The RISQ RECAP:
January 8th – January 12th, 2024
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
Viewpoint: Cyber Insurance Market Themes to Look Out for in 2024 “After my (relatively) successful effort in looking at 2023 cyber insurance themes, like a gambler on a streak of beginner’s luck, I wanted to have another roll of the dice in offering my thoughts on cyber insurance themes to look out for in 2024. As a hostage to my future self, the beginning of another new year is a good opportunity to set out what could be the dominant themes of the cyber insurance market as it continues to rapidly evolve and grow.” Full Article – Insurance Journal
Airlines Cleared to Inspect Grounded Boeing Jets After Mid-Air Incident “A delay in the inspection of grounded Boeing jets ended on Monday after U.S. officials retrieved a panel that blew off an Alaska Airlines 737 MAX 9 airliner and shares in the planemaker sagged on concerns over the troubled jet program. The U.S. Federal Aviation Administration has ordered the temporary grounding for checks of 171 MAX 9 jets installed with the same kind of panel that fell from the jet on Friday, which weighs about 60 pounds (27 kg) and covers an optional exit door.” Full Article – Insurance Journal
EMPLOYEE BENEFITS, HUMAN RESOURCES, & COMPLIANCE
When Will the Ball Drop? Still Waiting on the PWFA Final Regulations “We rang in the new year waiting and watching for the issuance of the EEOC’s final regulations implementing the Pregnant Workers Fairness Act (PWFA). The Office of Information and Regulatory Affairs (OIRA) received the text of the final regulations for review on December 27. Assuming that the EEOC’s final regulations clear this review, we expect the regulations to be published in the Federal Register soon.” Full Article – Jackson Lewis P.C.
NLRB Seeks to Force Reopening of Shuttered Starbucks Cafes “One of the more harsh remedies at the National Labor Relations Board’s (NLRB) disposal is forcing companies to reopen shuttered locations in the event the agency determines the decision to close those sites was driven by anti-union considerations. In the wake of the ongoing nationwide union drive at Starbucks, the coffee giant now is facing such a case.” Full Article – Barnes & Thornburg LLP
Federal and State Authorities Bring Antitrust Enforcement to the Contingent Workforce Sector Employers—Be Careful with Those Mandatory EAP Referrals! “The U.S. Department of Justice (DOJ), Federal Trade Commission (FTC), and now state attorneys general, have set their sights on staffing companies in their evolving efforts to examine labor markets through an antitrust lens. In recent years, government agencies have stepped up efforts targeting perceived restraints on competition in the labor markets.” Full Article – Littler Mendelson P.C.
Eleventh Circuit Deepens Circuit Split Over Causation Standard for FMLA Retaliation Claims “On December 13, 2023, an Eleventh Circuit panel firmly established “but-for” causation as the Circuit’s causation standard for Family and Medical Leave Act (FMLA) retaliation claims. Courts across the nation have adopted different standards, with the Eleventh Circuit decision only further deepening the circuit split on the topic.” Full Article – Proskauer Rose LLP
Court Rules EEO-1 Reports Are Not Exempt “Commercial” “Many federal contractors and subcontractors treat their EEO-1 reports as confidential because they contain detailed demographic data and workforce information. A lawsuit brought by the Center for Investigative Reporting and reporter Will Evans seeks to force a mass disclosure of EEO-1 Reports by the OFCCP. The litigation reached a critical juncture recently when a federal judge in California ruled that EEO-1 Reports are not protected from disclosure under “Exemption 4” of the Freedom of Information Act, which protects confidential “commercial” information” Full Article – Seyfarth Shaw LLP
Information Under FOIA; Department of Labor May Appeal
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.
MASSACHUSETTS
Massachusetts Revises Paid Family and Medical Leave Guidance to Provide More Discretion to Employers
“The Massachusetts Department of Family and Medical Leave (DFML) is ringing in the new year with new, more employer-friendly guidance regarding an employee’s ability to use paid leave to “top up” Paid Family and Medical Leave (PFML) benefits paid by the Commonwealth of Massachusetts.” Full Article
– Littler Mendelson P.C.
NEW JERSEY
New Jersey’s Minimum Wage Increases Starting January 1, 2024
“New Jersey’s new mandatory minimum wage requirement will be effective January 1, 2024. For most employers, the 2024 minimum wage for compensating employees will be $15.13 per hour (up from $14.13 per hour in 2023).” Full Article
– Saiber LLC
NEW YORK
New York Governor Vetoes Legislation Prohibiting Noncompete Agreements
“On December 22, 2023, Governor Kathy Hochul vetoed a bill that would have prohibited almost all noncompete agreements in employment contracts in New York.” Full Article
– Duane Morris LLP
MARYLAND
Maryland Minimum Wage Increases January 1, 2024
“Maryland employees who earn minimum wage are ringing in the New Year in 2024 with a raise. As we reported in an earlier article, Maryland passed legislation in 2019 that would gradually increase the minimum wage from $11.00 per hour to $15 per hour by January 1, 2025. In May 2023, however, the General Assembly passed the Fair Wage Act of 2023, accelerating the schedule so that the minimum wage will now be $15 effective on January 1, 2024.” Full Article
– Gordon Feinblatt LLC
CALIFORNIA
Ring In 2024 With California’s Updated Paid Sick Leave FAQs!
“Out with the old, and ring in the new! Effective January 1, 2024, California’s amended Paid Sick Leave (“PSL”) law goes into effect. As detailed in our prior update, the amendments increase the annual amount of California paid sick leave from 3 days or 24 hours, to the greater of 5 days or 40 hours for eligible employees. The amendments also raise the accrual and year-end carryover cap from 6 days or 48 hours to the greater of 10 days or 80 hours.” Full Article
– Seyfarth Shaw LLP
- Published in Blog
8 Tips for Modernizing Hiring in 2024
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.
