Join the Fight for NY Scaffolding Reform November 8th


Next Wednesday, November 8, join Kent Diebolt as he attends the Lawsuit Reform Alliance of New York (LRANY) at their annual meeting where the fight for scaffold reform is still going strong. If you can’t attend, we urge to to consider joining LRANY and ensuring your voice is heard.

The Issue

New York Labor Law sections 240/241, commonly called the “Scaffold Law”, holds contractors and property owners absolutely liable for any elevation related injuries sustained by a worker, regardless of the worker’s own negligence.  New York is the only state in the nation which still has such a law.

The Solution

LRANY supports the elimination of the Scaffold Law’s absolute liability standard and the implementation of a comparative liability standard, in which a worker’s own negligence, intoxication, or refusal to use safety equipment may be admitted as evidence in court. This would stimulate job creation, improve workplace safety, and reduce the burden on the state and its taxpayers.

For more information: LRANY

Read about Congressman John Faso’s efforts

Congressman John Faso Joins Effort to Reform New York State Scaffold Law

Congressman John Faso announced on Tuesday the introduction of innovative, new legislation entitled the “Infrastructure Expansion Act,” which would relieve some of the negative effects of New York State’s Scaffold Law by imposing a liability standard of comparative negligence on all construction projects that receive federal financial assistance. This legislation is directly intended to reduce the cost of new construction – both public and private – which is subsidized using federal funds.  The proposal would ensure that any project using federal dollars is not subject to New York law mandating “absolute liability” on the building owners and contractors.

Listen to the WCNY interview below, and read the full press release here.

September 19, 2017: Rep. John Faso and Mike Elmendorf

 

For more about the Scaffold Law Reform, visit www.scaffoldlaw.org

 

Scaffold Law Lobby Day 2017

scaffold-law-reform-logo-2017On Tuesday, February 14th, advocates from across New York will meet at the State Capitol in Albany to urge elected officials to reform the antiquated Labor Law Sections 240/241. Evan Kopelson will be attending to show his support for scaffold reform. Here are the facts.

This law, first enacted in the 19th century and sometimes referred to as the Scaffold Law, is the only law of its kind in the country that imposes absolute liability on owners and contractors, without regard to cause and with virtually no opportunity for defense as part of a due process procedure.  This has had a huge economic impact on construction costs, ultimately costing New York taxpayers an estimated $785 million annually, and making some businesses and projects uninsurable.

Join us in the fight. This is your chance to make your voice heard! Registration is free, and you may bring guests.   http://scaffoldlaw.org/scaffold-law-lobby-day-2017/

Update – Scaffold Law Reform Day at the NYS Capitol

scaffold-law-graphicVertical Access was a proud sponsor and participant in Lawsuit Reform Alliance of New York Day at the Capitol in Albany, NY on February 10.  Teams composed of general and trade contractors, insurance brokers and underwriters, lawyers, material suppliers and consultants met with State Senators and Assembly Members to discuss the inequities of Labor Law 240.

This law, first enacted in the 19th century and sometimes referred to as the Scaffold Law, is the only law of its kind in the country that imposes absolute liability on owners and contractors, without regard to cause and with virtually no opportunity for defense as part of a due process procedure. This has had a huge economic impact on construction costs, ultimately costing New York taxpayers an estimated $785 million annually.

Overall, the feeling at the end of the Day at the Capitol is that there was a much more positive reception from the New York legislatures we met with this year than there has been in the past and this may finally be the year of Reform.

Learn more at Lawsuit Reform Alliance of New York and www.ScaffoldLaw.org.

The truth about New York’s scaffold law is irrefutable …

The title of this post is the opening sentence from a guest viewpoint published in the Ithaca Journal on March 14, 2014 – Scaffold Law Hurts Contractors, Economy, by Brad Walters.  It goes on to say …

A recent Cornell study exposes the ugly truth about New York’s antiquated Section 240 of the Labor Law, more commonly known as the scaffold law. The law was created in 1885 and has remained unchanged over the years, in spite of greatly improved materials, methods, safety procedures and safety equipment. The law was put into effect in the days when contractors used wooden scaffolding to build high-rise buildings in New York City. Today, no other state in the country has such a law. In fact, the Cornell study suggests there is no other law like it on the planet.

