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
The RISQ RECAP – May 30th – June 3rd, 2022
May 30th – June 3rd, 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
New Rules Require Washington Employers to Monitor Temp, Air Quality Starting Mid-June
“Employers in Washington will be required to monitor temperature and air quality, take steps to protect workers from heat and smoke hazards, and provide training and information from June 15 through the end of September, The Washington Department of Labor & Industries on Wednesday filed emergency outdoor heat exposure and wildfire smoke rules to protect farm and construction workers, roofers, road crews, and anyone else whose job keeps them outside. The order is designed to help keep workers safe this summer.” Full Article
– Insurance Journal
EMPLOYEE BENEFITS, HUMAN RESOURCES, & COMPLIANCE
SCOTUS Resolves Circuit Split: A Showing of Prejudice Not Required to “Waive” Right to Arbitration “On May 23, in a unanimous opinion, the U.S. Supreme Court held that employers who do not act promptly to invoke an arbitration clause may be held to waive arbitration. In so holding, the Court resolved a circuit court split over whether a party arguing waiver had to demonstrate prejudice. The Court held that prejudice was not a requirement. The Court’s holding departs from its generally pro- arbitration holdings over the last 15 years. The opinion is instructive in both employment law and arbitration law.” Full Article – Troutman Pepper
Employers and Foreign Nationals Can Avoid Employment Gaps with New Automatic Work Permit Extension “U.S. employers and qualified foreign nationals should take advantage of USCIS’ recent move to increase the automatic extension period for foreign nationals waiting on employment authorization renewals. This automatic extension would make a large number of foreign nationals eligible for employment by providing up to 540 days of employment authorization. It will also help U.S. employers and their impacted employees avoid gaps in employment caused by processing backlogs.” Full Article – Phelps Dunbar LLP
Holding On, Loosely: Incentives for Employee Retention “Let’s talk about problems with retention bonuses and overtime—as if finding qualified workers wasn’t tough enough. According to the most recent report from the Bureau of Labor Statistics, nonfarm employment rose by 428,000 in April 2022. However, some sectors are still struggling and “now hiring” or “help wanted” signs are everywhere. As a result, many employers have resorted to offering financial incentives, including “sign-on” or “retention” bonuses to encourage people to sign up and to stick around.” Full Article – Ice Miller LLP
Court Allows Leeway to Employers Under Fair Credit Reporting Act “A recent decision from the 8th Circuit U.S. Court of Appeals granted employers some modest flexibility in conducting and relying on background checks for potential new hires covered by the Fair Credit Reporting Act (“FCRA”). The court made two key rulings: Employers have no obligation under the FCRA to provide job applicants with the opportunity to explain negative but accurate background check results. A job applicant cannot bring legal action against the employer based on a “technical” violation under the FCRA that does not result in concrete harm to the applicant.” Full Article – Hall Render PC
The NLRB is Actively Using the Strongest Weapon in its Arsenal – Quick Injunctions “General Counsel Jennifer Abruzzo of the National Labor Relations Board (NLRB) has continued to forcibly push the pro-union agenda by revealing the NLRB’s intent to explore doctrinal shifts in numerous key areas of labor law and opining on numerous issues ranging from her belief that some student-athletes at the collegiate level are “employees,” to urging regional staff to aggressively seek injunctions under Section 10(j) of the National Labor Relations Act. The bottom line is that defending against a 10(j) petition is a costly undertaking for employers, and therefore, employers need to be aware of the consequences of taking actions that could invite a 10(j) petition.” Full Article – Akerman LLP
Adjusting Business Policies to COVID 19 Conditions for the Future “Over the past several months as the rates of new COVID 19 cases dropped, there has been a collective celebration and a return to some sense of normal. Hopefully, we will stay there. Everyone is, frankly, tired of the Pandemic and wants tov stop talking about it. This raises the questions we have been asked frequently over the past several weeks. Can I get rid of my mask requirement? What should my policy say now? Can I just get rid of my COVID 19 policy? Most employers have lifted their mask mandate and understand that it is ok to do so, as long as the rate of new cases is low. But what exactly should the policy be going forward?” Full Article – Michael , Best and Friedrich LLP
STATE & INTERNATIONAL COMPLIANCE
In addition to the RISQ Review, RISQ Consulting also provides a resource that features changes and updates to State and International Compliance measures. We’ve included brief summaries of each item below, and also provided links to the original articles if you’d like to read further.
