Every year comes with new laws and regulations that affect employers. It pays to stay on top of all the new requirements, so we are here to help you understand those that are most likely to affect your business. The following are the top 10 laws, regulations and trends that you need to know about going into 2019.

1. Sexual Harassment Prevention Training
Since 2005, California law has required employers having 50 or more employees to provide at least two hours of sexual harassment training to supervisors every two years. SB 1343 changes this by requiring employers with five or more employees to provide non-supervisory employees with at least one hour by Jan. 1, 2020.

In addition, this training must be held every two years. Employers with five or more workers must provide (or continue to provide) two hours of the biennial supervisory training, as well.

2. Data Privacy
Companies that collect data on their customers online should start gearing up in 2019 for the Jan. 1, 2020 implementation of the California Consumer Privacy Act of 2018, which is the state’s version of the European Union’s General Data Protection Regulation.

The law gives consumers the following rights in relation to their personal information:

• The right to know, through a general privacy policy and with more specifics available upon request, what personal information a business has collected about them, where it was sourced from, what it is being used for, whether it is being disclosed or sold, and to whom it is being disclosed or sold;
• The right to “opt out” of allowing a business to sell their personal information to third parties;
• The right to have a business delete their personal information; and
• Not be discriminated against by opting out.
  
  The law applies to businesses that: 
• Have annual gross revenues in excess of $25 million,
• Annually buy, receive for their own commercial purposes, or sell or share for commercial purposes, the personal information of 50,000 or more consumers, households or devices, and/or
• Derive 50% or more of their annual revenues from selling consumers’ personal information.
  
  3. Independent Contractors
  While this legal development happened in 2018, now is a good time to go over it. In May, the California Supreme Court handed down a decision that rewrites the state’s independent contractor law.
  
  In its decision in Dynamex Operations West, Inc. vs. Superior Court, the court rejected a test that’s been used for more than a decade in favor of a more rigid three-factor approach, often called the “ABC” test.
  
  Employers now must be able to answer ‘yes’ to all three parts of the ABC test if they want to classify workers as independent contractors:
• The worker is free from the control and direction of the hirer in relation to the performance of the work, both under the contract and in fact;
• The worker performs work that is outside the usual course of the hirer’s business; and
• The worker is customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed for the hirer.
  
  The second prong of the ABC test is the sentence that really changes the game. Now, if you hire a worker to do anything that is central to your business’s offerings, you must classify them as an employee.
  
  4. Electronic submission of Form 300A
  In November 2018, Cal/OSHA issued an emergency regulation that requires California employers with more than 250 workers to submit Form 300A data covering the calendar year 2017 by Dec. 31, 2018. The new regulation was designed to put California’s regulations in line with those of Federal OSHA.
  
  Starting in 2019, affected employers will be required to submit their Form 300A data by March 2. For instance, the 2018 summary would have to be posted before March 2, 2019. The law applies to:
  •    All employers with 250 or more employees, and
  •    Employers with 20 to 249 employees in specified high-risk industries.
  
  5. Harassment Non-Disclosure
  This law, which takes effect Jan. 1, 2019, bars California employers from entering into settlement agreements that prevent the disclosure of information regarding:
• Acts of sexual assault;
• Acts of sexual harassment; 
• Acts of workplace sexual harassment;
• Acts of workplace sex discrimination;
• The failure to prevent acts of workplace sexual harassment or sex discrimination; and
• Retaliation against a person for reporting sexual harassment or sex discrimination.
  
  The big issue employers will need to watch out for, according to experts, is that the new law could actually keep the employer and employee from reaching resolutions for disputes.
  
  6. New Tiered Minimum Wage
  On Jan. 1, 2019, the state minimum wage will increase, depending on employer size, to:
• $11 per hour for employers with 25 or fewer workers.
• $12 an hour for employers with 26 or more workers.
  
  Local municipalities may have their own minimum wage rules, so always check to make sure you don’t live in a city or county that has a higher minimum wage.
  
