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Speaker Calls for Employer Policy Engagement

Posted by Christopher Geehern on Sep 15, 2017 11:33:00 AM

The first time Robert DeLeo spoke to the Associated Industries of Massachusetts after being elected Speaker of the Massachusetts House of Representatives in 2009, unemployment was 8.8 percent.

The new speaker drove to the AIM speech past empty buildings along Route 128. Traffic was minimal. Consumer and business confidence was at a nadir in the wake of the financial crisis and Great Recession.

Speaker DeLeo reminisced about that first speech this morning as he returned to address more than 300 business leaders at the AIM Executive Forum. He noted that unemployment now stands at 4.2 percent and that Massachusetts employers added 11,000 jobs in August alone. And Boston is on the short list of cities being considered for major development by Amazon just as General Electric settles into its new corporate headquarters.

The speaker attributed the economic resurgence in part to a unique collaboration forged by legislators and the business community to develop pro-business policies and that also benefit the society at large.

“They are not mutually exclusive. One does not detract from the other,” Speaker DeLeo said in a wide-ranging speech during which he thanked AIM and employers for helping to build consensus on issues such as education, wage equity and the Pregnant Workers Fairness Act.

“We are very mindful of the impact that changes might make on our employers, which we always remember are our economic engine,” he said.

The speaker outlined several key priorities as the Legislature heads in the fall, including moderating the cost of health insurance and monitoring what has become a persistent sluggishness in state tax revenues.  That sluggishness is affecting states throughout the country, despite the overall healthy economy.

“We obviously haven’t seen the revenue growth we have seen in past economic recoveries,” Mr. DeLeo said.

The speaker expressed optimism in the wake of a recent report that health-care costs in Massachusetts increased at a moderate 2.8 percent in 2016, well below the growth benchmark established by the 2012 health-cost control law. Such stability is essential at a time when federal health-care policy remains in flux.

“We have been successful in driving down health-care spending growth, even in a difficult and unpredictable environment,” he told the crowd.

“We appreciate willingness of business community to work with us and nd their patience on how to move forward.”

Topics: Massachusetts Legislature, House Speaker Robert DeLeo, AIM Executive Forum

Legislature Levies Medicaid Assessment Minus Reforms

Posted by Katie Holahan on Jul 26, 2017 4:53:35 PM

The Massachusetts Legislature today levied a $200 million tax on employers to cover a shortfall in the MassHealth program without making long-term structural changes needed to solve the problem.

StateHouse-resized-600.pngThe House of Representatives and Senate took the action despite pleas yesterday from the Baker Administration and the business community to consider the assessment and the long-term reforms as a package. AIM believes the financial problems at MassHealth, which provides health insurance to 1.9 million residents, will become more severe without significant reforms.

The assessment would increase the Employer Medical Assistance Contribution (EMAC) and fall most heavily on companies where employees use MassHealth instead of an employer health plan. The assessment would be partially offset by a two-year Unemployment Insurance rate adjustment that would save employers $335 million over two years versus current rates.

“The 4,000 employer members of Associated Industries of Massachusetts (AIM) are deeply disappointed that the Legislature has again decided to impose an assessment on employers without reforming the MassHealth program and reining in the crippling cost of health insurance,” said John Regan, Executive Vice President of Government Affairs at AIM.

“We note that the Legislature has pledged to pursue MassHealth reforms at a later date. We look forward to working with them on those reforms.”

The Legislature initially passed the reform-free assessment on July 7 as part of the budget for Fiscal Year 2018. Governor Charlie Baker returned that section of the budget to the Legislature 10 days later and asked lawmakers to pass the full package of reforms designed to place MassHealth on a firm financial footing.

The proposed reforms include:

  • Restructuring MassHealth coverage for non-disabled adults to look like commercial insurance coverage;
  • Moving 140,000 people with incomes more than the federal poverty level out of MassHealth and into ConnectorCare;
  • Shifting 230,000 MassHealth members from standard MassHealth coverage, which includes coverage for long-term care, into CarePlus, which does not;
  • Requiring the commonwealth to petition the federal government to re-establish the prohibition against employees who are offered employer-sponsored insurance from seeking coverage through MassHealth.

