mandate of full employment and low inflation, has been working to ease prices through higher interest rates, which led to weak performance in both stock and bond markets in 2022 — a rare phenomenon when both markets sell off in tandem.

When the Fed raises the federal funds rate, an interest rate that banks charge to one another for overnight lending, it has a ripple effect, putting upward pressure on all interest rates, from mortgages to treasury bills. In turn, all assets get ‘repriced’; stock prices adjust lower (usually) because higher rates often mean profit margins for those businesses shrink, which equates to a lower valuation for that company’s stock price. The repricing of assets has wide-ranging implications and is often disruptive to an economy.

Is the Fed acting appropriately? Wall Street, with no lack of varying opinions, either believes the Fed has overstepped by tightening too quickly and too late, or the Fed should be more aggressive in the next two sessions and then be done. Finding an economist or strategist that thinks Jerome Powell and his crew are precisely doing the right thing is nearly impossible.

Instead of opining on the Fed’s actions — I’m not an economist, more of an ‘investment historian’ — let’s put the discussion in the context of past cycles of rising inflation and what it might mean for investors.

From January 1966 to August 1969, the federal funds rate more than doubled from 4.5% to 10.25%, in what was then seen as aggressive action by the Fed to tame inflation. In August 1969, the Fed reversed course, cutting interest rates as the economy slowed and the country faced increasing job losses. To safeguard the economy, the Fed quickly went from raising to easing interest rates, moving the effective rate back to about 5% in March 1971, as unemployment started to tick up.

But the story doesn’t end there. Inflation was persistent even with a slowing economy because of a burgeoning energy crisis. Once again, the Fed moved to a tightening stance, this time increasing interest rates by more than 300% from the spring of 1971 to the summer of 1973. Interest rates skyrocketed, and stocks suffered badly, declining by more than 40% in the 14 months following the start of that new tightening cycle, before bottoming in October 1974.

Interestingly, interest rates remained historically elevated throughout the 1980s, but stocks managed to do quite well. From the low in October 1974, the S&P 500 had an impressive run until the tech meltdown in 2001, appreciating 460% into late 2000. The data is compelling.

Following the Fed pause in 1974, in 21 of the subsequent 28 years leading up to the tech bubble, stocks generated a positive annual return. The worst year was 1977, when the S&P was down 11.5%, and the best year was 1995, when the S&P 500 generated a positive 34% return. There were eight years in that three-decade stretch when stocks increased by more than 25%.

To put things in perspective: the federal funds rate increased from 2.25% to a peak of 14.3% from February 1971 to July 1974, a total increase of about 230%, a slow and steady move higher in that 40-month period. Beginning in March of last year, the Fed raised rates from a historic low of 0.08% to 4.75%. That may seem milder as the overall level of interest rates is still historically low, but consider the Fed took this action in 11 months, increasing rates by more than 5,000%.

Overall, 2022 was unprecedented, both in the dramatic measures by the Fed and the performance of financial markets. Bond and stock markets haven’t generated a negative return in the same calendar year in almost 60 years. And there has only been one other year since 1960 when bonds had a decline in value of more than 10%, in 2009; however, the stock market appreciated almost 26% that year as the country emerged from the 2008 Great Recession.

So, what if the Fed — irrespective of Wall Street opinions — is doing exactly what needs to be done? And what if the economy avoids a recession? And what if stock and bond prices have already adjusted for a recession that doesn’t materialize (or is mild)? If history is our guide, financial markets can produce healthy returns even in inflationary periods, after some initial pain.

The answer may be as simple as to ignore consensus. Be a contrarian. The pain to our portfolios over the past 18 months may be the first step to higher returns in the near future.

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.

How Landlords, Tenants Can Navigate the Commercial Market

Special Coverage Wealth Management

Commercial Real Estate

This Is Not a Fire Drill

By Brion J. Kirsch and James F. Martin

Remember in elementary school when they would have a planned fire drill? The alarm would go off, and students lined up in an orderly fashion and walked single file to the nearest exit and out into the schoolyard. Inside, the school was completely empty.

Brion J. Kirsch

James F. Martin

Obviously, the circumstances are light years apart, but that’s essentially what occurred in office buildings in March 2020. One minute, every room is filled with people working at their desks; next thing you know, the entire place is vacant.

What would always happen after the fire drill — everyone was back at their desks in about 10 minutes — didn’t happen in office buildings. It’s been almost three years. Some are never coming back.

Remote or hybrid work is here to stay, and people’s habits and expectations have changed. As a result, the commercial real-estate market is facing challenging times. In Western Mass., for example, the vacancy rate for office space is of concern to landlords along with the reality of expiring leases for downtown office space. However, the more attractive rental price per square foot of class-A office space in Western Mass. serves as a significant advantage to retaining and attracting tenants when coupled with the lower cost of living in contrast to Eastern and Central Mass.

Thus, there are some reasons for optimism, and potential options for landlords and tenants alike.

The continuing development of multi-family apartment complexes in both the cities and the suburbs is a promising sign. And with the proliferation of shopping from home and consumer subscription services, industrial properties like warehouses and fulfillment centers are in high demand.

Options for Tenants

For employers who now have more workspace than on-site workers, subleasing is an interesting option that can both reduce expenses and boost revenue. This requires a conversation with the landlord, but if conducted in good faith, it can be a win-win situation.

With a landlord’s consent, a majority of commercial office leases allow subleasing and partial assignments. But finding an occupant to sublease part of your space is far from the final step; legalities and practicalities abound. The documentation must be specific and thorough as there’s an extra added layer of complexity in these situations.

Taking a contractual agreement between two parties and adding a third opens up room for all sorts of unexpected conflict and misunderstandings. The language in the agreement must be crystal clear.

“With a landlord’s consent, a majority of commercial office leases allow subleasing and partial assignments. But finding an occupant to sublease part of your space is far from the final step; legalities and practicalities abound.”

The biggest concern is historic and/or prospective liability. One party’s transgression may have a direct impact on the other party, even if there is fault on only one side. Something else to consider is the construction of a demising wall for the new tenant’s subleased space. To be up to code, this new area will also need proper access, exits, and restrooms, in addition to other possible requirements, such as a kitchen or metered utilities.

Depending on the terms of the lease, there may even be an express option that simply allows for the reduction in the total area being occupied and would prevent the need to sublease.

Options for Landlords

There’s an opportunity now for landlords to make a long-term play by allowing tenants to make modifications to their original lease. The value in this circumstance arrives in the form of an early renewal or extension of the current lease, in exchange for allowing the tenant to sublease a portion of their space or shrink their footprint.

As many business owners have discovered in other industries, incentives are becoming a more crucial part of attracting customers or, in this case, tenants. And just because a space was previously used for one purpose, that doesn’t have to remain the case. Repurposing is an exciting and risky but sometimes necessary option.

Taking an empty office building and converting it to multi-family apartments or mixed-use commercial space is a large undertaking. But the strong demand for housing seems likely to continue, while office space continues on a more uncertain path.

While interest rates and the cost of construction materials both remain high, supply-chain issues are easing, and real-estate profits from the past decade have some property owners’ war chests well-stocked. It’s also likely that property values will begin to fall in the coming months and years.

It’s anyone’s guess how the current confusing climate of high inflation, low unemployment, rising interest rates, and massive tech layoffs will shake out in the coming years. Some say a recession is inevitable; others are optimistic one will be avoided. One thing we do know for sure is that we’re not in elementary school anymore. And this is not a drill.

Brion Kirsch and Jim Martin are attorneys at the law firm Pullman & Comley, which has offices in Connecticut, New York, and Rhode Island, as well as Springfield. Kirsch co-chairs the firm’s real estate, energy, environmental, and land use practice and practices in both Massachusetts and Connecticut; Jim Martin is located in the firm’s Springfield office and is a recognized practitioner in the areas of commercial real estate and real-estate planning.

How to Teach Your Teens and Young Adults About Money

By Contributor March 16, 2023

Learning Opportunities

By Barbara Trombley, MBA, CPA

One of my most frustrating issues with being a parent is the lack of school education regarding money and personal finance. My children were required to take history, trigonometry, English, and numerous other courses, but they were never required to take a class about personal finance. I would argue that this knowledge is just as important.

This oversight leaves the instruction about personal finance to parents, and many parents are not good with their own money, resulting in generational problems with financial matters.

How can we teach our kids to have good financial habits? What does that mean? Obviously, modeling good financial behavior is an obvious start. Have a budget and stick to it. Contribute regularly to a retirement plan. Do not be afraid to discuss money in front of your kids. Talk about your household income and household bills and how much of your paycheck goes to taxes, retirement savings, and your emergency fund. Discuss vacations, how much they cost, and how you are saving for them.

One of my favorite ways to involve my children in money talks was to take them with me to the grocery store. I would show them how to shop for generic items, compare unit costs and sizes of items, and use coupons. In general, we should take the stigma out of money discussions and make spending and saving discussions easier to have.

Discussions with your children are not the only way to teach them about good financial practices. Here is a list of eight ways to teach good financial habits.

• Let your teen earn money. They don’t need to get an actual job, although I would recommend this at some point. Your teen can work around the house, cut the grass, do odd jobs, etc. The idea is to get them used to managing their own money. Once they are regularly earning, you can teach them to set aside money for short-term saving (maybe to purchase a big item), long-term saving (maybe for college), and spending now. If they are receiving a paycheck, it is a great opportunity to discuss taxes and Social Security and Medicare withholdings.

• Open a bank account. It’s a great idea to have a child manage their own savings account. Many little ones start with a piggy bank for odd change. When the birthday or allowance money starts to accumulate, it is time for a bank account. Make sure to have access so that you can monitor the account. When the teen gets their first job, they can have their paycheck deposited in a checking account.

• Get a debit card. When your teen gets a checking account, it is the perfect time to get a debit card. They can practice using it and seeing purchases impact the account balance. Your child can get an online login to their bank account and learn to watch the activity.

• Help them set a budget. Teens are notoriously frivolous. Starbucks, dining out, shopping, video games — there are so many more ways for our teens to spend their money than we had as young adults. Discuss with your teens how many hours they would need to work to buy a grande Frappuccino at Starbucks. Talk about how long they would need to save to go to a big concert. If it is easier to illustrate, find an app for budgeting. There are many available.

