Tag: massachusetts

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

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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.

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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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Biotechs and Robotics Pay Off for Massachusetts

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A law passed in 2008 that provides subsidies to biotech and robotics companies in Massachusetts is helping to grow these industries in the commonwealth. Some say the biotech and robotics industries in MA are beginning to rival those of Tokyo and California, which have long been considered the global leaders in this type of business.

Massachusetts Received One Third of Seed Stage Funding

One of the reasons for this growth in the commonwealth is the Massachusetts Life Sciences Act of 2008. This legislation authorized $1 billion in investments, grants, loans, and tax breaks over the next decade to be given to local biotech companies. The government is following through with their promise; they have presented over $761 million in seed-stage funding for these businesses between 2009 and 2013. This has allowed nine of the ten largest drug manufacturing companies to set up research and development laboratories in Massachusetts.

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Foundry robotics.

Homegrown vs. Tax Incentives—Paying Twofold

One of pivotal stipulation of the MA incentive package is that it focuses on local businesses who have already been working in the industry. Legislation hoped to unlock the commercial potential of research already being conducted at state universities including Harvard, MIT, and the University of Massachusetts. By attracting smaller companies on the cutting edge of research, Massachusetts has found that large companies tend to migrate to states where those small companies are thriving.

Army collaborates with robotics.

Massachusetts Grows Connections—And Keeps Them

Attracting smaller companies that draw the interest of larger companies has helped Massachusetts become a leader in the biotech and robotics industry. The new financial incentives attract companies and talent to the commonwealth. As the biotech and robotics industries continue to grow, investors have become more motivated to provide additional seed money for growing companies. Larger companies have spent more time mentoring startup companies after seeing their industry swell; the success of large and small companies comes as a benefit to the state.

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Atlas, a humanoid robot from Boston Dynamics.

The Future of Robotics in New England

Since 2008, at least twenty robotics companies have sprouted up in Massachusetts; venture capital in the robotics industry has also grown to more than $60 million, up from $20 million in 2008. Technology giants like Amazon and Google have provided millions of dollars in startup funds for robotic-focused companies through acquisitions and other forms of investment.

Unfortunately, trends have shown that smaller companies often sell to larger firms before they can grow to a significant size. This has prevented Massachusetts from becoming a true powerhouse in robotics. The international robotics industry saw $15 billion in 2010; it is expected to see $65 billion by 2025. Experts say that special focus will be given to robotics that provide everyday utility, including those that help clean and maintain homes.

Massachusetts has implemented incentives that have helped the state grow the robotics and biotech industries, but many experts say there is still significant room for growth.

Worcester Named Most Business-Friendly City in Massachusetts

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Massachusetts Small Businesses Make a Remarkable Turnaround in Just a Year

Business confidence in Massachusetts cities continues to grow . . . and you may not believe which city is at the top of the list. A recent survey of small business owners in New England ranked Worcester, Massachusetts, as the most business-friendly city in the state. When pinned against all cities in New England, Worcester was second only to Manchester, New Hampshire.

Worcester’s rise above regional hubs such as Boston and Providence caps a remarkable turnaround for the city. Business leaders agree that Worcester’s business climate is much-improved—the city received an overall grade of “B-” this year despite a lowly grade of “F” last year.

Worcester Official Sign Massachusetts

Worcester, MA Is Positioned to Expand Across All Business Sectors

Worcester and other mid-sized cities serve as a complement to Boston’s hub of finance, education, government, and professional services. They provide a hospitable climate for smaller businesses and manufacturers that may not be able to afford or be recognized in a larger city. Steve Rothschild, considered a small-business mogul in Worcester for his work with Applied Interactive, Bulbs.com, and Furniture.com, says that “Worcester is a great place to run a business because there is a well-educated workforce, an easy commute for employees, and low-cost commercial real estate.”

Worcester is particularly well-positioned because it has the history and infrastructure of a manufacturing hub but also a large service economy. The city boasts nine institutions of higher education and five major hospitals. Unlike many mid-sized cities that have struggled with population decline, Worcester has had steady population growth for the past three decades. Per capita income and education levels are on par with the state average. The combination of a well-rounded economy and an educated and skilled workforce allows Worcester to expand in many different sectors.

Downtown Worcester Ranked Business Friendliness MA

Improvement in Business Confidence “Grade” in Worcester, MA, Mirrors Massachusetts State Performance

The jump in Worcester’s business climate is consistent with the state’s improving economic indicators. The unemployment rate of 4.7% is significantly lower than the national average of 5.3%. For ten straight months, Massachusetts has increased its number of available jobs; 46,200 were added in 2015 so far—7,200 of which were added in July alone. Although most new jobs were in the education and health sectors, the state also added 1,400 manufacturing jobs in July. The Massachusetts Manufacturing Extension Partnership, based in Worcester, noted that much of the new manufacturing jobs came from small businesses with less than 50 employees. A number of jobs have also come from the booming craft beer industry in Massachusetts.