It is uncertain whether the governor will sign the newest version of the assessment.

“Employers are thus left not only to struggle with the rising cost of providing health insurance to their own employees, but to bail out an unsustainable public insurance program as well,” Regan said.

Topics: Massachusetts Legislature, Health Insurance, Employer Health Assessment

Boston Lawmaker Named Chair of Ways & Means Committee

Posted by Christopher Geehern on Jul 13, 2017 2:18:38 PM

House Speaker Robert DeLeo on Sunday named a Boston legislator with extensive experience in health-care policy to chair the Ways and Means committee that crafts the state budget.

Rep. Jeffrey Sanchez of Jaimaica Plain will take over from Representative Brian Dempsey, D-Haverhill, who announced last week that he will resign from the Legislature to take a job at lobbying firm ML Strategies.

Sanchez.jpg"Representative Sanchez is an exceptionally thoughtful legislator who has worked with Associated Industries of Massachusetts on some of the most complex issues facing the business community, especially managing the cost of health care," said John Regan, Executive Vice President of Government Affairs at AIM.

"We look forward to working with him in his new role as chair of the Ways & Means Committee."

Sanchez currently chairs the Health Care Financing Committee and previously co-chaired the Legislature's Joint Committee on Public Health. He has been active on economic justice issues and legislation aimed at addressing racial and ethnic health disparities, and recently co-chaired a special commission that examined price disparities in the health care sector.

His nomination will come before a Democratic caucus today.

Hinting at the potential for challenging health care policy changes at the federal level, DeLeo told State House News Service that the work Sanchez has done as committee chairman "will be crucial as we address the health care challenges inherent to the budget and grapple with uncertainty on the national level." 

Dempsey had served in the Legislature since 1991 and has overseen the past six state budgets. He will become senior vice president and chief operating officer of ML Strategies, an AIM member, in September.

“AIM congratulates Chairman Dempsey and looks forward to working with him in his new role at ML Strategies,” Regan said.

“Mr. Dempsey has always been willing to consider the opinions of the business community and has been a thoughtful voice of moderation in guiding the fiscal course of the commonwealth.”

Dempsey said in a statement: "It has been an incredible honor to serve the people of Haverhill in an elected capacity since 1988. I am proud of all that we have been able to accomplish together. I would like to thank all of my supporters, friends and family for their encouragement and help through the years.

"While I am moving on to a new chapter in my life, Haverhill will always be my home, and we will continue to keep the city moving in the right direction."

Topics: Massachusetts Legislature, Massachusetts House of Representatives

AIM, Advocates Reach Deal on Protections for Pregnant Workers

Posted by Brad MacDougall on Mar 1, 2017 3:56:22 PM

Associated Industries of Massachusetts has reached agreement with the advocacy group MotherWoman on compromise legislation to extend employment protection to pregnant workers in Massachusetts.
Pregnant2.jpg
The contours of the agreement were established late last year and affirmed recently when Senator Joan Lovely of Salem and Representative David Rogers of Belmont refiled the compromise bill.

The Pregnant Workers Fairness Act would require employers to make reasonable workplace accommodations for pregnant employees — more frequent or longer breaks, temporary transfer to a less strenuous or hazardous position, a modified work schedule, or seating for those whose jobs require extended standing. Businesses would not have to provide those accommodations if doing so would create an undue business hardship, defined as something “requiring significant difficulty or expense.”

AIM opposed early versions of the bill during the 2015-2016 legislative session because of concern among employers that the legislation provided an applicant or employee with unlimited power to reject multiple and reasonable offers of accommodation by an employer. The compromise bill addresses that concern and others

Richard C. Lord, president and CEO of AIM, said “AIM was pleased to work together respectfully on this bill with Senator Lovely, former Representative Ellen Story, and advocates from MotherWoman.  It is easy to confuse opposition to a draft of a bill with opposition to the issue itself. AIM is always willing to work with those seeking honest and effective compromise. That is exactly what happened with this legislation.”