• Consider credit cards. This is a tricky one. Each of my children was given an additional card on our account when they were 16. This card came with explicit instructions (from mom and dad) on how and when it was to be used, as my husband and I were ultimately responsible for the bill. Our kids understood that the card could easily be taken away if misused. This was a gentle introduction to credit and allowed them to establish a credit score (see the next tip). You could also start with a pre-paid credit card on which you put a certain amount. When each of our children were juniors in college, we helped them apply for their own credit cards. By this time, their money skills were good, and they understood the importance of paying the bill monthly.

“In general, we should take the stigma out of money discussions and make spending and saving discussions easier to have.”

Barbara Trombley

• Explain credit score. Many teens and young adults do not understand the need to build credit. Emphasize that, by using credit responsibly, your teen will build credit and increase their credit score, which is imperative when it is time to finance a car or a house. Explain how people with the best scores are given the lowest interest rates when looking to make large purchases.

• Discuss compound interest. This topic can apply to both credit cards and investments. Explain to your teen how compound interest (paying interest on the interest from last month’s bill) can make a large credit card balance even bigger over time. Consequently, compound interest is your friend when dealing with investment accounts. Earning interest on the interest generated year over year is how many people grow their investments.

• Discuss paying for college. Another hot topic that too many parents avoid is who is going to pay for college and how. Teens need to be included in the discussion about college tuition and debt from an early age. If expectations are set about how much college costs and how much you can contribute, disappointment with a college choice can be managed. Also, one of the absolute worst financial mistakes a parent can let their teen make is to choose a college without regard to the financial burden on both the parents and the student. Letting an 18-year-old be unknowingly responsible for college debt can set them up for a lifetime of money troubles.

If your teen is really interested, find online classes that teach financial literacy. Also, look for books in your library. Particularly savvy teens can open investment accounts easily online and start investing with a minimum deposit. There are many ways to educate our children, and we need to take the responsibility for their financial education.

Barbara Trombley, MBA, CPA is a principal with Wilbraham-based Tromblay Associates; (413) 596-6992. Securities offered through LPL Financial. Member FINRA/SIPC. Advisory services offered through Trombley Associates, a registered investment advisor and separate entity from LPL Financial. This material was created for educational and informational purposes only and is not intended as ERISA tax, legal, or investment advice.

Silicon Valley Bank: Failure and Aftermath

By Contributor March 15, 2023

Daily News

Analysis by Jeff Liguori

Silicon Valley Bank (SVB), a California-based lender, was taken over by the FDIC due to fears of insolvency. The process was one of the swiftest in history.

Silicon Valley Bank was a niche banking franchise founded in 1983 to fill a growing need in the financial-services marketplace. The primary customers of the bank were private equity firms and their principals. Typically, private equity firms (or venture capital, which is a subset of private equity) invest in startup companies, help those companies grow, and eventually, if successful, have those companies go public or get sold in a liquidity event. Liquidity events — or lack thereof — are a critical piece in the demise of Silicon Valley Bank.

As a banking partner to these firms, SVB routinely made loans to its portfolio companies. The bank filled a very specific need: extending credit to companies that were often in growth mode, and not profitable — a distinct customer base that generally could not get credit from traditional commercial banks. As a result, when those private companies either went public or were sold, loans were paid off, and deposits at the bank (proceeds from liquidity events) rose, which created a loyal customer base. And not only was SVB extending credit to these firms, but the bank also held the operating accounts for those growing businesses as well as accounts for its private equity firms’ investors. Balances on such accounts regularly exceeded the FDIC insured level of $250,000. SVB generally held a larger number of uninsured deposits than most banks.

From its founding in 1983 to the end of 2022, with a very narrow customer base, Silicon Valley Bank’s assets grew nearly 25,000%, and its stock price appreciated 7,000%.

What Happened?

Deposits are considered a cheap source of funds for banks. A customer deposits money into his or her account and earns a nominal amount of interest while the bank makes loans against that deposit at a higher interest rate to a borrower. The spread between the two, called the net interest margin, is a major source of revenue for a bank. Deposits are generally invested in a portfolio of bonds by the bank treasurer. Depending on the interest rate environment and the loan liabilities of its customers, a bank generally creates a bond portfolio that allows for an appropriate level of liquidity to fund loans, with minimal volatility. It is crucial to understand that bond prices are inversely correlated to bond yields: as yields rise, bond prices go lower, and vice versa.

In the case of Silicon Valley Bank, the overall level of the bank’s deposits has been highly correlated to IPO activity. From 2015 to 2019, on average, almost 210 companies per year went public, slightly higher than the previous five-year average. In 2020, even with the pandemic, the number of IPOs rose to 480, and in 2021, 1,035 companies went public, the highest number ever recorded in the U.S. Consequently, SVB’s deposit base grew rapidly, from $60 billion at the beginning of 2020 to a peak of almost $190 billion by the first quarter of 2022, an increase of more than 200%. For context, Bank of America’s deposits grew by about 44% in that same time frame.

Not coincidentally, deposits at Silicon Valley Bank peaked in March 2022. As the bank was flooded with deposits, those had to be invested into bonds. But here’s where it got tricky: the rapid rise in short-term interest rates by the Federal Reserve was particularly damaging to SVB’s balance sheet. When banks invest deposits, there are two tranches: securities deemed ‘available for sale’ (AFS) and those ‘held to maturity’ (HTM). AFS are the most liquid and least volatile, with HTM having a longer maturity because the bank doesn’t project those securities will be needed to fund loans.

In 2022, because of weak financial markets, initial public offerings decreased sharply. There were 181 IPOs, the fewest since 2016 and an 80% decrease from 2021. Private companies shelved their exit strategies. That meant many private companies needed to take on additional debt. SVB management greatly underestimated this dynamic. To fund loans, the bank was forced to not only use AFS securities, but HTM as well, which, because of a sharp rise in rates, generated a loss and a hit to their required capital levels. It was a negative cycle, whereby bank management was caught between making decisions based on the adverse effect to its profit margin (selling securities at a loss) to actual solvency as a financial institution as the deposit base shrank — an exponential negative impact to the bank’s capital that quickly spiraled out of control.

After the stock market closed on Wednesday, March 8, Silicon Valley Bank announced an offering to sell additional shares of its own stock to raise capital. The amount targeted to be raised — $1.2 billion — was unusually large considering the market value of the entire company was about $16 billion at that time. After market hours, the price of the stock was lower, but only by about 10%. Investors did not seem terribly worried at that point. When the market opened on Thursday, the stock was already down about 30%, eventually losing 60% of its value that day, which ended up being the last day the stock would ever trade. Unbeknownst to many, the bank run by SVB’s customers had started earlier in the week.

Panic ensued for many customers who had large, uninsured balances at SVB. As one chief financial officer of a private equity firm told me, it was common for him to move substantial sums in and out of the bank. Meanwhile, his firm’s portfolio companies spent last weekend worried about whether they would make payroll in the coming weeks, among other concerns.

At some point, we will know exactly what transpired. Expect as many shareholder lawsuits and congressional hearings as there were for the fall of Lehman Brothers or Enron. But the Silicon Valley story, based on available information, does not seem to be one of corporate malfeasance. Rather, it was a timing issue. Bank management clearly did not anticipate the speed at which rates would rise or the sharp decline in deposits. That dynamic was exacerbated last week as customers heard insolvency rumors and withdrawals accelerated en masse. Interestingly, withdrawals were almost completely done online, an unforeseen consequence of a digital world. Having to wait for a bank teller to make a withdrawal is almost nonexistent, which probably would’ve helped the bank slow the run in this case.

On Sunday night, there was a joint announcement by the FDIC and Treasury that all balances would be insured. Also in that announcement was the news that another financial institution, Signature Bank, was put into receivership by the FDIC. The regulators are probably working overtime to avoid another failure.

Silicon Valley Bank — seen as critical to entrepreneurs and innovators in the economy — was unique. The irony is that past bank failures were due to poor credit decisions. SVB had a duration mismatch of assets and liabilities with a narrow customer base, all of which was adversely affected by higher interest rates and weak financial markets. Bank management should be held responsible, but the difference from a 2008 Lehman or Washington Mutual type of failure was that both those institutions held incredibly risky, or toxic, assets on their balance sheets.

Market Impact

While the issues seem clear today, almost no one anticipated the collapse of Silicon Valley Bank. Reputable analysts had maintained ‘buy’ ratings on the stock. Goldman Sachs, as recently as three weeks ago, upgraded the company with a $312 price target (it was trading around $275 at the time). The insolvency of this institution was a surprise to nearly the entire investment community.

Silicon Valley Bank was about one-fifth the size of PNC Bank, one of the largest super-regional banks, and about 1/20th the size of Bank of America. It was approximately the same size as Citizens Bank or First Republic Bank in terms of total assets prior to last week. The failure of this institution seems idiosyncratic in nature and not a huge threat to the banking system. The additional insurance measures by the federal government seem appropriate. And now, for very good reason, bank balance sheets are coming under extreme scrutiny in the wake of this historic event.

In an interesting twist, the bond market has rallied and interest rates have gone lower since last Wednesday. The collapse of a meaningful financial institution has actually helped improve the health of many bank balance sheets across the country.

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.

City Hall’s Dedication Is Long Overdue

By Contributor March 2, 2023

Holyoke’s 150th

By Penni Martorell

Happy anniversary, Holyoke! 2023 is the sesquicentennial, or more commonly called the 150th anniversary of the incorporation of the city. It is our good fortune that we, the citizens of Holyoke, will, at long last, will hold an official dedication ceremony for Holyoke’s City Hall, a structure that is not only of notable architecture, but also a fundamental component of Holyoke’s past, present, and future and the foundation of our community.

In a July 1876 article, the Holyoke Transcript reported:

“There ought to be public spirit enough in this city to appropriately dedicate this noble building. There seems to be a small faction opposed to it, but they should not be allowed to present a fitting dedication by those whose money has been spent in the construction of the finest hall in New England.”

That’s right, Holyoke City Hall was never dedicated upon its completion. Apparently, that small faction held out, and other circumstances derailed the building’s official dedication. So, it is only appropriate that we take time now to dedicate this magnificent building as it has stood in service to Holyoke for a century and a half. The official dedication will take place on Thursday, April 6.

Most of the story about City Hall is documented in Holyoke Annual Reports and a lengthy, detailed, unsigned article in the Saturday morning edition of the July 1, 1876 Holyoke Transcript. And as history so often reveals itself in layers, there are likely many more stories about the building. So here is some background information and details about the construction.

