VIEWPOINT: New NYS Labor Law Shines Light on Employee-Driven Innovation

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On Sept. 15, 2023, New York State Gov. Kathy Hochul signed an amendment to a New York Labor Law that would invalidate certain intellectual-property provisions in employment agreements, effective immediately. Under this amendment, Section 203-f, any provision in an employment agreement that requires employees to assign the rights to inventions to their employer will now be unenforceable if the invention was developed by the employee using the employee’s own property and time. The introduction of Section 203-f has significant implications for employers wishing to secure patent protection of inventions made by employees while under an employment contract. To obtain the best protection possible, it is recommended that New York employers review their employment agreements regarding restrictions and assignment clauses to ensure compliance with this new labor law.

Section 203-f protects companies if the work is “related” to the business

Employers should be aware of two important exceptions in Section 203-f that limit its reach and provide additional safeguards to companies. Specifically, employment agreement provisions requiring an employee to assign their rights to an invention will not apply to inventions that:

(A) relate at the time of conception or reduction to practice of the invention to the employer’s business, or actual or demonstrably anticipated research or development of the employer; or

(B) result from any work performed by the employee for the employer.

Under the first exception, employment agreements may require employees to assign over rights to inventions if the invention “relates to” the employer’s business, any ongoing research and development (R&D), or any anticipated R&D. Whether an invention “relates to” one of these categories is judged based on the time of the invention’s conception or its reduction to practice. “Conception” generally refers to when an invention reaches a certain level of definiteness in the mind of the inventor, whereas “reduction to practice” generally refers to the physical construction of the invention. However, the filing of a patent application for an invention is sufficient to trigger both the conception and reduction to practice standards.

Under the second exception, employees can still be required to assign over rights to inventions if the invention “results from” work performed by the employee for the employer. Unlike the first exception, this exception is not judged based on when the invention was conceived or reduced to practice.

Because New York State courts have yet to determine the exact bounds of this newly enacted law and what constitutes “relating to” and “resulting from,” it is recommended for all employers to seek guidance in determining whether specific employee-inventions are covered by these exceptions, as well as guidance in proactively addressing these concerns in new employment agreements.

Potential negative effect on current agreements

It is important for employers to consider whether their employment agreements contain a provision regarding employee inventions that is more restrictive than Section 203-f allows — i.e., does the agreement have a provision that would require an employee to assign to the company any invention invented by the employee regardless of whether the employee was using company time or property? If so, the entire agreement may be unenforceable.

One provision that could save an employment agreement from being entirely unenforceable is a severability clause. A severability clause may render only the provision violating Section 203-f unenforceable, while allowing the rest of the agreement to remain in effect. However, since contract language varies, employers must individually assess their employment contracts to determine if a severability clause is applicable.

With this new law in effect, it is crucial for employers to examine their employment agreements and seek legal advice to determine what level of action is necessary following the passage of Section 203-f.

Protecting confidential /proprietary information

Even if the employment agreement is not entirely unenforceable because of Section 203-f, employers may want to use this opportunity to consider whether their investments in innovation are adequately protected. For example, it is notable that Section 203-f protects a company’s trade secrets from being misused by an employee, but there is no protection for the company’s confidential or proprietary information. Because not everything qualifies as a trade secret, this potentially leaves companies vulnerable. To adequately protect its confidential and/or proprietary information, employers should consider creating policies that define appropriate use of confidential and/or proprietary information.

Conclusion

Businesses that engage in R&D and have employment agreements governed by New York State law should review their agreements to ensure there are no provisions that are more restrictive than allowed under Section 203-f. In some cases, employers may consider revising or supplementing their existing agreements, especially where the existing agreement is rendered entirely unenforceable because of Section 203-f. Furthermore, Section 203-f is an important reminder for employers that their employment agreements should include provisions protecting the company’s confidential and/or proprietary information.

Brendan J. Goodwine is an associate attorney in the Buffalo office of the Syracuse–based law firm, Bond, Schoeneck & King PLLC. He is a registered patent attorney with experience advising clients on issues related to intellectual property. Contact Goodwine at bgoodwine@bsk.com. Natalie C. Vogel is an associate attorney in Bond’s Albany office. She focuses her practice on representing employers in all aspects of labor and employment law, from counseling to litigation. Contact Vogel at nvogel@bsk.com. This article is drawn from the firm’s New York Labor and Employment Law Report on its website. Note: Associate Trainee Cecily Capo assisted in the preparation of this article. Capo is not yet admitted to practice law.

