AIMBlog_Logo_Resized

Baker Signs Energy, Non-Compete Bills; Vetoes Patent Trolling

Posted by John Regan on Aug 13, 2018 8:00:00 AM

Governor Charlie Baker last week signed a clean-energy bill and new rules governing the use of non-compete agreements, but vetoed a “patent-trolling” provision that could have prevented companies from protecting their intellectual property.

Baker.2017The energy bill was among 53 pieces of legislation passed in the waning hours of the formal legislative session that Baker signed on Thursday. His actions on non-competes and patent-trolling, both of which were part of a $1.2 billion economic development bill, came on Friday.

AIM supported the energy measure and the compromise bill on non-competes but opposed the patent-trolling language.

“We are grateful to Governor Baker for thoughtful decisions that will benefit both the business community and the larger community,” said Richard C. Lord, President and Chief Executive Officer of Associated Industries of Massachusetts.

AIM had urged Baker to strike the problematic patent-trolling language from the economic development bill.

“The patent-trolling language contained in the bill pending before you is materially different from the compromise language approved by the Joint Committee on Consumer Protection and Professional Licensure committee (S.2432),” Lord wrote to Baker early last week.

“The changed language appeared within the final days of the legislative session and has raised significant concerns from employers who believe it may limit the ability of companies to protect intellectual property.”

AIM supported other portions of the economic-development bill ranging from an apprenticeship tax credit to changes to the Economic Development Incentive Program.

The non-compete language signed by Baker mirrors an agreement that AIM and other business groups reached two years ago with House Speaker Robert DeLeo. The measure limits non-competes to one year and gives employees the opportunity to consult a lawyer when signing a non-compete but does not require companies that compensate employees at the time they sign non-competes to pay them again during the restricted period.

The new energy bill authorizes an additional procurement of offshore wind power, increases the renewable portfolio standard that governs the amount of clean energy utilities must purchase, and establishes an energy storage target. The renewable portfolio standard will increase by one percent until the end of 2019, then by two percent each year until the end of 2029. It would then set the state on a track of one-percent increases each year thereafter.

Topics: Non-Compete Agreements, Energy, Charlie Baker, Patent Trolling

Business Confidence Flat During July

Posted by Christopher Geehern on Aug 7, 2018 9:07:47 AM

Confidence levels among Massachusetts employers were virtually unchanged during July as strong economic growth balanced persistent concerns about tariffs and escalating international trade tensions.

BCI.July.2018The Associated Industries of Massachusetts Business Confidence Index (BCI) dropped 0.1 point to 61.2 last month after tumbling more than five points in June. The drop left the BCI three-tenths of a point lower than a year ago, though still comfortably within optimistic territory.

Raymond G. Torto, Chair of AIM's Board of Economic Advisors (BEA) and Lecturer, Harvard Graduate School of Design, said employers grew justifiably bullish about the state and national economies during July while expressing uncertainty about their own prospects.

“The Manufacturing Index has dropped more than eight points during the past two months, pretty much concurrent with the escalation of trade tensions that are increasing prices, disrupting global supply chains and putting some companies in the crosshairs of retaliatory tariffs,” Torto said.

One BCI survey participant in the construction industry wrote: “The tariffs are escalating building costs. We get several price increases per week. It’s harder for most people to have the means to spend on up-keep, much less renovation or new construction.”

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

The constituent indicators that make up the overall Business Confidence Index were mixed during July.

The Massachusetts Index assessing business conditions within the commonwealth gained 2.3 points to 65.1, leaving it 1.9 points ahead of July 2017.

The U.S. Index ended the month at 61.9, rising 1.9 points after sliding 9.3 points the previous month. The US Index was 4 points better than a year ago.

July marked the 101st consecutive month in which employers have been more optimistic about the Massachusetts economy than the national economy.

The Current Index, which assesses overall business conditions at the time of the survey, rose 0.1 point to 63.6. The

Future Index, measuring expectations for six months out, fell 0.4 point. The Current Index gained 2.4 points during the year while the Future Index lost 3.1 points.

Operational Views

Employer views of their own companies weakened.

The Company Index declined 1.5 points to 59.7, down 2.5 points for 12 months. The Employment Index ended the month at 54.5, a 0.5-point decrease for the month and 1.2 points lower than a year ago. The Sales Index lost 0.6 point for the month and 2.3 points for the year.

Non-manufacturing companies (63.0) were more optimistic than manufacturers (58.6). Companies in the eastern part of Massachusetts (63.6) were more bullish than those in the west (57.6).

