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
Right Turn on Red? With Pedestrian Deaths Rising, US Cities Are Considering Bans “Sophee Langerman was on her way to a bicycle safety rally in Chicago’s Lakeview neighborhood in June when a car turning right rolled through a red light and slammed into her bike, which she was walking off the curb and into the crosswalk. The car was moving slowly enough that Langerman escaped serious injury, but the bicycle required extensive repairs. To Langerman, it`s another argument for ending a practice that almost all U.S. cities have embraced for decades: the legal prerogative for a driver to turn right after stopping at a red light.” Full Article – Insurance Journal
Three Passengers Sue Alaska Airlines After Off-Duty Pilot Accused of Trying to Cut Engines “Three passengers sued Alaska Airlines, saying they suffered emotional distress from an incident last month in which an off-duty pilot is accused of trying to shut down the engines of a plane while catching a ride in the cockpit from Washington state to San Francisco. In the complaint filed Thursday in King County Superior Court in Washington state, San Francisco residents Matthew Doland and Theresa Stelter and Paul Stephen of Kenmore, Washington, alleged that the pilot should never have been allowed in the cockpit because he was suffering from depression and a lack of sleep.” Full Article – Insurance Journal
EMPLOYEE BENEFITS, HUMAN RESOURCES, & COMPLIANCE
Winston & Strawn LLP: Benefits Bulletin — IRS Increases PCORI Fees Payable in 2024 “The new Patient Centered Outcomes Research Institution (PCORI) fee for policy and plan years that end on or after October 1, 2023 and before October 1, 2024 is $3.22; an increase of $0.22 per covered life as compared to the PCORI fee assessed on or after October 1, 2022 and before October 1, 2023.” Full Article – Winston & Stawn LLP
Self-Funded Plan’s Guide to Gender-Affirming Coverage “Whether or how a group health plan (GHP) should cover gender-affirming care is a complex and evolving legal issue. This is especially true of self-funded GHPs, which are generally not subject to the nondiscrimination provisions of the Affordable Care Act (ACA). Both state and federal law are still unsettled. Self-funded GHP sponsors must carefully consider numerous legal factors.” Full Article – Hall Benefits Law
ACA Reporting Benefits Brief “The reporting requirements under the Affordable Care Act (ACA) have been in effect since 2015. Many employers are already familiar with the rules. However, some employers, particularly those that have grown in size, may lack clarity regarding their reporting obligations under the law. As the deadlines for the 2023 ACA reporting roll near, it is important to review the basics of reporting, including any changes that may be applicable for the 2023 reporting year.” Full Article – Acrisure, LLC
Reminder: Gag Clause Attestations Due by Year-End “[1] Review applicable contracts to ensure that they do not contain prohibited gag clauses. [2] If the group health plan is fully insured, confirm that the insurer will make the Attestation on behalf of the plan. [3] If the group health plan is self-insured, it may be possible to delegate the responsibility for completing the Attestation to the plan’s TPA. [4] Review existing agreements with insurers/ TPAs to ensure that the agreement includes a ‘compliance with applicable law’ provision.” Full Article – Faegre Drinker Biddle & Reath LLP
Agencies Propose Extensive Modifications to Regulations Implementing Surprise Billing IDR “Several provisions of both the interim final and final regulations, as well as related agency guidance, have been vacated in a series of cases brought by an association of health care providers. In response, the agencies recently issued proposed regulations addressing IDR fee issues raised by the litigation and, among other things, partially shut down and reopened the federal IDR portal multiple times. The agencies now propose additional regulations to adjust the IDR process and change the fee structure. Here are highlights.” Full Article – Thomson Reuters / EBIA
Fact Sheet #66e: The Davis-Bacon and Related Acts — Compliance with Fringe Benefit Requirements “The following practices may lead to violations under the DBRA, resulting in failure to pay the applicable prevailing wage rate: [1] Misclassifying laborers and mechanics for the type of work performed; [2] Failing to obtain prior approval from the DOL for unfunded fringe benefit plans; [3] Failing to annualize (or incorrectly annualizing) the hourly equivalent of fringe benefit amounts. [4] Paying hourly rates and/or fringe benefit amounts pursuant to a Collective Bargaining Agreement (CBA), where the CBA specifies rates lower than those required in the applicable wage determination; and [5] Improperly taking credit towards fringe benefit obligations for certain expenses.” Full Article – Wage and Hour Division, U.S. Department of Labor
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
California Passes New Law Mandating Workplace Violence Prevention Plan for Employers
“On September 30, 2023, Governor Gavin Newsom signed SB 553 into law, establishing a new written Workplace Violence Prevention Plan (“WVPP”) requirement for nearly all California employers.” Full Article
– Sheppard Mullin Richter & Hampton LLP
MASSACHUSETTS
Massachusetts Amends Paid Family and Medical Leave Law
“As of November 1, 2023, the Massachusetts Paid Family and Medical Leave (PFML) law will permit employees to supplement their PFML benefits using accrued paid time off (PTO), such as sick or vacation pay. Employers cannot require that employees use their accrued PTO while receiving PFML benefits but must permit employees to do so.” Full Article
– Morgan, Lewis & Bockius LLP
ILLINOIS
New Illinois Law Mandates Certain Employers Offer Pre-Tax Commuter Benefits Starting January 1, 2024
“Open enrollment season is upon us, but employers who employ a substantial number of employees in Illinois may have a surprise in a new benefit that must be offered. Illinois recently adopted the Transportation Benefits Program Act (HB 2068; P.A. 103-291) (the “Act”) which aims to promote the commuter benefits available to employees who use or may use public transportation to commute to and from work.” Full Article
– Michael Best & Friedrich LLP
COLORADO
Legislative Update: Colorado Proposes New Rules for Tipped Workers, and More State and Local Efforts to Eliminate the Tip Credits
“Proposed New Rules Under Colorado’s Overtime & Minimum Pay Standards Order Would Narrow Employers’ Use of the Tip Credit and Tip Pools.” Full Article
– Seyfarth Shaw LLP
NEW YORK
New York Narrows the Scope of Employee “Invention Assignment” Provisions
“On September 15, New York enacted Labor Law Section 203-f, limiting the enforceability of invention assignment provisions in employment agreements. Under the new law, employers do not have rights to any employee inventions created on the employee’s own time and without the use of employer resources or trade secrets.” Full Article
– Troutman Pepper Hamilton Sanders LLP
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