The RISQ RECAP:
April 3rd – April 7th, 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
“Risk management is shifting” – The Institutes CEO
“A predict and prevent approach to risk management is becoming more significant as technological developments create added value for both brokers and their policyholders. “With new technologies and capabilities, we can predict when bad things are going to happen and stop them, rather than waiting for an incident to occur and making sure the person is financially whole, which is a great thing and will always be,” said Pete Miller, CEO of The Institutes.” Full Article
– Insurance Business
EMPLOYEE BENEFITS, HUMAN RESOURCES, & COMPLIANCE
Email Layoffs From the Employment Litigator’s Lens “With the market continuing on its roller coaster trajectory, many employers have been forced to make big cuts to payroll. When doing so, employers must think about a number of things, between final paychecks, vacation time, and other benefits.” Full Article – Mintz
Workplace Investigations: Anticipate Cognitive Overload “Sometimes you just need to let things gel in your mind for a while. I came to this conclusion in my investigations practice years ago, but only recently recognized it as symptomatic of a far more universal phenomenon, what mental health professionals call “cognitive overload.” Full Article – Levy Employment Law LLC
Bystander Responsibility in the Era of #MeToo: Lessons Learned From Apple TV’s The Morning Show “Partners Tracey Diamond and Evan Gibbs sit down with Megan Bigelow, assistant general counsel at Sonesta Hotels, to talk about the popular Apple TV series The Morning Show and harassment in the workplace.” Full Article – Troutman Pepper
2023 Compensation Check-Up: Four Questions to Ask About Your Compensation Practices “Compensation is always a top-of-mind issue for employers, but on the heels of the “Great Resignation,” and amidst ongoing labor shortages, economic uncertainties, and evolving legal requirements, many employers are reassessing their compensation practices.” Full Article – Levenfeld Pearlstein LLC
The Two Factors Critical to Employee Recruitment and Retention “The United States is experiencing a historically tight and transient labor market. Employers seeking to remain competitive in such a market would be wise to re-evaluate the nature of employment in their industry, the roles within their companies, and related pay and benefits according to a time – Constangy Brooks Smith & Prophete LLP
-tested theory.” Full Article
Dear Littler: How Do We Handle Drug or Alcohol Impairment in the Workplace? “We are a manufacturing company with facilities in multiple states. We have had a number of incidents when supervisors have suspected an employee was impaired while working due to alcohol or drug use. We are particularly concerned about employees potentially endangering themselves or others if they are using our equipment while impaired, but we are unsure what to do in these circumstances. Can you help?” Full Article – Littler Mendelson
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.
Michigan Rolls Back its “Right-to-Work” Law; NLRB’s Top Lawyer Provides Post-McLaren Macomb Guidance “Michigan becomes the first state in nearly 60 years to repeal its RTW law, which was implemented in 2013 under then-Governor Rick Snyder (R). The repeal is viewed as a major victory for union organization which reached an all-time low in 2022.” Full Article – Benesch Friedlander Coplan & Aronoff LLPMICHIGAN
Proposed FTC Ban on Non-Competes: What Texas Business Owners Need to Know “The proposed rule, announced by the FTC in January, would generally ban the practice of non-compete agreements by making it illegal for an employer to enter these agreements, maintain existing agreements, and/or represent to a worker that they are subject to a non-compete.” Full Article – Boyar MillerTEXAS
UPDATED: The City of Los Angeles’ Fair Work Week Ordinance Will Take Effect April 1, 2023 “The Ordinance, which was unanimously passed by the Los Angeles City Council in November 2022, requires retail employers in the City of Los Angeles to provide employees at least 14 days’ advance notice of their work schedules and to compensate employees in the event of certain schedule changes.” Full Article – Sheppard Mullin Richter & Hampton LLPCALIFORNIA
Illinois Supreme Court Finds Federal Law Labor Preempts Union Members’ BIPA Claims “Walton should stop unionized employees from bringing new BIPA claims in state and federal court. Walton also forecloses unionized employees from bringing BIPA claims on a class action basis. Companies on the receiving end of a BIPA lawsuit from a current or former union member should always explore a motion to dismiss the lawsuit on preemption grounds.” Full Article – Sheppard Mullin Richter & Hampton LLPILLINOIS
Delaware’s “Freedom of Contract” Approach to Non-Compete Agreements– Even Between Sophisticated Parties in the Sale-of-Business Context– Has its Limits “Non-compete agreements have recently gained a new round of attention with the Federal Trade Commission’s (FTC) proposed rule that would effectively ban employers from imposing non-competes (albeit not in certain sale-of-business scenarios).” Full Article – Gibbons PCDELAWARE
- Published in Blog
The RISQ RECAP:
March 27th – March 31st, 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
APCIA Says Property Insurance Market ‘Hardest in a Generation’
