Employer Confidence Flat; Labor Shortage Remains a Concern

Posted by Christopher Geehern on Dec 5, 2017 9:20:02 AM

Employer confidence in Massachusetts remained essentially unchanged during November as companies apparently began to bump up against a persistent shortage of qualified workers.

BCI.November.2017.jpgThe Associated Industries of Massachusetts Business Confidence Index (BCI) lost 0.1 points off its 2017 high to 62.6, still 4.5 points better than in November 2016. The slight decline reflected a drop in confidence among non-manufacturing companies and a year-over-year decline in the index that measures employer hiring plans.

Analysts on the AIM Board of Economic Advisors (BEA) believe that Massachusetts may be suffering from too much of a good thing – a 3.7 percent unemployment rate that threatens to derail the ability of employers to find the workers they need to grow at a time when large number of baby boomers prepare to leave the work force.

“The concern is that Massachusetts could become a victim of its own success,” said Raymond G. Torto, Chair of AIM's Board of Economic Advisors (BEA) and Lecturer, Harvard Graduate School of Design.

“Employers feel optimistic about the state economy, the national economy and their own growth prospects, but they worry where the computer programmers, machinists and accountants needed to fuel that growth are going to come from and where they are going to live.”

Wage growth, however, remains muted. The AIM HR Practices Survey released yesterday shows that Massachusetts employers project average wage increases of 2.66 percent for 2018, down from 2.75 percent this year.

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 November.

The Massachusetts Index, assessing business conditions within the commonwealth, gained 0.1 points to 65.2, leaving it 5.4 points better than a year earlier.

The U.S. Index of national business conditions lost 0.3 points to 62.2, pausing after a yearlong rally. October marked the 92nd 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, decreased 0.2 points to 63.4 while the Future Index, measuring expectations for six months out, edged down 0.1 points. The Current Index has risen 6.5 points and the Future Index 2.6 points during the past year.
Operational Views

The Company Index, reflecting overall business conditions, rose 0.3 points to 62.3. The most significant operational result, however, came in the Employment Index, which lost 1.2 points and ended the month 0.8 points below its level of a year ago. Another unusual result was that manufacturing companies were more optimistic than non-manufacturing companies.

“The movement of the overall Business Confidence Index was small as the economy continued to grow and add jobs at a healthy pace. But the weakness in the Employment Index suggests that the expansion may finally be bumping into a pervasive shortage of skilled workers across multiple industries,” said Katherine A. Kiel, Ph.D., Professor of Economics, College of the Holy Cross, and a BEA member.

Political Fireworks

AIM President and CEO Richard C. Lord, also BEA member, said employers remain upbeat despite uncertainty surrounding the federal and state political landscape.

“The tax bill passed last week by the US Senate contains a significant reduction in both corporate rates and rates for pass-through businesses, two provisions that are widely popular among employers. At the same time, employers are concerned about provisions that could become problematic for Massachusetts, including limits on the deductibility of state and local taxes, and loss of the federal research-and-development credit,” Lord said.

“All this is taking place as activists continue to work to place three questions on the 2018 Massachusetts election ballot that would together impede economic growth for a generation: a surtax on incomes of more than $1 million, an expansive and bureaucratic paid family leave program and an increase in the minimum wage.”

Topics: Skills Gap, AIM Business Confidence Index, Massachusetts economy

Survey Shows Wage Growth Slowing in 2018

Posted by Russ Sullivan on Dec 4, 2017 8:00:00 AM

It seems that Massachusetts employers embody all the ambivalence and contradictions that have marked the longest economic recovery since the Second World War.

Image.jpgOn the one hand, the 205 employers who participated in the 2018 AIM HR Practices Survey predict lower salary increases, less hiring, and higher health-care costs for 2018 than this year.

On the other hand, employer confidence in the state economy stands at a 13-year high, the state economy grew at a brisk 5.9 percent pace in the third quarter and unemployment throughout the commonwealth has dropped to 3.7 percent.

The year 2018 promises to be an interesting one.

Participants in the AIM survey project a 2.66 percent increase in salaries in 2018, down from a 2.75 percent increase in 2017. Non-manufacturing companies are fueling the overall decrease, with an expected increase of just 2.43 percent. Manufacturing companies held steady at 2.70 percent, slightly down from the 2.71percent increase within this sector in 2017.

