The RISQ RECAP:
October 16th – October 20th, 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
Private Health Data Still Being Exposed to Big Tech, Report Says “Despite recent efforts to address the issue, medical-related websites continue to be mined for data including personal medical information, in an apparent violation of patients’ privacy rights, according to a new study. Some of the most common tracking pixels were from Alphabet Inc.’s Google, Microsoft Corp., Meta Platforms Inc. and ByteDance, the parent company of TikTok, according to a report by the cybersecurity company Feroot Security.” Full Article – Insurance Journal
US Plans to Push Other Countries Not to Pay Hacker Ransoms “The US is pushing a group of governments to publicly commit to not make ransom payments to hackers ahead of an annual meeting of more than 45 nations in Washington later this month. Anne Neuberger, deputy national security adviser, told Bloomberg News that she is “incredibly hopeful” about enlisting support for such a statement but acknowledged it’s a “hard policy decision.” If members can’t agree to the statement in advance of the meeting, then it will be included as a discussion point, she said.” Full Article – Insurance Journal
EMPLOYEE BENEFITS, HUMAN RESOURCES, & COMPLIANCE
Cybersecurity Awareness Dos and Don’ts Refresher “As we have adjusted to a combination of hybrid, in-person and remote work conditions, bad actors continue to exploit the vulnerabilities associated with our work and home environments.” Full Article – Katten Muchin Rosenman LLP
Top Three Labor Trends to Watch for in Q4 2023 “More companies will be pulled into union organizing campaigns, contract negotiations and National Labor Relations Board (NLRB) proceedings involving their contractors when the NLRB issues a new joint employer rule.” Full Article – McDermott Will & Emery
$2.49 Million Verdict Underscores Expansive USERRA Protections “A little more than a year after U.S. Army veteran Le Roy Torres kept his case alive at the U.S. Supreme Court, a Texas jury voted unanimously to award him $2.49 million on the claim that his former employer, the Texas Department of Public Safety, failed to accommodate Torres’ service-connected disabilities.” Full Article – Littler Mendelson P.C.
Incentives to Improve Employee Performance, Attendance, Commitment “In his recent book, Mixed Signals: How Incentives Really Work, economist and University of California-San Diego professor Uri Gneezy examines how incentives of various kinds can and do modify behavior in a variety of contexts. Employment is one of the contexts in which incentives have particular application.” Full Article – Constangy, Brooks, Smith & Prophete LLP
EEOC Issues Long-Awaited Guidance on Harassment in the Modern Workplace “The U.S. Equal Employment Opportunity Commission issued long-awaited enforcement guidance on workplace harassment. The ‘Proposed Enforcement Guidance on Harassment in the Workplace,’ published in the Federal Register on October 2, 2023, advises employers on handling new workplace realties, including LGBTQ rights, online misconduct, abortion, and a number of different types of harassment.” Full Article – Sheppard, Mullin, Richter & Hampton LLP
Former Employee Challenges Employer’s Diversity Program on Religious Discrimination Grounds “Courtney Rogers, a former recruiter for Compass Group USA, recently filed a lawsuit against the company in the U.S. District Court for the Southern District of California. Rogers argues that Compass violated Title VII of the Civil Rights Act of 1964 after it terminated her for requesting a religious accommodation to avoid working on a corporate diversity, equity, and inclusion (DE&I) program that excluded white male employees.” Full Article – Hall Benefits Law
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
Employees in California Get a Bump in Paid Sick Leave
“Governor Gavin Newsom approved Senate Bill No. 616 (SB 616), which significantly increases the amount of paid sick leave required under California’s existing paid sick leave law. Employees are still entitled to accrue paid sick leave at a rate of not less than one hour for every 30 hours worked, but under SB 616, the accrual cap has been modified from six days or 48 hours to 10 days or 80 hours.” Full Article
– Snell & Willmer LLP
MASSACHUSETTS
Important Change to Massachusetts PFML Law: Employees May Supplement (Top Off) PFML Benefits with Vacation, PTO and Sick Time
“Effective November 1, 2023, the Massachusetts Paid Family and Medical Leave (PFML) law will allow employees to supplement (i.e. “top off”) benefits received from the Commonwealth of Massachusetts with any available accrued paid leave (e.g., sick time, vacation, PTO, personal time, etc.).” Full Article
– Seyfarth Shaw LLP
ILLINOIS
Illinois Passes Sweeping Amendments to Day and Temporary Labor Services Act, Affecting Staffing Agencies and Companies That Contract with Them
“Governor Jay Pritzker signed into law House Bill 2862, approving sweeping amendments to the Day and Temporary Labor Services Act (“DTLSA” or the “Act”). Since then, the Illinois Department of Labor (IDOL) has issued administrative regulations and proposed rules that are currently working their way through the notice-and-comment process.” Full Article
– Taft Stettinius & Hollister LLP
CONNECTICUT
Taft Stettinius & Hollister LLP Connecticut Stifles Employees’ Access to Their Earned Wages
“Earned Wage Access (or EWA) programs are popular programs that allow employees to access their salary or wages that have already been earned, prior to the scheduled payroll date. Many argue that these beneficial programs are not truly ‘loans’ because employees are accessing their own money without paying the high fees charged by payday lenders.” Full Article
– K & L Gates LLP
NEW YORK
New York State Limits Employers’ Ability to Access Social Media
“Beginning in March 2024, New York employers will be restricted from accessing employee social media accounts. The new law, A.386, amends New York’s labor law and will restrict employers from requesting, requiring, or coercing an employee or applicant for employment to provide their username and password to social media websites.” Full Article
– Gordon Rees Scully Mansukhani LLP
- Published in Blog
Getting the Most Out of Your 2024 Open Enrollment Communications
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.