“The Massachusetts economy itself remains strong and it accelerated sharply in the second quarter, bucking the expectation of slower growth due to low unemployment and demographic constraints,” said Elmore Alexander, Dean of the Ricciardi College of Business, Bridgewater State University.

“The recent surge in state economic growth reflects strong gains in employment, earnings, and consumer and business spending.”

New Laws in Massachusetts

AIM President and CEO Richard C. Lord, also BEA member, said employers spent much of July digesting a raft of new public policies passed by the Massachusetts Legislature as it wrapped up the formal portion of its 2017-2018 session.

“Employers face new restrictions on the use of non-compete agreements, imposition of paid family leave, an increased minimum wage and a wholesale shift in the generation of the energy they use,” Lord said.

“And that’s on top of the $200 million annual assessment on employers to close a budget gap in the MassHealth program. Employers clearly have a lot to think about.”

Topics: International Trade, AIM Business Confidence Index, Massachusetts economy

AIM Urges Governor to Sign Energy Bill, Parts of Economic Development Bill

Posted by Christopher Geehern on Aug 6, 2018 8:00:00 AM

Associated Industries of Massachusetts on Friday urged Governor Charlie Baker to sign a clean-energy bill and approve portions of a $1.2 billion economic-development bill passed by the Legislature earlier in the week.

State_House_and_One_BeaconIn a letter to the governor, AIM expressed support for key portions of the economic-development bill ranging from an apprenticeship tax credit to imposition of reasonable limits on the use of non-compete agreements. But the largest employer association in the commonwealth urged the governor to strike other elements of the bill, including a “patent-trolling” provision that could prevent companies from protecting their intellectual property.

“The patent trolling language contained in the bill pending before you is materially different from the compromise language approved by the Joint Committee on Consumer Protection and Professional Licensure committee (S.2432),” AIM President and CEO Richard C. Lord wrote to Baker.

“The changed language appeared within the final days of the legislative session and has raised significant concerns from employers who believe it may limit the ability of companies to protect intellectual property.”

The economic-development and energy measures were part of a flurry of activity as the Legislature ended the formal portion of its 2017-2018 session early Wednesday morning. Governor Baker has 10 days to sign the bills, veto them or send back amended language.

The language in the economic-development bill governing use of non-competes mirrors a compromise that AIM and other business groups reached two years ago with House Speaker Robert DeLeo. The measure limits non-competes to one year and gives employees the opportunity to consult a lawyer when signing a non-compete but does not require companies that compensate employees at the time they sign non-competes to pay them again during the restricted period.

AIM fought relentlessly for more than 11 years on behalf the vast majority of Massachusetts employers who wish to preserve the use of non-competes to protect intellectual property. The new bill accomplishes that goal.

The new energy bill authorizes an additional procurement of offshore wind power, increases the renewable portfolio standard that governs the amount of clean energy utilities must purchase, and establishes an energy storage target. The renewable portfolio standard will increase by one percent until the end of 2019, then by two percent each year until the end of 2029. It would then set the state on a track of one-percent increases each year thereafter.

The bill “is a measured approach to public policy. It changes only those programs that need changing without disrupting newly established programs before they have had a chance to work. It will reduce greenhouse-gas emissions in Massachusetts while being considerate of our high electric prices,” Lord wrote in a separate letter to the governor.

Topics: Massachusetts Legislature, Economic Development, Energy, Charlie Baker

Beacon Hill Passes Energy, Non-Compete Bills; No Agreement on Health Measure

Posted by John Regan on Aug 1, 2018 8:16:11 AM

The Massachusetts Legislature ended its 2017-2018 formal session last night by mandating increased use of clean energy, establishing limits on the use of non-compete agreements and curbing the practice of “patent trolling.”

statehousedome1Lawmakers meanwhile were unable to reach agreement on a massive health-care bill that had generated concern among employers because it leveled assessments on medical providers and insurers that would eventually be passed on to consumers. The bill also contained no reform of the MassHealth program even as employers contribute $200 million per year to close a budget gap in the health-insurance program for low-income people.

Beacon Hill lawmakers crossed the finish line early this morning after a frenetic day that saw passage of bills covering everything from economic development to opioid care.

Governor Charlie Baker now has 10 days to review all the legislation. AIM will consult with member employers on the issues before recommending that the governor sign or veto each measure.

