The Underground Winter 2024

THE

UNDERGROUND NJLICA’S QUARTERLY PUBLICATION WINTER 2024

Meet the NJLICA award winners, learn how to avoid the most common safety violations, and read a roundup of 2023's labor legislation.

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Advisory | Tax | Audit

Certainty is what we have delivered to the New Jersey Construction industry for over 40 years.

Grassi’s Construction advisors and accountants provide the industry knowledge and guidance that construction professionals need to make confident business decisions.

Carl Oliveri, CPA, CCIFP, CFE, MBA Partner, Construction Practice Leader grassicpas.com/construction 2

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Construction, Forestry

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LETTERS

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NJLICA BOARD OF DIRECTORS I am both honored and humbled to assume the position of president of the New Jersey Land Improvement Contractors of America. It is a privilege to lead such a dedicated and accomplished group of professionals who have made significant contributions to our industry. I am truly grateful for this opportunity.

As I enter this role, I am mindful of the many challenges and opportunities that face the land improvement industry. Together, we have the power to shape the direction of our industry, influence policy, and foster collaboration with both our contractor and associate members. I am committed to serving with integrity, transparency, and an unwavering dedication to the principles that define NJLICA. Our combined expertise enhances our membership. Developing relationships within NJLICA is crucial to promote collaboration and support. By working together, we can accomplish remarkable things and have a positive impact on our industry. My goal is to concentrate on building strong connections and creating opportunities for cooperation, sharing ideas, and providing support to each other. With a collaborative approach, we can overcome obstacles and achieve our goals more effectively. Together, we can take NJLICA to greater heights.

To our board of directors, executive director, contractors, and associate members, I am excited to collaborate with you to enhance NJLICA’s position as one of the top trade organizations in New Jersey through education, events, and new initiatives. I would like to express my sincere gratitude to all of our members.

Your unwavering support has been the backbone of NJLICA’s success throughout the years. We deeply appreciate your dedication and commitment to our cause.

Thank you for being an invaluable part of the NJLICA community.

It’s hard to express how much Past President Ron Garofalo has meant to me, both professionally and personally.

Ron and his wife, Debbie, have been unwavering pillars of support for me in

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countless ways. As president of NJLICA, Ron has achieved so much, such as growing our membership to over 600, launching our successful apprenticeship program, and leading community projects like Revamp the Camp and Repair the Fair. He is an exceptional servant leader and an inspiration to us all.

I am excited to work with Mark Krutis, our incoming vice president. Mark is a highly respected professional in our industry and will be an invaluable asset to our board’s leadership team.

On behalf of our entire membership, I would like to give recognition to Buddy Freund for his exceptional dedication and hard work as our executive director. The board of directors and I are excited to continue working together to enhance and broaden our organization. I express my sincere gratitude to Buddy and his wife, Cathy, for their valuable contributions in making us one of the leading trade organizations in New Jersey and all of LICA. Congratulations to all of the NJLICA award winners for 2023: Paul Spatz of V.A. Spatz, Bob Manis of North American Aggregates, and our friends from Prins Insurance: Amber Bosma, Jim Jansen, Bruce Mosier, and Dave Van Essen. You all truly represent the best of NJLICA. With your support and the collective commitment of our members, I am confident that we can accomplish great things during my tenure. Let us embark on this journey together, driven by a shared vision for the future of the construction industry. I look forward to working side by side with each of you, and I am excited about the possibilities that lie ahead.

Thank you for your trust and confidence. Let’s make the coming years a testament to the strength and unity of our NJLICA community.

Here’s to a prosperous and collaborative future. Happy New Year!

Dennis Mikula, Jr. President, NJLICA

Dennis Mikula, Jr., President Mikula Contracting, Inc. Mark Krutis, Vice President Tom Krutis Excavating, Inc. William J. Esposito, Historian Espo's Tree and Crane Service Frank C. Del Guercio Tilcon NY Ron Garofalo DAG Mobile Aggregate Recycling, Inc. Warren Gonzalez Foley, Inc. Shelly Hewson Hewson Landscape, Inc. Frank Horan Groff Tractor Mid Atlantic, LLC Bob Manis North American Aggregates Joe Mayers Septic Experts, LLC John Rothberg L.N. Rothberg & Son Dave Vander Groef Wantage Excavating Co., Inc. Buddy Freund, Executive Director

COVER PHOTO BY WARREN SAMMUT, UNSPLASH; PHOTO PAGE 5 BY JONAS AUGUSTIN, UNSPLASH

FIELD GUIDE Legally Speaking 8 Equipment Manual 11 Risk Management 13 Safety Perspectives 17 Legislative News 18

CONTENTS

FEATURES Award Winners 20 Scholarship Info 21

DISPATCHES Member Benefit 27 New Members 30 Events 32 Contact Information 38 Advertiser’s Index 38

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NJLICA is looking for

LABORER AND OPERATOR APPRENTICES

How Can Apprenticeship Training Help Your Company?

• Instill your company’s culture and retain workers • Recruit and develop a diverse and highly skilled workforce • Improve productivity, profitability, and your bottom line • Reduce turnover, improve loyalty, and retain top talent • Demonstrate investment in your community

New hires and/or existing employees or Hire an apprentice from the NJLICA Apprenticeship Program

This Education Has Two Facets: On The Job Training and Classroom Instruction

Your Apprentice will Learn and Produce Better Quality Work, Moving You Forward at No Additional Cost to the Employer!

For Questions Or To Enroll Your Apprentice Today Simply Contact: Buddy Freund, Executive Director At Buddy@govisionstrong.com 973-630-7600

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WINTER 2024 NJLICA • PO Box 166 • Succasunna, NJ 07876 • www.NJLICA.org

LARGE RESOURCES. LOCAL RELATIONSHIPS.

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BASIC & SPECIALIZED COVERAGES • General liability • Workers’ compensation • Commercial auto and trucking • Commercial umbrella • Commercial property • Inland marine (equipment) • Equipment breakdown • Pollution liability • Employee benefits/health insurance • Payroll and HR solutions INSURANCE EXPERTISE • Expert consultation and personal customer service • Competitive rates and plan comparisons • Consolidation between carriers • Continuity of coverage • Dedicated inhouse claims team • Claim and premium dispute facilitation

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LEGALLY SPEAKING

2023 NEW JERSEY LABOR LEGISLATION ROUND-UP AND A PEEK INTO 2024 The recent legislative agenda in Trenton included several key bills that took effect in 2023 and generally make it more expensive for businesses to operate in New Jersey. This article collects these new requirements in one place and mentions a small number of changes that took effect or may take effect in 2024.

Amendments to New Jersey’s Mini-WARN Act (Millville Dallas Airmotive Plan Job Loss Notification Act) During the COVID pandemic the governor signed into law an amendment to the New Jersey law that requires covered employers to provide 90 days’ advance notice of a plant closing or a large layoff to state and local governments offices, the affected employees, and any union that represents the employees. The new requirements took effect on April 10, 2023, and require that in the event of a covered layoff or plant closing, the employer must provide severance pay of one week’s pay for each full year of service to all affected employees, even if the employer provides 90 days’ advance notice. If the employer fails to provide the full 90 days’ notice, the employer must pay additional penalties of four weeks’ pay to each employee who fails to receive a timely notice.

Generally, to be covered the plant closing or layoff must result in at least 50 employment terminations. Another change is that all employment terminations that take place within New Jersey during a rolling 30-day period are considered in determining whether the 50-employee threshold is met. Since the plant closing or layoff may be simultaneously covered by the federal WARN Act, the New Jersey law allows the employer to take a credit against what it owes under New Jersey law equal to the financial penalties the employer pays under the federal WARN Act. Temporary Worker Bill of Rights This law took effect on August 5, 2023, and generally requires that a covered temporary staffing agency that does business in New Jersey and its customers comply with the law’s registration, disclosure, and compensation requirements. In particular, the Bill of Rights requires that a covered temporary staffing agency pay its employees wages and benefits that are equivalent to the average wages and benefits paid to comparable employees of the customer. To the extent that a New Jersey business uses a temporary staffing agency to supplement its regular workforce, temporarily or permanently, the business is now required to inform the staffing agency what it is paying its employees so that the staffing agency can pay its employees equivalent compensation. By making use of temporary staff more expensive and cumbersome to administer, the state continues to emphasize its preference that New Jersey employers hire directly for their workforce needs and not depend 8

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BY PATRICK W. MCGOVERN on temps and independent contractors who traditionally are ineligible for employer benefit programs.

Service Worker Retention Law This law took effect in October 2023 and applies to service contracts that were entered into or renewed after October 22, 2023. To be clear, the law does not apply to any contract entered into before October 22, 2023. Nor does the law apply to (i) contracts with the Port Authority of New York and New Jersey; (ii) contractors with fewer than five service employees in the U.S.; (iii) employees with less than 60 days of service with the employer; (iv) managerial and professional employees; (v) persons scheduled to work fewer than 16 hours per week; or (vi) employees whose work requires a permit from a municipal building or construction department.

