FOR IMMEDIATE RELEASE February 11, 2014 Contact: UAlbany/Cornell University Joint Study: New Yorks Scaffold Law

Causes Injuries; and Costs Billions Long defended safety standard under fire for making worksites less safe (Albany, NY): A three-part, joint study released today by researchers at the University at Albany and Cornell University sharply counters the claim that the Scaffold Law improves workplace safety. According to the study, New York incurs an additional 677 workplace accidents per year because the Scaffold Law. Researchers concluded that, analysis indicates that Labor Law 240 [Scaffold Law] increases the construction injury rate in the occupations to which it is applied with a very high degree of confidence. For over thirty years, Labor Law 240, also known as the Scaffold Law, has been a frequent target of debate in Albany. Proponents of reform, including contractors, businesses and local governments, charge that the absolute liability standard of the Scaffold Law is outdated and unnecessarily drives up costs for construction in New York. Those opposing reform counter that placing absolute liability onto contractors and property is essential for workplace safety. In addition to making worksites more dangerous, researchers at the University at Albany reviewed hundreds of cases and public filings and discovered that the Scaffold Law diverts at least $785 million of public money away from schools and local governments towards lawsuits, legal costs and insurance. The third part of the study analyzed the effect of the $785 million public sector cost on the rest of economy, as well as the cost the Scaffold Law on the private sector, which is estimated at $1.487 billion. These two costs, along with the associated legal costs, workers compensation payments, medical costs and other costs bring the total estimated cost of the Scaffold Law to between $2.92 billion and $3.01 billion dollars annually. Long time advocates of reform say the study severely damages the only justification for the centuries-old law. If the Scaffold Law causes injuries and costs our economy three billion

dollars a year, why are we the only state to have it? said Tom Stebbins, Executive Director of the Lawsuit Reform Alliance of New York, a group who has long called for reform of the Scaffold Law. We cannot waste public money on a law that makes worksites more dangerous. It defies all common sense. Other advocates of reform agree that the study is perhaps the final piece needed for reform in Albany. Weve known for years that the Scaffold Law costs taxpayers and our economy billions. It is so bad that many insurers wont even write policies in New York. Now we know that it causes injuries. What possible defense is left? said Mike Elmendorf, President and CEO of the Associated General Contractors. In addition to the 677 additional injuries and $785 million public costs, the study also found: New York is the only state in the country to have such a law, and there is no evidence that any other country has a similar standard of absolute liability Additional injuries associated with the Scaffold Law cost New York State between $34 million and $84.7 million in workers compensation costs, and between $26 million and $65.1 million in direct, indirect and quality-of-life costs, annually Redirecting the money spent on lawsuits and insurance to the construction industry would add an additional $480 million in labor income Shifting dollars from lawyers and insurers to contractors would be a net gain of 12,000 jobs In addition to the public sector cost, the study estimates that $1.487 billion of private sector construction costs may be associated with the Scaffold Law Study estimates an additional $110 million spent annually on legal costs associated with the Scaffold Law The total estimated public and private sector costs associated with the Scaffold Law are between $2.92 billion and $3.01 billion

With the study in hand, Scaffold Law reform advocates look for positive traction in the legislature this year.

#### The New York Civil Justice Institute is a non-partisan nonprofit research organization committed to providing objective analysis and solutions to issues affecting the integrity, equality, and fundamental fairness of New Yorks Civil Justice System.