August 15th – August 19th, 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
Cal/OSHA Issues Heat Warning to Protect Outdoor Workers
“Cal/OSHA sent out heat warning for employers this week reminding them they are required to protect outdoor workers from heat illness following excessive heat watches being issued throughout California. The temperature is forecast to exceed 105 degrees in northern and inland parts of the state this week including areas around Sacramento, Fresno and the eastern parts of the Bay Area.” Full Article
– Insurance Journal
EMPLOYEE BENEFITS, HUMAN RESOURCES, & COMPLIANCE
Benefit Plan Deadlines Extended Again for States of Emergency “Absent a further continuation or early termination, the National Emergency will end on February 28 2023. Absent a further extension, the Public Health Emergency will expire in mid-October 2022. When these emergencies do finally end, plan sponsors should be prepared to send communications to participants about the end of the extensions and review their plan documents to account for any changes after the end of the period.” Full Article – Graydon
Transparency Laws and Inflation May Strain Relationship Between Providers and Insurers “Insurers and plan providers may find that the valuable data they have been expecting from hospitals is already obsolete. Inaccurate data may lead to providers being unable to set appropriate reimbursement rates or offer accurate hospital rate information for their members. This phenomenon could lead to a strain on the historically close relationship between hospitals and insurers.” Full Article – Hall Benefits Law
Federal Court Approves BCBSA $2.67 Billion Settlement, Acknowledges Importance of ERISA Fiduciary Duties “Employers who made a claim should be aware that they may have fiduciary duties under ERISA with respect to the use of any proceeds from the settlement fund. In its approval order the court stated that all ERISA fiduciaries must comply with those duties…. [T]he court acknowledged that while the settlement funds are not ‘plan assets’ at the time of their distribution, the [DOL] may take the position that some of those settlement funds are ‘plan assets’ after distribution.” Full Article – Miller Johnson
Navigating Mental Health Parity Requirements for Travel Benefits “Many employers are considering implementing travel reimbursement options to assist employees who wish to seek abortions that might be restricted by the law in their home states. In this post, the authors take a deeper dive into the MHPAEA requirements, its limited exceptions, how employers might be able to comply with those rules when making a travel benefit available, and provide a brief overview of how employers might prepare for an MHPAEA audit.” Full Article – Dickinson Wright
White House Addresses Access to Reproductive Health Care, Including Abortion, in Second Post-Dobbs Executive Order “The White House executive order announces a policy of supporting women’s ability to access reproductive health care by traveling to seek abortion care in states where it is legal.” Full Article – Thomson Reuters Practical Law
Employer Violated Title VII by Revoking Health Coverage for Employee’s Same-Sex Spouse “A dependent audit performed by the plan’s administrator flagged the same sex spouse’s coverage. Consistent with the employer’s religious belief the HR executive informed the employee that the spouse’s coverage would be terminated at the end of the month. The employer argued that it was exempt from Title VII based on its status as a religious organization. Rejecting this interpretation, the district court concluded that religious organizations are not exempt from Title VII’s prohibition against discrimination based on characteristics other than religion.” 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
California Proposition to Raise Minimum Wage Delayed
“California voters almost had the opportunity to vote on an $18 minimum wage in November 2022. The State has a unique administrative process by which California citizens can propose laws and constitutional amendments without the support of the state government.” Full Article
– Jackson Lewis
PENNSYLVANIA
Pennsylvania Amends Overtime Rate Calculations for Salaried, Nonexempt Employees
“Pennsylvania employers with salaried, nonexempt employees working in the commonwealth may need to adjust how they calculate overtime premiums for these employees in light of amendments to the Pennsylvania Minimum Wage Act that will go into effect on August 5. The amendments codify that Pennsylvania employers cannot use the fluctuating workweek method of calculating overtime pay for salaried employees.” Full Article
– Morgan Lewis & Bockius
MASSACHUSETTS
Massachusetts Enacts CROWN Act Banning Discrimination Based on Natural or Protective Hairstyles
“On July 26, 2022, Massachusetts Gov. Charlie Baker signed into law the Creating a Respectful and Open World for Natural Hair Act (CROWN Act), prohibiting discrimination against employees, students and other individuals based on their natural or protective hairstyle. By enacting the CROWN Act, Massachusetts joins 17 other states that have enacted similar protections, and similar legislation is being considered at the federal level as well.” Full Article
– Holland and Knight
MICHIGAN
Michigan Employers May Soon Face Increased Minimum Wage, Expanded Sick Leave Requirements
“A Michigan court recently held that the current versions of the state’s minimum wage and paid sick leave statutes are unconstitutional due to legislative foul play, immediately voiding the existing laws. Mothering Justice v. Nessel, No. 21-000095-MM (July 19, 2022). Now, absent a stay pending appeal or further legislative action, the original form of the laws—which had a far broader scope—will take effect, leaving most employers’ current policies noncompliant.” Full Article
– Benesch Friedlander Coplan & Aronoff LLP
MISSISSIPPI
How Employers Can Keep Up as Mississippi’s Equal Pay Law Takes Effect
“House Bill 770, “Mississippi Equal Pay for Equal Work Act,” recently took effect. That means aggrieved employees can now bring gender-based pay claims in Mississippi state courts that can’t be removed to federal court.” Full Article
– Phelps Dunbar
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