The law expressly applies to contracts for services to be provided at large residential buildings; large commercial centers and office buildings; primary, secondary and tertiary schools; industrial sites and labs; airports and train stations; hospitals, nursing care facilities, senior care centers and other health care provider locations; state courts; and warehouses and distribution centers.

When this law does apply, it requires that the terminating entity (service recipient), 15 days in advance of the termination of the service contract, notify the terminated contractor and ask it to give the replacement contractor a list of the employees providing services under the contract with their personal information and the identity of any union representative. The terminating entity must also give the replacement contractor a list of the employees performing the work and the identity of any union representative and notify any union of the decision to terminate the service contract and to enter into a new contract. The terminating entity must also ensure that written notice of the contract termination is given to affected service employees with details regarding the replacement contractor and provide the affected employees and their union with the identity of the replacement contractor.

The replacement contractor is required to retain the affected employees for 60 days or until its service contract is terminated, whichever comes first, must give each affected employee a written offer of employment, and copy the employee’s union. Generally, the replacement contractor must retain all affected employees during a 60-day transition period unless fewer employees are required to perform the work than the terminated contractor employed, and it retains service employees based on seniority, and it maintains a preferential hiring list for employees not retained, and it hires service employees from the preferential hiring list until all affected service employees have been offered a job. The replacement contractor may not terminate any retained employee

PHOTO BY TINGEY LAW FIRM , UNSPLASH

for 60 days except for just cause. The retention requirements do not apply to any replacement contractor that assumes the terminated contractor’s labor agreement.

The law’s enforcement mechanism is supported by monetary penalties ranging from $2500 to $5000 per violation. Each week in which a violation occurs is a separate violation.

More compliance obligations under N.J. Unemployment Benefits Law Beginning July 31, 2023, New Jersey employers have been required to respond to the state’s request for information needed to make a benefits decision for a separated employee. The employer is required to provide the information immediately simultaneously and electronically for every employee it separates, regardless of whether an unemployment claim is filed. In addition, an employer that separates an employee must provide NJDOL Form BC-10 now, not only to the separated employee, but also to the State Department of Labor immediately, simultaneously and electronically. An employer that fails to comply with these requirements within seven days after receiving a request from the NJDOL will cause NJDOL to make a benefits decision without input from the employer, and the benefits paid will be charged to the employer’s account.

The wrinkle is that the state is not yet ready to implement these changes and posted the following notice which appears on the NJDOL website as of January 1, 2024: “NJDOL’s Division of Unemployment Insurance has taken the first step toward implementation of this new requirement by communicating to all employers the need for them to register with Employer Access and provide an email address to the Division. However, the Division has not yet provided employers the ‘directions’ that would instruct them what information an employer must provide to the Division immediately upon an individual’s separation from employment. Until those ‘directions’ are provided to employers by the Division, employers will not be expected to provide information to the Division immediately upon an employee’s separation from employment. The Department is at work preparing the “directions” to employers and is also in the process of creating an online form for use by employers to submit the required information. While the “directions” and online form are being developed, the Division will exercise its discretion under the law to neither assess penalties against employers, nor bar them from obtaining relief of benefit charges, for failure to provide information immediately upon an individual’s separation from employment. During this time, employers will continue to be required to respond in a timely manner, as they had previously, to all requests from the Division for separation and wage information.”

Standards loosened for strikers’ eligibility for N.J. unemployment benefits Effective April 24, 2023, but retroactive to January 1, 2022, an employee who takes part in a stoppage of work on account of a labor dispute is disqualified from receiving unemployment benefits for the first 14 days of unemployment, instead of the first 30 days under prior law. However, if the employer replaces the employee with a temporary or permanent strike replacement, including a current employee, the 14-day disqualification will not apply, and the employee is immediately eligible for benefits. The law is clear that an employee who loses his job at a facility where there is a labor dispute but no work stoppage, is not disqualified from benefits solely on the basis of the labor dispute. The new law also clarifies that an employee who is locked out on account of a labor dispute is eligible for benefits after the 14-day disqualification period.

What can we expect in 2024?

One thing for certain is that effective January 1, 2024, the state minimum wage increases to $15.13 for employers with six or more employees (up from $14.13) which is significantly higher than the federal minimum wage of $7.25 which has been in effect since 2009. The rate applicable to employers with fewer than six employees is now $13.93.

The minimum wage is higher in certain industries (e.g., long-term health care) and lower in others (e.g., agriculture and tipped employees). The minimum wage is not to be confused with the prevailing wage, which is a much higher wage rate and applies to construction projects funded by government entities or on government land, and to employees who provide certain services to facilities owned by state or municipal government agencies.

Also, the N.J. Family Leave Act, enacted in 2008, may be amended to apply to smaller New Jersey businesses. Currently this law applies to employers of 30 or more employees. The New Jersey Assembly has passed an amendment to the act that would extend the act’s coverage to employers with 20 or more employees in 2024, 10 or more employees in 2025, and five or more employees in 2026. The bill is now before the state Senate and its future is uncertain.

For over 30 years, Genova Burns has partnered with companies, businesses, trade associations, and government entities on matters in New Jersey and the greater northeast corridor between New York City and Washington, D.C. If our firm can be of assistance, please reach out to Patrick W. McGovern at 973-535-7129.

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EMPLOYERS WHO MISCLASSIFY EMPLOYEES AS INDEPENDENT CONTRACTORS ARE ON NOTICE In a December 11, 2021 press release, New Jersey Attorney General Matthew Plotkin and New Jersey Department of Labor Commissioner Robert Asaro-Angelo announced the filing of the first lawsuit under a 2021 law that enhances the state’s authority to curtail illegal misclassification of workers as independent contractors through actions such as direct suits in the Superior Court, work-stoppage orders. and enhanced penalties.

“When employers unlawfully and callously toss their workers into the ‘independent contractor’ category, they are not only depriving them of a steady paycheck, they are also stripping them of earned sick leave, workers compensation, minimum wage, and more,” said Plotkin. “These are national, profitable corporations with deep pockets who are padding their profits with illegal labor schemes, and they seem to have no plans to stop this kind of behavior.”

Asaro-Angelo cautioned that companies profiting through misclassification “have been put on notice. We are proud to have the strongest worker protection laws in the country, which also safeguard employers who play by the rules. Misclassifying employees will not be profitable, nor overlooked.”

Under New Jersey law, workers are presumed to be employees unless the employer can establish the three criteria of what is commonly called the ACBC test: 1) the worker is largely free from the control or direction of the company over the performance of the work; 2) the type of work being performed by the worker is outside the company’s usual course of business, or is performed outside the company’s place of business; and 3) the worker has their own independent trade, job, profession, or business. Treating workers who do not meet these stringent criteria deprives them of the rights and benefits afforded to employees, including minimum wage, overtime, workers compensation benefits, temporary disability benefits, earned sick leave, job protected family leave, equal pay, unemployment payments, and statutory protection against unlawful discrimination.

The state filed suit against shipping and logistics companies STG Logistics, Inc. and STG Drayage, LLC (collectively STG), claiming they systematically misclassified more than 300 drivers as independent contractors. Although STG required drivers to purchase and maintain their trucks, the complaint alleges that it failed to pass the ABC test because it exercised significant control over the drivers and their work by, among other things: • requiring STG’s name to appear on the trucks • requiring drivers to lease their trucks exclusively to STG • prohibiting drivers from suing their trucks for other work without STG’s consent • requiring drivers to sign non-negotiable independent contractor agreements • requiring the installation of GPS tracking devices monitored by STG • assigning all routes, monitoring deliveries, and setting rates of pay • mandating drug and alcohol testing, defensive driving courses, certain insurance, and accident reporting 10

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BY KATHLEEN CONNELLY

The state seeks to recover millions of dollars in back wages and penalties for STG’s violation of various labor laws, including: unlawful deductions and withholding from wages for costs of maintaining trucks in violations of the wage payment law; failure to pay minimum wages and overtime and comply with recordkeeping requirements in violation of the wage and hour law; failure to make paid sick time available to workers in violation of the earned sick leave law; failure to provide workers compensation insurance under the workers’ compensation law; and failure to make required contributions to the state’s unemployment compensation, disability benefits, workforce development funds.

According to the state’s complaint, in August 2020, STG paid the state $893,671.28 to resolve a prior NJDOL finding that it failed to make required contributions to the state’s unemployment compensation and disability benefits funds from 2015 through 2018. Nonetheless, STG did not change its ways and continued to misclassify drivers and failed to make requisite payments to the state funds.

Despite increased efforts at both the state and federal levels to curb misclassification of employees, many employers continue to scoff at the law to avoid the added costs of an employer-employee relationship. With this first salvo from the Attorney General and NJDOL, employers should come to the realization that any cost savings may pale in comparison to the attorney fees, damages, fines, and penalties that will be incurred if the employer is in the crosshairs of the attorney general and NJDOL. Given the anticipated uptick in enforcement efforts, employers with independent contractors on their payrolls should get an assessment from employment law counsel whether these positions can in fact meet the ABC test for independent contractor status.