Business owners can be fickle when it comes to expressing approval of any business climate. The latest survey results, however, show that Worcester is headed in the right direction. If its trajectory continues, it will benefit not only the local economy, but the state economy as well.

Have you started a business in Massachusetts? Do you agree with the Worcester’s new grade of B-?

MA Craft Beer Industry Pours Money Into the Massachusetts Economy

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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.

MA_Craft_Beer_Taps_Into_Other_Industries

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!

cheers_to_micro_breweries_boosting_economy

Massachusetts Startup Creates Database to Connect Manufacturers

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While experts have regularly acknowledged the decline of the manufacturing industry in America, they have done very little to reverse it. An innovative, new-business incubator in Somerville, MA is starting to take steps in a better direction.

Greentown Labs—A Manufacturing and Technology Incubator

Greentown Labs assists other startups in the technology and manufacturing fields. Like many business incubators, it incorporates a cooperative working space for startups. However, unlike the others, Greentown also offers prototype-manufacturing space, shared machinery and shop tools, and a large event space. In total, the lab offers 33,000 total square feet of creative space for their companies. Manufacturing startups at Greentown are provided with the necessary infrastructure to move their company from conceptual stages to actual production- and revenue-making stages.

Greentown Labs currently hosts 40 companies and supporting organizations that employ over 300 people. Not surprisingly, many of Greentown’s companies specialize in clean technology and the energy industry. The lab also boasts an impressive list of energy-conscious alumni that have “graduated” into their own spaces.

Connect Green Startups Boston Massachusetts

Not only do Greentown companies have a versatile physical space to use, they also utilize the services of “sponsor companies” to assist their operations. For example, members are granted access to sponsor-supplied software at little to no cost to their company. Additionally, members have access to marketing, human resources, graphic design, insurance, and other services. Companies working in the incubator also have the all-important opportunity to network and collaborate with other startups.

Bringing Manufacturing Innovation Back to the Bay State

Incubators such as Greentown Labs make it easier for startups to bring manufacturing job opportunities back to Massachusetts. Over the past several years, Boston has quickly emerged as one of the country’s leading technological hubs. While major research universities such as MIT and Harvard play a role, a business incubator devoted to manufacturing provides a unique, invaluable advantage to the Boston area.

Massachusetts Business Incubator Is Popular Among Politicians

The incubator philosophy has not gone unnoticed by local business and government leaders. During a recent visit to the Greentown Labs, Massachusetts Senator Elizabeth Warren said they were “the best of what America has to offer.” She said that it is crucial to “level the playing field” between startup initiatives and technology giants; this will help prevent the behemoths from dominating the industry. As Greentown Labs continues to nurture these successful startups, we look forward to their growth and the positive impact they will have on our economy.

Greentown-Labs-Connects-Manufacturers

Massachusetts Confidence Index Offers Promising Data

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Stemming the tide of declining confidence in the Massachusetts economy for the first time in three months, employers indicated that they had a more positive view of the state’s economic outlook during the month of July. The Associated Industries of Massachusetts Confidence Index, which serves as a barometer of local business activity, increased by nearly three points last month, rising to 59.2 points on a scale of 100.

Seen as a benchmark of business function and opportunity in Massachusetts, the Confidence Index registered an all-time high of 68.5 points in 1997 and 1998; they saw a historical low of 33.3 points in 2009.

A lobbying and management group, the Associated Industries of Massachusetts (AIM) collaborates with Massachusetts employers to enhance the business environment and generate greater business opportunity. They also engage various sectors to help reduce healthcare expenditures, unemployment insurance assessments, and other related business costs. AIM also collaborates with legislators in defining regulations on local, state, and federal levels and promotes the need for a knowledgeable and skilled labor force. Another priority for the group is keeping members informed about mandated changes in employment standards and other regulations that may have an adverse impact on their business and the economy of the Commonwealth.

Chairman of the Associated Industries of Massachusetts Board of Economic Advisors Raymond G. Torto asserts:

The AIM Index is up three points from last July, and apart from its recent crest in February and March is at its highest level since December 2006. Like the economy itself, the Index has followed a long-term trend of improvement. But the upward course has been longer and bumpier than most past recoveries.

Data extracted from the released report indicates that the current Massachusetts confidence index data is as strong as from 2006, preceding the 2007 recession.

boston waterfront

Details from the Index:

  • Employers’ opinion of current business conditions, the Current Index, rose 3.5 to a level of 59.7 points in July.
  • Gauging expectations for the next six months, the Future Index, rose 2.2 to a level of 58.6 points.
  • Assessing the overall situations of their operations, the Company Index, rose 3.7 to a level of 61.7 points.
  • Increasing 5.3 to a level of 63.2, the Sales Index rose to its highest level in nine years.
  • Rising to 57.2, up from 54.7, the Employment Index indicated strength compared to prior months.

