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New York local sales-tax collections rise 21% in July
ALBANY, N.Y. — Local government sales-tax collections in New York state increased 21.2 percent in July compared the same month in 2020. It marks the fourth straight month that collections exceeded 2020 results and reflects the state’s recovery from the pandemic. That’s according to New York State Comptroller Thomas DiNapoli, who said on Aug. 17 […]
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ALBANY, N.Y. — Local government sales-tax collections in New York state increased 21.2 percent in July compared the same month in 2020. It marks the fourth straight month that collections exceeded 2020 results and reflects the state’s recovery from the pandemic.
That’s according to New York State Comptroller Thomas DiNapoli, who said on Aug. 17 that collections totaled close to $1.6 billion, up $276 million from July of last year.
New York City’s collections totaled $649 million, an increase of 14.2 percent, or $81 million, compared to July 2020. Every county outside of New York City also had year-over-year collections for July grow by double digits, ranging from 17.3 percent in Lewis County to 35.7 percent in Wayne County, DiNapoli’s office said.
“Last month’s impressive sales tax performance reflects this year’s strengthening economy and positive jobs numbers,” DiNapoli said. “Overall collections around this time last year were severely weakened by the effects of the COVID-19 pandemic. New York’s local governments are seeing much stronger collections in 2021. However, with recent increases in infection rates occurring across the state, local officials must continue to monitor changing economic conditions and maintain vigilance when it comes to their finances.”

July’s “significant growth” in local sales taxes reflects that collections during the same month of 2020 were “weak,” with sales activity still recovering from the first wave of the pandemic. However, collections this July were also strong even by comparison with pre-pandemic 2019, growing 11.2 percent, or $159 million, over July of that year.
To be sure, July’s increase in sales-tax collections wasn’t nearly as high as the gains seen in June (46.1 percent), May (57.8 percent), and April (45.7 percent), respectively, as those months benefitted from comparisons to year-ago months more impacted by the pandemic shutdowns.
Methodology
During the last month of each calendar quarter, the New York State Department of Taxation and Finance reconciles quarterly distributions against what had been reported by sales-tax vendors for the reporting quarter and adjusts payments to local jurisdictions in those months “upward or downward accordingly.”
During the other months, including July, the payments are based on estimates. The next reconciliation will be reported in mid-October and will provide more information on the regional picture of sales tax collections for the third quarter (July-September) of 2021, DiNapoli’s office said.
VIEWPOINT: Non-Competes are Enforceable in New York, but Attorneys get a Pass
Non-competition agreements are ubiquitous across the United States in most industries and at all levels of those industries. These agreements have come under increasing scrutiny, including by the Federal Trade Commission and the New York Attorney General. While non-competition agreements are largely permissible in the professions, one notable holdout that prohibits them is the one that writes
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Non-competition agreements are ubiquitous across the United States in most industries and at all levels of those industries. These agreements have come under increasing scrutiny, including by the Federal Trade Commission and the New York Attorney General. While non-competition agreements are largely permissible in the professions, one notable holdout that prohibits them is the one that writes and enforces them — the law profession. Ethical rules in New York largely prohibit attorneys from agreeing to non-competition provisions as a condition of their employment, but a recent case questions whether that rule should be reconsidered.
In July, Judge Furman of the Southern District of New York addressed an issue of first impression under New York law, whether “a non-compete agreement between a company and one of its in-house lawyers that restricts the lawyer’s ability to work post-employment is per se unenforceable.” The case was Ipsos-Insight, LLC v. Gessel. While Judge Furman ultimately granted the former employee’s motion to dismiss because the non-competition agreement was unenforceable, he noted that rules regarding non-competes for attorneys are worth reconsidering.
In that case, the defendant, Jacob Gessel, was a former in-house counsel for plaintiff, Ipsos-Insight, the giant market-research company. As a condition of his employment, Gessel was subject to, among other things, a paid non-compete clause where, if the company chose to invoke the clause, Gessel would be given up to a year’s worth of salary and would be prohibited from working for competitors of Ipsos. Gessel resigned from his position and began working for a direct competitor of Ipsos shortly thereafter. Ipsos brought an action alleging breach of contract in part because of his violation of the non-compete clause. Gessel moved to dismiss “on the ground that non-compete clauses are per se unenforceable against attorneys, including in-house counsel, under New York law.”
