PB&J – The Key to Your Company’s Most Appetizing Workflows
By Alison Nelson, Employee Benefits Account Manager
I was recently chatting with my mom, who is an elementary school teacher, and she was telling me about one of her favorite projects to do with her class – the PB&J project. To teach her class the importance of clear and concise instructions, she divides her students into groups and gives them the simple task of writing instructions on how to make a peanut butter and jelly sandwich. Easy enough, right?
After the groups complete their instructions, my mom stands in front of the class with all of the tools and ingredients needed to make a PB&J and she follows each group’s written directions. Word for word.
“Spread peanut butter on bread” the directions don’t say what to use, so she scoops peanut butter with her bare hands and smears it on all sides of the bread.
“Add jelly” Add jelly to what? My mom would then scoop jelly onto the table.
This process would go on and on until she would present the class with a multitude of Frankenstein-like sandwiches. Then, they would work together as a class to write a final set of incredibly detailed instructions that, when followed by their teacher, finally resulted in a deliciously ordinary PB&J.
Aside from being a fun activity, the PB&J project highlights the need to be incredibly detailed and thoughtful when writing instructions intended for others to follow – something every organization should consider when it comes to their workflow processes. Life happens, colleagues call out sick or go on vacation. When someone else must cover for that colleague, do they have access to written instructions that will allow them to follow the workflow with ease?
At RISQ Consulting, we’ve been updating some of our written processes and conducting our own version of the PB&J project. Once a process has been written, we have someone from a completely different department try to follow the directions to complete the task. Having someone who has no prior knowledge of the task at hand follow the directions has been a crucial step in writing our processes. It’s easy to make assumptions that some things might be common sense, but, when thrown into a new workflow, you’ll want all the clarity you can get.
You can view a popular (and funny) video version of the PB&J task here. And as you write your own set of processes, ask yourself if you think you’d end up with a PB&J or a complete mess of a sandwich.
- Published in Blog
The RISQ RECAP:
July 24th – July 28th, 2023
Each week, you’ll find specially curated news articles to keep you up to date on the ever-evolving world of insurance and risk management. The articles are divided out between items relevant to Property & Casualty, Employee Benefits/Human Resources, and Compliance. We’ve included brief summaries of each item as well as a link to the original articles.
PROPERTY & CASUALTY
A First Look at How U.S. Insurers Are Adopting Global Climate Reporting Guidelines “U.S. insurers are adopting numerous strategies to deal with risks from climate change, according to a review out today that gives the first look at how or if insurance companies are adopting the widely used Task Force for Financial Disclosure guidelines. The review of Climate Risk Disclosure Survey responses, submitted to state regulators each year by insurers operating in 27 member states and jurisdictions, was conducted by climate leadership group Ceres and the California Department of Insurance.” Full Article – Insurance Journal
Berkley on Industry’s Financial Results: ‘Cat Losses Count’ “The fact is, catastrophe losses are a part of an insurers’ financial results and not a line item to be dismissed, said W. Robert Berkley Jr, president and chief executive of W.R. Berkley Corp during a recent conference call on second quarter earnings. Berkley opened his comments last week by saying it looked as though the industry was poised for “another ‘but-for’ quarter” – referring to insurers’ habit of spinning results “but for” catastrophe losses. “It would seem as though [catastrophe] losses don’t make a difference and, bizarrely, from our perspective, people seem to very quick to back out cat losses as though it’s not real money,” Berkley said. “Ironically, they do not seem to back out the premium associated with the exposure that just had the losses.” Full Article – Insurance Journal
EMPLOYEE BENEFITS, HUMAN RESOURCES, & COMPLIANCE
NLRB Issues Advice Memo Designating Workplace Discussions of Racism as Protected Activity “The National Labor Relations Board (NLRB) recently issued an advice memo confirming its earlier position that workplace discussions about racism are protected concerted activity under the National Labor Relations Act (NLRA). As a result, employers cannot fire, discipline, or take any adverse employment action against employees who publicly raise concerns about racism in the workplace.’” Full Article – Hall Benefits Law