Electricians to hold year-long recruitment of apprentices

Employee Benefits & Human Resources, Health Care, New York News, Regional News, Subscriber Only, Technology

CLAY, N.Y. — The Central New York Electrical Training Alliance (ETA) says it will conduct a recruitment from Nov. 15, 2023 through Nov. 14, 2024 for 30 electrician apprentices, The 30 openings listed for apprentices represent the total number for the Central, Finger Lakes, Mohawk Valley, and Southern Tier regions of the state, the New

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CLAY, N.Y. — The Central New York Electrical Training Alliance (ETA) says it will conduct a recruitment from Nov. 15, 2023 through Nov. 14, 2024 for 30 electrician apprentices,

The 30 openings listed for apprentices represent the total number for the Central, Finger Lakes, Mohawk Valley, and Southern Tier regions of the state, the New York State Department of Labor (NYSDOL) said in its Oct. 13 announcement.

Apprentice programs registered with the NYSDOL must meet standards established by the commissioner, per the announcement. Under state law, sponsors of programs cannot discriminate against applicants because of race, creed, color, national origin, age, sex, disability, or marital status.

Women and minorities are encouraged to submit applications for apprenticeship programs, the NYSDOL noted. Sponsors of programs are required to adopt affirmative-action plans for the recruitment of women and minorities, the department added.

Applications are available online every day of every month during the recruitment period only at www.cnyeta.org.

Applicants who do not have access to a computer may call (315) 546-0221 to schedule using a computer at the sponsor’s training center at 4566 Waterhouse Road in the town of Clay. A computer will be made available Mondays through Fridays during normal business hours of
8 a.m. to 12 p.m. and 1 p.m. to 5 p.m.

Applicants who do not have internet access may also want to visit their local library, the NYSDOL noted.

Each applicant who meets the basic requirement will be granted an interview conducted by the Central New York ETA. Apprentice candidates will be selected in order of their ranking. All applications must be received no later than Nov. 14, 2024.

For further information, applicants should contact Central New York Electrical Training Alliance at (315) 546-0221. Additional job search assistance can be obtained at your local New York State Department of Labor Career Center (see: dol.ny.gov/career-centers).

Candidate requirements

The sponsor requires that applicants must be at least 18 years old. They must also have a high-school diploma or a high-school equivalency diploma (such as TASC or GED), including one year of algebra, math course 1, or high-school regents math.

Proof will be required after selection and prior to appointment, the NYSDOL said.

Applicants must also take the American Institute for Research’s Electrical Aptitude Test. A $20 testing fee will be required. The NYSDOL also noted that an applicant can request that this fee be waived. Fee waivers will be approved “upon showing verifiable proof of financial need.”

In addition, applicants must attest in writing that they are physically able to perform the work of an electrician, which may include climbing and working from ladders, scaffolds, poles, or towers of various heights and working in confined spaces.

Applicants must also pass a drug test, at the expense of the sponsor, at the time of appointment.

They must also be able to read, hear and understand instructions and warnings given in English and have reliable transportation to and from various work sites and required classes at the approved school, the NYSDOL said.

Tenney pushes bill to help tiny firms to offer retirement plans

Employee Benefits & Human Resources, Insurance & Financial Services, Law, Accounting & Taxes, Small Business, Subscriber Only

It’s a proposal to incentivize micro-businesses with fewer than 10 employees to adopt retirement plans, helping more workers save for retirement. U.S. Representative Claudia Tenney (R–Canandaigua) on Oct. 23 introduced the Retirement Investment in Small Employers Act (RISE Act), along with Rep. Dan Kildee (D–MI). Background As Tenney’s office explained it, the SECURE 2.0 Act

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It’s a proposal to incentivize micro-businesses with fewer than 10 employees to adopt retirement plans, helping more workers save for retirement.

U.S. Representative Claudia Tenney (R–Canandaigua) on Oct. 23 introduced the Retirement Investment in Small Employers Act (RISE Act), along with Rep. Dan Kildee (D–MI).

Background

As Tenney’s office explained it, the SECURE 2.0 Act of 2022 enhanced the retirement plan startup tax credits for small businesses with fewer than 50 employees to create incentives to adopt new plans.

SECURE 2.0 allows for 100 percent of retirement-plan administrative and startup costs to be covered for new plans, up to $5,000 per year. However, the law did not amend the formula relied upon to determine the amount an employer may claim in retirement plan startup tax credits, leaving the smallest micro-businesses and their employees “unable to take full advantage of the credit,” according to Tenney.

