The RISQ RECAP: August 1st – August 5th, 2022
August 1st – August 5th, 2022
Each week, you’ll find specially curated news articles to keep you up to date on the ever-evolving world of insurance and risk management. The articles are divided out between items relevant to Property & Casualty, Employee Benefits/Human Resources, and Compliance. We’ve included brief summaries of each item as well as a link to the original articles.
PROPERTY & CASUALTY
Takeaways from Our Conversation About Why Most Small-to Mid-Size Cannabis Operators Shun D&O
“Directors and officers insurance has been pricey and tough to obtain for cannabis companies since the industry started requiring coverage. D&O is difficult in most business sectors (For more on that check out: “You’ve Heard it Before, so Here it is Again: D&O is a Tough Pill for Cannabis.”), but cannabis businesses may pay up to 50% more in premiums for D&O – if they can get it.” Full Article
– Insurance Journal
EMPLOYEE BENEFITS, HUMAN RESOURCES, & COMPLIANCE
We’re Trying to Help! Employer Guidelines to Avoid Legal Pitfalls with Tuition Assistance Benefit Programs “Put it in writing; look for tax caps, and; don’t forget the Truth in Lending Act (TILA) or the Fair Debt Collection Practices Act (FDCPA). Income-Share Agreements (ISA) are considered ‘credit’ under TILA. Check state law before requiring a non-compete agreement or repayment requirement.” Full Article – Bradley
HHS Proposes to Reinstate, Revise, and Expand ACA Section 1557 Nondiscrimination Rules “Now in their third iteration, these regulations are full of detailed rules and explanations that may again become a lightning rod for litigation. Group health plan sponsors, insurers, TPAs, and advisors may wish to submit comments. Meanwhile, HHS emphasizes that Section 1557 and the 2020 regulations remain in effect.” Full Article – Thomson Reuters / EBIA
HHS, DOL, and Treasury Issue Guidance Regarding Birth Control Coverage “Following President Biden’s Executive Order on ensuring access to reproductive health care, HHS, alongside the DOL and the Treasury, took action to clarify protections for birth control coverage under the Affordable Care Act (ACA). Under the ACA, most private health plans are required to provide birth control and family planning counseling at no additional cost.” Full Article – Centers for Medicare and Medicaid Services (CMS)
Recent Trends in Patient Out-of-Pocket Cost Sharing “The share of out-of-pocket costs paid by patients with employer-sponsored health plans increased from 17.4 percent in 2013 to 19 percent in 2019, before a pandemic-related decline to 16.4 percent in 2020. The increase in the share of expenses paid out of pocket observed between 2013 and 2019 appears to be driven by an increase in the number of workers enrolling in plans with higher deductibles.” Full Article – Employee Benefit Research Institute [EBRI]
IRS Rev. Proc. 2022-34: 2023 Required Contribution Percentage for Determining Affordable Employer-Provided Coverage “This revenue procedure also updates the required contribution percentage in Section 36B(c)(2)(C)(i) (II) for plan years beginning after calendar year 2022. This percentage is used to determine whether an individual is eligible for affordable employer-sponsored minimum essential coverage under Section 36B. For plan years beginning in calendar year 2023, the Section 36B Required Contribution Percentage is 9.12%.” Full Article – Internal Revenue Service (IRS)
The Dobbs Effect: Equal Access to Travel Benefits “Litigants are challenging as discriminatory under Title VII, employer travel benefits that enable employees to travel in order terminate pregnancies in states where it remains legal. Specifically, litigants have begun to assert that providing travel benefits for the purpose of terminating a pregnancy is unlawful if the employer does not also allow travel benefits for pregnant women who intend to carry their pregnancy to term.” Full Article – Seyfarth
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
Sexual Harassment Hotline Law Takes Effect in New York State
“Governor Kathy Hochul signed into law an amendment to the New York State Human Rights Law requiring that the New York State Division of Human Rights (DHR) establish a confidential statewide toll-free hotline to provide free advice to employees about workplace sexual harassment issues. The law took effect on July 14, 2022.” Full Article
– Phillips Lytle LLP
RHODE ISLAND
Rhode Island Enacts Tip Protection Law
“On June 28, 2022, Rhode Island Governor Daniel McKee signed into law a comprehensive tip protection bill. The law, which took effect immediately upon passage, generally prohibits employers from retaining any portion of an employee’s tips.” Full Article
– Epstein Becker Green P.C.
MARYLAND
Maryland Employers Beware – State Wage Laws Do Not Incorporate Federal Portal-to-Portal Act and Its Exclusions from Compensation
“Maryland’s highest court has ruled that the federal Portal-to-Portal Act has not been adopted or incorporated into Maryland’s Wage and Hour Law, Wage Payment and Collection Law, or the corresponding state regulations – meaning that employers may be responsible for more wages for their Maryland employees under state law than under federal law.” Full Article
– Shawe Rosenthal LLP
NEW JERSEY
What Employers Need to Know About Newly Proposed Non-Compete Legislation in New Jersey
“On May 19, 2022, the New Jersey Assembly’s Labor Committee voted in favor of Assembly Bill 3715 (A3715) (full text available here), which would create significant restrictions on the scope and enforceability of the most common restrictive covenants entered into by New Jersey employees. While it remains to be seen whether the bill’s proposed changes will become law, the passage of A3715 in its current form would represent a seismic shift for New Jersey employers.” Full Article
– Sheppard Mullin LLP
COLORADO
Colorado Updates its Paid Sick Leave Guidance, Including Clarifications on Carry-Over Amounts and Public Health Emergency Leave
“On June 24, 2022, Colorado’s Department of Labor and Employment (CDLE) published a revised version of its Interpretive Notice & Formal Opinion (INFO) #6B regarding the Healthy Families and Workplaces Act (HFWA), the state’s paid sick leave law that first took effect in 2020. Notably, the updated INFO #6B clarifies the amounts of accrued sick pay and public health emergency leave that employees are entitled to under the HFWA.” Full Article
– Littler Mendelson P.C.
