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Tag: compliance

The RISQ RECAP:

January 30th – February 3rd, 2023

Thursday, 02 February 2023 by RISQ Consulting

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

 

Tesla Competing With ‘GEICOs of the World’ to Lower Insurance Prices

“While executives of Tesla said the car maker’s insurance business isn’t yet big enough to warrant separate financial disclosure of its results, Chief Executive Officer Elon Musk reiterated a benefit for Tesla owners: cheaper premiums. Speaking on an earnings conference call Wednesday, Musk said that “just by Tesla operating insurance for our cars at a competitive rate, that makes the other car insurance companies offer better rates for Teslas.” In other words, Tesla being in the insurance business “has a bigger effect than you think” because it lowers the cost of insurance even for Tesla drivers who don’t buy insurance coverage from Tesla. That’s because “now the GEICOs of the world have to compete with Tesla and cannot charge outrageous insurance for Teslas,” Musk asserted.”  Full Article 

– Insurance Journal


EMPLOYEE BENEFITS, HUMAN RESOURCES, & COMPLIANCE

 

Workplace Wellness Trends to Watch in 2023

“Hybrid work will be here to stay, along with the rise of the four-day work week.. Mental well-being has taken center stage, the labor movement will grow, and well-being is considered a shared responsibility.”  Full Article

– HR Daily Advisor

Employer Health Plans Face Competition for High Quality Doctors

“Employer-sponsored commercial plans, which cover about 157 million people in the US, typically pay higher rates for health-care services than Medicare’s fee-for-service system, which pays for each individual service. But Medicare Advantage, a private plan alternative to traditional Medicare, is rapidly gaining popularity, covering more than 28 million people in 2022.”  Full Article

– Bloomberg Law

Health Savings Account Balances, Contributions, Distributions, and Other Vital Statistics, 2021

“Despite a rebound in out-of-pocket health care spending in 2021, HSA balances increased on average over the course of the year. Accounts that received an employer contribution saw higher total contributions and were more likely to invest. Most accountholders took a distribution in 2021. Age and tenure play a major role in HSA utilization.”  Full Article

– Employee Benefit Research Institute

What the Inflation Reduction Act’s Reforms to Medicare Part D Mean for Prescription Drug Prices

“Much has been written about the act’s individual provisions, but little has been said about how they fit together as a whole. In fact, these seemingly standalone reforms act together to reshape access and affordability of branded prescription drugs under Medicare Part D, while also leaving the door open to further reforms.”  Full Article

– Health Affairs Forefront

Reductions in Force: COBRA and Internal Revenue Code Considerations

“If an employer intends for the COBRA continuation period to run concurrently with the subsidized coverage from the date of the qualifying event, the severance documentation should make this clear, and COBRA notices should be sent accordingly. Otherwise, the employee may mistakenly believe and argue that the COBRA continuation coverage begins when the subsidy ends.”  Full Article

– Walters Kluwer

Court Holds the Health Insurer’s TPA Activities Are Subject to ACA Section 1557

“The court held that under the plain language of Section 1557, the insurer’s TPA activities constitute the operation of a health program or activity. The insurer argued that under the 2020 regulations, Section 1557 does not apply to its TPA activities because those actions are not ‘healthcare activities’ and because it does not receive any federal financial assistance for them, but the court rejected those arguments, explaining that the 2020 regulations are clearly contrary to the statute and appear to be arbitrary, capricious, and contrary to law.”  Full Article

– Thomson Reuters/ EBIA

 


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

Signed, Sealed, Delivered: New Jersey Implements Long-Delayed Landmark WARN law

“On January 10, 2023, Governor Philip D. Murphy signed into law S3162/ A4768, which makes the 2020 amendments to NJ WARN effective 90 days from his signature, irrespective of whether a State of Emergency still exists.”  Full Article

– Littler Mendelson P.C.

CALIFORNIA

Challenges and Opportunities in California’s New Pay Transparency Rules

“California’s new pay transparency rules generally fall into three disclosure categories: job-posting requirements, pay scale requests and pay data disclosures. For new hire job postings, employers with 15 or more employees must disclose the reasonably expected pay scale, both for salaried and hourly employees.”  Full Article

– Duane Morris LLP

NEW YORK

New York Requires Employers to Provide Electronic Versions of Mandatory Workplace Postings

“Before the amendment, the law required that certain legal notices be posted conspicuously in the workplace. Now, employers must also make digital versions of the physical notices available, either on the employer’s website or via email.”  Full Article

– Cooley LLP

MARYLAND

Maryland Expands the Scope of Conduct that Constitutes Sexual Harassment in the Workplace

“Recently, Maryland Senate Bill 450 (SB 450) went into effect, revising the definition of sexual harassment in the workplace by changing the standard of sexual harassment from “severe or pervasive” conduct to the “totality of the circumstances” in sexual harassment cases.”  Full Article

– Shulman Rogers

ILLINOIS

Illinois Legislature Passes Paid Leave for All Workers Act

“On January 10, 2023, the Illinois Legislature passed the Paid Leave for All Workers Act (“Act”), which Illinois Governor J.B. Pritzker has also announced his intention to sign. The Act will take effect on January 1, 2024, and it provides nearly all Illinois workers with a minimum of forty (40) hours, or a pro-rated number of hours, of paid leave during a designated 12-month period.”  Full Article

– Thompson Hine LLP

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HR Leaders Compliance Summit
March 7th-9th, 2023

Tuesday, 31 January 2023 by RISQ Consulting

March 7th – 9t, 2022 

Description |  Acrisure and Filice are teaming up to bring industry-leading experts together for a Compliance Conference. Over the course of this summit, you will hear from numerous subject matter experts that specialize in various HR-related disciplines covering topics ranging from labor regulation updates, employee benefits trends, and human capital management best practices…all made infinitely more complex given today’s unprecedented times.  Everyone will be welcome to attend one or all of the sessions.