More Than “De Minimis” — The Supreme Court Clarifies Title VII Undue Hardship Standard “Title VII makes it illegal for covered employers to discriminate against employees and applicants based on certain protected characteristics, including sincerely held religious beliefs. Title VII also creates an affirmative obligation to accommodate the religious practices of employees and applicants unless doing so would impose an ‘undue hardship’ on the conduct of the employer’s business.” Full Article – Vinson & Elkins LLP
Revolutionary Change but No Free Lunch: What to Know About Algorithmic Discrimination and AI “The capacity and deployment of artificial intelligence (“AI”) is dizzying. As businesses vet and/or actively integrate AI into their business processes, it is critical to understand not only AI’s potential but the potential risks. This includes inadvertently contributing to systemic discrimination issues and being subject to claims of violation of existing legal protections.” Full Article – Brownstein Hyatt Farber Schreck, LLP
Spike in Religious Discrimination Charges Stemming from COVID-19 Vaccine Mandates Fuels Increase in EEOC Charges “In FY 2022, the EEOC saw the number of charges leap by more than 10,000 over the prior year. This uptick appears to be almost entirely attributable to the COVID-19 pandemic: a striking rise of over 600% in religious discrimination claims, with many filed by applicants and employees seeking religious exemptions to companies’ COVID- 19 vaccine mandates.” Full Article – Seyfarth Shaw LLP
OSHA: Targeting Warehouses, Distribution and Retail “Effective July 13, 2023, OSHA has launched a National Emphasis Program (NEP) targeting inspections on workplace hazards in warehouses, processing facilities, distribution centers, and high-risk retail establishments.” Full Article – Michael Best & Friedrich LLP
Employers Seek to Delay Start of Mandatory I-9 Re-inspections “Employers are reportedly urging the Biden Administration to delay the current August 30 deadline for in person re-inspections of I-9 documents that were submitted virtually during the COVID-19 pandemic. The employers argue that the delay is justified because final regulations are expected in August that might make virtual verification and other alternative options permanent, according to a recent article in Bloomberg Law (paid subscription required to access).” Full Article – Constangy Brooks Smith & Prophete, LLP
STATE & INTERNATIONAL COMPLIANCE
In addition to the RISQ Review, RISQ Consulting also provides a resource that features changes and updates to State and International Compliance measures. We’ve included brief summaries of each item below, and also provided links to the original articles if you’d like to read further.
NEW YORK
NYC to Consider Indoor Air Quality Regulations
“The COVID-19 pandemic and wildfire smoke shrouding the skies over the East Coast this summer have drawn more attention to indoor air quality, leading the New York City Council to propose indoor air quality resolutions.” Full Article
– Seyfarth Shaw LLP
NNYC Releases Automated Employment Decision Tools FAQs Addressing Certain Lingering Questions
“The New York City Department of Consumer and Worker Protection (“DCWP”) has released its highly anticipated FAQs, providing additional guidance to employers seeking to comply with Local Law 144.” Full Article
– Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.
MAINE
Maine Legislative Roundup: New Employment Laws Were Enacted This Session
“The First Special Session of the 131st Maine Legislature included debate about more than 2,000 bills. Many that were adopted will impact employers in the Pine Tree State. Below is a brief summary of important employment law changes enacted this session.” Full Article
– Littler Mendelson P.C.
OHIO
Ohio Federal Court Denies Conditional Certification in an Early Application of the Sixth Circuit’s “Strong Likelihood” Standard,
Signaling a New Normal for Wage & Hour Lawsuits
“On May 19, 2023, the Sixth Circuit replaced the long-standing lenient test for facilitating notice under the Fair Labor Standards Act (FLSA) with a more rigorous test akin to the standard used to obtain a preliminary injunction.” Full Article
– Duane Morris LLP
HAWAII
Hawaii Enacts Pay Transparency and Expands Equal Pay Legislation
“On July 3, 2023, Hawaii Governor Josh Green signed S.B. 1057 into law, expanding equal pay protections and making Hawaii the latest state to require certain employers to disclose salary information in their job advertisements. The law takes effect on January 1, 2024.” Full Article
– Proskauer Rose LLP
- Published in Blog
A Primer on QSEHRAs
This article is from RISQ Consulting’s Zywave client portal, a resource available to all RISQ Consulting clients. Please contact your Benefits Consultant or Account Executive for more information or for help setting up your own login.