Kathleen Connelly is a partner with Lindabury, McCormick, Estabrook & Cooper and serves as co-chair of the firm’s Labor & Employment Practice Group. The company provides litigation and transactional counsel to a broad spectrum of clients in the construction industry.

EQUIPMENT

THE PROS OF RENTING EQUIPMENT Getting your project done right means investing time, money, and labor into quality equipment. Buying all the construction equipment you need is an expensive investment that requires maintaining, transporting, and storing an entire fleet of vehicles.

Renting heavy machinery is a convenient option that allows you to enjoy all the effectiveness of construction equipment without the inconvenience ownership can bring. Explore some equipment rental advantages and help your operation maximize its productivity.

Cost savings Construction equipment rentals provide you with a practical solution for managing your costs. The upfront investment needed for buying heavy machinery can be extremely high, and necessary expenses beyond that include maintenance, insurance, and depreciation. Renting equipment allows you to allocate resources more effectively, letting you use funds for other areas of your operation.

Cost-effective equipment rental is a great way to avoid the initial and long-term expenses of owning heavy machinery, allowing you to complete projects as needed and maintain your budget at the same time.

PHOTO BY FRANK HORAN

Convenient maintenance and repairs One of the best rental equipment benefits is reduced maintenance. Owning heavy machinery means investing significant time and money into your equipment to ensure proper upkeep.

However, rental companies will typically handle routine maintenance and repairs for renters.

This service saves you the hassle of managing maintenance and repairs and helps minimize your downtime. Construction projects are time-sensitive, and unplanned equipment downtime can result in delays and increased costs.

With rentals, the responsibility of keeping equipment in optimal condition lies with the rental company, allowing you to focus on project execution instead of scheduling maintenance.

Flexibility Construction projects often encounter unexpected situations, like changes or delays. Having a versatile range of equipment allows you to get work done more effectively and efficiently, but getting all that equipment requires significant financial investment, transportation, and storage logistics.

Renting offers unparalleled flexibility, letting businesses access a range of machinery tailored to specific project requirements. Instead of committing to the long-term ownership of a

BY FRANK HORAN single machine, companies can adapt their fleets to varying job demands.

Equipment Variety Different projects require different tools, and the ability to access several equipment types and sizes ensures you can pick the best machinery for each task. This kind of variety is especially helpful for multifaceted projects with varying requirements.

Rentals offer a comprehensive selection, from excavators and bulldozers to specialized equipment like aerial lifts, eliminating the need to invest in an entire fleet upfront.

Access to the latest technology Another benefit of construction equipment leasing is gaining access to the latest heavy machinery technology. Technological advancements in construction equipment happen quickly, and staying on top of them can be crucial for productivity, safety and project success.

Renting equipment provides a unique advantage by granting you immediate access to the latest features. Rental companies regularly update their fleets, ensuring clients benefit from improved efficiency, safety protocols, and emissions standards.

Scalability Construction projects’ scale and scope often fluctuate. Having the ability to scale resources accordingly is invaluable for many businesses, and renting allows this to work. Renting lets companies quickly adjust their fleet size to match current demands. This scalability ensures you optimize resources for the specific requirements of every job. With no longterm ownership commitments, you avoid overcommitting or underutilizing machinery, saving you money, labor, and time.

For example, during a peak phase of a project, you can quickly rent additional machinery to meet increased demands. As the project winds down, you can return excess equipment, avoiding unnecessary costs with idle machinery. Renting delivers the best benefits of heavy machinery without the strings and stress of ownership for your organization.

Reduced storage costs Owning construction equipment means paying to store it when it’s not in use. Heavy machinery needs lots of space, and the cost of keeping it at secure facilities can add up in no time. Renting eliminates the need for large storage areas, as you return the equipment when you’re done using it.

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If you are an open shop contractor there are many reasons to implement a prevailing wage plan. As a contractor working on 20% or more state/federal government work there are quite a few advantages to company, employee and employer that can help to move your business forward.

• Save on payroll burden; WC, GL, FICA, FUTA, SUTA • Fringes help pay for company sponsored employee benefits • Become more competitive when bidding; Win more bids!

• Employee receives pre-taxed retirement plan • Compliance is top priority at TLC4 Prevailing Wage, keeping you compliant • Levels the playing field between union/open shop companies

Cutting out the need for storage is especially helpful for businesses operating in urban or space-constrained environments where storing a large fleet of owned equipment is impractical.

By opting for rentals, you can focus on funding your operational needs instead of spending on extensive storage facilities.

Testing before renting A notable rental equipment advantage is that renting allows you to enjoy a trial period if your company is considering purchasing specific equipment. Before making a substantial investment, businesses can rent different brands and models to assess their performance, reliability, and compatibility with their different project requirements.

This “try before you buy” approach allows you to make informed decisions, ensuring the chosen equipment aligns with long-term business goals. It’s a cost-effective way to evaluate machinery’s practicality and efficiency without the risk of ownership. Well-tested equipment will perform reliably, contributing to your operation’s success.

Cover downtime Renting construction equipment effectively reduces downtime.

When owned equipment faces issues, repair times can be long, causing project delays. If you’re dealing with unplanned downtime, a rental can help you pickup the losses in no time.

In the event of a breakdown, you can quickly source a replacement, minimizing project interruptions. Simply call the rental company and order the equipment you need. This proactive 12

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approach to downtime allows construction teams to maintain project timelines, enhance productivity, and meet deadlines you might get from equipment-related setbacks.

If you’re looking for high-quality, convenient construction equipment rentals, look no further than GT Mid Atlantic. Our extensive fleet caters to diverse project requirements, providing top-tier machinery to enhance your construction results. Whether you’re tackling a short-term project or need ongoing support, our team is ready to assist you. Additionally, we offer expert servicing and genuine parts for purchases, giving you a one-stop shop for your machinery needs.

Explore the convenience of renting, buying, and maintaining construction equipment with GT Mid Atlantic. Contact us today to discuss your needs and find a location near you.

Frank Horan is a territory manager with GT Mid Atlantic, a proud member of NJLICA and an equipment dealer with 15 locations in New Jersey, Pennsylvania, Delaware, and Maryland. “Your #1 source for everything under construction.”

RISK MANAGEMENT

PHOTO BY LOIC LERAY, UNSPLASH

WHAT IS HAPPENING IN THE INSURANCE MARKETPLACE? Sailors know to expect the unexpected once they are on the water.

The day can start out superbly with perfect wind and a bright sun filled sky. Under these conditions sailing is a beautiful experience as the bow cuts through the water, heeling slightly, with no sounds except the wind and the water. With a steady wind and the sails trimmed perfectly, the boat will steer itself. It is calm and peaceful. You just can’t beat it.

Then the wind picks up, the skies darken, the sun disappears, waves increase in size with white caps, and then the rain starts.

You’ve dropped your head sail and reefed your mainsail, sailing off wind moving up one side of a wave and skidding down the other. Whatever isn’t tied down or stowed properly is banging around the cabin. All the while the rain is pelting you as you steer, and you are wondering when you will come out the other side.

The storm eventually passes, and you once again enjoy a pleasant cruise. Insurance is like sailing: markets are stable, then suddenly the market turns and prices stiffen. This can go on for years. Eventually the hard market passes, and we are skidding down the other side into a soft market with prices dropping. The market hits a certain level, and premiums remain stable for a while.

If you have been around for a few years, you have seen this occur repeatedly. Sometimes it is more extreme and sometimes longer or shorter in duration. Right now, the marketplace is churning. There are soft lines, stable lines, and hard lines of coverage with rate increases.

So what causes these market swings? There are a number of factors involved and not necessarily in the following order. Losses have the most direct effect on premiums at all levels. When you have commercial general liability losses, your commercial general liability premiums will increase. The same thing happens with workers’ compensation, auto liability, and just about every other type of insurance.

Losses also affect insurance company claims reserves as money to pay future claims needs to be funded. Losses affect profitability. Negative insurance company loss ratios means that for every dollar collected, the company pays out more than that dollar in claims and adjustment expenses. According to the AM Best Market Segment Outlook: US Commercial Lines, the overall insurance industry recorded a $32.2 billion dollar loss as of September 2023. This is $7.6 billion more than last year for the same period.

Then there are the reinsurance costs. Retail insurance companies lay off a portion of their risk to reinsurers because this increases their capacity to sell more insurance. The reinsurance market is a worldwide marketplace and there are numerous reinsurance entities like Munich Re, Swiss Re, or Lloyd’s of London, plus many others that sell reinsurance to retail insurance companies. Investors from all over the world supply capital to these rein-

BY MICHAEL PUGACZEWSKI surance companies. However, money always seeks a better return on investment, and reinsurers, to attract funds, must keep their investors’ returns pace equal to or better than other capital markets. So as interest rates increase, so does the cost of reinsurance.