The court started with the New York Rules of Professional Responsibility, which provide that “[a] lawyer shall not participate in offering or making . . . a partnership, shareholder, operating, employment, or other similar type of agreement that restricts the right of a lawyer to practice after termination of the relationship, except an agreement concerning benefits upon retirement.” The primary purpose of this rule is to protect the ability of clients to freely choose their counsel and to protect the ability of counsel to choose their clients. This rule applies regardless of whether the attorney is in-house or private practice.
In reaching his decision, Judge Furman relied on two New York Court of Appeals decisions: Cohen and Denburg. Cohen involved a forfeiture-for-competition provision in a law firm’s partnership agreement. The court in that case held that the provision was an “impermissible restriction on the practice of law” under the precursor to Rule 5.6(a). Denburg involved a provision in a law-firm agreement that “imposed a financial obligation on withdrawing partners who continued to practice law in the private sector.” The court in that case found the provision unenforceable because the effect of the clause deterred competition and infringed on clients’ choice of counsel.
The New York Court of Appeals noted that in “the absence of these cases, the Court would almost certainly reject Gessel’s argument that the Non-Compete Clause is categorically unenforceable” because the clause would be subject to the traditional reasonableness inquiry that governs non-compete agreements in the state. The court took another critical look at the “per se rule against non-compete clauses” for attorneys noting that the rule is “difficult to defend” because clauses like this can be used in other professions, such as medicine and accounting. Moreover, the court reviewed additional criticisms of Rule 5.6(a) including a Colorado court that interpreted its own rule 5.6(a) (which was “substantially identical” to New York’s) and found that “an ethical rule should not serve as license for an attorney to break a promise, go back on his word, or decline to fulfill an obligation, in the name of ethics.”
In outlining the ruling, after going through multiple criticisms of Rule 5.6(a), the court explained that the New York Court of Appeals decisions “stand for the proposition that an agreement that runs afoul of Rule 5.6(a) is per se unenforceable under New York law.” The court further wrote that this rule “applies not only in the law firm context, but also in the in-house context.” Finally, accepting Rule 5.6(a) as binding on New York in-house lawyers, the court explained that “companies would have an incentive to insist that their in-house lawyers sign commercially valuable non-compete clauses as a condition of employment (notwithstanding the resulting ethical violations of any lawyers who participated in drafting such agreements, as well as the in-house lawyers who signed them).” This would result in a difficult choice for in-house attorneys who would have to either “violat[e] their ethical obligations or forgo[ ] employment.”
While this ruling is unlikely to have any immediate effect on the New York Rules of Professional Responsibility, it is possible that this will be the start of a conversation. Judge Furman appears to request further consideration of the rules, as he writes, “a strong case could perhaps also be made for limiting Cohen and Denburg to their facts and not extending their holdings to agreements with in-house counsel.” Notwithstanding this decision or Rule 5.6(a), attorneys are still bound by strict duties of confidentiality under Rule 1.6 and are subject to obligations regarding former clients under Rule 1.9. Going forward, both in-house attorneys and law firms should be aware of this ruling and consider either tailoring non-compete agreements with attorneys accordingly or outright eliminating them.
Joseph S. Nacca is a member (partner) in the Rochester office of Syracuse–based law firm Bond, Schoeneck & King PLLC. He is a commercial and construction litigator. Contact Nacca at jnacca@bsk.com. Samuel P. Wiles is an associate in Bond’s Rochester office. He is a litigation attorney who counsels businesses in employment, commercial, health care, and property disputes. Contact Wiles at swiles@bsk.com. This article is drawn and edited from the law firm’s website.

Bonadio Group to expand NYC footprint with planned merger
ROCHESTER, N.Y. — The Bonadio Group — a Rochester–based accounting firm that operates an office in Syracuse — plans to expand its footprint in the New York City area. Ganer + Ganer, a New York City–based accounting firm, plans to merge its operations with the Bonadio Group. Ganer + Ganer will begin operating under the
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ROCHESTER, N.Y. — The Bonadio Group — a Rochester–based accounting firm that operates an office in Syracuse — plans to expand its footprint in the New York City area.