California
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
The RISQ RECAP – May 23rd – May 27th, 2022
May 23rd – May 27th, 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
Inflation Drives 33% Surge in Auto Telematics Adoption in Q1 2022: TransUnion
“TransUnion’s latest Personal Lines Insurance Shopping Report found the number of consumers who accepted a telematics offer from their auto insurance provider increased 33% since the end of 2021—a trend driven by consumers hoping to lower their premiums by demonstrating safe driving habits. Telematics programs use connected devices, mobile phones, or auto manufacturer car apps to monitor and report detailed driving behavior. Similarly, in homes, connected devices monitor for warning of fires, water leaks, and other hazard risks.” Full Article
– Insurance Journal
EMPLOYEE BENEFITS, HUMAN RESOURCES, & COMPLIANCE
Employee Benefits Might Still Facilitate Abortions and Reproductive Choice in a Post-Roe v. Wade America “If the Supreme Court ultimately overturns Roe, all employers should review their health plans to see what, if any, impact the applicable state laws will have. Employers will need to consider many factors, including [1] the types of abortion-related benefits to be offered; [2] whether the type of health plan involved (e.g., self-funded or fully-insured) offers any strategic protections; and [3] any federal guidance the DOL and IRS may issue.” Full Article – Michael Best
Plaintiffs’ Bar Shows Renewed Interest in COBRA Notice Litigation “Class action cases filed against high-visibility defendants in Georgia, Michigan, Florida, and elsewhere allege the companies violated federal law when they sent purportedly inaccurate, threatening, or confusing notices of former employees’ rights to elect to continue medical-insurance coverage after their employment ended.” Full Article – Jackson Lewis P.C.
The Impact of Expanding Pre-Deductible Coverage in HSA-Eligible Health Plans on Premiums “The impact on premiums of expanding pre- deductible coverage for 14 services in HSA- eligible health plans is small. Estimated premium increases range from virtually zero to 1.5 percent. EBRI found a 0.9 percent increase in premiums when use of health care services was assumed to increase because of the lower cost sharing and when employers did not impose any cost sharing.” Full Article – Employee Benefit Research Institute [EBRI]
Is the IRS Going to Fix the ‘Family Glitch’? “The IRS issued a proposed rule on April 5, 2022 to close a loophole in the ACA policy affecting subsidies in the ACA marketplace. This proposal could indirectly affect employers as many spouses and dependents may elect to enroll in the ACA marketplace plans instead of the employer plan. This also opens the door for more employers to encourage spouses and dependents off their plans by increasing the cost that they pay to stay on the plan.” Full Article – Conrad Siegel Actuaries
Court Blocks Enforcement of Certain ACA Section 1557 and Title VII Nondiscrimination Rules Against Christian Employers Group n “The court issued a preliminary injunction enjoining HHS from interpreting or enforcing Section 1557 and its regulations against the group’s present or future members in a manner that would [1] require them to provide, offer, perform, facilitate, or refer for gender transition services, or [2] prevent, restrict, or compel the group members’ speech on gender identity issues. Furthermore, the EEOC is enjoined from interpreting or enforcing Title VII against the group, its insurers, or TPAs in a manner that would require the group’s present or future members to provide insurance coverage for gender transition services.” Full Article – Thomson Reuters / EBIA
Third Circuit: ACA Individual Mandate Penalties Are Entitled to Priority Under the Bankruptcy Code “The IRS asserted that the debtors owed more than $900 for failing to maintain health insurance coverage in violation of the ACA’s individual mandate during 2018. The IRS characterized the payment as an excise tax that was entitled to priority under the Bankruptcy Code. The Third Circuit held that the individual mandate payment was a tax on or measured by income for bankruptcy purposes. The court relied primarily on a six-factor test under Third Circuit precedent for determining whether a payment is a tax.” Full Article – Thomson Reuters Practical 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
Cal/OSHA Releases Updated FAQs & Fact Sheets for Third Readoption of ETS
“Cal/OSHA posted an update to the Revisions to the ETS FAQ. This FAQ details the changes in the May 6th version of the ETS and requirements from prior ETS that remain. There is a separate General COVID-19 ETS FAQ that responds more to the application of the ETS and has been updated to conform to the recent changes in the ETS.” Full Article
– Jackson Lewis
Florida
What Does Florida’s ‘Stop WOKE’ Act Mean for Employers
“Florida Governor Ron DeSantis signed the ‘Stop WOKE’ Act into law. The Act’s name is intended as an acronym for ‘Stop the Wrongs to our Kids and Employees,’ but is also obviously meant to be a play on the concept of ‘woke,’ which is defined in Merriam-Webster’s Dictionary as an adjective describing one who is ‘aware of and actively attentive to important facts and issues.” Full Article