As talent acquisition continues to evolve, staying ahead of the curve is crucial for organizations aiming to attract and retain top-tier talent. Last year highlighted labor shortages, looming retirements and a demand for evolving skills. As 2024 begins, the traditional hiring approaches are being reshaped by technology, remote work dynamics and shifting employee expectations.
This article explores strategies for employers to modernize their hiring practices in 2024.
Navigating the Future of Hiring
Modernizing hiring practices enhances an organization’s ability to attract, recruit and retain top talent in a competitive environment. As job seeker’s expectations shift and many leverage technology to find their next job, employers can consider these eight tips for modernizing their hiring process this year:
- Evaluate diversity, equity, inclusion and belonging (DEIB). DEIB programs are increasingly shifting to support the acceptance of individuals and focus on fostering a sense of belonging in the workplace. A diverse and inclusive hiring strategy—and overall employer brand—can help attract candidates. To be impactful, DEIB has to be a part of an organization’s foundation, including hiring practices—not just initiatives or programs.
- Emphasize skills over educational degrees. Skills-based hiring isn’t just an aspirational idea; some employers are already taking note and prioritizing finding the right fit for open positions based on skills rather than education or experience. Organizations can take time to review which positions have a legitimate need for a four-year degree or certification and which ones need the appropriate skills. This hiring practice can help expand the talent pool, improve workplace diversity and decrease hiring time.
- Embrace artificial intelligence (AI). Employers can leverage the power of AI to streamline their hiring process. AI-driven tools can analyze resumes, assess candidate fit and even conduct initial interviews. By automating routine tasks, HR professionals can focus on strategic aspects of recruitment, fostering a more efficient and insightful hiring process. AI can also help personalize candidate engagement by sending tailored messages and recommended or relevant job openings. While AI has its advantages, it’s also important to be aware of the technology’s risks and dangers (e.g., bias and discrimination).
- Leverage data-driven decision-making. Employers can harness the power of people analytics to inform their hiring decisions. Analyze recruitment data to identify trends, optimize sourcing strategies and enhance the candidate experience. By leveraging data-driven insights, hiring teams can make informed decisions that better contribute to the overall success of their hiring efforts.
- Incorporate gamification into skills assessment processes. Gamified assessments provide a more engaging and interactive experience for candidates, allowing hiring teams to assess candidate skills in a dynamic and real-world context. This can enhance the evaluation process and showcase the organization as forward-thinking and innovative.
- Enhance the candidate experience with technology. Technology can help streamline communication, provide timely feedback and offer transparency throughout the hiring process. A positive candidate experience not only attracts top talent but also enhances the employer brand, creating a ripple effect in the talent market.
- Leverage the right online portals. Virtual recruiting can help employers find the applicants they’re looking for. Furthermore, online platforms—such as LinkedIn, Indeed, Handshake and more—can make it easy for applicants to apply directly.
- Offer incentives with employee referral programs. Employers can empower their current employees to become brand ambassadors. Millennial and Generation Z candidates generally trust and value word-of-mouth referrals, whether for employment or shopping, so employers could amp up referral efforts to attract this demographic. Employee referral program incentives aren’t new, but they can be modernized to appeal to millennial and Generation Z candidates. As such, employers may consider offering monetary bonuses, paid time off, learning and development opportunities (e.g., covering the cost of attending a conference or training), or charity donations that may motivate younger workers.
While maybe not applicable to every open role, these strategies can give employers new tools to revamp their hiring processes. It comes down to building a competitive advantage to stand out to job candidates.
Summary
As the digital age progresses, staying ahead of the latest HR trends and technologies is imperative for modernizing the hiring process. By embracing AI and other technologies, prioritizing DEIB and leveraging data-driven insights, employers can attract top talent in 2024 and build a future-ready workforce.
Contact us today for more workplace guidance.
- Published in Blog
The RISQ RECAP:
December 18th – December 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
Companies Are Still Trying to Figure Out How to Comply With SEC Cyber Rules “Some public companies are still trying to figure out how to comply with new rules from the US Securities and Exchange Commission requiring speedy disclosure of significant cyberattacks. Those rules, which kicked in Monday, require companies to report cyber incidents within four business days of determiningthey are “material” to shareholders. The SEC previously required firms to disclose major events that would be of shareholder interest, but didn’t specify cyber events.” Full Article – Insurance Journal
Flooding Drives Millions to Move as Climate Migration Patterns Emerge “Flooding is driving millions of people to move out of their homes, limiting growth in some prospering communities and accelerating the decline of others, according to a new study that details how climate change and flooding are transforming where Americans live. In the first two decades of the 21st century, the threat of flooding convinced more than 7 million people to avoid risky areas or abandon places that were risky, according to a paper Monday in the journal Nature Communications and research by the risk analysis organization First Street Foundation.” Full Article – Insurance Journal
EMPLOYEE BENEFITS, HUMAN RESOURCES, & COMPLIANCE
Health & Welfare Benefits Monthly Update, December 2023 (PDF) “Topics: [1] Year-end Washington update; [2] End of the Public Health and National Emergencies and Outbreak Period; [3] Developments in prescription drug coverage; [4] CAA, 2021 Updates: TiC and IDR; [5] Preventive services developments; [6] HIPAA developments; [7] 2023 Mental Health Parity proposed regulations; and [8] Grab bag report and reminders.” Full Article – Alston & Bird
Data Theft Was Not Necessarily “Gross Misconduct” That Would Preclude COBRA Coverage (PDF) “The court acknowledged that prior case law has established that criminal theft indisputably constitutes gross misconduct but noted that the former employees had not admitted to stealing the data and the city had not offered admissible evidence proving the employees’ actions.” Full Article – Thomson Reuters / EBIA
The ERISA Edit: More Litigation Involving Health Plan Savings Fees “This case is one of a growing number of lawsuits alleging improper self-dealing by third-party administrators (TPAs) for charging ‘savings fees’ to self-funded plans based on alleged savings achieved for the plans through the TPAs’ processing of out-of-network claims.” Full Article – Miller & Chevalier Chartered
Participant May Sue Plan for Facial Feminization Surgery Coverage “The court determined that the participant had presented facts sufficient to show that the plan had applied its cosmetic procedure exclusion in a discriminatory manner. It explained that the facts alleged by the participant show that the plan’s denial of coverage for the surgery was based, at least in part, on considerations of gender stereotypes and gender conformity or nonconformity.” Full Article – The Wagner Law Group