Another factor influencing rates is inflation, both social and economic. Social inflation is measured by higher jury awards, coupled with rising legal fees. Economic inflation is easy to understand with costs increasing for everything we buy. Inflation affects material costs, labor costs, creates supply chain shortages, and causes higher medical costs, all making for higher claim settlements. Then there are weather events, like Hurricane Ian that created $20 billion dollars in insured losses in Florida alone.

According to the National Weather Service, Ian was responsible for 156 deaths and NOAA’s National Centers for Environmental Information reports Ian responsible for $112.9 billion for overall damages sustained.

What will happen in 2024? You will see underwriters exercising discipline in their decisions. They will seek quality accounts and discard below average performers. In some cases, underwriters may write off an entire segment of their business if

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underperforming. For the construction industry, the future remains uncertain. Although not as drastically as in the past several years, inflation continues and is still putting upward pressure on rate increases. Losses have had a negative impact on rates. While this may be subsiding for some industry segments, you will still find negotiated policy terms, conditions, endorsements, and exclusions less favorable.

You can shield your business against the upward pressure on your rates and inferior coverage terms. It does not matter how big or how small you are, underwriters will be looking for accounts that have implemented and enforced a strong safety program.

They will want contracts in place with hold harmless agreements to eliminate or mitigate claims from lower tiers.

Obtain certificates of insurance from every subcontractor and

have them reviewed for limits, coverage, and insurance company quality. Require additional insured status on your sub’s policies.

Obtain a copy of the additional insured endorsement, and ask your insurance agent to review it. Sometimes you are an additional insured, and sometimes you are not. It is a good idea to check before the loss occurs. Require a waiver of subrogation. A strong balance sheet will also be a plus. All of this will help, but the single best thing you can do to keep your rates low, and do not have losses.

Michael Pugaczewski is a client advisor at M. Adams & Associates, a division of World, which provides insurance products and services to construction, commercial, and industrial companies.

COMMON SOCIAL ENGINEERING TACTICS TO WATCH FOR Social engineering refers to a cyberattack method in which a cybercriminal preys on key human behaviors (e.g., trust of authority, fear of conflict and promise of rewards) to obtain unwarranted access to targets’ technology, systems, funds or data.

These attacks can be deployed through various tactics, such as digital impersonation, deceitful messages or malicious software (known as malware). Social engineering attacks have become a significant threat to businesses of all sizes and sectors; after all, anyone can be targeted in these incidents—including entry-level workers, managers and CEOs. With this in mind, it’s crucial for businesses to be aware of frequently utilized social engineering methods and adopt effective cybersecurity measures to help mitigate these incidents. This article outlines common social engineering tactics to watch for and offers associated prevention and response tips.

Common Social Engineering Techniques In a social engineering attack, a cybercriminal implements a number of manipulative tactics to lure their target into performing actions that they normally wouldn’t. Some common social engineering methods include the following: Phishing: This technique involves cybercriminals leveraging fraudulent emails to trick recipients into providing sensitive information, clicking malicious links or opening harmful attachments. In order to make their emails appear genuine, cybercriminals will often impersonate trusted sources (e.g., a coworker or well-known organization) and feign a sense of urgency to rush targets into acting. In addition to traditional phishing, cybercriminals may also attempt to manipulate targets over text messages or phone calls (known as smishing and vishing, respectively).

Spear phishing: A spear-phishing scheme typically focuses on specific individuals or companies and uses personalized information to convince targets to share their data. In these instances, cybercriminals will research targets’ online behaviors, such as where they shop or what they share on social media, to collect personal details that make their schemes seem more legitimate.

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Business email compromise (BEC): Such a technique refers to cybercriminals posing as business leaders or partners (e.g., executives, senior-level employees, vendors or suppliers), often for financial gain. Cybercriminals generally deploy BEC scams via email by creating fake accounts for business leaders or partners and using deceiving messages to trick targets into transferring money, divulging financial data or changing banking details.

Baiting and quid pro quo: Through this strategy, cybercriminals make false promises to persuade targets to share data or download malware. These false promises may appear in the form of fraudulent pop-up advertisements or deceitful online promotions. For example, a cybercriminal may use a false advertisement for a free movie download to trick their target into installing a virus on their device. Similar to baiting, quid pro quo incidents involve cybercriminals promising to provide something valuable to their targets (e.g., an e-commerce coupon code or discounted security software) but only in exchange for the targets’ sensitive information (e.g., contact details, bank account numbers or login credentials).

Pretexting: This technique consists of cybercriminals impersonating a co-worker, community leader or authority figure (e.g., a police officer, government employee, banker or tax official) and asking targets to provide sensitive information to confirm their identities or help complete critical tasks and assignments. Some of the most common types of data stolen amid pretexting incidents include employees’ contact details and Social Security numbers, company bank records and workplace security information.

Tailgating: Through this tactic, cybercriminals physically sneak into workplaces by following closely behind employees or other credentialed individuals (e.g., custodians or building maintenance workers) without their knowledge. That is, after these authorized individuals leverage their key fobs or identification badges to pass through locked doors or security checkpoints, the cybercriminals will also slide inside before the locks can reengage. From there, the cybercriminals may leverage their on-site access to steal essential company records, infect important technology with viruses or malware and compromise security systems to allow continued workplace infiltration.

PHOTO BY LOIC LERAY, UNSPLASH

Scareware: This method entails cybercriminals utilizing various scare tactics to frighten and manipulate targets into paying ransoms, often through seemingly legitimate prompts (e.g., fraudulent virus infection alerts urging targets to purchase security software for their devices or deceptive messages claiming to be from law enforcement that accuse targets of committing crimes and demand payment for any associated fines). Scareware may either initially contain malware or eventually coerce targets into downloading malware.

Tips to Mitigate Social Engineering Attacks Businesses can consider these steps to help prevent and respond to social engineering attacks: Provide training. Businesses should educate employees on social engineering and how it could affect them. Additionally, employees should be required to participate in routine cybersecurity training on social engineering attack detection and prevention. This training should instruct employees to do the following: • Maintain a healthy sense of skepticism across communication channels by watching for social engineering tactics in emails, texts and calls (e.g., lack of personalization, generic phrasing and urgent requests).

• Refrain from interacting with emails, texts or calls from unknown or suspicious senders.

• Avoid clicking links or downloading applications provided within emails or texts.

• Never share sensitive information online, via text or over the phone.

• Utilize trusted contact methods (e.g., calling a company’s official phone number) to verify the validity of any suspicious requests.

• Report any suspicious emails, texts or calls to the appropriate parties, such as a supervisor or the IT department.

• Implement access controls. By allowing employees access to only the information they need to complete their job duties, businesses can reduce the risk of cybercriminals compromising excess data or securing unsolicited funds amid social engineering incidents. To further protect their information, businesses should consider leveraging encryption services and establishing secure locations for backing up critical data.

• Utilize proper security software. Businesses should make sure all workplace technology is equipped with adequate security software. In some cases, this software can halt cybercriminals in their tracks, stopping fraudulent messages from reaching recipients’ devices and rendering harmful links or malicious applications ineffective. In particular, workplace technology should possess antivirus programs, spam detection systems, email filters, firewalls, message-blocking tools and multifactor authentication capabilities. This security software should be updated as needed through patch management systems to ensure its effectiveness.

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Ensure safe financial transactions. Having secure financial procedures can help limit the risk of any money being lost during social engineering attacks. As such, businesses should instruct employees who handle financial operations to carefully analyze fund transfer requests and similar payment demands to ensure their validity. When possible, these requests should be discussed in person before moving forward, especially if they involve alternative payment procedures or changes in banking details. Businesses may also want to consider utilizing several verification methods and implementing the “two-person rule” to confirm payment requests, in which two authorized individuals must review and approve transactions before they can go through.

Adopt a cyber incident response plan. In the event that a social engineering attack is suspected or detected, it’s essential for businesses to have dedicated cyber incident response plans in place that outline steps to ensure timely remediation and keep damages to a minimum. These response plans should address a variety of possible attack scenarios and be communicated to all applicable parties. Both the Cybersecurity & Infrastructure Security Agency (CISA) and the National Institute of Standards and Technology (NIST) have resources available to help businesses create such plans.

Conduct tabletop exercises and penetration testing. It’s not enough for businesses to simply create cyber incident response plans. Rather, they should routinely assess these plans for ongoing security gaps and make changes as needed to ensure maximum protection amid social engineering attacks. Common assessment techniques include the following: o Penetration testing: Such testing consists of an IT professional mimicking the actions of a cybercriminal to determine whether an organization’s workplace technology possesses any vulnerabilities and is able to withstand attack efforts. This testing usually targets a specific type of workplace technology and may leverage various attack vectors. o Tabletop exercises: A tabletop exercise is an

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activity that allows an organization to simulate a realistic cyberattack scenario (e.g., a phishing simulation) for the purpose of testing its incident response plan’s efficiency. In other words, this exercise serves as a cyberattack drill, giving participants the opportunity to practice responding to an attack. Consult trusted experts and professionals. Businesses don’t have to navigate and address their social engineering exposures alone. Instead, they can seek assistance and supplement their existing resources with guidance from a wide range of trusted external parties, including insurance professionals, legal counsel, cybersecurity firms, law enforcement and government agencies (e.g., CISA and NIST).

