The RISQ RECAP:
August 20th – August 25th, 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
Rail Whistleblowers Fired for Voicing Safety Concerns “Hours before a Norfolk Southern train derailed in Ohio and erupted in fire in February, a judge ruled a former railroad employee could proceed with a lawsuit claiming he had been harassed for years by managers who said he reported too many flaws in rail cars he inspected and had his job changed after reporting an injury. Richard Singleton’s case against Norfolk Southern was settled for an undisclosed amount after the judge said he had enough evidence to go to trial over whether he was disciplined for reporting safety violations that slowed trains passing through a Macon, Georgia, railyard.” Full Article – Insurance Journal
Severe Weather Set to Boost US Disaster Funding Needs, FEMA Says “Growing extreme-weather risks mean President Joe Biden’s expected request for billions in extra disaster-relief funding might not be enough for the next fiscal year, FEMA head Deanne Criswell said. Biden’s roughly $12 billion request would cover the spending year ending Sept. 30, the Federal Emergency Management Agency administrator said on CBS’s Face the Nation on Sunday. “As we’re continuing to see the increase in these severe weather events, that dollar amount may need to go up as we go into next fiscal year,” Criswell said. A wildfire in early August that destroyed the Hawaiian town of Lahaina and killed more than 100 people has focused attention on the rising cost of natural disasters.” Full Article – Insurance Journal
EMPLOYEE BENEFITS, HUMAN RESOURCES, & COMPLIANCE
Zooming in on the I-9: Five Things Employers Need to Know About Remote Immigration Verification “The new rule became effective August 1, 2023, and allows eligible employers to utilize an alternative process for I-9 verification. The alternative process allows continued remote inspection of Form I-9 documents by a live video call interaction.” Full Article – Akerman LLP
‘Quiet Quitting,’ is Getting Louder — 7 Ways Employers Can Bolster Employee Engagement and Address the Risks of ‘Loud Quitting’ “Employers have been concerned about ‘quiet quitting’ for some time now, looking for ways to foster employee engagement and productivity. And new data shows the importance of doing so because ‘quiet quitting’ has turned into ‘loud quitting.’” Full Article – Levenfeld Pearlstein, LLC
EEOC Inks First-Ever AI-Based Antidiscrimination Settlement “On August 9, the U.S. Equal Employment Opportunity Commission (‘EEOC’) and iTutorGroup, Inc. filed a joint notice of settlement and consent decree announcing the settlement of a discrimination in hiring lawsuit. This settlement marks the first instance in which the EEOC settled a lawsuit alleging unlawful discrimination stemming from the use of Artificial Intelligence (‘AI’) in recruiting software.” Full Article – Proskauer Rose LLP
Building a Proactive Mental Health Strategy in the Workplace “What are best practices businesses and HR professionals can use to foster and maintain the mental wellbeing of employees? The answer to this question may be evolving. The rise in post- pandemic employees experiencing some type of mental health issue has prompted companies to audit the efficacy of their current employer-sponsored resources and assess alternative strategies to improve employee wellbeing.” Full Article – Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.
Escaping the Office: Remote and Hybrid Harassment “As employers continue to embrace work-from- home options for employees, a slew of new concerns and potential liabilities continue to arise. One particularly persistent issue is that as the workplace has been expanded into each employee’s home, so has the potential for harassment. In fact, even though many employees no longer see and interact with colleagues in person on a daily basis, recent studies have found that instances of workplace harassment have increased over recent years.” Full Article – Venable LLP
Eleventh Circuit Holds Adverse Employment Action is Required in ADA Failure-to-Accommodate Claims “The U.S. Court of Appeals for the Eleventh Circuit, in Beasley v. O’Reilly Auto Parts, recently held that a claim for failure-to-accommodate under the Americans with Disability Act (ADA) must include an adverse employment action. That is, ‘discrimination in the form of a failure to reasonably accommodate is actionable under the ADA only if that failure negatively impacts the employee’s hiring, advancement, discharge, compensation, training, and other terms, conditions, and privileges of his employment.’” Full Article – Littler Mendelson P.C.