Other AIM concerns addressed by the bill:

  • Provides clarity regarding definitions and terms related to current employees in need of accommodations related to pregnancy.
  • Aligns state and federal laws regarding reasonable accommodation as it relates to the essential functions of the job.
  • Provides flexibility rather than a mandating specific types of accommodations for employers and employees.
  • Provides a reasonable mechanism for employees and the employer to achieve a reasonable accommodation by engaging in a defined process, eliminating a concern by businesses that an employee could reject multiple reasonable offers of accommodation.
  • Adds language allowing the employer to evaluate undue hardship of an accommodation and the ability of employee to perform the essential functions of the job as it relates to an employer’s program, enterprise or business.
  • Provides opportunity for an employer to request documentation for certain cases to ensure that accommodations are reasonable for both employees and employers.
  • Limits provisions to current employees instead of employees and job applicants.
  • Reduces unnecessary burdens and allows for electronic or other means other than a “poster” for notifying employees.
  • Allows for certain accommodations to be either paid or unpaid.

MotherWoman said in a statement: “We are excited that we've reached agreement on how to level the playing field for the hard-working women of Massachusetts.

"Through a great collaborative effort among legislative sponsors, Rep. Dave Rogers, Rep. Ellen Story and Sen. Joan Lovely, our dedicated legal advocates at A Better Balance, and the team at AIM — who were so generous with their time and their attention to detail — we have a better proposal, which led to the refiling of this bill. It’s an important support for moms, children and families, and it makes good sense for both employers and employees."

The compromise faces a long process of legislative consideration. Senator Lovely expects the refiled bill will go before the Joint Committee on Labor and Workforce Development and its new chairs - Representative Paul Brodeur of Melrose and Senator Jason M. Lewis of Winchester - with a hearing scheduled later this year.

AIM and MotherWoman expect to support the measure at that time and hope that the bill will be considered by the full Legislature later in the session and sent to the governor for his approval.

Topics: Massachusetts Legislature, Employment Law

Raising Minimum Wage Would Boost Costs for Majority of Employers

Posted by Christopher Geehern on Jan 3, 2017 7:55:31 AM

Three-quarters of Massachusetts employers would face increases in their compensation costs if state lawmakers pass a $15 per hour minimum wage, according to two recent surveys by Associated Industries of Massachusetts.

TeenJobsCrop.jpgAnd those compensation increases would be enough to force some companies to postpone hiring or consider leaving the commonwealth altogether.

Both the monthly survey question attached to the AIM Business Confidence Index in December and the annual AIM HR Practices Survey, also taken a December, found that 13 percent of companies employed people at the former $10 per hour Massachusetts minimum wage, while another 24 percent employed people at between $10 and $15 per hour and would have to raise those wages if the minimum moved to $15.

Thirty-four percent of companies employed people at slightly more than $15 and would have to increase pay for some of those employees to deal with wage compression. Thirty-seven percent of companies said they pay much more than $15 per hour and will not be affected by a minimum-wage increase.

The Massachusetts minimum wage rose by $1 to $11 per hour on January 1, the final step in a three-year increase.

“While we are empathetic with the challenges facing lower wage staff, it is also the case that we will employ fewer hourly employees at higher minimum wages. Each dollar increase costs our company $1.5 million per year,” wrote one employer on the Business Confidence Survey.

Another commented: “This would be too much for the small business community to absorb. You'll lose many small businesses. The Massachusetts legislature should concentrate on cutting costs and make Massachusetts a more affordable place to live.”

AIM believes that raising the minimum wage to $15 per hour, while emotionally appealing and politically expedient, is an ineffective way to address income inequality.

