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.
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