Open enrollment is a crucial period for both employers and employees. It’s when employees can make important decisions about their benefits and an opportunity for employers to engage with their workforce effectively. As organizations continue to adapt to evolving workforce needs and changing regulations in 2024, open enrollment communication becomes more critical than ever.
This article highlights why open enrollment communication matters and provides tips on what to do before, during and after enrollment to maximize its effectiveness.
Why Communication Matters
Although open enrollment is critical, some employees make uneducated decisions or even miss deadlines. Some common reasons for this are that open enrollment information is often full of confusing jargon, employees may not receive enough communication from their employer or they simply don’t understand the enrollment process.
Communication matters because it enables employees to understand the open enrollment process in a clear and assessable manner, which can boost active participation in benefits selection. Employees who feel valued and informed about their benefits are more likely to appreciate their employer’s efforts and stay engaged with their work.
Before Open Enrollment
Educating and informing employees about their benefits package is integral to open enrollment. Effective communication is critical to educate and inform employees about new, returning or expanded benefits options.
Consider the following communication tips before the open enrollment period begins:
- Review previous communications. It can be enlightening for employers to review and evaluate past open enrollment communications to identify what worked and what didn’t. This information can be used to improve the current communication strategy.
- Develop key messaging. After solidifying benefits options, employers need to plan their communication strategies. The first step is figuring out key messaging, focusing on new or updated benefits offerings, and developing FAQs to address common concerns quickly.
- Customize communication. Communication is often more successful when it’s tailored to different employee segments. Consider the needs of various age groups, life stages and demographics within the workforce.
- Gather resources. Before the open enrollment period begins, it’s important for employers to have all the necessary resources—such as printed materials, digital platforms and support staff—ready.
During Open Enrollment
During the open enrollment period, employer communication efforts take center stage, as it’s when employees actively make critical decisions about their benefits. Effectively guiding employees through this process is essential for ensuring they make informed choices that align with their needs and preferences.
Consider the following communication tactics to engage employees during the open enrollment period:
- Vary communication channels. Use multiple communication channels such as email, printed materials, webinars and in-person meetings to reach employees effectively. Not everyone consumes information the same way, so a diverse approach is key.
- Prioritize clear and concise messaging. Open enrollment messaging should be simple and easy to understand. Avoiding HR or benefits-related jargon is best to help make benefits easier to understand. Additionally, many benefits are acronyms, so employers should help decode and explain the alphabet soup to employees.
- Make it digestible. It’s crucial to catch employees’ attention and present the key message immediately before they lose interest. Traditional benefits booklets can be lengthy; instead, employers could deliver bite-sized information to employees through videos and emails. If all open enrollment information is given at once, it’s easy for employees to become overwhelmed and, ultimately, disengage with the information. Digestible communication makes it easy for employees to know what to focus on and take action.
- Use real-world examples. When possible, employers can put benefits offerings in context with real-world scenarios. Employees can relate to stories, so find ways to bring the options to life. For example, instead of describing telemedicine as a 24/7 benefit, highlight that an employee could get health care answers in the middle of the night when they or a child are running a high fever. The chances of employees needing to use health care benefits during the next year are highly likely, so help reiterate the importance of complete coverage.
- Personalize communication. A personalized approach can help employers engage employees with open enrollment information. Additionally, employers may yield better results by personalizing communications to individual employees whenever possible. For example, communications could address employees by name and highlight benefits relevant to their circumstances. This builds off the earlier tip of segmenting employee groups based on age and other factors.
- Remain available. Those leading open enrollment efforts should offer opportunities for employees to ask questions and get clarifications. This can be done through webinars, town hall meetings, dedicated question-and-answer sessions or HR open office hours.
After Open Enrollment
Although open enrollment is the most pivotal time to highlight employee benefits, employers can educate employees throughout the year. Ongoing communication after open enrollment can help employees understand and utilize their available benefits.
Consider the following communication strategies after the open enrollment deadline passes:
- Follow up. Although the enrollment period is over, employers can continue communicating with employees to remind them of their choices and deadlines. Additionally, they can send reminders about important events or changes to benefits.
- Collect feedback. Gather feedback from employees about the open enrollment process. Surveys or focus groups can be used to understand what worked well and where improvements can be made.
- Evaluate and optimize. As with any workplace effort, analyzing the outcomes of open enrollment communication efforts is important. Check if goals were achieved and use the data to refine next year’s strategy.
- Provide ongoing education. Employers shouldn’t limit communication to just the open enrollment period. They can periodically remind employees of the benefits and resources available to them.
Summary
Open enrollment communication is a crucial aspect of benefits administration that directly impacts employees’ well-being and satisfaction. By planning, customizing communications and continually improving their approach, employers can make the most out of their 2024 open enrollment period. Effective communication helps employees make informed choices and strengthens their connection with the organization, leading to a happier and more engaged workforce.
Contact us for additional open enrollment support.
