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Urban farming startup Infiniti Greens grows in Broome County
BINGHAMTON — Up until a few months ago, Remlik’s Grille & Oyster Bar, an upscale seafood restaurant in downtown Binghamton, had a problem. The tiny plants that chefs were using as garnishes kept perishing quickly. And they were entirely too expensive. Enter Joe Rigoroso, the man behind a new Binghamton–based startup called Infiniti Greens. Rigoroso […]
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BINGHAMTON — Up until a few months ago, Remlik’s Grille & Oyster Bar, an upscale seafood restaurant in downtown Binghamton, had a problem. The tiny plants that chefs were using as garnishes kept perishing quickly. And they were entirely too expensive.
Enter Joe Rigoroso, the man behind a new Binghamton–based startup called Infiniti Greens.
Rigoroso approached the restaurant and gave its owners a small sample of his microgreens. Remlik’s immediately ditched its previous supplier.
“After putting the greens to use, they seemed to hold up without dying,” Kelley Wesoloski, one of the owners of Remlik’s, tells CNYBJ. “And these were cheaper and better.”
Infiniti Greens is barely a year old, but Rigoroso’s microgreen business is already beginning to establish a foothold in the Binghamton market. Rigoroso, a current student at Binghamton University, is contacting local restaurants such as Remlik’s and convincing them one by one to become customers. In just a few months, he has landed six local restaurants as customers placing regular orders.
Rigoroso is capitalizing on two growing food-industry trends: urban farming and a demand for locally sourced food. Rigoroso grows the microgreens, which are small vegetables or herbs left to grow for just one or two weeks, by himself at the Koffman Southern Tier Incubator, at 120 Hawley St. in Binghamton. The greens sit on shelves stacked on top of each other inside a lab under grow lights. He then delivers the microgreens to local restaurants that serve them on their menus.
“Because those movements are starting to grow, I think I’m getting in at a good time,” Rigoroso says.
Recently, restaurants have begun to use microgreens as trendy garnishes for their color, texture, and added flavor. Bon Appétit magazine proclaimed in 2013 the tiny plants were the trendy garnishes of the moment, popping up on plates of many of the magazine’s best restaurants list that year.
“Every entree on the menu, including our sushi, uses microgreens as garnishes,” Wesoloski says.
Infiniti Greens offers at least 15 types of microgreens, including Swiss chard, kale, arugula, peas, sunflowers, and cilantro.
The business currently has one employee — Rigoroso himself, who is the founder, CEO, accountant, and delivery person. He is a senior at Binghamton University, majoring in business management with a minor in environmental studies. When he is not in school, he spends the rest of his time biking from his apartment in downtown Binghamton to the Southern Tier Incubator, where he will run the business for at least the next year. The new $19 million incubator encompasses 35,000 square feet of offices, high-tech labs, wet labs, dry labs, common areas, and co-working spaces to encourage collaboration between companies. It was built to provide a “supportive environment for entrepreneurs and startup companies,” according to Binghamton University.
How he got started
Rigoroso, who hails from Long Island, started growing microgreens for his own personal use in January 2016 after he watched YouTube videos about urban farming. Rigoroso is a self-described “garden nerd” and the microgreens were an attempt at living sustainably by growing everything he eats himself.
“I wanted to stay away from the supermarkets,” Rigoroso says. “That food is expensive and I really didn’t know where greens were coming from.”
Soon after he started growing, Rigoroso’s friends began clamoring for his microgreens, which made him think he could turn his small urban farm into a business.
He has since won an entrepreneurship competition at Binghamton University. In July of this year, Infiniti Greens was accepted into the Southern Tier Incubator, which opened in June. And in October, the company was featured in “Made in Broome,” a public-relations campaign started by The Agency, a prominent economic development organization in Broome County, meant to highlight local businesses.
Even as other students leave the state following graduation, Rigoroso intends to stay in Binghamton and work on Infiniti Greens full time after he completes his studies in May 2018, keeping Infiniti Greens local. Eventually, Rigoroso would like to own a greenhouse in the area as a permanent location for the business.
“I love the community here, you can really get to know everyone,” says Rigoroso. “A big part of this is benefiting the community.”