  7. Accommodating Lactating Mothers
  A new law brings California statute into conformity with federal law that requires employers to provide a location other than a bathroom for a lactating mother to express milk.
  
  8. New Bar for Harassment Liability
  A California Appeals Court ruling in 2018 set a new standard for what constitutes harassment in the workplace in a case that concerned a correctional officer at a prison who was mocked about his speech impediment on numerous occasions by co-workers.
  
  The significance of the case for employers is that even teasing and sporadic verbal harassment can be enough to create a hostile work environment and, hence, liability.
  
  To reduce the chances of liability, employers should have an anti-harassment policy in writing that their staff should know and understand. Include training and make sure there are steps for reporting harassment, a mechanism for investigating it, and that the ramifications for harassers are clear.
  
  9. Overtime Laws
  The U.S. Department of Labor plans to propose new regulations governing overtime exemptions from the Fair Labor Standards Act in March 2019.
  
  The DOL is aiming to update FLSA regulations that set a salary threshold below which employees must be paid overtime. Today, it remains at $23,660, after the Obama administration unsuccessfully attempted to raise it to $47,476. President Trump’s DOL is expected to propose a threshold somewhere between $32,000 and $35,000.
  
  10. Indoor Heat Illness Regulations
  The plan was for proposed indoor heat illness regulations to be issued before Jan. 1, 2019 for implementation before summer, but the Division of Occupational Safety and Health has said it can’t meet that deadline.
  
  Look for proposed regulations in the first quarter with possible implementation by the summer.
  
  So far, here’s what’s in the draft rules:
  The standard would apply to all indoor work areas where the temperature equals or exceeds 82 degrees. Employers that would be subject to all of the standard’s provisions include those who have workplaces where:
• The temperature is at least 92 degrees,
• The heat index is at least 90 degrees,
• Employees wear clothing that restricts heat removal, or
• Employees work in high-radiant-heat work areas.
  
  It would require employers subject to the rules to provide cool-down areas at all times, and they would be required to encourage and allow employees to take preventative cool-down rests when they feel the need to protect themselves from overheating.
  
  They must also implement control measures that could include engineering controls, isolating employees from heat, using air conditioning, cooling fans, cooling-mist fans, and natural ventilation when the outdoor temperature is lower than inside.  

Small and mid-sized businesses are increasingly bearing the burden of cyber threats, as criminals consider them low-hanging fruits that often do not have the resources in place to mount a strong defense. A severe attack on a small company can incapacitate its ability to do business, and the expenses of getting operations back on track ― coupled with loss of goodwill ― can easily force many firms into bankruptcy. That’s why it’s important to not only have safeguards in place to avoid being compromised in the first place, but to also take out the proper insurance.

Unfortunately, with more data breaches hitting the news, one of the main concerns that executives have is if their insurance will cover the costs associated with recovering from an attack. Many business owners and executives worry whether the policies they have in place will be adequate in case they are hit by a breach.

If you are running a small or mid-sized company, do not underestimate the growing threat to your business. According to a survey by online insurance news service Advisen and Nationwide Insurance Co., the types of cyber losses mid-sized business incur are:

• Malicious breaches resulting in data losses, 52%
• Unintentional data disclosure by staff: 16%
• Physical loss or theft of data: 13%
• Network or website disruptions: 5%
• Phishing, spoofing and social engineering: 5%
• Other: 9%

Insurance Concerns

One of the main concerns for executives is any overlap or gaps between their property, liability, crime and cyber policies when it comes to covering the costs of recovering from an attack, according to the report by Advisen and Nationwide. Some companies feel they don’t need cyber coverage because they believe their property and liability policies will cover any related losses.