Ganer + Ganer, a New York City–based accounting firm, plans to merge its operations with the Bonadio Group.
Ganer + Ganer will begin operating under the Bonadio name as of Nov. 1, per a news release on the Bonadio Group’s website. The accounting firms didn’t announce any financial terms of their merger deal.
The transaction will close on Nov. 1, Bonadio tells CNYBJ in an email.
Under the deal, the Bonadio Group will add 21 employees and will offer its services “across the entirety of the state.” The transaction will give Bonadio more than 800 employees spanning 11 offices.
“This merger fuels our ambitious growth strategy in alignment with our strategic five-year plan,” Bruce Zicari, CEO of the Bonadio Group, said in the release. “The finance and accounting expertise of the Ganer + Ganer team will be hugely beneficial to our firm, and we’re extremely excited to expand our New York metro presence to continue offering the best-in-class professional services to all of our clients.”
Founded in 1978, the Bonadio Group has offices in Rochester, Buffalo, Syracuse, Albany, and beyond, and has steadily grown since 1996, completing 21 mergers since its establishment. The firm describes itself as the “largest independent provider of professional services in upstate New York.”
Founded in 1974, Ganer + Ganer provides services to help clients with their financial and organizational challenges. Its focus on tax preparation, financial statements, business management, and consulting will complement the Bonadio Group’s existing services, the Rochester–based firm contends.
“The Ganer + Ganer team is looking forward to our next steps with The Bonadio Group,” Maxine Ganer, partner at Ganer + Ganer, said. “We are confident that this partnership will only enhance our offerings and the quality of practice for our clientele.”

New state bills on wage theft, overdraft fees signed into law
ALBANY, N.Y. — During his final days in office, then-Gov. Andrew Cuomo signed bills focused on wage theft and requiring banks to take several actions that prevent overdraft fees. Details on both bill signings were announced Aug. 19. Wage theft One of the measures that Cuomo signed relates to strengthening laws prohibiting wage theft. It
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LBANY, N.Y. — During his final days in office, then-Gov. Andrew Cuomo signed bills focused on wage theft and requiring banks to take several actions that prevent overdraft fees.
Details on both bill signings were announced Aug. 19.
Wage theft
One of the measures that Cuomo signed relates to strengthening laws prohibiting wage theft. It also closes a loophole created by litigation, clarifying that liability for failure to pay wages has “no exceptions.”
The “No Wage Theft Loophole Act” serves to amend sections New York’s Labor Law to clarify that wage theft remains illegal with no exception, furthering the intent of the statute to protect the wages of workers.
Previously, language throughout the statute was “narrowly interpreted” by courts, depriving workers of the wages they’ve rightfully earned, the former governor contended. The legislation closes that loophole and strengthens the rights of workers to be paid all they are owed.
Overdraft fees
Cuomo also signed legislation requiring banks to take several actions that prevent overdraft fees.
The legislation requires banking institutions that maintain checking accounts to pay checks in the order they are received. If a bank receives a check for a greater amount of money than the balance in the account, it may decline to pay the check.
However, the banking institution must honor any smaller checks that can be paid with the existing account balance.
Under current law, if a banking institution receives a check for a larger amount of money than the funds in the account, it will not only dishonor that check, but all subsequent checks, even if there are sufficient funds in the account to pay them.
This measure requires banks to honor subsequent checks if they can be paid using funds in the account.

AAA Western & Central New York hires new corporate counsel
AAA Western and Central New York has announced the hiring of Elizabeth (Liz) Bove as corporate counsel. Bove, who will work from AAA’s headquarters in Amherst (suburban Buffalo), will represent AAA on all legal matters and provide legal counsel to the organization. She most recently worked as a senior associate at Phillips Lytle LLP in Buffalo, AAA
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AAA Western and Central New York has announced the hiring of Elizabeth (Liz) Bove as corporate counsel.
Bove, who will work from AAA’s headquarters in Amherst (suburban Buffalo), will represent AAA on all legal matters and provide legal counsel to the organization.