- Published in Blog
The RISQ RECAP – July 25th – July 29th, 2022
July 25th – July 29th, 2022
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
Five ways to hire better and retain better
“Anyone who has been waiting — and waiting — for goods to be delivered, whether it’s a consumer, a retailer, or a manufacturer knows the US supply chain is in crisis. Nearly every link in the chain has been weakened and trucking is no exception. Legacy hiring and retention struggles were only exacerbated by the COVID-19 pandemic. The American Trucking Associations estimates that the driver shortage hit a historic high of over 80,000 drivers last year and is estimated to reach 160,000 by 2030. For an individual fleet operator, the average cost to replace a driver is about $8,200. The lack of drivers is a huge cost to the trucking industry and the larger economy, affecting company profits, the stock market, and the costs of all goods for all of us.” Full Article
– Insurance Business America
EMPLOYEE BENEFITS, HUMAN RESOURCES, & COMPLIANCE
Wage Transparency Laws Are Here to Stay “Some employers wish to post job openings without providing a salary range. They also would like to ask applicants about their salary history. Although this may benefit the employer in the negotiation process, asking about an applicant’s salary history and not providing salary information may be unlawful. Legislators have been concerned that employers’ lack of transparency in job listings and inquiries about salary history may disproportionately impact women, people of color, or those from other underrepresented groups.” Full Article – Greenberg Traurig LLP
There and Back Again: Labor Department Issues New Proposed Non-displacement Regulation “The U.S. Department of Labor has released a proposed regulation to reinstitute a requirement that contractors provide offers of employment to workers covered by the Service Contract Labor Standards, unless the contractor can establish an exception. The regulation would implement an executive order signed by President Joe Biden on Nov. 18, 2021, and comments on the rule will be accepted until Aug. 15, 2022. It is estimated that when the final rule is incorporated, it will affect between 74,000 and 329,000 small businesses.” Full Article – Holland & Knight LLP
Employment Law “Kitchen Fires” – Protecting Your Restaurant Against Sexual Harassment “According to the federal Equal Employment Opportunity Commission (EEOC), the restaurant industry is the single largest source of sexual harassment claims in the U.S. Restaurant employers need to take action to protect their employees from harassment and their businesses from potentially costly lawsuits. Surveys show 90% of women and 70% of men working in restaurants have experienced some form of sexual harassment from either managers, co-workers or customers, and recent headlines support those statistics. On a regular basis, well-known restaurant companies and celebrity chefs are being hit with sexual harassment claims as well as high dollar judgments or settlements.” Full Article – Phelps Dunbar LLP
EEOC’S Updated COVID-19 Guidance Places Additional Restrictions on Employers “For more than two years, employers have had to navigate a frequently changing landscape to ensure they complied with all of the laws relating to the COVID-19 pandemic. That landscape continues to change with two recent developments from the Equal Employment Opportunity Commission. On July 12, the EEOC updated its “What You Should Know About COVID-19 and the ADA, the Rehabilitation Act, and Other EEO Laws” guidance to address topics including testing employees for COVID-19, hiring, and required reasonable accommodation. On July 11, the EEOC settled a case involving an allegation that an employer had violated the Genetic Information Non- Discrimination Act by collecting employees’ family members’ COVID-19 test results.” Full Article – Day Pitney LLP
Bonuses & Calculating an Employee’s Regular Rate of Pay for Overtime “The Fair Labor Standards Act (FLSA) requires that non-exempt employees be paid no less than time and one-half their regular rate of pay for all hours worked over 40 hours in a workweek. How should an employer calculate an employee’s regular rate of pay? Under the FLSA, an employee’s regular rate of pay includes “all remuneration for employment paid to, or on behalf of, the employee,” less certain statutory exceptions. The regular rate is determined by adding the employee’s pay for the workweek and all other earnings and dividing the total by the number of hours the employee worked that week.” Full Article – Haynsworth Sinkler Boyd P.A.
Employers – Don’t Automatically Assume Prescription Meds Pose a Danger in the Workplace “Have you read the warnings on prescription painkillers? They can be pretty scary – “May cause drowsiness.” “May cause dizziness.” “Do not operate a car or dangerous machinery.” (Or words to that effect). I think by now, everyone is aware of the risks associated with controlled substances. Certainly, the opioid epidemic did not earn its name lightly. So it’s not surprising that some employers are concerned when employees take prescription medications that come with those warnings – particularly when those employees are working with heavy machinery or sharp objects, or getting behind the wheel of a vehicle. But it is important for employers to understand when they can – and cannot – prohibit employees on such medications from working.” 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.
NEW YORK
Sexual Harassment Hotline Law Takes Effect in New York State
“Governor Kathy Hochul signed into law an amendment to the New York State Human Rights Law requiring that the New York State Division of Human Rights (DHR) establish a confidential statewide toll-free hotline to provide free advice to employees about workplace sexual harassment issues. The law took effect on July 14, 2022.” Full Article
– Phillips Lytle LLP
RHODE ISLAND
Rhode Island Enacts Tip Protection Law
“On June 28, 2022, Rhode Island Governor Daniel McKee signed into law a comprehensive tip protection bill. The law, which took effect immediately upon passage, generally prohibits employers from retaining any portion of an employee’s tips.” Full Article
– Epstein Becker Green P.C.
MARYLAND
Maryland Employers Beware – State Wage Laws Do Not Incorporate Federal Portal-to-Portal Act and Its Exclusions from Compensation
“Maryland’s highest court has ruled that the federal Portal-to-Portal Act has not been adopted or incorporated into Maryland’s Wage and Hour Law, Wage Payment and Collection Law, or the corresponding state regulations – meaning that employers may be responsible for more wages for their Maryland employees under state law than under federal law.” Full Article
– Shawe Rosenthal LLP
NEW JERSEY
What Employers Need to Know About Newly Proposed Non-Compete Legislation in New Jersey
“On May 19, 2022, the New Jersey Assembly’s Labor Committee voted in favor of Assembly Bill 3715 (A3715) (full text available here), which would create significant restrictions on the scope and enforceability of the most common restrictive covenants entered into by New Jersey employees. While it remains to be seen whether the bill’s proposed changes will become law, the passage of A3715 in its current form would represent a seismic shift for New Jersey employers.” Full Article
– Sheppard Mullin LLP
COLORADO
Colorado Updates its Paid Sick Leave Guidance, Including Clarifications on Carry-Over Amounts and Public Health Emergency Leave
“On June 24, 2022, Colorado’s Department of Labor and Employment (CDLE) published a revised version of its Interpretive Notice & Formal Opinion (INFO) #6B regarding the Healthy Families and Workplaces Act (HFWA), the state’s paid sick leave law that first took effect in 2020. Notably, the updated INFO #6B clarifies the amounts of accrued sick pay and public health emergency leave that employees are entitled to under the HFWA.” Full Article
– Littler Mendelson P.C.
- Published in Blog
The RISQ RECAP – July 18th – July 22nd, 2022
July 18th – July 22nd, 2022
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
The Evolving Roll of Risk Officers in the Corporate World
“The increasing frequency of natural disasters and the rise of ESG are a few factors that have contributed to insurance companies placing a greater focus on mitigation and prevention. For the insurance industry the risk management side of their business has become more important than ever before. However, in the corporate world outside the insurance industry, risk management has also been evolving.” Full Article
– Insurance Business America
EMPLOYEE BENEFITS, HUMAN RESOURCES, & COMPLIANCE
Self-Insured Health Plans: August 1st PCORI Fee Due Date is Rapidly Approaching “Dental plans and vision plans that are excepted benefits are not subject to PCORI fees. Similarly, health flexible spending accounts that are excepted benefits are not subject to PCORI fees. For plans with plan years that ended on or after January 1, 2021, through September 31, 2021, the fee is $2.66 per covered life. For plans with plan years that ended on or after October 1, 2021, through December 31, 2021, the fee is $2.79 per covered life.” Full Article – Jackson Lewis P.C.