Most of Infiniti Greens’ revenue comes from local restaurants with weekly orders. In total, Rigoroso has six regular customers, including Burger Mondays, The Colonial, Food Fusion Bar & Grill, P.S. Restaurant, and Nezuntoz Café, in addition to a few restaurants that place sporadic orders.
So far, the business has paid for itself. Because Rigoroso doesn’t have student loans to pay off, he does not pay himself. He reinvests all revenue back into the business. So far, he has generated about $1,000 in revenue.
Additionally, Rigoroso sells his microgreens at the Broome County Regional Farmers Market and in one retail location, Open Barn Market. Infiniti Greens also offers subscription plans for customers who want microgreens delivered to their home or office.
Going forward, Rigoroso plans to grow the business by increasing his customer base of local eateries and expanding into additional retail locations. He does not want to take on investors, although he says he is confident he could raise a significant sum of money. Instead, he wants to grow the business “slowly but surely” — and by himself.

Key’s Mooney wants the bank to be number one in Syracuse
SYRACUSE — The CEO of KeyCorp (NYSE: KEY), parent of KeyBank, says it is now the “second largest bank in Syracuse” after the 2016 acquisition of First Niagara, describing it as “significant growth.” In the banking industry, Beth Mooney says, when a bank has more market share, more branches, more deposits, and more customers, it
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SYRACUSE — The CEO of KeyCorp (NYSE: KEY), parent of KeyBank, says it is now the “second largest bank in Syracuse” after the 2016 acquisition of First Niagara, describing it as “significant growth.”
In the banking industry, Beth Mooney says, when a bank has more market share, more branches, more deposits, and more customers, it becomes a “stronger corporate citizen” with more to offer consumers and businesses.
“To me, it’s a real important thing for this community that Key has grown to be the number-two bank and I’d like to challenge the team to think about the path to number one,” says Mooney, who spoke with CNYBJ at the Marriott Syracuse Downtown, the former Hotel Syracuse, on Oct. 25. She was the keynote speaker at a Key4Women event held at the hotel.
The latest data from the FDIC shows KeyBank has a ways to go to reach number one in this market in one important measure. Key had nearly $2.4 billion in deposits, good for an 18.58 percent share of total deposits in the Syracuse metro area, as of June 30. That trailed No. 1 M&T, which had more than $3.15 billion in deposits and a 24.56 percent market share. The two banking companies are tied for most branch offices in the market with 30, per the FDIC data.
Financial performance
Overall, the financial figures indicate Key is already significantly benefiting from its $4.1 billion acquisition of Buffalo–based First Niagara Financial Group (NASDAQ: FNFG).
The Cleveland, Ohio–based KeyCorp, on Oct. 19 reported net income of $349 million, or 32 cents per share, compared to $165 million, or 16 cents a share a year ago
A “significant” portion of Key’s year-over-year financial performance “does indeed” reflect the First Niagara acquisition, says Mooney. The acquisition closed July 29, 2016.
“A year later, we are realizing the value of what was our investor proposition when we did First Niagara, and you are indeed seeing it in things such as the increase in our net income,” says Mooney. Key’s revenue is also growing — increasing more than 16 percent in the latest quarter compared to a year ago.
KeyCorp pursued the acquisition with First Niagara Financial Group because of geographic overlaps, “similar cultures,” and “complementary” products and businesses.
The banking company had argued that, financially, it “would enhance the performance of KeyCorp in a way that neither First Niagara [nor] KeyBank would’ve been able to do on their own,” says Mooney.
Key’s third-quarter results included
$36 million of merger-related charges and a $5 million merchant-services gain adjustment, resulting in a pre-tax net impact of
$41 million, or 3 cents per common share.
Mooney had spent time in Buffalo on Oct. 24, the day before the Syracuse visit, and she says what makes her the “proudest” is “seeing how our teams have come together and how … one year later, we’re one company.”
“So, we’re about the business of serving our customers and our communities and growing the bank,” she says.
When asked if KeyBank has plans for any additional branch consolidation in the Syracuse or Central New York area following the acquisition, Stephen Fournier, KeyBank’s president of the Central New York market, says, “Like any banking organization … [we] look at our business on an annual basis to see … what’s the best way to operate … We look at that yearly.”