– Lus Laboris
New York
New York Enacts Employee Privacy Law
“On May 7, New York’s new employee privacy law became effective and it requires employers to provide written notice to their employees prior to engaging in certain electronic monitoring activities. The state’s attorney general is responsible for enforcing the law (as it does not expressly provide a private right of action), and businesses may face financial penalties for noncompliance.” Full Article
– Thompson Hine
Georgia
New Georgia Employment Laws Change Definition of Employment, Restrict Local Laws Regulating Work Hours
“Governor Brian Kemp has signed into law two measures addressing the employment relationship. The first, Act 809 (H.B. 389), alters the definition of employment for purposes of unemployment benefits. The second, Act 823 (S.B. 331), precludes local governments from regulating the scheduling or work hours of a private business’s employees.” Full Article
– Jackson Lewis
Maryland
Maryland Enacts New Family Leave Law
“Maryland became the latest state to establish paid family and medical leave for employees with the enactment of the Time to Care Act of 2022 (the “Act”). The Act creates a family and medical leave fund (the “Fund”) which provides paid leave benefits to covered employees and participating self-employed individuals. The Fund will be financed by contributions from (i) employees, (ii) employers with 15 or more employees, and (iii) participating self-employed individuals.” Full Article
– DLA Piper
- Published in Blog
The RISQ RECAP – May 16th – May 20th, 2022
May 16th – May 20th, 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
Most Homeowners Underinsured for Trends in Inflation, Building Costs: APCIA
“A new American Property Casualty Insurance Association (APCIA) survey of over 1,000 U.S. homeowners who have a homeowners insurance policy, reveals a majority of insured homeowners have not taken important steps to ensure their insurance coverage is keeping pace with rising inflation and increased building costs, which could leave policyholders underinsured if catastrophe strikes. Only 30% of insured homeowners have purchased more insurance or increased coverage limits to compensate for rising building costs, according to the survey conducted online by The Harris Poll. Additionally, among insured homeowners who completed renovations or remodels during the pandemic, less than half (40%) updated their home insurance to account for those changes.” Full Article
– Insurance Journal
EMPLOYEE BENEFITS, HUMAN RESOURCES, & COMPLIANCE
Summertime Brings Sunny Skies, Warm Weather and Interns “Manufacturers are preparing to welcome interns into their businesses this summer. Internship programs can play a key role in a company’s ability to develop and retain talent, cultivate new ideas and perspectives, and provide valuable mentorship and opportunity to individuals entering the field, resulting in goodwill in the professional community. With the benefits of these programs come legal challenges for employers related to structuring such programs and arrangements.” Full Article – Robinson & Cole
Modernization of Manufacturers: Safety and Cybersecurity Issues “Like many other industries, manufacturing has been hit hard with labor shortages. As of April 2022, U.S. factory activity reportedly is at its slowest pace in more than 18 months. Consequently, many factories seek more agility from artificial intelligence and other automated processes to better manage disruptions and uncertainty. With these modernizations comes the threat of potential safety and health hazards and cyber threats.” Full Article – Jackson Lewis
DHS Has Temporarily Increased Automatic Extensions of Employment Authorization and/or Employment Authorization Documents (EADs) “The U.S. Department of Homeland Security (DHS) regulations provide for an automatic extension period of up to 180 days from the expiration date stated on the Employment Authorization Document (EAD) for applicants within certain employment-eligible categories who have a timely filed and pending request to renew employment authorization and/or EAD. However, due to severe backlogs with adjudication exacerbated by the COVID-19 pandemic, on May 4, 2022, DHS published a rule to temporarily increase the automatic extension period from up to 180 days to up to 540 days.” Full Article – Littler Mendelson
MORE Than Meets the Eye? How Federal Marijuana Legalization Legislation Could Affect Employers “The U.S. House of Representative voted to pass the Marijuana Opportunity Reinvestment and Expungement (MORE) Act, which decriminalizes marijuana under federal law. Most notably, the MORE Act would remove marijuana as a “scheduled” drug under the Controlled Substances Act (CSA). The proposed MORE Act also addresses other marijuana-related topics, such as taxes, denial of federal public benefits due to marijuana use, and protections for cannabis businesses. As explained below, the MORE Act may bring change for employers.” Full Article – Bradley Arant Boult Cummings