Survey participants also project a decrease in recruitment activity in 2018. Last year, 44 percent of participants projected that recruitment activity would increase over the previous year. This year, only 33 percent of participants project an increase in recruitment activity.

These lower projections for salary budgets and recruitment activity come at a time of increased confidence in the economy, as measured by AIM’s Business Confidence Index. In October 2017, the index reached 62.7, its highest level in 2017 and an increase of 6.5 points since the October 2016 recording of 56.2.

“The acceleration of the Massachusetts economy in the third quarter provided additional fuel to an already solid sense of confidence among employers as we head for 2018,” said Raymond G. Torto, chair of AIM’s Board of Economic Advisors and a lecturer at Harvard University’s Graduate School of Design.

Health-care costs continue to rise for Massachusetts employers. Survey participants report increases in the annual renewal rates for health plans. The average annual premium increase is 7.84 percent, with higher percentage increases reported for HMOs and consumer-driven health plans. Average premium increases in 2016 were 6.1 percent.

The Centers for Medicare and Medicaid Services indicate that Massachusetts, at 30 percent above the national average, is the second highest spending state for health care. Per-capita personal health-care spending in Massachusetts increased more than 12 percent in five years—from $9,417 in 2009 to $10,559 in 2014.

In response to the escalation of health-care costs, more employers (42 percent) are limiting the number of health-plan options available to employees to just one.

In addition, more employers are offering high-deductible health plans. For the second year in a row, there has been a 33 percent increase in the number of companies that provide high-deductible health plans as the only health plan option for employees. Although only 16 percent of all survey participants offer a high-deductible health plan as the only plan option, these employers represent 38 percent of participants that offer only one plan.

Massachusetts employers will have an additional health-care cost come 2018. Companies will pay an additional $180 million over two years as part of an assessment designed to close a budget deficit with the state Masshealth program for low-income people. Companies with employees currently using MassHealth will shoulder the bulk of the new assessment.

Meanwhile, the Massachusetts legislature is currently developing legislation that Beacon Hill leaders say will address the overall cost of health care.

Survey participants also commented on their preparations for compliance with the Massachusetts Pay Equity Act. This law, which takes effect on July 1, 2018, creates a potential liability for employers who pay different rates to men and women who perform comparable work. Employers who perform a self-evaluation to identify and remove gender-based pay inequities can maintain an affirmative defense to employee claims under the act. However, successfully performing a self-evaluation requires an investment in time and resources to build a compliant compensation process.

Despite the impending July 1, 2018 deadline for completing a self-evaluation and implementing remedial actions to secure the affirmative defense, only 19 percent of survey respondents state that they have completed the self-evaluation. Even fewer participants (12 percent) state that they have taken remedial actions.

Completing self-evaluations may be further complicated by a lack of pay-equity-compliant job descriptions. Fifty-seven percent of participants state that their job descriptions are either out of date or nonexistent. An additional 8 percent state that while they have updated their job descriptions for pay equity compliance, they do not have job descriptions for all positions.

The act also affects employee recruitment through its prohibition on asking applicants to disclose their current salary or their salary history. While employers acknowledge that this fundamentally changes the recruitment process, 17 percent of participants state that they do not currently have a plan to comply with this requirement, and another 38 percent plan to wait until July to remove requests for salary information from their applications.

Survey participants see a strong 2018 for their companies, with 82 percent rating their business conditions as either excellent or good. Addressing pay equity, employee recruitment, limited salary budgets, and increased health-care costs will stretch the capacity of most HR departments as they try to stay ahead of the economic recovery. Employers are encouraged to integrate their compensation, benefits, and recruitment strategies into a pay-equity-compliant value proposition that establishes them as an employer of choice in 2018 and beyond.

Topics: Compensation, Human Resources, wages

Would You Buy Your Own Business?

Posted by Christopher Geehern on Nov 30, 2017 8:30:00 AM

Editor’s Note – The following article was written by Rudi Scheiber-Kurtz, CEO of Next Stage Solutions in Burlington, and Gregory R. Rush, Partner & Co-Founder of Dunn Rush & Co. of Boston. They will lead a webinar for AIM and the Exit Planning Exchange New England called “Would You Buy Your Business?” on Wednesday, Dec 6 at noon.