Signed, Sealed, Delivered … Have You Completed Your Plan’s “No Gag Clauses” Attestation? “All group health plans, whether fully insured or self-insured, are required to submit an attestation to CMS confirming that the plan has been compliant with the prohibition on gag clauses since December 27, 2020. This must be completed by December 31, 2023, and annually thereafter. Plans are permitted to contract with their TPA or carrier to complete the gag clause reporting on behalf of the plan.” Full Article – Holland & Hart LLP
Continuation of Health Benefits on Unpaid Leaves Can Cause Stop Loss Coverage Headaches “Unless the employer wants to modify its handbook and plan documents (and for self- funded plans, stop loss coverage) to provide continued active coverage during an unpaid leave, the employer instead should consider categorizing the coverage during the unpaid leave as COBRA coverage. Failure to do so could result in the stop loss carrier or insurance company denying claims during the period of the unpaid leave, as the employee was not actively at work, on a protected leave, or on COBRA.” Full Article – Haynes and Boone, 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.
ILLINOIS
Not to be Outdone by the State of Illinois, Chicago Passes A New Paid Leave Ordinance, Which Doubles the Amount of Paid Leave Available to Eligible Employees
“On November 9, 2023, the City of Chicago passed its Chicago Paid Leave and Paid Sick and Safe Leave Ordinance (“Ordinance”), which goes into effect on December 31, 2023, and replaces the City’s current PSL Ordinance.” Full Article
– Michael Best & Friedrich LLP
NEW YORK
New York Governor Hochul Rejects Wholesale Ban on Non-Compete Agreements
“Governor Kathy Hochul answered the long-awaited question of whether New York would join California, North Dakota, Oklahoma and, most recently Minnesota, as a state banning the use of non-compete agreements between employers and employees. While New York legislators passed a bill to do just that in June, yesterday, Governor Hochul announced that she would not be signing it.” Full Article
– Seyfarth Shaw LLP
ALABAMA
New Alabama Law Exempts 2024 Overtime Pay from State Taxation
“Beginning Jan. 1, 2024, hourly paid employees in Alabama will not pay any state income tax on their overtime pay. The new law effectively gives hourly employees a 5% pay raise (the state income tax rate), but it also creates new administrative and reporting requirements for their employers.” Full Article
– Phelps Dunbar LLP
CALIFORNIA
California Employees Entitled to up to 20 Days of Reproductive Loss Leave
“California employers with five or more employees must provide to employees who have worked for at least 30 days before the start of leave up to five days per event for each of the following reproductive loss events: miscarriage; failed adoption; failed surrogacy; stillbirth; and unsuccessful assisted reproduction (artificial insemination including gamete and embryo donation).” Full Article
– Gordon Rees Scully Mansukhani LLP
MASSACHUSETTS
Massachusetts PFML Update: DFML Releases 2024 Poster and Updated Employee Notices
“The 2024 poster and updated template notice forms are now available on the Department of Family and Medical Leave’s (DFML’s) website. The DFML has also updated the PFML notice employers must provide to new employees to address the recent amendments to the PFML Act.” Full Article
– Seyfarth Shaw LLP
- Published in Blog
The RISQ RECAP:
December 11th – December 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
Higher Auto Claims, More Frequent Accidents Continue to Outpace Premium Hikes “As claim severity rises, US personal auto results are on the decline, according to AM Best’s latest Market Segment Report. The 112.2 net combined ratio in 2022 for personal auto was an almost 11-point deterioration from 101.5 in 2021, and about ten points over the ten-year average and median combined ratios for the line.” Full Article – Insurance Journal
Costs of Small Business Cyberattacks Are Down But Frequency Is Up, Says Hiscox “The less-than-encouraging news: Only a third (33%) of US small businesses consider cyber risk high or very high. The somewhat encouraging news: 53% of U.S. small businesses have either a standalone cyber insurance policy or have cyber coverage through another policy. The annual Hiscox Cyber Readiness Report, which gauges businesses’ preparedness to combat cyber incidents and breaches, surveyed over 5,000 cyber security professionals across the globe, including more than 500 small business professionals in the U.S.” Full Article – Insurance Journal
EMPLOYEE BENEFITS, HUMAN RESOURCES, & COMPLIANCE
Can AI Provide the Magic Medicine for Corporate Cutting? “Spotify announced this week, through a very public memo to its employees, its plan to layoff about 17% of its workforce. In so doing, Spotify joins a number of other technology companies that have recently announced restructuring plans on the heels of overly robust pandemic-driven hiring.” Full Article – Mintz Levin Cohn Ferris Glovsky and Popeo PC
How Organizations Can Prepare for the DOL $55K Overtime Rule “The Department of Labor has proposed new rules that, if adopted, would update the regulations to reflect new compensation requirements for employees who are exempt from overtime pay. The proposed rule increases the Fair Labor Standards Act (FLSA)’s regulatory salary threshold for overtime eligibility from about $35,000 to about $55,000.” Full Article – Powers Pyles Sutter & Verville PC
It’s the Holiday Season, and the NLRB is the Union-Friendly Gift That Keeps on Giving “As we reflect on the many decisions that the National Labor Relations Board (NLRB or the Board) has handed down this year (many of which are unfavorable to employers), now is the perfect time to ensure that your organization is up to date on the most impactful cases of the year and the NLRB’s controversial position on certain issues.” Full Article – Baker Hostetler LLP
An Applicant’s Family Medical History? Apparently, That’s the Million Dollar Question! “As most employers (hopefully) know, the Americans with Disabilities Act sets forth strict guidelines for when employers can require employees or applicants to undergo medical examinations or when they can ask questions that might reveal a disability. And the Genetic Information Nondiscrimination Act restricts what employers can ask about the applicant/ employee’s family medical conditions.” Full Article – Shawe Rosenthal LLP
Don’t Be a Grinch About Holiday Celebrations “Deck the halls with boughs of holly….well maybe not at work. While some employers embrace the holiday season, others may choose not to celebrate to avoid legal issues. However, celebrating the holidays can be a great way of fostering a positive culture or sense of community in the workplace. Here are some practical tips on how employers can grow their hearts this holiday season without upsetting all the Whos in WhoVille.” Full Article – Dickinson Mackaman
Employers—Be Careful with Those Mandatory EAP Referrals! “As part of the corrective action process, some employers require employees to go to a company-provided Employee Assistance Program (EAP). Such programs are intended to offer resources and support to employees for their personal issues on a confidential basis, at no cost to the employee. The scope of services is wide, including health, financial and social issues. And to the extent that a mandatory EAP referral is related to an employee’s health, that that can trip up employers, as a recent announcement from the Equal Employment Opportunity Commission highlighted.” 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.
