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
Higher Auto Claims, More Frequent Accidents Continue to Outpace Premium Hikes “As claim severity rises, US personal auto results are on the decline, according to AM Best’s latest Market Segment Report. The 112.2 net combined ratio in 2022 for personal auto was an almost 11-point deterioration from 101.5 in 2021, and about ten points over the ten-year average and median combined ratios for the line.” Full Article – Insurance Journal
Costs of Small Business Cyberattacks Are Down But Frequency Is Up, Says Hiscox “The less-than-encouraging news: Only a third (33%) of US small businesses consider cyber risk high or very high. The somewhat encouraging news: 53% of U.S. small businesses have either a standalone cyber insurance policy or have cyber coverage through another policy. The annual Hiscox Cyber Readiness Report, which gauges businesses’ preparedness to combat cyber incidents and breaches, surveyed over 5,000 cyber security professionals across the globe, including more than 500 small business professionals in the U.S.” Full Article – Insurance Journal
EMPLOYEE BENEFITS, HUMAN RESOURCES, & COMPLIANCE
Can AI Provide the Magic Medicine for Corporate Cutting? “Spotify announced this week, through a very public memo to its employees, its plan to layoff about 17% of its workforce. In so doing, Spotify joins a number of other technology companies that have recently announced restructuring plans on the heels of overly robust pandemic-driven hiring.” Full Article – Mintz Levin Cohn Ferris Glovsky and Popeo PC
How Organizations Can Prepare for the DOL $55K Overtime Rule “The Department of Labor has proposed new rules that, if adopted, would update the regulations to reflect new compensation requirements for employees who are exempt from overtime pay. The proposed rule increases the Fair Labor Standards Act (FLSA)’s regulatory salary threshold for overtime eligibility from about $35,000 to about $55,000.” Full Article – Powers Pyles Sutter & Verville PC
It’s the Holiday Season, and the NLRB is the Union-Friendly Gift That Keeps on Giving “As we reflect on the many decisions that the National Labor Relations Board (NLRB or the Board) has handed down this year (many of which are unfavorable to employers), now is the perfect time to ensure that your organization is up to date on the most impactful cases of the year and the NLRB’s controversial position on certain issues.” Full Article – Baker Hostetler LLP
An Applicant’s Family Medical History? Apparently, That’s the Million Dollar Question! “As most employers (hopefully) know, the Americans with Disabilities Act sets forth strict guidelines for when employers can require employees or applicants to undergo medical examinations or when they can ask questions that might reveal a disability. And the Genetic Information Nondiscrimination Act restricts what employers can ask about the applicant/ employee’s family medical conditions.” Full Article – Shawe Rosenthal LLP
Don’t Be a Grinch About Holiday Celebrations “Deck the halls with boughs of holly….well maybe not at work. While some employers embrace the holiday season, others may choose not to celebrate to avoid legal issues. However, celebrating the holidays can be a great way of fostering a positive culture or sense of community in the workplace. Here are some practical tips on how employers can grow their hearts this holiday season without upsetting all the Whos in WhoVille.” Full Article – Dickinson Mackaman
Employers—Be Careful with Those Mandatory EAP Referrals! “As part of the corrective action process, some employers require employees to go to a company-provided Employee Assistance Program (EAP). Such programs are intended to offer resources and support to employees for their personal issues on a confidential basis, at no cost to the employee. The scope of services is wide, including health, financial and social issues. And to the extent that a mandatory EAP referral is related to an employee’s health, that that can trip up employers, as a recent announcement from the Equal Employment Opportunity Commission highlighted.” 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.
ILLINOIS
Not to be Outdone by the State of Illinois, Chicago Passes A New Paid Leave Ordinance, Which Doubles the Amount of Paid Leave Available to Eligible Employees
“On November 9, 2023, the City of Chicago passed its Chicago Paid Leave and Paid Sick and Safe Leave Ordinance (“Ordinance”), which goes into effect on December 31, 2023, and replaces the City’s current PSL Ordinance.” Full Article
– Michael Best & Friedrich LLP
NEW YORK
New York Governor Hochul Rejects Wholesale Ban on Non-Compete Agreements
“Governor Kathy Hochul answered the long-awaited question of whether New York would join California, North Dakota, Oklahoma and, most recently Minnesota, as a state banning the use of non-compete agreements between employers and employees. While New York legislators passed a bill to do just that in June, yesterday, Governor Hochul announced that she would not be signing it.” Full Article
– Seyfarth Shaw LLP
ALABAMA
New Alabama Law Exempts 2024 Overtime Pay from State Taxation
“Beginning Jan. 1, 2024, hourly paid employees in Alabama will not pay any state income tax on their overtime pay. The new law effectively gives hourly employees a 5% pay raise (the state income tax rate), but it also creates new administrative and reporting requirements for their employers.” Full Article
– Phelps Dunbar LLP
CALIFORNIA
California Employees Entitled to up to 20 Days of Reproductive Loss Leave
“California employers with five or more employees must provide to employees who have worked for at least 30 days before the start of leave up to five days per event for each of the following reproductive loss events: miscarriage; failed adoption; failed surrogacy; stillbirth; and unsuccessful assisted reproduction (artificial insemination including gamete and embryo donation).” Full Article
– Gordon Rees Scully Mansukhani LLP
MASSACHUSETTS
Massachusetts PFML Update: DFML Releases 2024 Poster and Updated Employee Notices
“The 2024 poster and updated template notice forms are now available on the Department of Family and Medical Leave’s (DFML’s) website. The DFML has also updated the PFML notice employers must provide to new employees to address the recent amendments to the PFML Act.” Full Article
– Seyfarth Shaw LLP