She most recently worked as a senior associate at Phillips Lytle LLP in Buffalo, AAA said.
Her background also includes experience as an associate attorney with a private law firm and as an appellate law clerk with the U.S. Department of Justice.
Bove acquired the Certified Information Privacy Professional for the U.S. Private Sector (CIPP/US) designation by the International Association of Privacy Professionals (IAPP). The certification is accredited by the American National Standards Institute (ANSI).
A graduate of the University at Buffalo’s School of Law, Bove sees this role with AAA Western and Central New York as a chance to transition from litigation to a corporate counsel role.
“I see this as a new opportunity to be involved with a wonderful and prevalent organization and fulfill my calling to help people,” Bove said.
In her new role, Bove will draft and negotiate contracts and offer counsel on a variety of legal matters, including company policies, governance, and regulatory issues.
“I love to problem solve,” she added. “I look forward to providing counsel to the different business lines and helping them work through issues. I’m excited to help AAA work efficiently and effectively.”
A Buffalo native, Bove grew up in communities south of the Buffalo metro area (referred to in Western New York as the Southtowns) and now resides in Orchard Park with her husband, Aaron, and 16-month-old son, Griffin.
In her spare time, Bove enjoys reading, traveling, and spending time with her family and friends, AAA said.
OPINION: Offering A Way Forward
They say you should expect the unexpected, but no one expected the COVID-19 pandemic, and how the events of the last 18 months have turned our lives upside down and changed the way we live. Granted, life was already full of stress and challenges before the coronavirus made it to the U.S. But when it did arise,
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They say you should expect the unexpected, but no one expected the COVID-19 pandemic, and how the events of the last 18 months have turned our lives upside down and changed the way we live.
Granted, life was already full of stress and challenges before the coronavirus made it to the U.S. But when it did arise, we were forced to adjust the way we conducted ourselves and had to adhere to many restrictions and limits.
The Genesis Group — a civic organization that unites business and community leaders working to advance regional economic, social, and cultural interests, and to foster unity and cooperation in the Mohawk Valley region — is grateful to the thousands of quality health-care workers and first responders. We are very fortunate to have them here, we admire their dedication to our personal well-being, and we thank them for their selfless service to our community.
Looking to the future, it’s a very promising time for the Mohawk Valley region. New development, new companies, and new jobs are at our doorstep. In offering a way forward, I believe our community should stay focused on new opportunities.
Webster defines opportunities as a set of circumstances that makes it possible to do something. I agree with this and believe that it’s important to have a positive attitude as well. With an upbeat outlook and a smart plan of action, our region can rise above any challenge.
If you’re looking for advice during this time of challenge, who better to turn to than one of the most inspiring women of all, who overcame more than most of us could ever imagine? Helen Keller has always been someone that we have admired. If anyone can teach us about overcoming obstacles, it’s her. Keller said “always remember during hard times that just because you may be suffering, other people always have bigger problems than you do. Plus, character truly is developed during hard times, not easy ones. It might not seem fun, but it makes you a better person if you have a positive outlook.”
Right now, our region has a plethora of opportunities to build upon. Just look at the stability of some of our local industries, such as education, health care, agri-business, banking and finance, insurance, and the emerging nanotechnology and semi-conductor industries. The Genesis Group supports these industries and has established committees and projects in many of these areas. We just need to capitalize and seize the opportunities.
Another key that’s important for growth is collaboration and partnerships. Simply put, we must all work together to move our region forward. As the saying goes: together everyone accomplishes more (TEAM). For many years, the Genesis Group has said “that we are much stronger when we work together.” Right now, unity and cooperation are a must.
The Genesis Group continues to unite individuals and organizations dedicated to adaptive leadership. Genesis will continue to be a trusted voice that advocates for and partners with those seeking positive transformation. Now in its 21st year of serving the Mohawk Valley region, the Genesis Group is offering its own opportunities to help create positive impact. Genesis is a source for news and information about the Mohawk Valley, views and opinions, community projects, regional events, and home to The New Genesis Center for Data Analytics.
When determining a way forward, we must be mindful that life can change in a minute — as it did in the past year. Let us remember with reverence those that have been lost, while celebrating the blessings that remain and look forward to new opportunities and better days ahead.