Here are some of the main findings:

• 95% of respondents named data breach as the number-one risk they expect to be covered by a cyber insurance policy.
• 94.5% said they expected cyber-related business interruption to be covered by a cyber policy.
• 89% said they expect their cyber policy to cover cyber extortion or ransom demands.
• 36% said they have cyber-related property damage/bodily injury coverage under another policy, reflecting the belief that some coverage for cyber-related losses can be found under traditional policies.
• 60% of respondents said they are concerned about perceived gaps and overlaps in their insurance coverage.
• For funds-transfer fraud losses, the majority of respondents believed coverage should be found under the crime policy, but also stated they would like to be able to recover under both crime and cyber policies ― or have separate policies with higher limits.

These findings show that businesses are seeking clearer differentiation between cyber and traditional policies, and an understanding of which events are insured and which are not.

The Takeaway

One thing to be aware of is that since cyber insurance is a new and still evolving product, all policies do not cover the same thing. That’s why it’s important for businesses to weigh their choices carefully with our guidance. While the cyber threat has grown, more insurers have also changed language in their property and liability policies to limit coverage of cyber events.

Typical property insurance policies offered higher limits for business interruption for covered property damage. And because of the high costs associated with a data loss, more executives want to see similar limits for business interruption coverage on their cyber stand-alone policies. This market demand may drive insurers to refine their cyber insurance policies, including increasing cyber-related business interruption limits up to the level of standard property forms, according to the report.

It’s important that when shopping for a cyber policy, you work closely with a professional to find the one that best fits your needs. The team at George Petersen Insurance Agency can help you evaluate your risks and coverages and identify any gaps by looking at your existing policies. Click here to get started today.

The new decade is starting off with a tsunami of new laws and regulations that will affect California businesses. Companies operating in California will have to be prepared for significant changes or open themselves up to potential litigation, fines, and other risks. Here’s what you need to know coming into the new year:

1. AB 5

AB 5 creates a more stringent test for determining who is an independent contractor or employee in California. Known as the “ABC test,” the standard requires companies to prove that people working for them as independent contractors are:

A) Free from the firm’s control when working;
B) Doing work that falls outside the company’s normal business; and
C) Operating an independent business or trade beyond the job for which they were hired.

Legal experts recommend that employers:

• Perform a worker classification audit, and review all contracts with personnel.
• Notify any state agencies about corrections and changes to a worker’s status.
• Discuss with legal counsel whether they should now also include them as employees for payroll taxes, workers’ compensation insurance, federal income tax withholding, and FICA payment and withholding.

2. Wildfire safety regulations

Cal/OSHA issued emergency regulations that require employers of outdoor workers to take protective measures, including providing respiratory equipment, when air quality is significantly affected by wildfires. Under the new regulations, when the Air Quality Index (AQI) for particulate matter 2.5 is more than 150, employers with workers who are outdoors are required to comply with the new rules. These include providing workers with protection like respirators, changing work schedules or moving them to a safe location.

3. Arbitration agreements

Starting Jan. 1, the state will bar almost all employee arbitration agreements. AB 51 bars employers from requiring applicants, employees and independent contractors to sign mandatory arbitration agreements and waive rights to filing lawsuits if they lodge a complaint for discrimination, harassment, wage and hour issues. Business groups sued to overturn the law on the grounds that it is preempted by the Federal Arbitration Act.

4. Overtime rules

New federal overtime regulations are taking effect for non-exempt workers. Under the new rule, employers will be required to pay overtime to certain salaried workers who make less than $684 per week – or $35,568 per year – up from the current threshold of $455, or $23,660 in annual salary.

5. Consumer privacy

Starting Jan. 1, under the California Consumer Protection Act, businesses that keep personal data of residents are required to safeguard that information and inform website users how their personal data may be used. The law applies to firms with $25 million or more in annual revenues or those that regularly sell personal information.

6. Return of the individual mandate

A new law brings back the individual mandate requiring Californians to secure health insurance coverage or face tax penalties. This comes after the penalties for not abiding by the Affordable Care Act’s individual mandate were abolished by Congress in late 2017. This will affect any of your staff who have opted out of your group health plan as it may mean they are going without coverage, unless they have opted to be covered by their spouse’s plan. If you have staff who didn’t enroll in your plan for 2020, they may have to wait until your group’s next open enrollment at the end of the year. That could force them to pay tax penalties.