“Ongoing, we always look at opportunities for how and where we do business, investing in digital … I don’t think any of it’s specifically related to the merger at this point,” Mooney adds.

Rescue Mission plans to expand food-services center
SYRACUSE — The Rescue Mission next spring plans to break ground on a more than $6 million renovation and expansion of the organization’s food-services center at 148 Gifford St. in Syracuse. The nonprofit’s main office is located across the street at 155 Gifford St. The facility’s dining room is currently designed to seat no more
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SYRACUSE — The Rescue Mission next spring plans to break ground on a more than $6 million renovation and expansion of the organization’s food-services center at 148 Gifford St. in Syracuse.
The nonprofit’s main office is located across the street at 155 Gifford St.
The facility’s dining room is currently designed to seat no more than 80 to 100 people. The renovation and expansion will nearly triple seating capacity, adding a family-dining area.
“The food-service project is a three-phase project that we have. We’ll be adding a dock here. Right now, we currently serve 70 meals … at every breakfast, lunch, and dinner. We have usually [attendance of] 200-plus at every meal,” David Allyn, the Rescue Mission’s capital-campaign chairman, said in speaking with reporters at an Oct. 25 event.
He spoke after officials from KeyBank (NYSE: KEY) presented a check for $200,000 to the Rescue Mission to help cover the costs in the renovation project.
KeyBank Foundation will provide the funding “over the course of four years,” according to a news release on the donation.
The KeyBank Foundation is a nonprofit charitable foundation funded by Cleveland, Ohio–based KeyCorp, KeyBank, and their affiliates.
“Here at the Syracuse Rescue Mission, that mission of thousands of people coming through their door [on] any given day who are homeless, who have needs, who need a chance to have a place to stay, a meal to eat, a chance to get back on their feet, really resonates with all of us as we think about the things our community needs to do to help create that safety net,” Beth Mooney, chairman and CEO of KeyCorp, said in remarks at the food-services center.
Mooney and Stephen Fournier, Central New York market president at KeyBank, presented the check to Allyn.
The project work will start in the back of the facility. “We still have to keep serving meals during this whole process,” he noted.
“The building itself will expand. We’ll actually have two serving areas. Right now, we just have one serving area,” said Allyn. “We’ll have a larger warehouse space. A lot of the food is donated.”
King+King Architects LLP is handling the design work on the expansion project, according to Allyn. The organization has yet to choose a contractor for the project.
The event took place a few days before the Rescue Mission announced that CEO Alan Thornton planned to resign from his position on Nov. 17.
Thornton is leaving the organization to become president & CEO of Washington, D.C.–based St. John’s Community Services, the Rescue Mission said in a news release.
Rescue Mission COO Corey Kociela will serve as interim CEO following Thornton’s departure.
Expanding training program
In addition to helping the Rescue Mission accommodate the hungry, the renovation and expansion will help “improve and expand” an on-site program offered with the Syracuse City School District for training in the food-service industry.
The program has a 94 percent job placement rate, “training Rescue Mission clients and the wider community,” per the release.
With a larger kitchen and classroom, enrollment in the program will double from 10 students to 20.
The expansion will also enable the Rescue Mission to have more volunteers, expand food storage, and accommodate more food donations and bulk-produce purchases.
The Rescue Mission’s food-services center at 148 Gifford Street “serves a critical role in alleviating hunger in Central New York,” the organizations contended in the release.
The center in 2016 provided 227,110 meals to more than 9,000 people.

Officials break ground on $15.8M Roosevelt Residences project in Utica
UTICA — Officials on Oct. 31 gathered for a groundbreaking ceremony to mark the start of construction of the $15.8 million Roosevelt Residences project at 1515 Brinckerhoff Avenue in Utica. More than 70 local, state, and federal officials, as well as neighborhood residents, community agency representatives, and development team members, attended the ceremony, the Municipal
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UTICA — Officials on Oct. 31 gathered for a groundbreaking ceremony to mark the start of construction of the $15.8 million Roosevelt Residences project at 1515 Brinckerhoff Avenue in Utica.