Raising the minimum wage, in fact, represents a fundamental distraction from addressing the real economic impediments that prevent all Massachusetts citizens from sharing in the state’s prosperity. These are the same impediments, ironically, that contribute to the persistent skills shortage that threatens innovation and economic growth in Massachusetts.

Workers are ultimately compensated according to the skills, education, work ethic and value they bring to the enterprise.

Minimum-wage increases impose an arbitrary standard of value on entry-level jobs, disproportionately burdening small businesses while creating no long-term improvement in living standards for people at the lower end of the wage scale. The issue in an economy with a staggering 3.3 percent unemployment rate is not how to raise the wage but instead how to raise the economic value of each employee.

Consider a sandwich shop in Cambridge serving food to employees of companies such as Google, Biogen, or Novartis that have made Massachusetts a global center for information technology, biosciences, research and development. Many of the engineers, software designers, researchers and professional services workers who come to the restaurant for lunch make six-figure incomes from companies locked in a pitched battle for talent that will determine their success or failure in the global markets.

Given the degree to which those highly compensated employees are bidding up housing and other prices in Massachusetts, increasing the minimum wage for the restaurant workers represents a dead-end and pyrrhic victory that keeps them outside the economic mainstream.

The task instead should be to pave the way for those restaurant employees to cross the street and join the high-value economy, which will once and for all allow them to support their families and achieve financial stability.

How does that happen? Start by improving the ability of our educational system to teach all students; reduce the long waiting lists for vocational schools; make community colleges accountable for graduating students with the skills needed in the marketplace; create more high-tech software coding academies; and promote other efficient structures to provide people with the skills to succeed in the areas of fastest economic growth.

Those tasks are far more complex than raising the minimum wage but ultimately more effective. The alternative is not attractive.

“If we move to minimum wage of $15 per hour in Massachusetts, we would immediately terminate many unskilled positions and use temps.  That would allow us to better eliminate labor in the slower seasons.  Note that our competition is located outside Mass and would end up with a significant competitive advantage,” said one employer in the survey.

 

Topics: Compensation, Minimum Wage, Massachusetts Legislature

Beacon Hill Debrief: How Did Employers Do?

Posted by Christopher Geehern on Sep 29, 2016 2:45:43 PM

AIM Executive Vice President John Regan recently discussed the 2015-2016 Beacon Hill legislative session and what it meant for employers on Comcast Newsmakers.

Topics: Massachusetts Legislature, Associated Industries of Massachusetts, Massachusetts employers

Which Issues Matter to You? Take the AIM Issues Survey

Posted by John Regan on Sep 26, 2016 7:30:00 AM

The two major candidates for president will debate tonight. Will they address issues that matter to employers?

statehouse.jpgThe Massachusetts Legislature will kick off its 2017-2018 session in January. Will lawmakers identify the public-policy challenges that most concern Massachusetts employers as they seek to grow, create jobs and generate economic opportunity?

Employers have an important role to play in the debate over how to improve the Massachusetts economy. How can you ensure that your opinions and good ideas are heard? Start by participating in the biennial Issues Survey from Associated Industries of Massachusetts.

The commonwealth’s largest and most powerful employer association wants to hear from you so it can accurately represent the interests of employers both large and small before Massachusetts state government. Which issues pose a threat to your business? What steps could Massachusetts take to improve the business climate? How can Massachusetts assure its global competitiveness in a world in which economic growth is becoming ever more concentrated?

AIM will use responses from the Issues Survey to construct a pro-growth Legislative Agenda for the 2017-2018 Beacon Hill session. Legislators rely upon the AIM Legislative Agenda to identify the issues of importance to the Massachusetts employer community.

All responses will remain confidential.