The total financial outlay to build this magnificent building, when all was said and done, was $372,000 in 1876. (Additional research done by the Historical Commission indicates that final cost was closer to $500,000 at the time.) In any case, in today’s money, that would be more than $10 million.

The town of Holyoke was established by an act of Massachusetts Congress Chapter 71 and signed into law On March 14, 1850 by Gov. George Nixon Briggs. The town’s first board meetings were held in rented meeting halls like Chapin Hall, Parsons Hall, and the Exchange Hall. A separate selectmen’s office was rented starting in 1861. The largest financial challenges for the town at that time were fees to West Springfield in relation to the contract of separation.

Constructing a building of this size and character was not an easy task, nor was it inexpensive. Delays and contractual issues increased the amount of time and money it took to complete this monumental undertaking. Unfortunately, division arose early on deciding where the building should be located. More delays arose during the building of City Hall and were memorialized in Holyoke’s Building Committee reports.

Fortunately, the city’s incorporation in 1873 brought about the reorganization of elected officials and, most importantly, new Building Committee members who acted quickly and effectively to get the construction work back on track … but it wasn’t a smooth process.

In October 1874, the new Building Committee contracted H.F. Kilburn of New York to serve as architect under the supervision of Watson Ely of Holyoke. In order to facilitate the completion of the building in a timely manner, Ely ordered that everyone that had moved into the unfinished building vacate the building and then closed City Hall during the winter of 1874.

Charles Attwood was the original architect who created the Gothic Revival and Romanesque Revival structural plan in 1871. However, many others contributed structural and decorative details, including local builder Casper Ranger, John Delaney, Ecclesiastical Stained Glass Works, Watson Ely, Henry Kilburn, Kronenberger and Sons, Filippo Santoro, Serpentino Stained Glass, and Samuel West.

Beyond the granite exterior walls, stone steps and pavers, and slate roof, other building materials include random ashlar, galvanized iron, glass, lead, marble, wood, brick, sheet metal, and copper.

One of the most important historical and stately features of Holyoke City Hall is the looming clock and bell tower. The imperial tower stands 225 feet high and houses a bell that weighs nearly 5,000 pounds. The clock’s face is composed of two-inch-thick Belgium milk glass. Sadly, the clock was inoperable and the bell was silent for decades. Thanks to Friends of City Hall, David Cotton, and a team of volunteers, the clock was restored after completing hundreds of hours of repairs, and on July 4, 2018, the clock was lit up and began keeping time again after almost 30 years.

But back to City Hall itself. As of July 1876, it had not been dedicated, and research has not found any indication it was ever dedicated. It’s time to remedy that.

Penni Martorell is Holyoke’s city historian and curator at Wistariahurst.

EEOC Releases New Guidance on Hearing Disabilities

Law

Sound Advice

By Trevor Brice, Esq.

Trevor Brice

On Jan. 24, the Equal Employment Opportunity Commission (EEOC) released new guidance for employers on how and when to accommodate applicants and employees with hearing disabilities.

The guidance covers when an employer may ask an applicant or employee questions about a hearing condition and how it should treat voluntary disclosures of a condition, what types of reasonable accommodations applicants or employees with hearing disabilities may need, how an employer should handle safety concerns about applicants and employees with hearing disabilities, and how an employer can ensure that no employee is harassed because of a hearing disability or any other disability.

This guidance is an update to the original guidance that the EEOC released regarding accommodations for deafness and hearing disabilities in the workplace on May 7, 2014.

Questioning Employees and Applicants on Hearing Disabilities

In general, before offering an individual a job, avoid asking the applicant about hearing disabilities or any disabilities or requiring an applicant to have a medical examination before a conditional job offer. However, the limited exception to this general rule is if an applicant has an obvious impairment or has voluntarily disclosed an impairment, and the employer reasonably believes that the applicant will require an accommodation to complete the application process or to perform the job because of the condition.

If this is the case, the employer may ask if the applicant will need an accommodation and what type. However, as a best practice in the pre-offer stage, it is prudent for an employer to stick to questions about the applicant’s ability to perform the position’s essential functions, with or without reasonable accommodation, such as whether the applicant can respond quickly to instructions in a noisy, fast-paced work environment.

After making a conditional job offer, an employer may ask questions about the applicant’s health (including questions about an applicant’s disability, including deafness and hearing disabilities) and may require a medical examination as long as all applicants for the same type of job are subjected to the same requirement.

For current employees, an employer may ask disability-related questions or require an employee to have a medical examination when the employer knows about a particular employee’s medical condition, has observed performance problems, and reasonably believes that the performance problems are related to a medical condition. However, the EEOC notes that employers should take precautions in this situation, as performance problems often are unrelated to a medical condition, and the problems should be handled in accordance with the employer’s existing policies regarding performance.

Regarding hearing conditions for current employees, an employer also may ask an employee about a hearing condition when it has a reasonable belief that the employee will be unable to safely perform the essential functions of the job because of it. Further, an employer may ask an employee about their hearing to the extent necessary to support the employee’s request for accommodations, to enable the employee to participate in a voluntary wellness program, or to verify the employee’s use of sick leave related to a hearing condition if the employer requires all employees to submit a doctor’s note to justify their use of sick leave.

Possible Accommodations and Safety-Related Exclusions

The EEOC suggests several reasonable accommodations that could be suggested or employed for hearing-disabled individuals. This non-exhaustive list includes a sign-language interpreter for use in interviews or during employment, assistive technology (including video relay or video remote interpreting services, hearing-aid-compatible telephone headsets, etc.), appropriate written memos and notes, note-taking assistance, work-area adjustments (moving a desk away from a noisy area, for example), time off, altering non-essential job functions, and reassignment to a vacant position.

Employers should remember that there is no magic word for requesting a reasonable accommodation; an individual simply has to tell the employer that he or she needs an adjustment or change at work because of an impairment. Employers do not have to provide reasonable accommodations if doing so would be an undue hardship, meaning that providing reasonable accommodation would result in significant difficulty or expense. Additionally, employers do not have to eliminate an essential function of a job, tolerate poor performance, or excuse violations of conduct to provide reasonable accommodations.

There is another consideration for employees with hearing disabilities. Employers may also exclude an individual with a hearing disability from a job for safety reasons when the individual poses a direct threat, which is defined as a significant risk of substantial harm to the individual or others because of a disability that cannot be eliminated or reduced through reasonable accommodations. If an employer believes there is such a direct threat, the employer should conduct an individualized assessment of the individual’s present ability to perform the essential functions of the job.

Considerations should include the duration of the risk, the nature and severity of potential harm, the likelihood that the potential harm will occur, and the imminence of the potential harm. The harm must be serious and likely to occur, not remote and speculative. Finally, the employer must consider whether any reasonable accommodations, such as the ones above, would reduce or eliminate the risk of direct threat. The EEOC provides examples of how this balancing test should work.

If employers have questions relating to this balancing test, or regarding the new guidance for hearing disabilities or disabilities and reasonable accommodations in general, it is prudent to contact legal counsel in order to avoid any potential liability.

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.

Rule Would Ban All Non-compete Agreements, and Possibly More

A Changing Landscape?

By John Gannon, Esq.

John Gannon

Last month, President Biden gave his State of the Union address, during which he hyped the legislative accomplishments made during his time in the Oval Office. One of the topics that made the list: non-compete agreements.

Specifically, the president discussed the Federal Trade Commission’s (FTC) proposed rule to ban all non-compete agreements in the workplace. The rule could affect the employment terms of more than 30 million American workers.

Background

As many readers are likely aware, Massachusetts state law already restricts the use of non-compete agreements in the workplace. The Massachusetts Noncompetition Agreement Act (MNAA), which was passed back in 2018, prohibits non-compete agreements with non-exempt employees. In addition, non-compete agreements are enforceable only if an employee is terminated for cause. Under the MNAA, non-competes generally must be limited to 12 months, and must be supported by garden leave (i.e., paying the employee some amount of money during the non-compete period).

The MNAA does not prohibit agreements restricting employees from soliciting business with customers or clients, nor does it impact non-disclosure agreements meant to protect dissemination of trade secrets. And non-compete agreements entered into after the effective date of the MNAA — Oct. 1, 2018 — are not affected.

On Jan. 5 of this year, the FTC proposed its own rule that would ban all non-compete agreements, with limited exceptions. The proposed rule also bans ‘de facto’ non-competes, which could include anti-solicitation and non-disclosure agreements, depending on how they are written.

According to the FTC, “when employers use non-compete clauses to restrict workers from moving freely, they have the power to suppress wages and avoid having to compete to attract workers. Based on existing evidence, non-compete clauses also reduce the wages of workers who aren’t subject to non-competes by preventing jobs from opening in their industry.” The FTC estimates that “the proposed rule could increase workers’ earnings across industries and job levels by $250 billion to $296 billion per year.”

The Proposed Rule

The FTC’s proposed rule would ban all non-compete agreements between employers and employees, as well as independent contractors. The rule defines a non-compete as “a contractual term between an employer and a worker that prevents the worker from seeking or accepting employment.”

This is not limited to traditional non-compete provisions that limit an employee from seeking work with a competitor. The rule would encompass post-employment restrictions that ostensibly prohibit the employee from seeking future employment. Certainly, an argument could be made that overly broad non-solicitation or non-disclosure agreements have the effect of prohibiting a worker from going to work elsewhere.

Unlike the MNAA, the FTC’s proposed rule would rescind all employment non-compete agreements currently in place. It would also require employers to inform employees currently subject to a non-compete agreement that the agreement is no longer valid.

Strong Resistance

Not surprisingly, the FTC’s proposed rule does not sit well with businesses.

Calling the rule “blantantly unlawful,” the U.S. Chamber of Commerce noted that, “since the agency’s creation over 100 years ago, Congress has never delegated the FTC anything close to the authority it would need to promulgate such a competition rule.

“Attempting to ban non-compete clauses in all employment circumstances,” the chamber went on, “overturns well-established state laws which have long governed their use and ignores the fact that, when appropriately used, non-compete agreements are an important tool in fostering innovation and preserving competition.”

The FTC has invited public notice and comments on the proposed rule through March 20. Businesses and others can submit comments at www.regulations.gov/document/FTC-2023-0007-0001. After the close of this comment period, the FTC will publish a final rule, incorporating the input it receives.