ILLINOIS
Not to be Outdone by the State of Illinois, Chicago Passes A New Paid Leave Ordinance, Which Doubles the Amount of Paid Leave Available to Eligible Employees
“On November 9, 2023, the City of Chicago passed its Chicago Paid Leave and Paid Sick and Safe Leave Ordinance (“Ordinance”), which goes into effect on December 31, 2023, and replaces the City’s current PSL Ordinance.” Full Article
– Michael Best & Friedrich LLP
NEW YORK
New York Governor Hochul Rejects Wholesale Ban on Non-Compete Agreements
“Governor Kathy Hochul answered the long-awaited question of whether New York would join California, North Dakota, Oklahoma and, most recently Minnesota, as a state banning the use of non-compete agreements between employers and employees. While New York legislators passed a bill to do just that in June, yesterday, Governor Hochul announced that she would not be signing it.” Full Article
– Seyfarth Shaw LLP
ALABAMA
New Alabama Law Exempts 2024 Overtime Pay from State Taxation
“Beginning Jan. 1, 2024, hourly paid employees in Alabama will not pay any state income tax on their overtime pay. The new law effectively gives hourly employees a 5% pay raise (the state income tax rate), but it also creates new administrative and reporting requirements for their employers.” Full Article
– Phelps Dunbar LLP
CALIFORNIA
California Employees Entitled to up to 20 Days of Reproductive Loss Leave
“California employers with five or more employees must provide to employees who have worked for at least 30 days before the start of leave up to five days per event for each of the following reproductive loss events: miscarriage; failed adoption; failed surrogacy; stillbirth; and unsuccessful assisted reproduction (artificial insemination including gamete and embryo donation).” Full Article
– Gordon Rees Scully Mansukhani LLP
MASSACHUSETTS
Massachusetts PFML Update: DFML Releases 2024 Poster and Updated Employee Notices
“The 2024 poster and updated template notice forms are now available on the Department of Family and Medical Leave’s (DFML’s) website. The DFML has also updated the PFML notice employers must provide to new employees to address the recent amendments to the PFML Act.” Full Article
– Seyfarth Shaw LLP
- Published in Blog
The RISQ RECAP:
December 4th – December 8th, 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
23andMe Says Health Data Was Included in Hack That Compromised 6.9 Million Users “Some 6.9 million 23andMe customers had their data compromised after an anonymous hacker accessed user profiles and posted them for sale on the internet earlier this year, the company said on Monday. The compromised data included users’ ancestry information as well as, for some users, health-related information based on their genetic profiles, the company said in an email.” Full Article – Insurance Journal
Cybersecurity: An Ounce of Prevention is Worth a Pound of Cure “Benjamin Franklin was a big fan of insurance, but he might have been a bit nonplussed if someone had given him a preview of the industry in 2023. Risks have changed, and one of the big ones businesses face in this century (and insurance businesses doubly so) is cybersecurity. Insurance carriers, in this case, often sit on both sides of the table. Carriers may insure against cyber threats, and regardless of their line of business, also need robust cyber protection.” Full Article – Insurance Journal
EMPLOYEE BENEFITS, HUMAN RESOURCES, & COMPLIANCE
Year-End “To Do’s”: Reminders for Your Company’s Retirement and Health and Welfare Plans “As the year is quickly coming to an end, it is critical that plan sponsors set some time aside to review and confirm operational and administrative practices throughout the year. As appropriate, operational errors may be corrected and documented before the close of the year with significantly reduced consequences.” Full Article – Husch Blackwell LLP
U.S. Health Insurers Humana, Cigna in Talks to Merge-Source “U.S. health insurer Cigna is in talks to merge with peer Humana, a deal that could exceed $60 billion in value and would be certain to attract fierce antitrust scrutiny. Cigna and Humana, which have market values of $77 billion and $59 billion, respectively, currently have limited business overlap, concentrated in Medicare plans for older Americans. Humana’s Medicare business is much bigger and more profitable than Cigna’s.” Full Article – Reuters
District Court Allows Participant’s Gender Dysphoria Claims Involving Facial Feminization Surgery to Proceed “In litigation under Section 1557 of the ACA, a Pennsylvania district court concluded that a health plan participant plausibly alleged that the plan insurer’s coverage denial for facial feminization surgery and related procedures was intentionally discriminatory based on sex in violation of Title IX of the Education Amendments of 1972.” Full Article – Thomson Reuters
HIPAA Privacy Rule Changes: Just in Time for the New Year? “In 2021, HHS proposed changes to the HIPAA Privacy Rule that would significantly alter the current regulations. The Proposed Rules are supposed to be finalized in 2023. The proposed changes to the Privacy Rule that should most concern group health plan sponsors fall into two general categories: [1] changes that increase the right of individuals to access their PHI, and [2] changes that allow covered entities and business associates to share PHI more easily while safeguarding against a breach.” Full Article – Verrill Dana LLP
The Changing Nature of Primary Care Visits “Among users of primary care, 95-97 percent utilized it in an office setting prior to 2020, but only – Employee Benefit Research Institute
86 percent did so from 2020-2021 as employees began using telemedicine (7-8 percent) and urgent care clinics (3-4 percent) with greater frequency due to the COVID-19 pandemic. There has been a consistent downward trend in the share of employees whose primary care office visits are at a general/family practice, falling from 42 percent in 2013 to 37 percent in 2021.” Full Article
