The RISQ RECAP:

July 10th – July 14th, 2023

Report: Top Emerging Liability Trends in the Professional Services Sector

“Inflation, new technology, evolving legislation and hackers for hire are just a few of the exposures facing professional services firms including management consultants, auditors, accountants, architects, engineers, solicitors and lawyers and media executives. A new report by Allianz Global Corporate & Specialty (AGCS) highlights several emerging liability trends for companies, ranking them by level of anticipated impact, potential drivers of loss activity and the likely ease with which these risks may be mitigated. “Although exposures vary, all these professions face a wide range of civil liability exposures which need to be adequately addressed and mitigated. These could range from accusations of negligence or omissions resulting in harm or damage to the client, to misrepresentation, to failure to identify fraudulent activity, to the unintentional breach of contract, intellectual property rights or confidentiality, and regulatory investigations and actions,” says Diego Assef, head of the Global Practice Group, professional indemnity claims at AGCS. The legal and construction sectors are the industries most impacted by large professional indemnity claims, according to the report.”  Full Article

– Insurance Journal

Top Global Business Risks and Their Effects on the Insurance Industry

“Earlier this year, international corporate insurance carrier Allianz Global Corporate & Specialty (AGCS) released their 12th annual Allianz Risk Barometer. The survey takes a look at the top global business risks according to data from over 2700 respondents spanning 94 different countries and territories. Respondents include Allianz customers, brokers and industry trade organizations, risk consultants, underwriters, senior managers, and claims experts, among other risk management professionals. So what are today’s business leaders most concerned about? Unsurprisingly, the pandemic and resulting supply chain shortages, delays, and high inflation had a big influence on current risk outlook. Macroeconomic developments ranked third for top business risks for 2023, pushing climate change and natural disasters further down the list. And for the second year in a row, cyber incidents and business interruptions took first and second. Both the energy crisis and political risks and violence were new to the list this year, coming in at No. 3 and No. 10, respectively.”  Full Article

– Insurance Journal

2022 EEO-1 Reporting Again Delayed

“Last week the Equal Employment Opportunity Commission revealed that the 2022 EEO-1 reporting deadline is again being postponed. Reporting, which was expected to begin in July, is now ‘tentatively’ scheduled to open in the fall of 2023.”  Full Article

– Littler Mendelson P.C.

Four Things You May Not Know About … the Family and Medical Leave Act

“Welcome to the first in a series of blogs examining often overlooked or misunderstood provisions of common employment law topics. Today we will be covering four pitfalls that employers may inadvertently encounter when navigating the federal Family & Medical Leave Act (‘FMLA’).”  Full Article

– Proskauer Rose LLP

Rap Music Can Create a Sexually Hostile Work Environment — for Both Women and Men

“Even though both men and women were exposed to – and offended by – ‘sexually graphic, violently misogynistic’ rap music, the U.S. Court of Appeals for the Ninth Circuit held that such music, played constantly and publicly throughout the warehouse, could constitute harassment based on sex.”  Full Article

– Shawe Rosenthal LLP

EEOC Releases New AI Guidance for Employers

“On May 18, 2023, the U.S. Equal Employment Opportunity Commission (EEOC) issued new technical guidance on how to measure adverse impact when employment selection tools use artificial intelligence (AI), titled ‘Assessing Adverse Impact in Software, Algorithms, and Artificial Intelligence Used in Employment Selection Procedures Under Title VII of the Civil Rights Act of 1964.”  Full Article

– Akin Gump Strauss Hauer & Feld LLP

Supreme Court Clarifies “Undue Hardship” in Religious Accommodation

“On June 29, 2023, the Supreme Court decided Groff v. DeJoy in a unanimous ruling that clarifies the ‘undue hardship’ standard under which an employer can deny a requested religious accommodation under Title VII of the Civil Rights Act of 1964. The Court rejected a ‘de minimis cost’ test. To avoid liability, the Court explained, an employer must show that granting the accommodation ‘would result in substantial increased costs in relation to the conduct of its particular business.’”  Full Article

– Paul Hastings, LLP

New Federal Law Expands Protections for Pregnant Applicants and Employees

“Beginning June 27, 2023, a new federal law—the Pregnant Workers Fairness Act (the ‘PWFA’)—expands protections for pregnant job applicants and employees. In particular, the PWFA requires, among other things, that covered employers provide a reasonable accommodation for known limitations related to pregnancy, childbirth, and associated medical conditions of qualified employees and job applicants unless the accommodation would cause an undue hardship.”  Full Article

– Mayer Brown LLP