Agencies Offer Tools to Help Employers Using AI Avoid Disability Discrimination “The U.S. Equal Employment Opportunity Commission (EEOC) and the U.S. Department of Justice (DOJ) warn employers that the use of AI (artificial intelligence) tools could expose them to liability under the Americans with Disabilities Act (ADA) if the tools screen out qualified individuals with disabilities or the employer does not provide a “reasonable accommodation” that is necessary for a job applicant or employee to be rated fairly and accurately by the algorithm.” Full Article – Phelps Dunbar
Employee Retention Credit for Independent Schools “Under the CARES Act and subsequent COVID-19 legislation, independent schools may be eligible for the Employee Retention Credit (ERC), a refundable payroll tax credit for employers, including independent schools, whose operations were fully or partially suspended because of a COVID-19 related government order, or that had certain revenue losses compared to 2019. Independent schools that have not claimed the ERC but are eligible to do so can file amended payroll tax returns. The deadline to file these returns is April 15, 2024 for the 2020 ERC and April 15, 2025 for the 2021 ERC.” 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
Cal/OSHA Releases Updated FAQs & Fact Sheets for Third Readoption of ETS
“Cal/OSHA posted an update to the Revisions to the ETS FAQ. This FAQ details the changes in the May 6th version of the ETS and requirements from prior ETS that remain. There is a separate General COVID-19 ETS FAQ that responds more to the application of the ETS and has been updated to conform to the recent changes in the ETS.” Full Article
– Jackson Lewis
Florida
What Does Florida’s ‘Stop WOKE’ Act Mean for Employers
“Florida Governor Ron DeSantis signed the ‘Stop WOKE’ Act into law. The Act’s name is intended as an acronym for ‘Stop the Wrongs to our Kids and Employees,’ but is also obviously meant to be a play on the concept of ‘woke,’ which is defined in Merriam-Webster’s Dictionary as an adjective describing one who is ‘aware of and actively attentive to important facts and issues.” Full Article
– Lus Laboris
New York
New York Enacts Employee Privacy Law
“On May 7, New York’s new employee privacy law became effective and it requires employers to provide written notice to their employees prior to engaging in certain electronic monitoring activities. The state’s attorney general is responsible for enforcing the law (as it does not expressly provide a private right of action), and businesses may face financial penalties for noncompliance.” Full Article
– Thompson Hine
Georgia
New Georgia Employment Laws Change Definition of Employment, Restrict Local Laws Regulating Work Hours
“Governor Brian Kemp has signed into law two measures addressing the employment relationship. The first, Act 809 (H.B. 389), alters the definition of employment for purposes of unemployment benefits. The second, Act 823 (S.B. 331), precludes local governments from regulating the scheduling or work hours of a private business’s employees.” Full Article
– Jackson Lewis
Maryland
Maryland Enacts New Family Leave Law
“Maryland became the latest state to establish paid family and medical leave for employees with the enactment of the Time to Care Act of 2022 (the “Act”). The Act creates a family and medical leave fund (the “Fund”) which provides paid leave benefits to covered employees and participating self-employed individuals. The Fund will be financed by contributions from (i) employees, (ii) employers with 15 or more employees, and (iii) participating self-employed individuals.” Full Article
– DLA Piper
- Published in Blog
The RISQ RECAP – May 9th – May 13th, 2022
May 9th – May 13th, 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 with Cannabis Data Chief
“Global cannabis sales for 2022 will reach just over $35 billion, and will almost double that in the next few years – and with newly legal states coming online, continued growth in the big states, more products, and more marketing of those products, it’s not hard to believe. A report from BDSA provides a deep look at where the industry is heading, but there’s a lot more behind the numbers to know for cannabis businesses and firms that serve those businesses. The report outlines key takeaways, market forecasts and consumer insights.” Full Article
– Insurance Journal
EMPLOYEE BENEFITS, HUMAN RESOURCES, & COMPLIANCE
DOL and HHS Meet with Health Insurance and Business Leaders to Discuss Mental Health, Substance Use Disorder Parity “DOL Secretary Marty Walsh and HHS Secretary Xavier Becerra met with industry leaders in a constructive dialogue, with commitments from attendees to continue to engage on these critical issues. They also raised the importance of contraceptive coverage and the need to do more to ensure women and families get this essential care.” Full Article – U.S. Department of Labor
Sixth Circuit: Employers Act as Fiduciaries When Managing Premium Payments for Benefit Plan “This case serves as an important reminder to employers that they may be held liable where their employees experience a loss in coverage under their welfare benefit plans from the mishandling of premium payments.” Full Article – The Wagner Law Group