Keynote Speakers |  Robin Arzón (March 7) & Michael Abrashoff (March 8)

Here is the registration link | Register HERE  Please use the registration code: NBG This code will fully waive the event admission cost!

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The RISQ RECAP:

January 23rd – January 27th, 2023

Thursday, 26 January 2023 by RISQ Consulting

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

 

Takeaways from Our Conversation on Cannabis Price Volatility in 2023

“Volatile cannabis flower prices in states with developed cannabis programs will impact insurance buying, while capacity will still be a challenge in 2023. Those were among the forecasts for the year from three subject matter experts. For our latest podcast we interviewed Roy Bingham, CEO of cannabis data provider BDSA, Jay Virdi, chief sales officer for Hub International’s cannabis specialty practice, and Charles Pyfrom, chief marketing officer at CannGen Insurance Services. Following are takeaways from that conversation. “I think the continuation of the price compression that we’ve seen in the last 12 months is going to be felt by everybody,” Bingham said. He said average retail prices in the big, mature markets in the Western U.S., such as Arizona, California, Colorado, Nevada, and Oregon declined 10% or more. “It’s all been driven by price reductions, and those markets, of course, are still about two-thirds of the national scene,” he said. “Prices are just decreasing at a rate, uh, that is greater than the incremental gain in units being sold.””  Full Article 

– Insurance Journal


EMPLOYEE BENEFITS, HUMAN RESOURCES, & COMPLIANCE

 

What’s in Store for the Next Four Years? The EEOC’s Strategic Plan

“In its draft EEOC Strategic Plan 2022- 2026 (released November 4, 2022), the agency sets forth 3 overarching goals and 15 identified performance measures for the purpose of achieving those goals.”  Full Article

– Akerman LLP

Wage Transparency Laws Create Labor Cert. Hurdles

“Varying in scope, these laws will likely change the permanent labor certification, or PERM, process required for certain employer-sponsored foreign nationals and will require employers to consider their job advertisement strategy for PERM positions nationally.”  Full Article

– Morgan Lewis & Bockius LLP

An Employee “on Thin Ice” Cannot Insulate Herself with the FMLA

“The Family and Medical Leave Act protects the use of qualifying leave for an employee’s (or their family member’s) serious health condition – but does not insulate the employee from all attendance and performance issues, as the U.S. Court of Appeals for the Eighth Circuit recently reminded employers.”  Full Article

– Shawe Rosenthal LLP

Oh Baby, Baby: New Laws Protecting Pregnant and Breastfeeding Employees

“Effective December 29, 2022, the Providing Urgent Maternal Protections for Nursing Mothers Act, also known as The PUMP Act, expanded protections for breastfeeding mothers and, effective June 2023, the Pregnant Workers Fairness Act (PWFA) will provide new protections for pregnant employees.”  Full Article

– Bradley Arant Boult Cummings LLP

A Deeper Dive into FTC’s Proposed Non-Compete Rule

“The Federal Trade Commission (FTC) proposed a new rule that, if made final, would (at least on its face) effectively prohibit non-compete agreements other than in very limited circumstances. The proposed rule, which would supersede all contrary state laws, is remarkable for its sweeping definition of “non-compete clauses” that fall within the ban.”  Full Article

– Jackson Lewis P.C

From Snowmageddon to Snowpocalypse: OSHA Highlights Potential Winter Weather Hazards

“Employers must remember that weather-based hazards exist not only in the heat and humidity of summer, but also in the dead of winter. OSHA has reminded employers of their duties to plan, equip, and train their workers for jobs impacted by winter weather in an effort to “[p]revent injuries, illnesses, and fatalities during winter storms.”  Full Article

– Seyfarth Shaw 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 JERSEY

Signed, Sealed, Delivered: New Jersey Implements Long-Delayed Landmark WARN law

“On January 10, 2023, Governor Philip D. Murphy signed into law S3162/ A4768, which makes the 2020 amendments to NJ WARN effective 90 days from his signature, irrespective of whether a State of Emergency still exists.”  Full Article

– Littler Mendelson P.C.