More than 70 local, state, and federal officials, as well as neighborhood residents, community agency representatives, and development team members, attended the ceremony, the Municipal Housing Authority of the City of Utica said in a news release.
The Municipal Housing Authority of the City of Utica (Utica MHA) is working with Norstar Development USA, L.P., and Norstar Building Corporation on the project.
Norstar Development is headquartered in Concord, Ontario with a U.S. corporate office in Buffalo.
“Norstar is very proud of our partnership with the Utica Municipal Housing Authority. Having worked with them to design and develop this exciting Roosevelt Residences project, we are now very much looking forward to delivering high-quality, affordable housing to the Cornhill neighborhood of the City of Utica,” Richard Higgins, president of Norstar Development USA, said in the release.
The Roosevelt Residences project involves the construction of 50 affordable-housing units contained in 25 new buildings on 11 scattered sites in the Cornhill neighborhood.
A total of eight units will be set-aside for homeless veterans and for other “chronically homeless” populations. The project also includes the construction of a new resident center.
“I think it very fitting that this site which was once a school, will now be a healthy and safe environment for some of Utica’s families. Roosevelt Residences will be a place for them to live and grow and have a positive impact on the neighborhood and city,” David Williams, chairman of the Municipal Housing Authority of the City of Utica board of commissioners, said.
Financing for the development includes $8.21 million in tax-exempt bonds and mortgage loans from New York State Homes and Community Renewal (HCR), $1.2 million in funding from HCR’s supportive-housing opportunity program, $3.99 million in funding from HCR’s new-construction program, $1.44 million in funding from the Housing Trust Fund Corp’s (HTFC) Homes for Working Families Program, and an annual allocation of $631,108 in low income tax credits, according to a separate news release on the project from the New York State Office of Temporary and Disability Assistance. HTFC is part of New York State Homes and Community Renewal.
The balance of funding for the project is provided by a $770,000 award through the New York State Office of Temporary and Disability Assistance’s Homeless Housing Assistance Program, a $127,000 award from the New York State Energy and Research Development Authority, and $500,000 through the City of Utica HOME program.
ALI moves into larger Cortland headquarters and opens LiftLab
CORTLAND — The Automotive Lift Institute (ALI) announced that it formally opened its new headquarters and LiftLab near Cortland on Oct. 12 with a grand-opening celebration. ALI says it is an organization “dedicated to the safe design, construction, installation, service, inspection, and operation of vehicle lifts used in automotive and heavy-duty vehicle repair shops throughout
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CORTLAND — The Automotive Lift Institute (ALI) announced that it formally opened its new headquarters and LiftLab near Cortland on Oct. 12 with a grand-opening celebration.
ALI says it is an organization “dedicated to the safe design, construction, installation, service, inspection, and operation of vehicle lifts used in automotive and heavy-duty vehicle repair shops throughout North America.” ALI offers a wide range of vehicle lift safety training resources and materials.
The new 8,500-square-foot headquarters at 3699 Luker Road in the town of Cortlandville is more than four times larger than the organization’s previous Cortland office, according to an ALI news release. It includes 3,475 square feet of renovated office and conference space, as well as a modern classroom for up to 20 participants.
The grand opening was attended by ALI members, lift inspectors, suppliers, and other guests from the vehicle lift and workplace safety industries,
The organization says that growth of ALI lift-safety initiatives like the ALI Lift Inspector Certification Program “drove the need for a larger multipurpose facility.”
A key feature of the new building is its new LiftLab. ALI member manufacturers have provided and installed 12 vehicle lifts in the “expansive” LiftLab area. They range from the smallest motorcycle lift to the most common two-post style — all the way up to heavy-duty inground and mobile column lifts.
This is the only facility in North America that brings together such a broad range of operational lifts from various manufacturers and makes them available for hands-on industry training, the institute contends.
“Through the generous support of the ALI member companies that produce North America’s certified vehicle lifts, we are able to facilitate opportunities for candidate lift inspectors, product safety engineers and others to come to a single location to examine two-post, multi-post, scissors, inground, mobile column and low-rise lifts,” R.W. (Bob) O’Gorman, ALI president, noted in the release. “This will enable lift inspector candidates to more expediently meet the requirements of the ALI Lift Inspector Certification Program, which will help address increasing customer demand. At the same time, we can improve the technical skills and knowledge of the experts charged with testing and certifying future vehicle lifts.”
