Big Win for Injured Workers in MA: Courts Now Allowing Compensation for Pain and Suffering Damages

On February 12, 2016, the Massachusetts Supreme Judicial Court ruled that, in third-party settlements, workers’ compensation liens will not cover damages for injured employees’ pain and suffering. The compensation for these “noneconomic damages,” which had previously been awarded to workers’ compensation insurance providers, will now be passed on to the workers. The ruling in the case—DiCarlo vs. Suffolk Construction—came as a victory for injured workers, ensuring that workers’ compensation insurance providers may not claim the entirety of a worker’s settlement with a responsible third party.

The Law in Massachusetts

Massachusetts workers’ compensation law entitles injured workers to compensation for medical care and lost wages. However, it does not provide compensation for pain and suffering. In some cases, a worker’s injuries at a workplace occur as the result of negligence by a third party, such as a property owner or contractor. If the third party is responsible for the injury, the injured worker can sue for damages—including compensation for pain and suffering—from the individual or party at fault. In DiCarlo vs. Suffolk Construction, the court ruled that workers’ compensation will not cover the portion of a third-party settlement intended to cover pain and suffering.

What Is the Business Impact of the Court’s Decision?

Third-party settlement amounts are sometimes less than the full amount of a workers’ compensation lien. An injured worker may choose to accept a compromise settlement that guarantees some compensation rather than risking a loss at trial. Prior to the DiCarlo ruling, a workers’ compensation insurance company could reduce its lien and allow an injured worker to keep some portion of a third-party settlement; the law, however, did not mandate such a lien reduction. From now on, an injured worker will now receive the portion of a third-party claim set aside for pain and suffering, with the remainder of the settlement used to defray legal expenses and any workers’ compensation lien.

Agreeing on Fair Distribution

The ruling did not include a formula for allocating compensation for pain and suffering, but the court noted that the amounts must be fair and proportional. Third-party settlements are reviewed by either a trial judge or by the Department of Industrial Accidents; all parties have the right to be heard. As a result of the DiCarlo ruling, compromise must be made in the best interest of both injured workers and workers’ compensation insurers.

About the Author:

John J. Sheehan workers’ compensation law BostonJohn J. Sheehan practices workers’ compensation law in Boston, Massachusetts, where he was born and raised. Mr. Sheehan is a member of organizations including the American Bar Association, the Massachusetts Bar Association, and the Massachusetts Academy of Trial Attorneys. In 1993, John Sheehan graduated from Suffolk University Law School and gained admittance to the Massachusetts state bar.

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WE BOS Supports Women Entrepreneurs in MA

A new initiative in Boston seeks to close the gender gap in business ownership and success. In 2012, women owned about 36% of all small businesses in the US; however, men-owned firms average a 67.9% higher profit margin. Boston Mayor Marty Walsh recently announced WE BOS, a plan to help establish and grow women-owned businesses in Massachusetts with training, networking, and business counsel.

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Problem #1: Massachusetts Lags in Female-Owned Mid-Markets

A recent report by American Express and Dun and Bradstreet examined women and minority ownership of “middle-market” businesses. These are defined as businesses with annual revenue above $10 million but below $1 billion. There are approximately 4,000 such businesses in Massachusetts. Only 5% of these businesses are owned mostly by women; a paltry 14% have female chief executives.

Problem #2: Obstacles Include Lack of Access to Funding

Women-owned businesses often face obstacles when trying to get the necessary funding and support to grow. About 2% of venture capital funding is dedicated to women-owned businesses. This may be a consequence of Problem #1—that there aren’t enough women in leadership positions to even receive funding. A recent study by Babson College found that only 6% of venture capital firms have even a single female partner. Over the past ten years, the number of women-owned businesses in MA (and their success rates) has steadily increased, but not nearly as fast we’d like it to.