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 JERSEY
New Jersey Issues New Proposed Regulations on Temporary Workers Bill of Rights for Comment
“On 21 July 2023, the New Jersey Department of Labor and Workforce Development posted proposed regulations to implement the New Jersey Temporary Workers Bill of Rights on its website. Public comments on the proposal will be accepted until 20 October 2023.” Full Article
– Ford Harrison
PENNSYLVANIA
Confidentiality Agreements May be Enforced Against Employees Based on Continued Employment Even if There is No New Additional Consideration
“An employment agreement was executed five months after the employee was hired… Later, the employee was hired by a competitor and forwarded himself emails containing his employer’s confidential trade secret information before he left the employer. The employer sued, alleging that the employee had breached the confidentiality provision of his employment contract.” Full Article
– Finnegan, Henderson, Farabow, Garrett & Dunner LLP
ILLINOIS
Illinois Employers: Two Bills We Told You to Watch Are Now Law
“On August 4, Governor Pritzker signed HB 2862 into law, effective immediately, imposing new obligations on employers who use temporary employees, including providing information on their regular employees’ compensation to staffing companies and documenting and keeping records of training provided to the staffing company employee.” Full Article
– Baker & McKenzie LLP
NEW YORK
Remote Employees Nationwide May Trigger Special Rights in Group Terminations Under NY Law
“With just a handful of words, the NYS Department of Labor has turned upside down the purpose of the state’s WARN Act and imposed a plethora of new obligations on employers that make little practical sense.” Full Article
– Levy Employment Law, LLC
CALIFORNIA
California Modifies Employment Regulations Regarding Criminal History
“The Fair Chance Act (FCA) prohibits California employers with five or more employees from inquiring into, considering, distributing, or disseminating information related to an applicant’s criminal history until after the employer has made a conditional offer of employment.” Full Article
– Davis Wright Tremaine LLP
- Published in Blog
The RISQ RECAP:
August 14th – August 18th, 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
ChatGPT Fever Spreads to US Workplace, Sounding Alarm for Some “Companies worldwide are considering how to best make use of ChatGPT, a chatbot program that uses generative AI to hold conversations with users and answer myriad prompts. Security firms and companies have raised concerns, however, that it could result in intellectual property and strategy leaks. Anecdotal examples of people using ChatGPT to help with their day-to-day work include drafting emails, summarizing documents and doing preliminary research. Some 28% of respondents to the online poll on artificial intelligence (AI) between July 11 and 17 said they regularly use ChatGPT at work, while only 22% said their employers explicitly allowed such external tools.” Full Article – Insurance Journal
White House Holds First-Ever Summit on Ransomware Crisis Plaguing Public Schools “The White House on Tuesday held its first-ever cybersecurity “summit” on the ransomware attacks plaguing U.S. schools, in which criminal hackers have dumped online sensitive student data, including medical records, psychiatric evaluations and even sexual assault reports. ‘If we want to safeguard our children’s futures we must protect their personal data,” first lady Jill Biden, who is a teacher, told the gathering. “Every student deserves the opportunity to see a school counselor when they’re struggling and not worry that these conversations will be shared with the world.’ At least 48 districts have been hit by ransomware attacks this year – already three more than in all of 2022, according to the cybersecurity firm Emsisoft. All but 10 had data stolen, the firm reported.” Full Article – Insurance Journal
EMPLOYEE BENEFITS, HUMAN RESOURCES, & COMPLIANCE
Preparing for Health Plan Anti-Gag Clause Attestation “The first annual attestation is due December 31 of this year, and employers should take the following steps to prepare: [1] Ensure that contracts with health insurance TPAs and insurers do not contain prohibited provisions. [2] Confirm if your plan’s insurer or TPA is submitting the GCPCA on behalf of the plan.” Full Article – Warner Norcross & Judd LLP
Excessive Fee Litigation Spreads to Health Plans “Excessive fee litigation is no longer confined to defined contribution plans. In recent months, plan sponsors of self-funded health plans have filed three cases against Aetna, Elevance, Inc. (formerly known as Anthem, Inc.), and Blue Cross Blue Shield of Massachusetts in their capacities as third- party administrators (“TPAs”) under similar theories of liability.” Full Article – Davis Wright Tremaine LLP