- Published in Blog
The RISQ RECAP:
October 9th – October 13th, 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
Hacker Puts 23andMe User Data Up for Sale on the Internet “An anonymous hacker is claiming to be selling “millions” of genetic profiles cobbled together from hijacked 23andMe customer accounts. The seller suggested the profiles, which include email addresses, photos, gender, date of birth and DNA ancestry, could be used to target users based on their ethnicity. 23andMe Holding Co., a genetics test kit company that offers ancestry and health reports by analyzing a person’s saliva, confirmed Friday that genuine customer data was for sale on a hacker forum.” Full Article – Insurance Journal
Summit: Cannabis Data A Key to Growing, Retaining Client Base “Data and technology are becoming more important to the cannabis market as it matures, and insurance professionals specializing in the segment would benefit from keeping that at top of mind. A group of experts gathered during Insurance Journal’s Insuring Cannabis Summit to discuss emerging opportunities and notable insurance focus areas. The panel was hosted by Charles Pyfrom, chief marketing officer at CannGen Insurance Services. Panelists shared their perspectives on data implementation and the importance of maintaining close contact with clients throughout policy lifecycles.” Full Article – Insurance Journal
EMPLOYEE BENEFITS, HUMAN RESOURCES, & COMPLIANCE
Agencies Press Play on Prescription Drug Machine-Readable File Requirement “Subject to the implementation timeline set to be announced by the Departments in future guidance, plan sponsors will need to work with service providers to put together a game plan to gather the required information and post the prescription drug machine-readable file.” Full Article – Proskauer Rose LLP
Fiduciary Governance: Evaluating, Selecting, and Contracting with Pharmacy Benefit Managers “The authors posit that the lack of compliance monitoring is not for lack of interest but rather because of the complexity of the landscape to which the regulation applies. As such, in this piece, we lay the groundwork for compliance studies by outlining the agencies responsible for enforcing compliance with the TiC rule, delineating the universe of entities that are required to comply with it, and discussing how compliance might be assessed.” Full Article – Nixon Peabody
The ERISA Edit: More Coverage Mandates and TiC Enforcement Ahead “Current agency guidance interpreting statutory and regulatory requirements states that preventive products that are generally available without a prescription, such as folic acid, contraception sponges, and spermicides, must be covered without co- sharing only when such products are prescribed by a healthcare provider. The September 29 RFI signals that the Departments are considering future rulemaking or new guidance that would eliminate the prescription requirement.” Full Article – Miller & Chevalier Chartered
Court Ruling Calls Into Question Whether Plans and Issuers Can Exclude Coupons Towards the MOOP “The 2021 Notice of Benefit and Payment Parameters (2021 NBPP) permitted (but did not require) plans and issuers to count direct support offered by drug manufacturers for prescription drugs toward the ACA’s annual cost-sharing limit (MOOP). The court concluded that the 2021 NBPP interpretation of ‘cost sharing’ conflicts with the statutory and regulation definition of ‘cost sharing’ under the ACA and remanded the amendments back to HHS for further consideration.” Full Article – Groom Law Group
Biden-Harris Administration Moves Forward with Medicare Drug Price Negotiations to Lower Prescription Drug Costs for People with Medicare “All 10 drug companies whose drugs were selected for price negotiation with Medicare for the first cycle of the program have decided to participate in those negotiations. These selected drugs accounted for $50.5 billion in total Part D gross covered prescription drug costs, or about 20%, of total Part D gross covered prescription drug costs between June 1, 2022 and May 31, 2023. Medicare enrollees taking the 10 drugs covered under Part D selected for negotiation paid a total of $3.4 billion in out-of-pocket costs in 2022 for these drugs.” Full Article – U.S. Department of Health and Human Services
The Proposed MHPAEA Regulations’ ‘Meaning of Terms’ Part Two: Processes, Strategies, Evidentiary Standards and Other Factors “The 2013 final MHPAEA regulations use — but do not define — the terms, ‘processes,’ ‘strategies,’ ‘evidentiary standards’ or ‘other factors.’ The Departments now propose to define these other terms. Under the proposal, ‘processes’ relate to the application of an NQTL, while ”strategies” relate to their design. Evidentiary standards are not themselves considered factors; rather, they are considered or relied upon in designing or applying a factor. This invites the question: What happens when a plan or issuer only relies upon a single evidentiary standard to design or apply an NQTL?” Full Article – McDermott, Will & Emery
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 State Department of Labor Issues Proposed Regulations on Salary Transparency Law
“On September 13, 2023, the New York State Department of Labor published proposed regulations on the state’s salary transparency statute that took effect on September 17, 2023.” Full Article
– Proskauer Rose LLP
CALIFORNIA
California Further Extends the Ban on Employers Entering Noncompete Agreements Starting in 2024
“On Sept. 1, 2023, California Governor Gavin Newsom signed Senate Bill (SB) 699 into law with at least two significant additions to Section 16600 of the California Business and Professions Code (BPC). First, SB 699 extends the reach of California’s restrictions on noncompete agreements to contracts signed out of state. Second, SB 699 creates a private right of action for employees whose agreements include restrictive covenants. SB 699 will go into effect on Jan. 1, 2024.” Full Article
– Greenberg Traurig LLP
RHODE ISLAND
Rhode Island’s Amended Payment of Wages Act Now Imposes Felony Penalties on Employers
“Rhode Island law taking effect January 1, 2024 will impose criminal penalties on employers for knowing and willful wage and hour violations. The law also includes harsher penalties for employers generally, and those in the construction industry specifically, that misclassify workers as independent contractors.” Full Article
– Littler Mendelson P.C.
NEW JERSEY
Watch Out New York—New Jersey Wants Its Taxes Too
“July 21, 2023, New Jersey Governor Phil Murphy signed Assembly Bill No. S3128/A4694 into law, which implements an aggressive tax treatment of nonresidents who work for New Jersey employers. The law essentially adopts the Convenience of the Employer rule.” Full Article
– Littler Mendelson P.C.
GEORGIA
GA Update: Voting Leave, No Sunset on Kin Care
“Georgia’s voting leave law changed effective July 1. First, the Georgia statute was amended to add “advance in-person voting” (early voting) to the types of voting for which employers must allow unpaid time off.” Full Article
– Constangy, Brooks Smith & Prophete LLP
- Published in Blog
Understanding Auto Liability Coverage
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.
Auto insurance is one of the most frequently purchased types of coverage in the United States. However, while these policies may be common, they can still be complex and nuanced. Policyholders must be diligent and meticulous to ensure they fully understand their auto coverage and have ample financial protection.
One of the most common and crucial components of an auto insurance policy is adequate liability coverage. Any time a driver gets behind the wheel, they risk being involved in accidents that could harm others and incur devastating financial consequences. This article provides an overview of auto liability coverage and its importance.