The last state in the United States to have such a law was Illinois, and lawmakers there abolished it in 1995. So what were the results when Illinois put an end to the law? A study done by the Bureau of Labor Statistics in Illinois from 1995 to 2006 found that construction fatalities fell from 1.7 per one hundred thousand to -2 per 100,000 workers, and construction injuries fell from 2.7 per hundred workers to -0.7 per 100 workers. That same study found that statewide construction jobs increased from roughly 220,000 annually to a high of almost 280,000 jobs. continued – download full article (pdf)

The full Cornell study is available to download here:
The Costs of Labor Law 240 on New York’s Economy and Public Infrastructure
Final Report to New York Civil Justice Institute
December 31, 2013

It’s Time for New York to Reform the 1885 Scaffold Law

By Kent Diebolt

scaffold-law-graphicOne of the state-specific challenges of doing business in New York has to do with two little-known New York State Labor Law statutes from the late 19th Century. Described as necessary and good laws when they were passed in 1885, things have changed in the last century, particularly with the advent of mandatory Workers’ Compensation insurance and federal Occupational Safety and Health Administration (OSHA) regulations passed in the early 1970s.

Intended to protect construction workers and also known as NYS Labor Laws 240/241, these statutes place “absolute liability” on the contractor and building owner for injuries or fatalities resulting from a fall from height. In cases such as this, the entire onus is on the employer and no findings of liability on the part of the employee are permitted.  Liability on the part of the employer is assumed in all cases and the concept of proportionality of responsibility or use of recalcitrant worker or culpable conduct defense may not be considered by the courts and by statute, are considered irrelevant to these cases.

Findings of fault without a jury trial or damages result and judgment are made by a trial judge. However, since the defendant (employer) is de-facto guilty and cannot defend against claims, virtually all of these cases result in a guilty judgment or a settlement associated with very high costs for the insurance companies involved. Hearings for settlement amounts are made in front of a jury and since the guilty judgement has already been rendered, the awards tend to be “huge”. If they are held at all, mediation hearings essentially determine the amount of damages, since culpability has been established by statute.

At one time, all 50 states had similar legislation on their books but with the exception of New York State, these were all repealed or reformed subsequent to OSHA and worker’s compensation legislation. As a result, worker’s compensation is the sole recourse in these states unless negligence can be demonstrated on the part of the employer. Similar to the other 49 states, proposed reform of New York State’s 240/241 will not eliminate the rights of a worker to sue an employer for negligence but will allow employers to defend themselves in court. Reform would allow owners/contractors to present evidence, which is not presently allowed.

A Toxic Insurance Environment in New York State

All of this has resulted in a toxic insurance environment in New York State, with general liability and worker’s compensation premiums for companies that employ workers at height far exceeding the average rates in the rest of the country. Many insurance companies have left the New York State market because of the high frequency of successful claims, their inability to defend against claims and the severity of the rewards that result.

240/241 statures are kept in place due to political influence brought to bear primarily by labor unions and various New York State tort lawyer associations. Since a percentage of the awards are taken by the law firm, 240/241 cases represent very little risk associated with extremely high rewards to law firms trying these cases. Minor risk with very high, guaranteed returns result in a steady income stream for these law firms. Essentially, all a plaintiff’s attorney must do is establish the case as a 240/241 legal case. Historically, these cases have been broadly interpreted and are rarely turned down by the courts. Once in the courts, high rewards are all but guaranteed. Once a summary judgment is granted, interest is applied at 9% per year until the case is finally resolved.

In the last year, I have attended two excellent programs on this topic. The first was organized in March 2013 by the Greater New York Construction User Council. The second was in mid-January of this year, and was organized by the New York City Master Riggers Association, which hosted keynote speaker Tom Stebbins of the Lawsuit Reform Alliance of New York.

Tom presented historic background on 240/241, comparisons to insurance costs in other states and an excellent overview of the current situation in Albany. LRANY has also organized an industry lobbying day in Albany, set for early February.  A link to download the presentation is provided below.

The issue of New York’s Labor Laws 240/241 is one that needs to be addressed.  It is a major reason for the high cost of construction and buildings maintenance in New York State and is significant contributor to a lack of competitiveness both between neighboring states as well as within the state.

Additional Information

The Scaffold Law and the Campaign for Reform (Tom Stebbins’ presentation, PDF download)
Scaffold Law Reform website
Contractors and Workers at Odds Over Scaffold Law, by Kirk Semple, New York Times, December 17, 2013.