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Social engineering is a common and widespread cyberthreat that has the potential to wreak havoc on businesses across industry lines. Fortunately, organizations that ensure a solid understanding of key social engineering methods and leverage proper prevention and response measures can help minimize these incidents and their related losses. Contact us today for more risk management guidance and insurance solutions.

SNOW AND ICE CREATES SLIP AND FALL — AND THAT AIN'T ALL Here is what you should know if you own commercial property, or if you are performing snow and ice plowing services for commercial property.

According to the National Flooring Safety Institute, around one million people go to the hospital emergency rooms after a slip and fall during the snow and ice season. If a person is hurt in a slip and fall accident, they have the right to file a lawsuit to try and recover money to compensate for injuries, pain and suffering, loss of enjoyment of life, medical bills and lost time from work, and other damages the victim may have suffered. If they can prove that the fall would not have happened if someone else had taken greater care, they may be entitled to compensation for their injuries.

Mother Nature supplies the snow and ice which creates slip and fall hazards. State and local laws require property owners and business owners to provide business invitees and guests with reasonably safe means of ingress and egress.

If you are a commercial property owner or if you are performing snow and ice plowing services for commercial property, you cannot avoid these perils. However, you can mitigate or transfer the risk.

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Purchase sufficient coverage. It’s critical for businesses to purchase adequate insurance to secure ample financial protection against potential losses that may arise from social engineering attacks. Businesses should consult trusted insurance professionals to discuss their specific coverage needs.

BY RICHARD GAYNOR • • •

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If you are the property owner, include what your tenants are responsible for in the lease.

If you are the tenant, include what the property owner is responsible for.

If you are providing snowplowing and ice melting services, include exactly what you are and are not responsible for in your contract. When you are not responsible, state who is.

All parties should consider purchasing insurance coverage with proper coverages and limits.

Speak with a professional to help you best navigate risk management

Work with professionals who will help you work with what you have!

Richard Gaynor is the president of Middleton & Company Insurance, the insurance advisor for many trade and business associations. The company provides informative, relevant, and cost-effective business insurance protection.

SAFETY PERSPECTIVES

PREVENT THESE FMCSA VIOLATIONS

BY ANTHONY MORREALE According to data from the Federal Motor Carrier Safety Administration’s (FMCSA) safety investigation summary report, 94% of safety investigations performed in 2023 have resulted in violations.

• In CY 2023 in New Jersey, 96.1% of safety investigations resulted in violations.

• In CY 2023 in New York, 93.85% of safety investigations resulted in violations.

• In CY 2023, in Pennsylvania, 93.91% of safety investigations resulted in violations.

PHOTO BY POP & ZEBRA, UNSPLASH

The top violations (severe enough that they require immediate corrective action) of 2023 are: 1. Allowing a driver to operate with a suspended or revoked CDL 2. Failing to implement an alcohol and/or drug testing program 3. Failing to randomly test for drugs and/or alcohol 4. Using a driver who has tested positive for a drug 5. Allowing a driver with more than one CDL to drive a commercial motor vehicle (CMV) Committing any of these violations can mean paying significant fines, and carriers’ Compliance, Safety, and Accountability (CSA) scores can be affected. A bad CSA score can lead to warning letters from the FMCSA, an official investigation, out-of-service orders, fines, and other consequences that can hurt your profits and even force you out of business. You don’t want that! On the upside, a good CSA score shows your commitment to safety and compliance.

The key to remaining compliant and avoiding violations is always to be audit-ready. This is more important than ever, as offsite audits have increased by 400% over the past few years. Your chances of being called for a safety investigation are likely higher than ever.

While your goal should be to maintain a completely violation-free record, below are some steps you can take to avoid the most common acute violations of 2023.

• Allowing a driver to operate with a suspended or revoked CDL. This has been the top violation for the last five years. It has accounted for 36% of acute violations in 2023.

• Failing to implement an alcohol and/or drug testing program • Failing to test for drugs and/or alcohol randomly according to FMCSA requirements.

• Using a driver who has tested positive for drugs. These have all been top acute violations for several years, together accounting for over 37% of all acute violations so far this year. Fines for non-compliant drug testing programs average more than $8,000.

• Allowing a driver with more than one CDL to drive a

CMV. This may not seem like a big deal, but it is in the eyes of the FMCSA. In September, a motor carrier based in North Carolina was fined $4,300 for committing this violation.

Although the state responsible for issuing a driver’s CDL is supposed to perform a check of the Commercial Driver’s License Information System (CDLIS) before issuing the new license to ensure that they don’t hold licenses elsewhere, compliance with this can vary from state to state, and the resulting reposts don’t always provide a crystal-clear look into a driver’s licensing history.

To protect yourself, performing pre-employment checks of the CDLIS yourself is best — and then regularly for all employees. Partnering with a USDOT background check provider can help ensure your drivers are compliant without adding another administrative duty to your long list of responsibilities.

Notable Violations in 2023 • Keeping fraudulent records • Organized and up-to-date DOT recordkeeping is a must.

And now, with the shift to offsite audits, officers may expect carriers like you to have a digital recordkeeping system in place.

• Failing to have a means of indicating maintenance due dates • Failing to keep a maintenance record identifying the vehicle • Failing to prepare RODS in the form and manner prescribed • All commercial drivers (anyone operating a vehicle registered commercial over 10,001 pounds) must keep a record of duty status.This is required when operating under the short haul exemption.

• Incomplete or no employment application. USDOT/ FMCSA has a specific application for commercial drivers.It is the employer’s responsibility to ensure all application requirements are completed and verified.

• Failing to maintain driver qualification file on each driver operating a vehicle over 10,001 pounds • Failing to use a seat belt while operating a CMV • Failing to get “reasonable suspicion” designee the required training • Failing to provide employees with written policies • Road test certificate/license/equivalent not kept in the driver qualification file For assistance with your USDOT and OSHA compliance, don’t hesitate to get in touch with Anthony Morreale, co-owner of TriState Safety Solutions, at 732-551-3833, amorreale@tsss-nj.com, or visit our website, www.tsss-nj.com.

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LEGISLATIVE NEWS

2023 FALL/WINTER LEGISLATIVE REPORT

BY ALADAR G. KOMJATHY

the need to be a hub of innovation as it relates to generative artificial intelligence • start of the construction of the Hudson Rail Tunnel project (the Gateway) • the need to fully fund the pension system and public schools.

The governor will deliver his fiscal year 2025 budget message to the legislature in late February.

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Aladar G. Komjathy and Kean LLC represent NJLICA’s interests in Trenton with both the legislative and executive branches of government.

PHOTO BY JOSHUA SUKOFF, UNSPLASH

The November elections expanded the Democratic majorities in both the Senate and the Assembly. The Senate: 24D-16R, and the Assembly: 52D-24R. Senate President Nick Scutari was re-elected for his second term. Assembly Speaker Craig Coughlin was re-elected by his colleagues to a record fourth term. Committee chairmanships and assignments are still pending. I will update as changes occur.

The governor highlighted his legislative priorities for 2024 in his State of the State address. Legislation will be focusing on the following: • eliminating medical debt • affordable housing • same-day voter registration • aligning with his goal of 100 percent renewable energy by 2035

NOW MORE THAN EVER Jennifer Roselle, Esq.

NEWARK • NEW YORK • JERSEY CITY PHILADELPHIA • BASKING RIDGE GENOVA BURNS LLC • WWW.GENOVABURNS.COM

ATTORNEYS AT LAW

Patrick W. McGovern, Esq.

COMPREHENSIVE TAX BILL IN 2024?

The talk at holiday parties in political Washington often centers around the question of whether Congress will consider a tax bill next year, and if so, what will be in it? For New Jersey and NJLICA members, there are a few key tax provisions that could see some consideration if a tax bill is developed and considered next year.

Tax bill equals win-win Republicans have been interested in reversing three tax increases that they put into their 2017 tax law that started going into effect in recent years, resulting in less generous incentives for businesses on research spending, deductions for interest on debt, and investments in physical property. Democrats meanwhile want to expand the Child Tax Credit, arguing there were incredibly positive returns from their 2021 monthly child payment program.

A trade of those potential business tax cuts for a larger child credit could cost around $100 billion in the short term, split evenly between those priorities, though the long-term revenue losses could be far higher.

House Ways and Means Committee Chair Jason Smith (RMO) has kept talk of a possible tax bill on the table and is entertaining ideas and provisions from both sides. A presidential election year is always a good time to bring up a tax bill to give both sides some demonstrated issues to run on in November. Tax bills also need a bigger bill to be attached to, and there is no shortage of pending big bills coming up early in 2024, such as farm bill reauthorization, funding the government, and international aid bills.