States Continue Expansion of PBM Regulation “More than half the states have enacted PBM laws in the last three years — some of which specifically impact group health plans, such as Colorado, Oregon, New Mexico, Florida, North Carolina, and Oklahoma. [This article outlines] the most common provisions in these laws that could impact plans, using laws in Oklahoma, North Carolina and Florida as examples of state laws that have been adopted or are being considered by state legislatures.” Full Article – Groom Law Group
KFF Health Tracking Poll July 2023: The Public’s Views of New Prescription Weight Loss Drugs and Prescription Drug Costs “While there is overall interest in taking a prescription weight loss drug, interest… Most adults (80%) say that insurance companies should cover the cost of weight loss drugs for adults who are overweight or obese, while half of adults (53%) say insurance should cover the cost of these drugs for anyone who wants them to lose weight.” Full Article – Henry J. Kaiser Family Foundation
CMS Recommends Extension of Special Enrollment for Individuals Losing Medicaid and CHIP “There is no legal basis upon which CMS can rely in requesting this voluntary action by employers. In effect, CMS is asking employers to take this action because it believes that it is the ‘right thing to do,’ in light of the ‘complex transition’ … ‘and the importance of maintaining life-saving coverage for employees and their families.’ From an ERISA standpoint, an employer wanting to implement this CMS recommendation would need to amend its plan.” Full Article – The Wagner Law Group
Better Hide the Wine … Employer Considerations as the DOL Doubles Down on Mental Health Parity Compliance in New Proposed Regulations “Sponsors of self-insured plans may want to: [1] Confirm that their TPA will make the necessary changes to their plan’s NQTLs based on the potential heightened requirements [2] Confirm that their TPA will retain and evaluate the necessary data regarding NQTLs and network adequacy [3] Confirm that their TPA is preparing the required comparative analyses in a manner consistent with the proposed regulations. [4] Independently review any NQTL comparative analyses that have been or are prepared. [5] Negotiate contractual protection in the event the TPA’s NQTL comparative analyses are determined to be deficient or the TPA’s application of NQTLs is determined to be impermissible.” Full Article – Holland & Hart 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.
CALIFORNIA
Changes in California’s Regulations Regarding Criminal Records Approved
“The California Civil Rights Council previously issued draft revisions to the Fair Employment and Housing Act’s regulations governing inquiries into and consideration of a job applicant’s criminal history in making hiring decisions. On July 24, 2023, the Office of Administrative Law approved the Council’s proposed modifications to the regulations.” Full Article
– Littler Mendelson P.C.
NEW YORK
Amendments to New York WARN Act Now in Effect
“Amendments to the New York State Worker Adjustment and Retraining Notification Act (NY WARN Act) that the New York State Department of Labor (NY DOL) adopted in June 2023 are now in effect.” Full Article
– Davis Wright Tremaine LLP
NEW JERSEY
New Jersey Issues New Proposed Regulations on the Temporary Workers Bill of Rights for Comment
“On July 21, 2023, the New Jersey Department of Labor and Workforce Development posted on its website proposed regulations to implement the New Jersey Temporary Workers Bill of Rights. Public comments on the proposal will be accepted until October 20, 2023.” Full Article
– Ford Harrison LLP
COLORADO
Colorado Peculiarities
“The Colorado Protecting Opportunities and Worker’ Rights (POWR) Act was signed into law by Governor Jared Polis on June 6, 2023, and will go into effect on August 7, 2023. The legislation, which amends the Colorado Anti- Discrimination Act, is multifaceted.” Full Article
– Seyfarth Shaw LLP
ILLINOIS
Illinois AG Settles Investigation into Company’s Payment Practices for $950K
“On July 6, Illinois Attorney General Kwame Raoul announced a $950,000 settlement concerning the Illinois Wage Payments and Collection Act, marking the conclusion of an investigation into GrapeTree Medical Staffing (GrapeTree), a medical staffing company that operates in 12 states.” Full Article
– Troutman Pepper Hamilton Sanders LLP
- Published in Blog
The RISQ RECAP:
August 7th – August 11th, 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