CALIFORNIA

Challenges and Opportunities in California’s New Pay Transparency Rules

“California’s new pay transparency rules generally fall into three disclosure categories: job-posting requirements, pay scale requests and pay data disclosures. For new hire job postings, employers with 15 or more employees must disclose the reasonably expected pay scale, both for salaried and hourly employees.”  Full Article

– Duane Morris LLP

NEW YORK

New York Requires Employers to Provide Electronic Versions of Mandatory Workplace Postings

“Before the amendment, the law required that certain legal notices be posted conspicuously in the workplace. Now, employers must also make digital versions of the physical notices available, either on the employer’s website or via email.”  Full Article

– Cooley LLP

MARYLAND

Maryland Expands the Scope of Conduct that Constitutes Sexual Harassment in the Workplace

“Recently, Maryland Senate Bill 450 (SB 450) went into effect, revising the definition of sexual harassment in the workplace by changing the standard of sexual harassment from “severe or pervasive” conduct to the “totality of the circumstances” in sexual harassment cases.”  Full Article

– Shulman Rogers

ILLINOIS

Illinois Legislature Passes Paid Leave for All Workers Act

“On January 10, 2023, the Illinois Legislature passed the Paid Leave for All Workers Act (“Act”), which Illinois Governor J.B. Pritzker has also announced his intention to sign. The Act will take effect on January 1, 2024, and it provides nearly all Illinois workers with a minimum of forty (40) hours, or a pro-rated number of hours, of paid leave during a designated 12-month period.”  Full Article

– Thompson Hine LLP

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The RISQ RECAP:

January 16th – January 20th, 2023

Thursday, 19 January 2023 by RISQ Consulting

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

 

Fewer Companies Are Paying Ransoms to Hackers, Researchers Say

“Fewer companies that are infected with ransomware are coughing up extortion payments demanded by hackers, according to new research from Chainalysis Inc. In findings published on Thursday, the blockchain forensics firm estimated that ransom payments — which are almost always paid in cryptocurrency — fell to $456.8 million in 2022 from $765.6 million in 2021, a 40% drop. “That doesn’t mean attacks are down, or at least not as much as the drastic dropoff in payments would suggest,” according to the report. “Instead, we believe that much of the decline is due to victim organizations increasingly refusing to pay ransomware attackers.””  Full Article 

– Insurance Journal


EMPLOYEE BENEFITS, HUMAN RESOURCES, & COMPLIANCE

 

Paid Leave for Any Reason Coming to Illinois

“On January 10, 2023, the Illinois legislature passed the Paid Leave for All Workers (PLFAW) Act, making Illinois just the third state in the country (after Maine and Nevada) to require private employers to provide earned paid leave to employees to be used for any reason.”  Full Article

– Ogletree Deakins

Reviewing the Welfare Plan Rules Under the Consolidated Appropriations Act, 2021

“New requirements for maintaining an interactive tool for providing health plan participants with provider-specific information about the amount they will need to pay for services (and other useful information) apply, beginning in 2023.”  Full Article

– Ballard Spahr LLP

Fast-Approaching Deadlines for ACA Reporting and Similar State Reporting

“Generally, reporting that relates to health coverage in one calendar year is due early in the following calendar year. With respect to health coverage in 2022, the ACA deadlines range from February 28 to March 31, 2023, and the state deadlines range from January 31, 2023 to April 30, 2023.”  Full Article

– Venable LLP

Looming Deadline for Pharmacy Reporting

“CMS FAQs indicate that plan sponsors can delegate CAA reporting to their vendors, and reporting does not need to be consolidated with one entity. Note that self-funded plans will still retain liability for reporting, but in the case of fully insured plans, liability can be delegated to issuers in writing.”  Full Article

– Winston & Strawn LLP

Year-End Appropriations Legislation Contains Group Health Plan Provisions

“The legislation provides funding to assist states in their enforcement of the CAA, 2021 requirement that health plans and insurers prepare comparative analyses of any nonquantitative treatment limitations on mental health or substance use disorder coverage. The legislation also eliminates the right of self-insured non-federal government health plans to opt out of [MHPAEA] compliance.”  Full Article

– Thomson Reuters/EBIA

We are FAMLI … Colorado Employers Must Withhold  Premiums NOW for 2024 FAMLI Benefits

“Premiums are set to 0.9% of the employee’s wages, with 0.45% paid by the employer and 0.45% paid by the employee. Colorado businesses must begin collecting premiums starting on January 1, 2023. If you are subject to the FAMLI Act and are about to run your first payroll for 2023, you must coordinate with your payroll processor to ensure deductions begin immediately.”  Full Article

– Holland & Hart

 


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

AB 2449’s Mandate for Implementation of Receiving and Resolving Americans with Disabilities Act (ADA) Requests for Reasonable Accommodations

“In addition to changes to rules for virtual attendance of public meetings under the Ralph M. Brown Act (Brown Act), AB 2449 also imposed a mandate on local legislative bodies within California to adopt procedures for receiving and swiftly resolving requests for reasonable accommodations for individuals with disabilities, consistent with federal law.”  Full Article

– Reed Smith

MICHIGAN

Michigan Minimum Wage and Paid Leave Update: Agency Guidance and the Mothering Justice Appeal

“In Mothering Justice, the Court of Claims held that the state legislature violated the Michigan Constitution in 2018 when it enacted, and within the same legislative session amended, two ballot initiatives, one to raise the minimum wage and the other to require employers to provide paid sick leave.”  Full Article

– Jackson Lewis P.C.