The new energy law authorizes an additional procurement of offshore wind power, increases the renewable portfolio standard that governs the amount of clean energy utilities must purchase, and establishes an energy storage target.

The compromise calls for the renewable portfolio standard to increase by one percent until the end of 2019, then by two percent each year until the end of 2029. It would then set the state on a track of one-percent increases each year thereafter.

Associated Industries of Massachusetts had supported a measured approach that would neither harm ratepayers nor elbow out other zero-carbon generation such as hydro-electric power. AIM supports the final bill.

“H.4857 An Act to Advance Clean Energy constructively builds upon the success of last year’s omnibus energy legislation,” said Robert Rio, Senior Vice President of Government Affairs at AIM.

“By following this measured approach, Massachusetts avoids disrupting the energy sector by making significant changes to programs that are themselves in the middle of being finalized. AIM feared that course would have delayed our effectiveness in meeting our greenhouse gas reduction goals.

“The measure will continue our aggressive transition from fossil fuels to a zero-carbon future while at the same time recognizing the importance of cost on Massachusetts ratepayers.”

(Contact Rio at rrio@aimnet.org or 617.262.1180 to learn more.)

The law governing use of non-competes, included in an economic development bill, mirrors a compromise that AIM and other business groups reached two years ago with House Speaker Robert DeLeo. The measure limits non-competes to one year and gives employees the opportunity to consult a lawyer when signing a non-compete but does not require companies that compensate employees at the time they sign non-competes to pay them again during the restricted period.

“AIM has fought relentlessly for more than 11 years on behalf the vast majority of Massachusetts employers who wish to preserve the use of non-competes to protect intellectual property. The new bill accomplishes that goal and reflects the productive compromise brokered two years ago by the speaker,” said Brad MacDougall, Vice President of Government Affairs.

The economic development bill also contains a provision to limit the practice of patent trolling, in which third parties demand financial settlements for alleged infringement on patents they do not even own. AIM maintains concerns about the language of the provision because some employers may be unable to engage in legitimate protection of their intellectual property amid an avalanche of state litigation.

“The language of the bill is materially different from the compromise language previously approved by the Joint Committee on Consumer Protection and Professional Licensure,” MacDougall said.

“This is an important and legally complex issue, one that should be addressed by federal law.  However, given Congress’ failure to act, if Massachusetts is to establish a policy, we need to get right for our AIM members who are victims of patent trolls and patent holders.”

(Sign up for future updates here on non-compete and patent legislation, or contact MacDougall at bmacdougall@aimnet.org or 617-262-1180 to learn more.)

The demise of the health-care bill turned on differing approaches by the House and Senate to capitalizing community hospitals. 

House Majority Leader Ronald Mariano told the State House News Service early this morning, "We were just too far apart philosophically to a come to a resolution that fit our agenda."

The Quincy Democrat said the House was focused on trying to find a way to financially stabilize community hospitals in the short-term with assessments on insurers and large hospitals, while he said the Senate "wanted a market driven approach." "We just thought we couldn't wait," Mariano said.

Katie Holahan, Vice President of Government Affairs at AIM, said, the lack of agreement on health care reflects the enormous complexity of the issue. She said AIM and its employer-members will continue to work with the Legislature to find ways to moderate the cost that companies face in providing health coverage for employees.

“While final action was not taken on major health-care legislation, we remain gravely concerned that – without long-term reform to MassHealth and the commercial market – Massachusetts’ health-care costs will continue to increase unchecked. Until reform is achieved, no relief is in sight for employers and their workers seeking to access care at a reasonable cost,Holahan said.

The conclusion of formal sessions on July 31 of even-numbered years generally means the end of the line for controversial bills. Lawmakers will meet for the remainder of 2018 in informal sessions, when a single lawmaker may stop any measure with an objection.

(Contact Holahan at kholahan@aimnet.org or 617.262.1180 for more information.)

Topics: Massachusetts Legislature, Non-Compete Agreements, Energy, Health Care

Health Care, Energy, Non-Competes on Table in Final Days for Legislature

Posted by John Regan on Jul 30, 2018 9:12:20 AM

Beacon Hill lawmakers will complete their version of final-exam week Tuesday at midnight as the Legislature races to complete bills before the end of formal meetings for 2017-2018 Beacon Hill session.

State House 2015The conclusion of formal sessions on July 31 of even-numbered years generally means the end of the line for controversial bills. Lawmakers will meet for the remainder of 2018 in informal sessions, when a single lawmaker may stop any measure with an objection.