Due to rising health care costs, small businesses often struggle to provide employees with affordable, high-quality benefits. In fact, many small businesses choose not to offer employee benefits because of cost constraints. Failing to offer health benefits can place small businesses at a disadvantage when it comes to attracting and retaining key talent compared to their larger counterparts. However, qualified small employer health reimbursement arrangements (QSEHRAs) offer small businesses the opportunity to provide employees with affordable, quality care.
A QSEHRA is a health reimbursement arrangement (HRA) that allows a small business to provide employees tax-free reimbursements for health insurance premiums and other qualifying health care expenses. Compared to traditional group health plans, QSEHRAs can offer small businesses more flexibility and affordability when administering health care benefits while tailoring benefits offerings to fit employee needs.
This article provides a general overview of QSEHRAs and outlines some considerations for employers to keep in mind when deciding whether to offer employees this coverage.
What Is a QSEHRA?
A QSEHRA is a health reimbursement arrangement for employers with fewer than 50 full-time employees. It allows qualifying small businesses without employer-sponsored group health benefits or any excepted benefits, such as dental and vision, to provide tax-free reimbursements to employees for eligible medical expenses. To qualify for tax-free reimbursements, employees must be enrolled in health plans that meet the minimum essential coverage (MEC) requirements outlined in the Affordable Care Act.
How Do QSEHRAs Work?
An employee with MEC can submit qualified medical expenses and supporting documents to their employer for reimbursement. Qualifying expenses typically include:
- Insurance premiums
- Coinsurance
- Copays
- Deductibles
- Prescription or over-the-counter drugs
The employer then provides tax-free reimbursements to the employee, up to a specified annual maximum amount. The IRS imposes annual maximums per employee, with separate limits for individual and family coverage. If an employee’s medical expenses do not reach the annual maximum reimbursement amount during the plan year, the employer may keep the remaining balance or roll it over for the following year. Employees may not receive cash payments for the difference if their expenses fail to reach the annual maximum amount.
QSEHRA Eligibility Requirements
The eligibility requirements for QSEHRAs differ for employers and employees.
Employer Eligibility Requirements
For employers to be eligible to offer a QSEHRA, they must meet the following requirements:
- Employ less than 50 full-time employees
- Not offer a group health plan, excepted benefits or a flexible spending account (FSA)
Employee Eligibility Requirements
Most employees of an eligible employer may qualify to participate in a QSEHRA. Even employees without MEC can still participate in their employer’s QSEHRA, but their medical reimbursements will be taxable. Additionally, employees with group health coverage through their spouse can participate in a QSEHRA, but their group health premiums cannot be reimbursed. However, employers can exclude certain categories of employees, including part-time and seasonal employees as well as employees younger than age 25.
Considerations for Offering a QSEHRA
QSEHRAs allow small businesses to offer employees health benefits without having to manage a group health plan. This can help small businesses avoid the potential downsides of traditional health insurance plans, such as expensive premiums, restrictive participation, contribution requirements and annual rate increases.
QSEHRAs can also benefit employers offering health benefits for the first time since these plans allow employers to control costs, provide flexibility and scale their benefits as their organization grows. They are often a good option for organizations with a remote and geographically disbursed workforce because small businesses may be unable to find a national carrier that provides high-quality, affordable health benefits. Additionally, QSEHRAs can offer employees more choice in how they spend their health care dollars than traditional health plans.
Summary
QSEHRAs offer a valuable solution for small businesses seeking to provide health benefits to their employees without incurring the costs typically associated with traditional group health plans. Leveraging the flexibility and tax advantages of QSEHRAs can help small businesses offer competitive benefits to attract and retain top talent while controlling costs.
Reach out to us today for more information on QSEHRAs.
- Published in Blog
The RISQ RECAP:
July 17th – July 21st, 2023
Each week, you’ll find specially curated news articles to keep you up to date on the ever-evolving world of insurance and risk management. The articles are divided out between items relevant to Property & Casualty, Employee Benefits/Human Resources, and Compliance. We’ve included brief summaries of each item as well as a link to the original articles.