Why participate? As AIM’s Chairman Dan Kenary remarked at this year’s Annual Meeting:

“The late House Speaker Tip O’Neill’s maxim that ‘all politics is local’ has never been truer that it is today. And if all politics is local, the employer community represents a sleeping giant with enormous potential to drive sound public policy from the bottom up.  Call it entrepreneurial populism - those of us who risk everything to employ our neighbors in Boston, Worcester, Springfield or more than 348 other communities in Massachusetts must tell our stories to the representatives, senators and member of Congress in whose districts we operate.”

We stand at a singular moment in the history of Massachusetts as the forces of political moderation struggle to hold back furious attacks from progressive insurgents who see business and employers as the problem rather than a force for good. The ability of employers to ensure economic stability and continued opportunity rests entirely on their willingness of individuals to add their voices to the public debate.

AIM will publish its Legislative Agenda in January, immediately after President and Chief Executive Officer Richard C. Lord delivers his annual State of Massachusetts Business address.

AIM represents the interests of 4,000 companies from every sector of the economy.

Take the Issues Survey

 

Topics: Massachusetts Legislature, Massachusetts employers

Legislative Scorecard Paints Tale of Two Chambers

Posted by John Regan on Aug 29, 2016 7:35:05 AM


Associated Industries of Massachusetts (AIM) today released its 2015-2016 Legislative Scorecardd, the most widely read report on the voting record of Massachusetts legislators on issues important to employers. AIM releases the Legislative Scorecard at the end of each two-year session to ensure that members know legislators’ records on key economic and public-policy issues, and to recognize lawmakers who understand the importance of a vibrant economy for all residents.

Scorecard2016.jpgThe 2015-2016 legislative session was a tale of two chambers. While the House of Representatives and Speaker Robert DeLeo successfully forged consensus on important measures such as wage equity and energy, the Senate hewed to a more progressive, ideological approach that produced a steady stream of bills with the potential to harm the Massachusetts economy. The divergent approaches are reflected in the Legislative Scorecard results.

Virtually every member of the House of Representatives earned grades of 50 percent or higher and 126 reps ended the session at 75 percent or better. The ratings were based on a dozen roll-call votes dealing with issues ranging from economic development to restricting the use of non-compete agreements.

In the Senate, meanwhile, only five of 40 members managed grades above 50 percent and a staggering 15 Senators posted scores of 18 percent. The highest score in the Senate belonged to Senator Don Humason of Westfield at 59 percent.

The Senate scores were based upon many of the same issues debated by the House, as well as additional votes on so-called wage theft and efforts to modify the commonwealth’s punitive treble damages law. Two key Senate votes – on energy and non-compete agreements – were not included because they were conducted as voice votes.

The Legislative Scorecard selects votes that reflect the objectives of The Blueprint for the Next Century, AIM’s long-term plan for economic prosperity in Massachusetts. The plan maintains that only a vibrant, private-sector economy creates opportunity that binds the social, governmental, and economic foundations of our commonwealth.

The Blueprint contains four specific recommendations against which AIM measures public policy issues:

  1. Develop the best system in the world for educating and training workers with the skills needed to allow Massachusetts companies to succeed in a rapidly changing global economy.
  2. Support business formation and expansion by creating a uniformly competitive economic structure across all industries, geographic regions and populations, rather than picking winners and losers.
  3. Establish a world-class state regulatory system that ensures the health and welfare of society in a manner that meets the highest standards of efficiency, predictability, transparency and responsiveness.
  4. Moderate the immense long-term burden that health care and energy costs place on business growth.
"We hope that employers find the Legislative Scorecard informative, and that they will share the results with your colleagues and associates," said Richard C. Lord, President and Chief Executive Officer of AIM.

Topics: Massachusetts Legislature, Massachusetts senate, Massachusetts economy, Massachusetts House of Representatives

Employer Confidence Falls Again in July

Posted by Christopher Geehern on Aug 2, 2016 9:19:26 AM

A resurgent US stock market, better-than-expected job growth and growing labor-force participation failed to make believers of Massachusetts employers during July as business confidence fell for a second consecutive month.