This will just be the beginning. After the rule is issued, employers and trade associations are certain to challenge the rule in court. Ultimately, the legality of this rule may be decided by the U.S. Supreme Court, which is precisely what happened with the recent rule proposed by OSHA mandating a COVID ‘vaccine-or-test’ policy for larger employers. This rule was struck down by the Supreme Court earlier this year.

Next Steps for Employers

Many businesses in Massachusetts went through a non-compete process and procedure review back in 2018, due to the MNAA. However, employers need to understand that the proposed FTC rule goes beyond traditional covenants banning employees from working for competitors post-employment. It would be wise for employers to review non-solicitation and non-disclosure agreements currently in place to be sure they will be enforceable should the FTC’s proposed rule become the law of the land.

Businesses should also enhance any agreements meant to protect trade secrets and/or client relationships with suitable policies and procedures. This involves making sure confidential information stays confidential by limiting data access to ‘need-to-know’ groups. It also involves implementing polices geared toward ensuring that sensitive company information stays on site and cannot be accessed on an employee’s personal device.

Finally, employers should carefully follow the progress of the FTC’s proposed rule and work with legal counsel in drafting or enforcing non-compete and non-solicitation agreements going forward.

John Gannon is a partner with the Springfield-based law firm Skoler, Abbott & Presser, P.C., specializing in employment law and regularly counseling employers on compliance with state and federal laws; (413) 737-4753; [email protected]

Cannabis Employee Not Entitled to Federal Bankruptcy

Petition Denied

By Michael McAndrew, Esq. and Michael Roundy, Esq.

Michael McAndrew

Michael Roundy

The courts have widely established that cannabis businesses, even if compliant with state cannabis laws, are not protected by federal bankruptcy laws because they operate in a federally illegal industry. But can an employee of a cannabis business who has no ownership interest in that business file for bankruptcy individually under Chapter 13 of the Bankruptcy Code?

This question was answered with a resounding ‘no’ by the U.S. Bankruptcy Court for the District of Massachusetts in its recent decision in In re Blumsack, when the court dismissed such an employee’s bankruptcy petition in its entirety.

The would-be debtor, Scott Blumsack, had worked in the Massachusetts cannabis industry since 2021. At the time of the decision, he was the general manager of a cannabis business that manufactured, retailed, and wholesaled cannabis and cannabis products legally under Massachusetts law. In this role, Blumsack supervised employees, set up the retail operation, managed all aspects of the retail operation, and regularly acted as a ‘budtender,’ a role in which he regularly distributed cannabis to his employer’s customers. He was appropriately licensed under Massachusetts law to dispense cannabis, but had no ownership interest in his employer’s business.

In 2021, Blumsack filed a voluntary petition for reorganization under Chapter 13 of the Bankruptcy Code and submitted a plan of reorganization in which he proposed making payments to creditors out of the salary that he earned working in his employer’s cannabis operation. In the alternative, he proposed a plan for reorganization that would be funded out of his wife’s retirement funds, which arose from her wages unconnected to the cannabis industry.

In response to Blumsack’s proposed plans, the bankruptcy trustee moved to dismiss his bankruptcy petition, arguing that the proposed plans of reorganization could not be confirmed because the debtor’s activities in connection with his employment violate federal law. By working for a cannabis retailer, Blumsack had violated, and continued to violate, federal law by distributing cannabis and conspiring with his employer to violate federal law. The trustee argued that confirmation of the debtor’s plan would necessarily require the trustee to administer proceeds derived from such illegal activity.

Blumsack countered that, if the court adopted the trustee’s reasoning, any employee of a marijuana-related business (such as web designers and warehouse workers serving companies in the industry) could also be deprived of bankruptcy protections because of the cannabis industry’s wide-spectrum contributions to the state’s economy.

The court disagreed. Describing the case as one of “apparent first impression” because no on-point decisions had been found, the court noted that, for approval of a Chapter 13 plan of reorganization, the plan is required by statute to be submitted “in good faith and not by any means forbidden by law.” If a plan is not submitted in good faith, it may be dismissed “for cause.” Although neither ‘good faith’ nor ‘cause’ are defined in the bankruptcy code, both terms have been interpreted in case law throughout the country.

The Bankruptcy Court in this case held that, because Blumsack’s proposed plan of reorganization was funded by wages that were derived from participation in a cannabis retail operation and he continued to engage in the cannabis industry — federally illegal activity — while his bankruptcy case was pending, the plan was not proposed in good faith and was proposed by a means forbidden by law. Specifically, the court found that Blumsack’s job duties “require that he act in violation of federal criminal statutes.” Because of this, his plan would require the Chapter 13 trustee to “knowingly administer wages derived from an active participant in a criminal enterprise.” As such, the court could not find, under an objective standard, that the petition had been filed in good faith.

As a result, the Bankruptcy Court dismissed Blumsack’s petition for cause, noting that a lack of good faith is well-established grounds for dismissal for cause. The court also dismissed Blumsack’s alternative proposed plan for reorganization, despite the fact that it was to be funded by money not derived from the cannabis industry, because even under such a plan, Blumsack “objectively lacks good faith” by seeking the benefits and protections of federal bankruptcy law while simultaneously continuing to earn income from conduct that violates federal criminal law. In short, his plan, however funded, was tainted by his continued federally illegal activity.

While Blumsack’s counsel warned of a slippery slope, the court was unpersuaded and stated that it “must decide only the case it has before it.” The Bankruptcy Court made clear that its decision was cabined to the particular facts of this case, and that questions of good faith require a case-by-case analysis. Nonetheless, it is likely that other courts may take their cues from this decision to prevent others employed by cannabis companies or by companies serving the cannabis industry from filing for Chapter 13 bankruptcy.

How far will the reasoning of the court extend? To employees who do not directly participate in distributing cannabis products? To service providers who generate their own income by serving cannabis clients and thereby assisting them with their federally illegal activities? The Bankruptcy Court’s decision provides no guidance on these issues.

Absent congressional decriminalization of cannabis, issues at the intersection of state and federal laws affecting the cannabis industry will continue to be addressed on an ad hoc, case-by-case basis by federal regulatory agencies, prosecutors, and courts. For now, we can add individual bankruptcy protections to the growing list of complex issues affecting those working in, or for, the cannabis industry.

Michael McAndrew is an associate, and Michael Roundy a partner, at the Springfield-based law firm Bulkley Richardson.

Moving DEI Initiatives Forward

Accounting and Tax Planning

By Meredith Wise

DEI Initiatives are very much in our conversations. However, the HR Trends 2023 survey by McLean & Co. show that actions on these initiatives have stalled for the second year in a row.

This study highlights human-resources priorities and challenges, comparing current-year results to prior years. In 2021, DEI efforts jumped from eighth place in 2020 to fourth place largely due to national and global conversations and actions around equity and social justice. In 2022, these efforts fell to fifth place, and this year they have dropped to sixth on the HR priority list.

In our work helping companies develop roadmaps for DEI, a handful of key areas are lacking: dedicated time to focus on DEI, leadership support, training, and resources.

According to the study, governance, leadership buy-in, strategic discussions, and data collection are the common roadblocks to moving DEI efforts forward. Actions and planning can refocus your organization’s initiatives.

Leadership: Senior leaders should model DEI behaviors in all their interactions and communications. Training alone will not move your goals along. Moving beyond awareness training to competency learning opportunities will help elevate the support from leadership. The data in the study demonstrated that the 40% of organizations that leverage competency-based training are more likely to be high-performing in DEI compared to those leveraging awareness-based training.

Communications: DEI-related topics and performance should be woven into regular communication cadences from leaders and HR functions. Active communication and discussions about initiatives, actions, and challenges need to happen.

Formal DEI Strategy: Sixty-three percent of respondents indicated they did not have a formal or documented DEI strategy.This percentage has remained stable over the past three years. Policies and practices document how DEI programs will operate in the organization. These policies should address how DEI considerations are integrated, including the employee experience, performance management, recruiting, retention, advancement, compensation, and more.

Data: Understanding that time is at a premium for HR teams and professionals, initiatives in 2023 may best be focused on data collection and analysis. This data will shape strategy, demonstrate gaps and urgency to the organization, and allow for informed decisions on a formal strategy and governance.

There is no one-size-fits-all solution; however, with a combination of leadership support, resources, and a dedicated team, organizations will more likely become high performing versus those without this focus.

According to the study, recruiting is once again the number-one priority on HR professionals’ minds for the third year in a row. Although DEI has fallen further down the list, this work does not exist in a silo — maintaining momentum on DEI efforts will support other priorities, including talent attraction and retention.

It’s also good news that embedding DEI into organizational culture and processes does not require a degree in advanced physics. All that’s needed to operationalize DEI is the right commitment, planning, and structure.

Meredith Wise is president of the Employers Assoc. of the NorthEast. This article first appeared on the EANE blog; eane.org

Accounting Policies and Procedures Are Essential for Nonprofits

By Contributor February 17, 2023

The Goal Is Efficiency

Financial reporting isn’t all about profits. Not-for-profit entities can also benefit from implementing formal accounting processes. From preparing budgets and monitoring financial results to paying invoices and handling payroll tax, there’s a lot that falls under the accounting umbrella. Are these tasks, and others, being managed as efficiently at your organization as they could be?

Start with Invoicing

A good first step toward accounting-function improvement is creating policies and procedures for the monthly cutoff of recording vendor invoices and expenses. For instance, you could require all invoices to be submitted to the accounting department within one week after the end of each month. Too many adjustments — or waiting for employees or departments to weigh in — can waste time and delay the completion of your financial statements.

Another tip about invoices: it’s generally best not to enter only one invoice or cut only one check at a time. Set aside a block of time to do the job when you have multiple items to process.

You also may be able to save time at the end of the year by reconciling your balance-sheet accounts each month. It’s a lot easier to correct errors when you catch them early. Also, reconcile accounts payable and accounts receivable subsidiary ledgers to your statements of financial position.

Think Through Data Collection

Designing a coding cover sheet or stamp is another way to boost efficiency. An accounting clerk or bookkeeper needs a variety of information to enter vendor bills and donor gifts into your accounting system. You can speed up the process by collecting all the information on the invoice or donor check copy using a stamp. Route invoices for approval in a folder that lists your not-for-profit’s general-ledger account numbers so that the employee entering data doesn’t have to look them up each time.