The most important issues to employers have already been resolved in advance of this year’s end-of-session rush. The Massachusetts Supreme Judicial Court last month invalidated a potential income-tax surcharge constitutional amendment, while negotiations over three other ballot questions produced agreement on a compromise paid family and medical leave law, as well as a minimum-wage increase.

Three key employer issues remain on the table during the waning hours of debate:

  • Health care reform – The House and Senate passed different versions of health reform and a conference committee is working to hammer out a consensus bill. AIM remains concerned about both bills because they include expensive assessment. Neither bill reforms the MassHealth program for low income residents, where employers are paying a $200 million assessment to close a funding gap.
  • Energy – Measures passed by both the House and Senate could significantly increase the percentage of clean-source electricity used by Massachusetts consumers. AIM believes the bills could have the perverse effect of squeezing out clean hydro power and interrupting the successful roll-out of the 2016 energy law.
  • Non-compete agreements – The Senate, as part of an economic development bill, largely adopted the same modest restrictions on non-competes that AIM and other business groups supported two years ago as part of a compromise with House Speaker Robert DeLeo. But deep-pocketed venture capitalists continue to press for an outright ban and prospects for passage remain uncertain.

Employers also received some good news last week when Governor Charlie Baker signed the budget for the fiscal year that began July 1. The budget authorizes the administration to develop a hardship waiver for employers liable for the MassHealth surtax. Details remain to be developed.

The budget also provided full funding for the Massachusetts Manufacturing Extension Partnership.

Please contact me at 617.262.1180, or jregan@aimnet.org if you need more information on any of these issues. 

Topics: Massachusetts Legislature, Controlling Health Care Costs, Non-Compete Agreements, Energy

Beacon Hill: Don't Mess With Success on Energy

Posted by Bob Rio on Jul 27, 2018 7:45:00 AM

Massachusetts lawmakers, led by the state House of Representatives, got energy policy right two years ago.

ElectriclinessmallWe now have proof that the landmark 2016 Beacon Hill energy bill requiring competitive procurement of nearly 1,200 megawatts of clean energy is helping the environment without bankrupting the companies and homeowners who pay electric bills.

The New England Clean Energy Connect (NECEC), which won a competitive bid to move zero- carbon hydro power from Hydroquebec over transmission lines built by Avangrid through Maine, is seeking state approval for a 20-year contract with a levelized price (2017 dollars) of 5.9 cents per kilowatt/hour (kWh). In real dollars the price begins at approximately 6.4 cents per kWh in 2023 to slightly more than 10 cents per kWh in 2043.

The average cost is about 8.1 cents per kWh 

That’s surprisingly close to today’s wholesale prices.

But here’s the catch – none of these encouraging developments would have taken place if the Legislature had increased the so-called Renewable Portfolio Standard (RPS), a step that ironically is being debated now as part of a 2018 energy bill. AIM believes increasing the RPS will impede rather than further the goal to reduce greenhouse gas emissions 80 percent from all sectors by 2050.

The reason is that the RPS does not include large hydro power projects such as NECEC, even though hydro power emits no carbon. RPS-eligible sources consist primarily of onshore and offshore wind and solar. (Offshore wind contracts should be filed shortly with the Massachusetts Department of Public Utilities).

As the RPS mandate increases (along with other energy mandates) hydro power will at some point become ineligible to receive credit in Massachusetts for its clean-energy attributes. Based upon AIM’s analysis of the 2018 energy proposals, hydro power could be out of the energy mix before the end of the proposed 20-year Avangrid contract term and well before the RPS approaches 100 percent.    

The result is that Massachusetts business and residential consumers could end up paying for hydro power they can’t use to comply with clean-energy laws. 

Instead of taking the disruptive step of increasing the RPS, the Legislature should instead enjoy the success of their efforts to create a dynamic energy market in Massachusetts:

  • Massachusetts is moving forward with plans to develop more than 2,800 MW of zero-carbon energy, representing 40 percent of the commonwealth’s electric load at full build.   
  • A new solar program will double the amount of current solar capacity.  
  • There is continued innovation in Massachusetts’ nation-leading energy efficiency program.  
  • New energy storage pilots and rebate programs are rolling out. 
  • New electric and other alternative vehicle programs will tackle the largest source of greenhouse gas emissions – transportation.  

AIM and its member employers are committed to encouraging clean energy without increasing the RPS.