Raymond J. Durso, Jr., is president and CEO of The Genesis Group. Contact him at RDurso@thegenesisgroup.org.
OPINION: Indispensable figures show sweep of U.S. history
You can get a sense of the sweep of American politics and history by identifying a few of the indispensable men in our country’s history. There are many, of course, and my list is quite limited. Similar lists of indispensable women could be developed; and they have been, by the late broadcast journalist Cokie Roberts and others.
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You can get a sense of the sweep of American politics and history by identifying a few of the indispensable men in our country’s history.
There are many, of course, and my list is quite limited. Similar lists of indispensable women could be developed; and they have been, by the late broadcast journalist Cokie Roberts and others.
Who are these indispensable men? I’ll mention a few, all of them well known.
First, of course, is George Washington, known as the father of his country. He led the ragtag army that defeated the British in the American Revolution. He played an essential role in drafting the Constitution. A Virginia aristocrat, Washington fought as an officer in the French and Indian War, earning a reputation for bravery and leadership. After the Constitution was ratified, the Electoral College unanimously chose him as the new nation’s first president.
Thomas Jefferson, who became the third president, was the primary author of the Declaration of Independence, which famously said that “all men are created equal.” Yet he owned more than 600 men, women, and children in his lifetime. A learned and cosmopolitan man, Jefferson called slavery a “moral depravity” and a “hideous blot,” but owned slaves his entire life, including several of his own children and their mother. Ten of the first 12 U.S. presidents, including Washington, Madison, and Monroe, were slave owners.
Washington and Jefferson came from land-owning families, but Alexander Hamilton did not. An orphan born in the West Indies, he rose through talent and hard work, became the first secretary of the treasury, and established the American financial system. He supported a strong central government, was the primary author of the Federalist Papers, which advocated for approval of the Constitution, and was an early leader of the Federalist Party. Improbably, a hugely popular Broadway musical has made Hamilton a well-known figure today.
Abraham Lincoln, the 16th president, guided the nation through the Civil War and issued the Emancipation Proclamation, which declared enslaved people in the South to be free. Lincoln was born in Kentucky and spent his boyhood in Southern Indiana, which he recalled as “a wild region, with many bears and other wild animals still in the woods.” He moved to Illinois, where he practiced law and entered politics. Although Lincoln’s positions regarding slavery evolved, he knew the practice had to end. Two years before being elected president, he declared the “government cannot endure, half slave and half free.”
Fast forward 100 years to John F. Kennedy. The youngest person to be elected president, he brought optimism and idealism to the White House: “Ask not what your country can do for you. Ask what you can do for your country,” he said. He prioritized the space program and called for putting a man on the moon. After the Cuban Missile Crisis brought the world excruciatingly close to disaster, Kennedy argued that the U.S. and Soviet Union had a vital interest in stopping the spread of nuclear weapons, leading to the test-ban treaty of 1963.
Martin Luther King, Jr. was the acknowledged leader of the mid-20th century civil-rights movement. He rose to prominence as a young minister leading the Montgomery Bus Boycott and delivered the iconic “I Have a Dream” speech at the 1963 March on Washington for Jobs and Freedom. He worked tirelessly to make Jefferson’s declaration, that people are “created equal,” more than a noble ideal.
As much as these men accomplished, it’s striking to recall that four of them had their lives cut short by violence: Hamilton was killed in a duel, and Lincoln, Kennedy, and King were assassinated. In the time they had, in their different ways, they made the United States a more perfect union.
Lee Hamilton, 90, is a senior advisor for the Indiana University (IU) Center on Representative Government, distinguished scholar at 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.

KAITLYN A. HENSLER has been promoted to senior audit manager at Dannible & McKee, LLP. Hensler, CPA/CFF, CFE, joined the accounting firm in 2013 and in her current role, she is responsible for the planning and management of multiple engagement teams through the performance of audits, reviews, and compilations for the firm’s clients. Her areas
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KAITLYN A. HENSLER has been promoted to senior audit manager at Dannible & McKee, LLP. Hensler, CPA/CFF, CFE, joined the accounting firm in 2013 and in her current role, she is responsible for the planning and management of multiple engagement teams through the performance of audits, reviews, and compilations for the firm’s clients. Her areas of focus are construction, manufacturing, employee-benefit plans, forensic accounting, and fraud detection and prevention services. Hensler graduated from SUNY Oneonta, where she earned a bachelor’s degree in professional accounting.
