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
State Farm Will Start Hiking Auto Rates, Allstate CEO Predicts
“Allstate’s chief executive officer said his company will likely continue pushing for auto insurance rate hikes next year, and he expects the carrier’s largest mutual competitor—State Farm—to move in the same direction. Speaking at the Goldman Sachs 2022 U.S. Financial Services Conference on Dec. 6, Thomas Wilson, president and CEO of Allstate, was asked about the competitive dynamics between publicly traded stock companies and mutuals in the auto insurance market—in particular, whether he felt that large mutuals were slower to raise prices in response to rising loss costs and inflationary pressures, giving Allstate a competitive growth advantage in 2023.” Full Article
– Insurance Journal
EMPLOYEE BENEFITS, HUMAN RESOURCES, & COMPLIANCE
The EEOC is Bulldozing Its Way Through the Construction Industry “The U.S. Equal Employment Opportunity Commission (EEOC) has a new target—the construction industry. During a public hearing earlier this year, the EEOC accused the construction industry of perpetuating a culture of racism and sexual harassment.” Full Article – Venable LLP
Employer WARN-ing: Layoffs Could Trigger WARN Notice Requirements This Time Around “Studies show that as many as 98% of CEOs are anticipating a global recession in the next 12-18 months, which means that companies have already started focusing on cutting costs and redistributing resources to best position themselves to survive.” Full Article – Baker McKenzie LLP
Work Beyond Pay Grade Can Be Grounds for Constructive Termination, Court Rules “The federal court for the Northern District of California recently declined to dismiss a former Al Jazeera International employee’s constructive wrongful termination claim against the news outlet, finding that requiring an employee to perform tasks more advanced than their pay level, without promotion, could constitute “intolerable” working conditions.” Full Article – Proskauer Rose LLP
Federal Restrictions on NDAs for #MeToo Claims Expected to Become Law “The “Speak Out Act” (H.R 8827), a #MeToo-inspired bill prohibiting pre-dispute nondisclosure and nondisparagement clauses when sexual harassment or assault is alleged, has cleared Congress. Previously, President Biden issued a statement signaling that he strongly supports the bill and will sign. The bill will become effective upon his signature.” Full Article – Davis Wright Tremaine
Juries are More Likely to Find Retaliation than Discrimination “On October 25, 2022, a federal jury in Houston awarded a woman $365,000,000 in punitive damages and over $1,000,000 in compensatory damages, after finding that her employer had terminated her in retaliation for complaining about race discrimination. While this amount may not stand after appeal, the case and the sums at issue are notable.” Full Article – Vinson & Elkins LLP
Remote Work May Be A Reasonable Accommodation Where the Employee Has Been, Well, Working Remotely “In the context of the COVID-19 pandemic, many employees suddenly began working remotely and as we move into a new normal, many employees would like to continue telecommuting. However, from a legal standpoint, employers need not agree to continued remote work unless it is required as a reasonable accommodation under the American with Disabilities Act or analogous state laws. But when can an employer argue that continued remote work is unreasonable?” 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.
CALIFORNIA
Who is A “Designated Person?” Changes to California’s Medical Leave
“The Expansion of California Family Rights Act, AB 1041, was signed into law by Governor Newsom on September 29, 2022. AB 1041 expands the class of people for whom an employee may take leave to care for under the California Family Rights Act (“CFRA”) to include a “designated person.” Full Article
– Sheppard Mullin LLP
NEW YORK
New York Bars Discipline for Legally Protected Employee Absences
“On November 21, 2022, New York Governor Kathy Hochul signed a law clarifying that it is unlawful for an employer to penalize an employee for any absence protected under federal, state or local law. (S.1958/A.8092). The law goes into effect on February 19, 2023.” Full Article
– Jackson Lewis P.C.
COLORADO
New Guidance on Bonuses and Commissions May Cause Headaches for Employers
“Organizations commonly require employees to be employed on the date a commission or bonus is paid to receive the commission or bonus. The Colorado Department of Labor and Employment (CDLE), which interprets and administers Colorado’s Wage Act, recently indicated that practice is not permissible, which means employers will need to revisit their bonus agreements and commission plans sooner rather than later.” Full Article
– Holland & Hart LLP
ILLINOIS
Illinois Appellate Court Holds Businesses Must Implement Biometric Retention and Destruction Policies Before Collecting Biometric Data
“On November 30, 2022, the Illinois Second District Appellate Court reversed the trial court’s grant of summary judgment in Defendant’s favor in a case entitled Mora v. J&M Plating, Inc.” Full Article
– Seyfarth Shaw LLP
WASHINGTON
Washington State’s Pay Transparency Law Takes Effect January 1, 2023
“SB 5761 amends Washington’s Equal Pay and Opportunity Act (RCW 49.58) to require employers with 15 or more employees to include in each job posting the wage scale or salary range of the job and a general description of all of the benefits offered and to identify other compensation offered.” Full Article
– McDermott Will & Emery LLP
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