“A combination of historic high inflation and a growing frequency of natural catastrophes is creating the hardest market in a generation for property insurance, the American Property and Casualty Insurance Association says in a new white paper. “The growth of population, housing, and businesses in hazard-prone areas are exacerbating the effects of climate change, leading to more frequent and severe catastrophe losses,” stated Karen Collins, the APCIA’s vice president, property and environmental, in a press release. “The higher costs of capital and reduced reinsurance capacity are further exerting upward pressure on insurance rates and may result in stricter underwriting in catastrophe-exposed markets.”” Full Article
– Insurance Journal
EMPLOYEE BENEFITS, HUMAN RESOURCES, & COMPLIANCE
No Surprises Act Gives Plan Sponsors Savings Opportunities “The No Surprises Act also provides an employer or plan sponsor of an ERISA group health plan an opportunity to revisit their plan’s administrative services agreements with their third-party administrator TPA and reduce or eliminate certain fees being charged by the TPA.” Full Article – Hall Benefits Law
IRS FAQs Explains When Health FSAs, HSAs, or HRAs Can Reimburse Nutrition, Wellness, and General Health Expenses “These FAQs do not break new ground or include any surprises. However, they may be helpful to those on the ‘front lines’ of cafeteria plan administration, who are sometimes asked to explain the reasons for plan operating rules and decisions.” Full Article – Thomson Reuters/ EBIA
Telehealth and the End of the COVID-19 Emergency “The stand-alone telehealth relief under the ACA is available until the end of the latest plan year that begins on or before the last day of the PHE. For calendar-year plans, this relief would last until December 31, 2023. When an employer ends its stand-alone telehealth benefit, it may need to provide participants a 60-day notice of a material reduction in benefits.” Full Article – McDermott Will & Emery
States Act to Strengthen Surprise Billing Protections Even After Passage of No Surprises Act “Where state law is more consumer- protective, the state law remains in effect. The NSA allows states to specify how payment disputes between insurers and providers are resolved. The federal approach does not apply if a state specifies its own mechanism. States may develop their own processes for enforcing the NSA and specified state laws.” Full Article – The Commonwealth Fund
DOL Annual Report to Congress on Self-Insured Group Health Plans (PDF) “Approximately 74,100 group health plans filed a Form 5500 for 2020, an increase of nearly 13 percent from 2019. Self-insured plans covered nearly 35 million participants and held more than $112 billion in assets, while mixed-insured plans covered roughly 29 million participants and held $157 billion in assets.” Full Article – Employee Benefits Security Administration, U.S. Department of Labor
Insulin as Preventive Care: Why Not Eliminate Patient Cost Sharing? “The No Surprises Act also provides an employer or plan sponsor of an ERISA group health plan an opportunity to revisit their plan’s administrative services agreements with their third-party administrator TPA and reduce or eliminate certain fees being charged by the TPA. Sponsors have a fiduciary obligation under ERISA to understand these fees and how they can be reduced.” Full Article – Health Affairs
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.
Cal/OSHA Proposes Changes to Update Workplace Exposure to Lead Regulations “On March 3, 2023, the Cal/OSHA Standards Board published notice of proposed revised regulations pertaining to workplace exposure to lead for the general industry and construction safety orders.” Full Article – Jackson Lewis PCCALIFORNIA
Paid Leave for Nearly All Illinois Employees Coming Soon “Paid leave for any reason is coming to Illinois. On March 13, 2023, Gov. JB Pritzker signed the Paid Leave for All Workers Act (Paid Leave Act), which requires employers to provide up to 40 hours of paid leave to nearly all employees in Illinois. The Paid Leave Act becomes effective on January 1, 2024.” Full Article – Cooley LLPILLINOIS
Paid Family Leave Comes to Maryland “Maryland has joined 10 other states and the District of Columbia in passing a paid family leave law. Under the new Time to Care Act of 2022 (TCA), eligible employees may apply to a state-administered fund that will be used to provide up to 12 weeks of paid family and medical leave, with the possibility of another 12 weeks for parental leave.” Full Article – Gordon Feinblatt LLCMARYLAND
Delaware is Moving Away from Broadly Enforcing Non-Competition Restrictions “Delaware courts are joining a growing list of legislative, judicial, and regulatory bodies that view restrictive non-competition covenants unfavorably. In three recent Chancery Court opinions, Delaware courts reflect an evolution in jurisprudence regarding restrictive covenants’ interpretation.” Full Article – Frost Brown Todd LLPDELAWARE
Michigan Senate Votes Repeal 2012 Right-to-Work Law “The “right-to-work” law prohibits union-security agreements, which required private and/or public employees to pay union dues or services fees as a condition of obtaining or continuing employment. Employees in unionized jobs who opted out of the union are still afforded rights and benefits as members of the bargaining unit. The bill will now return to the House for a vote before it goes to Gov. Gretchen Whitmer for her signature.” Full Article – Plunkett Cooney PCMICHIGAN
- Published in Blog
The RISQ RECAP:
March 19th – March 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
Chubb Announces Climate-Focused Underwriting Standards for Oil and Gas Extraction