BCI.July.2016.jpgThe Associated Industries of Massachusetts Business Confidence Index (BCI) declined one point to 55.1 last month, leaving it more than four full points lower than in July 2015. The confidence reading remained above the 50 mark that denotes an overall positive economic outlook, but optimism dimmed across the board on employment, the Massachusetts economy and employers’ outlook on their own companies.

The BCI has now declined in three of the past four months.

Economists suggest that employers may be caught between the expectation of an expanding US economy and concern about anemic growth and instability overseas. It’s a paradox that has resulted in the stock and bond markets, which usually move in opposite directions, rising in tandem this year.

“We see a familiar pattern in what is now the fourth longest economic expansion since World War II - employers remain optimistic about the state of the economy but it is an optimism marked by fits and starts and reactions to all sorts of political and economic events,” said Raymond G. Torto, Chair of AIM's Board of Economic Advisors (BEA) and Lecturer, Harvard Graduate School of Design.

The AIM Index, based on a survey of Massachusetts employers, has appeared monthly since July 1991. It is calculated on a 100-point scale, with 50 as neutral; a reading above 50 is positive, while below 50 is negative. The Index reached its historic high of 68.5 on two occasions in 1997-98, and its all-time low of 33.3 in February 2009.

The index has remained above 50 since October 2013.

Constituent Indicators Fall  

Most of the sub-indices based on selected questions or categories of employer declined during July.

The Massachusetts Index, assessing business conditions within the commonwealth, dropped 1.3 points during July and 0.3 points over the year to 57.2. The U.S. Index of national business conditions, in contrast, bucked the downward trend of the past year (in which it dropped 3.0 points) by gaining 1.5 points. Even so, employers have been more optimistic about the Massachusetts economy than about the national economy for 75 consecutive months.

The Current Index, which assesses overall business conditions at the time of the survey, fell 0.2 points to 55.3 while the Future Index, measuring expectations for six months out, slid 1.8 points to 54.8.

“July marked the first time since September 2015 that employers were more positive about current conditions than those six months from now. It’s something to watch, since confidence drives employer decisions on hiring and investment moving forward,” said Elliot Winer, Chief Economist, Northeast Economic Analysis Group LLC.

“It’s also worth noting that employer confidence in their own companies has declined by 5.8 points, albeit from a high level, during the past 12 months.”

Operational Views Dim

Indeed, the three sub-indices bearing on survey respondents’ own operations all weakened.

The Company Index, reflecting overall business conditions, fell 1.8 points to 55.9, while the Sales Index lost 1.4 points to 55.6 and the Employment Index dropped 2.0 points to 52.5.

The AIM survey found that nearly 39 percent of respondents reported adding staff during the past six months while 19 percent reduced employment. Expectations for the next six months were stable – 37 percent hiring and only 10 percent downsizing.  

“A tightening labor market is finally beginning to put upward pressure on wage growth as employers compete for skilled workers,” said Professor Michael D. Goodman, Executive Director of the Public Policy Center (PPC) at UMass Dartmouth.

“Wages rose 2.6 percent for the 12 months ended in June, the fastest annual growth rate since 2009. While this is welcome news for the state’s working families, whose wages have been stagnant for an extended period, it represents a challenge for those employers with limited pricing power who can expect it to be increasingly difficult and expensive to obtain the labor they need to support expected growth in coming months. ”

 Confidence levels in July were higher in Greater Boston (56.8) than in the rest of the commonwealth (52.2).  Non-manufacturing companies enjoyed a significantly brighter outlook at 58.0 than manufacturing employers, who posted an overall confidence level of 52.6. 

Beacon Hill and Business

AIM’s President and CEO Richard C. Lord, a BEA member, said employers should take encouragement from the moderate approach to business issues taken by state lawmakers during the two-year legislative session that ended Sunday night. Beacon Hill balanced a difficult budget with no tax increases, passed economic development and energy legislation, and developed a consensus pay-equity measure that balances the needs of employers and workers.