PROPERTY & CASUALTY
Cybersecurity Labeling for Smart Devices Aims to Cut Hacking Vulnerabilities “The Biden administration and major consumer technology players on Tuesday launched an effort to put a nationwide cybersecurity certification and labeling program in place to help consumers choose smart devices that are less vulnerable to hacking. Officials likened the new U.S. Cyber Trust Mark initiative — to be overseen by the Federal Communications Commission, with industry participation voluntary — to the Energy Star program, which rates appliances’ energy efficiency. “It will allow Americans to confidently identify which internet- and Bluetooth-connected devices are cybersecure,” deputy national security adviser Anne Neuberger told reporters in a pre-announcement briefing. Amazon, Best Buy, Google, LG Electronics USA, Logitech and Samsung are among industry participants.” Full Article – Insurance Journal
GOP Attorneys General Shift Battle Over Affirmative Action to Workplace “Thirteen Republican state attorneys general are cautioning CEOs of the 100 biggest U.S. companies on the legal consequences for using race as a factor in hiring and employment practices, demonstrating how the Supreme Court’s recent ruling dismantling affirmative action in higher education may trickle into the workplace. The state attorneys general sent a letter to the CEOs on Thursday [July 13] arguing that the controversial June ruling declaring that race cannot be a factor in college admissions – consequently striking down decades-old practices aimed at achieving diverse student bodies – could also apply to private entities, like employers. “Treating people differently because of the color of their skin, even for benign purposes, is unlawful and wrong,” they wrote. The GOP officials also suggested that Diversity, Equity and Inclusion programs could be a form of discrimination.” Full Article – Insurance Journal
EMPLOYEE BENEFITS, HUMAN RESOURCES, & COMPLIANCE
Meet Me at the Corner of No Surprises and … “The FAQs make it clear that, for services within the ambit of the No Surprise Billing Rules, either the No Surprise Billing rules or the ACA cost-sharing limits will apply.” Full Article – Ballard Spahr LLP
Eighth Circuit: Plan May Exclude Certain Specified Emergency Services “The Court upheld the lower court’s decision, noting that while the participant argued that the plan had to cover his emergency treatment under the ACA and state law, neither law requires that a plan cover all emergency services. Moreover, both laws say that coverage is subject to a plan’s exclusions.” Full Article – The Wagner Law Group
FTC Proposes to Vastly Expand the Health Breach Notification Rule “The Proposed Rule’s new definition of ‘health care provider’ is modeled after the HIPAA definition of this term, but its inclusion of the new term ‘health care service or supply’ considerably expands the customary definitions of a health care ‘service or supply’ and a ‘health care provider.’” Full Article – Nelson Mullins Riley & Scarborough LLP
Avoiding the Storm of Excessive Fee Legislation: How Fiduciaries of ERISA Health Plans Can Get Ahead of the Weather “As group health plan sponsors consider the fee disclosures mandated by the CAA, attorneys representing plan participants will likely do so also, seeking to determine if plans have been paying excessive service fees and whether those excessive fees have been passed on to plan participants in the form of insurance premiums, service charges, or other costs.” Full Article – Dickinson Wright PLLC
The ERISA Edit: A Case to Watch on Fiduciary Liability of TPAs “The benefits committee board of the Kraft Heinz Company has sued Aetna Life Insurance Company, claiming that Aetna violated ERISA in numerous ways when serving as TPA to two of the company’s self-funded group health benefit plans. This case is one of a growing number of lawsuits against TPAs involving who owns or has a right to access a plan’s medical claims and payment data and what types of TPA activities are covered under ERISA’s fiduciary duty provisions.” Full Article – Miller & Chevalier Chartered
Tri-Agencies Issue Proposed Rule on Short-Term, Limited Duration Insurance, Excepted Benefits, and Level-Funded Plans “Overall, the Proposed Rule seems focused on the effects of various coverage options on the stability of the risk pools and premiums in the individual and small group markets and consumer protection against deceptive or misleading marketing, which is consistent with the Biden Administration’s January 28, 2021 Executive Order directing federal agencies to protect and strengthen the ACA.” Full Article – Groom Law Group
STATE & INTERNATIONAL COMPLIANCE
In addition to the RISQ Review, RISQ Consulting also provides a resource that features changes and updates to State and International Compliance measures. We’ve included brief summaries of each item below, and also provided links to the original articles if you’d like to read further.