HHS Issues Guidance on Post-Dobbs PHI Protections Under HIPAA Privacy Rule “The HHS guidance outlines the types of non- healthcare disclosures of PHI that are permitted without an individual’s authorization. The guidance also describes how the Privacy Rule applies to such disclosures in the context of PHI that contains abortion and other sexual and reproductive healthcare information. For each such disclosure, HHS emphasizes that covered entities are permitted, but not required, to disclose the PHI.” Full Article – Ogletree Deakins
Health Plan’s Blanket Exclusion for Wilderness Therapy Violated MHPAEA “Accepting the dependent’s argument, the court concluded that for parity analysis purposes, skilled nursing facilities were the medical/surgical analog to residential treatment centers for MH/SUD conditions. Next, the court noted that there was no evidence that the administrator would deny benefits in a skilled nursing facility (on the medical/surgical side) merely because the care occurred in a wilderness setting. According to the court, this tended to support the dependent’s argument that the administrator had created a wilderness treatment exclusion that applied only to behavioral health programs — in violation of MHPAEA.” Full Article – Thomson Reuters Practical Law
May Abortions Be Reimbursed on a Tax-Free Basis from a Health FSA, an HRA, or an HSA? “The following expenses may be reimbursed from an FSA, HRA, or HSA under current federal tax law: [1] The cost of the abortion procedure, if legal; [2] Transportation expenses, if out-of-state travel is required; and [3] Lodging (up to $50 per night), assuming that the care is received from a physician in a hospital or an equivalent facility. Many issues will depend on the interpretation of the IRS or the courts.” Full Article – Dickinson Wright
Amendment to Group Health Plan Fee Disclosure Rules Can Reduce Plan Costs “Now that plan fiduciaries have easier access to the compensation paid to these service providers, they can judge whether the compensation is reasonable and potentially cut costs by switching service providers…. Fiduciaries could also explore eliminating indirect compensation to service providers to save costs.” Full Article – Hall Benefits Law
Fourth Circuit Revives Retirees’ Claim of Vested Retiree Life Insurance Coverage “The Fourth Circuit agreed with the plaintiffs that if their retiree life insurance coverage were ever a vested benefit, PPG could not rely on the later-added reservation of rights clause to terminate that coverage. If the removal of the prior reservation of rights clause in 1969 vested retiree life insurance coverage for Plan participants working between 1969 and 1984, then the 1984 reservation of rights clause only allowed PPG to modify or terminate retiree life insurance coverage for participants hired after the clause’s adoption.” Full Article – Roberts Disability Law
STATE & INTERNATIONAL COMPLIANCE
In addition to the RISQ Review, RISQ Consulting also provides a resource that features changes and updates to State and International Compliance measures. We’ve included brief summaries of each item below, and also provided links to the original articles if you’d like to read further.
CALIFORNIA
Lights, Camera . . .West Hollywood Paid Time Off Ordinance
“West Hollywood has joined the growing ranks of California cities that have their own local sick leave and/or minimum wage requirements. West Hollywood enacted an ordinance that creates new paid and unpaid time off mandates as well as minimum wage obligations and mandates the distribution of service charges. The new ordinance went into effect for most employers July 1, 2022.” Full Article
– Seyfarth Shaw
NEW MEXICO
If Pain, Yes Gain—Part 101: New Mexico Paid Sick Leave Law in Effect Today; Final Rules, Model Poster and FAQs Available
“The New Mexico statewide paid sick leave law is in effect as of July 1, 2022. The state recently released a series of related materials—final rules, detailed FAQs, model posters, a policy compliance checklist, and a guide to the law.” Full Article
– Seyfarth Shaw
LOUISIANA
Now I Know My CBDs – Louisiana Court Favors Employee Terminated for Failing Marijuana Test
“You can purchase CBD legally in all U.S. states, but most states still have laws making THC (the psychoactive component in marijuana) illegal, especially without a prescription. However, CBD can trigger a positive drug test. Hemp-derived CBD may contain low levels of THC that show up on a drug test. The Eastern District of Louisiana tackled this very issue in considering if the ADA protects an employee when a positive drug test may have been triggered by CBD use.” Full Article
– Bradley Arant Boult Cummings
NEW JERSEY
Non-Disparagement Provisions Not Barred by NJLAD’s #MeToo Amendments, For Now
“In response to the #MeToo movement, New Jersey enacted N.J.S.A. 10:5-12.8, which amended the New Jersey Law Against Discrimination (NJLAD) to prohibit, in employment contracts or settlement agreements, any non-disclosure or confidentiality provisions that have “the purpose or effect of concealing the details relating to a claim of discrimination, retaliation, or harassment.” In Savage v. Township of Neptune, No. A-14: 5-20, the Appellate Division confronted the question of whether N.J.S.A. 10:5-12.8 also applies to non-disparagement provisions, and concluded it does not.” Full Article
– Littler Mendelson
ILLINOIS
New Legal Obligations for Chicago and Illinois Employers
“As of July 1, 2022, amendments to the Chicago Human Rights Ordinance went into effect, requiring employers with at least one employee working within the city’s boundaries to update sexual harassment policies; display new posters; and augment their sexual harassment training. Employers who fail to comply could face fines of up to $10,000 per day.” Full Article
– Benesch Friedlander Coplan & Aronoff
- Published in Blog
The RISQ RECAP – July 11th – July 15th, 2022
July 11th – July 15th, 2022
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
Mass Shooting Insurance Rates Jump as Incidents Rise
“The cost of buying insurance protection against mass shootings has spiked more than 10% in the United States this year following a string of deadly events, insurers said. The United States witnessed 293 mass shootings so far this year, according to a report by the Gun Violence Archive that defines them as any event involving the shooting of four or more people other than the assailant. That compares with 309 the same period last year, but is sharply up from 240 in 2020.” Full Article
– Insurance Journal
EMPLOYEE BENEFITS, HUMAN RESOURCES, & COMPLIANCE
The Future of Hybrid Working: Full Steam Ahead or a Screeching U-turn? “As various restrictions put in place during the global coronavirus pandemic have lifted across the world, many businesses have embraced hybrid working. However, as we look to the future, are these working arrangements of the so-called “new normal” really here to stay? We consider below whether there are already significant factors at play that could prompt many businesses to want to withdraw from hybrid working and, if so, what legal considerations this could entail.” Full Article – Seyfarth Shaw
EEOC Sanctions Employer for GINA Violations Relating to Collection of Employees’ Family Members’ COVID Test Results “On July 6, 2022, the Equal Employment Opportunity Commission (EEOC) announced it has entered into a conciliation agreement with a Florida-based medical practice for violations of the Genetic Information Non-Discrimination Act (GINA) arising out of the practice’s collection of employees’ family members’ COVID-19 testing results.” Full Article – Proskauer Rose
What the Supreme Court’s Recent Decisions on Guns and Prayer Mean for Private Employers “Two decisions handed down by the Supreme Court last month held that government actions were unconstitutional. In Kennedy v. Bremerton School District, the Court held that a public school district’s instruction to a high school football coach that he could not pray on the field after each game violated the First Amendment. A New York State law limiting individuals from carrying concealed weapons was found, in New York State Rifle & Pistol Ass’n Bruen, to run afoul of the Second Amendment. Central to both those decisions was that they involved state action – a government body telling individuals what they could not do.” Full Article – Levy Employment Law