What Is Auto Liability Coverage?
The liability portion of auto insurance is strongly advisable and is usually required by law. Although minimum requirements may vary among states, all drivers are generally mandated to carry certain liability coverage to ensure they can pay for losses for which they are at fault.
Liability coverage can insulate drivers from significant losses affecting third parties, including the following:
- Bodily injury—If a policyholder is responsible for an accident that injures another party, such as a pedestrian or occupants of another vehicle, this coverage can help pay resulting expenses, such as:
- Medical bills
- Lost wages
- Legal expenses
- Property damage—If a policyholder is at fault for damaging someone else’s property, such as by colliding with another vehicle or crashing into a building, this coverage can provide financial assistance to compensate affected parties and pay for costs arising from resulting lawsuits.
Most auto insurance includes three separate liability limits within a policy. These clauses establish the maximum amount of financial aid capable of being covered and generally are listed as the following:
- Bodily injury liability limit per person
- Bodily injury liability limit per accident
- Property damage liability limit
Another type of coverage that could help you financially protect yourself in an accident is uninsured/underinsured motorist coverage. This coverage, which is sometimes sold separately as uninsured motorist coverage and underinsured motorist coverage, can often be added to your personal auto insurance policy to help you avoid high out-of-pocket costs if you’re involved in an accident with a driver who doesn’t have any liability coverage (uninsured motorist coverage) or doesn’t have enough liability coverage (underinsured motorist coverage).
Ensuring Adequate Coverage
Motorists should consult with a qualified insurance professional to understand applicable auto insurance requirements. Failing to comply with relevant laws could lead to significant fines and legal penalties. Their lender may also require those who purchased their vehicles with the help of an auto loan to adhere to additional requirements.
Even if not mandated to do so, carrying sufficient auto liability coverage is strongly advisable. Without suitable insurance, an accident could lead to devastating out-of-pocket costs that jeopardize a driver’s financial situation.
It’s also essential to understand the limitations of auto liability coverage, which should not be relied upon to cover a policyholder’s own losses. Such financial assistance generally must be acquired through including additional coverages in an auto insurance policy, such as the following:
- Collision coverage—This may help pay for damage sustained by a policyholder’s vehicle resulting from striking another car or stationary object (e.g., building, fence, tree)
- Comprehensive coverage—This may provide coverage for incidents not included in collision coverage, such as fires, crime and severe weather.
- Medical payments coverage—This may provide financial assistance for a policyholder and their passengers if they are injured in an accident, regardless of who was at fault.
Making Sure You’re Covered
Auto liability coverage is an essential form of financial protection for any person who owns or operates a motor vehicle. For more information or guidance regarding optimal auto insurance solutions, contact RISQ Consulting today.
- Published in Blog
OSHA Launches New Compliance Initiative to Protect Stone Fabrication Workers from Silica Exposure
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.
On Sept. 22, 2023, the Occupational Safety and Health Administration (OSHA) launched a new initiative focused on enhancing enforcement and providing compliance assistance to protect workers in the engineered stone fabrication and installation industries. This policy is effective as of the date of this memorandum and will be ongoing until otherwise directed.
Silica Hazard
OSHA and the National Institute for Occupational Safety and Health identify silica dust exposure as a health hazard for workers involved in manufacturing, finishing and installing natural and manufactured stone, including man-made, engineered artificial and cultured types of stone.
When inhaled, tiny crystalline silica particles expose workers to the risk of silicosis, an incurable, progressively disabling and sometimes fatal lung disease. Unsafe silica dust exposure can also lead to chronic obstructive pulmonary disease or kidney disease.
Compliance Initiative Overview
Supplementing OSHA’s current National Emphasis Program for Respirable Crystalline Silica, this initiative focuses enforcement efforts on industry employers to ensure they’re following required safety standards and providing workers with the protections required to keep them healthy. It establishes procedures for prioritizing federal OSHA inspections to identify and ensure prompt abatement of hazards in covered industries where workers face exposure to high levels of silica dust.
Industries subject to the prioritized programmed inspections include those engaged in cut stone and stone product manufacturing, as well as brick, stone and related construction material merchant wholesalers. Outreach efforts will continue to include additional industries that may work with engineered stone. Programmed inspections will be prioritized in the following two NAICS codes:
- 327991 – Cut Stone and Stone Product Manufacturing; and
- 423320 – Brick, Stone, and Related Construction Material Merchant Wholesalers.
OSHA area offices will focus enforcement efforts on these two NAICS codes using the targeting and site selection procedures outlined below. This initiative requires each area office in regions 1 through 8 to complete a minimum of five programmed inspections (i.e., targeting sites selected from NAICS 327991 and 423320) of establishments working with engineered stone within 12 months from the date of this initiative.
Workers involved in manufacturing, finishing and installing manufactured stone countertops are at risk for significant crystalline silica exposure. Facilities in NAICS codes 327991 or 423320 may be selected for inspection under this initiative if they meet one of the following criteria for work processes:
- Manufacturing and/or finishing engineered or manufactured stone products at the facility; and
- Finishing and/or installing engineered or manufactured stone products off-site.
Activities occurring at manufacturing, finishing engineered or manufactured stone facilities include:
- Cutting, grinding, chipping, sanding, drilling and polishing engineered or manufactured stone products
- Opening bags of ground quartz, moving or mixing bulk raw materials, cleaning and scraping mixers, or cleaning dust collector bag houses
- Changing filters on dust collectors
- Making the engineered or cultured slabs—involves mixing crystalline silica, resins and pigments
- Operating powered hand tools such as saws, grinders and high-speed polishers
- Casting departments that mix and heat raw materials, including silica sand (which comprises more than 70% of each countertop by weight), epoxy resin, PA (a known respiratory sensitizer) and pigments
Employer Next Steps
Affected employers and stakeholders should become familiar with this OSHA initiative by studying the memorandum and the fact sheets on dust control methods and safer work practices for engineered stone manufacturing, finishing and installation operations. These employers should also review the OSHA silica standards and ensure their operations comply with the required regulations and prevent employee exposure to silica.