Here are some key tax provisions likely to be considered if Congress considers a comprehensive tax bill.

State and local tax (SALT) relief Some members of both parties favor repeal of the SALT cap, though most are Democrats representing states with higher state and local taxes. Republicans, who more commonly represent lower-tax states, generally do not support repeal.

In November 2019, the U.S. House of Representatives passed a partial repeal of the SALT cap by a vote of 218–206, with five Republicans voting for the bill and 16 Democrats — mainly progressives who considered it inadequate — voting against it. The measure was later rejected by the Senate.

The bill would have raised the cap to $20,000 for joint returns for 2019 and eliminated it for 2020 and 2021 for taxpayers with incomes below $100 million. It would have left the $10,000 cap in place for 2023 through 2025.

In early 2021, bills to eliminate the SALT cap were introduced in both houses of Congress. In the House of Representatives, proposed legislation already had more than 106 co-sponsors before March. In the Senate, Majority Leader Sen. Charles Schumer (D-NY) introduced a total-repeal bill, while Sen. Susan Collins (R-Maine) introduced legislation to increase the limit to $20,000 for joint returns. Additional bills were introduced in the 117th and 118th Congresses without success.

BY NICK YAKSICH Because the present law about the ceiling on SALT deductions expires after Dec. 31, 2025, the SALT cap will disappear in 2026 unless it is extended by legislation in the interim.

Estate tax repeal Senator John Thune (R-SD) and Congressman Jason Smith (RMO-8) have both introduced a bill that will permanently repeal the federal estate tax and generation skipping tax. The Family Business Coalition — of which National LICA is a member — will be working with member organizations to gather cosponsors to the bills.

Senator Thune summed up his thinking of why a repeal is needed: “We don’t believe death ought to be a taxable event. If you look at what families go through in the grieving process, it’s really ironic that we penalize and punish them through the tax code after they have worked really hard over a lifetime to build up some equity, some assets, that they hope to pass on to the next generation.”

Including estate tax repeal in a comprehensive tax bill will encourage many supporters of family-owned businesses from both sides to support passage.

Bonus depreciation Bonus depreciation helps encourage businesses to invest in new equipment and property. In addition, it gives them a tax break on the purchase price. The Tax Cuts and Jobs Act, enacted in 2018, increased first-year bonus depreciation to 100 percent, which has remained through the end of 2022. The deduction phases out over the following four years, dropping to 80 percent in 2023, 60 percent in 2024, 40 percent in 2025, and 20 percent in 2026. After 2026, the deduction will no longer be available.

The bonus depreciation phase-out schedule gives businesses a powerful incentive to invest in new equipment and property. By offering a 100 percent deduction on the cost of qualifying purchases, the schedule encourages businesses to make investments that they might otherwise delay or forgo altogether. As a result, the bonus depreciation phase-out schedule is vital in promoting economic growth and job creation.

Shortly after the ornaments are put away, new gifts are enjoyed and some returned, Congress will come back to Washington and address a crowded agenda. On that agenda may be a comprehensive tax bill that could benefit small and large businesses in New Jersey and across the country.

Nick Yaksich serves as the director of Government Relations for LICA.

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NJLICA

NEWS 2023 AWARD WINNERS ASSOCIATE OF THE YEAR: ROBERT MANIS, NORTH AMERICAN AGGREGATES

MOST ENTHUSIASTIC MEMBER OF THE YEAR: PRINS INSURANCE

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Through Week’s wholly owned subsidiary North American Aggregates, we are a leading supplier of aggregates for the construction, infrastructure, transportation, and redevelopment of industries in the tri-state area. Our Perth Amboy, N.J., facility is centrally located, with immediate access to major transportation networks, both on land and water. Our aggregates team is equipped to offer beneficial reuse and large transportation by water, and thus provides environmentally sound solutions, including the reduction of transit emissions by reducing road conveyance in the transportation of aggregate materials.

NAA mines sand from the Ambrose Federal Navigation Channel, a naturally replenishing source in the lower New York Bay. Our process begins with our dredge, Eleanor, mining and sizing virgin source aggregates. The Ambrose Channel’s clean sands have a long history of successful use in the tri-state area. Our environmentally friendly process avoids the erosion and destruction of habitat caused by traditional sand mining, while ensuring that the Ambrose Channel remains navigable without relying on government funding for maintenance. NAA is permitted by both the New Jersey Department of Environmental Protection and United States Army Corps of Engineers to mine 2 million cubic yards annually from the Ambrose Channel.

Our ocean-mined sand is transported to our Perth Amboy facility to be processed at our new state-of-the-art plant. The clean sands are drawn into the process stream and conveyed to specialized heavy duty wet screens, blending and mixing stations, rinsing areas, and finally stockpiled over two reclaim tunnels and nished product load out areas. Safety is a priority, and MSHA safety standards are an integral part of our operations.

Our logistics team works with our clients to coordinate delivery by land and water. With our dedicated fleet of sand scows and tugs, we can deliver large quantities of material by water, reaching sites that are underserved by traditional land transportation networks. This method of delivery is a greener alternative, taking advantage of economies of scale and easing congestion by taking trucks off the roadways. Additionally, we can provide unloading services and mobile processing equipment for a seamless loadout at any site.

Built upon a tradition of integrity, industry leadership, and excellence, Prins Insurance has been providing peace of mind to the communities of Sanborn and Sheldon since 1936. We are a full-service agency that has remained independent, allowing us the ability to offer a variety of choices for our customers. What does it mean to be independent or a Trusted Choice agency? We listen to your needs and relay that information back to the carriers we work with. We have partnered with a number of different regional and national companies with some of these relationships spanning back to our very beginning. We have protected generations of families and provided options that will give you a choice on how to cover your personal auto, home, commercial business, farm, or crops. We also have programs for the trucking industry and heavy equipment contractors involved in excavation and grading of land. These niche products have grown throughout Iowa as well as 14 other states.

Our company is privately owned and the current staff of 13 people reside in a number of communities. We are proud of our involvement with these communities and very much encourage participation on local boards and committees whether it is at church, school, our local library, or chamber of commerce. With our reach of business we have also been afforded opportunities to serve various organizations on a state and national level, allowing us to grow professionally. This growth is also supported through training and continued education. This has always been a priority of Prins Insurance. This commitment we feel only helps our customers in the long run.

We believe in a total team approach and welcome the opportunity to partner with you in tailoring a quality insurance product for you and your family. To us, no policy is the same! Give us a call today at 1-800-831-8545.

We will work to protect your life, your future, and your success.

CONTRACTOR OF THE YEAR: PAUL V. SPATZ, V.A. SPATZ AND SONS

V.A. Spatz and Sons Construction is a family owned and operated full-service heavy construction company that specializes in all phases of turnkey site development and value-added engineering. The breadth of the company’s work includes demolition, site clearing, excavation, soil erosion control, earthwork, detention ponds, underground detention systems, sanitary sewers, water mains, curbs and sidewalks, fine grading, asphalt paving, and roadwork. Boasting 78 years of Spatz family entrepreneurs, the company’s story begins with the 1945 founding of the Spatz Supply Company by Vincent Spatz and his father, Anthony, manufacturing cinder block in Berkeley Heights, N.J. In 1948, Vincent formed V. A. Spatz Excavating and Paving, initially excavating for basement constructions, and then broadening operations to site work, utility installation, road construction, and paving. Following Vincent’s death in 1982, his son Paul took the helm and founded V.A. Spatz and Sons Construction, Inc. Together with his younger brother Phil, Paul fostered the company’s reputation of excellence, reliability and versatility in all facets of heavy construction and project management. Phil retired in 2015.

Today, the fourth generation of the Spatz family is part of the core team.

Paul’s son Mark joined in 2009 to manage field operations for milling and paving, and his daughter Christina joined in 2018 to manage office operations and payroll. Additionally, in 2015 Paul’s wife Nancy came on board to manage the company’s financial operations. With an eye on the future growth of the company as well as the ever-evolving landscape of the industry, Paul hired John J. Roberts, P.E., in 2013 to further enhance business development. John brought a wealth of experience to the company as well as an additional client base, expertise in estimating and job procurement, contract negotiations, construction operations, project management, engineering, and client development. In keeping with Spatz family tradition, John’s two sons are also employed by V.A. Spatz. Sean joined the company in 2016 and Jon Ryan joined in 2018. Together, with the support of office staff Tara Mideaker and Theresa Gonnelli, the Roberts family is an integral part of the company.

In 2020, after operating for 75 years on the original property in Berkeley Heights, V.A. Spatz purchased, developed and constructed a state-of-the-art facility in Hampton, N.J., where they are currently located. Today, V.A. Spatz and Sons employs a 90-person team consisting of superintendents, foremen, laborers, operating engineers, truck drivers, and mechanics. They own and operate a state-of-the-art repair facility and have large inventory of heavy equipment, dump trucks, foreman trucks, sitework equipment, and small tools. The company is a proud member of the I.U.O.E Local 825, Laborers Local 472 and 172, and Local 3 unions.