“Chubb Ltd. announced new underwriting criteria for oil and gas extraction projects that will require clients to reduce methane emissions, a by-product of oil and gas production that are among the most severe greenhouse gases. Chubb also announced it will not provide insurance coverage for oil and gas projects in government-protected conservation areas in the World Database on Protected Areas that do not allow for sustainable use. The underwriting criteria for oil and gas extraction are part of an ongoing collaboration and consultation with environmental stakeholders and experts, Chubb said.” Full Article
– Insurance Journal
EMPLOYEE BENEFITS, HUMAN RESOURCES, & COMPLIANCE
Ones to Watch: Legislation Landscape for 2023 “Three months into the new legislative year, with all but a handful of state legislatures currently in session, clear employment law trends for 2023 have emerged. Some of the more significant trends reflect the country’s social and political atmosphere.” Full Article – Littler Mendelson PC
States Push Pay Reporting Requirements in Effort to Ensure Pay Equity “As many employers know, federal law prohibits employers from demanding pay confidentiality from employees. Pay transparency laws go a step further and require employers to publish ranges for open positions, adding transparency to the conversations about pay.” Full Article – Hunton Andrews Kurth LLP
Circle K Agrees to Pay $8 Million After EEOC Investigation into Disability, Pregnancy, and Retaliation Charges “Circle K Stores Inc. has agreed to pay $8 million and comply with the terms of a four- year settlement with the Equal Employment Opportunity Commission (EEOC) amid charges that it failed to offer reasonable accommodations to and retaliated against disabled and pregnant workers.” Full Article – Hall Benefits Law LLC
U.S. Department of Labor Releases Guidance on Teleworkers “The U.S. Department of Labor (DOL) Wage and Hour Division recently issued a Field Assistance Bulletin (FAB) advising on certain applications of the Fair Labor Standards Act (FLSA) and Family and Medical Leave Act (FMLA) for teleworking employees. The primary focus of the FAB is compensable time, breaks for nursing employees, and FMLA eligibility rules for remote employees.” Full Article – Venable LLP
Biden Administration Requests Big Budget Increase for OSHA “The FY 2024 budget request for OSHA is approximately $738.7 million, an increase of more than $106.3 million from FY 2023. The upcoming fiscal year begins Oct. 1. Released on March 9, the proposal includes increases of 16.3% for federal enforcement (up roughly $40 million for FY 2023), 30% for federal compliance assistance (+$23.3 million), and 26.3% for safety and health standards (+$11.1 million).” Full Article – Seyfarth Shaw LLP
DOJ Antitrust Division Announces Indictment Against Health Care Staffing Executive for Nurse Wage-Fixing “On March 16, the U.S. Department of Justice Antitrust Division (“DOJ Antitrust Division”) announced that a federal grand jury returned an indictment charging a former health care staffing executive of fixing wages for nurses. The press release noted, “The charges in this case were brought in connection with the Antitrust Division’s ongoing commitment to prosecute anticompetitive conduct affecting American labor markets.” Full Article – Mintz
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.
Cal/OSHA Proposes Changes to Update Workplace Exposure to Lead Regulations “On March 3, 2023, the Cal/OSHA Standards Board published notice of proposed revised regulations pertaining to workplace exposure to lead for the general industry and construction safety orders.” Full Article – Jackson Lewis PCCALIFORNIA
Paid Leave for Nearly All Illinois Employees Coming Soon “Paid leave for any reason is coming to Illinois. On March 13, 2023, Gov. JB Pritzker signed the Paid Leave for All Workers Act (Paid Leave Act), which requires employers to provide up to 40 hours of paid leave to nearly all employees in Illinois. The Paid Leave Act becomes effective on January 1, 2024.” Full Article – Cooley LLPILLINOIS
Paid Family Leave Comes to Maryland “Maryland has joined 10 other states and the District of Columbia in passing a paid family leave law. Under the new Time to Care Act of 2022 (TCA), eligible employees may apply to a state-administered fund that will be used to provide up to 12 weeks of paid family and medical leave, with the possibility of another 12 weeks for parental leave.” Full Article – Gordon Feinblatt LLCMARYLAND
Delaware is Moving Away from Broadly Enforcing Non-Competition Restrictions “Delaware courts are joining a growing list of legislative, judicial, and regulatory bodies that view restrictive non-competition covenants unfavorably. In three recent Chancery Court opinions, Delaware courts reflect an evolution in jurisprudence regarding restrictive covenants’ interpretation.” Full Article – Frost Brown Todd LLPDELAWARE
Michigan Senate Votes Repeal 2012 Right-to-Work Law “The “right-to-work” law prohibits union-security agreements, which required private and/or public employees to pay union dues or services fees as a condition of obtaining or continuing employment. Employees in unionized jobs who opted out of the union are still afforded rights and benefits as members of the bargaining unit. The bill will now return to the House for a vote before it goes to Gov. Gretchen Whitmer for her signature.” Full Article – Plunkett Cooney PCMICHIGAN
- Published in Blog
The RISQ RECAP:
March 13th – March 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
Transactional risk insurance remains a critical factor in M&A – report