WASHINGTON

Washington State Issues Final Policy on Pay Transparency in Job Postings, Setting Most Stringent Requirements in the Country

“The law provides that employers must disclose in each posting for each job opening: (1) the wage scale or salary range, and (2) a general description of all benefits and other compensation to be offered.”  Full Article

– Littler Mendelson

PENNSYLVANIA

Philadelphia Commuter Transit Benefits Coming Son

“Effective December 31, 2022, the Philadelphia, Pennsylvania Employer Commuter Transit Benefit Program requires covered employers to make available for all covered employees a mass transit and bicycle commuter benefits program.”  Full Article

– Proskauer Rose

NORTH CAROLINA

North Carolina Noncompetes, What is Legal Consideration?

“While one-size-fits-all noncompetes, such as restricting an employee from generally working for a competitor, will not fly in North Carolina, including specific language prohibiting the employee from “performing similar work” or describing the employee’s job duties within the noncompete can strengthen its enforceability.”  Full Article

– Parker Poe Adams & Bernstein

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The RISQ RECAP:

January 9th – January 13th, 2022

Wednesday, 11 January 2023 by RISQ Consulting

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

 

January Renewals See Hardest Property Catastrophe Reinsurance Rates in Generation

“A convergence of global events has led to the hardest property-catastrophe reinsurance market in a generation and a “complex,” “grueling” and “late” January renewal season, which went down to the wire, according to reports issued by brokers Gallagher and Howden Re.”  Full Article 

– Insurance Journal


EMPLOYEE BENEFITS, HUMAN RESOURCES, & COMPLIANCE

 

Understanding the Difference Between Federal OSHA and State Plans

“Employers need to identify whether their worksites fall under the jurisdiction of OSHA, a State Plan, or a Hybrid Federal- State Plan.”  Full Article

– Nelson Mullins Riley & Scarborough

Simple Possession Pardons Can Complicate Employment Background Checks

“On October 6, 2022, President Biden issued a blanket pardon to all citizens and lawful permanent residents convicted of simple possession of marijuana under the federal Controlled Substances Act.”  Full Article

– Duane Morris

Court Allows GINA Claims to Proceed Against Employer Wellness Program

“In Glenn Williams et al. v. City of Chicago, an Illinois federal district court judge has given the green light for some city employees to proceed with their suit against their employer based on violations of the Genetic Information Nondiscrimination Act (GINA).”  Full Article

– Hall Benefits Law

Trends and Issues Which Can Affect Workers’ Compensation Coverage for Construction Companies

“Recent trends in workers’ compensation coverage suggest that the number of claims are likely to continue to increase, specifically for high-risk industries, like the construction industry. This article explores multiple trends and issues which are likely to impact workers’ compensation insurance for construction companies.”  Full Article

– Saxe Doernberger & Vita

How Should Employers Revise Their Releases, Separation Agreements, and Settlement Agreements in Light of the Speak Out Act?

“The statute limits or prohibits the enforcement of confidentiality or non-disparagement provisions in cases of sexual harassment or assault for such agreements that were entered into “before the dispute arises.” The legislative history suggests that a “dispute arises” once an allegation of sexual assault and/or sexual harassment is made.”  Full Article

– Littler Mendelson

Sexual Misconduct Investigations: Why a Trauma-Informed and Culturally Sensitive Approach Works

““Following the viral #MeToo movement, which gained significant attention from 2017, a series of widespread and high-profile sexual misconduct allegations came to light across industries and corporations. Globally, with the increased media scrutiny, regulators, legislators and companies paid attention. But was that focus short-lived and have organizations implemented an adequate framework to effectively deal with sexual misconduct allegations?”  Full Article

– Ropes & Gray

 


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

AB 2449’s Mandate for Implementation of Receiving and Resolving Americans with Disabilities Act (ADA) Requests for Reasonable Accommodations

“In addition to changes to rules for virtual attendance of public meetings under the Ralph M. Brown Act (Brown Act), AB 2449 also imposed a mandate on local legislative bodies within California to adopt procedures for receiving and swiftly resolving requests for reasonable accommodations for individuals with disabilities, consistent with federal law.”  Full Article

– Reed Smith

MICHIGAN

Michigan Minimum Wage and Paid Leave Update: Agency Guidance and the Mothering Justice Appeal

“In Mothering Justice, the Court of Claims held that the state legislature violated the Michigan Constitution in 2018 when it enacted, and within the same legislative session amended, two ballot initiatives, one to raise the minimum wage and the other to require employers to provide paid sick leave.”  Full Article

– Jackson Lewis P.C.

WASHINGTON

Washington State Issues Final Policy on Pay Transparency in Job Postings, Setting Most Stringent Requirements in the Country

“The law provides that employers must disclose in each posting for each job opening: (1) the wage scale or salary range, and (2) a general description of all benefits and other compensation to be offered.”  Full Article

– Littler Mendelson

PENNSYLVANIA

Philadelphia Commuter Transit Benefits Coming Son

“Effective December 31, 2022, the Philadelphia, Pennsylvania Employer Commuter Transit Benefit Program requires covered employers to make available for all covered employees a mass transit and bicycle commuter benefits program.”  Full Article

– Proskauer Rose

NORTH CAROLINA

North Carolina Noncompetes, What is Legal Consideration?