The cover sheet or stamp also should provide a place for the appropriate person to approve the invoice for payment. Use multiple-choice boxes to indicate which cost centers the amounts should be allocated to. Documentation of the invoice’s payment should also be recorded for reference. And your development staff should provide the details for any donor gifts prior to your staff recording them in the accounting system.

Optimize Accounting Software

Many organizations underuse the accounting software package they’ve purchased because they haven’t invested enough time to learn its full functionality. If needed, hire a trainer to review the software’s basic functions with staff and teach time-saving tricks and shortcuts.

Standardize the financial reports coming from your accounting software to meet your needs with no modification. This not only will reduce input errors, but also will provide helpful financial information at any point, not just at month’s end.

Consider performing standard journal entries and payroll allocations automatically within your accounting software. Many systems have the ability to automate, for example, payroll allocations to various programs or vacation-accrual reports. But review any estimates against actual figures periodically, and always adjust to the actual amount before closing your books at year end.

Ongoing Review

Accounting processes can become inefficient over time if they aren’t monitored. Look for labor-intensive steps that could be automated or steps that don’t add value and could be eliminated. Also, make sure that the individual or group that’s responsible for the organization’s financial oversight (for example, your CFO, treasurer, or finance committee) promptly reviews monthly bank statements and financial statements for obvious errors or unexpected amounts.

This article was prepared by Whittlesey, one of the largest regional accounting firms in New England, specializing in the areas of accounting, audit, advisory, and technology.

Updated Act Introduces New Rules, Incentives to Promote Retirement Plans

By Contributor February 16, 2023

Accounting and Tax Planning Special Coverage

Save and SECURE

By Dan Eger

The SECURE Act, or Setting Every Community Up for Retirement Enhancement Act, was signed into law in December 2019. This legislation made it easier and more affordable for individuals to save for retirement by introducing new rules and incentives that promote long-term savings.

The SECURE Act also supports small businesses by making it easier for them to offer retirement plans to their employees.

Overall, the SECURE Act aimed to make retirement savings more accessible and secure for Americans of all ages and economic backgrounds.

The 2019 legislation included changes that affected traditional 401(k)s and IRAs, such as expanded eligibility for opening a Roth IRA, new requirements for minimum distributions from retirement accounts, and incentives for small businesses to offer retirement plans. The law also included provisions to benefit those who are retired or disabled, such as increasing the age at which a person must begin taking required minimum distributions from 70½ to 72.

Legislation commonly referred to SECURE 2.0 Act (the Consolidated Appropriations Act of 2023) was signed into law on Dec. 29, 2022. The SECURE Act 2.0 bolsters the benefits offered in 2019’s version, making it more enticing for employers to provide retirement plans and improve employees’ retirement prospects along the way.

What follows is a summary of some of the provisions, but keep in mind that the act includes more than 90 provisions that potentially affect retirement-savings plans.

Mandatory Automatic Enrollment

Effective for plans beginning after Dec. 31, 2024, new 401(k) and 403(b) plans must automatically enroll employees when eligible. Automatic deferrals start at between 3% and 10% of compensation, increasing by 1% each year to a maximum of at least 10%, but no more than 15% of compensation. Participants can still opt out.

“Overall, the SECURE Act aimed to make retirement savings more accessible and secure for Americans of all ages and economic backgrounds.”

Automatic Escalation

Beginning in 2025, for new retirement plans started after Dec. 29, 2022, contribution percentages must automatically increase by 1% on the first day of each plan year following the completion of a year of service until the contribution reaches at least 10%, but no more than 15%, of eligible wages. Governmental organizations, churches, and businesses with 10 employees or fewer, as well as employers in business for three years or fewer, are exempt from this policy.

Expanded Eligibility for Long-term, Part-time Employees

Under current law, employees with at least 1,000 hours of service in a 12-month period or 500 service hours in a three-consecutive-year period must be eligible to participate in the employer’s qualified retirement plan. SECURE 2.0 reduces that three-year rule to two years for plan years beginning after Dec. 31, 2024.

Increase in Catch-up Limits

Effective after tax year 2024, SECURE 2.0 provides a notable rise in the amount of contributions for those aged between 60 to 63. Generally, the additional catch-up limit for most plans is $10,000 and only $5,000 for SIMPLE plans. These amounts are subject to inflation adjustment just like the normal catch-up contributions. Furthermore, those more than 50 years old are eligible for increased contribution limits on their retirement plans (known as ‘catch-up contributions’). For 2023, the maximum catch-up contribution amount has been set to $7,500 for most retirement plans and will be subject to inflation adjustments.

Rothification of Catch-up Contributions for High Earners

For plans that permit catch-up contributions, high earners ($145,000 in paid wages from the employer sponsoring the plan the preceding year, indexed to inflation) can no longer enjoy the privilege of tax-deferred catch-up contributions, as their contributions need to be characterized as designated Roth contributions.

Treatment of Student-loan Payments for Matching Contributions

Starting in 2024, student-loan payments can be treated as part of your retirement contribution to qualify for employer-matched contributions in a workplace retirement account. Employers will have the flexibility to provide contributions to their retirement plan for employees who are paying off student loans instead of saving for retirement.

Emergency Savings Accounts

Starting in 2024, retirement plans will have the option of providing ‘emergency savings accounts’ that allow non-highly paid employees to make after-tax Roth contributions to a savings account within their own retirement plan. Employers may automatically opt employees into these accounts at no more than 3% of eligible wages. Employees can opt out of participation. No further contributions can be made if the savings account has reached $2,500 (indexed), or a lesser limit established by the employer. The Department of Labor and/or the Treasury Department may issue guidance on these provisions.

Withdrawals for Certain Emergency Expenses

Penalty-free distributions are allowed for “unforeseeable or immediate financial needs relating to necessary personal or family emergency expenses” up to $1,000. Only one distribution may be made every three years, or one per year if the distribution is repaid within three years. Penalty-free withdrawals are also allowed for small amounts for individuals who need the funds in cases of domestic abuse or terminal illness.

Federal Contribution Match

Starting in 2027, low-income employees can gain access to a federal matching contribution of up to $2,000 each year that will be deposited into their retirement savings account. The matching contribution is 50% of the contributions, but it decreases according to income — for example, married taxpayers filing jointly between $41,000 and $71,000, and single taxpayers between $20,500 and $35500.

Required Minimum Distributions

Beginning Jan. 1, 2023, the age for required minimum distribution (RMD) from an IRA is increased to age 73. Starting in 2033, the RMD age will be 75. (IRA owners turning age 72 in 2023 would not be required to take RMDs in 2023.) Furthermore, the penalty for not taking your RMD has been decreased from 50% of what was required to be withdrawn to 25%, and even further down to 10% if corrected within two years.

Facilitation of Error Corrections

The act expands the self-corrections system, allowing more types of errors to be fixed internally without having to amend returns in the Employee Plans Compliance Resolution System.

Immediate Incentives for Participation

At this moment, employers use matching contributions as a means to motivate employees to save for their retirement. Beginning in 2023, employers can incentivize employees with gifts cards or other small monetary rewards to increase engagement, although any financial rewards should be small and cannot come from retirement-plan assets.

In summary, the SECURE Act 2.0 provides many new benefits and opportunities to save for retirement. It allows employers to offer more flexible contributions and encourages employees with incentives to become engaged in their own financial health. With reduced penalties and expanded self-correction rules, this act gives Americans more control over their retirement savings, allowing them to become better prepared for their future.

As always, it’s important to consult with your advisor for advice, as guidance and changes to provisions are expected, and everyone’s situation is unique.

Dan Eger is a tax supervisor at the Holyoke-based accounting firm Meyers Brothers Kalicka, P.C.; (413) 536-8510.

New Bay State Cannabis Entities Must Revisit Their Plans

By Contributor February 3, 2023

Cannabis

Beyond ‘If You Build It, They Will Come’

By Meg Sanders

The local cannabis industry is overflowing with weed.

The Massachusetts Cannabis Control Commission’s open data platform reports 95 cultivators were operational and licensed as of Dec. 8, 2022. Hot on those heels, another 180 provisional licensees are seeking approval that would bring the state up to somewhere around 3.6 million to 4.98 million square feet of canopy for flower cultivation within the Bay State cannabis market’s roughly 250 cannabis stores.

If your operating and business plan is based on an outlook written for investors in the previous presidential administration, or during the halcyon days of the great green rush of the past, it’s time to face the truth: Massachusetts is well beyond the point of “if you build it, they will come.”

So those Massachusetts cannabis businesses still in the queue or just getting open need to revisit their market overviews for investors and operators. They need to do so today. Not tomorrow, not if a market event happens — right now.

“Those Massachusetts cannabis businesses still in the queue or just getting open need to revisit their market overviews for investors and operators. They need to do so today. Not tomorrow, not if a market event happens — right now.”

Meg Sanders

Take a very hard look at what needs to be rethought, or what needs to be immediately addressed, in regard to budgeting, SOPs, and overall market impact strategies for launch — and for long-term survival. Roughly 37% of all cannabis operators in the U.S. are not profitable, and too many businesses are unaware they are launching only to be licensed to lose money and fail.

For Massachusetts, the danger zone is already here.

New Markets = New Consumers

As more retailers and brands emerge online, operators just now getting their operational licenses are typically doing so using plans they wrote when originally fundraising months or years back, often without taking into account how business plans and projections need to be tweaked, updated, or overhauled in the realities of the Massachusetts cannabis industry in 2023.

Canna Provisions is the ninth-largest independent cannabis company in the Commonwealth, has won multiple ‘Best Dispensary’ awards for selection and customer service, and has been named one of the best companies to work for in the nationwide industry. And even we are reworking our plans.

Surviving the current market constriction and correction from the imbalance of supply and demand — something that has happened in other markets that came online, though it arrived faster here in Massachusetts — is a challenge of smart maneuvering and business forecasting. Ultimately, those businesses with clear eyes, that are as responsible with every dollar moving in and out of the business, will be the ones that make it out. That’s also why, to me, 2023 isn’t all doom and gloom, despite the headlines.

Price compression has been on the industry’s collective mind for the past year, which makes it all the more important to create new strategies at the retail level. Differentiation for brands will come down to matters of quality of product, a consistent and predictable retail experience, and the education level of the consumer.