“Transactional risk insurance remains a critical factor in de-risking deals, according to a new report from Marsh Specialty. The report, Transactional risk insurance 2022: year in review, discusses the continued rise of transactional risk insurance as a mainstream feature of M&A deals globally. While transactional risk insurance was viewed as an esoteric product two decades ago, today it’s a mainstream strategy for protecting buyers and sellers from the risks inherent in M&A transactions, the report said.” Full Article
– Insurance Business Magazine
EMPLOYEE BENEFITS, HUMAN RESOURCES, & COMPLIANCE
IRS Provides an “Electric Shock” by Lowering Mandatory Electronic Filing Threshold “Many plan sponsors, employers, and other filers not currently subject to mandatory electronic filing will be ensnared by the new regulations and be required to file returns electronically.” Full Article – Groom Law Group
Surprise-Billing Law Loophole: When ‘Out-of-Network’ Doesn’t Quite Mean Out-of-Network “What’s the difference between a hospital that’s ‘in-network’ and one that’s a ‘participating provider’? In this case, by contracting with Regence as an out-of-network but also participating provider, Swedish straddled the line between being in and out-of-network.” Full Article – Kaiser Health News
Departments Issue Guidance Requiring First Annual “Gag” “While explicit, direct violations of the prohibition on gag clauses may not be difficult to determine, provisions that have the effect of restricting the disclosure of information or data in violation of the gag clause prohibitions may not be obvious.” Full Article – The Wagner Law Group
Attestation by December 31, 2023
It Doesn’t Have to be That Way: Negotiating Good Service Provider Agreements is More Important Than Ever “It is time to get serious (and maybe even more serious) about privacy and security. Employers who have employees located in California in particular should be looking at these rules to ensure that their benefit plan service providers are in compliance with these requirements.” Full Article – Holland & Hart LLP
What the End of the COVID-19 Pandemic Means for Employee Benefit Plan Deadlines and Coverage “The calculation of normal deadlines will resume on July 10, 2023, for individuals whose Relief Event date was after July 10, 2022. Employers would also be well served to review COBRA notices previously issued to determine if an updated notice or communication is merited in light of the impending end of the relief.” Full Article – Jackson Lewis P.C.
Text of IRS Rev. Proc. 2023-17: Adjusted Applicable Dollar Amounts Under Section 4980H, for Calculation of 2024 Employer Shared Responsibility Payments (PDF) “This revenue procedure provides indexing adjustments for the applicable dollar amounts under Section 4980H(c)(1) and (b)(1) of the Internal Revenue Code. These indexed amounts are used to calculate the employer shared responsibility payments (ESRP) under Section 4980H(a) and (b)(1), respectively.” Full Article – Groom Law Group
STATE & INTERNATIONAL COMPLIANCE
In addition to the RISQ Review, RISQ Consulting also provides a resource that features changes and updates to State and International Compliance measures. We’ve included brief summaries of each item below, and also provided links to the original articles if you’d like to read further.
Illinois Supreme Court Rules BIPA Claims Accrue With Each Scan “On February 17, the Illinois Supreme Court issued its long-awaited decision in Cothron v. White Castle, holding that a claim under Illinois’ Biometric Information Privacy Act (BIPA) is triggered upon each biometric scan, rather than just the first.” Full Article – Troutman PepperILLINOIS
Seattle Becomes the First U.S. Jurisdiction to Prohibit Caste Discrimination “On February 21, 2023, the City of Seattle, Washington became the first U.S. city – or any U.S. jurisdiction for that matter – to add caste to its list1 of categories protected against discrimination.” Full Article – Littler MendelsonWASHINGTON
Massachusetts May Be Next in Line to Enact Pay Transparency Laws “The proposed law focuses on a broad range of employee and wage data, including the number of employees by race, ethnicity, and gender that fall within certain job categories or roles, and their corresponding wage information.” Full Article – Nelson Mullins Riley & ScarboroughMASSACHUSETTS
New Jersey Enacts First-of-Its-Kind Temporary Workers’ Bill of Rights “Under the law, employers must pay temporary workers no less than the average rate of pay and cost of benefits provided to company employees in similar positions who perform the same or substantially similar work. It also gives temporary workers rights to certain information on the terms and conditions of their engagement and imposes significant obligations on staffing agencies and their clients.” Full Article – Morgan Lewis & BockiusNEW JERSEY
CA Win for Employers: Ninth Circuit Holds That California AB 51 Prohibiting Mandatory Arbitration is Preempted by the Federal Arbitration Act ““As of February 15, 2023, employers in California may once again require mandatory arbitration as the US Court of Appeals for the Ninth Circuit held that the Federal Arbitration Act (FAA) preempts Assembly Bill 51 (AB 51), a law that prohibited “forced arbitration” as a condition of employment.” Full Article – McDermott Will & EmeryCALIFORNIA
- Published in Blog
Vehicle Thefts Surpassed 1 Million in 2022
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.
Vehicle thefts nationwide surpassed 1 million last year. This was a 7% increase over 2021 numbers and the first time thefts reached that total since 2008, according to a new analysis from the National Insurance Crime Bureau (NICB).