Would you buy your business?

Two_Women.jpgA provocative question indeed, knowing that most business owners will not be able to sell their companies when they’re ready.

It’s discouraging when a business owner realizes that she or he will not get the multiple needed to create a comfortable retirement. According to a recent Forbes article “many owners probably won’t be able to sell their businesses when they’re ready, because they are not taking the critical steps.”

How do you fare in building value for your business, whether in growth mode or ready to sell in the next few years?  Have you done a benchmark assessment to understand where you stand today? What strategic plans have your drawn up for the next three years to achieve sustainable growth?

The December 6 webinar will allow us to take you through the “why” and “how” of building value for your business.  The first part will review benchmarks from a buyers’ perspective and why it is important to focus on these pieces.   The second part will give the “how” tools with seven modules so you can systematically create value over time.

The stakes could not be higher: Getting your business into a scaling and growth mode and increasing the valuation of your business will determine whether you can fund your retirement.

Sometimes you can’t see the forest for the trees.  Understanding what a buyer thinks of your business will help you to improve the way in which you address market demands.  Taking you out of working in the business to working on the business will transition you from manager to leader, an important next stage for your business.

Yogi Berra’s famous quote “When you get to the fork in the road, take it” is a great thought, however, if you get to the fork and get stuck, you may not have any option about which road to take.

This webinar will be a first step to understanding the perspective of a buyer and what you need to focus on over the next few years.

Associated Industries of Massachusetts is presenting the webinar because many of the association’s 4,000 member employers are small or family-owned companies that struggle with transition strategies.

“Sure, AIM counts plenty of internationally recognized corporations as members, but the association has always had a core membership of small to medium-sized employers who often never have the opportunity to see their businesses the way a potential buyer does,” said AIM President and Chief Executive Officer Richard C. Lord.

The one-hour webinar will provide plenty of time for your questions. 

Register for the Webinar


Topics: Massachusetts employers, Management

DraftKings CEO Sees Bright Future

Posted by Christopher Geehern on Nov 17, 2017 11:33:48 AM

The worlds of sports, media and gaming are likely to coalesce during the next several years and the co-founder and chief executive of Boston-based DraftKings believes his company and its 8 million customers will be a major player in that new world.

Robins.jpgJason Robins, who built DraftKings into a $1.5 billion fantasy sports colossus in just five years, told 250 business executives at the AIM Executive Forum this morning that companies like his have raised interest in professional sports and given fans an entirely new experience of watching everything from NFL Football to major league soccer

“A lot of exciting things on the horizon,” he said during a 45-minute conversation with AIM President Richard Lord.

"What technology and mobile have done for gaming and media, it's incredible, and we've only sort of reached the tip of the iceberg. I think you're going to see a convergence of media and gaming.

"I also think this sort of media landscape where all the content is scattered around different places and you have to have a bunch of different services or you have to sort through 800 cable channels to find what you're looking for, it's not necessary anymore."

Daily Fantasy Sports (DFS) allows fans to enter daily and weekly fantasy sports contests and win prizes based on individual players’ performances. Industry researchers estimate that players spent an estimated $3.26 billion on daily fantasy sports in 2016.

Robins said DraftKings surpassed more established competitors to became the pre-eminent DFS company “because we had a better mousetrap.” The keys to that mousetrap, he said, were products, technology and analytics that created a “game within a game” for sports fans.

What Robins and his partners did not anticipate in 2012 was the intense level of regulatory scrutiny that DraftKings and other DFS companies would engender both in Massachusetts and across the country.

DraftKings has supported consumer-protection regulations for the fantasy industry implemented by Massachusetts Attorney General Maura Healey in 2016 covering issues such as excluding minors, ensuring “fair” gameplay, prohibiting contests on college sports, and spelling out standard marketing practices. Robins said those regulations, though not perfect, have become the basis for DFS legislation in more than a dozen other states.

The company is less enthusiastic about a commission report several months ago that recommended that the Massachusetts Legislature enact a law that would label DFS as gambling and give the Massachusetts Gaming Commission oversight over the industry.

“I will continue to work with them on the way they have gone about their analysis,” Robins said.