We urge the administration and the Legislature’s energy conference committee to discuss additional competitive solicitations of clean energy, including offshore wind and hydro power.  Those discussions should include a review the procurement process to ensure it has led to the lowest possible prices for Massachusetts consumers while creating opportunities to grow a new clean energy industry here.

 

Topics: Electricity, Energy, Hydro Power

History and Hope in the Massachusetts Senate

Posted by Rick Lord on Jul 26, 2018 8:00:00 AM

SP.SpilkaJPGThe passing of the Massachusetts Senate presidency today from Harriett Chandler to Karen Spilka represents a transition from one woman who has gracefully led the chamber through a period of turbulence to another who offers significant hope for an inclusive approach to the employer community.

Senator Chandler, a Worcester Democrat, assumed the presidency in December after former President Stanley Rosenberg of Amherst resigned amid a scandal. She steered the Senate through the ensuing months while developing consensus on important issues such as the “grand bargain” that headed off a dangerous ballot question on paid leave.

Senator Chandler deserves tremendous credit for conducting her work with the decorum and decency so often missing in American politics these days. She and Senator Spilka jointly announced the transition in April after the Ashland Democrat secured the support needed to guarantee her election as president.

Senator Spilka, who has chaired the Senate Ways and Means Committee for more than three years, has already reached out to Associated Industries of Massachusetts on key issues ranging from health-care reform to the sensible use of non-complete agreements. We look forward to additional issue conversations as the Legislature moves toward the end of its two-year formal session next Tuesday.

AIM stands ready to work with the new Senate president, House Speaker Robert DeLeo and Governor Charlie Baker to prioritize policy matters that can improve the economic climate of the Commonwealth and, thereby, the lives of the residents of our state.

 

Topics: Massachusetts Legislature, Massachusetts senate, Karen Spilka

The Unintended Consequences of Energy Legislation

Posted by John Regan on Jul 16, 2018 11:53:29 AM

Listen as AIM Senior Vice President Robert Rio talks to the CommonWealth Codcast about  why focusing only on renewable power makes it harder for Massachusetts to reach its clean energy goals. 

Topics: Massachusetts Legislature, Energy

Employer Confidence Weakens in June

Posted by Christopher Geehern on Jul 3, 2018 9:21:05 AM

Confidence among Massachusetts employers weakened considerably during June as tariffs, rising raw-material costs and approval of paid family and medical leave in the Bay State raised concerns about business growth.

BCI.June.2018The Associated Industries of Massachusetts Business Confidence Index (BCI) dropped 5.3 points to 61.3 last month, its lowest level since August 2017. Confidence remains well within the optimistic range, but the June decline left the BCI slightly below its level of a year ago.

Though analysts say the volatility in business confidence during May and June may reflect some statistical anomalies, the comments provided by employers on the monthly AIM survey suggest that companies are becoming increasingly concerned about a perfect storm of issues on the federal and state levels.

“EMAC (employer MassHealth assessment) and paid sick time are going to put me out of business if something doesn’t change quickly,” wrote one employer.

Another wrote: “A trade war with China is going to cost jobs, not add them.”

“It is certainly significant that the AIM Business Confidence Index is lower than it was in June 2017. It is also significant that many of the individual indicators that make up the overall index - ranging from employer hiring plans to their views of the Massachusetts economy – are also lower than they were a year ago,” said Raymond G. Torto, Chair of AIM's Board of Economic Advisors (BEA) and Lecturer, Harvard Graduate School of Design. “It will be interesting to see how confidence changes during the summer as Massachusetts continues to operate at virtually full capacity.”

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

The constituent indicators that make up the overall Business Confidence Index all lost ground during June.

The Massachusetts Index assessing business conditions within the commonwealth fell 7.2 points to 62.8, leaving it 1.4 points lower than in June 2017.

The U.S. Index ended the month at 60.0, down 9.3 points for the month but 2.6 points better than a year ago.
June marked the 100th consecutive month in which employers have been more optimistic about the Massachusetts economy than the national economy.

The Current Index, which assesses overall business conditions at the time of the survey, declined 2.6 points to 63.5. The Future Index, measuring expectations for six months out, fell 7.5 points to 59.1. The Current Index gained 1.6 points during the year while the Future Index lost 2.6 points.

Employer views of their own companies also weakened.

The Company Index declined 3.3 points to 61.2, down 1.2 points for 12 months. The Employment Index ended the month at 55.0, a 3.3-point decrease for the month and 3.1 points lower than a year ago. The Sales Index lost 2.9 points for the month and 0.2 points for the year.