ALI was started by nine lift manufacturers in 1945 and had its office in New York City until relocating to Indialantic, Florida, in 1993. ALI then moved its headquarters to Cortland in 2005 and has since grown from two employees to eight as the organization has expanded its safety-focused activities. Membership has also grown — there are now 21 member companies and six non-member firms producing ALI certified gold label lifts.
The organization adds that there are 465 ALI certified lift inspectors and a total of 842 individuals from around the world currently participating in some stage of the certification process.
Hartford Fire Insurance renews lease at One Park Place in Syracuse
SYRACUSE — Hartford Fire Insurance Company recently renewed its lease of 15,000 square feet of office space at One Park Place — the 10-story, 300,000-square-foot, Class A office building at 300 S. State St. in downtown Syracuse. Peter Finn and Marty Dowd CBRE/Syracuse, with Roger Christensen of CBRE/Minneapolis, represented the tenant, the real-estate firm said
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SYRACUSE — Hartford Fire Insurance Company recently renewed its lease of 15,000 square feet of office space at One Park Place — the 10-story, 300,000-square-foot, Class A office building at 300 S. State St. in downtown Syracuse.
Peter Finn and Marty Dowd CBRE/Syracuse, with Roger Christensen of CBRE/Minneapolis, represented the tenant, the real-estate firm said in a news release. Financial terms of the lease were not provided.
Hartford Fire Insurance Co. offers auto and fire insurance products and services.
One Park Place, which opened in 1983, is one of the largest office buildings in Syracuse. Building tenants include Disability Management Services Inc., the IRS, and NBT Bank.
Jefferson County’s hotel occupancy rate rises in September
Hotels in Jefferson County were slightly fuller in September compared to a year ago, according to a recent report. The hotel occupancy rate (rooms sold as a percentage of rooms available) in the county rose 1.7 percent to 64.6 percent in September from 63.5 percent in the year-ago month, according to STR, a Tennessee–based hotel
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Hotels in Jefferson County were slightly fuller in September compared to a year ago, according to a recent report.
The hotel occupancy rate (rooms sold as a percentage of rooms available) in the county rose 1.7 percent to 64.6 percent in September from 63.5 percent in the year-ago month, according to STR, a Tennessee–based hotel market data and analytics company. It’s the second straight monthly increase in Jefferson County’s occupancy rate.
Revenue per available room (RevPar), a key industry indicator that measures how much money hotels are bringing in per available room, jumped 6.1 percent to $64.66 this September from $60.95 in September 2016.
Average daily rate (or ADR), which represents the average rental rate for a sold room, increased 4.3 percent to $100.11 in September from $95.97 a year earlier.
Year to date, Jefferson County’s occupancy rate is down 1.7 percent to 53.7 percent compared to the same period in 2016, while its RevPar is up 0.7 percent to $53.08. The county’s ADR has risen 2.5 percent year to date to $98.77, according to STR.
Phase I of Joint Schools Construction Board project in Syracuse wraps up
SYRACUSE — Syracuse Mayor Stephanie Miner says the first phase of the Joint Schools Construction Board (JSCB) project is complete. The effort resulted in four “fully renovated” schools throughout the Syracuse City School District (SCSD), along with the completion of “smaller” renovation projects, Miner’s office said in a news release issued Oct. 26. The project’s
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SYRACUSE — Syracuse Mayor Stephanie Miner says the first phase of the Joint Schools Construction Board (JSCB) project is complete.
The effort resulted in four “fully renovated” schools throughout the Syracuse City School District (SCSD), along with the completion of “smaller” renovation projects, Miner’s office said in a news release issued Oct. 26.
The project’s second phase will focus on additional renovation projects at schools throughout the district.
The first phase of the JSCB project resulted in full renovations of four schools. They included H.W. Smith Pre-K-8 School, Dr. Weeks Elementary School, the Public Service Leadership High School at Fowler, and the Institute of Technology at Syracuse Central.