He believes the future is a bright one for DraftKings in large measure because of its customer demographics. DraftKings, he said, have the customers everyone wants – millennials in higher income brackets who do not hesitate to spend money on entertainment.

"What we've tried to do is position ourselves as a platform, partner with companies that own these types of rights, and say, look, we can help you in the world where you're trying to grow your subscriptions, your direct-to-consumer business," Robins said.

"We have the customers you want, we know exactly what they're interested in and we have the data to target them."

Topics: Technology, AIM Executive Forum

Reduced Employer Access to Criminal Records Harms Ex-Offenders

Posted by Brad MacDougall on Nov 13, 2017 8:00:00 AM

Update: The Massachusetts House of Representatives passed a comprehensive criminal justice reform bill last week that will narrow employer access to the criminal records of job applicants. AIM believes such restrictions will hurt the very ex-offenders they are designed to help. 

It also seeks to expunge some offenders’ criminal records. Both the House and Senate bills would allow convictions to be sealed after seven years for a felony and three years for a misdemeanor, down from 10 and five years today.

The House bill would also allow someone to seal a conviction for resisting arrest, which currently cannot be sealed.

The House bill expands the ability for someone who had a record sealed to be able to say he has no record in applications for housing or professional licenses.

The House and the Senate will next convene a committee of conference to negotiate the differences in the two pieces of legislation and then send it to Gov. Charlie Baker’s desk.

AIM told members of the state House of Representatives this morning that  the proposed narrowing of employer access to the criminal records of job applicants will reduce employment opportunities for former offenders.

ScalesofJusticeVerySmall.jpgAIM is concerned about language in a criminal justice reform to be debated today that would make access to information through the Criminal Offender Record Information (CORI) more difficult by sealing records and limiting access.

AIM believes the changes would harm the very people those the measure is designed to help.  Without access, employers are left without relevant information about potential hiring decisions. Restricting an employer’s access to information has been shown to hinder job applicants and employer’s ability to maintain a safe workplace. 

The commonwealth’s largest employer association has provided feedback in a number of ways during the current legislative session. AIM sent letters to the Joint Committee on the Judiciary on April 28, 2017 and on July 17, 2017, and also hosted a briefing on this topic with the legislative sponsor and AIM members.

AIM appreciates that those and other conversations resulted in the inclusion of a negligent-hiring provision contained in SECTION 87 subsection 100S of the proposed reform bill.  AIM is also supportive of a provision that would enable the commonwealth to move towards fingerprinting and exchanging data with the National Criminal Information Center (NCIS) to ensure that records are accurate and connected to the correct person.

The Massachusetts Senate approved its own version of criminal justice reform on October 26.

AIM is concerned about the following provisions:

Sections 81-86 and 87: Sealing and Expungement of a Criminal Record: As proposed, the language would reduce the wait time to seal a misdemeanor conviction from five years to three years and a felony conviction from 10 years to seven years.  To address this AIM supports:

  • Amendment #50 to remove sealing and expungement provisions
  • Amendment #132 to allow employers that have employees with access to financial information, cash instruments and vulnerable populations to retain access to five years of misdemeanors and 10 years for felony convictions as currently provided under law
  • Amendment #134, to provide employers with six months to make changes to job applications, internal policies and to conduct training for hiring managers

Section 84 and 87 Job Applications: This language requires employers to amend job applications to acknowledge the candidate’s proposed rights under the expungement provision.  Employers would be required to add the language from section 84 and section 87, which contains similar language for job applications.  To address this AIM supports:

  • Amendment #130 and #131, to retain currently proposed language into one paragraph to address a candidate’s rights regarding sealing and expungement.
  • Amendment #120, to provide employers with six months to a year to fully implement changes in job applications, internal policy documents and to conduct training for hiring managers.

AIM supports amendment #50 to strike the language and amendment #118, which would provide for six months for employers to be in compliance and conduct training for hiring managers.

Sections 49-56, 62: Felony Thresholds: This language will make it challenging for employers to address growing concerns with larceny and ongoing threats related to personal information and credit card fraud.  AIM supports amendment #126, which would strike these provisions.