7. Anti-harassment training deadline extended

In 2018 California passed SB1343, greatly expanding the requirement that employers provide anti-harassment training to employees. An amendment to this law was signed by Governor Newsom in2019 that extends the anti-harassment training deadline from Jan. 1, 2020 to Jan. 1, 2021. To be compliant by then, employers with five or more employees must provide harassment prevention training as follows:

• At least two hours of training to all supervisors, and
• At least one hour of training to all non-supervisory staff.

GEORGE PETERSEN INSURANCE CAN HELP YOU WITH TRAINING

To help you satisfy the anti-harassment training requirements, all George Petersen Insurance clients have free access to anti-harassment training videos in English and Spanish using our GPTrack risk management system. Interested in learning more about GPTrack? Click here to learn more about GPTrack.

8. New audit, X-Mod thresholds

The threshold for physical workers’ compensation audits for California policies incepting on or after Jan. 1 is $10,500 in annual premium, a drop from$13,000. This means that any employer with an annual premium of $10,500 or more will be subject to a physical audit at least once a year. On top of that, the threshold for experience rating (to have an X-Mod) has also fallen – to $9,700 in annual premium as of Jan. 1, from $10,000.

9. Hairstyle discrimination

A new law bans firms from discriminating against employees and job applicants based on their hairstyle if it is part of their racial makeup. The CROWN Act defines race or ethnicity as “inclusive of traits historically associated with race, including, but not limited to hair texture and protective hairstyles like braids, locks, and twists.” This new definition means that natural hair traits fall under the context of racial discrimination in housing, employment, and school matters.

10. Reporting serious injuries

A new law broadens the scope of what will be classified as a serious illness or injury which regulations require employers to report to Cal/OSHA “immediately.” The new rules being implemented by AB 1805 are designed to bring California’s rules more in line with Federal OSHA’s regulations for reporting. It will mean that some injuries that were not reportable before will be, such as:

• Any inpatient hospitalization for treatment of a workplace injury or illness will need to be reported to Cal/OSHA.
• For reporting purposes, an inpatient hospitalization must be required for something “other than medical observation or diagnostic testing.”
• Employers will need to report any “amputation” to Cal/OSHA. This replaces the terminology “loss of member.” Even if the tip of a finger is cut off, it’s considered an amputation.

As of yet, there is no effective date for this new law, as enabling regulations have to be written ― a process that will start in 2020.

Six-time winner

Robb Daer, vice president and partner at George Petersen Insurance Agency, believes the reason his company is one of the best places to work boils down to the issue of trust. Not only do employees earn the trust of their clients, but they also have the trust of management.

“We spend a lot of our lives at work and so obviously we want people to be happy,” Mr. Daer said. “We understand that people have lives outside of work, they have kids and families. At the end of the day, that’s what’s really important. So, if someone needs to go and pick up their kids from school or take care of a sick family member, or whatever it is, that’s fine. We’re lucky to be a large enough operation that if we have a few people missing from the office, someone else will be able to handle it.

“The people who work here are smart and dedicated and they do a great job.  They are experts at what they do and there’s no need to micromanage them and beat them up over things that really just don’t matter.”

Management trust that employees will get the job done even if no one is hovering over them and they also trust their feedback and input.

“If someone comes up to me and says, ‘There’s a better way to do this,’ I’m going to think about what they have to say,” Mr. Daer continued. “After all, if they’re doing a job that I don’t usually do, chances are they’re going to know more about it than I am.”

“Overall, we are easygoing, fun, hard-working and dedicated in our approach. We are customer-focused. We have worked hard to empower our staff and provide a supportive environment as well as effective systems and processes. There is a commitment to educating our staff. Lastly, we believe we have strong trust relationships with our staff and with our customers.”