“We are seeing vehicle theft numbers that we haven’t seen in nearly 15 years, and there is very little deterrent to stop criminals from committing these acts,” David Glawe, president and chief executive of NICB, said in a statement. “We must reinvest in local law enforcement, provide the necessary resources for prosecution and community policing programs and implement early intervention programs given the high incidence of juvenile offenders involved in vehicle thefts.”
Law enforcement agencies and communities reported over 250,000 thefts in the fourth quarter of 2022. California and Texas led the nation last year with the most reported stolen vehicles at roughly 202,700 and 105,000, respectively. Among the 10 states with the most vehicle thefts, Illinois (sixth-highest overall) had the most significant year-over-year increase of 35%. Following that was Washington (third-highest overall), with an increase of 31% from 2021.
The remaining states in the top 10 were Florida, Colorado, Ohio, Missouri, New York and Georgia. NICB used data from the National Crime Information Center to conduct its analysis.
Thefts of Kia and Hyundai vehicles spiked in recent years. In September, the Highway Loss Data Institute (HLDI) called Hyundai and Kia vehicles “easy targets” since many 2015 to 2019 model-year vehicles lack electronic immobilizers.
Electronic immobilizers prevent thieves from simply breaking into a vehicle and bypassing the ignition. Immobilizers were standard on 96% of other manufacturers’ vehicles in 2015 but standard on only 26% of Hyundai and Kia models, according to IIHS.
Some insurers, including Progressive and State Farm, started refusing to write policies for Hyundai and Kia models in certain cities. Michigan’s Department of Insurance and Financial Services (DIFS) issued a bulletin reminding insurers the state requires they offer auto insurance to all residents regardless of make or model—including Kia and Hyundai vehicles.
“In other states, some insurers have attempted to deny or limit auto coverage for [Kia and Hyundai vehicles],” Anita Fox, director of Michigan’s DIFS, said in a statement. “Our new bulletin clearly states that such actions are prohibited in Michigan. DIFS will continue to ensure that every eligible Michigan driver can get the auto insurance they need to legally drive on Michigan roads.”
Insurers can respond to the “indisputably” increased risk of Kia and Hyundai thefts by charging more for comprehensive coverage or choosing not to insure them, Robert Passmore, department vice president of personal lines at the American Property Casualty Insurance Association (APCIA), said.
“That said, any action that insurer would take would have to be in accordance with state law,” Passmore said in a written statement. States have rules about rate filing, canceling, and non-renewals. Also, some states have “take all comers” requirements prohibiting insurers from denying coverage based on vehicle make and model.
Kia and Hyundai have software fixes and other anti-theft devices available to drivers. Vehicle owners should contact their local dealer for more information. And, when shopping for insurance, be sure to let the insurer know if their vehicle has had the software upgrade.
Last year’s roughly 1.02 million stolen vehicles were just under 2008’s total of 1.05 million. NICB noted that law enforcement may still report thefts from 2022, meaning the numbers may change.
NICB recommends that vehicle owners follow good security practices and that their auto insurance policies are current. Owners should roll up their windows, lock their car doors, park personal vehicles in a garage, and park in well-lit areas.
- Published in Blog
The RISQ RECAP:
March 6th – March 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
Livestock Operations Grow as Demand Rises; Nationwide’s Cumings Sees Direct-to-Consumer Models Adding Additional Liability Risk
“Specialization is critical in the cattle business and increased consumer demand for protein is driving new trends, including niche farms that offer direct-to-consumer strategies. In today’s evolving and growing livestock landscape, deep knowledge of market conditions and specialization is key to success, according to Erin Cumings, a senior consultant with Nationwide’s sponsor relation team who has years of agribusiness underwriting expertise. But for those agents willing to develop that expertise, she sees opportunities for agents in this changing and dynamic market.” Full Article
– Insurance Journal
EMPLOYEE BENEFITS, HUMAN RESOURCES, & COMPLIANCE
DOL Issues Internal Guidance on Telework Under the FLSA & FMLA “FAB 2023-1 addresses FLSA regulations governing “hours worked,” rules related to break time and privacy for nursing employees, and regulations regarding FMLA eligibility factors.” Full Article – Jackson Lewis
OSHA Implements Pilot Program to Streamline Complaint Intake Process “This pilot program aims to relieve the strain on OSHA’s investigative resources by allowing an investigator to administratively close a complaint without needing to contact the Complainant.” Full Article – Proskauer Rose
Tick-Tock-Time for Healthcare Employers to Review Their Internet and Social Media Use Policies! “Every healthcare organization, from small medical groups to large health systems, should adopt a social media use policy that outlines permissible uses, best practices, and potential discipline in the event of violations by their employees.” Full Article – Sheppard Mullin Richter & Hampton
Paid Leave for USERRA? We Recommend a Comparability Analysis “The Ninth Circuit recently addressed the issue of whether an employer is required to provide pay for employees taking short-term military leave when it offers other types of short-term paid leave. In Clarkson v. Alaska Airlines, Inc., the Ninth Circuit revived a class action claiming discrimination under the Uniformed Services Employment and Reemployment Rights Act (USERRA) for the failure to pay short-term military leave.” Full Article – Baker McKenzie