Topics: Employment Law, CORI, Massachusetts House of Representatives

AIM to Senate - Control Health Costs, Reform MassHealth

Posted by Katie Holahan on Nov 8, 2017 11:50:22 AM

Editor's note - The following are excerpts of a letter that AIM sent to Senate President Stan Rosenberg and members of the Senate as they began debate on a health-care reform measure. The Senate passed its health reform bill last week.

Dear Mr. President and Members of the Senate:

After eleven years of universal health insurance, Massachusetts has made great strides to ensure our residents have access to some of the best health care in the nation and the world. Thus far, we have failed to make comparable progress in containing the cost of both health-care services and insurance for employers and their work forces.

MedicalRecordSmall.jpgMassachusetts residents are assured of access to high quality health care, without the assurance that they can afford it. Our complex, confusing health-care system leaves both consumers and employers at a disadvantage when it should empower them to advocate for their long-term health and productivity.

According to the most recent data available from the Centers for Medicare and Medicaid Services (CMMS), Massachusetts was the second highest-spending state for health care in 2014 shelling out 30 percent more than the national average. Personal health-care spending in Massachusetts, per capita, has increased more than 12 percent in five years – from $9,417 in 2009 to $10,559 in 2014.

Cost growth like this is unsustainable and has increased unabated in the face of attempts by both employers and the commonwealth to contain it.

Employers, especially smaller employers, have almost nothing to show in the way of cost savings and efficiencies five years after Massachusetts’ major push toward health-care cost containment. These cost increases are occurring in an industry in which experts agree that at least one-third of all care is unnecessary – delivered in the wrong setting; marked by a lack of coordination; provided with an inadequate emphasis on prevention; harmed by medical errors; burdened with rules and fraud; or just plain excessive.

We are pleased by the Senate’s focus on difficult and expensive issues like Massachusetts’ high re-admission rates, to encourage more efficient care focus on keeping consumers healthy and out of care settings. We also support the Senate’s efforts to include provider costs in the commonwealth’s efforts to track and contain year-over-year spending increases.

We would like to express our support for Amendment #38, filed by Senator Donaghue, and Amendment #67, filed by Senator deMacedo, both of which return assessments on carriers and providers to rate payers in the form of premium reductions. The most meaningful immediate health-care reform for employers and workers is a reduction in their monthly premiums.

With that in mind, we would urge careful consideration of any new policies, with particular focus on potential financial implications. A number of amendments have been filed that expand the mandated benefits required for coverage in Massachusetts. Although many health-care services are worthy, before acting to expand benefits we must understand the complete financial effects of any such changes, particularly since the Affordable Care Act requires that states pay for any mandated benefits enacted after December 31, 2011 in excess of the federally required essential health benefits.1

AIM would oppose the implementation of any new mandated benefits, without the completion of a fiscal analysis by the Center for Health Information and Analysis. The following amendments contain some form of expanded mandated benefit:


We should, instead be further supporting innovative products and practices that lower costs and encourage healthy habits and practices. We would like to express our support for Amendments #51 and 101, filed by Senators Moore and Timilty, respectively, to reinstate the Wellness Tax Credit for small employers.

AIM also supports Senator Moore’s Amendment #45, which would remove confusion about the definition of telemedicine and would allow licensed providers to prescribe certain medicines. We are supportive of facilitating market-based solutions that could help employers innovate and bring down costs.

However, in a state facing an alarming deficit in its Medicaid program, employers are now shouldering the escalating costs of the public healthcare system. For the next two years, employers statewide will provide at least $200M annually in funding for MassHealth. This is in addition to the cost and administrative burden of providing commercial health insurance to their workers.

Most importantly, employers are tasked with closing a funding deficit absent any of the long-term structural reforms needed to solve the underlying financial problems with the program. Over the past eleven years, employers have implemented wellness programs, purchased innovative insurance products, embarked on employee educational programs – all with the goal of providing higher quality insurance that keeps their employees healthier and costs lower.

The same cannot be said of the public health insurance program. We oppose any amendments that expand the current MassHealth program, including Amendments #2, 93, and 153. Regardless of enrollment rates, action must be taken to improve the efficiency and cost-effectiveness of this currently unsustainable program. The result will not be simply cost reductions, but higher quality of care for enrollees in the long term.