“While one-size-fits-all noncompetes, such as restricting an employee from generally working for a competitor, will not fly in North Carolina, including specific language prohibiting the employee from “performing similar work” or describing the employee’s job duties within the noncompete can strengthen its enforceability.”  Full Article

– Parker Poe Adams & Bernstein

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The RISQ RECAP:

December 19th – December 23rd, 2022

Thursday, 22 December 2022 by RISQ Consulting

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

 

Customer Satisfaction With Digital Claims Declines Again: J.D. Power

“Customer satisfaction with insurers’ digital claims systems declined for the second consecutive year, according to a J.D. Power survey of auto and home policyholders. Mark Garrett, director of P/C insurance intelligence for the consumer research company, said that challenges such as rising repair costs and supply chain disruptions are driving longer claims cycle times. ”  Full Article 

– Insurance Journal


EMPLOYEE BENEFITS, HUMAN RESOURCES, & COMPLIANCE

 

Several New Group Health Plan Reporting Deadlines are Approaching

“To review all of the major CAA and transparency in coverage (TiC) requirements, you can access a checklist for plan sponsors here and a checklist for plan service providers here. This article summarizes the new CAA and TiC reporting requirements with deadlines that are soon approaching.”  Full Article

– Foley & Lardner LLP

First Circuit Creates New Fiduciary Duty Under ERISA for Insurers Accepting Group Premiums from Employers

“Due to a circuit split, Employers in the 1st, 4th and 8th Circuits should check their benefit plans’ terms to determine who is responsible for enrollment duties and eligibility verification, including determining when to accept premiums from employees.”  Full Article

– Littler

IRS Finalizes Regs Permanently Extending Deadlines for Furnishing ACA Statements to Individuals

“The regulations permanently extend the deadline for furnishing a given year’s Forms 1095-B and 1095-C to individuals until 30 days after January 31 of the immediately following year (or the next business day, if the 30th day falls on a Saturday, Sunday, or legal holiday).”  Full Article

– Thomson Reuters/ EBIA

Senators Murray, Baldwin Introduce Reproductive Health Travel Fund Act

“The Reproductive Health Travel Fund Act would set up a grant program, authorized at $350 million per year for FY23 through FY27. The bill would allow the Treasury Secretary to award grants to eligible entities to pay for travel-related expenses and logistical support for individuals accessing abortion services.”  Full Article

– Committee on Health, Education, Labor and Pensions, U.S. Senate

When Cash Is Not King: Holiday Gifts as Nontaxable ‘De Minimis’ Fringe Benefits

“This post highlights the tax consequences of employer-sponsored holiday perks such as gift cards, turkeys, hams and gift baskets. Under the current tax rules, employers may give infrequent low value gifts of property or services to employees on a tax-free basis. To qualify as a tax-free de minimis fringe benefit, a gift from an employer must be of nominal value, infrequent, and not similar to cash.”  Full Article

– Verrill Dana LLP

Implementing the Family Glitch Fix on ACA Marketplaces

“The Biden administration’s new rule, effective for the 2023 plan year, gives dependents with an offer of unaffordable employer-based family coverage access to marketplace subsidies. But a successful family glitch fix will require marketplaces to implement new infrastructure, conduct significant outreach, and ensure consumers have sufficient enrollment assistance and ample time to sign up for more affordable coverage.”  Full Article

– The Commonwealth Fund

 


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

Who is A “Designated Person?” Changes to California’s Medical Leave

“The Expansion of California Family Rights Act, AB 1041, was signed into law by Governor Newsom on September 29, 2022. AB 1041 expands the class of people for whom an employee may take leave to care for under the California Family Rights Act (“CFRA”) to include a “designated person.”  Full Article

– Sheppard Mullin LLP

NEW YORK

New York Bars Discipline for Legally Protected Employee Absences

“On November 21, 2022, New York Governor Kathy Hochul signed a law clarifying that it is unlawful for an employer to penalize an employee for any absence protected under federal, state or local law. (S.1958/A.8092). The law goes into effect on February 19, 2023.”  Full Article

– Jackson Lewis P.C.

COLORADO

New Guidance on Bonuses and Commissions May Cause Headaches for Employers

“Organizations commonly require employees to be employed on the date a commission or bonus is paid to receive the commission or bonus. The Colorado Department of Labor and Employment (CDLE), which interprets and administers Colorado’s Wage Act, recently indicated that practice is not permissible, which means employers will need to revisit their bonus agreements and commission plans sooner rather than later.”  Full Article

– Holland & Hart LLP

ILLINOIS

Illinois Appellate Court Holds Businesses Must Implement Biometric Retention and Destruction Policies Before Collecting Biometric Data

“On November 30, 2022, the Illinois Second District Appellate Court reversed the trial court’s grant of summary judgment in Defendant’s favor in a case entitled Mora v. J&M Plating, Inc.”  Full Article

– Seyfarth Shaw LLP

WASHINGTON

Washington State’s Pay Transparency Law Takes Effect January 1, 2023

“SB 5761 amends Washington’s Equal Pay and Opportunity Act (RCW 49.58) to require employers with 15 or more employees to include in each job posting the wage scale or salary range of the job and a general description of all of the benefits offered and to identify other compensation offered.”  Full Article

– McDermott Will & Emery LLP

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HR-to-Employee Metrics

Wednesday, 21 December 2022 by RISQ Consulting
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.