- Published in Blog
The RISQ RECAP:
October 2nd – October 6th, 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: Pilot Error, Training Issues Factors in Alaska Crash That Killed Czech Billionaire “The probable cause of a heli-skiing crash in Alaska in 2021 that killed a Czech billionaire and four others was a failure by the pilot to adequately respond to whiteout conditions, a federal accident report concluded. The report from the National Transportation Safety Board found that an “inadequate pilot training program” by the helicopter operator and “insufficient oversight” by a Federal Aviation Administration inspector were contributing factors.” Full Article – Insurance Journal
A Hidden Climate Danger Threatens Coastal Communities With Toxic Chemicals “A little-known climate threat lurks under our feet: rising groundwater that could release toxic chemicals from more than 132,000 contaminated sites in coastal areas of the US. In a first of its kind study, researchers estimated the number of polluted industrial sites and mapped them to areas likely to experience groundwater inundation due to rising seas. “A lot of people don’t realize that the ocean actually extends under the land in coastal areas, so as the ocean rises, it pushes up the groundwater toward the surface,” said Kristina Hill, an associate professor at the University of California at Berkeley and the lead author of the paper, which was published last week in the journal Earth’s Future.” Full Article – Insurance Journal
EMPLOYEE BENEFITS, HUMAN RESOURCES, & COMPLIANCE
EEOC, NLRB and DOL Shutdown Contingency Plans—The 2023 Edition “Once again we are poised on the brink of another possible federal government shutdown, and employers may be wondering how it may impact them.” Full Article – Shawe Rosenthal LLP
Significant Changes to US Overtime Pay Requirements on the Horizon “On September 8, 2023, the Department of Labor announced publication of a Notice of Proposed Rulemaking Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees.” Full Article – Baker & McKenzie LLP
OSHA’s Walk-Around Proposal Could Open Workplace Inspections to Outsiders “The Occupational Safety and Health Administration (‘OSHA’) recently announced a Notice of Proposed Rulemaking that would make it easier for non-employee representatives to participate in worksite inspections.” Full Article – Hunton Andrews Kurth LLP
Federal OSHA Announces Inspection Initiative Focusing on Crystalline Silica in the Stone Fabrication Industry “The U.S. Department of Labor recently announced that OSHA has launched a new initiative focused on enhancing enforcement and providing compliance assistance to protect workers from the hazards of silica.” Full Article – Seyfarth Shaw LLP
Dismantling Gender Walls in the Construction Industry “According to the national construction industry trade association Associated Builders and Contractors, construction labor demands are high. The construction business pays well and offers great opportunities for progression. The traditionally male-dominated industry has struggled, however, to convince women to join its workforce.” Full Article – Jackson Lewis P.C.
Hair, Beards, and the Invigorated Duty to Accommodate Religious Practices “Hair. In some religions it is considered a sacred gift from God that should not be cut. In other religions, it must be styled, covered, or cut in particular ways. These religious practices may result in employees’ requesting relief from various employment policies. If that happens, the request must be evaluated under the newly invigorated “undue hardship” test outlined in the Supreme Court’s Groff v DeJoy decision. Failure to do so is likely to lead to an unpleasant outcome for the employer.” 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
New York State Department of Labor Issues Proposed Regulations on Salary Transparency Law
“On September 13, 2023, the New York State Department of Labor published proposed regulations on the state’s salary transparency statute that took effect on September 17, 2023.” Full Article
– Proskauer Rose LLP
CALIFORNIA
California Further Extends the Ban on Employers Entering Noncompete Agreements Starting in 2024
“On Sept. 1, 2023, California Governor Gavin Newsom signed Senate Bill (SB) 699 into law with at least two significant additions to Section 16600 of the California Business and Professions Code (BPC). First, SB 699 extends the reach of California’s restrictions on noncompete agreements to contracts signed out of state. Second, SB 699 creates a private right of action for employees whose agreements include restrictive covenants. SB 699 will go into effect on Jan. 1, 2024.” Full Article
– Greenberg Traurig LLP
RHODE ISLAND
Rhode Island’s Amended Payment of Wages Act Now Imposes Felony Penalties on Employers
“Rhode Island law taking effect January 1, 2024 will impose criminal penalties on employers for knowing and willful wage and hour violations. The law also includes harsher penalties for employers generally, and those in the construction industry specifically, that misclassify workers as independent contractors.” Full Article
– Littler Mendelson P.C.
NEW JERSEY
Watch Out New York—New Jersey Wants Its Taxes Too
“July 21, 2023, New Jersey Governor Phil Murphy signed Assembly Bill No. S3128/A4694 into law, which implements an aggressive tax treatment of nonresidents who work for New Jersey employers. The law essentially adopts the Convenience of the Employer rule.” Full Article
– Littler Mendelson P.C.