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Solution: WE BOS Seeks to Boost Women in Business

The news is not all bleak. The AMEX and Dun and Bradstreet survey indicates that women-owned businesses able to crack into the middle-market tend to have higher rates of both revenue and employment growth—they just need a little help getting through the door. Massachusetts leaders have taken the initiative to get women-owned businesses on their feet and put them in a position for growth.


The initiative is called Women Entrepreneurs Boston (WE BOS). The group, which will offer skill training, technical assistance, and other services to women-owned businesses, will be led by Kara Miller. Miller said “I am thrilled to expand our reach to women-owned businesses through WE BOS.” She mentioned that the organization’s goals are to both support and create women entrepreneurs in Boston.

we boston weekWE BOS Becomes Part of Women Entrepreneurs Week in October 2015

Miller’s initiative has been up-and-coming for a couple years now and will finally launch on October 12th. The date also marks the beginning of Boston’s inaugural Women Entrepreneurs Week. Throughout the week, women entrepreneurs will be able to attend workshops, speakers, roundtable discussions, and will have the opportunity to meet and connect with others. You can find a full list of events here, many of which are free to attend.

 

WE BOS joins other local endeavors designed to assist women in business such as Innovation Women and the Women on Main Initiative. Although Massachusetts businesses—along with those of the rest of the nation—are still far less diversified as they should be, these recent efforts will hopefully move us in a better direction.

Are you interested in attending any of the events at Women Entrepreneurs Week? Do you have any advice for women-owned businesses in MA, or business owners in general? 

Common Core Standards Are Questioned in Massachusetts Education

 

A spirited group of MA citizens, End Common Core MA, hopes to eliminate Common Core standards from the commonwealth’s education system. The MA state attorney general has officially declared the potential vote to be constitutional—a significant leap toward End Common Core MA’s goal. The group’s next (grueling) step is to gather 65,000 signatures for their cause, which will guarantee their question a spot on the November 2016 ballot.
 

Common Core Standards for College- and Career-Readiness in Massachusetts

The Common Core State Standards (CCSS) are a set of academic standards for kindergarten through 12th grade; they specify what students should be able to do by the time they reach each specific grade. The history of the CCSS can be traced back to 2008, when former Arizona Governor Janet Napolitano made it her goal to initiate a set of national educational standards.

Napolitano and her team had two primary objectives in creating the CCSS. First, they hoped to make American students career- and college-ready; the theory is that students who meet the CCSS will be prepared for both paths. The second objective was to use the CCSS to compare US student achievement against that of the rest of the world.

There is no explicit federal mandate to adopt CCSS, but the Department of Education has created incentives for states to adopt it by including Common Core as a criteria in applications for federal grants. Over forty states, including Massachusetts and the District of Columbia, have adopted some aspect of the CCSS since it was first offered.
 

Against the Common Core Standards

Opponents of the CCSS say that the standards represent a “one-size-fits-all” approach to education and focus too much on assessment and testing preparation at the expense of genuine learning. Valerie Strauss, for example, said in a letter published in the Washington Post:

When I read that math standard and others like it, I realized the claim of the creators of the Common Core—that the standards are clear, easy to understand and research-based—was simply not true.
 

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For the Common Core Standards

Proponents of the CCSS argue that the mandates give students the education they need to succeed in the economy of the twenty-first century. They also note that although the CCSS sets the standards, states and local districts are free to develop their own methods by which to meet those standards. Robert Pondiscio wrote in the National Review that:

It’s hard to imagine a single education reform that would do more to improve the verbal proficiency of American childrenespecially low-income and minority kidsthan for
[ . . . ] a rich, coherent elementary and middle-school curriculum to take deep and permanent roots in American schools.

People tend to swap sides, too—CCSS is obviously a complex solution to an even more complex problem. It seems difficult for many citizens to be wholeheartedly for or against the CCSS.
 

Business Groups Paying Close Attention

Massachusetts business groups are watching the progress of this debate closely. They recognize the need for a well-educated workforce that can fill the demands of increasingly sophisticated positions. They also recognize that a workforce lacking sufficient skills will require the assistance of government training (and financial aid), which will likely lead to higher taxes.