JAMES LAUBENSTEIN has been promoted to senior audit manager at Dannible & McKee. Laubenstein, CPA, joined the firm in 2011 after interning the year before. He provides auditing, accounting and consulting services to a variety of clients, including manufacturers, dealerships, broker dealers, insurance agencies, professional-service firms, and the health-care industry. He also specializes in providing auditing services to a variety of employee-benefit plans. Laubenstein earned his MBA degree in 2011, and a bachelor’s degree in accounting in 2010 from St. John Fisher College.
ROBERT REEVES has been promoted to audit manager at Dannible & McKee. Reeves, CPA, joined the accounting firm in 2017 and is responsible for providing audits, reviews, and compilations in various industries. He also works with clients to help identify and resolve accounting and audit issues. Prior to joining Dannible, Reeves worked as a senior accountant for a private, commercial real-estate company. He earned his MBA from SUNY Oswego and a bachelor’s degree in accounting from Niagara University.
JOSHUA T. JASEWICZ has been promoted to tax senior at Dannible & McKee. Jasewicz, CPA, joined the firm’s tax department in 2019, after interning for two years. He has experience in income-tax planning and compliance services to individuals and closely held companies. He specializes in the architecture and engineering (A/E), professional services and manufacturing industries, including multi-state corporations and high-net-worth individuals. Jasewicz is also involved in the accounting firm’s business valuation and succession-planning services. He earned his MBA with a concentration in accounting in 2019, and a bachelor’s degree in accounting in 2017, from SUNY Oswego.

CHRISTOPHER J. APKER was promoted from controller to chief financial officer (CFO) at HOLT Architects. Apker has worked for HOLT Architects, which has offices in Ithaca and Syracuse, since 2002. During his tenure as controller and now CFO, he provides strategic leadership on the firm’s financial affairs, plays an essential role in operations with planning,
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CHRISTOPHER J. APKER was promoted from controller to chief financial officer (CFO) at HOLT Architects. Apker has worked for HOLT Architects, which has offices in Ithaca and Syracuse, since 2002. During his tenure as controller and now CFO, he provides strategic leadership on the firm’s financial affairs, plays an essential role in operations with planning, forecasting, and benchmarking, and oversees the firm’s business team and functions. Apker received his bachelor’s degree from St. Bonaventure University and his MBA from Le Moyne College.

RENEE MADISON has been appointed VP for equity and inclusion at Colgate University. Madison — who is currently director of human resources for the City of Indianapolis and Marion County, Indiana — has experience promoting inclusion and equity in higher education and government. She will start her new job at Colgate on Oct. 4. Madison
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RENEE MADISON has been appointed VP for equity and inclusion at Colgate University. Madison — who is currently director of human resources for the City of Indianapolis and Marion County, Indiana — has experience promoting inclusion and equity in higher education and government. She will start her new job at Colgate on Oct. 4. Madison will report to the Colgate president and serve as a member of the president’s cabinet. Before joining the mayor’s cabinet in Indianapolis, Madison was chief human-resources officer, senior advisor to the president for diversity and compliance, and Title IX coordinator at DePauw University. She also served as a deputy prosecuting attorney in the Domestic Violence Division of the Marion County Prosecutor’s Office and an associate director of enforcement for the NCAA. Madison holds a bachelor’s degree in sociology from DePauw and earned her law degree at Indiana University’s Robert H. McKinney School of Law. Madison will serve as a core member of Colgate’s senior leadership team, providing oversight and strategic vision for policies and initiatives that promote an inclusive and equitable learning and working environment for students as well as faculty and staff members. With a staff of four, she will oversee the Office of Equity and Diversity, which currently guides hiring practices, Title IX cases, ADA concerns, affirmative action/equal opportunity, and the university’s nondiscrimination and anti-harassment processes.
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