The ERISA Edit: Tenth Circuit Denies Elements of a MHPAEA Claim “To state a claim under MHPAEA, the court said a plaintiff must: [1] Plausibly allege that the relevant group health plan is subject to MHPAEA. [2] Identify a specific treatment limitation applied to MH/SUD benefits covered by the plan. [3] Identify M/S benefits covered by the plan that are analogous to the MH/SUD care for which the plaintiff seeks benefits. [4] Plausibly allege a disparity between the treatment limitation on the MH/SUD benefits as compared to those placed upon the analogous M/S benefits.” Full Article – Miller & Chevalier Chartered
STATE & INTERNATIONAL COMPLIANCE
In addition to the RISQ Review, RISQ Consulting also provides a resource that features changes and updates to State and International Compliance measures. We’ve included brief summaries of each item below, and also provided links to the original articles if you’d like to read further.
NEW YORK
New York Employers Beware: New Employment Laws Are in Effect and On the Horizon
“New York lawmakers have been busy enacting a number of laws and regulations in 2023 that impose new requirements on employers, several of which have recently taken effect. New York employers may need to update their policies, agreements, and practices to comply with the new laws, as summarized below.” Full Article
– Covington & Burling LLP
ILLINOIS
Chicago Employers Must Provide Employees 10 Days of Paid Time Off Starting Jan. 1, 2024
“On Nov. 9, 2023, the Chicago City Council passed the Chicago Paid Leave and Paid Sick and Safe Leave Ordinance, requiring Chicago employers to double the amount of paid time off employees currently receive. In addition to 40 hours of paid sick leave, Chicago employers must now provide an additional 40 hours of paid leave per year to be used for any purpose.” Full Article
– Taft Stettinius & Hollister LLP
MICHIGAN
Michigan’s Right-to-Work Repeal Now Effective Mid-February
“Employees may be required to financially support unions in Michigan a bit sooner than originally anticipated. For the past decade, employees in Michigan could not be forced by union contracts to join or financially support any labor organization as a condition of employment. The Michigan legislature became the first state in almost 60 years to repeal its right-to- work law earlier this year.” Full Article
– Barnes & Thornberg LLP
CALIFORNIA
California Expands its Ban on Noncompetes
“Noncompete agreements have long been void under California Business and Professions Code § 16600. Now, Senate Bill (SB) 699 and Assembly Bill (AB) 1076 intensify California’s prohibition of such agreements and create a private right of action for employees whose agreements include restrictive covenants.” Full Article
– Vorys, Sater, Seymour and Pease LLP
WASHINGTON
Washington’s Minimum Wage Increases January 1, 2024—Here’s Everything Employers Should Know
“Washington’s minimum wage will increase to $16.28 per hour beginning January 1, 2024, according to the Washington State Department of Labor and Industries (L&I). Several cities in Washington will require even higher increases.” Full Article
– Davis Wright Tremaine LLP
- Published in Blog
The Impact of Culture on Safety: Why Rules Only Get You So Far
Nov 30th, 2023
November 30th, 2023 at 7:30 AM AKDT
Description | The Safety Culture of all organizations creates the observed results regardless of rules. Learn why rules only get you so far and how to create a culture of safety in your organization.
Presenter | Mason Mimnaugh and Paul Bragenzer
Here is the registration link | Register HERE
- Published in Events
The RISQ RECAP:
November 20th – November 24th, 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
Tesla Launched its Own Car Insurance. These Drivers Say it’s a Lemon. “In February, Mark Bova purchased a used 2018 Tesla Model S. Before leaving the dealer, he bought insurance from Tesla, finding the initial $93 monthly premium “really reasonable.” Sixteen days later, as he drove along the Capital Beltway to his Maryland home, he engaged Autopilot, Tesla’s automated driving system. The car started beeping and lurched left — striking a median and flipping. He escaped through a window as the car filled with smoke. An ambulance rushed him to the hospital with back injuries that later required surgery.” Full Article – Insurance Journal
Schools Look to Improve Cybersecurity, but Many Vulnerable to Ransomware “Some K-12 public schools are racing to improve protection against the threat of online attacks, but lax cybersecurity means thousands of others are vulnerable to ransomware gangs that can steal confidential data and disrupt operations. Since a White House conference in August on ransomware threats, dozens of school districts have signed up for free cybersecurity services, and federal officials have hosted exercises with schools to help them learn how to better secure their networks, said Anne Neuberger, the Biden`s administration`s deputy national security advisor for cyber and emerging technology.” Full Article – Insurance Journal
EMPLOYEE BENEFITS, HUMAN RESOURCES, & COMPLIANCE
Bringing It All Together — Health and Welfare Plan Fiduciary Compliance Reviews “Fiduciaries should strive to mitigate risks proactively by formalizing a fiduciary compliance review process. A solid process involves evaluating plan documents, participant communications, service provider agreements, and service provider performance to identify potential risks. Making corrections and taking steps to minimize risk can help reduce the chance of costly litigation in the future.” Full Article – Nixon Peabody
11th Circuit Affirms District Court’s Approval of the BCBSA $2.67 Billion Settlement “Employers should be aware that they may have fiduciary duties under ERISA with respect to the use of any proceeds from the settlement fund…. Unless specific guidance is issued related to the BCBSA settlement, employers may want to use the [DOL’s] MLR guidance as a reference when determining how to calculate what portion of the BCBSA settlement proceeds should be considered ‘plan assets,’ and how those funds can be used.” Full Article – Miller Johnson Snell & Cummiskey P.L.C.