With family and key personnel in place, along with a full team both in the field and in the shop, V.A. Spatz and Sons is well-positioned to continue growing and leading within the heavy construction industry. Business successes aside, Paul’s personal life has also been rich with accomplishments. Paul is the proud father of four adult children, Christina, Melissa, Mark, and Trevor. As mentioned previously, Mark and Christina work at V.A. Spatz, Melissa is a special education teacher and union leader for the Readington Township School System, and Trevor is employed by Amazon. Paul has always been an active contributor and philanthropist within the communities that he lives and works. He served for 12 years on the Lebanon Township Planning Board and was proud to be co-chairman of the Lebanon Township Memorial Park Committee. In 2004, Paul and V.A. Spatz and Sons developed a 20-acre town park dedicated to the memory of his father Vincent and brother Bobby in Lebanon Township. Paul remains an active participant in the continuing development of the park. Paul is on the ACCNJ Board of Trustees as a heavy highway representative, and in 2023 he was honored by ACCNJ and the Laborers Local 172 Scholarship was given out in his name.

SCHOLARSHIP INFO

Each year, NJLICA distributes scholarships to multiple applicants. The scholarships are awarded to an active NJLICA contractor and/or associate member who has been in the association for at least two years, or to the employee, spouse, children, step-children, grandchildren, or step-grandchildren of a qualifying NJLICA contractor and/or associate member.

Funds for the scholarships are raised through our silent auctions as well as other events held throughout the year. Our members are extremely generous in keeping the scholarship program ongoing.

The scholarship will be awarded only to students who have been accepted by an accredited two-year or four-year college or university, or vocational-technical school for admission in the fall of the same year the award is granted. The scholarship payment will be made out to the student.

Scholarship recipients are selected on the basis of academic record, potential to succeed, leadership and participation in school and community activities, honors, an essay on facing challenges and adversity, and an outside, blind appraisal. As an NJLICA member, you, a family member, and/or employee may qualify for a scholarship for continuing education. We encourage you to review the qualifications and information listed below and submit your application postmarked by April 1, 2024.

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SCHOLARSHIP PROCEDURE • Student obtains a scholarship application from the NJLICA website. www.njlica.org • Student completes the application as per instructions.

• Student completes essay on a separate sheet of paper. Essay question found on application.

• Student sends the application to the executive director postmarked no later than April 1, 2024.

• Applications postmarked after April 1st will not be considered.

Scholarship recipients will be honored at our Scholarship Awards Dinner. This year’s event will be held at J.A. Neary Excavating in Hillsborough, N.J., along with the third Annual NJLICA Truck Show, on Wednesday, May 22, 2024. Scholarship recipients and guests are asked to attend.

SCHOLARSHIP CRITERIA Each year, NJLICA is proud to distribute scholarships to multiple applicants. This year, scholarships will be awarded to active NJLICA contractor and/or associate members who have been active in the association for at least two years. The following outlines the categories for who is eligible to be considered for a scholarship from NJLICA. CATEGORY I - NJLICA Contractor Members An active NJLICA contractor member may submit UNLIMITED applications for their company for one of the following: • NJLICA contractor member • spouse of contractor member • children of contractor member • stepchildren of contractor member • gandchildren of contractor member • step-grandchildren of contractor member CATEGORY II - NJLICA Contractor Members Employees An active NJLICA Contractor Member may submit ONE application for their company for one of the following: • NJLICA contractor member employee • spouse of contractor employee • children of contractor employee • stepchildren of contractor employee • grandchildren of contractor employee • step-grandchildren of contractor employee **NJLICA will only accept ONE application per company. If multiple applications from a company for this category are submitted, they will be returned to the NJLICA contractor member and then they will have to submit their ONE recommended application to NJLICA to be reviewed.** CATEGORY III - NJLICA Associate Members An active NJLICA Associate Member may submit ONE application for their company for one of the following : • NJLICA associate member employee • spouse of associate employee • children of associate employee • stepchildren of associate employee • grandchildren of associate employee • step-grandchildren of associate employee **NJLICA will only accept ONE application per company. If multiple applications from acompany for this category are submitted, they will be returned to the NJLICA associate member and then they will have to submit their ONE recommended application to NJLICA to be reviewed.**

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NJLICA MEMBER

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Apprenticeship has been shown to help employers attract and retain employees, as well as cultivate a highly skilled and productive workforce. As a benefit to its members, NJLICA maintains a USDOL approved apprenticeship program for Truck Drivers (1 year), Laborers (2 years), and Heavy Equipment Operators (3 years). To encourage active participation in its program, NJLICA offers incentives to members who sponsor an apprenticeship, as well as significant financial incentives to apprentices who are enrolled and actively participate in the program.

Employers who sponsor an apprenticeship in 2024 receive a 66% reduction in their annual contribution requirement to NJLICA's Apprenticeship Trust fund. In addition, employers who sponsor apprentices gain skilled workers, reduce employee turnover, an improve productivity. Apprenticeship can also help an employer address skilled labor shortages at a time when many employers are reporting that they simply cannot find skilled workers to fill jobs.

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Contact: Tracy Carver: tcarver@tlc4prevailingwage.com 28Buddy WINTER 2024 Freund: buddy@govisionstrong.com NJLICA: 973.630.7600

NJLICA recognizes that inflation is at a high, food and gas are expensive, just about every aspect of our everyday lives has a hefty price tag. Therefore, to incentivize individuals to invest in themselves by pursuing apprenticeship, NJLICA currently provides individuals who are registered and actively participating in its program with an annual stipend.

Apprentice Truck Drivers eligible to receive • $3000 upon completion of the program, OR CDL class paid for by NJLICA • Available to the first 12 apprentices who enroll in the program Apprentice Laborers eligible to receive*** • $7500 or the first year completed • $7500 for the second year completed • Available to the first 10 apprentices who enroll in the program Apprentice Heavy Equipment Operators eligible to receive*** • $7500 for the first year completed • $7500 for the second year completed • $7500 for the third year completed • Available for the first 14 apprentices who enroll in the program

HARD WORK. RELIABILITY. PRIDE. It’s what matters.

You’ve worked hard to construct a reliable business that takes pride in excellent workmanship. That matters.

UFG Insurance knows the importance of protecting the reputation you’ve built.

As the carrier of choice, we’re proud to offer members of the New Jersey Chapter of LICA a special opportunity to participate in our trusted state LICA insurance program.

Receive products and services tailored to unique industry needs, including comprehensive risk control.

Exceptional customer service that doesn’t end when a contract is signed.

Find a UFG agent today at ufginsurance.com.

CEDAR RAPIDS, IA © 2022 United Fire & Casualty Company. All rights reserved.

WINTER 2024

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THE NJLICA DUES YEAR RUNS FROM SEPT. 1-AUG. 31. DUES INVOICES WERE SENT IN SEPTEMBER AND NOVEMBER. IF YOU HAVE NOT PAID YOUR MEMBERSHIP DUES FOR 2023-24, PLEASE FORWARD TO THE ASSOCIATION OFFICE. YOUR CONTINUED SUPPORT IS APPRECIATED.

NEW MEMBERS

GROWING BIGGER AND STRONGER EVERY DAY Contractor Members A-1 Excavating & Contracting LLC Sean Herring Jersey City, N.J. ABS Facility Solutions LLC Milena Torres Blackwood, N.J. A. Pigna & Son Contractor, Inc. Enrico Pigna Scotch Plains, N.J. Anthony Yaros Industries LLC Anthony Yaros Trenton, N.J. Atlantic Marine Construction Edward Thomas Cape May Court House, N.J. Big Top Contractors, Inc. Michael Sancilardi, Sr. Avenel, N.J.

43 NEW MEMBERS IN THE FOURTH QUARTER

Echologics LLC Tim Ruhl Atlanta, Ga. F & F Materials LLC Frank Mormando, Jr. Howell, N.J. Garme Energy Solutions, Inc. Edward Garcia Hackensack, N.J.

Greg’s Landscaping, Inc. Gregory Garnich Pennington, N.J.

Monarch Excavation LLC Michael Dailey Lincroft, N.J.

HelpForce LLC Eunide Alexandre Mt. Holly, N.J.

ProFence LLC Brian Reiff Shippensburg, Pa.

Cedar Ridge Lawn Care LLC Charlie Matarazzo, Jr. Hampton, N.J.

J Vargas Construction LLC Daniel Guzman Randolph, N.J.

D & A Contracting LLC James DeZao Parsippany, N.J.

JBH Paving & Excavating LLC John Harleman Jackson, N.J.

Daryl G Construction LLC Daryl Gould, Jr. Bridgton, N.J.

James Baxevanis Corp.

James Baxevanis Ewing, N.J.

Delphi Engineering & Contracting, Inc. Michael Pjatikin Sewell, N.J.

James Baxevanis Demolition, Inc. James Baxevanis Ewing, N.J.