“The Legislature and the Baker Administration again showed an understanding of the factors that contribute to business growth and job creation,” Lord said.

“We give particular credit to House Speaker Robert DeLeo, who forged meaningful compromises on pay-equity, non-compete agreements and other key issues.”

Topics: Massachusetts Legislature, AIM Business Confidence Index, Massachusetts economy

Lawmakers OK Energy, Economic Bills; Non-Competes Remain Unchanged

Posted by John Regan on Aug 1, 2016 8:40:56 AM

A frenzied conclusion to the 2015-2016 Beacon Hill legislative session produced far-reaching measures on energy and economic-development, but no agreement on restricting the use of non-compete agreements.

statehousedome.jpgA consensus pay-equity bill supported by the business community passed a week earlier and is due to be signed by Governor Charlie Baker today.

Richard C. Lord, President and CEO of AIM, said employers should take encouragement from the fact that the final bills that passed around midnight Sunday largely reflected the moderate approach to business issues taken by the House of Representatives.

“The House and the Baker Administration again showed an understanding of the factors that contribute to business growth and job creation,” Lord said. “We give particular credit to House Speaker Robert DeLeo, who forged meaningful compromises on pay-equity, non-compete agreements and other key issues.”

He also noted that lawmakers and Governor Baker worked responsibly to balance a difficult budget with no tax increases.

The energy bill commits Massachusetts utilities to purchasing up to 30 percent of the state’s electricity from offshore wind generation and hydropower imported from Canada or upstate New York. The final version rejects a troublesome proposal to double the state's minimum requirements for renewable energy and also maintains funding mechanisms for development of natural gas pipelines.

“The bill will raise electricity rates as the commonwealth transitions to non-carbon fuel sources. That said, lawmakers approached the issue in a careful and thoughtful manner that recognizes the need to include a variety of generation sources for electricity,” said Robert Rio, Senior Vice President of Government Affairs at Associated Industries of Massachusetts.

Average electric rates in Massachusetts are the third highest in the nation for industrial ratepayers, and more than twice as high as companies pay in the competitor state of North Carolina. Those costs place employers at a significant disadvantage when competing with businesses located in other areas of the country.

The breakdown of negotiations on non-compete agreements brought a stunning, if temporary, end to a contentious effort by venture capitalists to do away with current law governing non-competes. AIM has waged a protracted battle to defend the vast majority of Massachusetts employers who wish to preserve the use of non-competes, but the association nevertheless negotiated a reasonable compromise measure that passed the House of Representatives.

The House bill would have limited the duration of non-competes to one year and required employers who did not compensate workers at the time they signed a non-compete to pay 50 percent of the worker’s salary during the non-compete period. A separate Senate bill would have limited the term of non-competes to three months and required employers to pay 100 percent of a worker’s salary regardless of existing financial compensation.

The deadlock means that opponents of non-competes will have to return to square one and refile their proposals when the 2017-2018 legislative session begins in January.

“The outcome of negotiations on the use of non-competes is disappointing to the business community, which worked in good faith with the House on a reasonable compromise. AIM continues to believe that non-compete agreements with common-sense limitation protect intellectual property and stimulate investment and innovation in Massachusetts,” said Brad MacDougall, Vice President of Government Affairs at AIM.

The economic development bill includes $500 million in authorized borrowing for the MassWorks infrastructure program, $45 million in capital dollars for brownfields environmental projects and $45 million for equipment for career and technical education, among other measures. The bill also features a new tax deduction intended encourage families to save for college tuition costs.

The pay-equity bill is intended to promote salary transparency, limit upfront questions to job candidates about salary history, and encourage companies to conduct reviews to detect pay disparities. It explicitly recognizes legitimate market forces such as performance and the competitive landscape for certain skills that cause pay differences among employees. 

 Register for AIM Brown Bag Webinar:   Legislative Wrap-Up

 

Topics: Massachusetts Legislature, Economic Development, Non-Compete Agreements, Energy

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