By Diane Cahill, Cahill Strategies, CEO
Every day, New York’s construction industry under the weight of Labor Law §§ 240/241, the so called “Scaffold Law”, struggles under a 19th-century relic that fails both workers and businesses alike. This absolute liability law holds contractors and property owners fully responsible for any gravity-related injury, even if a worker ignores safety protocol or operates under the influence. That means a worker impaired on the job or blatantly violating site rules still results in full liability for others.
Supporters of the Scaffold Law claim the law promotes safety, yet studies show the opposite. Illinois repealed its version of the Scaffold Law in 1995, adopting a comparative fault standard. Since then, Illinois has seen improvements in jobsite safety and broader contractor participation in public projects. New York remains the only state with such an uncompromising absolute liability standard.
The consequences are staggering. New York’s construction liability insurance costs are among the highest in the nation, averaging up to 10% of total project costs, compared to 3%-5% in other states, according to an industry report from CRC Group. Some insurers have simply exited the state.
A recent federal lawsuit has pulled back the curtain on how New York’s absolute liability laws have become a magnet for fraud. In March 2024, Tradesman Program Managers and Roosevelt Road Re filed a civil RICO complaint in federal court alleging that a network of attorneys, medical providers, litigation funders, and claimants orchestrated staged or exaggerated construction accidents. The scheme relied on Labor Law 240 to compel high-dollar settlements, even in cases lacking legitimate fault. The scope is staggering as one law firm, who was not initially named in the RICO complaint, moved to withdraw from 200 to 300 active cases, citing ethical concerns about a referral source.
The law’s continued existence is due in large part to powerful lobbying interests. Trial-lawyer associations and their allies have long resisted reform, arguing that absolute liability protects workers. Why such staunch defense from trial lawyers? Because the law essentially guarantees lucrative settlements. With liability virtually automatic, even in cases of worker negligence, the legal environment is uniquely profitable for plaintiffs’ attorneys.
Congressman Nick Langworthy’s Infrastructure Expansion Act aims to exempt federally funded projects from absolute liability rules, potentially saving insurers and taxpayers billions. He frames the effort as a way to “get New York Building again”, offering relief where Albany has failed to act.
Federal relief alone is not enough. Without a full repeal or overhaul at the State level, New York’s contractors will continue to be penalized for adhering to an outdated standard.
It’s time for Albany to choose between empowering trial lawyers’ profit machines, or embracing reforms that foster a safer, more competitive, and cost-effective construction industry. Reforming the Scaffold Law is a smart, 21st-century step forward, for workers, taxpayers, and New York’s future.
Diane Cahill is CEO of Cahill Strategies, a New York MWBE-certified government relations and communications firm with a robust construction practice area specializing in project-specific solutions and regulatory reform. www.cahillstrategies.com
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Cahill Strategies Construction Solutions Guide to NYC Building Code Chapter 33 Revisions
Cahill Strategies has developed a detailed and documented guide to the most important revisions that New York construction professionals are likely to encounter every day. We were able to do this because Cahill Strategies has been involved instrumentally in the development of these codes.
The 100-page book is meticulously organized and can be used as a handy reference when many common issues arise. In each section, the specific revisions are highlighted, and the new information is presented in a clear and practical manner with further explanation on why the change is so important. All of this, reviewed and vetted by one of New York’s longest serving, former DOB professionals – Cahill Strategies’ Director of Construction Code & Safety, Bobby D’Alessio.
More on Our Construction Solutions Team
Cahill Strategies is a team comprised of skilled construction industry strategists dedicated to guiding clients through the intricate regulatory and political landscape, resulting in propelling projects within New York City to completion. Our expertise lies in representing large general contractors, sub-contractors, construction management firms, design professionals, and owners/developers.
- Liaising with City and State regulatory agencies such as NYC DOB, DOT, FDNY, DEP, Landmarks, HPD, DOF, DOH, DOE, and others;
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- Consultation and negotiating fines with the NYC or NYS Department of Finance, and other City and State regulatory agencies.
New York Construction Solutions
Cahill Strategies has experience representing large general contractors, construction management firms, owners, and developers. A key to our success is our vast network of decision makers that we have the ability to reach on your behalf. Additionally, our team is involved in the legislative and regulatory processes at the Federal, State, and Local levels which affect the construction industry in New York State, New York City, and surrounding regions. We possess the knowledge of industry standards and trends, along with key relationships that will bring your projects to fruition. Read more…
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Get to know Bobby D’Alessio
Robert “Bobby” D’Alessio, is a former New York City Department of Buildings Senior Executive Director of Construction Safety. Mr. D’Alessio’s focus is predominately in the areas of construction code and safety analysis for our clients’ major new building and renovation projects in the New York City and surrounding regions.
As Cahill Strategies’ Director of Construction Code and Safety, Bobby brings an unparalleled level of knowledge and practical experience to our growing construction solutions practice area.
Cahill Strategies Welcomes Former NYC DOB Director of Construction Safety Enforcement, Bernie Ross
Cahill Strategies Welcomes Former NYC DOB Director of Construction Safety Enforcement, Bernie RossIt is with great pleasure that Cahill Strategies welcomes veteran DOB safety leader Bernie Ross as Senior Construction Safety Associate.
Bernard “Bernie” Ross is former New York City Department of Buildings Director of Construction Safety Enforcement. With more than 20 years serving the DOB as a Construction Inspector, Supervising Inspector, Director Major Projects, and finally, Director of Construction Safety Enforcement. Read more about Bernie here…
Get to know Kevin Moran
Kevin, the Vice President of Construction Solutions at Cahill Strategies, brings a wealth of experience in the New York construction industry to his role. He has a strong track record of guiding clients through complex building processes, with a range of successful projects under his belt, including commercial and residential developments, infrastructure and transportation projects, and various utility matters.