Loss of Job Over Religious Vax Refusal ≠ Irreparable Harm “In Halczenko v. Ascension Health, Inc., the doctor, who objected to the COVID vaccine on religious grounds, was terminated for failing to comply with the hospital’s vaccine mandate. He sought a preliminary injunction to reinstate him while his lawsuit was proceeding. In order to receive a preliminary injunction, a plaintiff must show that they will experience irreparable injury absent the injunction, among other things. The doctor argued that the termination caused him such injury because his professional skills would deteriorate within 6 months to the point he would no longer be able to work, and that he was unable to secure another position in the interim.” Full Article – Shawe Rosenthal
Event in Review: Navigating Internal Investigations at Nonprofits “An allegation of misconduct or illegality can have very harmful effects for an organization: it can hurt staff morale, violate an organization’s mission, and, in extreme circumstances, can threaten a nonprofit’s exempt status. During a recent luncheon program, Venable partners George Constantine, Eric Berman, and Doreen Martin, along with Jesse Raben, general counsel and COO of The Trust, discussed how nonprofits should navigate internal investigations that can arise from whistleblower complaints, government inquiries, or any other violation of the organization’s policies.” Full Article – Venable
EEOC Issues First Guidance on Algorithm-Driven Employment Decisions “The last several years have seen algorithm-driven technologies like artificial intelligence (AI) and other algorithmic or automated decision-making systems proliferate throughout nearly every industry, from managing the supply chain to detecting and preventing fraud and helping farmers decide what crops to plant. Employment-related decisions are no exception; employers are increasingly using algorithmic decision-making systems in the hiring and evaluation of employees, with an eye to eliminating bias and discrimination in these processes.” Full Article – Venable
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
Lights, Camera . . .West Hollywood Paid Time Off Ordinance
“West Hollywood has joined the growing ranks of California cities that have their own local sick leave and/or minimum wage requirements. West Hollywood enacted an ordinance that creates new paid and unpaid time off mandates as well as minimum wage obligations and mandates the distribution of service charges. The new ordinance went into effect for most employers July 1, 2022.” Full Article
– Seyfarth Shaw
NEW MEXICO
If Pain, Yes Gain—Part 101: New Mexico Paid Sick Leave Law in Effect Today; Final Rules, Model Poster and FAQs Available
“The New Mexico statewide paid sick leave law is in effect as of July 1, 2022. The state recently released a series of related materials—final rules, detailed FAQs, model posters, a policy compliance checklist, and a guide to the law.” Full Article
– Seyfarth Shaw
LOUISIANA
Now I Know My CBDs – Louisiana Court Favors Employee Terminated for Failing Marijuana Test
“You can purchase CBD legally in all U.S. states, but most states still have laws making THC (the psychoactive component in marijuana) illegal, especially without a prescription. However, CBD can trigger a positive drug test. Hemp-derived CBD may contain low levels of THC that show up on a drug test. The Eastern District of Louisiana tackled this very issue in considering if the ADA protects an employee when a positive drug test may have been triggered by CBD use.” Full Article
– Bradley Arant Boult Cummings
NEW JERSEY
Non-Disparagement Provisions Not Barred by NJLAD’s #MeToo Amendments, For Now
“In response to the #MeToo movement, New Jersey enacted N.J.S.A. 10:5-12.8, which amended the New Jersey Law Against Discrimination (NJLAD) to prohibit, in employment contracts or settlement agreements, any non-disclosure or confidentiality provisions that have “the purpose or effect of concealing the details relating to a claim of discrimination, retaliation, or harassment.” In Savage v. Township of Neptune, No. A-14: 5-20, the Appellate Division confronted the question of whether N.J.S.A. 10:5-12.8 also applies to non-disparagement provisions, and concluded it does not.” Full Article
– Littler Mendelson
ILLINOIS
New Legal Obligations for Chicago and Illinois Employers
“As of July 1, 2022, amendments to the Chicago Human Rights Ordinance went into effect, requiring employers with at least one employee working within the city’s boundaries to update sexual harassment policies; display new posters; and augment their sexual harassment training. Employers who fail to comply could face fines of up to $10,000 per day.” Full Article
– Benesch Friedlander Coplan & Aronoff
- Published in Blog
The RISQ RECAP – July 4th – July 8th, 2022
July 4th – July 8th, 2022
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
25 Years: The Journey of Cyber Insurance
“While young underwriters may think that cyber insurance is a recent coverage innovation, the line is actually more than two decades old. Here, Kurtis Suhs, a veteran of the cyber insurance industry who served as an investigator and criminal coordinator for the FDIC early in his career and later as a broker for INSUREtrust in the late 1990s, gives a personal account of the development of the cyber insurance industry from his vantage point and assessment of the market today. This year marks the 25th anniversary of the cyber insurance market.” Full Article
– Insurance Journal
EMPLOYEE BENEFITS, HUMAN RESOURCES, & COMPLIANCE
Big Employers Are Offering Abortion Benefits. Will the Information Stay Safe? “Human resources departments are required to keep some medical data closely held, but a determined law enforcement agent with a search warrant or subpoena could ultimately get access to patient data. That will complicate life for the dozens of corporations promising to protect, or even expand, the abortion benefits for employees and their dependents.” Full Article – Kaiser Health News
FTC Votes to Examine PBM Practices “The Commission is particularly concerned that PBMs’ efforts to realize maximum levels of manufacturer-paid rebates and fees (some or all of which are retained by the PBM) result in PBMs preferring higher cost, brand (i.e., patented) drug products on their formularies. The Commission is concerned that such PBM and manufacturer practices diminish the competitive market effect that lower- cost biosimilars and generic drugs would otherwise be having on overall drug pricing.” Full Article – Wiley Rein LLP
Secretaries Becerra, Walsh and Yellen Underscore Contraceptive Coverage Mandate for Private Insurance “In all fifty states, the ACA guarantees coverage of women’s preventive services, including free birth control and contraceptive counseling, for individuals and covered dependents. Recent reports have shown that some issuers and plans may not be appropriately providing this coverage. The letter is another step for the Departments to put the industry on notice for the required coverage and demand prompt action to ensure that people can rightfully access the birth control they need.” Full Article – BP
Health Plan’s Exclusion of Gender Affirming Care Violates Title VII and U.S. Constitution “The trial court found that the plan’s exclusion discriminated based on sex and transgender status in violation of the U.S. Constitution’s Equal Protection Clause and because of sex in violation of Title VII of the Civil Rights Act of 1964. The court declined to rule on claims alleged under ACA Section 1557, pending the issuance of proposed regulations.” Full Article – Thomson Reuters / EBIA
The Eleventh Circuit Says – Correctly – That the Widow of a Deceased Employee Can Recover Life Insurance Benefits Even Though the Deceased Employee Was Never Enrolled in the Plan Due to the Plan Administrator’s Mistakes “District courts have come to accept the premise that, in light of the Supreme Court’s recognition in Amara of equitable remedies for fiduciary errors, the value of the absent life insurance benefits should be recoverable as equitable relief independent of the plan and the lack of coverage for that amount under the plan itself. The acceptance of this premise has now progressed to the Circuit Court of Appeal level.” Full Article – Stephen Rosenberg of The Wagner Law
Post-Dobbs: FAQs for Employers and Other Benefit Plan Sponsors “Can a group health plan reimburse travel expenses in excess of the applicable IRS limits? Do plan sponsors have to consider mental health parity concerns when adding travel benefits to access reproductive coverage? Can employers just ‘pay as you go’ outside a group health plan, and offer ad-hoc taxable reimbursements of travel expenses to access reproductive care? Can a separate health reimbursement arrangement (HRA) be created solely for reimbursing travel expenses to access reproductive care? Does Dobbs impact infertility benefit coverage under a group health plan?” Full Article – Proskauer
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.