NEW YORK
New York’s Imminent Non-Compete Ban
“New York State is poised to join a growing number of states banning outright nearly all non-compete agreements. The New York State legislature has passed a bill banning almost all non-compete agreements for all workers, regardless of their salary level or job function.” Full Article
– Sidley Austin LLP
VIRGINA
Virginia Legislature Makes Changes to Employment Law
“During Virginia’s 2023 legislative session, a number of changes impacting employment law were passed and signed into law by Governor Glenn Youngkin. Those laws will become effective July 1. The following briefly describes some of the bills that most immediately impact employers.” Full Article
– Troutman Pepper Hamilton Sanders LLP
ILLINOIS
Revised Illinois Day and Temporary Labor Services Act: Implications for Staffing Agencies and Their Customers
“Recently, the Illinois General Assembly made substantial modifications to Illinois’ Day and Temporary Labor Services Act (820 ILCS 175/). The legislation drastically alters the legal landscape for staffing agencies and their clients.” Full Article
– Duane Morris LLP
MARYLAND
TOP TIP: Recreational Marijuana in Maryland
“As most Marylanders probably know, on July 1, 2023 recreational marijuana use will become legal in Maryland. We have some tips for employers in navigating this new territory. Under the new Maryland law (2022 MD H.B. 1), individuals 21 or older are permitted to use marijuana while off duty so long as they do not report to work under the influence (or, of course, smoke weed on the job).” Full Article
– Shawe Rosenthal LLP
CALIFORNIA
California Supreme Court Clarifies Employee Whistleblower Protections
“Can an employee still be protected as a whistleblower under California law if they are not the first to blow the same whistle? Per the California Supreme Court, the answer is yes: ‘[A] protected disclosure under [Labor Code] section 1102.5(b) encompasses reports or complaints of a violation made to an employer or agency even if the recipient already knows of the violation.” Full Article
– Venable LLP
- Published in Blog
EAP – The Benefit You Might Be Forgetting
By Alison Nelson, Employee Benefits Account Manager
Many employers offer a Long-Term Disability (LTD) policy to their employees, which allows people to maintain a portion of their income if they are no longer able to work. But did you know that most LTD policies include an additional benefit that can be used, even if you don’t have an LTD claim? This benefit is called an Employee Assistance Program.
An Employee Assistance Program (EAP) is a confidential program that allows you, or anyone in your household, to talk to a professional for any number of things that could impact your mental or emotional well-being. EAPs are a fantastic resource for counseling, stress-management, personal and professional relationships, grief, trauma, and so much more. If a family member become diagnosed with a serious illness, you can contact your EAP for help managing that stress and finding resources for that family member.
Most people don’t think about their Long-Term Disability policy unless they need it, which makes it easy to overlook the associated benefit of an EAP. Even if you don’t have an LTD policy, it’s worth checking with your Benefits Administrator to see if you have an EAP available to you. Mental health is something I’m very passionate about (I even wrote two blogs about it, here’s Part One and here is Part Two). I believe incredibly important to provide resources that aid in the mental and emotional well-being of employees and their families.
Not only does an EAP assist employees, it can help businesses to increase productivity and reduce employee absenteeism! After all, an engaged and productive employee is healthy AND happy. Here is an article that dives into the benefits of an EAP, which can be an all-around win-win. If you’d like to learn more, please don’t hesitate to reach out to RISQ Consulting!
- Published in Blog
PSYCH 101 – Anxiety
This article is from RISQ Consulting’s Zywave client portal, a resource available to all RISQ Consulting clients. Please contact your Benefits Consultant or Account Executive for more information or for help setting up your own login.
Experiencing occasional anxiety is normal. However, if your feelings of anxiety are extreme, last for an extended period or interfere with your daily life, you may have an anxiety disorder. People with anxiety disorders frequently experience intense, excessive and persistent worry and fear about everyday situations.
Although often used interchangeably, anxiety is not the same as fear. According to the American Psychological Association (APA), anxiety is a future-oriented, long-acting response broadly focused on a diffuse threat. At the same time, fear is an appropriate, present-oriented and short-lived response to an identifiable and specific threat.
Keep in mind that anxiety also is not interchangeable with stress. Both are emotional responses, but stress is generally caused by an external trigger (e.g., a work deadline, conflict or chronic illness). These terms are often confused since anxiety leads to similar symptoms.