Wind-Driven Hawaii Wildfire Destroying Maui Tourist Town “A wildfire erupted in Maui on Wednesday fueled by strong winds from Hurricane Dora, destroying homes and businesses in a tourist town and forcing some residents to jump into the ocean to escape the flames. The Associated Press is reporting the fire was widespread in Lahaina Town, including on Front Street, a popular shopping and dining area, County of Maui spokesperson Mahina Martin said by phone early Wednesday. Traffic has been very heavy as people try to evacuate the area, and officials asked people who weren’t in an evacuation area to shelter in place to avoid adding to the traffic, she said. The American Property Casualty Insurance Association responded with insurance tips and a statement. “Insurers are ready to help Maui homeowners, renters and businesses impacted by these wildfires,” said Karen Collins, APCIA vice president, property & environmental. ‘This first step is contacting your insurer to start your claim. This is what you have insurance for. Your company or agent will help you navigate this process and get you what you need each step of the way.’” Full Article – Insurance Journal
Bursting Ice Dam in Alaska Highlights Risks of Glacial Flooding “The gray, two-story home with white trim toppled and slid, crashing into the river below as rushing waters carried off a bobbing chunk of its roof. Next door, a condo building teetered on the edge of the bank, its foundation already having fallen away as erosion undercut it. The destruction came over the weekend as a glacial dam burst in Alaska’s capital, swelling the levels of the Mendenhall River to an unprecedented degree. The bursting of such snow-and-ice dams is a phenomenon called a jökuhlaup, and while it’s relatively little-known in the U.S., researchers say such glacial floods could threaten about 15 million people around the world. ‘We sat down there and were just watching it, and all of a sudden trees started to fall in,” Amanda Arra, whose house continued hanging precariously over the river bank Monday, told the Juneau Empire. “And that’s when I started to get concerned. Tree after tree after tree.’ The flooding in Juneau came from a side basin of the awe-inspiring Mendenhall Glacier, which acts as a dam for the rain and melted snow that collect in the basin during the spring and summer.” Full Article – Insurance Journal
EMPLOYEE BENEFITS, HUMAN RESOURCES, & COMPLIANCE
OSHA’s New Electronic Reporting Rule Creates New Obligations for Some Employers “Beginning January 1, 2024, more employers will be required to electronically submit detailed information about their workplace injuries and illnesses to the Occupational Safety and Health Administration (OSHA) every year.” Full Article – Phelps Dunbar LLP
Pre-Employment Background Checks: Considerations for Employers When Screening Prospective Employees “Employers commonly conduct background checks on prospective employees in various areas that they may think relevant when deciding whether to hire an individual for a job. Yet, federal, state, and local laws are increasingly regulating and limiting pre- employment background checks to protect prospective employees from perceived unfair or illegal treatment.” Full Article – Venable LLP
When Hot is Too Hot: Workplace Safety Considerations for Employers as the Temperatures Climb “As large sections of the United States continue to experience soaring temperatures for extended periods, employers, especially those with workers in industries prone to heat-related illnesses, should be mindful of certain workplace safety obligations under federal and applicable state law.” Full Article – K & L Gates LLP
Employers — The NLRB Has Just Made Many Common Work Rules Unlawful “In an unsurprising decision applicable to both unionized and non-union employers, the National Labor Relations Board changed its standard for assessing whether seemingly neutral work rules violate the National Labor Relations Act (NLRA). The Board’s decision in Stericycle, Inc. applies to challenges to an employer’s maintenance of work rules that do not expressly apply to employees’ protected activity.” Full Article – Shawe Rosenthal LLP
House Committee Debates Changes to Independent Contractor Rule “During a recent hearing, the U.S. House Education and the Workforce Committee debated the pros and cons of changing the so-called ‘independent contractor’ rule. This rule dictates how to properly classify workers as employees or independent contractors, a distinction that has grown in importance with the steep increase in the independent workforce in recent years.” Full Article – Hall Benefits Law LLC
USCIS and DHS Announce a Revised Form I-9 and a New Option to Remotely Examine Employees’ Documents “U.S. Citizenship and Immigration Services (‘USCIS’) has announced that a revised version of Form I-9, Employment Eligibility Verification will be available starting August 1, 2023. The current version can be used through October 31, 2023; however, as of November 1, 2023, only the revised version may be used.” Full Article – Womble Bond Dickinson 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.