As a result, the Massachusetts Business Alliance for Education (MBAE) has come out in opposition to the proposed vote. MBAE supports the CCSS and claims that it would cost Massachusetts millions of dollars to repeal and replace the standards at this time. The MBAE spokesperson also noted that removing CCSS would make it highly burdensome to amend or replace standards in the future.

What do you think about Common Core in MA? Does Massachusetts need the Common Core to maintain a competitive economy?

MA Craft Beer Industry Pours Money Into the Massachusetts Economy

According to a report compiled by John Dunham & Associates, more than 25,900 new jobs in the commonwealth could be directly attributed to the the growing MA craft beer industry. Not only has craft brewing brought a rush of jobs into Massachusetts, it has generated over $2.5 billion in sales and taxes for the commonwealth.

MA Craft Breweries: Profit by the Barrel

Craft beer is a growing industry throughout the country—it has grown by 32% over the past few years. Simultaneously, though, large companies like Anheuser-Busch have seen their market shares decrease by as much as 7%. American beer palates seem to be evolving—or have at least begun to align more closely with the flavors of smaller craft breweries. In 1980, the Brewers Association reported that there were just 50 craft breweries in the country. As of June 2015, that number has risen to 3,739.

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Craft Brewing’s Early Days in Massachusetts

There is disagreement about the official “beginning” of the craft beer business, but it has early roots in Massachusetts. In the mid-1980s, Jim Koch went door-to-door in Boston selling his family’s home brew to local bars. He then founded the Boston Beer Company, following the huge success of his flagship beer, Samuel Adams. The company, which recorded a gross 2014 profit of over $465 million, is still dedicated to the growth of the MA craft beer industry. Early in 2015, the Boston Beer Company partnered with Accion to offer microloans of between $500 and $25,000 to small breweries. They also sponsor a hops-sharing program that helps smaller breweries obtain the hops necessary to brew India Pale Ales (IPA), one of the most popular styles of beer.

MA Craft Beer Taps Into Other Industries

Craft beer sales have significantly improved the Massachusetts economy in a number of ways. Twenty-nine cents of every dollar spent on craft beer in Massachusetts go toward personal and business taxes paid by brewers—that’s $766 million in additional tax revenue. Craft brewing has had a ripple effect on other industries as well. The agricultural industry, for example, benefits from brewers’ incorporation of fruits, vegetables, spices, and other seasonings into their beers. This experimentation has catalyzed a flux of new brews that were previously unavailable. Construction companies and contractors have been hired to renovate old warehouses and abandoned buildings into breweries, like Abandoned Building Brewery in Easthampton, MA. The manufacturing industry has benefitted from craft brewing’s bottling, canning, and labeling processes. In Massachusetts alone, brewing has created over 7,000 supplier jobs.

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Guests enjoy food and brew at Mayflower Brewery Company in Plymouth, Massachusetts.

Craft Brewing Expected to Grow Lager and Lager

As a growing industry, craft brewing has created a nationwide economic swell, with microbreweries cropping up in towns and cities across the United States. Not sure where to start? Visit a local Massachusetts craft brewery today. Recommend your favorite beers in the comments below!

Craft brewing has shaped up to be a hugely profitable and flourishing industry. We don’t know about you, but we’ll toast to that. Cheers!

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Millennials and Money: Where Financial Literacy Failed

Looking back on your high school days, you probably remember lessons like long division or the day you finally mastered a cursive “Q.” But what about the class where you learned to balance a checkbook? Or apply for a car loan? While Baby Boomers were more likely to reap the benefits of a home economics class covering life skills and simple financial planning, Millennials are now facing a devastating education gap when it comes to basic financial literacy. Now, a pair of Worcester natives are on a mission to target this educational blind spot and help money management make sense to our future business leaders—before it’s too late.