Crews handled more than $150 million in work during the course of the project. Additionally, they completed smaller renovation projects at Clary Middle School and Bellevue Academy, Miner’s office said.
The average building in the SCSD is 72 years old, the office said, citing a 2012 report from the Albany–based Conference of Big 5 School Districts. Five of the district’s 35 buildings were built before 1920.
Second phase
Phase II of the JSCB authorized $300 million in funding for up to 20 projects. The funding is estimated to cover about one-third of the district’s identified building-repair needs.
The board, codified in the phase II enabling legislation, includes Miner; Jaime Alicea, superintendent of the Syracuse City School District; three members Miner appointed; and two members Alicea appointed, according to Miner’s office.
“Critically important to the JSCB project is our commitment to minority and women contracting goals, as well as local hiring. We exceeded our goals during phase I, and I look forward to meeting the higher standard set by the board for phase II,” Miner added.
Phase I of the JSCB had a 9 percent minority-owned and 6 percent women-owned enterprise contracting goal. Those numbers were “exceeded,” as minority-owned contractors handled 12.5 percent of the work and women-owned enterprise contractors completed 7.2 percent, according to Miner’s office.
The project’s second phase has “more ambitious” goals through a project-labor agreement (PLA).
They include the use of 20 percent minority and women-owned business enterprise contractors (12 percent minority and 8 percent women).
The goals also include 20 percent minority hiring, measured in “overall” man or woman hours, and the goal of having 20 percent of those hired for the work include city residents, “measured in overall man or woman hours.”
As part of the PLA, labor unions which plan to work on the project have agreed to place workers who are graduates of JSCB-sponsored or partnered training programs into their apprenticeship programs, assigning them to available work opportunities as part of the school-reconstruction program. The unions will be working with the contractors on the project to “accomplish this goal.”
Syracuse’s JSCB was created by special legislation by New York State in 2006, according to a notice on the JSCB web page at the City of Syracuse’s website. Legislation is required “due to New York State regulations pertaining to municipal financing and borrowing,” the notice said.
Here are some recent tweets that came across the @cnybj Twitter feed, offering various business, career, personal, and digital/social-media tips. NFIB @NFIB Being careless with your #smallbiz #branding strategy can cost your business and investors. Avoid these mistakes: http://bit.ly/2iMRZl2 Vanessa Dunford @vaniccilondon http://ow.ly/co7h30gdjDZ 5 tips on how to get back up when life knocks you
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Here are some recent tweets that came across the @cnybj Twitter feed, offering various business, career, personal, and digital/social-media tips.
NFIB @NFIB
Being careless with your #smallbiz #branding strategy can cost your business and investors. Avoid these mistakes: http://bit.ly/2iMRZl2
Vanessa Dunford @vaniccilondon
http://ow.ly/co7h30gdjDZ 5 tips on how to get back up when life knocks you down #entrepreneur #business #success #Tips
Tara L. Boschetti @tlboschetti
8 #Startups Trying to Make #2018 a Little #Easier for Everyone https://buff.ly/2z9Qzbx #Business #SmallBiz #Startup
Maria Johnsen @iMariaJohnsen
It doesn’t matter how good you are in your craft, if you don’t handle your customer inquiries properly, you lose in #smallbiz #SEO #tech
Mitch Mitchell @Mitch_M
21 things bosses say that are total nonsense https://www.msn.com/en-ca/money/careersandeducation/21-things-bosses-say-that-are-total-nonsense/ar-AAsVSce
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New York’s Paid Family Leave Creates More Costs for Employers, Employees
New York has a habit of enacting policies that, rather than finding a balance, create burdensome regulations that are costly, overreaching, and often untested. Nowhere is this more evident than with the paid family leave program due to go into effect on Jan. 1, 2018. The concept of paid family leave is something most New
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New York has a habit of enacting policies that, rather than finding a balance, create burdensome regulations that are costly, overreaching, and often untested. Nowhere is this more evident than with the paid family leave program due to go into effect on Jan. 1, 2018. The concept of paid family leave is something most New Yorkers (including myself) agree with — that is, providing employees with the ability to take paid time off from work to care for a sick family member or to provide care for a newborn child. But as too often is the case in New York, our paid family leave policy fails to balance the needs of the employee with the employer and pays scant attention to costs. In typical New York fashion, our paid family leave benefit comes in the form of a Cadillac Escalade with leather seats rather than a standard four-door sedan.