GEORGIA
GA Update: Voting Leave, No Sunset on Kin Care
“Georgia’s voting leave law changed effective July 1. First, the Georgia statute was amended to add “advance in-person voting” (early voting) to the types of voting for which employers must allow unpaid time off.” Full Article
– Constangy, Brooks Smith & Prophete LLP
- Published in Blog
The RISQ RECAP:
September 25th – September 29th, 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
Tech Startups in US, France, Germany Help in Fight Against Wildfires “This year has been a challenging one for Phil Schneider, who hasn’t seen wildfire behavior like this in his 47-year firefighting career. Blazes raged through more than 2,000 acres of wildland in recent months in his county deep in the woods of Oregon, where a wet climate once made forest fires unthinkable. That’s an increasingly common scene around the world — from Canada to Greece, global warming has helped fuel larger and more destructive blazes, pushing firefighting services to the brink. But Schneider has a new recruit to help manage the growing risks: artificial intelligence.” Full Article – Insurance Journal
US Home Insurance ‘Bubble’ Closer to Popping as Climate Risks Mount: Report “Home insurance costs that have soared in much of the US may get even higher. Tens of millions of properties around the country are insured at prices that haven’t caught up with the danger of hurricanes, wildfires and floods, according to a new report from the First Street Foundation, a nonprofit that works to define and communicate risks posed by climate change. First Street estimates that 39 million US homes are insured at artificially suppressed prices compared with the risk they actually face. Of those, nearly 6.8 million homes are covered by state-backed “insurer of last resort” policies.” Full Article – Insurance Journal
EMPLOYEE BENEFITS, HUMAN RESOURCES, & COMPLIANCE
Save Billions or Stick with Humira? Drug Brokers Steer Americans to the More Costly Choice “For real competition to take hold, the big pharmacy benefit managers, or PBMs, the companies that negotiate prices and set the prescription drug menu for 80% of insured patients in the United States, would have to position the new drugs favorably in health plans. They haven’t, though the logic for doing so seems plain.” Full Article – KFF Health News
COBRA Notice Litigation Update: Recent Decision Signals Some Skepticism of Plaintiff’s Claims “Despite the sheer volume of COBRA notice cases, courts have issued relatively little guidance on the merits of the plaintiffs’ claims. Based on the decisions and proceedings to date, this article describes some trends indicating that, although COBRA notice litigation may present a risk for plan sponsors, there are also multiple potential merits and class-based defenses available to defendants.” Full Article – Groom Law Group
Managing Increasing Health and Welfare Fiduciary Risks “Take action now to stave off the pending surge in class action litigation against health and welfare plan sponsors and fiduciaries. Plaintiffs’ firms are actively looking for potential employee plaintiffs who participate in group health plans. Manage risks by establishing a health and welfare plan fiduciary committee to conduct formal, well- documented processes to monitor health plan activities and service provider performance and fees.” Full Article – Nixon Peabody
Gag Clause Attestations Due December 31, 2023 “Under the Consolidated Appropriations Act of 2021 (CAA), group health plans and health insurance issuers are prohibited from entering into agreements with service providers restricting certain information that the plan may make available to another party. This information includes [1] provider- specific cost or quality information sharing with plan members or [2] claims data (including individual claims pricing) sharing with plan sponsors (and their service providers).” Full Article – Graydon Head & Ritchey LLP
One Year Later, Where Are the ‘Transparency in Coverage’ Compliance Studies “The authors posit that the lack of compliance monitoring is not for lack of interest but rather because of the complexity of the landscape to which the regulation applies. As such, in this piece, we lay the groundwork for compliance studies by outlining the agencies responsible for enforcing compliance with the TiC rule, delineating the universe of entities that are required to comply with it, and discussing how compliance might be assessed.” Full Article – Health Affairs Forefront
Action Steps Health Parity Should Take Now in Response to New DOL Guidance on Mental Health Parity “The Departments have consistently highlighted certain types of plan exclusions or limitations as problematic or out of compliance and addressed these areas again in both the 2023 MHPAEA Report to Congress and the Proposed Rules. Plan sponsors should review their plans carefully for these red flags and should also consider performing a more general MHPAEA compliance review of their group health plans, with an emphasis on the Department’s six areas of focus.” Full Article – Foley & Lardner 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.
TEXAS
Employee E-Signatures in Arbitration Agreements Under Scrutiny
“Regardless of the ultimate outcome of the AutoNation case, one thing is clear—employers should have e-signature systems that leave little room for doubt about the efficacy of the security procedures, and the resulting authenticity of an employee’s e-signature.” Full Article
– Hunton Andrews Kurth LLP
NEW YORK
New York Enacts Laws on Captive Audience Meetings, Wage Theft, and Gender Identity
“During a busy term at the New York Legislature, Governor Kathy Hochul signed legislation prohibiting captive audience meetings, categorizing wage theft as larceny, and expanding protection of “gender identity or expression” to interns.” Full Article
– Jackson Lewis P.C.
CALIFORNIA
New California Non-Compete Law Furthers the State’s Employee Mobility Protections and Seeks to Void Out of State Employee Non-Compete Agreements
“On September 1, 2023, California Governor Gavin Newsom signed legislation that furthers the state’s protections for employee mobility and seeks to void out of state employee non-compete agreements. Specifically, the new law provides that any contract that is void under California law is unenforceable regardless of where and when the employee signed the contract.” Full Article
– Seyfarth Shaw LLP
WISCONSIN
Worker’s Compensation in the Work-from-Home Era
“At the onset of the COVID-19 pandemic in 2020, many employees around Wisconsin transitioned from a traditional office setting to working remotely from home. Since then, new questions have been raised by workers regarding which at-home injuries might be covered under the Worker’s Compensation Act.” Full Article
– State Bar of Wisconsin
NEW HAMPSHIRE
New Hampshire Adopts Workplace Accommodations for Nursing Mothers
“New Hampshire will guarantee the right of nursing mothers to an unpaid break of 30 minutes to pump for every three hours of work beginning July 1, 2025. This new state law comes in the wake of the 2022 federal PUMP Act, which requires employers nationwide to provide employees with reasonable break time to express breast milk for one year after a child’s birth.” Full Article
– Jackson Lewis P.C.