Deciding how many HR professionals an organization needs to operate effectively is a hotly debated topic. Some organizations rely on metrics to guide them in making this decision. One of the most common metrics organizations use when deciding whether to hire HR professionals is the HR-to-employee ratio. When properly analyzed, this ratio can aid employers in meeting their HR needs and benchmarking their organizations against others. It can help employers determine not only how to fill their HR staffing needs, but also analyze how well their HR professionals are delivering on organizational goals.

This article explains the HR-to-employee ratio, how organizations can use it and what employers should consider when deciding whether to hire HR professionals.

What Is the HR-to-Employee Ratio?

The HR-to-employee ratio measures how many HR professionals there are for each employee in an organization. It’s calculated by dividing the total number of full-time HR professionals by the total number of full-time employees in an organization and then multiplying that number by 100. For example, the HR-to-employee ratio for an organization with one full-time HR professional and 73 total full-time employees would be 1.37. As the total number of employees increases, the HR-to-employee ratio usually decreases, though this varies by organization.

The HR-to-employee ratio is a useful measurement for evaluating HR departments. It can guide an organization’s decisions regarding HR staffing, including whether its HR department needs additional support, is overstaffed or can delegate or outsource certain functions. It can also help determine an organization’s HR efficiency, as a higher ratio could indicate a lower efficiency in delivering HR services.

According to Bloomberg’s HR Department Benchmarks and Analysis report, annual survey results revealed the median HR-to-employee ratio is 1.4 full-time HR professionals per 100 employees. This ratio is currently at an all-time high, as it previously peaked in 2013 at 1.3 HR professionals per 100 employees. The recent increase in the HR-to-employee ratio is primarily the result of unprecedented workforce growth and employers’ need to address the increased HR burden on their organizations.

Smaller employers (organizations with fewer than 250 employees) generally have a significantly higher HR-to-employee ratio—averaging between 1.7 and 3.4—because of the minimum number of HR professionals required to perform core HR functions, such as recruiting and benefits administration. It’s not uncommon for smaller organizations in the early stages of growth needing to focus more on people management than more established organizations, resulting in a higher ratio. As organizations grow, the HR-to-employee ratio tends to decrease because of the cost advantages employers gain by increasing the size of their organizations.

Factors Impacting the HR-to-Employee Ratio

Determining how many HR professionals an organization requires is difficult and depends on the organization’s needs and growth strategy. While the HR-to-employee ratio can guide employers as they make HR staffing decisions, there are several factors that may influence this ratio. These factors include the following:

  • Technology—Automating HR operations will reduce an organization’s need for HR professionals, lowering the HR-to-employee ratio. Organizations that invest in digital and self-service HR tools can improve overall accuracy and empower managers and employees to self-manage many HR functions, which can allow HR professionals to focus on higher-value work.
  • HR involvement—The role of HR can influence the HR-to-employee ratio. For example, a highly operational HR department may require more HR professionals to perform a variety of functions, such as employee training and development, recruiting, onboarding, benefits and compliance.
  • Budget—A larger budget allows an organization to staff more HR personnel, while a smaller budget can restrict the total number of employees the organization is able to hire, thus impacting the HR-to-employee ratio. Increasing the size of an HR department will often result in a higher HR-to-employee ratio; however, a high-functioning HR department can ideally help reduce costs elsewhere in an organization.
  • Industry—The HR-to-employee ratio generally varies by industry, as some sectors require more HR involvement than others—resulting in a higher ratio. Industries such as consulting, insurance and finance typically have higher ratios than manufacturing, construction, retail and health care because sectors with highly skilled professionals tend to require more training and personal development to engage and retain staff compared to their lower-skilled counterparts.

Other factors that may impact an organization’s HR-to-employee ratio include whether the organization is centralized or decentralized, where employees are located (e.g., a single location versus multiple locations) and the level of employee sophistication. The HR-to-employee ratio only accounts for full-time HR professionals, so there may be a gap between the metric and actual organizational needs.

Does a Smaller Organization Need HR Professionals?

Regardless of an organization’s size, HR practices and processes play a role—whether completed by an owner or a formal HR professional—in the organization’s success. Small and midsized employers tend to implement more formal HR processes as they grow. This is because their compliance needs, cultural challenges and talent struggles become increasingly complex with more employees.

Small and midsized organizations generally have the following HR needs:

  • Recruiting job candidates
  • Onboarding new hires
  • Providing training and development opportunities
  • Handling compensation
  • Managing benefits
  • Setting up and overseeing payroll
  • Reviewing timekeeping records
  • Ensuring compliance
  • Fostering employee relations
  • Promoting health and safety
  • Boosting organizational morale

Owners and executives of smaller organizations often take on HR responsibilities themselves rather than hiring new employees. According to industry research, owners and executives of smaller organizations can spend as much as 12 hours each week on HR administration. However, as organizations grow, small and midsized employers often need HR support because executives and owners often do not feel confident managing HR functions and processes or may have other areas that require their limited time and resources. Utilizing the HR-to-employee ratio can help theses employers decide when to hire HR staff.

Before deciding to hire an HR professional or adding additional HR staff, employers need to decide where their staffing needs are the greatest and how much value HR professionals could add to their organization versus an investment in other departments. They also need to consider the skills an HR professional brings to ensure organizational needs are met.