State Policy Levers to Improve Access to Telebehavioral Health “States are utilizing a variety of policy levers to maintain access to telebehavioral health services. Commonly used levers include: [1] Creating allowances for out-of-state behavioral health providers; [2] Enabling coverage for audio-only telebehavioral health services; [3] Expanding telehealth-eligible provider types to include a broad range of behavioral health providers; and – Manatt, Phelps & Phillips, LLP
[4] Requiring payment parity for telebehavioral health visits.” Full Article
Employers Rush to Bolster Abortion-Travel Aid with Roe in Doubt “If the high court overturns the landmark 1973 decision, large employers that operate self-funded health plans could add provisions for beneficiaries in states that restrict the procedure to travel to other states to get abortion services. Employers that provide travel expenses for abortion could run afoul of state laws. Employers that don’t offer self-funded plans need to be aware of changes in state abortion laws because their health plans are covered by state insurance laws rather than ERISA.” Full Article – Bloomberg Law
Transparency Rules are in Full Force – Be Sure You are Ready! “The transparency rules do set forth protections for insured arrangements when the group health plan requires the insurer to provide such information via a written agreement. If insurer fails to comply, then the insurer violates transparency disclosure requirements, not the group health plan. A self- funded group health plan can enter into a written agreement requiring the TPA to provide the information. However, the plan is still responsible if the TPA fails to comply. Therefore, it is imperative to have an indemnification agreement with the TPA.” Full Article – Fraser Trebilcock
HHS Notice of Benefit and Payment Parameters for 2023 Final Rule: Fact Sheet “Overall, the final rule seeks to strengthen the coverage offered by qualified health plans (QHPs) on the federal Marketplace. These policies will also ensure consumers can more easily find the right form of quality, affordable coverage for their circumstances: [1] Standardized plan options; [2] Network adequacy; [3] Changes to actuarial value (AV) de minimis ranges; [4] Refine essential health benefits (EHB) nondiscrimination policy for health plan designs; [5] Special enrollment period (SEP) verification; [6] FFM and SBM-FP user fees; [7] Risk adjustment; [8] HHS risk adjustment data validation; [9] Advanced payments of the premium tax credit (APTC) proration; and [10] Require the display of explanations for QHP recommendations on web-broker websites.” Full Article – Centers for Medicare & Medicaid Services, U.S. Department of Health and Human Services
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
Judge Rules That Race and LGBT Quotas for Corporate Board Members Violate the California Constitution
“A Los Angeles Superior Court judge recently ruled that a California law (Assembly Bill 979) requiring California corporations to implement race and LGBT quotas for their board of directors is unconstitutional.” Full Article
– Greenberg Traurig
Massachusetts
Massachusetts Paid Family and Medical Leave Updates – What You Need to Know
“The Massachusetts Department of Family and Medical Leave has issued a series of updates concerning Massachusetts Paid Family and Medical Leave (“MAPFML”). These updates reflect the latest changes made to MAPFML since the Department’s last quarterly briefing.” Full Article
– Mintz
New York
New York Employers Must Comply with Electronic Monitoring Notice and Acknowledgment Requirements by May 7, 2022
“The New York Attorney General’s Office will begin enforcing the new law on May 7, 2022. Potential penalties for violations range between
$500 for a first offense and up to $3000 for three or more offenses. Fines are per violation, i.e. per employee, so aggregate penalties under this format for even medium-sized employers may be significant for companies that ignore this obligation.” Full Article
– Nelson Mullins
Maine
Amended Maine Law Will Require Vacation Payout When Employment Ends
“Maine’s governor recently signed H.P. 160 – L.D. 225, amending the state’s final wages statute to require that “[a]ll unused paid vacation accrued pursuant to the employer’s vacation policy on and after January 1, 2023 must be paid to the employee on cessation of employment.” The amendment provides that private employers with 11 or more employees must pay all unused vacation to a separated employee at the cessation of employment.” Full Article
– Littler Mendelson
Mississippi
Mississippi Pay Equity Bill Crosses Finish Line
“Mississippi’s new law prohibits employers from paying “an employee a wage at a rate less than the rate at which an employee of the opposite sex in the same establishment is paid for equal work on a job, the performance of which requires equal skill, education, effort and responsibility, and which is performed under similar working conditions.” Full Article
– Jackson Lewis
- Published in Blog