CALIFORNIA
Changes in California’s Regulations Regarding Criminal Records Approved
“The California Civil Rights Council previously issued draft revisions to the Fair Employment and Housing Act’s regulations governing inquiries into and consideration of a job applicant’s criminal history in making hiring decisions. On July 24, 2023, the Office of Administrative Law approved the Council’s proposed modifications to the regulations.” Full Article
– Littler Mendelson P.C.
NEW YORK
Amendments to New York WARN Act Now in Effect
“Amendments to the New York State Worker Adjustment and Retraining Notification Act (NY WARN Act) that the New York State Department of Labor (NY DOL) adopted in June 2023 are now in effect.” Full Article
– Davis Wright Tremaine LLP
NEW JERSEY
New Jersey Issues New Proposed Regulations on the Temporary Workers Bill of Rights for Comment
“On July 21, 2023, the New Jersey Department of Labor and Workforce Development posted on its website proposed regulations to implement the New Jersey Temporary Workers Bill of Rights. Public comments on the proposal will be accepted until October 20, 2023.” Full Article
– Ford Harrison LLP
COLORADO
Colorado Peculiarities
“The Colorado Protecting Opportunities and Worker’ Rights (POWR) Act was signed into law by Governor Jared Polis on June 6, 2023, and will go into effect on August 7, 2023. The legislation, which amends the Colorado Anti- Discrimination Act, is multifaceted.” Full Article
– Seyfarth Shaw LLP
ILLINOIS
Illinois AG Settles Investigation into Company’s Payment Practices for $950K
“On July 6, Illinois Attorney General Kwame Raoul announced a $950,000 settlement concerning the Illinois Wage Payments and Collection Act, marking the conclusion of an investigation into GrapeTree Medical Staffing (GrapeTree), a medical staffing company that operates in 12 states.” Full Article
– Troutman Pepper Hamilton Sanders LLP
- Published in Blog
The RISQ RECAP:
July 31st – August 4th, 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
Amwins Report Keys on Disruption in Cannabis Space “The disruption in the cannabis space is having an impact on that insurance specialty from coast to coast, a new report out from Amwins shows. The report, Amwins State of The Market Report 2023: A Focus on the Cannabis Market, points to “notable transformations and shifts” that are causing insurance providers to refine offerings “to meet the unique needs and challenges” that are developing as cannabis sales in the Western U.S. slow and new markets rapidly come online in the East.” Full Article – Insurance Journal
How to Efficiently Manage Variable Lines Brokers “At its fundamental level, compliance is about making sure the people you have selling products are authorized to sell them, and are doing it right away AND the right way. Some compliance efforts are likely already built into your daily activities, like recruiting brokers. But in your efforts to only spend time and money on the right people, are you actually spending unnecessary dollars without truly reducing your compliance risk?” Full Article – Insurance Journal
EMPLOYEE BENEFITS, HUMAN RESOURCES, & COMPLIANCE
Employer Considerations Concerning the HIPAA Special Enrollment Rule Temporary Extension “CMS announced a temporary special enrollment period on HealthCare.gov, through which individuals who lose Medicaid or CHIP coverage and come to HealthCare.gov anytime between March 31, 2023 and July 31, 2024 will be able to enroll.” Full Article – Kilpatrick Townsend & Stockton LLP
Employer’s Lack of COBRA Diligence Was Not Intentional Infliction of Emotional Distress “Courts have repeatedly held that damages for COBRA violations are generally limited to unreimbursed medical expenses less applicable premiums and deductibles. Neither COBRA nor ERISA provides for extra-contractual or consequential damages such as recovery for emotional distress.” Full Article – Thomson Reuters / EBIA
Health Care Organizations Support Government’s Effort on Preventive Services “A diverse set of advocates, academics, organizations, and participants in the health care system filed amicus briefs in support of the government and urged the Fifth Circuit to reverse the lower court’s decision. Brief overviews of the amicus briefs are provided in this article.” Full Article – Health Affairs Forefront
Proposed Mental Health Parity Regulations Arrive: Key Changes for Plan Sponsors “As proposed, a plan will need to assess the expected dollar amount of all plan payments for medical/surgical benefits in the classification to determine whether the NQTL applies to ‘substantially all’ medical/surgical benefits, and then identify the most common or frequent variation of the NQTL for purposes of determining whether it is ‘predominant.’” Full Article – Proskauer Rose LLP
Third Circuit Affirms Judgement on ERISA Retaliation Claim “The court found that the evidence supported the district court’s finding that the Company’s firing of Plaintiff was motivated by Plaintiff’s past and anticipated future use of ERISA health benefits. The Company’s healthcare invoices had Plaintiff’s hip replacement surgery costs highlighted, and though anonymized, it was not difficult for someone in the Company to identify Plaintiff and his expenses.” Full Article – Roberts Disability Law P.C.