D.C.
Washington, DC, Takes Steps to Protect Employees’ Off-Duty Marijuana Use
“DC city Council unanimously passed a bill on June 7. Under the act, employers cannot base an adverse employment action on (1) an individual’s legal, off-duty use of cannabis; (2) an individual’s status as a medical cannabis program patient; or (3) the presence of cannabinoid metabolites on a drug test, without additional evidence of on-the-job impairment.” Full Article
– Morgan, Lewis & Bockius LLP
Rhode Island
Rhode Island Legalizes Recreational Marijuana and Protects Off-Duty Use for Employees
“Rhode Island Governor Dan McKee signed a bill on May 25 legalizing recreational marijuana in the state. The law, which took effect immediately, prohibits basing adverse employment actions on off-duty marijuana use, unless certain limited exceptions apply.” Full Article
– Morgan, Lewis & Bockius LLP
New York
New York State Legislature Approves Statutory Protections for Independent Contractors
“New York State Freelance Isn’t Free Act, if signed by Governor Kathy Hochul, would take effect 180 days after signing and would apply to contracts entered into with certain independent contractors on or after that effective date. Employers that contract with freelancers and other independent contractors should begin to prepare for compliance, including by ensuring that any contracts will satisfy the Act’s requirements.” Full Article
– Patterson Belknap Webb & Tyler
Maryland
Maryland Employers: Your Sexual Harassment Disclosure Survey Response Is Due by July 1, 2022
“Maryland employers with 50 or more employees are required to submit a report by July 1, 2022 to the Maryland Commission on Civil Rights regarding any sexual harassment settlements during the past two years. The Maryland General Assembly passed the “Disclosing Sexual Harassment in the Workplace Act of 2018” that, in part, requires larger employers to submit two reports on sexual harassment settlements – the first of which was supposed to have occurred in 2020, and the second by July 1, 2022.” Full Article
– Shaw Rosenthal LLP
Illinois
Illinois Expands Its Bereavement Leave Act
“Illinois recently amended its Child Bereavement Leave Act to expand the reasons for leave, including miscarriage and stillbirth, and adds additional covered family members. The law will now be called the “Family Bereavement Leave Act” and goes into effect on January 1, 2023.” Full Article
– Seyfarth Shaw
- Published in Blog
The RISQ RECAP – June 27th – July 1st, 2022
June 27th – July 1st, 2022
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
Some Western U.S. Cities Nixing July 4 Fireworks over Fire Dangers, Shortages
“The skies over a scattering of Western U.S. cities will stay dark for the third consecutive Fourth of July as some major fireworks displays are canceled again this year – some over wildfire concerns amid dry weather and others because of enduring pandemic-related staffing and supply chain issues. Phoenix canceled its three major Independence Day displays because it couldn’t obtain professional-grade fireworks. Shows in several other cities around Phoenix are still on.” Full Article
– Insurance Journal
EMPLOYEE BENEFITS, HUMAN RESOURCES, & COMPLIANCE
U.S. DOL Releases Guidance on FMLA Leave and Mental Health “On May 25, 2022, the U.S. Department of Labor announced that the Wage and Hour Division (WHD) published new Family and Medical Leave Act (FMLA) Guidance. The newly issued Fact Sheet #280 explains when eligible employees may take FMLA leave to address mental health conditions, and new Frequently Asked Questions (FAQs) offer explanations on how to address various scenarios that employers and employees could face in which use of job-protected leave available under the FMLA would be appropriate.” Full Article – Epstein Becker & Green PC
NLRB Releases Spring Rulemaking Agenda Forecasting Changes to Joint Employer Standard and Representation Election Procedures “On June 21, 2022, the National Labor Relations Board (“NLRB”) released its rulemaking agenda for Spring 2022, indicating the Board is considering revisions to two significant and tumultuous topics pursuant to the rulemaking process: (1) the joint- employer standard under the National Labor Relations Act (“NLRA”), and (2) representation procedures, including those relating to blocking charges, voluntary recognition and bargaining relationships in the construction industry.” Full Article – Proskauer Rose LLP
Checking Applicant Backgrounds? Be Careful! “Background checks are a great idea — unless you fail to do them correctly. Mistakes can be costly. One online retailer paid $5 million to settle a class action filed by 454,000 job applicants alleging violations of the Fair Credit Reporting Act (FCRA), a key federal law governing the conduct of background checks. The number of such lawsuits continues to rise: it doubled between 2009 and 2018, and every year since then has marked a new high. There were 5,406 FCRA lawsuits filed in 2021 alone and, based on the 1,500 filed in the first three months of 2022, this year there will be even more. Accordingly, now is the time to take a careful look at your company’s hiring documents and the way you screen potential employees.” Full Article – Akerman LLP
You Have Mail (Better Read It): District Court Finds EEOC 90-Day Deadline Starts When Email Received “If a letter from the EEOC is in your virtual mailbox but you never open it, have you received it? Most of us are familiar with the requirement that a claimant who files an EEOC charge has 90 days to file a lawsuit after receiving what is usually required a “right-to-sue” letter from the agency. This is one of the deadlines that both plaintiff and defense counsel track on their calendars. But when is that notice officially “received” by the claimant — especially in these days of electronic correspondence? In Paniconi v. Abington Hospital-Jefferson Health, one Pennsylvania federal court decided to draw a hard line on when that date actually occurs.” Full Article – Bradley Arant Boult Cummings LLP
Metaverse in the Workplace: What Do Employers Need to Know “Emerging technologies are creating a host of new legal issues for employers. The rise of the metaverse has been one of the most anticipated expansions over the last few years. The metaverse is a virtual world that allows users to interact with each other in simulated environments. The metaverse in the workplace has been expanding rapidly as businesses explore the use of virtual reality and augmented reality to improve workflows and communication.” Full Article – Brennan Manna Diamond LLC
Employee Talent Wars Gain Unprecedented Ammunition from Changing Antitrust Landscape “The labor market has become more challenging for employers following COVID-19, and the need for well-trained, experienced employees far exceeds the supply. In addition to undermining investments in training and professional development, rampant departures are threatening the ability of employers to maintain confidential and proprietary information – including trade secrets. The legal landscape also is affecting the labor market, with enforcement of traditional non-compete agreements by employers becoming more difficult in recent years.” Full Article – Holland & Knight 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.