Thus, we express our support for Amendments #74 and #122, filed by Senator Tarr, which not only eliminate the buy-in option for MassHealth, but also provide a framework for efficiently determining eligibility so those who truly need it can access much-needed health-care services.

We would like to voice our strong support of Amendment #57, filed by Senator deMacedo, which would eliminate the so-called Name and Shame list.

The Affordable Care Act (ACA) reversed existing Massachusetts law and now allows income-eligible employees to decline employer coverage and seek insurance through MassHealth. That change created a migration of newly eligible individuals to MassHealth, substantially increasing the Commonwealth’s financial burden. The ACA made public health insurance an economically rational choice for eligible residents in a state known for its expensive health-care system, and employers should not be publicly shamed for a choice they cannot control.

As MassHealth enrollment grows, the commonwealth experiences the reality that employers have faced for years: the high cost of health-care coverage in this state threatens the underpinnings of our economy. Policymakers who have concentrated almost exclusively on access and coverage now face a renewed imperative to lower the cost of health insurance for everyone in Massachusetts.

We are active participants in providing health insurance to the majority of residents in the commonwealth, a role that we have played for the past 10 years and more. It is an integral part of the Massachusetts economy and we look forward to working with you to bring the same level of innovation and sustainability to health care coverage, traits which Massachusetts is known for worldwide.

Topics: Health Care Costs, Health Insurance

Business Confidence Hits Another High for 2017

Posted by Christopher Geehern on Nov 7, 2017 8:27:44 AM

Employer confidence in Massachusetts hit another high for 2017 during October as economic growth accelerated and companies remained optimistic about the national outlook.

BCI.October.2017.jpgThe Associated Industries of Massachusetts Business Confidence Index (BCI) edged up 0.3 points to 62.7, leaving it 6.5 points better than in October 2016. The uptick was driven by a brightening view of employment growth and firming confidence among manufacturers.

The reading came as MassBenchmarks reported that the Massachusetts economy grew at 5.9 percent during the third quarter, almost double the rate of the national economy. Payroll employment grew at a 2.1 percent annual rate in Massachusetts in the third quarter as compared to 1.2 percent nationally.

“The acceleration of the Massachusetts economy in the third quarter provided additional fuel to an already solid sense of confidence among employers as we head for 2018,” said Raymond G. Torto, Chair of AIM's Board of Economic Advisors (BEA) and Lecturer, Harvard Graduate School of Design.

“At the same time, optimism about the national economy suggests that employers believe growth rates throughout the US will increase even more if Congress follows through on its proposal to lower the corporate tax rate from 35 percent to 20 percent.”

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 pointed mostly higher during October.

The Massachusetts Index, assessing business conditions within the commonwealth, slipped 0.3 points to 65.1, still 4.1 points more than a year earlier. October marked the 91st consecutive month in which employers have been more optimistic about the Massachusetts economy than the national economy.

The U.S. Index of national business conditions rose 2.7 points to 62.5, continuing a 13.3-point surge for the 12-month period. 

The Current Index, which assesses overall business conditions at the time of the survey, increased 0.7 points to 63.6 while the Future Index, measuring expectations for six months out, remained even at 61.9 points. The Current Index has risen 7.6 points and the Future Index 5.6 points during the past year.

Operational Views

The Company Index, reflecting overall business conditions, lost 0.3 points to 62.0. There was better news in the Employment Index, a key predictor of economic health, which rose 2.0 points to 57.8.

“The Massachusetts economy continues to grow at a robust pace and to add jobs in a broad array of sectors despite tightening regional labor markets. With the statewide unemployment rate now below four percent, it is not clear the commonwealth’s economic expansion is sustainable at its current pace,” noted Professor Michael D. Goodman, Executive Director of the Public Policy Center (PPC) at UMass Dartmouth and a BEA member.
Massachusetts Concerns

AIM President and CEO Richard C. Lord, a BEA member, said employer optimism continues to be tempered by the prospect of three potentially destructive ballot questions appearing on the 2018 state election ballot.

“Massachusetts employers face an unprecedented public-policy crisis as activists seek to place three questions on the 2018 Massachusetts election ballot that would together impede economic growth for a generation: a surtax on incomes of more than $1 million, an expansive and bureaucratic paid family leave program and an increase in the minimum wage,” Lord said.