Summary

Understanding the HR-to-employee ratio and factors that affect it can help employers evaluate the role of HR in their organizations. When making HR staffing decisions, employers should consider their organizations’ specific needs and long-term goals. Using the HR-to-employee ratio can provide employers with insights regarding HR hiring practices and improving organizational efficiencies.

For more HR-related resources, contact RISQ Consulting today.

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The RISQ RECAP:

December 12th – December 16th, 2022

Thursday, 15 December 2022 by RISQ Consulting

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

 

State Farm Will Start Hiking Auto Rates, Allstate CEO Predicts

“Allstate’s chief executive officer said his company will likely continue pushing for auto insurance rate hikes next year, and he expects the carrier’s largest mutual competitor—State Farm—to move in the same direction. Speaking at the Goldman Sachs 2022 U.S. Financial Services Conference on Dec. 6, Thomas Wilson, president and CEO of Allstate, was asked about the competitive dynamics between publicly traded stock companies and mutuals in the auto insurance market—in particular, whether he felt that large mutuals were slower to raise prices in response to rising loss costs and inflationary pressures, giving Allstate a competitive growth advantage in 2023.”  Full Article 

– Insurance Journal


EMPLOYEE BENEFITS, HUMAN RESOURCES, & COMPLIANCE

 

The EEOC is Bulldozing Its Way Through the Construction Industry

“The U.S. Equal Employment Opportunity Commission (EEOC) has a new target—the construction industry. During a public hearing earlier this year, the EEOC accused the construction industry of perpetuating a culture of racism and sexual harassment.”  Full Article

– Venable LLP

Employer WARN-ing: Layoffs Could Trigger WARN Notice Requirements This Time Around

“Studies show that as many as 98% of CEOs are anticipating a global recession in the next 12-18 months, which means that companies have already started focusing on cutting costs and redistributing resources to best position themselves to survive.”  Full Article

– Baker McKenzie LLP

Work Beyond Pay Grade Can Be Grounds for Constructive Termination, Court Rules

“The federal court for the Northern District of California recently declined to dismiss a former Al Jazeera International employee’s constructive wrongful termination claim against the news outlet, finding that requiring an employee to perform tasks more advanced than their pay level, without promotion, could constitute “intolerable” working conditions.”  Full Article

– Proskauer Rose LLP

Federal Restrictions on NDAs for #MeToo Claims Expected to Become Law

“The “Speak Out Act” (H.R 8827), a #MeToo-inspired bill prohibiting pre-dispute nondisclosure and nondisparagement clauses when sexual harassment or assault is alleged, has cleared Congress. Previously, President Biden issued a statement signaling that he strongly supports the bill and will sign. The bill will become effective upon his signature.”  Full Article

– Davis Wright Tremaine

Juries are More Likely to Find Retaliation than Discrimination

“On October 25, 2022, a federal jury in Houston awarded a woman $365,000,000 in punitive damages and over $1,000,000 in compensatory damages, after finding that her employer had terminated her in retaliation for complaining about race discrimination. While this amount may not stand after appeal, the case and the sums at issue are notable.”  Full Article

– Vinson & Elkins LLP

Remote Work May Be A Reasonable Accommodation Where the Employee Has Been, Well, Working Remotely

“In the context of the COVID-19 pandemic, many employees suddenly began working remotely and as we move into a new normal, many employees would like to continue telecommuting. However, from a legal standpoint, employers need not agree to continued remote work unless it is required as a reasonable accommodation under the American with Disabilities Act or analogous state laws. But when can an employer argue that continued remote work is unreasonable?”  Full Article

– Shawe Rosenthal 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

Who is A “Designated Person?” Changes to California’s Medical Leave

“The Expansion of California Family Rights Act, AB 1041, was signed into law by Governor Newsom on September 29, 2022. AB 1041 expands the class of people for whom an employee may take leave to care for under the California Family Rights Act (“CFRA”) to include a “designated person.”  Full Article

– Sheppard Mullin LLP

NEW YORK

New York Bars Discipline for Legally Protected Employee Absences

“On November 21, 2022, New York Governor Kathy Hochul signed a law clarifying that it is unlawful for an employer to penalize an employee for any absence protected under federal, state or local law. (S.1958/A.8092). The law goes into effect on February 19, 2023.”  Full Article

– Jackson Lewis P.C.

COLORADO

New Guidance on Bonuses and Commissions May Cause Headaches for Employers

“Organizations commonly require employees to be employed on the date a commission or bonus is paid to receive the commission or bonus. The Colorado Department of Labor and Employment (CDLE), which interprets and administers Colorado’s Wage Act, recently indicated that practice is not permissible, which means employers will need to revisit their bonus agreements and commission plans sooner rather than later.”  Full Article

– Holland & Hart LLP

ILLINOIS

Illinois Appellate Court Holds Businesses Must Implement Biometric Retention and Destruction Policies Before Collecting Biometric Data

“On November 30, 2022, the Illinois Second District Appellate Court reversed the trial court’s grant of summary judgment in Defendant’s favor in a case entitled Mora v. J&M Plating, Inc.”  Full Article