- Published in Blog
The RISQ RECAP:
September 18th – September 22nd, 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
Woodruff Sawyer: Softer D&O Market Still Offers Concerns for Underwriters “While concerns about a “tsunami of pandemic-related litigation” never quite materialized, according to Woodruff Sawyer in its latest D&O Looking Ahead Guide for 2023, those fears have been replaced with a number of others among D&O insurers. Economic challenges such as inflation and higher interest rates, as well as the threat of a recession, combined with the war in Ukraine, limited supply chains and a volatile stock market are creating a difficult environment for management teams and boards.” Full Article – Insurance Journal
Viewpoint: IT Asset Disposition Is Growing Cyber Security Threat for All Organizations “Cyber risk headlines are dominated by rising ransomware activity and soaring global data breach costs. The increased ransomware activity, driven largely by threat actor financial motives, has indiscriminately affected all industry segments – from large corporate clients to small to midsize enterprises alike. As a consequence, the cyber insurance market has witnessed notable changes. Both from a direct and reinsurer viewpoint, we have experienced pared-back coverage, increased pricing per million dollars of cover and limited capacity. While these developments top headlines, it is not the sole exposure point for corporations.” Full Article – Insurance Journal
EMPLOYEE BENEFITS, HUMAN RESOURCES, & COMPLIANCE
Pajamas, Pennies and Time Rounding “Submitted for your consideration are two court decisions, decided less than a year apart, and involving the same practice of rounding time entries up or down to the nearest quarter hour. The legal principles applicable to both decisions were identical, but their outcomes (so far) were very different.” Full Article – Constangy Brooks
The EEOC’s Strategic Plan Provides Insight Into its Priorities, Including Systemic Discrimination “The Equal Employment Opportunity Commission has released its Strategic Plan for Fiscal Years 2022-2026, effective immediately. This document provides employers with an overview of the EEOC’s particular areas of focus.” Full Article – Shawe Rosenthal
Labor Department Proposes Increasing Salary Threshold for Overtime Pay “On Aug. 30, 2023, the WHD of the DOL released a NPRM that proposes to revise the “white collar” overtime exemption regulations applicable to executive, administrative, and professional employees. Most notably, the highly anticipated proposal seeks to raise the salary threshold under which employees are eligible for overtime pay under federal labor law to $1,059 per week ($55,068 annualized).” Full Article – Greenberg Traurig LLP
State Pay Transparency Laws: What’s Required Now and What’s Next? “As the summer winds down, multistate employers must remain apprised of an ever – Cooley LLP
-increasing number of obligations in the area of pay transparency … We highlight recent developments to existing pay transparency laws, summarize new pay transparency laws enacted over the summer and offer compliance tips for multistate employers grappling with this growing nationwide trend.” Full Article
DOL’s Conflicting Versions of Independent Contractor Standard Under FLSA “In January 2021, the U.S. Department of Labor (DOL) under the Trump administration issued a final rule defining the standard for when a worker is an independent contractor for the purposes of the Fair Labor Standards Act (FLSA). This standard remains in effect, although the DOL under the Biden administration issued a new proposed rule redefining the standard in October 2022.” Full Article – Hall Benefits Law, LLC
Expanding Existing Bereavement Leave Policies to Account for Fertility Related Losses “Bereavement leave policies generally aim to provide employees with paid leave following the death of a family member. These policies, however, often fail to acknowledge the grief that employees experience upon a fertility related loss, such as a miscarriage. Fertility related losses are very common (with more than 1 in 4 pregnancies resulting in miscarriage) and frequently result in post-traumatic stress disorder (with almost 1 in 3 women developing PTSD after a miscarriage), and yet they remain largely unaddressed in the workplace.” Full Article – Mintz, Levin Cohn Ferris Glovsky and Popeo 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.
TEXAS
Employee E-Signatures in Arbitration Agreements Under Scrutiny
“Regardless of the ultimate outcome of the AutoNation case, one thing is clear—employers should have e-signature systems that leave little room for doubt about the efficacy of the security procedures, and the resulting authenticity of an employee’s e-signature.” Full Article
– Hunton Andrews Kurth LLP
NEW YORK
New York Enacts Laws on Captive Audience Meetings, Wage Theft, and Gender Identity
“During a busy term at the New York Legislature, Governor Kathy Hochul signed legislation prohibiting captive audience meetings, categorizing wage theft as larceny, and expanding protection of “gender identity or expression” to interns.” Full Article
– Jackson Lewis P.C.
CALIFORNIA
New California Non-Compete Law Furthers the State’s Employee Mobility Protections and Seeks to Void Out of State Employee Non-Compete Agreements
“On September 1, 2023, California Governor Gavin Newsom signed legislation that furthers the state’s protections for employee mobility and seeks to void out of state employee non-compete agreements. Specifically, the new law provides that any contract that is void under California law is unenforceable regardless of where and when the employee signed the contract.” Full Article
– Seyfarth Shaw LLP
WISCONSIN
Worker’s Compensation in the Work-from-Home Era
“At the onset of the COVID-19 pandemic in 2020, many employees around Wisconsin transitioned from a traditional office setting to working remotely from home. Since then, new questions have been raised by workers regarding which at-home injuries might be covered under the Worker’s Compensation Act.” Full Article
– State Bar of Wisconsin
NEW HAMPSHIRE
New Hampshire Adopts Workplace Accommodations for Nursing Mothers
“New Hampshire will guarantee the right of nursing mothers to an unpaid break of 30 minutes to pump for every three hours of work beginning July 1, 2025. This new state law comes in the wake of the 2022 federal PUMP Act, which requires employers nationwide to provide employees with reasonable break time to express breast milk for one year after a child’s birth.” Full Article
– Jackson Lewis P.C.
