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
Young Plaintiffs’ Attorney Closes Montana Climate Change Trial with Call for Action “An attorney for 16 young plaintiffs urged a judge Tuesday to strike down as unconstitutional a Montana law that prohibits state agencies from considering the environmental effects when it weighs permits allowing the release of greenhouse gases. Attorney Nate Bellinger made the plea in his closing argument at the end of a seven-day trial. Plaintiffs say state officials violated their right to a clean and healthful environment, part of the Montana Constitution, by allowing companies to build power plants and expand coal mines, among other things.” Full Article – Insurance Journal
McKinsey Creates New Ethics Role After $641 Million Opioid Fallout “McKinsey & Co. is beefing up its ethics department after a series of high-profile controversies, including helping Purdue Pharma LP “turbocharge” opioid sales. The management consulting giant is hiring for a newly created position with its global “ethics allegations management team.” The “specialist” will be responsible for “intake and triage of matters” that could present a risk to the firm. McKinsey is also looking to replace its ethics director, a position that helps “ensure we uphold a distinctive culture of integrity and ethical behavior across our firm,” according to the job description, with a salary that ranges from $235,000 to $314,000.” Full Article – Insurance Journal
EMPLOYEE BENEFITS, HUMAN RESOURCES, & COMPLIANCE
The Undiscovered Country, Sort Of: Washington Employers Must Begin Collecting CARES Employee Premiums Starting July 1 “The new statute establishes a mandatory state-run insurance fund to help Washington residents pay for certain long-term care services, such as assisted living facilities, after retirement.” Full Article – Fisher & Phillips LLP
North Carolina Court Certifies Nationwide Class in Healthcare Fee Challenge “With the increased scrutiny on healthcare plan practices and the uptick in ERISA healthcare litigation in recent years, plan participants and fiduciaries are increasingly challenging fees and costs associated with their healthcare plans. [This] decision is a good example of this trend.” Full Article – Kantor & Kantor LLP
Circuit Considers Whether ERISA Preempts State PBM Regulation “The 10th Circuit’s coming decision in Mulready could signal whether federal courts will continue to rethink the boundaries of ERISA preemption. At oral arguments held on May 16, 2023, the 10th Circuit panel appeared skeptical of Oklahoma’s comparison of this case to Rutledge, given the significantly farther reach of the Oklahoma law into plan design and administration.” Full Article – Slevin & Hart, P.C.
Schlichter Exclusive: Does a New Wave of Fiduciary Litigation Loom? “ERISA litigation lawyer Jerry Schlichter has taken to social media to hunt for potential employee plaintiffs for a new brand of fiduciary litigation…. Failing to comply with the requirements of the CAA leaves employers at risk of fines and class-action lawsuits. But most employers are still in the dark, believing their broker or TPA will handle compliance on their behalf or that it’s simply ‘no big deal.” Full Article – American Retirement Association
Proposed Legislation Offers Guidance on Filing Requirements Under Affordable Care Act “The Employer Reporting Improvement Act (HR 3801) would change tax identification number (TIN) requirements, as well as set definite response times and limitations periods for IRS enforcement of ACA filing requirements. The Paperwork Burden Reduction Act (HR 3797) would extend the use of the alternative furnishing method to all Forms 1095-C instead of just those that report only enrollment in Part III of the Form 1095-C or Forms 1095-B.” Full Article – Ernst & Young LLP
The ERISA Edit: ACA Preventive Services Mandate Remains in Effect Through Appeal “The government stipulated that it would not seek penalties or take enforcement action against Braidwood for its refusal to cover the PSTF- recommended preventive care at issue (HIV- related preexposure prophylaxis (PrEP) drugs) through the time the Fifth Circuit issues a decision on the merits. The government also agreed that, until the Fifth Circuit issues its decision, it would not take any enforcement action against any Texas-based insurance issuer for offering to the individual plaintiffs a plan that excludes PrEP drugs or against the individual plaintiffs themselves for purchasing such a plan.” Full Article – Miller & Chevalier Chartered
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
Subscribe to the RISQ Recap, a weekly post to help you stay up to date on news articles and resources for your organization’s compliance needs.