The RISE Act would fix that, “ensuring that micro-businesses benefit in the same manner as larger businesses,” she says.

“Congress must empower and reaffirm our commitment to small businesses across the country by taking steps to grant them a competitive edge in our economy,” Tenney said in a news release. “I introduced the Retirement Investment in Small Employers Act along with Congressman Kildee today to enable micro-businesses across NY-24 and the nation to offer their employees robust retirement plans and allow their employees to save for the future. I remain committed to advocating for tax policies that work in favor of our small businesses and hardworking families.”

All businesses, regardless of size, deserve the same opportunity and access to tax credits to help offset the costs of offering a retirement plan to their employees, Michael Majors, Paychex VP of HR solutions, said in the Tenney release.

“Paychex is proud to endorse Rep. Claudia Tenney’s and Rep. Dan. Kildee’s legislation to expand tax credits for micro-sized businesses which give incentives to offer retirement plans to help their employees save for the future,” Majors added.

“In mid-Michigan, small businesses support thousands of good-paying jobs and fuel our local economy,” Kildee said in the release. “I am proud to work introduce legislation with Congresswoman Tenney to help more employers set up retirement plans, ensuring more Michigan workers can save for retirement. This bipartisan bill is a win for small business owners and workers alike.”

Ask Rusty: About Federal Taxation of Social Security Benefits

Business Mentors, Law, Accounting & Taxes, Subscriber Only

Dear Rusty: Why are my Social Security benefits being taxed at all? The Social Security FICA payroll taxes taken out of my paycheck while I was working were paid with taxable income. Signed: Disgruntled Taxpayer Dear Disgruntled Taxpayer: Many Americans share your belief that federal taxation of Social Security benefits is unfair because we pay

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Dear Rusty: Why are my Social Security benefits being taxed at all? The Social Security FICA payroll taxes taken out of my paycheck while I was working were paid with taxable income.

Signed: Disgruntled Taxpayer

Dear Disgruntled Taxpayer: Many Americans share your belief that federal taxation of Social Security benefits is unfair because we pay into the program through payroll taxes on our taxable earnings. Unfortunately, Congress took a different view in 1983 when taxation of Social Security benefits was first enacted at a time Social Security was having financial issues. Congressional logic back then was that a beneficiary only personally pays 50 percent of the Social Security contributions made (the other half is paid by the employer) so, since your Social Security entitlement was only half paid for by you and the other half by your employer, the portion of your benefit attributable to your employer’s contributions should be taxable. So, it’s that other half — the portion of your benefit which resulted from employer contributions — which the 1983 Congress decided should be taxed. So, starting in 1984, if a beneficiary’s overall annual income from all sources exceeded $25,000 for a single filer or $32,000 for those filing married-jointly, half of that person’s Social Security benefits became part of their income taxable by the IRS.

That was how it worked until 1993 when a new and different Congress added another threshold which, if exceeded, resulted in up to 85 percent of Social Security benefits received during the tax year becoming taxable. The logic used for the 1993 law was that beneficiaries, on average, would only personally pay for about 15 percent of the lifetime benefits they would eventually receive. That led that Congress to conclude that if your combined income from all sources exceeded the higher threshold ($34,000 for single filers and $44,000 for those filing married/jointly), up to 85 percent of your benefits should be taxable. Please understand that I’m not defending nor endorsing those historical Congressional views, but I have researched why Social Security benefits are taxable at all, and the above is what I have learned from that research.

Please note, the Association of Mature American Citizens (AMAC) has long advocated for eliminating federal taxation of Social Security benefits or, at the very least, raising the thresholds at which benefits become taxable. The income thresholds for taxing Social Security benefits were established in 1983 and 1993, but those thresholds have never been adjusted for inflation. When taxation of Social Security started in 1984, less than 10 percent of beneficiaries paid income tax on their benefits, whereas today that percentage is over 50 percent and growing. If you want to add your voice to those who oppose federal taxation of Social Security benefits, you may wish to contact your Congressional representative to do so. And it is worth noting that 11 U.S. states, to varying degrees, also levy income tax on Social Security benefits.

Russell Gloor is a national Social Security advisor at the AMAC Foundation, the nonprofit arm of the Association of Mature American Citizens (AMAC). The 2.4-million-member AMAC says it is a senior advocacy organization. Send your questions to: ssadvisor@amacfoundation.org.