Supreme Court Upholds Ruling That FLSA Overtime Exemption Didn’t Apply to Day-Rate Rig Worker “On Sept. 9, 2021, the U.S. Court of Appeals for the Fifth Circuit held a highly compensated rig worker was not exempt from the Fair Labor Standards Act’s (FLSA’s) overtime requirements because the employee was paid on a day rate as opposed to a guaranteed salary. On Feb. 22, 2023, the U.S. Supreme Court affirmed this decision.” Full Article – McGuire Woods
NLRB Prohibits Confidentiality and Non-Disparagement Provisions in Severance Agreements with Broad Implications “On February 21, the National Labor Relations Board (NLRB or Board) reversed course from its own Trump-era precedent when it held that an employer’s offer of employee severance agreements with broad confidentiality and non- disparagement provisions is an unfair labor practice in violation of Section 8(a)(1) of the National Labor Relations Act (Act).” Full Article – Troutman Pepper
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 Supreme Court Rules BIPA Claims Accrue With Each Scan “On February 17, the Illinois Supreme Court issued its long-awaited decision in Cothron v. White Castle, holding that a claim under Illinois’ Biometric Information Privacy Act (BIPA) is triggered upon each biometric scan, rather than just the first.” Full Article – Troutman PepperILLINOIS
Seattle Becomes the First U.S. Jurisdiction to Prohibit Caste Discrimination “On February 21, 2023, the City of Seattle, Washington became the first U.S. city – or any U.S. jurisdiction for that matter – to add caste to its list1 of categories protected against discrimination.” Full Article – Littler MendelsonWASHINGTON
Massachusetts May Be Next in Line to Enact Pay Transparency Laws “The proposed law focuses on a broad range of employee and wage data, including the number of employees by race, ethnicity, and gender that fall within certain job categories or roles, and their corresponding wage information.” Full Article – Nelson Mullins Riley & ScarboroughMASSACHUSETTS
New Jersey Enacts First-of-Its-Kind Temporary Workers’ Bill of Rights “Under the law, employers must pay temporary workers no less than the average rate of pay and cost of benefits provided to company employees in similar positions who perform the same or substantially similar work. It also gives temporary workers rights to certain information on the terms and conditions of their engagement and imposes significant obligations on staffing agencies and their clients.” Full Article – Morgan Lewis & BockiusNEW JERSEY
CA Win for Employers: Ninth Circuit Holds That California AB 51 Prohibiting Mandatory Arbitration is Preempted by the Federal Arbitration Act ““As of February 15, 2023, employers in California may once again require mandatory arbitration as the US Court of Appeals for the Ninth Circuit held that the Federal Arbitration Act (FAA) preempts Assembly Bill 51 (AB 51), a law that prohibited “forced arbitration” as a condition of employment.” Full Article – McDermott Will & EmeryCALIFORNIA
- Published in Blog
Stronger Hurricanes to Put More Properties at Risk
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.
Over 13.4 million properties not currently exposed to hurricane-force wind damage will face increased risk over the next 30 years as climate change propels more intense storms, according to new research from First Street Foundation.
“Compared to the historic location and severity of tropical cyclones, this next generation of hurricane strength will bring unavoidable financial impacts and devastation that have not yet been priced into the market,” said Matthew Eby, founder and CEO of First Street, a nonprofit research and technology group.
First Street’s models also estimated the average annual loss due to tropical cyclone damage rising to $19.9 billion, with about $1 billion in higher exposure in Florida alone.
Other regions that face lower exposure now will be even more at risk in the future, First Street warned. The study projected losses in the Northeastern United States to increase by 87% over the next three decades as hurricanes track further north.
“The northward increase in hurricane activity may significantly impact buildings that have not been built to a code that considers the wind speeds they will likely face over the next 30 years,” researchers said. “Additionally, the count of properties with any average annual loss from wind will increase by about 55%, with about 2.2 million newly-impacted properties by 2053.”
The total number of storms isn’t expected to change, but the intensity will, according to the report. Historical evidence already illustrates rising risk: The proportion of major hurricanes (Categories 3, 4, and 5) has quadrupled since the 1980s, from 10% of all tropical cyclone events to over 40% today. First Street attributed the change to rising air and sea-surface temperatures fueling storms, as well as increased moisture levels in the air and shifts in wind patterns.
“Hurricanes affect communities within the United States more frequently and severely than other natural disasters,” said First Street in the report. “As a result, tropical cyclones have caused a total of $1.194 trillion (consumer price index-adjusted) in losses in the United States between 1980 and 2022, with an average cost of approximately $21 billion per event.”
Understanding evolving risk can help insurers set property rates more accurately, assist communities in developing resiliency plans and allocating resources, and give property owners information on how to better protect themselves and their homes and businesses, First Street said.
For more risk management news and insights, contact RISQ Consulting today.