Recent Clark University graduate, Rebecca Liebman, and her brother Michael, are harnessing the power of the Internet to tackle the problem of financial illiteracy among Millennials. They are planning to launch a website called LearnLux.com, which would give Millennials the tools to control and understand their financial futures. Michael Liebman, LearnLux president, is currently majoring in finance at Bentley University, but his passion for figures extends back as far as age seven, when, according to their website, he “proclaimed [ . . . ] that his favorite thing to do was count money.”

“The 19–35-year-old demographic has the worst national average for credit scores.”

pigThe lack of financial literacy among Millennials has resulted in some frightening statistics. Research by the credit information service, Experian, has revealed that the 19–35-year-old demographic has the worst national average for credit scores, and a significantly unfavorable debt-to-income ratio than any previous generation. According to a recent poll by the Brookings Institution, about 50% of college freshmen surveyed are incorrect or entirely ignorant of the amount of student loan debt they carry. While many hypotheses have been put forward as to the cause of the lapse in financial education for Millennials, the takeaway is clear: Millennials must be taught to manage their own money before they can competently take the helm of larger financial responsibilities.

LearnLux’s founders may have a better handle on their finances than many of their peers, but that doesn’t mean they’re taking on this challenge alone. Their innovative approach to financial education for young adults has convinced the MassChallenge startup accelerator to select LearnLux as one of its 128 finalists for 2015. While the program is still in its testing phases, it seems clear that these young entrepreneurs are well on their way to bridging the gap in Millennial financial literacy.

Massachusetts Colleges Team Up to Create a Bright Future in the Photonics Industry

The Massachusetts Institute of Technology and Worcester’s Quinsigamond Community College will be teaming up with SUNY Polytechnic Institute and several other educational institutions on a Federal project to advance the applications the photonics industry in manufacturing. The partnership, known as Advanced Manufacturing Partnership 2.0, represents $600 million in Federal funds which will go toward establishing the nation’s first Integrated Photonics Institute of Manufacturing Innovation.

Massachusetts will be teaming up with educational institutions across the nation, utilizing the Commonwealth’s higher educational strengths to explore the applications of the photonics industry in manufacturing. MIT will lead in the development of cutting-edge technology such as robotics and complex medical devices. Meanwhile, Quinsigamond will provide practical training for the development of a middle-skill workforce that will be ready to fulfill a growing number of job opportunities in the manufacturing industry as a whole.

“Massachusetts is a key partner because of the technical expertise of the faculty and researchers here at MIT, and in part, because AIM photonics MIT is coordinating the education and workforce development program for the entire nation in this area,” said Krystyn Van Vliet, a professor of materials science and engineering and MIT’s faculty lead for the project.

The American Institute for Manufacturing (AIM) began an integrated photonics program in July that was announced by Vice President Joe Biden. The AIM integrated photonics program is one of nine such institutions dedicated to different areas of the manufacturing field.

hisotric industryMassachusetts has a long tradition of manufacturing and industrial production. Although textiles and mills may be a thing of the past, burgeoning industries have provided a new realm of opportunity for a state that is already familiar with manufacturing and its challenges. New tech sectors such as biotechnology, wearable devices, and robotics, combined with easy access to the educated work force needed to produce them, has put the Bay State in a favorable position to spearhead the development of future technologies.

“This partnership is key to developing the revolutionary technologies that will underpin the next wave of advanced manufacturing in Massachusetts and ensure the competitiveness of our manufacturing sector as a whole. We are harnessing education and innovation to build a platform for economic growth across Massachusetts. I look forward to seeing the continued great work from our Commonwealth’s innovation and education communities, and [to] participating in this national center with our neighbors in New York,” said Governor Charlie Baker.

The partnership serves as a part of Baker’s ongoing commitment to advancing the manufacturing industry within Massachusetts. Continued growth in the manufacturing sector will lead to new opportunities for everything from electronic design and manufacturing equipment, to medical devices, robotics, cyber security, and more. Van Vliet predicts that the AIM initiative will begin actively producing new technologies and opportunities for advanced manufacturing as early as January 2016.