Manufacturing companies (62.5) were slightly more optimistic than non-manufacturers (60.2). Companies in the eastern part of Massachusetts (63.3) were more bullish than those in the west (58.7).

“It’s interesting to note that medium and small companies remain significantly more optimistic than larger companies, reversing the typical pattern,” said Edward H. Pendergast, Managing Director, Dunn Rush & Co. “Entrepreneurial companies continue to drive growth here in Massachusetts.”

The BCI decrease came a month after the Mass Insight index of consumer confidence in Massachusetts suffered its biggest quarterly decline in years, from 134 in February to 121 in May. The index remined in optimistic territory, but fell below a comparable index for national consumer confidence for the first time since 2014.

Mixed Signals

AIM President and CEO Richard C. Lord, also BEA member, said employers are feeling threats from all directions.

“Member employers are deeply concerned about a potential trade war with China and with key US trading partners such as Canada, Mexico and the European Union,” Lord said.

“At the same time, the Legislature last week passed a ‘grand bargain’ that will create a family- and medical-leave requirement and increase the state minimum wage from $11 per hour to $15 per hour. Those requirements, on top of the MassHealth assessment and other elements, continue to challenge employers.”

Topics: AIM Business Confidence Index, Massachusetts economy, Economy

'Grand Bargain' Reached on Paid Leave, Minimum Wage, Sales Tax

Posted by John Regan on Jun 20, 2018 11:18:45 AM

The Massachusetts Legislature will today consider a sweeping compromise between the business community and progressive groups on the issues of paid family and medical leave, minimum wage and a reduction of the state sales tax. 

StateHouse-resized-600The so-called “grand bargain” follows months of negotiations among employers, labor unions, community groups and legislators seeking to eliminate three potential November ballot questions – one asking voters to approve paid leave, a second to raise the minimum wage to $15 per hour and a third to reduce the sales tax from 6.25 percent to 5 percent.

Debate on the compromise comes two days after the Massachusetts Supreme Judicial Court disallowed a proposed constitutional amendment that would have imposed a surtax on incomes of more than $1 million and earmarked the money for transportation and education.

“AIM has worked diligently under difficult circumstances to get the best deal possible for Massachusetts employers on all three issues,” said Richard C. Lord, President and Chief Executive Officer of AIM.  “We commend the representatives of the Raise Up Coalition, other business groups, and the members of the General Court for working long and hard to reach an agreement.”

“While everyone gives something during a negotiation, we are satisfied and believe that our member employers are better off with a legislative compromise than with voter approval of the language of the ballot questions as drafted.” 

The compromise will phase in mandated paid family and medical leave over three years for all Massachusetts employers. AIM and other business groups negotiated reductions in the duration of family leave from 16 weeks in the proposed ballot question to 12 weeks, and of personal medical leave from 26 weeks to 20 weeks.

The cost of the program may be split between employers and workers, though the sharing arrangements are different based upon the type of leave and the size of a company.

More importantly, the compromise includes an opt-out provision for employers with programs that offer benefits greater than or equal to what an employee would receive in the state program.

Workers on paid leave will earn 80 percent of their wages up to 50 percent of the state average weekly wage, then 50 percent of wages above that amount, up to an $850 cap.

The compromise envisions that the Retailers Association of Massachusetts will drop its proposed ballot question on reducing the sales tax. In return, the compromise will phase out the requirement that retail workers earn time-and-a half for working on Sundays; create a permanent, two-day sales tax holiday; and will not include an automatic indexing provision of the minimum wage, currently $11 per hour and increasing to $15 per hour over five years.

The negotiations were carried out against the backdrop of polls indicating overwhelming support for all three ballot questions, not surprising given that the proposals appeared to offer something for nothing. Recent polls put support for the paid family and medical leave question at 82 percent and support for a $15 minimum wage at 78 percent.

Experts believe that a campaign to defeat questions with those sorts of poll numbers could cost $10 million per initiative. The ballot process is one-sided, winner-take-all. Coming to a legislative compromise avoids that by allowing a broader group of people to have input into key decisions to create policies that work for everyone.

AIM’s objectives for the negotiations were clear:

  • Encourage a legislative compromise that is balanced and fair, and that protects a strong Massachusetts economy.
  • Create programs that are accountable, have strong controls, and allow employers the flexibility to offer benefits that will attract and retain their employees.

Topics: Minimum Wage, Mandated Paid Leave, tax

Subscribe to our blog

Posts by popularity

Browse by Tag