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The RISQ RECAP:
February 20th – February 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
Hopeful Cannabis Sales Data an Encouraging Sign for Insurance Specialists
“News has been rife with dreary tidings for the cannabis industry over the past year, but a surprisingly encouraging outlook has emerged among the persistent din of downward harbingers like a flower glut, investment funding shrinkage, and layoffs. Industry sales are expected to continue to rise this year – though not so much for those focused on the Western U.S., where most of the nation’s mature markets are and new data points to negative short-term trends. Beneath it all, both the good and bad in the data may ultimately be positive indicators for insuring cannabis specialists, according to two brokers who have been in the space for years. U.S. legal cannabis sales may grow 14% by year’s end, while overall global growth and spending is on track to yield a market size of $59.6 billion by 2027, a report out today from market intelligence and data provider BDSA shows.” Full Article
– Insurance Journal
EMPLOYEE BENEFITS, HUMAN RESOURCES, & COMPLIANCE
Employers, Do No Delay in Responding to A Request for Reasonable Accommodation “When dealing with a request for reasonable accommodation, “an indeterminate delay has the same effect as an outright denial,” as the U.S. Court of Appeals for the Second Circuit recently noted.” Full Article – Shawe Rosenthal LLP
DOL Clarifies Whether FLSA and FMLA Protections Apply to Remote Employees “The U.S. Department of Labor (DOL) recently issued new guidance regarding how remote employees should be paid under the Fair Labor Standards Act (FLSA) and when they are eligible for leave under the Family and Medical Leave Act (FMLA).” Full Article – Phelps Dunbar LLP
ADA and Hearing Disabilities in the Workplace “The Equal Employment Opportunity Commission (EEOC) issued new technical assistance, “Hearing Disabilities in the Workplace and the Americans with Disabilities Act,” addressing how the Americans with Disabilities Act (ADA) applies to job applicants and employees with hearing disabilities.” Full Article – Jackson Lewis P.C.
EEOC Continues to Prioritize its Focus on the Use of Artificial Intelligence in Employment Decisions “The EEOC first announced its Artificial Intelligence initiative in 2021. The initiative was created to ensure the use of software, including AI and other technologies used in employment decisions, comply with the federal employment laws it is tasked with enforcing.” Full Article – Baker, Sterchi, Cowden & Rice LLC
4 Tips to Avoid (Or At Least Dull) Headaches When Conducting Layoffs in the US “As we find ourselves firmly in the middle of Q1 of 2023, the avalanche of layoff headlines that started last quarter just keeps coming. Whether you follow the school of thought that the US entered a recession in summer of 2022 (after two consecutive quarters of negative gross domestic product) or not (given a strong labor market and corporate earnings growth), more and more companies are having to address overzealous pandemic hiring and the backlash from soaring company valuations.” Full Article – Baker & McKenzie LLP
No Dogs Allowed: Federal Court Rejects Service Dog Accommodation in Hospital Setting “Most of us know that when an employee or visitor to a place of public accommodation requests a reasonable accommodation, the ADA requires an interactive process to make an individualized determination. But what about a request from a nursing intern to bring her service dog… to a hospital… around patients? Could this qualify as a reasonable accommodation? In Bennett v. Hurley Medical Center, one federal just says, “not always.” Full Article – Bradley Arant Boult Cummings 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 State Legislature Proposes Amendments to Pay Transparency Law Taking Effect This Year “The most notable revision would provide that the law applies to remote positions physically performed outside of New York that report to a New York supervisor, office, or work site. The bill is currently before Governor Hochul, and if signed, would become part of the law taking effect in September.” Full Article – Proskauer Rose LLPNEW YORK
Illinois Equal Pay Certification: A Practical Guide for Employer Compliance “The EPA Amendments make the Illinois Equal Pay Act one of the most demanding pay transparency statutes in the country because it requires employers with 100 or more employees in Illinois to submit employee pay data and a signed compliance statement to obtain an Equal Pay Registration Certificate (EPRC).” Full Article – Littler Mendelson P.C.ILLINOIS
Impact of New Jersey’s Just-Signed Temporary Workers’ Bill of Rights “On February 6, 2023, New Jersey Governor Phil Murphy signed into law A1474/S511, commonly referred to as the “Temporary Workers’ Bill of Rights.” The bill offers additional compensation, benefits and protections for temporary workers, with the cost and burden of compliance placed on employers and staffing agencies that place temporary workers.” Full Article – Greenbaum Rowe Smith & Davis LLPNEW JERSEY
Connecticut Expands Employment Anti-Discrimination Protections “The Connecticut Fair Employment Practices Act (CFEPA) prohibits discrimination based on many protected characteristics, such as race, age, gender, gender identity, religion, and disability. The CFEPA is broader than federal anti-discrimination laws in both scope (it covers more categories of employees) and reach (it applies to more employers).” Full Article – Day Pitney LLPCONNECTICUT
Ninth Circuit Reverses Itself and Strikes Down California Law Targeting Mandatory Employment Arbitration Agreements “In a reversal of its prior ruling, the Ninth Circuit recently held that the Federal Arbitration Act (FAA) preempts California Assembly Bill 51 (AB 51), a 2019 measure that aimed to bar employers from entering into new agreements—or extending previous ones—requiring job applicants or workers to arbitrate claims under the California Labor Code or California Fair Employment and Housing Act (FEHA).” Full Article – Morrison Foerster P.C.CALIFORNIA