– Seyfarth Shaw LLP

WASHINGTON

Washington State’s Pay Transparency Law Takes Effect January 1, 2023

“SB 5761 amends Washington’s Equal Pay and Opportunity Act (RCW 49.58) to require employers with 15 or more employees to include in each job posting the wage scale or salary range of the job and a general description of all of the benefits offered and to identify other compensation offered.”  Full Article

– McDermott Will & Emery LLP

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The RISQ RECAP:

December 5th – December 9th, 2022

Thursday, 08 December 2022 by RISQ Consulting

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

 

Professional Service Firms Facing Increased Cyber Risks

“The professional services sector has seen significant growth over the past few years, spurred by globalization. However, this growth is also accompanied by increased exposure to risks, especially those of a technological nature. Beazley’s latest Cyber Services Snapshot report revealed that professional service firms are increasingly being targeted by cyberattacks.”  Full Article 

– Business Insurance America


EMPLOYEE BENEFITS, HUMAN RESOURCES, & COMPLIANCE

 

Significant Parity Cases For Benefits Lawyers to Watch

“Many expect the outcomes of these lawsuits to clarify the standards for a successful parity claim and what remedies plaintiffs can seek under the Parity Act.”  Full Article

– Hall Benefits Law

Plan Administrators May Not Adopt Rationales for Benefit Denials Not Raised During the Claims Review Process

“The Ninth Circuit confirmed that a district court must decide whether the plan administrator’s decision to deny LTD benefits is supported by the record and cannot engage in a new determination of whether the claimant is disabled.”  Full Article

– The Wagner Law Group

HIPAA Compliance and Tracking Technologies for Apps and Webpages

“The guidance generally provides that HIPAA covered entities and business associates: May not impermissibly disclose protected health information (PHI) to tracking technology vendors (TTV). Must ensure that they disclose PHI only as expressly permitted or required by the HIPAA Privacy Rule.”  Full Article

– Thomson Reuters Practical Law

SCOTUS Denies Review and Leaves Seattle’s ‘Play-or Play’ Ordinance Intact

“The Supreme Court declined to review whether federal law preempts a Seattle Ordinance mandating that large hotels offer their employees health insurance coverage or increased pay. This left the Ninth Circuit’s ruling, which found that the particular ordinance was not preempted, as the last word on the issue (at least for now).”  Full Article

– Proskauer

Health Plans and Marijuana: What to Know Now

“On November 16, the U.S. Senate passed Medical Marijuana and Cannabidiol Research Act [HR 8454], which was passed by the House of Representatives in July. News reports have predicted that Biden will sign the bill. The bill doesn’t specifically address health plan coverage of medical marijuana, but the processes it sets in motion could lead to greater clarity on the issue.”  Full Article

– International Foundation of Employee Benefits

I Want A New Drug… Prescription Drug Data Collection Reporting is Due December 27th

“The Departments will not take enforcement action against the plan sponsor if the average monthly premium paid by employers and employees (Columns E and F) is not included on the D1 for the 2020 and 2021 reporting period, as long as the information is provided for 2022 and beyond. However, no such relief exists for reporting the premium equivalent (Column I).”  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.

 

WASHINGTON D.C.

D.C. Voters Pass Initiative 82– Phasing Out Tipped Minimum Wage by 2027

“On November 8, 2022, Washington D.C. voters overwhelmingly passed Initiative 82 or the “District of Columbia Tip Credit Elimination Act.” As a result, the tip credit for D.C. tipped wage workers will be gradually phased out by 2027, at which time employers must pay their tipped employees the applicable D.C. minimum wage rate and eliminate the use of any tip credit.”  Full Article

– Littler Mendelson

CALIFORNIA

2023 California Minimum Wage Update

“The start of the new year will bring many changes to California’s state and local minimum wage laws. California employers would be wise to take note of the following changes—set to take effect on January 1, 2023—that will impact both non-exempt and exempt employees.”  Full Article

– Davis Wright Tremaine

MISSOURI

Missouri Voters Approve Legalization of Recreational Marijuana- What Employers Need to Know

“On November 8, 2022, citizens of Missouri voted to amend the Missouri Constitution, making the cultivation, sale and use of recreational marijuana legal under certain circumstances. The approval of Amendment 3 follows the passage of Amendment 2 in 2018, legalizing the production and sale of medical marijuana throughout Missouri.”  Full Article

– Worklaw Network

MASSACHUSETTS

Massachusetts Department of Family and Medical Leave Publishes 2023 Workplace Poster, Workforce Notifications and Rate Sheets

“On November 15, 2022 the Massachusetts Department of Family and Medical Leave (the “Department”) published its 2023 Paid Family and Medical Leave (“PFML”) workforce notifications, including the poster, notices, and rate sheets, all available here.”  Full Article

– Morgan, Brown and Joy

ILLINOIS

Labor–Friendly “Workers’ Rights Amendment’ Passes in Illinois

“The Illinois Constitution Amendment 1 (commonly referred to as the “Workers’ Rights Amendment”) has received enough votes to secure its passage. Citizens of Illinois voted on the Amendment on November 8, 2022, but delays in tabulating the votes resulted in a formal announcement on November 16, 2022 of the Amendment’s passage.”  Full Article

– Benesch, Friedlander, Coplan & Aronoff

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