The National Institute of Mental Health estimates that 31% of Americans will experience an anxiety disorder during their lifetimes. There are several types of anxiety disorders, and having more than one simultaneously is possible. When excessive anxiousness lasts more than six months, it is then considered and treated as an anxiety disorder.
Here are some of the most common anxiety disorders:
- Generalized anxiety disorder (GAD) includes persistent and excessive anxiety and worry about activities or events that are often ordinary or routine. These stressful feelings can jump from topic to topic, occurring most days. GAD is diagnosed when a person worries excessively about various everyday problems for at least six months. Physical symptoms accompanying this condition include fatigue, headaches, irritability, nausea, frequent urination and hot flashes.
- Panic disorder involves repeated attacks of terror, known as panic attacks, usually accompanied by a pounding heart, sweating, dizziness and weakness. During these attacks, a person may flush or feel chilled, their hands may tingle or feel numb, and nausea or chest pain may occur. Panic attacks usually produce a sense of unreality, a feeling of impending doom or a fear of losing control. They can occur at any time, even during sleep. Some people who experience panic attacks become so fearful that they refuse to leave home. When the condition progresses this far, it is called agoraphobia—a fear of open spaces.
- Social anxiety disorder is diagnosed when individuals become overwhelmingly anxious and excessively self-conscious in everyday social situations. People with this phobia have an intense, persistent and chronic fear of being watched and judged by others and doing things that will embarrass them. They may worry for days or even weeks before a dreaded situation. Many individuals with social phobia realize that their fear is unwarranted but are still unable to overcome it.
- A specific phobia is an intense and irrational fear of something that poses little or no threat, such as heights, escalators, dogs, spiders, closed-in places or water. Similar to social anxiety disorder, individuals understand these fears are irrational, but feel powerless to stop them. The causes of specific phobias are not well-understood, but symptoms usually appear in childhood or adolescence and continue into adulthood.
The causes of anxiety disorders aren’t fully understood. For example, life experiences can trigger anxiety disorders in people already prone to anxiety. Inherited traits may increase a person’s chance of developing an anxiety disorder or anxiety could result from a medical condition that needs treatment. The APA notes that women are more likely to experience anxiety disorders than men.
In general, anxiety disorders are treated with medication, therapy or both. Before treatment begins, a doctor must conduct a careful diagnostic evaluation to determine whether an anxiety disorder or a physical problem causes a person’s symptoms. Sometimes alcoholism, depression or other coexisting conditions strongly affect an individual, and treating their anxiety disorder must wait until those conditions are controlled. Those with anxiety disorders usually try several different treatments or combinations of treatments before finding the one that works for them.
Anxiety looks and feels different for everyone, so it’s important to understand how anxiety can present itself. Common symptoms of anxiety include the following:
- Anxious thoughts that are difficult to control
- Fatigue
- Irritability
- Restlessness
- Sleep problems, such as difficulty falling or staying asleep
- Trouble concentrating
- Unexplained aches and pains
Anxiety may not go away on its own and can worsen if left untreated. Many people will experience an anxiety disorder at some point in their lives, and, fortunately, they are very treatable. If you feel like you’re worrying too much and these feelings are interfering with your work, relationships or other aspects of your life, contact your doctor or a mental health professional.
- Published in Blog
The RISQ RECAP:
July 10th – July 14th, 2023
Each week, you’ll find specially curated news articles to keep you up to date on the ever-evolving world of insurance and risk management. The articles are divided out between items relevant to Property & Casualty, Employee Benefits/Human Resources, and Compliance. We’ve included brief summaries of each item as well as a link to the original articles.