IRS Issues Guidance on Expenses Related to COVID-19 and Preventive Care “For plan years ending after December 31, 2024, a high-deductible health plan will no longer be permitted to provide coverage for COVID-19 testing and treatment under the HDHP before the minimum HDHP deductible is met without jeopardizing a participant’s HSA eligibility. Notice 2023-37 clarified that the preventive care safe harbor does not include screening (i.e., testing) for COVID-19, effective as of June 23, 2023. This clarification will not be relevant for HDHPs/HSAs until the first plan year ending after December 31, 2024.” Full Article – Miller Johnson Snell & Cummisky P.L.C
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
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
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
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
The RISQ RECAP:
June 26th – June 30th, 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
How the Insurance Universe Deals With Evolving Risks and Dispositions “Insurers have come a long way on climate change, but they have a long way to get where we need to be to deal with a more hazardous planet. That was the assessment from Washington Insurance Commissioner Mike Kreidler, a regulator who has spent three decades pushing insurers to disclose more about their investments and activities surrounding fossil fuels and to do more to address climate change.” Full Article – Insurance Journal
Washington Proposed Rule Update Beefs up Refinery Worker Protections “The Washington State Department of Labor & Industries is proposing updated workplace safety rules for petroleum refineries designed to prevent catastrophic events like the 2010 explosion that killed seven workers at the former Tesoro refinery in Anacortes. The proposed update addresses what’s known as process safety management, which describes the way workplaces handle dangerous chemicals and ensures that processes, people, and equipment all work together to reduce risk. The proposal focuses specifically on petroleum refineries.” Full Article – Insurance Journal
EMPLOYEE BENEFITS, HUMAN RESOURCES, & COMPLIANCE
Whose Text is it, Anyway? Maybe Yours! “Must an employer preserve business-related text messages between employees using their personal cell phones? Can a judge punish an employer for failing to do so?” Full Article – Constangy, Brooks, Smith & Prophete LLP
How Long Does the IRS Have to Challenge an ERC Refund? “For employers who have either filed for or have received payment for Employee Retention Credit (ERC) claims, the significant surge in IRS examinations of ERC claims is similar to the shark in the movie Jaws. You know he is out there, but you don’t know where he will bite and when.” Full Article – Meadows, Collier, Reed, Cousins, Crouch & Ungerman, LLP
Ready, Set, Go — It’s Time for the PWFA “It’s time for the Pregnant Workers Fairness Act (PWFA). We’ve been warning you that the PWFA is coming and in less than a week, on June 27, the PWFA goes into effect. We’re still waiting on the EEOC’s proposed regulations but that should not stop you from complying, because on June 27 employees may begin filing EEOC charges for events occurring on or after that day.” Full Article – Bradley Arant Boult Cummings LLP
Retailers Must Ensure Compliance with Federal, State Child Labor Regulations “The end of the school year and the beginning of summer will bring a surge of school-age workers into the workplace as government scrutiny over employment of young workers is increasing. The Department of Labor (DOL) and Department of Health and Human Services (HHS) have a Memorandum of Agreement to combat unlawful child labor practices.” Full Article – Jackson Lewis P.C.
When Tunes Turn Toxic: Ninth Circuit Recognizes the Impact of Offensive Music in the Workplace “In recent years, listening to music while working has become routine and prevalent in many workplaces, with supporters of this trend claiming it improves morale, increases productivity, promotes team bonding and reduces stress. With the advent of on- demand music streaming on mobile devices, employees now have increased access to an unlimited range of music genres, allowing them to play any song they prefer at the press of a button.” Full Article – Phelps Dunbar LLP
If At First You Don’t Succeed: NLRB Readopts Highly Controversial “Independent Contractor” Standard “Last week, the National Labor Relations Board (NLRB or “Board”) decided in The Atlanta Opera, Inc., 372 NLRB No. 95 (2023) to make it easier to classify workers as “employees,” who are covered by the National Labor Relations Act (NLRA), as opposed to “independent contractors,” who are not. The standard set forth by the Board mirrors the one the NLRB drew up a few years ago, which was subject to court criticism and short-lived.” Full Article – Hunton Andrews Kurth
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.