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The RISQ RECAP:
February 13th – February 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
Google Case at Supreme Court Risks Upending the Internet as We Know It
“An upcoming Supreme Court case could answer one of the toughest questions of the internet age: Should online companies be held responsible for promoting harmful speech? The case, Gonzalez v. Google, could upend the modern internet economy, sparing no online business. A ruling against Google will likely leave internet companies — from social media platforms to travel websites to online marketplaces — scrambling to reconfigure their businesses to avoid costly lawsuits.” Full Article
– Insurance Journal
EMPLOYEE BENEFITS, HUMAN RESOURCES, & COMPLIANCE
Texas District Court Once Again Vacates Departments’ No Surprises Act Regs “Health providers asserted that the regulations improperly limited arbitrators’ discretion and improperly weighted the QPA (by making it the ‘de facto benchmark’ for OON reimbursement). The district court concluded that the final regulations’ challenged provisions exceeded the Departments’ authority and conflicted with the NSA.” Full Article – Thomson Reuters Practical Law
Healthcare Plans After Dobbs: What Employers Need to Know “In an age of remote work, even employers based in states such as California where the right to – Boutwell Fay LLP
abortion healthcare has been confirmed, may have employees working remotely in other states which have restrictive abortion laws. Set up a system to monitor legal developments in this area, at the
state, local, and federal levels. Review all relevant plan documents. Consider new plans/plan designs. Review applicable leave laws.” Full Article
Agencies Propose Expansion of Contraceptive Care Coverage “The proposal would create a mechanism, independent from the employer, group health plan, plan sponsor, institution of higher education, or issuer, through which individuals could obtain contraceptive services at no cost from a willing provider of contraceptive services when the employer does not elect the optional accommodation.” Full Article – The Wagner Law Group
Public Health Emergency Ends May 11: What Telehealth Companies Need to Know “While some telehealth waivers will survive the end of the public health emergency (PHE), not every pandemic-era policy will continue. Digital health companies relying on the PHE waivers – Foley and Lardner LLP
should take steps now to bring operations into compliance with the post-PHE world before the PHE ends in May.” Full Article
HHS Fact Sheet: COVID-19 Public Health Emergency Transition Road Map “HHS continues to review the flexibilities and policies implemented during the COVID-19 PHE to determine whether others can and should remain in place, even for a temporary duration, to facilitate jurisdictions’ ability to provide care and resources to Americans. Still, others will expire. This Fact Sheet includes a list of some of the changes people will see in the months ahead.” Full Article – U.S. Department of Health and Human Services
Employers Prepare for Thawing ERISA Deadlines “Although the end of the outbreak period will be the same for each participant and beneficiary, not every deadline will be due to the mass nature of the timeframe beginning dates (the end of the outbreak period), employers, their third-party administrators, COBRA administrators, and other service providers may end up dealing with several ‘batched’ requests from participants, especially for some of the shorter deadlines and more common requests such as HIPAA special enrollment applications and COBRA elections.” Full Article – Ogletree Deakins
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.
Gainesville First City in Florida to Pass Fair Chance Hiring Law Restricting Private Employers’ Use of Criminal History “In light of these changes, covered employers with operations in Gainesville that use criminal records to vet candidates should consider a privileged review of their policies, procedures, and other documents related to the screening process.” Full Article – Littler Mendelson P.C.FLORIDA
St. Paul & Bloomington, Minnesota Amend Their Sick and Safe Time Ordinances “On January 19, 2023, St. Paul, Minnesota Mayor Melvin Carter signed into law amendments to the Earned Sick and Safe Time (ESST) Ordinance, which will take effect 30 days later, on February 18, 2023. Four days later, on January 23, Bloomington enacted amendments to its forthcoming ESST Ordinance that will, like the law itself, first take effect on July 1, 2023.” Full Article – Littler Mendelson P.C.MINNESOTA
2022 Connecticut Employment Law Recap “The past year has been filled with employment law developments in Connecticut. Below are summaries of some of the key laws that were passed or went into effect in 2022, with which Connecticut employers should be sure to comply in 2023.” Full Article – Day Pitney LLPCONNECTICUT
Illinois Legislature Passes Mandatory Paid Leave for Any Purpose, to be Effective in 2024 “The new law would require nearly all Illinois employers to provide employees with up to 40 hours of paid leave per year. Assuming it is signed, this requirement will be effective in January 2024, and the paid leave will be able to be used for any purpose.” Full Article – Levenfeld Pearlstein P.C.ILLINOIS
Not so FAST– AB 257 on Hold Pending Voter Referendum in 2024 “On January 24, 2023, the California Secretary of State completed its verification process and qualified a referendum challenging Assembly Bill (AB) 257, also known as the FAST Recovery Act for the November 2024 ballot. In the meantime, the law will not take effect unless it is approved by voters in the November 2024 election.” Full Article – Jackson Lewis P.C.CALIFORNIA
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