Since 1993, under federal law, employees who have worked for their employer for at least 12 months are able to take up to 12 weeks of unpaid leave for purposes such as child birth, the need to care for a family member who has a serious health problem, or an exigency arising from a family member who is on active duty. The federal law recognizes that having an employee out of work for up to 12 weeks is much more burdensome on small businesses than those with a larger number of employees. The reason is simple. Small businesses have fewer people who can pick up the slack caused by a worker who is out on leave. Therefore, as a compromise, the federal law applies only to businesses with 50 or more workers. New York’s new paid family leave law provides no such protection to small businesses, and rather under New York’s law, all private-sector employers (regardless of size) are required to provide paid family leave to their employees. Therefore, if you are a coffee shop that employees two people and one of your employee takes leave, you will most likely have to either hire a temporary worker to cover for the absent employee, or you and your other employee will have to take up the slack.
It should be noted that New York’s program is for paid family leave unlike the federal program which is unpaid. Indeed, New York joins only three other states (California, Rhode Island, and New Jersey) that offer paid family leave. Interesting, but not surprising, the other states cap their paid family leave at four or six weeks. New York’s program, when fully phased in, will provide for 12 weeks of paid family leave. Even California, not a state known to be all that friendly to business, recognizes that lengthy employee absences can create hardship on employers and therefore tries to find a reasonable balance by requiring only 6 weeks of paid leave. In New York, these concerns are disregarded, and we will provide more than double the amount of leave (12 weeks) that is provided anywhere else in the country.
Lastly, New York’s paid family leave program, to some extent, leaves open the big question of how it will be funded. In the first year of the program’s existence (2018), an employee who takes paid family leave will be eligible to receive 50 percent of his or her average weekly wage. In the second year, 55 percent of his or her average weekly wage. In the third year, 60 percent and in the fourth year and thereafter 67 percent. To pay for the wages during leave, an employer is required to purchase an insurance policy for the family leave benefit or self-insure. The cost of purchasing that policy or self-insuring, in theory, is to be borne by the employee through a payroll deduction on all of the employer’s workers. The issue, of course, is whether the payroll deduction will be sufficient to cover the costs. Since the legislation caps how much can be deducted from an employee’s pay (for example $1.64 per week in 2018) there is a real fear that the amount deducted will not be sufficient to cover the costs and the employer will then be on the hook to pay whatever the shortfall may be. Since this is a new program, it is difficult to determine how many will take advantage of paid leave and therefore its costs are unknown. It my mind, it would not have been unreasonable for the state, since it was mandating the program, to either allow for greater payroll deductions in case the costs are greater than the amounts raised or, in the alternative, have the state subsidize any additional costs. Unfortunately, that is not what the state enacted.
In a way, the paid family leave program that is going into effect in January is a regressive tax on employees. Because all employees are required to contribute, employees, particularly those who live paycheck to paycheck, will soon notice their weekly earnings further diminished by the payroll deduction even if they never chose to take paid family leave. They, in essence, will be subsidizing those who chose to use the benefit.
There is merit to enacting a paid family leave law in New York. It will allow workers to utilize leave time without having to worry about the financial strain that may be put on a worker who is on leave for what almost everyone would consider legitimate purposes. However, since it is an untested program, New York should have taken its time putting it in place.
We could have followed the federal law by limiting the mandate to larger employers and kept the length of the leave at least in the vicinity of the time allowed elsewhere. But as often is the case, New York instead is providing a very generous program. Let’s hope that this mandate does not add to the already challenging economic picture that we face in upstate New York.
William (Will) A. Barclay is the Republican representative of the 120th New York Assembly District, which encompasses most of Oswego County, including the cities of Oswego and Fulton, as well as the town of Lysander in Onondaga County and town of Ellisburg in Jefferson County. Contact him at barclaw@assembly.state.ny.us, or (315) 598-5185.
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