PROPERTY & CASUALTY
Report: Top Emerging Liability Trends in the Professional Services Sector “Inflation, new technology, evolving legislation and hackers for hire are just a few of the exposures facing professional services firms including management consultants, auditors, accountants, architects, engineers, solicitors and lawyers and media executives. A new report by Allianz Global Corporate & Specialty (AGCS) highlights several emerging liability trends for companies, ranking them by level of anticipated impact, potential drivers of loss activity and the likely ease with which these risks may be mitigated. “Although exposures vary, all these professions face a wide range of civil liability exposures which need to be adequately addressed and mitigated. These could range from accusations of negligence or omissions resulting in harm or damage to the client, to misrepresentation, to failure to identify fraudulent activity, to the unintentional breach of contract, intellectual property rights or confidentiality, and regulatory investigations and actions,” says Diego Assef, head of the Global Practice Group, professional indemnity claims at AGCS. The legal and construction sectors are the industries most impacted by large professional indemnity claims, according to the report.” Full Article – Insurance Journal
Top Global Business Risks and Their Effects on the Insurance Industry “Earlier this year, international corporate insurance carrier Allianz Global Corporate & Specialty (AGCS) released their 12th annual Allianz Risk Barometer. The survey takes a look at the top global business risks according to data from over 2700 respondents spanning 94 different countries and territories. Respondents include Allianz customers, brokers and industry trade organizations, risk consultants, underwriters, senior managers, and claims experts, among other risk management professionals. So what are today’s business leaders most concerned about? Unsurprisingly, the pandemic and resulting supply chain shortages, delays, and high inflation had a big influence on current risk outlook. Macroeconomic developments ranked third for top business risks for 2023, pushing climate change and natural disasters further down the list. And for the second year in a row, cyber incidents and business interruptions took first and second. Both the energy crisis and political risks and violence were new to the list this year, coming in at No. 3 and No. 10, respectively.” Full Article – Insurance Journal
EMPLOYEE BENEFITS, HUMAN RESOURCES, & COMPLIANCE
2022 EEO-1 Reporting Again Delayed “Last week the Equal Employment Opportunity Commission revealed that the 2022 EEO-1 reporting deadline is again being postponed. Reporting, which was expected to begin in July, is now ‘tentatively’ scheduled to open in the fall of 2023.” Full Article – Littler Mendelson P.C.
Four Things You May Not Know About … the Family and Medical Leave Act “Welcome to the first in a series of blogs examining often overlooked or misunderstood provisions of common employment law topics. Today we will be covering four pitfalls that employers may inadvertently encounter when navigating the federal Family & Medical Leave Act (‘FMLA’).” Full Article – Proskauer Rose LLP
Rap Music Can Create a Sexually Hostile Work Environment — for Both Women and Men “Even though both men and women were exposed to – and offended by – ‘sexually graphic, violently misogynistic’ rap music, the U.S. Court of Appeals for the Ninth Circuit held that such music, played constantly and publicly throughout the warehouse, could constitute harassment based on sex.” Full Article – Shawe Rosenthal LLP
EEOC Releases New AI Guidance for Employers “On May 18, 2023, the U.S. Equal Employment Opportunity Commission (EEOC) issued new technical guidance on how to measure adverse impact when employment selection tools use artificial intelligence (AI), titled ‘Assessing Adverse Impact in Software, Algorithms, and Artificial Intelligence Used in Employment Selection Procedures Under Title VII of the Civil Rights Act of 1964.” Full Article – Akin Gump Strauss Hauer & Feld LLP
Supreme Court Clarifies “Undue Hardship” in Religious Accommodation “On June 29, 2023, the Supreme Court decided Groff v. DeJoy in a unanimous ruling that clarifies the ‘undue hardship’ standard under which an employer can deny a requested religious accommodation under Title VII of the Civil Rights Act of 1964. The Court rejected a ‘de minimis cost’ test. To avoid liability, the Court explained, an employer must show that granting the accommodation ‘would result in substantial increased costs in relation to the conduct of its particular business.’” Full Article – Paul Hastings, LLP
New Federal Law Expands Protections for Pregnant Applicants and Employees “Beginning June 27, 2023, a new federal law—the Pregnant Workers Fairness Act (the ‘PWFA’)—expands protections for pregnant job applicants and employees. In particular, the PWFA requires, among other things, that covered employers provide a reasonable accommodation for known limitations related to pregnancy, childbirth, and associated medical conditions of qualified employees and job applicants unless the accommodation would cause an undue hardship.” Full Article – Mayer Brown LLP
STATE & INTERNATIONAL COMPLIANCE
In addition to the RISQ Review, RISQ Consulting also provides a resource that features changes and updates to State and International Compliance measures. We’ve included brief summaries of each item below, and also provided links to the original articles if you’d like to read further.
