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20 Hartford Business Journal • November 20, 2017 • www.HartfordBusiness.com Opinion & Commentary EDITOR'S TAKE Fiscal uncertainty makes growth harder, not impossible C onnecticut got another double-dose of bad economic news last week. First, the much-hyped bipartisan state bud- get has already fallen out of balance as eroding rev- enues have created a projected $175 million deficit this fiscal year. Then, a new third-quarter consumer confidence survey found that 51 percent of Con- necticut residents do not believe the state's economy is improving, while 37 percent said they believe overall business conditions in the state are now worse compared to six months ago. Both news tidbits shouldn't be surprising to those who have been paying attention to the state's and city's fiscal and economic chal- lenges, which have become national stories. Undoubtedly, the constant wave of negative financial news coming out of Hartford in recent months and years has impacted Connecti- cut's and the region's ability to attract businesses and investment. The question is by how much? There may only be subjective answers, but Connecticut's paltry growth in jobs (we still haven't fully recovered the 119,100 jobs lost during the Great Recession) and Gross State Product combined with a declining population provide ample evidence that it's been a struggle. However, while Connecticut's financial woes may deter some businesses from locating or investing here, it's not true for all of them. Those were the sentiments shared by Jonathan Cohen, North American manager for the Israeli Innovation Authority, who recently stopped in Hartford with a delegation of Israeli startup executives and government officials. The goal of the visit was to advance a relationship between a country and state that have spent years trying to forge stronger economic ties. When asked by HBJ if Hartford's and Connecticut's well-publicized fiscal problems would deter Israeli companies from thinking about a presence in the city or state, Cohen, who heads that country's top economic development agency, said not necessarily. "In Israel you can go and find deficits too," he said. "I think if you invest in those compa- nies, in those stakeholders, the economy will flourish." His insights mirror sentiments shared by other foreign companies that have found a home in Connecticut — often accompanied by state financial incentives. The truth is, Connecticut can be a good place for foreign businesses, particularly those from Europe or Asia, looking to establish an American beachhead. Connecticut, for now, is still a lower-cost destination than New York and Massachusetts. Its other positive attributes include a well- educated populace and high quality of life. The Israeli alliance makes even more sense because of Greater Hartford's strong Jewish population. The state and several other groups, including the MetroHartford Alliance, the Connecticut Economic Resource Center and Upward Hartford's Shana Schlossberg, deserve credit for con- tinuing to nurture the Connecticut-Israeli connections, which have borne some fruit includ- ing the establishment of several Israeli companies in Hartford and other parts of the state. It's a smart economic development strategy to continue to showcase Connecticut to foreign companies, though the funding available at the state level for international recruit- ment is limited. Among those who greeted the Israeli delegation was Hartford Mayor Luke Bronin, who also recently sat for an editorial board meeting with HBJ. When asked if he thought the city's fiscal crisis injured Hartford's reputation with inves- tors and businesses, he said he didn't think so. "I think what investors and businesses want to see is that we are determined to fix the problem that has held us back for a long time," he said. "We've had structural deficits year after year." "The biggest enemy of investment and growth is uncertainty," he added. Bronin said he's heard from businesses and developers who are excited about the city's recent development wave, and who have taken comfort in the city's efforts to try to seri- ously tackle its debt and deficits. The city, however, still has a long way to go before it reaches fiscal stability. And even if the negative headlines don't scare away investors, the city's highest-in-the-state property tax rate is certainly a deterrent (Hartford's mill rate is 74.29). That being said, Hartford is gaining momentum and if city and state leaders can put us on a sustainable fiscal path, greater job growth and investment will follow. EXPERTS CORNER Sexual harassment: What every employer needs to know By Shel Myers W ith news out of Hollywood exploding with stories of sexual harassment, pressure is building on Connecticut employers to better under- stand and enforce the law on these matters. Title VII of the Civil Rights Act of 1964 and the Connecticut Fair Employment Practices Act explicitly prohibit sexual harassment in the workplace. So what is sexual harassment exactly? Any unwelcome sexual advances, requests for sexual favors, or other verbal or physical conduct of a sexual nature constitute sexual harassment when submission to such behavior is made a term or condition of an individual's employment, or im- pacts employment decisions affecting that individual. Also, any conduct that unreasonably interferes with an individual's work performance or creates an intimidating, hostile or offensive working environment is considered sexual harassment. There are really three key elements to the definition of sexual harassment: • The behavior is unwanted or unwelcome. • The behavior is sexual or related to the sex or gender of the harassed person. • The behavior usually occurs in the context of a relation- ship where one person has more formal or informal power than the other. There are a number of work- place behaviors that are generally viewed as sexual harassment when they are unwant- ed. They include: • Direct or indirect threats calling for unwanted sexual activity. • Sexual innuendoes or jokes. • Asking about or commenting on a person's sexual activities. • Sexist remarks about a person's cloth- ing or body. • Sexually suggestive sounds or ges- tures, including sucking noises, wink- ing and throwing kisses. • Pestering a person for dates or sexual behavior. • Touching, patting, striking, squeezing, tickling or brushing up against a person. • Giving a neck or shoulder massage. • Rating a person's sexual attractiveness. • Ogling or leering, unwanted leaning over or cornering. • Spreading sexually explicit rumors. • Graffiti about a person's sexuality. • Name calling such as "bitch," "slut," "whore." • Sexual ridicule. • Written or oral communications of a sexual nature. • Pejorative comments about males or females in general. • Displaying pictures, calendars, cartoons or other materials with sexual content. • Stalking. • Attempted or actual sexual assault. Infractions have consequences for employers Employers found to have tolerated sexual harassment in their workplace have considerable legal exposure. Remedies available to employees can include a jury trial, reinstatement, back pay, front pay, lost fringe benefits and unlimited compen- satory and punitive damages. We often say that being an employer is not an easy task. But when it comes to matters of sexual harassment, there are preventa- tive measures that can be taken that offer a degree of legal protection while improving the chances that your employees will enjoy a positive work experience. What's the most important mea- sure an employer should take? Make sure you have a clear and visible anti-harassment policy and complaint procedure in place at all of your facilities. This solution should include adopting and publishing grievance procedures provid- ing for prompt and equitable resolution of all sex-discrimination complaints. Your ultimate goal (and best legal protec- tion) should be to create a work environment in which all persons understand, through the policy statements and the actions taken in support of that policy, that sexual harass- ment will not be tolerated. Shel Myers is a partner at the labor and employment law firm of Kainen, Escalera & McHale in Hartford. Shel Myers Greg Bordonaro Editor Make sure you have a clear and visible anti-harassment policy and complaint procedure in place at all of your facilities.