D.C.
Washington, DC, Takes Steps to Protect Employees’ Off-Duty Marijuana Use
“DC city Council unanimously passed a bill on June 7. Under the act, employers cannot base an adverse employment action on (1) an individual’s legal, off-duty use of cannabis; (2) an individual’s status as a medical cannabis program patient; or (3) the presence of cannabinoid metabolites on a drug test, without additional evidence of on-the-job impairment.” Full Article
– Morgan, Lewis & Bockius LLP
Rhode Island
Rhode Island Legalizes Recreational Marijuana and Protects Off-Duty Use for Employees
“Rhode Island Governor Dan McKee signed a bill on May 25 legalizing recreational marijuana in the state. The law, which took effect immediately, prohibits basing adverse employment actions on off-duty marijuana use, unless certain limited exceptions apply.” Full Article
– Morgan, Lewis & Bockius LLP
New York
New York State Legislature Approves Statutory Protections for Independent Contractors
“New York State Freelance Isn’t Free Act, if signed by Governor Kathy Hochul, would take effect 180 days after signing and would apply to contracts entered into with certain independent contractors on or after that effective date. Employers that contract with freelancers and other independent contractors should begin to prepare for compliance, including by ensuring that any contracts will satisfy the Act’s requirements.” Full Article
– Patterson Belknap Webb & Tyler
Maryland
Maryland Employers: Your Sexual Harassment Disclosure Survey Response Is Due by July 1, 2022
“Maryland employers with 50 or more employees are required to submit a report by July 1, 2022 to the Maryland Commission on Civil Rights regarding any sexual harassment settlements during the past two years. The Maryland General Assembly passed the “Disclosing Sexual Harassment in the Workplace Act of 2018” that, in part, requires larger employers to submit two reports on sexual harassment settlements – the first of which was supposed to have occurred in 2020, and the second by July 1, 2022.” Full Article
– Shaw Rosenthal LLP
Illinois
Illinois Expands Its Bereavement Leave Act
“Illinois recently amended its Child Bereavement Leave Act to expand the reasons for leave, including miscarriage and stillbirth, and adds additional covered family members. The law will now be called the “Family Bereavement Leave Act” and goes into effect on January 1, 2023.” Full Article
– Seyfarth Shaw
- Published in Blog
The RISQ RECAP – June 20th – June 24th, 2022
June 20th – June 24th, 2022
Each week, you’ll find specially curated news articles to keep you up to date on the ever-evolving world of insurance and risk management. The articles are divided out between items relevant to Property & Casualty, Employee Benefits/Human Resources, and Compliance. We’ve included brief summaries of each item as well as a link to the original articles.
PROPERTY & CASUALTY
California Railroad Testing Use of Quake Alerts to Halt Trains
“A Southern California regional passenger rail service announced that it is testing technology that will use the West Coast’s earthquake early warning system to automatically slow or stop trains before shaking begins. The five-county Metrolink system said the technology is an advancement of a previous version deployed in September 2021 that sends automated messages instructing train crews to slow or stop but does not have automated braking.” Full Article
– Insurance Journal
EMPLOYEE BENEFITS, HUMAN RESOURCES, & COMPLIANCE
Biden Administration Signals Mental Health Parity Enforcement a Priority with Fiscal 2023 Budget “The proposed budget reflects a substantial and sustained commitment to ramp up enforcement efforts, with specific funding for MHPAEA audit activity, including $275 million for the DOL over a 10-year period and $125 million for state grants to support their MHPAEA enforcement efforts.” Full Article – Akerman
Can Our DCAP Reimburse a ‘Hold-the-Spot’ Fee? “Although the regulations do not specifically address hold-the-spot fees of the type your participant has asked about, an IRS official has informally commented that a hold-the-spot fee may qualify as an indirect expense if it must be paid to obtain care when the leave is over.” Full Article – Thomson Reuters / EBIA
Preventive Care May Be Free, But Follow-Up Diagnostic Tests Can Bring Big Bills “Under the ACA, many preventive services — such as breast and colorectal cancer screening — are covered at no cost. But if a screening returns an abnormal result and a health care provider orders more testing to figure out what’s wrong, patients may be on the hook for hundreds or even thousands of dollars for diagnostic services.” Full Article – Kaiser Health News
TPA’s Administrative Activities and Handling of Plan-Related Funds Did Not Make It a Plan Fiduciary “The Hi-Lex decision likely made many TPAs uneasy, so they will appreciate that this court has called the Sixth Circuit’s reasoning into question. Plans and TPAs will want to keep an eye on this case. The plan has appealed to the First Circuit, which may reach a different conclusion, potentially leading to a circuit split and consideration of the issue by the U.S. Supreme Court.” Full Article – Thomson Reuters / EBIA
CMS Imposes First Price Transparency Rule Penalties “On June 7, 2022, CMS fined Northside Hospital Atlanta, in Atlanta, Ga., $883,180, and Northside Hospital Cherokee, in Canton, Ga., $214,320. CMS has stated that these fines are due to the hospitals’ failure to have a consumer-friendly, searchable list of standard charges posted in a prominent manner that clearly identified the location of the hospital. CMS further noted that the hospitals failed to include all required services in a machine-readable file, and services weren’t included in a single file, as required by the Rule.” Full Article – Husch Blackwell
When Will the Pandemic Be Over for Employer Health Plans? “As of June 15, 2022: [1] The National Emergency will end on February 28, 2023; [2] The Public Health Emergency will end on October 12, 2022; and – Foley & Lardner LLP
[3] The HDHP/telehealth provision expires on December 31, 2022. HHS has indicated that they will give the public at least 60 days’ notice before the formal end to the Public Health Emergency.” Full Article
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
Local Minimum Wage Set to Increase July 1
“A statewide minimum of $15.00 for all businesses was scheduled to go into effect on January 1, 2023. However, as a result of rates of inflation of over 7%, a further statutory increase has been triggered and the
statewide minimum wage will now increase to $15.50 on January 1, 2023.” Full Article
– Jackson Lewis
New Jersey
New Jersey Employers: Plan Ahead for the Long-Delayed Overhaul of the State’s WARN Act
“On January 21, 2020, months before the COVID-19 pandemic emerged in the United States, New Jersey Governor Phil Murphy signed into law New Jersey Senate Bill 3170, ushering into law significant amendments to the Millville Dallas Airmotive Plant Job Loss Notification Act (NJ WARN Act), New Jersey’s state law counterpart to the federal WARN Act. Originally set to take effect in July 2020, the pandemic set into motion a series of postponements. ” Full Article
– Duane Morris
New York
New York City Wage Transparency Law Guidance Issued
“On May 12, 2022, the New York City Commission on Human Rights released a fact sheet providing guidance on the amended NYC salary transparency law, which is currently set to take effect on November 1, 2022. The amended salary transparency law requires NYC employers to include minimum and maximum salary information in job postings for any position located within New York City.” Full Article
– Patterson Belknap Webb & Tyler
Michigan
Wage and Hour Law 101 for Employers
“Effective on January 1, 2022, the statewide minimum wage in Michigan was increased to $9.87/hour for regular hourly workers, a 22-cent raise over 2021. Exceptions to the law are for tipped workers, the rate is $3.75, as long as reported tips average $6.12, 17 and 17-year-olds, whose rate was increased to $8.39, and training wages for 16-19-year-olds for the first 90 days of their employment, which stands at $4.25/hour.” Full Article