NEW YORK
New York’s Imminent Non-Compete Ban
“New York State is poised to join a growing number of states banning outright nearly all non-compete agreements. The New York State legislature has passed a bill banning almost all non-compete agreements for all workers, regardless of their salary level or job function.” Full Article
– Sidley Austin LLP
VIRGINA
Virginia Legislature Makes Changes to Employment Law
“During Virginia’s 2023 legislative session, a number of changes impacting employment law were passed and signed into law by Governor Glenn Youngkin. Those laws will become effective July 1. The following briefly describes some of the bills that most immediately impact employers.” Full Article
– Troutman Pepper Hamilton Sanders LLP
ILLINOIS
Revised Illinois Day and Temporary Labor Services Act: Implications for Staffing Agencies and Their Customers
“Recently, the Illinois General Assembly made substantial modifications to Illinois’ Day and Temporary Labor Services Act (820 ILCS 175/). The legislation drastically alters the legal landscape for staffing agencies and their clients.” Full Article
– Duane Morris LLP
MARYLAND
TOP TIP: Recreational Marijuana in Maryland
“As most Marylanders probably know, on July 1, 2023 recreational marijuana use will become legal in Maryland. We have some tips for employers in navigating this new territory. Under the new Maryland law (2022 MD H.B. 1), individuals 21 or older are permitted to use marijuana while off duty so long as they do not report to work under the influence (or, of course, smoke weed on the job).” Full Article
– Shawe Rosenthal LLP
CALIFORNIA
California Supreme Court Clarifies Employee Whistleblower Protections
“Can an employee still be protected as a whistleblower under California law if they are not the first to blow the same whistle? Per the California Supreme Court, the answer is yes: ‘[A] protected disclosure under [Labor Code] section 1102.5(b) encompasses reports or complaints of a violation made to an employer or agency even if the recipient already knows of the violation.” Full Article
– Venable LLP
- Published in Blog
28% of Employers Consider Covering FDA-approved Weight Loss Drugs
This article is from RISQ Consulting’s Zywave client portal, a resource available to all RISQ Consulting clients. Please contact your Benefits Consultant or Account Executive for more information or for help setting up your own login.
An annual report by pharmacy benefit consulting company Pharmaceutical Strategies Group (PSG) found that 43% of employers currently cover FDA-approved weight loss medications, while 28% are considering doing so in the next one to two years.
The report surveyed over 150 employers and health plans. Smaller and larger employers are nearly equally likely to be currently covering these medications (42% and 40%, respectively); however, small employers are less likely to be considering this coverage compared to larger employers (20% and 36%, respectively). Many employers are familiar with popular weight loss drugs, such as Wegovy and Mounjaro, and an increasing number of health plans are starting to cover FDA-approved weight loss drugs in response to employee desires.
Although the American Medical Association recognized obesity as a disease in 2013, employers are divided on whether it’s a lifestyle condition that should not be covered (24%) or a chronic condition that should be treated (21%), according to the PSG report. The top reason employers decided not to cover FDA-approved weight loss drugs was because they consider the medications to be lifestyle drugs. Other reasons employers excluded weight loss drugs include:
- The medications are too expensive, often costing more than $10,000 per individual per year.
- There are concerns that the medications may not lead to long-term weight loss.
- The medications would need to be taken for an indefinite duration.
Regarding employers who cover FDA-approved weight loss drugs, the report found that 22% of employers require employees to participate in a lifestyle modification program in order to be eligible for the drugs. For 20% of employers, participation in such programs is voluntary. Of employers who cover weight loss medications, only 16% currently measure the outcomes of these drugs. However, 36% plan on implementing such measures in the future. The report also found that 50% of employers who measured outcomes of weight loss medication were somewhat or very satisfied versus 20% who were dissatisfied.
Even though employers can put limitations on weight loss medications coverage, such as cost or duration of treatment limits, only 14% have done so.
Employer Takeaway
The popularity of weight loss drugs has reached a fever pitch in the United States, with more employees inquiring with employers about these medications. As a result, employers are faced with the difficult decision of whether to cover these expensive medications.
The PSG report shows that employer responses to the rise of weight loss medications differ. Understanding these trends can help employers decide what’s best for their organizations and their benefits plans.
Contact RISQ Consulting for more employee benefits resources.
- Published in Blog