What we know for sure, as seen from my experience in cannabis stretching back to the dawn of the legalized market in Colorado more than a decade ago, is that, when new markets flanking legalized states come online, it helps everyone in the existing legal retail market. But ultimately, the ones that really come out ahead are those with a key differentiating advantage and a realistic, thoughtful approach to the business. Many small first-time operators do not have the forward-looking business modeling abilities needed in the current market, especially when their average day-to-day will be spent just trying to stay afloat.

Smart Business Savvy Is the Key to Success

As experience has shown, the sky doesn’t fall in an existing market when competition is tight and the supply is in surplus, but businesses do need to be responsible. For those that need a reminder, thanks to IRS Code 280E, the effective tax rate for cannabis companies is roughly 70%. Meanwhile, cannabis companies cannot deduct normal business expenditures. Our three biggest line items, in order, are inventory, payroll, and taxes (the statewide total collected for 2022 was roughly $284 million, to paint the picture).

“Surviving the current market constriction and correction from the imbalance of supply and demand — something that has happened in other markets that came online, though it arrived faster here in Massachusetts — is a challenge of smart maneuvering and business forecasting.”

In some instances, the towns themselves are waking up to the runaway nature of the market glut. Last month, Northampton city councilors set a new limit on local cannabis dispensaries allowed to open (capped at 12 retail locations now) for a municipality noted for having the most licensed dispensaries in the state.

Even with our collective experience in retail cannabis operations and strategy, it’s still a massive challenge to make it work with so many ways our hands are tied or restricted compared to traditional industries. When the revenue numbers generated by legal cannabis in the state seem to defy the crunch-time feeling of the market, all businesses and consumers need to remember the lion’s share goes directly to the government instead of back to the business. That’s another reason why it’s important to be more careful than ever about how and where dollars are spent, and how we are utilizing the investor capital we raise for our ongoing expansion and scaling plans.

Best by Definition

Competition is already at a fever pitch in the state, and in cannabis, getting there first sometimes just makes you best by definition in the market’s eyes. At the retail level, look at any new cannabis state — say, New York — and what happens when the first stores open: lines around the block and product (or what variety there is at first) flying off shelves at steep prices that make investors smile and consumers wince. But when the market becomes more savvy and educated about the products and value system of a brand-new industry, first is no longer best.

As challenging as this time and sector is, it’s as important for the turbulent tenor of the day to subside as much as it is important for it to simply succeed at a functional level. In fact, it must succeed for the greater industry to thrive.

There is no shortage of stories about widespread layoffs and restructuring for asset consolidation on a large scale with bigger companies, primarily multi-state operators (MSOs). But in comparison to the trials of new, very small operators that found it a matter of survival just to get to the doors-open phase, MSOs have it much easier. They can bleed money in a way small independent shops cannot. If they have operational experience already, they may still not have the ability to see the forest through the trees if they are not actively responding to the business climate of an ever-changing, statewide industry.

You will need more money — from either increased sales or investor dollars for market expansion. There will continually be massive restrictive aspects to operating as long as no new banking reform measures or full-scale legalization measures are enacted. So plan on enduring such aspects as much as you should plan to be noble and focus on what is a differentiating aspect of your business.

And don’t plan on having a future in the business until you get your business plan reflective of the industry we have versus the one we want. For those new or inexperienced operators that don’t get those lessons under their belt, theirs will be a back aching for the lash of “don’t say you weren’t warned.”

Meg Sanders is the CEO of Canna Provisions, which operates cannabis dispensaries in Holyoke and Lee.

The Employee Retention Credit and You

By Contributor January 20, 2023

Banking and Financial Services

Determining Whether a Business Qualifies Can Be Complicated

By Scott Foster & Jacob Kosakowski

Scott Foster

Jacob Kosakowski

Business owners have been bombarded recently with solicitations from firms offering to help them realize millions of dollars through the IRS’s Employee Retention Credit (ERC) program, which was included in the CARES Act adopted in the early phases of COVID-19. The CARES Act also contained the popular, and well-documented, Paycheck Protection Program (PPP), with forgivable loans that kept many businesses afloat.

Originally, if a business received a PPP loan, it was not eligible to receive ERC. The initial IRS guidance on this could not have been more clear: “an employer may not receive the Employee Retention Credit if the employer receives a PPP loan that is authorized under the CARES Act. An Eligible Employer that receives a PPP loan, regardless of the date of the loan, cannot claim the Employee Retention Credit.”

However, subsequent legislation, namely the Taxpayer Certainty and Disaster Tax Relief Act of 2020, enacted Dec. 27, 2020; the American Rescue Plan Act (ARPA) of 2021, enacted March 11, 2021; and the Infrastructure Investment and Jobs Act, enacted Nov. 15, 2021, greatly expanded eligibility for ERC.

While some of these firms are offering legitimate services and will help businesses file accurate and legitimate claims for ERC, business owners should proceed with extreme caution due to several factors: the very complex rules regarding eligibility for an ERC, the IRS’s near-automatic acceptance of these filings (and payment of the credit, of which the firm usually collects 25% or more), the very strong likelihood that these filings will be audited in years to come (the IRS has up to five years to audit ERC returns), and the equally strong likelihood that the less-reputable ERC firms will have closed their doors and have liquidated all assets before those audits are completed, leaving the business holding the proverbial bag for tax penalties, fines, and interest.

“Perhaps the most complicated facet of determining eligibility under ERC relates to how its provisions interact with the Internal Revenue Code’s special aggregation rules for businesses.”

The IRS issued a warning on Oct. 19, 2022, stating that some firms “are taking improper positions related to taxpayer eligibility for and computation of the credit.” The IRS warning goes on to explain that firms “often charge large upfront fees or a fee that is contingent on the amount of the refund and may not inform taxpayers that wage deductions claimed on the business’ federal income-tax return must be reduced by the amount of the credit.”

Determining whether a business qualifies for ERC can be quite complicated. If the business was fully or partially suspended due to a governmental order limiting commerce, travel, or group meetings related to COVID, then it may qualify for the time during which it was so suspended. If the business was not suspended but suffered a “significant decline in gross receipts,” it may also qualify. A significant decline in gross receipts is measured on a quarterly basis, comparing 2020 quarterly receipts to 2019 quarterly receipts (50% or greater decline), 2021 quarterly receipts to 2019 (20% or greater decline), or Q4 2020 receipts to Q4 2019 receipts (20% or greater decline).

Perhaps the most complicated facet of determining eligibility under ERC relates to how its provisions interact with the Internal Revenue Code’s special aggregation rules for businesses. Under the aggregation rules, multiple businesses may be combined into an ‘aggregated group’ based on common ownership, where all employees of an aggregated group will be treated as employed by a single employer. The members of an aggregated group are determined based upon the stock or membership interest ownership of a business entity. If multiple businesses are comprised of similar ownership, those businesses might be combined into an aggregated group.

The ownership of a business might be comprised of individuals, trusts, partnerships, or corporations. The ownership composition of a potential aggregated group must be closely examined because the aggregation rules and thresholds will differ based on whether the group consists of corporations, LLCs, or partnerships. Further, the relationship of individuals to one another will also impact how the aggregations rules operate.

By way of example, imagine three individuals: Alice, Brady, and Carol. Each own a one-third interest in each of Alpha LLC, Bravo LLC, and Charlie LLC. Under the aggregation rules, the three LLCs would form an aggregated group, known as a ‘brother-sister controlled group,’ based on their common ownership structure. All employees of all three LLCs would be treated as employed by a single employer. As another example, now assume that Alice and Brady own a one-half interest in Alpha LLC, Brady and Carol own a one-half interest in Bravo LLC, and Carol and Alice own a one-half interest in Charlie LLC. Under the aggregation rules, none of the LLCs would form an aggregated group with each other because any potential aggregated group would not meet the requisite ownership threshold requirements.

An aggregated group will impact how the members of such group are treated under the ERC provisions. Most notably, the aggregation rules affect the determination of a business’ average number of full-time employees, as well as what constitutes a ‘significant decline’ in gross receipts among members in an aggregated group. The aggregation rules also impact how suspensions due to governmental orders are enforced among members of an aggregated group. Businesses should consider carefully examining their ownership compositions so beneficial business aggregations are not missed.

And remember, if it sounds too good to be true, it likely is.

Scott Foster chairs Bulkley Richardson’s Business/Finance Department, and Jacob Kosakowski is an associate in the firm’s Trusts & Estates Department.

How to Attract Employees with the Right Retirement Plan

By Contributor January 20, 2023

Saving Grace

By Barbara Trombley, CPA

With a labor shortage and looming recession, attracting the right employee is more important than ever. Many small businesses are struggling to find qualified candidates.

Other than wages and healthcare, how can you make your business more attractive to a potential worker? Often, a retirement plan is the answer.

With the absence of traditional pensions today, the onus for retirement is on the employee. Many small-business owners may feel a personal responsibility to enable their employees to fund a retirement. Not having one at all can certainly be a deal breaker for many applicants.

The ability to save, directly from a paycheck, is very attractive. But what plan should you offer, and what are the costs? What are the benefits of the different types of plans?

The most common type of plan is a 401(k). You need only one employee to set up a 401(k). The biggest advantage to this plan is the high level of salary deferrals that it allows. The limit for 2023 is $22,500 with a $7,500 catch-up contribution for those over age 50. Many plans can offer both pre-tax contributions and post-tax (Roth) contributions. There are many investment choices that are possible in a 401(k) plan. Also, many plans are associated with a financial advisor who will offer education to your employees, possibly helping them save more for retirement.

“Other than wages and healthcare, how can you make your business more attractive to a potential worker? Often, a retirement plan is the answer.”

Barbara Trombley

One drawback is that a 401(k) plan can be one of the more expensive types of plans to set up and maintain. The plan needs to be either a safe-harbor plan, where the employer must make a specified matching contribution or automatically deposit 3% of the employee’s salary into the plan (any contributions made by the employer are tax-deductible), or the plan needs to be tested each year to ensure that the plan does not discriminate against highly compensated employees.

In the past, this type of plan had to be offered to all employees over 21 years of age who work at least 1,000 hours. The rules are changing to allow some part-time workers to participate. In my opinion, a 401(k) plan is the most advantageous plan to the employee but may cost the employer more in administration, setup fees, and safe-harbor contributions compared to other plans.

Another popular plan for employers is the SEP plan. Again, this plan can be offered by businesses with more than one employee. The main difference between the SEP plan and a 401(k) is that SEP contributions are made only by the employer; there are no employee contributions. This type of plan is very simple to set up and does not have testing requirements. The maximum annual contribution is 25% of salary, up to a limit of $66,000. The employer has to make the same percentage contribution for each of his or her employees.