ILLINOIS
Employers Beware: Slew of New Illinois Employment Laws Passed and Poised to Take Effect
“For this entire 2023-2024 Illinois legislative term, we have been closely watching dozens of proposed employment bills make their way through the Illinois Legislature. In the weeks of May 8 and 15, 2023, seven of these bills passed both houses and await Governor J.B. Pritzker’s signature, which we have no doubt will occur.” Full Article
– Ford Harrison
NEW YORK
NEW YORK New York Inching Toward Ban of Employee Non-Compete Agreements
“The New York State Assembly has joined the State Senate in passing legislation to prohibit non-compete clauses in employment contracts. The bill now heads to the Governor and, if signed into law, would void any agreement containing a prohibited non-compete restraint and subject employers to potential litigation and liquidated damages.” Full Article
– Seyfarth Shaw LLP
Expansive NJ WARN Act Amendments on Mass Layoffs — Here to Stay
“Employers should be aware that significant changes to the Millville Dallas Airmotive Plant Job Loss Notification Act (‘NJ WARN’) took effect on April 10, 2023. The amendments broaden the definition of a mass layoff, create a mandatory severance pay requirement for employers, and increase notice requirements and related penalties.” Full Article
– Montgomery McCracken Walker & Rhoads LLP
NEW JERSEY
Size Matters: NYC’s New Height and Weight Legislation Reshapes Workplace Protections
“On May 26, 2023, Mayor Eric Adams signed into law a bill that expands New York City’s anti-discrimination laws, adding height and weight as protected characteristics under the New York City Human Rights Law.” Full Article
– Venable LLP
MINNESOTA
Minnesota Governor Signs Ban on Non-Compete Agreements, Statewide Paid Sick Leave, and Nursing Mothers Accommodations into Law
“The labor funding and economic development law significantly changes various Minnesota employment-related laws, including a ban on non- compete agreements entered into on or after July 1, 2023, mandatory paid sick leave, pregnancy and nursing mothers accommodations, and worker safety protections.” Full Article
– Koley Jessen
- Published in Blog
The RISQ RECAP:
June 19th – June 23rd, 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
Young Plaintiffs’ Attorney Closes Montana Climate Change Trial with Call for Action “An attorney for 16 young plaintiffs urged a judge Tuesday to strike down as unconstitutional a Montana law that prohibits state agencies from considering the environmental effects when it weighs permits allowing the release of greenhouse gases. Attorney Nate Bellinger made the plea in his closing argument at the end of a seven-day trial. Plaintiffs say state officials violated their right to a clean and healthful environment, part of the Montana Constitution, by allowing companies to build power plants and expand coal mines, among other things.” Full Article – Insurance Journal
McKinsey Creates New Ethics Role After $641 Million Opioid Fallout “McKinsey & Co. is beefing up its ethics department after a series of high-profile controversies, including helping Purdue Pharma LP “turbocharge” opioid sales. The management consulting giant is hiring for a newly created position with its global “ethics allegations management team.” The “specialist” will be responsible for “intake and triage of matters” that could present a risk to the firm. McKinsey is also looking to replace its ethics director, a position that helps “ensure we uphold a distinctive culture of integrity and ethical behavior across our firm,” according to the job description, with a salary that ranges from $235,000 to $314,000.” Full Article – Insurance Journal
EMPLOYEE BENEFITS, HUMAN RESOURCES, & COMPLIANCE
The Undiscovered Country, Sort Of: Washington Employers Must Begin Collecting CARES Employee Premiums Starting July 1 “The new statute establishes a mandatory state-run insurance fund to help Washington residents pay for certain long-term care services, such as assisted living facilities, after retirement.” Full Article – Fisher & Phillips LLP
North Carolina Court Certifies Nationwide Class in Healthcare Fee Challenge “With the increased scrutiny on healthcare plan practices and the uptick in ERISA healthcare litigation in recent years, plan participants and fiduciaries are increasingly challenging fees and costs associated with their healthcare plans. [This] decision is a good example of this trend.” Full Article – Kantor & Kantor LLP
Circuit Considers Whether ERISA Preempts State PBM Regulation “The 10th Circuit’s coming decision in Mulready could signal whether federal courts will continue to rethink the boundaries of ERISA preemption. At oral arguments held on May 16, 2023, the 10th Circuit panel appeared skeptical of Oklahoma’s comparison of this case to Rutledge, given the significantly farther reach of the Oklahoma law into plan design and administration.” Full Article – Slevin & Hart, P.C.