While the overall view is positive, there were some dips in the manufacturing sector, as well as a lower general confidence rating in areas outside the Boston Greater Metropolitan area, displaying a moderate rise of only 1.1 points. As with any business-monitoring system, fluctuations can be expected; however, there seems to be a consistent but gradual increase in confidence in the Massachusetts business climate.

Do you agree? What kind of working conditions have you experienced in Massachusetts?

Millennials and Money: Where Financial Literacy Failed

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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

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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.

Public Housing Pushes Residents Toward A Better Life

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Ray Mariano, executive director of the Worcester Housing Authority (WHA) and former four-term mayor of Worcester is on a mission to point individuals and families currently residing in public housing toward “A Better Life.”

A Better Life (ABL)

ABL is a program designed to encourage upward mobility for public housing tenants; challenging them to reach goals, become educated, secure employment, and to make better healthcare and financial choices.

Though the program was voluntary when instituted in 2011, it has since been made compulsory for some residents within the WHA system.

ABL HousingThe ABL program requires one adult in each household to work or attend school for a minimum of 1,200 hours per year, which is an average of 23 hours per week. Support services to reach for these goals are provided through grants as part of the program. If the residents do not make an effort to abide by the program rules within three years, they face eviction. The disabled and elderly are not a part of the mandatory participation program, so they will not be compelled to leave public housing.

The Cititzen’s Housing and Planning Association recently submitted a bill to the Legislature this past July, which would bring ABL to five housing authorities around the state. Some officials question the morality of making self-sufficiency programs mandatory. Mariano points to the statistics from the last three years as evidence of the program’s effectiveness. Only 36% of ABL participants were employed when the program first began. Since then, the percentage of employed participants has more than doubled. Additionally, the percentage of tenants going to school has tripled.

ABL Opposition

While political opposition can no longer prevent the implementation of mandatory participation, some tenants and community members are still at odds with ABL. Mariano, who grew up in Great Brook Valley—the same area currently targeted for the mandatory ABL program—is faced with the difficult mission of encouraging people in his community to embrace the change.

Feeling that it unfairly targets single Latino mothers and their children, the detractors point out that Mariano’s own 2012 statistics show that 89% of families in Great Brook Valley are headed by single females. Mariano has countered that ABL can help these families by making it possible for single mothers to get an education; many will also be eligible for childcare vouchers.

Latino familyThe Bigger Picture

While many families have been in WHA public housing for generations, many needy families are waiting to get in. By enabling those in public housing to make efforts to rise out of their current situation through education and gainful employment, those currently in need of safe and affordable housing will be able to get off of the waiting lists, out of homelessness, and into housing. Worcester currently faces a crisis, with over 5,000 people on the applicant waiting list for public housing. In order to provide those individuals and families with much-needed help, those currently in the WHA system need to make strides to move into self-sufficient lifestyles. Mariano believes that ABL is the right program to help them grow.

Public housing problems like these aren’t unique, but Worcester’s new mandatory BL program makes a statement. With people on both sides of the debate, Mass Business Blog wants your opinion. Do you have any stories or reactions to this program? Please share your thoughts on social media (and tag us so we can respond!) or write your comments below. Community conversations matter.

The Push for a Graduated Income Tax in Massachusetts

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Raise Up Massachusetts, a coalition representing religious leaders, liberal community organizers, and unions, is advocating a constitutional amendment to raise income taxes on the state’s wealthiest residents. The proposal, which would affect those earning more than $1 million annually, would reportedly bring in additional revenue of up to $1.4 billion per year.

The Massachusetts Communities Action Network, one of the coalition’s co-chairs, has indicated that the additional revenue would be earmarked for education and transportation, two areas where a number of needs have gone unmet over the past decade.

Taxes

Raise Up Massachusetts has previously lobbied the state legislature to raise the minimum wage and was successful with a ballot initiative that required employers to provide earned sick time to their workers. The constitutional amendment process, however, will take three years and will most likely face fierce opposition for anti-tax groups.

All Massachusetts residents currently pay a flat 5.15% income tax that will reportedly decrease to 5%. The “Fair Share Amendment,” as it’s called by its proponents, would raise taxes to 9% for those earning more than $1 million annually. The 9% rate would only apply on income over $1 million. Approximately 14,000 tax payers would be affected by the proposal, which comes at a time when legislators are renewing efforts to require those with higher income to take a greater responsibility in the taxation process. The “Fair Share” moniker comes from the fact that low and middle income taxpayers contribute more of their disposable income under a flat-rate system than the most affluent taxpayers.

kid writingProponents say the increased taxes could fund road and bridge reconstruction, investment in the MBTA and other regional transit bodies, and education funding— particularly for early intervention and post-high-school initiatives. Since 2002, state funding for education has failed to keep up with inflation, resulting in cutbacks in many school districts.

Opponents say that the proposal, if passed, would drive wealthy individuals away from Massachusetts. Voters have previously rejected ballot initiatives to move from a flat tax to a graduated income tax rate. A 1994 vote defeated a graduated tax rate with a 9.8 top rate, while a ballot question to establish a graduated income tax in 1972 was also defeated.

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