– Foster Swift
Illinois
Amendments To Illinois’ One Day Rest in Seven Act Mitigates Against Hunger Pangs and Rest Deprivation
“Illinois Governor J.B. Pritzker signed into law SB3146, amending the provisions of the Illinois One Day Rest in Seven Act (ODRISA), which addresses both day of rest and meal break requirements for employees in the state. Fortunately for employers, the amendments do not take effect until January 1, 2023, so there is plenty of time for Illinois employers to make sure their policies and process conform to these changes, which are significant.” Full Article
– Seyfarth Shaw
- Published in Blog
The RISQ RECAP – June 13th – June 17th, 2022
June 13th – June 17th, 2022
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
Insurers Increasingly Concerned for Western U.S. Wildfire Season
“As Western wildfires force evacuations in Arizona and California – on the heels of an early and severe wildfire season in New Mexico – insurers are increasingly eyeing the growing risks. ‘Insurers are very much concerned about the wildfire situation,’ said Arindam Samanta, director of product management for Verisk Underwriting Solutions. ‘We are talking to dozens of insurers.’” Full Article
– Insurance Journal
EMPLOYEE BENEFITS, HUMAN RESOURCES, & COMPLIANCE
Employers: Take Steps Now to Prevent Workplace Violence and Protect Employees “The rise in workplace violence, and violence in general, should prompt employers to consider what they can and should do to protect their employees, customers, and business. It is especially important to do so now, as more and more employers are requiring their employees to return to work in person following the pandemic.” Full Article – Akerman
‘That’s So Meta:’ Workplace Harassment Issues in a Virtual World “With the advent of virtual reality (VR) games, increasing numbers of players can now interact online to play games in a digital environment called a “metaverse.” VR headsets allow the players to immerse themselves in the digital environment, divorced from the tangible, natural world. AR and VR technology is rapidly developing beyond the gaming applications to internal and external business applications.” Full Article – State Bar of Wisconsin
EEOC Issues Guidance Addressing How the Use of Artificial Intelligence in Employment Decisions Could Violate the ADA “On May 12, 2022, the United States Equal Employment Opportunity Commission (“EEOC”) issued technical guidance addressing how an employer’s use of software, algorithmic decision- making tools and AI to assist them in hiring workers, monitoring worker performance, determining pay or promotions, and establishing the terms and conditions of employment could violate the Americans with Disabilities Act (“ADA”).” Full Article – Mintz Levin
Website Compliance with the ADA: Is Your Company Compliant With the Latest DOJ Guidance? “While commercial businesses are typically aware of their responsibilities under the Americans with Disability Act (the “ADA” or the “Act”) relative to the maintenance of their physical office spaces and general corporate policies, some businesses have been the recipients of demand letters alleging violations of the ADA based on a purportedly non-compliant website. Financial institutions in particular, as well as other businesses that maintain significant operations through online customer portals, have been the primary focus of these efforts.” Full Article – Krieg Devault
Women Leaders Excel in Times of Crisis: Lessons Learned and a Call to Action “U.S. The pandemic’s negative impact on women in the workforce is unlikely to reverse anytime soon. In the first year of the pandemic alone, 54 million women around the world left the workforce-almost 90% of whom exited the labor force completely. As reported recently in the Harvard Business Review, “[t]he participation rate for women in the global labor force is now under 47%, drastically lower than men at 72%.” Women are currently at their lowest labor force participation rates since 1977. As one commentator recently reported, women are quitting their jobs at a rate 22% higher than men.” Full Article – Robins Kaplan
Is “Tenure” a Euphemism for Age? “The U.S. Court of Appeals for the Fifth Circuit nonetheless found that a manager’s stated refusal to hire “tenured employees” was not direct evidence of age discrimination in this particular case. As the Fifth Circuit explained, comments will constitute direct evidence of discrimination when they are 1) related to the protected class of persons of which the plaintiff is a member; 2) proximate in time to the complained – Shawe Rosenthal
-of adverse employment decision; 3) made by an individual with authority over the employment decision at issue; and 4) related to the employment decision at issue. If these criteria are not met, such comments are considered “stray remarks” that will not, by themselves, support a claim of discrimination.” Full Article
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
Local Minimum Wage Set to Increase July 1
“A statewide minimum of $15.00 for all businesses was scheduled to go into effect on January 1, 2023. However, as a result of rates of inflation of over 7%, a further statutory increase has been triggered and the
statewide minimum wage will now increase to $15.50 on January 1, 2023.” Full Article
– Jackson Lewis
New Jersey
New Jersey Employers: Plan Ahead for the Long-Delayed Overhaul of the State’s WARN Act
“On January 21, 2020, months before the COVID-19 pandemic emerged in the United States, New Jersey Governor Phil Murphy signed into law New Jersey Senate Bill 3170, ushering into law significant amendments to the Millville Dallas Airmotive Plant Job Loss Notification Act (NJ WARN Act), New Jersey’s state law counterpart to the federal WARN Act. Originally set to take effect in July 2020, the pandemic set into motion a series of postponements. ” Full Article
– Duane Morris
New York
New York City Wage Transparency Law Guidance Issued
“On May 12, 2022, the New York City Commission on Human Rights released a fact sheet providing guidance on the amended NYC salary transparency law, which is currently set to take effect on November 1, 2022. The amended salary transparency law requires NYC employers to include minimum and maximum salary information in job postings for any position located within New York City.” Full Article
– Patterson Belknap Webb & Tyler
Michigan
Wage and Hour Law 101 for Employers
“Effective on January 1, 2022, the statewide minimum wage in Michigan was increased to $9.87/hour for regular hourly workers, a 22-cent raise over 2021. Exceptions to the law are for tipped workers, the rate is $3.75, as long as reported tips average $6.12, 17 and 17-year-olds, whose rate was increased to $8.39, and training wages for 16-19-year-olds for the first 90 days of their employment, which stands at $4.25/hour.” Full Article
– Foster Swift
Illinois
Amendments To Illinois’ One Day Rest in Seven Act Mitigates Against Hunger Pangs and Rest Deprivation
“Illinois Governor J.B. Pritzker signed into law SB3146, amending the provisions of the Illinois One Day Rest in Seven Act (ODRISA), which addresses both day of rest and meal break requirements for employees in the state. Fortunately for employers, the amendments do not take effect until January 1, 2023, so there is plenty of time for Illinois employers to make sure their policies and process conform to these changes, which are significant.” Full Article
– Seyfarth Shaw
- Published in Blog
The RISQ RECAP – June 6th – June 10th, 2022
June 6th – June 10th, 2022
Each week, you’ll find specially curated news articles to keep you up to date on the ever-evolving world of insurance and risk management. The articles are divided out between items relevant to Property & Casualty, Employee Benefits/Human Resources, and Compliance. We’ve included brief summaries of each item as well as a link to the original articles.
