New Legislation In Reforming Scaffold Law Introduced As Advocates Hit NY Capitol

New legislation was introduced in Albany to reform what many consider the antiquated Scaffold Law in Albany as part of the Scaffold Law Reform Day on February 15, 2018.   The Scaffold Law was originally set forth in 1885 in order to protect construction workers injured in work-related accidents.  The law placed absolute liability on the property owner and construction company.  This means that the worker's negligence was not taken into account when limiting damages and percentage of fault.  It was an assurance of worker's compensation before such laws were in place in New York State.
A union of businesses and trade organizations have gathered to form a group called Scaffold Law Reform.  They gathered in Albany on the 15th for what they deemed Scaffold Law Reform Day.  Their goal was to  "urge legislators and Governor Andrew Cuomo to fix the only-in-New York Scaffold Law, and highlight the law’s impact on taxpayers and local governments".  According to the organization's website they cite the following as what New Yorkers pay for as a result of the Scaffold Law

 "The Scaffold Law costs taxpayers $785 million annually. 
– The Scaffold Law is estimated to add $200 – $400 million in additional costs to the construction of the new Tappan Zee Bridge.
– Local governments pay higher costs for capital projects, whether the work is done directly or through private contractors. For example, liability costs on one joint NY-NJ bridge projects are more than double on the NY side (see graph at right).
– More than half of the top 30 highest settlements resulted from Scaffold Law claims, and of those, 25% were against public entities. 
– The Scaffold Law adds as much as $10,000 to the cost of building a new home. 
– In 2014, the New York School Construction Authority’s (SCA) insurance costs soared to $240M because of the scaffold law, nearly triple that of the previous year, and no guarantee of coverage after 2014.
– The SCA’s increased insurance costs are equivalent to 8-10 new schools over a 3 year period. 
– Higher insurance costs for the SCA jeopardize the future of their Owner-Controlled Insurance Program, which provides insurance to over 800 M/WBE firms. Without this program, hundreds of M/WBEs may be put out of business.
– According to many disaster relief groups, the Scaffold Law has severely impacted reconstruction after Superstorm Sandy"

The impact to New Yorkers has also set legislators into action.  On the same day of the the gathering, a new proposal was introduced by Assemblyman John T. McDonald.  The proposal, which can be read here would change the standard from absolute liability and introduced contributory negligence when determining fault and damages.  The idea has been gaining momentum in the State as several influential periodicals have recently wrote about how the scaffolding law negatively impacts business in the State.

Mr. McDonald said this about the legislation he has introduced

"Safety is ultimately most important, which is why the reform we propose would simply make liability proportional to fault and would not weaken the law's safety provisions. By doing this, we are applying the same standard to every other type of liability throughout New York and we preserve the right for injured construction workers to sue, because we recognize the unique and dangerous nature of their work. We believe that proportional liability, when included in underwriting insurance, will lead to a reduction in the high insurance costs which we must hold insurance companies accountable for. In fact, according to a Cornell study peer reviewed by the Transportation Research Board of the National Academies of Science Engineering, and Medicine, "absolute liability" may actually increase the risk of work site accidents. Fixing the law would not only lower construction costs — which would allow firms to allocate more funds to hiring and compensation — it would actually create a safer work environment for all.

As lawmakers we must work together to solve problems and move this state forward. This is why we have decided to reach across the aisle and we stand ready to work with the governor and all of the stakeholders to fix this unjust and costly liability law. With the state budget currently under discussion, Scaffold Law reform should be a priority for all involved parties as we strive to make our state a more affordable place to live, with a friendlier business environment and more opportunity for our men and women in the labor force."

It should also be noted that New York is the last State to have the absolute liability as the standard since Illinois changed their laws in 1995.

Blue Harbour Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx.  Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.

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