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
Cyber Insurance Premiums Surge by 50% as Ransomware Attacks Increase “US cyber insurance premiums surged 50% in 2022 as increased ransomware attacks and online commerce drove demand for coverage. Premiums collected from policies written by insurers reached $7.2 billion in 2022 and tripled in the past three years, ratings firm AM Best said in a study released this week. “Systematic risk is an ongoing concern,” Fred Eslami, an AM Best associate director, said in a statement. ‘Ultimately, the coverage provided to insureds may be decided by the risk appetite of the insurer, and to a certain extent, the coverage that reinsurers are willing to provide.’” Full Article – Insurance Journal
Nationwide to Take Actions to Limit Risk in Personal, Commercial Portfolios “Add Nationwide to a growing list of insurers making changes to deal with losses in some areas of the country. In a June 12 “business actions update” Nationwide announced moves “to mitigate risk and manage the personal and commercial lines portfolios in the current environment.” “Strong headwinds brought on by the economic environment, catastrophe weather events, and the impact of inflation continue to impact the entire insurance industry,” according to the statement from the insurer, which did not specify lines of business or regions affected by the actions.” Full Article – Insurance Journal
EMPLOYEE BENEFITS, HUMAN RESOURCES, & COMPLIANCE
No Playing Around with Pay Rates to Avoid Overtime Liability! “Employers may explore creative ways to reduce staffing costs; however, changing an employee’s pay rate to avoid overtime liability is not a legal one, as the U.S. Court of Appeals for the Eleventh Circuit recently emphasized.” Full Article – Shawe Rosenthal LLP
The DOL Has A New Website to Provide Workplace Mental Health Resources “In recognition of Mental Health Awareness Month, the U.S. Department of Labor has announced a new website with resources to assist employers in legal compliance and in creating supportive workplaces.” Full Article – Shawe Rosenthal LLP
High Times: Marijuana Positivity in Workplace Drug Tests Reaches 25-Year Record “Impairment and related safety hazards have been disrupting the workplace resulting in lost time, absenteeism, safety hazards, and serious industrial accidents. We track annual positivity test reports from Quest Diagnostics, one of the country’s largest drug testing laboratories.” Full Article – Seyfarth Shaw LLP
The Department of Labor Issues Guidance for Employers Concerning the PUMP Act “On December 29, 2022, the Providing Urgent Maternal Protections for Nursing Mothers Act (“PUMP”) was signed into law. PUMP further amends the federal Fair Labor Standards Act (“FLSA”) by extending protections for employees who need to express breast milk at work.” Full Article – Sheppard, Mullin, Richter & Hampton LLP
No Fun in the Summertime: Employer Obligations for Preventing Employee Heat Stress “As summer approaches, employers with employees potentially exposed to high temperatures should ensure that they have taken the necessary steps to protect their employees from heat-related illnesses. Employees who might be exposed to high temperatures include not only employees working outdoors, but also employees working in indoor environments with high temperatures, such as warehouses without air conditioning.” Full Article – Venable LLP
NLRB Signals Challenge to Noncompete Agreements for Non-Supervisory Workers “On May 30, 2023, the General Counsel (GC) of the National Labor Relations Board (NLRB) took a step toward the federal regulation of employee noncompetition agreements. The GC published a memorandum (the Memo) in which she expressed her opinion that “the proffer, maintenance, and enforcement of such agreements violate Section 8(a)(1)” of the National Labor Relations Act (the Act).” Full Article – Greenberg Traurig 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
Illinois Poised to Become Latest State to Mandate Pay Transparency
“On May 17, 2023, House Bill 3129 passed both houses of the Illinois legislature. The bill is expected to be signed into law by Gov. J.B. Pritzker and go into effect on Jan. 1, 2025. Illinois will then join a growing number of states that have enacted or are currently considering pay transparency laws that are intended to address discrimination and eliminate pay disparity.” Full Article
– Barnes & Thornburg LLP
OREGON
Oregon to Assess Highest-in-Nation OSHA Penalties of up to $250,000 Per Violation
“Effective May 24, 2023, Oregon passed a new law (SB 592A) turning its workplace safety penalties on their head, taking Oregon from the state with some of the lowest OSHA penalties to the highest in the country.” Full Article
– Seyfarth Shaw LLP
WASHINGTON
New Growth of State and Local Paid Leave Developments in the Evergreen State
“Washington Paid Family and Medical Leave Act has been amended to, among other changes, provide employers with access to claim information that may be helpful in administering concurrent leave and supplemental benefit programs.” Full Article
– Littler Mendelson P.C.
MINNESOTA
Minnesota Enacts Omnibus Jobs Bill With Major Changes for Minnesota Employers
“The Bill has significant implications for employers with employees in Minnesota and includes numerous changes to Minnesota state law, including a sweeping ban on non-compete agreements; a ban on mandatory employer
-sponsored meetings; newly mandated statewide paid sick leave; and expanded protections for parental leave and pregnant employees, among others.” Full Article
– Proskauer Rose LLP
NEW YORK
New York City Joins Growing Effort to Ban Body Size Discrimination
“This new law, which goes into effect Nov. 22, adds weight and height as protected classes under the city’s Human Rights Law. This law is part of a growing national movement to curtail body size discrimination at work.” Full Article
– Phelps Dunbar LLP
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