- Published in Blog
The RISQ RECAP:
September 11th – September 15th, 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
California Lawmakers Approve Nation’s Most Sweeping Emissions Disclosure Rules for Big Business “Major corporations from oil and gas companies to retail giants would have to disclose their direct greenhouse gas emissions as well as those that come from activities like employee business travel under legislation passed by California lawmakers, the most sweeping mandate of its kind in the nation. The legislation would require thousands of public and private businesses that operate in California and make more than $1 billion annually to report their direct and indirect emissions. The goal is to increase transparency and nudge companies to evaluate how they can cut their emissions.” Full Article – Insurance Journal
Google’s Search Dominance Challenged in Biggest Antitrust Trial in Decades “Google has exploited its dominance of the internet search market to lock out competitors and smother innovation, the Department of Justice charged Tuesday at the opening of the biggest U.S. antitrust trial in a quarter century. “This case is about the future of the internet and whether Google’s search engine will ever face meaningful competition,” said Kenneth Dintzer, the Justice Department’s lead litigator. Over the next 10 weeks, federal lawyers and state attorneys general will try to prove Google rigged the market in its favor by locking its search engine in as the default choice in a plethora of places and devices. U.S. District Judge Amit Mehta likely won’t issue a ruling until early next year. If he decides Google broke the law, another trial will decide what steps should be taken to rein in the Mountain View, California-based company.” Full Article – Insurance Journal
EMPLOYEE BENEFITS, HUMAN RESOURCES, & COMPLIANCE
Illinois Enacts Pre-Tax Commuter Benefits Requirement “Beginning January 1, 2024, certain employers located within designated Illinois counties and townships will be required to provide employees a ‘pre-tax commuter benefit.’ Employers must allow covered employees to use pre-tax dollars for the purchase of a transit pass through payroll deduction. A transit pass is any pass, token, care card, and the like entitling the employee to take public transit.” Full Article – Jackson Lewis P.C.
You May Need to Lower Employees’ Premiums to Keep Plans Affordable Under the ACA “The authors are seeing an increased focus on ACA compliance and expect to see a ramp up in employer penalty notification. A failure to consider whether your plan is affordable when passing through any premium increases could result in an unintended penalty for each employee who enrolls in exchange coverage and qualifies for financial assistance.” Full Article – Bricker Graydon
New Federal Rules Seek to Strengthen Mental Health Parity “Although MHPAEA has been in effect for more than a decade now, regulators enforcing the law have often struggled to narrow the many gaps in access between MHSUD and medical/surgical benefits …This proposed rule makes the NQTL standard more prescriptive and incorporates outcomes data, and if finalized would represent a significant step forward in MHPAEA enforcement.” Full Article – Health Affairs Forefront
District Court Dismisses Employees’ COBRA Notice Claims, Save One (Involving COVID-19) “In litigation involving an employer’s alleged notice violations under COBRA, a district court rejected almost all of the employees’ claims for why the notices were deficient. In the one claim that survived dismissal, an employee who was terminated in June 2020 alleged that the employer’s COBRA election notice failed to state an enrollment deadline that accurately reflected COVID-19-related time extensions.” Full Article – Thomson Reuters Practical Law
5 Things to Know About the New Drug Pricing Negotiations “The long-term consequences of the new policy are unknown. One theory is that reducing the prices drug companies can charge in Medicare will lead them to increase prices for the privately insured. Another theory is that Medicare price negotiations will equip private health plans to drive a harder bargain. Even though negotiated prices won’t take effect until 2026, drug companies haven’t wasted time turning to the courts to try to stop the new program in its tracks.” Full Article – KFF Health News
Circuit Court Holds ERISA Preempts State PBM Regulation “The court’s opinion distinguished the case from Rutledge v. Pharmaceutical Care Management Association (PCMA), in which the Supreme Court held that an Arkansas law requiring PBMs to tie their reimbursement rates to pharmacies’ costs was not preempted by ERISA because it did not dictate plan choices. The 10th Circuit reasoned that, whereas the Arkansas law at issue in Rutledge merely resulted in an increase of costs for the PBM, the Act goes further by potentially having a direct effect on a plan’s network design, and therefore ‘governs a central matter of plan administration.’” Full Article – Slevin & Hart, 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.
NOREGON
Oregon’s PFML Program is Going Live Soon – What Employers Need to Know
“Eligible employees may receive benefits under Oregon’s paid family and medical leave (PFML) program starting September 3, 2023 . . . This advisory provides a brief overview of PFML program basics, explains recent changes to PFML and related laws, and highlights some key considerations to help employers navigate this new program.” Full Article
– Davis Wright Tremaine LLP
NEW YORK
Reminder: New York State Pay Transparency Obligations Take Effect Sept. 17
“Employers are reminded that the New York State Pay Transparency Law goes into effect Sept. 17, 2023. Covered employers in New York State will have new pay transparency obligations related to job advertisements.” Full Article
– Jackson Lewis P.C.
FLORIDA
Inching Forward Toward Potential Clarification of Florida’s Individual Freedom Act (the “Stop W.O.K.E.” Law)
“On August 24, 2023, over a year after Florida’s Individual Freedom Act (IFA) (commonly referred to as the ‘Stop-W.O.K.E.’ law) went into effect, and about one year after a Florida federal court partially enjoined the new law, a three-judge panel for the U.S. Court of Appeals for the Eleventh Circuit Court heard argument in Florida’s attempt to dissolve the injunction and allow the law to go forward unimpeded.” Full Article
– Littler Mendelson P.C.
COLORADO
Colorado Expands Paid Sick Leave
“On Aug. 7, 2023, Colorado expanded employee rights to additional uses of paid and protected sick leave with the addition of new categories for which employees can use sick leave.” Full Article
– Brownstein Hyatt Farber Schreck LLP
MAINE
Maine Enacts Expansive Paid Family and Medical Leave Law
“The law (as amended prior to enactment), which will cover all employers with one or more employees working in Maine, establishes a state-managed program whereby employers and employees will contribute to a paid Family and Medical Leave Insurance Fund (the ‘Fund’).” Full Article
– Proskauer Rose LLP
- Published in Blog