“Having just honored 16 Massachusetts employers for creating jobs and economic opportunity for the people of Massachusetts, AIM remains concerned about ballot questions that are clearly intended to be punitive toward employers.”

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

State Issues Regulations on Employer Health Assessment

Posted by Katie Holahan on Nov 6, 2017 4:08:53 PM

The Baker Administration today released draft regulations for the new employer health assessment designed to close a budget shortfall in the state's MassHealth program.

Read the Draft Regulations

The regulations, published by the Massachusetts Department of Unemployment Assistance (DUA), explain details of how the new Employer Medical Assistance Contribution (EMAC) supplement will be administered. The EMAC supplement is a new wage tax, levied on employers who have certain workers enrolled in either the MassHealth program or subsidized Health Connector coverage. 

  1. Employers with six or more employees will access their estimated liability for the EMAC supplement quarterly, via their DUA online account when they provide their quarterly wage filing;
  2. Detailed information will be provided as to the number of their employees on MassHealth or subsidized Connector coverage;
  3. Employers have 10 days from receipt of this information to appeal their determination of liability to the DUA.

The draft regulationsare available for public review and response. The Department will hold five listening sessions, across the state, to allow employers and interested parties to provide in-person feedback:

  • Boston | November 13 | 1-3 pm | Hurley Building
  • Springfield | November 14 | 10 am - nooon | Department of Industrial Accidents office
  • Worcester | November 15 | 2-4 pm | Department of Industrial Accidents office
  • Lawrence | November 16 | 10 am - noon | Department of Transitional Assistance.

A fifth session will be scheduled on Cape Cod.

Questions and suggestions may also be shared with the Department electronically.


Topics: Controlling Health Care Costs, Employer Health Assessment

Video Blog | Startup Provides Internet Access in the Developing World

Posted by Kristen Rupert on Nov 2, 2017 1:37:13 PM

Editor's Note - How do you provide Internet access to people in developing countries where there is no power to charge phones or access the Web? WrightGrid, a startup based in Somerville’s Greentown Labs, has come up with the answer. WrightGrid has developed a solar-powered cell phone charger and wi-fi station designed to provide information access to people in countries such as Ghana and the Democratic Republic of Congo. WrightGrid this week accepted the 2017 AIM Global Innovation Award.


Topics: Technology, AIM International Business Council, International b

AIM, Citing Safety Concerns, Opposes Criminal Justice Bill

Posted by Brad MacDougall on Oct 25, 2017 10:00:00 AM

Associated Industries of Massachusetts (AIM) this morning announced its opposition to the state Senate’s criminal justice reform bill because the measure would unduly restrict the ability of employers to ensure the safety of employees, customers and others in the workplace.

ScalesofJusticeVerySmall.jpgThe proposed legislation will, in fact, harm the very people the proponents of the bill seek to help. AIM-member employers met with the legislative sponsor of the bill in July and made clear that candidates for jobs are less successful in achieving gainful employment when employers have less information.

“An employer is more likely to hire an ex-offender when that employer has the information available to make a balanced decision,” said John Regan, Executive Vice President of Government Affairs at AIM.

AIM has a long history of involvement with efforts to balance the need for employers to conduct responsible criminal background checks with the ability of offenders to find employment.

The association helped to forge the 2009 Criminal Offender Records Information (CORI) legislative compromise and worked on the recent regulatory changes to CORI. The business community made significant concessions in the 2009 bill, but the current legislation goes far beyond what employers agreed to in 2009.

Employers believe that criminal background checks are necessary to ensure that the company or institution is complying with state and federal regulations, in addition to international standards. These standards apply for a variety of businesses including hospitals and financial institutions.

Employers also believe that inability to access criminal histories makes companies vulnerable to claims for everything from negligent hiring and failure to meet regulatory obligations to failure to protect client data and failure to protect visitors from harm.

“Employers face significant risk and legal liability for hiring and retaining employees who pose a risk. As written, the legislation does not acknowledge that employers would still be responsible for negligent hiring and negligent retention without a waiver of liability,” Regan said.

The Senate is expected to debate S.2185 and several amendments tomorrow.



Topics: Massachusetts senate, Employment Law, CORI

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