Draft of 2024 IRS Publication 15-B: Employer’s Tax Guide to Fringe Benefits (PDF) “35 pages; Nov. 17, 2023. “What’s New: [1] Cents-per-mile rule [2] Qualified parking exclusion and commuter transportation benefit [3] Contribution limit on a health flexible spending arrangement.” Full Article – Internal Revenue Service (IRS)
Self-Insured Health Plans: Adjusted PCORI Fee Announced for 2024 “For plans with plan years that ended on or after October 1, 2023, and before October 1, 2024, the fee is $3.22 per covered life. Employers who maintain self-insured health plans and HRAs … need not pay a separate PCORI fee for HRA-covered lives. However, employers who provide coverage through a fully insured plan … and an HRA must pay a PCORI fee based on the HRA.” Full Article – Jackson Lewis P.C.
The Proposed MHPAEA Regulations: A Comment on the Comments “A comment letter from the Brookings Institution] expresses concern over the depth of the analysis that is required for each NQTL [and] provides a useful schematic that fleshes out the particulars. The schematic makes the point that a substantial amount of effort is involved in demonstrating compliance for a single NQTL and all steps must be repeated for each additional NQTL.” Full Article – McDermott Will & Emery
In An Era of Premium and Provider Price Increases, State Employee Health Plans Target Key Cost Drivers “The agencies that purchase health insurance for [the more than 15 million] public employees … are often the largest commercial purchaser of health care services in their state and therefore have market power to exert pressure on insurance companies and providers. Their efforts to shift health plan and provider behaviors and encourage greater efficiencies can have ripple effects for other commercial purchasers.” Full Article – Health Affairs Forefront
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
Amendments to California’s Retaliation Law Lighten the Burden for Employees
“Governor Gavin Newsom signed Senate Bill (SB) No. 497 into law. SB No. 497, also referred to as the Equal Pay and Anti-Retaliation Protection Act, amends California Labor Code Sections 98.6, 1102.5, and 1197.5 to lessen the burden for employees attempting to establish a prima facie case of retaliation.” Full Article
– Crowell & Moring LLP
NEW YORK
How Harassment Complaints Are Handled by NYS’s Division of Human Rights
“Although intended to be less intimidating than a court proceeding, the process by which the New York State Division of Human Rights (the Division) handles complaints can be opaque and intimidating to many individuals, employers and other organizations. This article is intended to demystify things a bit.” Full Article
– Levy Employment Law, LLC
Revisions to New York Unemployment Notice to Take Effect
“Governor Kathy Hochul has signed a bill amending Section 590 of the New York Labor Law to require employers to provide employees, upon separation, with notice of their right to file for unemployment benefits with the New York Department of Labor (NYDOL). These changes will take effect on November 13, 2023.” Full Article
– Seyfarth Shaw LLP
ALABAMA
Changes to Alabama’s Tax Laws Impose New Reporting Requirements on Employers
“Three new rules will take effect this year that alter the overtime wages subject to Alabama withholding tax and employers’ requirements in reporting those newly exempt wages. On October 31, 2023, the Alabama Department of Revenue’s Income Tax Administration issued three final rules that take effect December 3, 2023, and will cover all tax years beginning after December 31, 2023, and ending prior to June 30, 2025.” Full Article
– Littler Mendelson P.C.
ILLINOIS
Proposed Regulations for the Illinois Paid Leave for All Workers Act Offer Employers a Mixed Bag for Compliance
“The Illinois Department of Labor (IDOL) published much anticipated proposed regulations interpreting the Illinois Paid Leave for All Workers Act (the “Act”) set to take effect January 1, 2024. The Act will require nearly all covered Illinois employers to provide its covered employees up to 40 hours of paid leave per year, to be used ‘for any purpose.’” Full Article
– Littler Mendelson P.C.