Author’s note: This article is intended for information purposes only and does not represent legal or financial guidance. It presents the opinions and interpretations of the AMAC Foundation’s staff, trained and accredited by the National Social Security Association (NSSA). The NSSA and the AMAC Foundation and its staff are not affiliated with or endorsed by the Social Security Administration or any other governmental entity.

OPINION: Public-safety solutions exist: time to take action

Opinion, Subscriber Only

Living on edge, fearful they could be the next statistic in a surge of criminal activity in communities across the state — this should not be a New Yorker’s story. Unfortunately, following the misguided criminal-justice reforms championed by progressives, too many people fall victim to the corruption of career criminals thriving in a seemingly lawless

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Law-enforcement officials and district attorneys are desperate for the New York Legislature to act. So far, progressives have allowed their political stubbornness to halt any substantial solutions from being enacted. Inaction has shamefully allowed criminals of all ages and backgrounds to continue jeopardizing public safety.

Remarkably, the city of Syracuse has seen a 55 percent spike in shoplifting since 2021. The Onondaga County District Attorney has echoed the sentiment from law-enforcement officials across the state, citing repeat offenders as a cause. Some individuals have been arrested for the same incidents as many as 29 times. For context, in New York City, nearly one-third of all shoplifting arrests were committed by the same 327 individuals, who were arrested more than 6,000 times. As legislators, we must recognize the problems impacting our communities and resolve them with common-sense solutions.

Earlier this year, in the wake of these concerning statistics from New York City, Assemblyman Mike Reilly (R,C–Staten Island) introduced legislation (A.5029) to increase penalties for persistent offenders. The bill would give district attorneys the power to consider the aggregate value of misdemeanor petit larcenies for up to 18 months after the first conviction in order to enforce stricter penalties. If that value is between $1,000 and $3,000, district attorneys would be allowed to charge an individual suspected of the thefts with the felony crime of “grand larceny in the fourth degree.”

Additionally, as noted by Syracuse Police Spokesman Lt. Matthew Malinoski highlighting the 65 percent surge in car thefts from last year, “often, the thieves are juveniles.” This has been part of a growing concern since the legislature passed “Raise the Age” in the 2017-2018 budget. Members of the Assembly Minority Conference and district attorneys have repeatedly warned of major flaws in the legislation, which provided an avenue for younger individuals to keep committing violent crimes with little to no consequences. Albany County District Attorney David Soares recently called the refusal by the legislature to fix the law “legislative malpractice.”

Even the strongest proponents of the “Raise the Age” law should be willing to undertake attempts to fix the glaring shortfalls and dangers that have resulted. The failure to provide accountability for youthful offenders of violent crimes is a disservice to public safety. There used to be mechanisms in place to identify troubled youth and provide opportunities for intervention before they progress to more violent criminal acts.

The Assembly Minority Conference has made a number of recommendations to address faults in the current law. Our legislation would:

• Require any violent felony offense — especially gang assault and possession of a weapon — committed by 16-year-old or 17-year-old adolescent offenders to be maintained in the youth part of criminal court unless all parties agree to move the case to family court.

• Include and define “circumstances” that would prevent a non-violent felony case from being moved to family court, should a district attorney prove one or more circumstances exist.

• Amend Criminal Procedure Law and the Family Court Act to ensure judges, prosecutors, and defense counsel can access records pertaining to arrests and juvenile-delinquency proceedings.

• Require a victim of a crime committed by a person under the age of 18 to be notified of the case outcome.

It’s time to start prioritizing public safety and putting an end to the career-criminal lifestyle. However well-intended progressives’ criminal-justice reforms may have been, the result is causing chaos. The legislature has a responsibility to work with stakeholders across the criminal-justice system to deliver meaningful change to restore order in our communities. Members of the Assembly Minority Conference remain ready and willing to begin the conversation.

William (Will) A. Barclay, 54, Republican, is the New York Assembly minority leader and represents the 120th New York Assembly District, which encompasses all of Oswego County, as well as parts of Jefferson and Cayuga counties.

MVHS officials outline moving plans as they prepare to open Wynn Hospital Sunday

Construction, Design & Real Estate, Health Care, Nonprofits, Regional News

Once the Wynn emergency department opens at 6 a.m., ambulances called for emergency patients will take them there instead of either of the other campuses.