PROPERTY & CASUALTY
A Look at OSHA’s Top 10 Safety Violations
“Workers’ compensation claims can result directly from worksite conditions, whether in construction, manufacturing, distribution, office or other environments. The Occupational Safety and Health Administration (OSHA) tracks violations of safety and health standards, which can lead to workers’ comp claims.” Full Article
– Insurance Journal
EMPLOYEE BENEFITS, HUMAN RESOURCES, & COMPLIANCE
2022 Medical Loss Ratio Rebates “Insurers estimate they will issue a total of about $1 billion in MLR rebates across all commercial markets in 2022. Expected rebate amounts vary by market segment, with the majority going to individual market enrollees, including ACA Marketplace enrollees. Insurers in the individual market estimate they will issue $603 million in rebates, small group market insurers will issue $275 million in rebates, and large group market insurers will issue $168 million in rebates later this year.” Full Article – Henry J. Kaiser Family Foundation
July 1 Deadline Looming for Health Plan Transparency Rules “The next item plan sponsors must address will be making public disclosures regarding in-network and out-of-network rates beginning July 1, 2022. To meet that deadline, plan sponsors should be working with carriers and third-party administrators (TPA) to ensure they have the necessary information in the proper format to comply with the new rules.” Full Article – Fisher Phillips
I’m Leaving on a Jet Plane… Is Abortion Care Travel a Covered Benefit? “Employer considerations when designing an abortion care travel reimbursement benefit include: Do the travel expenses constitute medical care; Will the travel reimbursement benefit be offered under the company’s group health plan; How will state laws impact an employer’s ability to provide the travel reimbursement benefit; Will the reimbursement be taxable compensation to employees? Other considerations include the impact on eligibility for an employee’s participation in a health savings account (HSA). HIPAA and privacy issues, and the ability to permit mid-year election changes in connection with the addition of the benefit.” Full Article – Holland & Hart LLP
Premium Increases Are Low When Employers Add Pre-Deductible Coverage for Preventive Services ““The impact on premiums of expanding pre- deductible coverage for 14 services in HSA- eligible health plans as allowed in IRS Notice 2019-45 is small. Estimated premium increases range from virtually zero to 1.5 percent. There is no expected premium increase when deductibles are replaced by coinsurance, use of health care services is assumed not to increase due to lower cost sharing, and enrollees’ related diagnoses are required.” Full Article – Employee Benefit Research Institute [EBRI]
Revisiting the HIPAA Proposed Privacy Rule: What Group Health Plan Sponsors Need to Know “The HHS proposed rule includes changes which may impact group health plans and their business associates: [1] Revises Notice of Privacy Practices (NPP) content requirements; [2] Adds exception to minimum necessary requirement for health plan coordination and case management disclosures; [3] Expressly permits disclosures to facilitate care with social and community services; [4] Allows individuals greater access to their PHI; and [5] Clarifies fees and adds fee disclosure requirements.” Full Article – Trucker Huss
Employer Violated ERISA by Interfering With Employee’s Use of Health Benefits “The employee showed that the employer closely tracked invoices for the self-insured health plan and that, even though the information was de-identified, it would not be difficult for the employer to identify individual participants since there were so few employees. The employee also demonstrated that the employer was aware that he would again need costly medical care in the future. Noting that the employee was terminated shortly before a new benefit year started, the court concluded that taken together, the evidence showed retaliation for use of benefits and specific intent to prevent future use of benefits.” Full Article – Thomson Reuters / EBIA
STATE & INTERNATIONAL COMPLIANCE
In addition to the RISQ Review, RISQ Consulting also provides a resource that features changes and updates to State and International Compliance measures. We’ve included brief summaries of each item below, and also provided links to the original articles if you’d like to read further.
California
California Supreme Court Finds Meal and Rest Premiums Subject to Wage Statement and Final Pay Requirements
“The California Supreme Court’s decision in Naranjo v. Spectrum Security Services, Inc. answered in the affirmative, finding that meal and rest premium payments prescribed by the California Labor Code are “wages” subject to California’s wage statement and final pay requirements.” Full Article
– Seyfarth Shaw LLP
Delaware
Delaware Becomes Latest State to Institute Paid Family and Medical Leave
“Delaware Governor John Carey signed into law a bill that will require private employers with ten or more employees in Delaware to provide up 12 weeks of paid family and medical leave beginning in January 2026, one year after payroll tax deductions to fund the program begin on January 1, 2025.” Full Article
– Proskauer Rose LLP
New York
Remote workers outside NY can’t bring bias claims under NY state and city human rights laws, court says
“A federal court recently ruled that an employee working remotely from New Jersey cannot assert claims under New York State’s and New York City’s Human Rights Laws. Judge Edgardo Ramos said that the alleged discriminatory conduct must have an impact on the plaintiff in New York State for the NYSHRL to apply and in New York City for the NYCHRL to apply.” Full Article
– Constangy, Brooks, Smith, Prophete LLP
Ohio
No Such Thing as a Free Lunch: Compensability of Workers’ Compensation Claims During Unpaid Lunch Breaks
“In Ohio, R.C. 4123.01(C) specifies that a compensable injury must occur in the “course of, and arising out of, the injured employee’s employment.” The ability to participate in the workers’ compensation system is dependent on whether a causal connection exists between an employee’s injury and their employment, either through the activities, the conditions, or the environment of the employment.” Full Article
– Ice Miller LLP
Illinois
Illinois Amends One Day Rest in Seven Act, Adding Stricter Penalties and More Stringent Notice Requirements
“Illinois Governor J.B. Pritzker signed into law SB3146, amending the provisions of the Illinois One Day Rest in Seven Act (ODRISA), which addresses both day of rest and meal break requirements for employees in the state. Fortunately for employers, the amendments do not take effect until January 1, 2023, so there is plenty of time for Illinois employers to make sure their policies and process conform to these changes, which are significant.” Full Article
– Littler Mendelson PC
- Published in Blog