- Published in Blog
The RISQ RECAP:
November 13th – November 17th, 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
US Contractors, Insurers Overlooking Some Safety Improvements in Construction “Many American construction firms are failing to implement obvious and inexpensive safety measures that could save lives, reduce injuries and avoid costly insurance claims. And many insurers are not nudging their insured contractors to be proactive and preventive. “It’s usually not until after the fact, after something happens,” said TJ Lyons, a safety consultant who spoke Tuesday at the International Risk Management Institute’s 43rd Annual Construction Risk Conference in Orlando.” Full Article – Insurance Journal
Dash Cams in Fleet Vehicles are Key to Avoiding Nuclear Verdicts, Risk Managers Say “Cameras. One showing the driver and another facing forward. Those can be the keys to avoiding nuclear verdicts after auto and truck crashes, especially for companies with fleets of vehicles and relatively inexperienced drivers, two Crum & Forster risk executives said Monday at the International Risk Management Institute’s Annual Construction Risk Conference. “Fleet liability has not been profitable for insurers for a long time,” said Paul Anderson, vice president of field underwriting for the national group of property/casualty insurance companies.” Full Article – Insurance Journal
EMPLOYEE BENEFITS, HUMAN RESOURCES, & COMPLIANCE
Can An Employer Fire Me for My Speech Outside Work? “Absolutely yes – depending on the circumstances. While we have grown up with the notion that free speech is sacrosanct in this country, the First Amendment actually only prohibits the government from restricting individuals’ speech. The restriction on censorship does not extend to private employers and, to be clear, not-for-profit organizations are also private employers.” Full Article – Levy Employment Law, LLC
An Early Report on How the Supreme Court’s Affirmative Action Admissions Policies Decision is Impacting the Private Sector “In Students for Fair Admissions v. Harvard, 600 U.S. (June 29, 2023) (SFFA), the United States Supreme Court struck down the legality of affirmative action programs within the university setting, holding that universities may not use race by itself as a “plus factor” in college admissions decisions.” Full Article – Whiteford, Taylor & Preston LLP
Engage the Workplace With A Military Mindset “The WSJ piece about the benefit of hiring drill sergeants to double down on productivity and reduce whining makes some good points about how the private sector can profit from hiring military veterans. But the piece misses some important points about how veteran-driven values and skills can address employee engagement, a key private sector concern.” Full Article – Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.
EEOC Settles Landmark AI Discrimination Workplace Suit “The U.S. Equal Employment Opportunity Commission (EEOC) has settled its first discrimination lawsuit involving artificial intelligence (AI) in a New York federal district court. The EEOC and iTutorGroup filed a joint settlement, which provides that the tutoring company will pay $365,000 to resolve the charges against it. The EEOC alleged that iTutor’s AI hiring selection tool illegally screened out female applicants over the age of fifty-five and male applicants over the age of sixty.” Full Article – Hall Benefits Law, LLC
Increased Protection for Employees Who Blow the Whistle on Workplace Safety “The National Labor Relations Board (NLRB) and the Occupational Safety Health Administration (OSHA) recently memorialized their collaborative agreement to engage in information sharing between the agencies regarding the National Labor Relations Act (NLRA) and the Occupational Safety and Health Act of 1970 (OSH Act), namely its anti-retaliation provision and other whistleblower provisions.” Full Article – Barnes & Thornburg LLP
How the Federal Government’s AI Risk Management Practices Will Set the Standard: A Closer Look At Government Action Following President Biden’s Executive Order “The White House announced the formation of the ‘US AI Safety Institute’ within the Commerce Department’s technology arm, the NIST. The Institute has been directed to develop technical guidance used by regulators, such as the EEOC, considering rulemaking and enforcement on discrimination related to AI. The White House has also released for public comment draft guidance relating to the federal government’s use of AI.” 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.
CALIFORNIA
Amendments to California’s Retaliation Law Lighten the Burden for Employees
“Governor Gavin Newsom signed Senate Bill (SB) No. 497 into law. SB No. 497, also referred to as the Equal Pay and Anti-Retaliation Protection Act, amends California Labor Code Sections 98.6, 1102.5, and 1197.5 to lessen the burden for employees attempting to establish a prima facie case of retaliation.” Full Article
– Crowell & Moring LLP
NEW YORK
How Harassment Complaints Are Handled by NYS’s Division of Human Rights
“Although intended to be less intimidating than a court proceeding, the process by which the New York State Division of Human Rights (the Division) handles complaints can be opaque and intimidating to many individuals, employers and other organizations. This article is intended to demystify things a bit.” Full Article
– Levy Employment Law, LLC
Revisions to New York Unemployment Notice to Take Effect
“Governor Kathy Hochul has signed a bill amending Section 590 of the New York Labor Law to require employers to provide employees, upon separation, with notice of their right to file for unemployment benefits with the New York Department of Labor (NYDOL). These changes will take effect on November 13, 2023.” Full Article
– Seyfarth Shaw LLP
ALABAMA
Changes to Alabama’s Tax Laws Impose New Reporting Requirements on Employers
“Three new rules will take effect this year that alter the overtime wages subject to Alabama withholding tax and employers’ requirements in reporting those newly exempt wages. On October 31, 2023, the Alabama Department of Revenue’s Income Tax Administration issued three final rules that take effect December 3, 2023, and will cover all tax years beginning after December 31, 2023, and ending prior to June 30, 2025.” Full Article
– Littler Mendelson P.C.
ILLINOIS
Proposed Regulations for the Illinois Paid Leave for All Workers Act Offer Employers a Mixed Bag for Compliance
“The Illinois Department of Labor (IDOL) published much anticipated proposed regulations interpreting the Illinois Paid Leave for All Workers Act (the “Act”) set to take effect January 1, 2024. The Act will require nearly all covered Illinois employers to provide its covered employees up to 40 hours of paid leave per year, to be used ‘for any purpose.’” Full Article
– Littler Mendelson P.C.