WINTER 2024

Mendez Trucking, Inc. Johny Rivera Belleville, N.J. Military Veterans Installation LLC Walter Rios Brick, N.J.

Careri LLC Salvatore Careri Manahawkin, N.J.

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M & O Excavating LLC John Ruthven Manahawkin, N.J.

Green-Way Irrigation, Inc. Eric Nelson Midland Park, N.J.

Hicks Paving and Sealcoating LLC Samuel Hicks Hampton, N.J.

E & T Perez Trucking LLC Elvin Perez Bloomfield, N.J.

L & Y Enterprises LLC Yiliem Jimenez Paterson, N.J.

Levato & Sons, Inc. Simone Levato Morristown, N.J.

GET INVOLVED THE NJLICA BOARD HAS POSITIONS AVAILABLE FOR THE FOLLOWING COMMITTEES: Membership Scholarship Legislative Communications and Marketing Silent and Live Auction Member Programming and Social Member Networking/Education Monthly Meetings Events: State Conference Golf Classic Beefsteak Dinner Holiday Awards Dinner

Renewable Energy Holdings LLC James Strizki Ringoes, N.J.

Sovereign Consulting, Inc. Ravi Gupta Robbinsville, N.J.

Touba Industries LLC John Wallace, Jr. Somerdale, N.J.

River Rock Excavating Jonathan Kuhn Roebling, N.J.

Stewart Environmental Remediation LLC Debra Stewart Long Valley, N.J.

VRC Enterprises, Inc. Victor De Oliveira South River, N.J.

Ryan & Mac Construction LLC Ryan Hiwat Newark, N.J.

Sutton Contracting LLC Kristy Sutton Wall, N.J.

SAEQ & Son Haulers LLC Wilson Espinoza Hamilton, N.J.

The Tree Man/Lenzsch Ent. Tim Lenzsch Egg Harbor Township, N.J.

Sindel Trucking LLC Ignamil Fermin Paterson, N.J.

Toro Services LLC Joseph Torrisi Whippany, N.J.

Associate Members Komatsu America Corp.

Dennis Reci South Plainfield, N.J.

Scheideler Excavating Co.

PATRONS VISION STRONG MANAGEMENT GROUP Buddy Freund PO Box 166 Succasunna, NJ 07876 973-753-2800 buddy@govisionstrong.com govisionstrong.com Vision Strong Management Group provides full-service association management services for associations, foundations, societies, and trade organizations.

Add your company name to our Patron Directory. Contact NJLICA Executive Director Buddy Freund at 973-630-7600 or buddy@govisionstrong.com.

WINTER 2024

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EVENTS

NJLICA CLAY SHOOT

2023 NJLICA HOLIDAY AWARDS DINNER

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WINTER 2024

Nearly 60 NJLICA members enjoyed the challenging shooting course at Lehigh Valley Sporting Clays at the First Annual NJLICA Clay Shoot. Colin Machleder, Filco Industries, took home top scoring honors, as did his team with their first-place finish. The team from Wantage Excavating was second, followed by the third-place finish of teams from Carner Bros. and V.A. Spatz & Sons Construction.

December 7, 2023 marked the 45th Annual NJLICA Holiday Awards Dinner. Nearly 150 attendees enjoyed a night of music, celebration, and great food at the Meadow Wood Manor in Randolph, N.J. Honorees were Paul Spatz, V.A. Spatz & Sons Construction, Contractor of the Year; Bob Manis, North American Aggregates as Associate of the Year; and Amber Bosma, Jim Jansen, Bruce Mosier, and Dave Van Essen of Prins Insurance as the Most Enthusiastic Member.

WAREHOUSE AND YARD 308 North 14th Street Kenilworth, New Jersey 07033 TEL: (908) 686-3832 7:30 A.M. - 4:30 P.M. Monday - Friday

EMERGENCY HOURS BY REQUEST

SUCCESS THROUGH SERVICE SINCE 1927

www.brentmaterial.com WBE Certified (NJ, DE, NY/NJ Port Authority, NYC, NY State, DASNY) WBENC, WOSB, SBE Certified (NJ)

CELEBRATING 94 YEARS OF SUCCESS

SALES OFFICE

325 Columbia Turnpike, Suite 308 Florham Park, New Jersey 07932 TEL: (973) 325-3030 FAX: (973) 325-7360 7:30 A.M. - 5:00 P.M. Monday - Friday EMERGENCY HOURS BY REQUEST

• WATER WORKS •

• STORM DRAINAGE • • SANITARY SEWER •

• EROSION CONTROL • SALES OFFICE WAREHOUSE AND YARD 1271 Glassboro Road Williamstown, New Jersey 08094 7:00 A.M. - 5:00 P.M. Monday - Friday

EMERGENCY HOURS BY REQUEST

TEL: (856) 728-0171 FAX: (856) 728-8275

CATERINA SUPPLY INC.

www.caterinasupply.com NJ Certified WBE/SBE, DE Certified WBE/SBF, PA Certified SDB-W/SBF

CELEBRATING 37 YEARS OF SUCCESS

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WINTER 2024

EMPLOYMENT LAW WEBINAR SERIES

ALL WEBINARS FREE FOR NJLICA MEMBERS

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PREVAILING WAGE WEBINARS

35 WINTER 2024

WINTER 2024

35

Large Resources.

Local Relationships.

We help our clients manage and protect their most valuable assets—their people and their business.

• Personal Insurance • Commercial Insurance • Surety & Bonding

As part of the World Insurance Associates family, we offer our clients top products and services from the best providers that span all of your personal and commercial needs. You will continue to get the white-glove service and personal touch of your local True agent.

Call or email us today to learn more about our offerings. rschielke@trueassoc.com 908-379-2359 36

WINTER 2024

• Employee Benefits • Financial & Retirement Planning • Human Capital Management Solutions

6 Leigh Street Clinton, NJ 08809

325 North Avenue East Westfield, NJ 07090

THE BRANDS

YOU TRUST

UNDER ONE ROOF. WWW.PRECISIONHYDRAULICANDOIL.COM

At Precision Hydraulic & Oil, we strive to meet the needs of our customers. From farmers to municipalities, heavy equipment to personal vehicles, our goal is to provide the highest quality products and services to our loyal customers.

Precision Hydraulic & Oil is a distributor of diesel oils, hydraulic oils, heavy duty greases, DEF uid, Fleetguard lters as well as Deka Batteries. Our in-house hydraulic hose repair is designed to get you back up and running with very little down time. We ooer high quality Parker products that are dependable, reliable and trusted for our customer needs.

Stop by our shop today, or schedule a delivery. We are here to help you keep your business running smoothly

FOR MORE INFORMATION VISIT US AT

www.PrecisionHydraulicAndOil.com

2024 37 290 Croshaw Rd, Wrightstown, NJWINTER | 609-286-4446

CONTACT US

HEY, YOU! Have a story idea? SEND IT! Got a great photo? SEND IT! Have some feedback for us? SEND IT! We are on the lookout for content. Promote your business by sponsoring an ad, or send us articles and photographs to be published in a future issue of The Underground. For more information on how you can be featured, contact: Buddy Freund NJLICA Executive Director 973-630-7600 buddy@govisionstrong.com

WRITE TO US! AD INDEX

COMPANY

PAGE NUMBER

Brent Material Company

33

Bucket Supply & Equipment Parts

26

DAG Onsite Crushing

7

NJLICA 6 North American Aggregates

back cover

24

Power Patch

13

Genova Burns

18

Precision Hydraulic & Oil

37

Grassi Advisors & Accountants

inside front cover

Prins Insurance 29

GT Mid Atlantic

22

Highway Equipment

inside back cover

JESCO 3 Lindabury, McCormick, Estabrook & Cooper, P.C.

38

M. Adams & Associates: a Division of World

WINTER 2024

25

Scheideler Excavating

31

Tilcon 23 TLC4 Prevailing Wage

12

Tri-State Safety Solutions

15

True & Associates: a World Company

36

URGENT ABOUT UPTIME SINCE 1933

HITACHI ZW100-6 WHEEL LOADER The ZW100-6 Hitachi wheel loader is perfect for a wide range of applications and job sites. In addition, it’s smooth and efficient to operate, and offers increased productivity and greater fuel efficiency.

At Highway Equipment, we are SOLUTION PARTNERS. We help you find the right equipment and features, like the Hitachi ZW100-6, to get YOUR job done productively and predictably.

SOLUTION PARTNERS

URGENT ABOUT UPTIME

JOY TO WORK WITH

We’re more than just your vendor.

We’re your partner. We help you get the job done productively and predictably.

Your time is valuable. Your uptime is critical. Our proactive parts, services, and data experts are here to keep you running.

Heavy Equipment should be fun. With us, it is. We’re always on the lookout for ways to reduce friction and avoid complexity.

732.446.7600 WINTER 2024

615 STATE ROUTE 33, MILLSTONE TWP, NJ 08535 | HIGHWAY-EQUIPMENT.COM

39

NJLICA PO Box 166 Succasunna, NJ 07876

40

WINTER 2024