Schlichter Exclusive: Does a New Wave of Fiduciary Litigation Loom? “ERISA litigation lawyer Jerry Schlichter has taken to social media to hunt for potential employee plaintiffs for a new brand of fiduciary litigation…. Failing to comply with the requirements of the CAA leaves employers at risk of fines and class-action lawsuits. But most employers are still in the dark, believing their broker or TPA will handle compliance on their behalf or that it’s simply ‘no big deal.” Full Article – American Retirement Association
Proposed Legislation Offers Guidance on Filing Requirements Under Affordable Care Act “The Employer Reporting Improvement Act (HR 3801) would change tax identification number (TIN) requirements, as well as set definite response times and limitations periods for IRS enforcement of ACA filing requirements. The Paperwork Burden Reduction Act (HR 3797) would extend the use of the alternative furnishing method to all Forms 1095-C instead of just those that report only enrollment in Part III of the Form 1095-C or Forms 1095-B.” Full Article – Ernst & Young LLP
The ERISA Edit: ACA Preventive Services Mandate Remains in Effect Through Appeal “The government stipulated that it would not seek penalties or take enforcement action against Braidwood for its refusal to cover the PSTF- recommended preventive care at issue (HIV- related preexposure prophylaxis (PrEP) drugs) through the time the Fifth Circuit issues a decision on the merits. The government also agreed that, until the Fifth Circuit issues its decision, it would not take any enforcement action against any Texas-based insurance issuer for offering to the individual plaintiffs a plan that excludes PrEP drugs or against the individual plaintiffs themselves for purchasing such a plan.” Full Article – Miller & Chevalier Chartered
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.
ILLINOIS
Illinois Poised to Become Latest State to Mandate Pay Transparency
“On May 17, 2023, House Bill 3129 passed both houses of the Illinois legislature. The bill is expected to be signed into law by Gov. J.B. Pritzker and go into effect on Jan. 1, 2025. Illinois will then join a growing number of states that have enacted or are currently considering pay transparency laws that are intended to address discrimination and eliminate pay disparity.” Full Article
– Barnes & Thornburg LLP
OREGON
Oregon to Assess Highest-in-Nation OSHA Penalties of up to $250,000 Per Violation
“Effective May 24, 2023, Oregon passed a new law (SB 592A) turning its workplace safety penalties on their head, taking Oregon from the state with some of the lowest OSHA penalties to the highest in the country.” Full Article
– Seyfarth Shaw LLP
WASHINGTON
New Growth of State and Local Paid Leave Developments in the Evergreen State
“Washington Paid Family and Medical Leave Act has been amended to, among other changes, provide employers with access to claim information that may be helpful in administering concurrent leave and supplemental benefit programs.” Full Article
– Littler Mendelson P.C.
MINNESOTA
Minnesota Enacts Omnibus Jobs Bill With Major Changes for Minnesota Employers
“The Bill has significant implications for employers with employees in Minnesota and includes numerous changes to Minnesota state law, including a sweeping ban on non-compete agreements; a ban on mandatory employer
-sponsored meetings; newly mandated statewide paid sick leave; and expanded protections for parental leave and pregnant employees, among others.” Full Article
– Proskauer Rose LLP
NEW YORK
New York City Joins Growing Effort to Ban Body Size Discrimination
“This new law, which goes into effect Nov. 22, adds weight and height as protected classes under the city’s Human Rights Law. This law is part of a growing national movement to curtail body size discrimination at work.” Full Article
– Phelps Dunbar LLP
- Published in Blog