OPINION: Loss of local news is a crisis for democracy

Opinion, Subscriber Only

A report from Northwestern University’s Medill School puts it bluntly: The loss of local journalism that we’re seeing in the United States is “a crisis for our democracy and our society.” I couldn’t agree more. We rely on free and vigorous news media for the effective functioning of our democracy, at all levels of government.

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We rely on free and vigorous news media for the effective functioning of our democracy, at all levels of government. An informed citizenry is an empowered citizenry.

When we lose news coverage, we lose oversight of our public officials. We need the press to be constantly looking in every nook and cranny where our politicians are working. America’s founders recognized this, enshrining freedom of the press in the First Amendment.

Early American newspapers, of course, were often partisan and aligned with political factions, but they played a crucial role in creating an identity for the new nation. The French political philosopher Alexis de Tocqueville, a keen observer of the young American republic, wrote that its newspapers were “the power which impels the circulation of political life.”

We still rely on news media to understand the workings of government. Newspapers, especially, play a key role in civic education and community engagement, which are essential to good governance. While serving in Congress, I learned that visiting a local newspaper office was a great way to learn what constituents were thinking.

But trends in business and technology have devastated local news. With the rise of the internet, Americans increasingly got their news online; many concluded they didn’t need to read the local paper. Newspapers relied primarily on advertisers to make money, but businesses found they could better target their ad dollars online. Newspaper revenue declined precipitously.

Closings and mergers followed. The U.S. has lost more than a quarter of its newspapers since 2005, according to the Medill School. Most of the newspapers that have shut down were weeklies serving small towns and rural communities. That’s been the trend here in Indiana, where a third of all weeklies disappeared in a recent 15-year period. Readership of the state’s newspapers shrank by half.

More than one in five Americans now live in what scholars refer to as news deserts, communities that lack or are at risk of losing local news sources. Seventy million people live in counties without a newspaper or served by only one paper. The newspapers that remain employ fewer journalists.

Studies have shown that, without strong local news, there’s more corruption in government, and taxes and municipal-bond costs are higher. Not surprisingly, voting rates are lower when no one is covering elections. As Americans increasingly get their information online or from partisan cable TV, political polarization grows more extreme. Fake news and conspiracy theories proliferate. This is an important cause of the dysfunction we’re currently seeing in Congress.

It’s true that news media have evolved throughout our nation’s history. Radio and TV disrupted the news business before the internet; and, if print newspapers go extinct, people will still seek out news.

We are seeing some encouraging signs with the growth of high-quality, reliable online news organizations, some of them following a nonprofit model. But digital-news outlets employ relatively few journalists compared to the newspapers of the past, and they tend to be concentrated in affluent urban areas and state capitals. Rural communities and small towns are increasingly left without local news.

On a positive note, the situation is widely recognized as the crisis that it is. Universities, nonprofits, and advocacy groups are working to find solutions. Major philanthropies such as the MacArthur and Knight foundations are pledging hundreds of millions of dollars to revitalize local news. Civic-minded individuals and organizations are stepping up to buy local newspapers or start new ones.

It’s essential that these efforts succeed. The future of our democracy and our society depends on it.

Lee Hamilton, 92, is a senior advisor for the Indiana University (IU) Center on Representative Government, distinguished scholar at the IU Hamilton Lugar School of Global and International Studies, and professor of practice at the IU O’Neill School of Public and Environmental Affairs. Hamilton, a Democrat, was a member of the U.S. House of Representatives for 34 years (1965-1999), representing a district in south-central Indiana.

MARY WILSON

People on the Move, Subscriber Only

MARY WILSON was recently hired as account coordinator at ABC Creative Group. She is an expert marketer with years of experience in the field, including account service, social-media management, and copywriting, the firm said. She has a hand in all accounts as a client contact and project manager, ensuring concepts and creative are developed and

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Pinckney Hugo Group

People on the Move, Subscriber Only

Pinckney Hugo Group has hired JILLIAN HENSON and MICHAEL GEORGE as assistant media buyers. Prior to joining Pinckney Hugo Group, Henson was a digital-marketing specialist at Terakeet, according to her LinkedIn profile. Before that, she was a marketing associate at Aging Advocates CNY. Henson has an MBA degree, with a concentration in ethical leadership, from

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TORIE HAIRSTON

People on the Move, Subscriber Only

TORIE HAIRSTON has been promoted to senior director of integrated health at Upstate Family Health Center (UFHC). Since starting at UFHC, Hairston has continually demonstrated dedication and expertise in the field of social work and equitable access to integrated health services, the center says. Throughout her career, Hairston has advocated for improved mental health and

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