The benefit of this plan is that it is very simple to set up; the drawback to the plan is that the business owner needs to make all of the contributions, which may not be economically feasible. As an advisor, I often see a solo business owner having this type of plan.

What if a business owner does not want the complexity and costs of a 401(k) and does not want to fully fund a retirement plan like the SEP? A Simple Plan may be the answer. A Simple Plan can be offered by a business with fewer than 100 employees. There is no annual filing, and you usually use a financial advisor to set it up and choose the investments.

The limit for an employee’s contribution is $15,500 in 2023, or $19,000 if the employee is over age 50. The reductions can come directly from payroll, and the employee can decide how much to contribute. The employer must either contribute 2% of each employee’s compensation or match 100% of employees’ contributions up to 3% of their salary (which can be lowered to 1% in any two of five years). This plan is attractive to many small-business owners as the administration overhead is drastically reduced compared to a 401(k), and there is a relatively small matching contribution that needs to be made.

Lastly, I have helped a few small businesses set up a Payroll Deduction IRA. This is the perfect solution for an owner that would like to enable their employees to save for retirement but may not have the funds for matches or administration. In this type of plan, the employee can contribute up to the Traditional IRA limit ($6,500 if under age 50 and $7,500 if over), with the funds drawn directly from their paycheck. There are no setup fees for the business owner and no employer matches or testing requirements. The employees own their account if they change jobs. Many people are eligible to contribute to a Traditional IRA, but having the deduction made through payroll makes the plan more accessible.

As an additional motivation for a small business to set up a retirement plan, the federal government has been increasing the incentives to the business owner with tax credits. The owner can deduct up to 50% or $500 of plan startup and administration costs for the first three years of the plan. Additional tax credits may become available as our government continues to encourage retirement saving. Consult your financial advisor or an employee-benefits specialist to set up a plan.

Barbara Trombley is a financial planner with Wilbraham-based Trombley Associates Investment and Retirement Planning; (413) 596-6992. Securities offered through LPL Financial. Member FINRA/SIPC. Advisory services offered through Trombley Associates, a registered investment advisor and separate entity from LPL Financial. 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 education material.

Six Workforce Trends to Watch

By Contributor January 18, 2023

By MissionSquare Research Institute

State and local governments, along with other public-service organizations, faced yet another challenging year. Recent research by MissionSquare Research Institute highlights key strategies to become public-service employers of choice in 2023.

1. Communicate the full value of benefits. The wages advertised for a position represent only a small portion of the full value of a job’s financial and other benefits. Public-service jobs often include more than traditional benefits like health insurance, pensions, and deferred compensation. Benefits also can include paid leave, life insurance, flexible scheduling, and student loan or housing assistance, not to mention greater job stability in the public sector.

2. Customize recruitment appeals. Diversity, equity, and inclusion (DEI) programs are important to many jurisdictions’ recruitment and retention efforts. Each position’s recruitment plan may include new audiences, active partnerships with outside agencies, and outreach that communicates in ways that best resonate with audiences. Tailor campaigns to appeal to candidates with different benefit focuses depending on their life stages or economic circumstances.

3. Maintain retirement plan funding. While 2021 data showed steady funding for retirement plans, 2022 brought significant economic volatility impacting individual finances and worker anxiety. The first mission for plan sponsors is to weather volatility and commit to maintaining actuarially determined contributions. Full funding of retirement plans supports the dual goals of long-term fiscal stability and leveraging retirement plans to serve as effective workforce recruitment and retention tools.

4. Restructure the workforce. The recession and Great Resignation have been significant disrupters to the public workforce status quo, offering opportunities to rethink future staffing models. Workforce restructurings anticipated in 2023 and beyond stem not only from the pandemic and economic changes; they are also tied to evolving technologies touching every field from customer service to accounting to transportation. And while automation may not fully replace certain jobs, it is certain to contribute to job restructurings, the need to update job descriptions, and the consideration of part-time or temporary staffing models.

5. Take a holistic view. The pandemic normalized the idea that it is okay for workers not to be OK. Now, there’s a focus on worker mental health and burnout as real concerns that employers must take seriously. And as persistent inflation leads to consideration of compensation changes, it will no longer be enough to point to cost-of-living adjustments. Rather, employers should lean into difficult conversations with team members about their financial stress, workload, health, or childcare issues.

6. Prioritize data-driven decision making. The Institute’s recent DEI survey found a majority of governments identified workforce DEI as a priority, yet about a quarter are not tracking DEI results. Institute research also found 85% of governments are performing exit interviews, but just 37% are performing employee-satisfaction surveys, while only 11% are conducting stay interviews. Public-service workforce management cannot be viewed as something that is only managed at budget time or at the end of a worker’s career. Instead, it requires timely analysis of recruitment results, regular check-ins with existing staff, and strategic action on the data collected to avoid preventable staffing or retention problems.

Employment-law Roundup

By Contributor January 6, 2023

Law

Five Important Things to Know Going into 2023

By Amelia J. Holstrom, Esq. and John S. Gannon, Esq.

Massachusetts employers are used to the ever-changing employment-law landscape. As we close out another year and ring in a new one, it is clear that 2023 will bring new challenges and new requirements for employers throughout the Commonwealth.

Amelia Holstrom

John Gannon

We’ve rounded up the top five things employers need to know and keep an eye on as we turn the page to 2023.

Decision on Micro-units May Be Troubling for Employers

When a union attempts to organize a group of employees at a business, it files a representation petition with the National Labor Relations Board (NLRB), identifying the proposed bargaining unit, which is the group of employees the union seeks to represent and who will be eligible to vote on whether it gets to do so. Sometimes, employers will seek to add additional employees to the union’s proposed bargaining unit, as larger proposed bargaining units may be favorable for employers in representation elections.

In a recent decision, American Steel Construction, the NLRB, which interprets and enforces the National Labor Relations Act (NLRA), gave a powerful tool to unions by clearing the way for small bargaining units, often called ‘micro-units.’ Specifically, the board decided that it will approve a smaller subdivision of employees as a bargaining unit if they meet certain criteria.

Under this standard, unions are likely to be very successful in getting the NLRB to approve micro-units. As a result, employers are placed at risk of having to bargain with several small units of employees in one workplace.

NLRB to Surveil Employers’ Surveillance Measures

Businesses regularly monitor employees in the workplace. For example, employers may monitor telephone calls for quality-assurance purposes, install cameras in the workplace or dashcam systems in vehicles, or monitor communications sent and received on employer-owned devices. Such monitoring appears be under attack by the NLRB.

In early November 2022, the general counsel of the NLRB issued a memorandum regarding employee surveillance, in which she urges the NLRB to adopt a “new framework” for determining whether employer surveillance violates the law. Under this framework, violations may occur when the surveillance would tend to interfere with an employee’s rights under the NLRA or “prevent a reasonable employee from engaging” in activity protected by the NLRA.

“In a recent decision, American Steel Construction, the NLRB, which interprets and enforces the National Labor Relations Act (NLRA), gave a powerful tool to unions by clearing the way for small bargaining units, often called ‘micro-units.’.”

This could involve employee surveillance of suspected organizing activity. The employer will then get the opportunity to explain their legitimate, business-based reasons for the surveillance. At that point, the new proposed framework would require the NLRB to weigh the employer’s business needs for the surveillance against the rights afforded to employees under the NLRA. If the NLRB determines that the employer’s reasons outweigh the rights of employees, the NLRB will require the employer to disclose all electronic monitoring, the reasons for doing so, and how the employer uses the information it obtains. This crackdown on employee surveillance impacts unionized and non-unionized workplaces alike.

Update That Handbook for New Protected Characteristics

Massachusetts law prohibits employers from discriminating against employees based on a number of protected characteristics, including but not limited to race, color, sexual orientation, and gender identity. Effective Oct. 24, 2022, Massachusetts added natural and protective hairstyles to the list of protected characteristics under the law.

Accordingly, employers need to update their handbooks and other policies to reflect the additions. Your handbook should also include language on many other employment laws, including the state Paid Family and Medical Leave Act.

Changes to Paid Family and Medical Leave

Speaking of the Massachusetts Paid Family and Medical Leave Act, last month the Department of Family and Medical Leave released updated model notices reflecting new contribution rates effective January 1, 2023. If you have not already done so, those new notices need to be distributed to your entire workforce as soon as possible. Employers should also ensure that their payroll providers are planning to implement this change.

The department also updated the mandatory PFML workplace poster, which should be posted in a location where it can be easily read by your workforce. The poster must be available in English and each language which is the primary language of five or more individuals in your workforce, if these translations are available from the department.

The department is also considering changes to the PFML regulations intended to clarify employer obligations to maintain employment-related health-insurance benefits while employees are out on leave. Stay tuned in 2023 for developments on these proposed regulations.

Speak Out Act Requires Changes to Employment Agreements

On Dec. 7, 2022, President Biden signed the Speak Out Act into law (see story on page 27). The new law prohibits employers from including non-disclosure and non-disparagement provisions applicable to sexual-assault and sexual-harassment allegations and claims in agreements executed before the allegation or claim arises. It does not impact agreements with those provisions entered into after such a claim arises.

Although it may seem insignificant because it only applies to pre-dispute agreements, employers need to carefully review their confidentiality, employment, and other agreements executed by employees and ensure that the non-disclosure and non-disparagement paragraphs in those agreements do not prohibit the employee from disclosing or discussing sexual-assault or sexual-harassment allegations or claims. Employers would be prudent to include language carving out those claims.

Businesses are encouraged to continue to consult with counsel regarding these changes in labor and employment laws. The team at Skoler Abbott also wishes readers a happy and prosperous new year.

Amelia Holstrom and John Gannon are attorneys at Skoler, Abbott & Presser, P.C. in Springfield; (413) 737-4753; [email protected]; [email protected]

Speak Out Act Eases Restrictions on Harassment Claims

By Contributor January 6, 2023

Law

Talking Points

By Briana Dawkins, Michael Roundy, and Mary Jo Kennedy

Effective Dec. 7, 2022, a new federal law, the Speak Out Act, limits the enforceability of pre-dispute non-disclosure and non-disparagement agreements relating to sexual-harassment or sexual-assault disputes in the workplace. Such agreements that were entered into before an actual dispute arises are now unenforceable.