- Published in Blog
The RISQ RECAP:
November 6th – November 10th, 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
Right Turn on Red? With Pedestrian Deaths Rising, US Cities Are Considering Bans “Sophee Langerman was on her way to a bicycle safety rally in Chicago’s Lakeview neighborhood in June when a car turning right rolled through a red light and slammed into her bike, which she was walking off the curb and into the crosswalk. The car was moving slowly enough that Langerman escaped serious injury, but the bicycle required extensive repairs. To Langerman, it`s another argument for ending a practice that almost all U.S. cities have embraced for decades: the legal prerogative for a driver to turn right after stopping at a red light.” Full Article – Insurance Journal
Three Passengers Sue Alaska Airlines After Off-Duty Pilot Accused of Trying to Cut Engines “Three passengers sued Alaska Airlines, saying they suffered emotional distress from an incident last month in which an off-duty pilot is accused of trying to shut down the engines of a plane while catching a ride in the cockpit from Washington state to San Francisco. In the complaint filed Thursday in King County Superior Court in Washington state, San Francisco residents Matthew Doland and Theresa Stelter and Paul Stephen of Kenmore, Washington, alleged that the pilot should never have been allowed in the cockpit because he was suffering from depression and a lack of sleep.” Full Article – Insurance Journal
EMPLOYEE BENEFITS, HUMAN RESOURCES, & COMPLIANCE
Winston & Strawn LLP: Benefits Bulletin — IRS Increases PCORI Fees Payable in 2024 “The new Patient Centered Outcomes Research Institution (PCORI) fee for policy and plan years that end on or after October 1, 2023 and before October 1, 2024 is $3.22; an increase of $0.22 per covered life as compared to the PCORI fee assessed on or after October 1, 2022 and before October 1, 2023.” Full Article – Winston & Stawn LLP
Self-Funded Plan’s Guide to Gender-Affirming Coverage “Whether or how a group health plan (GHP) should cover gender-affirming care is a complex and evolving legal issue. This is especially true of self-funded GHPs, which are generally not subject to the nondiscrimination provisions of the Affordable Care Act (ACA). Both state and federal law are still unsettled. Self-funded GHP sponsors must carefully consider numerous legal factors.” Full Article – Hall Benefits Law
ACA Reporting Benefits Brief “The reporting requirements under the Affordable Care Act (ACA) have been in effect since 2015. Many employers are already familiar with the rules. However, some employers, particularly those that have grown in size, may lack clarity regarding their reporting obligations under the law. As the deadlines for the 2023 ACA reporting roll near, it is important to review the basics of reporting, including any changes that may be applicable for the 2023 reporting year.” Full Article – Acrisure, LLC
Reminder: Gag Clause Attestations Due by Year-End “[1] Review applicable contracts to ensure that they do not contain prohibited gag clauses. [2] If the group health plan is fully insured, confirm that the insurer will make the Attestation on behalf of the plan. [3] If the group health plan is self-insured, it may be possible to delegate the responsibility for completing the Attestation to the plan’s TPA. [4] Review existing agreements with insurers/ TPAs to ensure that the agreement includes a ‘compliance with applicable law’ provision.” Full Article – Faegre Drinker Biddle & Reath LLP
Agencies Propose Extensive Modifications to Regulations Implementing Surprise Billing IDR “Several provisions of both the interim final and final regulations, as well as related agency guidance, have been vacated in a series of cases brought by an association of health care providers. In response, the agencies recently issued proposed regulations addressing IDR fee issues raised by the litigation and, among other things, partially shut down and reopened the federal IDR portal multiple times. The agencies now propose additional regulations to adjust the IDR process and change the fee structure. Here are highlights.” Full Article – Thomson Reuters / EBIA
Fact Sheet #66e: The Davis-Bacon and Related Acts — Compliance with Fringe Benefit Requirements “The following practices may lead to violations under the DBRA, resulting in failure to pay the applicable prevailing wage rate: [1] Misclassifying laborers and mechanics for the type of work performed; [2] Failing to obtain prior approval from the DOL for unfunded fringe benefit plans; [3] Failing to annualize (or incorrectly annualizing) the hourly equivalent of fringe benefit amounts. [4] Paying hourly rates and/or fringe benefit amounts pursuant to a Collective Bargaining Agreement (CBA), where the CBA specifies rates lower than those required in the applicable wage determination; and [5] Improperly taking credit towards fringe benefit obligations for certain expenses.” Full Article – Wage and Hour Division, U.S. Department of Labor
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
California Passes New Law Mandating Workplace Violence Prevention Plan for Employers
“On September 30, 2023, Governor Gavin Newsom signed SB 553 into law, establishing a new written Workplace Violence Prevention Plan (“WVPP”) requirement for nearly all California employers.” Full Article
– Sheppard Mullin Richter & Hampton LLP
MASSACHUSETTS
Massachusetts Amends Paid Family and Medical Leave Law
“As of November 1, 2023, the Massachusetts Paid Family and Medical Leave (PFML) law will permit employees to supplement their PFML benefits using accrued paid time off (PTO), such as sick or vacation pay. Employers cannot require that employees use their accrued PTO while receiving PFML benefits but must permit employees to do so.” Full Article
– Morgan, Lewis & Bockius LLP
ILLINOIS
New Illinois Law Mandates Certain Employers Offer Pre-Tax Commuter Benefits Starting January 1, 2024
“Open enrollment season is upon us, but employers who employ a substantial number of employees in Illinois may have a surprise in a new benefit that must be offered. Illinois recently adopted the Transportation Benefits Program Act (HB 2068; P.A. 103-291) (the “Act”) which aims to promote the commuter benefits available to employees who use or may use public transportation to commute to and from work.” Full Article
– Michael Best & Friedrich LLP
COLORADO
Legislative Update: Colorado Proposes New Rules for Tipped Workers, and More State and Local Efforts to Eliminate the Tip Credits
“Proposed New Rules Under Colorado’s Overtime & Minimum Pay Standards Order Would Narrow Employers’ Use of the Tip Credit and Tip Pools.” Full Article
– Seyfarth Shaw LLP
NEW YORK
New York Narrows the Scope of Employee “Invention Assignment” Provisions
“On September 15, New York enacted Labor Law Section 203-f, limiting the enforceability of invention assignment provisions in employment agreements. Under the new law, employers do not have rights to any employee inventions created on the employee’s own time and without the use of employer resources or trade secrets.” Full Article
– Troutman Pepper Hamilton Sanders LLP
- Published in Blog