Brianna Dawkins

Michael Roundy

Mary Jo Kennedy

The Speak Out Act defines a pre-dispute agreement as one that is entered into between an employer and an employee before a sexual-harassment or assault dispute ‘arises’ — that is, before an allegation of sexual assault and/or harassment is made. Often, employers require employees to sign non-disclosure and non-disparagement agreements upon commencement of employment in order to protect confidential or otherwise private employer information. Under the Speak Out Act, these clauses can no longer be enforced with respect to any sexual-harassment or sexual-assault claim that may arise in the future.

A non-disclosure clause is defined in the act as “a provision in a contract or agreement that requires the parties to a contract and/or agreement not to disclose or discuss conduct, the existence of a settlement involving conduct, or information covered by the terms and conditions of the contract or agreement.” A non-disparagement clause is “a provision in a contract or agreement that requires one or more parties to the contract or agreement not to make a negative statement about another party that relates to the contract, agreement, claim, or case.”

A sexual-harassment dispute involves “conduct that is alleged to constitute sexual harassment under the applicable federal, tribal, or state law.” A sexual-assault dispute involves a “non-consensual sexual act or sexual contact, as such terms are defined in [federal criminal law] or similar applicable tribal or state law, including when the victim lacks capacity to consent.”

The act’s protections apply not only to complaints of sexual harassment or sexual assault towards an employee, but also to complaints about sexual harassment and assault involving other individuals. The act’s provisions do not prohibit an employee and an employer from entering a non-disclosure or non-disparagement agreement after a complaint of sexual harassment or assault has arisen. Thus, the act does not prohibit such clauses, for example, in agreements settling sexual-harassment or sexual-assault claims after they are asserted. However, employers should exercise caution, as such clauses in settlement agreements may have significant tax implications for employers under the 2017 Tax Cuts and Jobs Act.

“The act’s protections apply not only to complaints of sexual harassment or sexual assault towards an employee, but also to complaints about sexual harassment and assault involving other individuals.”

The congressional rationale expressed through the language of the act is clear. Many women who experience sexual harassment in the workplace are forced to leave their jobs or their industries, or to pass up opportunities of advancement. According to the congressional findings identified in the act, one in three women face sexual harassment or assault in the workplace, approximately 90% of whom never file a formal complaint.

The congressional findings also state that non-disclosure and non-disparagement agreements between employers and current and former employees, prospective employees, and independent contractors can perpetuate illegal conduct by silencing survivors of illegal sexual harassment and assault. Therefore, Congress finds that prohibiting such non-disclosure and non-disparagement clauses will empower survivors to speak out, hold perpetuators accountable, improve transparency around illegal conduct, and make workplaces safer and more productive for everyone.

The Speak Out Act complements the enactment earlier this year of the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act (EFASASHA). That act, which applies to employers subject to the Federal Arbitration Act, prohibits mandatory arbitration agreements between employers and employees for sexual-harassment and sexual-assault disputes. It also applies retroactively to arbitration agreements between employers and employees that have already been entered into containing such mandatory arbitration provisions.

Following the enactment of the Speak Out Act and the earlier EFASASHA, employers are encouraged to be proactive about compliance and should review their template releases and agreements to ensure that pre-dispute non-disclosure and non-disparagement agreements do not violate these laws.

It bears noting that the Speak Out Act does not invalidate non-disclosure and non-disparagement agreements relating to claims which do not involved sexual harassment or sexual assault. Thus, employers may consider including ‘carve-out’ language for pre-dispute non-disclosure and non-disparagement agreements to make clear that the pre-dispute agreements do not apply to later-arising sexual-harassment or sexual-assault claims.

Employers should review their arbitration agreements and any language pertaining to future mandatory arbitration agreements to ensure sexual-harassment and assault claims are carved out from those provisions as well. Such agreements may be revised to include clear language indicating that, with regard to claims of sexual harassment or sexual assault, employee signatories will have a choice — they are not required to submit to arbitrations and may bring their claims in court. Employers may also wish to consider updating sexual-harassment policies in their employment handbooks to include similar clarifications.

In reviewing such employment agreements, confidentiality agreements, arbitration agreements, and employee handbook policies as they relate to sexual harassment and sexual assault for compliance with the Speak Out Act and the EFASASHA, it is recommended that employers seek legal advice and guidance from an experienced employment-law attorney.

Briana Dawkins, Michael Roundy, and Mary Jo Kennedy are attorneys in Bulkley Richardson’s Employment Law practice.

Yes, You Can Fire That Guy!

By Contributor January 5, 2023

Law Special Coverage

Processes, Procedures, Practices, and Protocols Are Kings

By Tanzania Cannon-Eckerle, Esq.

In this new, enlightened era of increased employee rights and employee shortages, many employers are scared to terminate employees in fear of litigation — or of not having enough staff to enable the company to produce at the desired level.

The second question we can save for later, but I will mention now that additional widgets will most likely never justify the havoc that a toxic employee will create.

In my opinion, the answer to the first question is simple: do not fear what you cannot control. You cannot control who goes down to the courthouse to file a complaint. Just be prepared for the battle. So, yes, you can fire that guy (or girl, or them). The question is, should you?

Don’t Shoot Before Aiming — Consider Your Goal First

Don’t respond emotionally or consider someone else’s emotional response. Stop and think. Ask, why is this employee on the chopping block (i.e., what did they allegedly do)? How did they get there (was the proper process followed)? Who placed them there (who is bringing this up? Does the person have the authority to raise this issue? Anything nefarious here)?

Notice that I did not ask ‘who’ this employee is. We don’t assess the ‘who’ on the chopping block. It doesn’t matter who did it. It matters what was done, why it was done, whether it was actually done, and whether it rises to the level of termination.

Essentially, assess the conduct. What do you hope to attain by terminating this employee? A safer workplace? Good. To stop disruptions in operations or the beginnings of a hostile work environment? Good. Now prove it.

Prove It (in Preparation for the Battle)

If you can’t prove it, abort the mission. Go back to the drawing board. Go to plan B. Joking aside, preparing for appropriate employee terminations is a long game. It starts with consistent application of procedures, processes, policies, and practices. Probably the most important thing is documentation.

Consistent application of the ‘four Ps’ over time may take an investment of time and money into creating them if you don’t already have them, and training managers and supervisors in the art of holding employees accountable.

“Preparing for appropriate employee terminations is a long game. It starts with consistent application of procedures, processes, policies, and practices. Probably the most important thing is documentation.”

Tanzania Cannon-Eckerle

Among other things, there should be consistent application of all conduct and performance-related policies. There should be consistent application of all of the policies, procedures, and practices associated with managing human-resources functions such as leaves of absence and request for accommodations, as well as employee complaints made and investigated.

All of these should contain a component that enables tracking the underlying data and providing the ability to obtain and distribute the underlying information that supports assertions made. So you want to terminate an employee because he has been to work only seven out of 19 days, and on the seventh day he violated a safety policy and then stole your candy bar? You should be able to show documentation of these occurrences that were created in real time — including, of course, when the company had the initial conversation with him for being absent the first few times, checking to make sure it wasn’t actually a protected leave of absence.

Once you have the documentation, sit him down and tell him that he is being terminated from the job because of his inability to perform and because of his violation of the attendance policy. Have a witness. If you don’t have the documentation, sit him down, put him on notice that he is in the line of fire, and start documenting. Provide him with expectations, and then document it thereafter. Most likely, this will just delay the inevitable, but you never know. Regardless, at least you will have something to take with you into battle.

Make the Business Decision Informed by the Data, and Document It

Please know, you can terminate an employee for any reason at any time so long as it is not an illegal reason. That means you cannot terminate because of an employee’s protected status or activity or in a manner inconsistent with a collective bargaining agreement or other employment agreement.

As such, if you want to terminate a person for business reasons that have nothing to do with the person and everything to do with your business needs, that is OK too. But you should prove it. Do you have the data to back up your decision? You don’t have to have it, but if that person files a complaint, you will want it, and you will want to be able to attest that the business analysis was done prior to the termination. Otherwise, they will scream ‘pretext,’ meaning you just made that up. Plus, doing the analysis first may help you assess the risks of terminating an employee for business reasons.

There are always risks. Is it cheaper to keep him after assessing those risks, or not? That is a legitimate fiscal business concern. There are risks associated with not terminating employees as well. Be sure to document those, too — not just in the business case (e.g., budget concerns), but also in the ‘do I have enough to terminate this employee for conduct?’ case. Some examples: if I don’t terminate, there will be allegations that I did not maintain a harassment-free workplace; or, I terminated another employee for this same behavior last year, and there is no legitimate reason distinguishing this employee from being terminated for the same; or, he keeps violating safety procedures, and someone may get hurt.

Terminate with Grace and Pay What You Owe

Be respectful to all employees, including those who are coming and going. He knows what he did to get terminated (if you have done it right). There is no legitimate reason to be rude about it.

Terminating with dignity or grace does not mean that you should not terminate an employee. Once an employee gets to termination, he should have already had an opportunity to cure the conduct or behavior for which he is getting terminated. As such, by the time the writing is on the wall, he should not be surprised. If he is, that might partly explain why he is getting terminated.

Next, make sure you reach out to your employment counsel for assistance with properly preparing a termination package (necessary correspondence, pay requirements, and timing considerations). A misstep here can get you in hot water — triple hot water. Failure to pay an employee what is due at termination has no defense, and the remedy to the employee includes three times the wages due. Call your counsel before terminating.

I know this article is not going to make me popular among some folks. I am not trying to be cold. I am just being practical. Your employees are your life force. I get it. I am one. But they are also human capital. If you manage your human capital like you manage your non-human capital, then you should be able to terminate employees without fear.

Processes, procedures, practices, and protocols are kings. Remember, keeping a toxic employee is more costly, in a variety of ways, than the cost of defending a claim — that is, if you have your ducks in a row. So get your ducks in a row. Plus, the remainder of your staff will appreciate the decision. Heck, the terminated employee may appreciate it in time; sometimes it just isn’t a good fit. Cut them free to find their better role. In the case of the business decision, your shareholders or business partners will appreciate your fiscal responsibility.

Tanzania Cannon-Eckerle, Esq. is chief legal and administrative officer for the Royal Law Firm; (413) 586-2281.

Cyber Center Brings Many Benefits

By Contributor January 4, 2023