WHILE EARTHQUAKE safety training should be a part of any California employer’s safety program, it’s important from a workplace safety perspecÆŸ ve to understand how your employees could be injured during a temblor. While ducking and taking cover are good skills for your employees to reduce the likelihood of injury, one oÅŒ en overlooked area is the dangers of the workplace itself to employees during a quake. Most earthquake-related injuries result from collapsing walls, fl ying glass and falling objects as a result of the ground shaking, or people trying to move more than a few feet during the shaking. Much of the damage in earthquakes is predictable and preventable. While Cal/OSHA does not specifi cally have regulaÆŸ ons to account for quake fall dangers, exisÆŸ ng regulaÆŸ ons and the Injury and Illness Preven- ÆŸ on Standard require employers to evaluate and miÆŸ gate hazards. 

With offices located in the heart of the California wine country, George Petersen Insurance Agency has a long tradition of insuring some of the most recognizable and respected wineries and vineyards in the country. Our unique proximity to this industry allows for a perspective that seldom can be matched. Whether addressing the needs of wine contamination and leakage, or pollution and chemical drift exposures, our program creates solutions for your business that are designed to fit every need. 

Visit us for more info

Vineyard managers’ insurance needs are unique to the wine industry. Risk of claims and litigation are varied and extensive. A tight web of coverages is the only way to protect the manager. Our experience in the field and our access to specialized carriers give us a clear advantage for our clients. Let us design the plan to protect your business assets. 

Applicable Coverages & Services

• Custom Farming Liability
• Mobile Ag Equipment Blanket 
• Tellis & Vine Coverage
• Transportation Valuation
• Off-Road Liability
• Care, Custody & Control Endorsment
• Borrowed, Leased & Rented Equipment 
• WIne Maufacturing Liability
• Chemical Application Options
• Erros & Omissions Liability
• MCP Filing
• Pollution Clean-up
• Employer Practices Liability
• Directors & Officers Coverage
• Client Additional Insureds
• In-House Claims Management
• OSHA Compliance Documentation
• Web-Based Risk Management Center & Human Resources Platform
• Coverage Audit & Risk Assessment
• EXCLUSIVE VineComp Workers’ Compensation Program

For more information, please contact:

George Petersen Insurance Agency

1.800.236.9046| info@gpins.com

www.gpins.com

One of the proven ways to reduce the cost of a workers’ comp claim is to get the injured worker back on the job whenever it is safe to do so. Preferably, employers should offer some type of modified work duty if they are still recovering from their injury and if that injury impedes them from performing the work they did before the accident. If you have an RTW program or are considering starting one, here are the top 12 things you should consider, courtesy of the Institute of WorkComp Professionals:

• Understand your state laws about returning an injured worker back to the job and the benefi ts they are entitled to after taking on transitional or light duty.

• Create an RTW program that outlines the steps the company will take to help a worker get back on the job as soon as it’s feasible after a workplace injury. Discuss transitional duty and light duty in the program documents and distribute copies of it to your staff.

• Be creative in identifying temporary alternative jobs. Appoint an employee-management committee to create temporary alternative jobs. Injured employee jobs should be meaningful, not demeaning or demoralizing – and for sure should not be punitive.

• If you have an injured worker, visit various worksites or departments of your company to identify tasks that are similar to the employee’s existing job.

• Provide the treating physician with job descriptions for any temporary transitional duty and the employee’s regular work.

• Obtain medical restrictions from the medical provider and a release so that you can put them in a job that will not strain them or risk reinjuring them. Be proactive and prepared for the release. Don’t wait to have the release in hand before you begin your process – a delay of even a few days costs you money.

Encourage Doctor to Approve Light, Alternative Duty

•Encourage the treating doctor to approve temporary alternative duty for injured employees.

• Communicate regularly (at least once a week) with any injured employees returning to work for a temporary alternative duty position. (At this time, therapy and treatment may still continue.)

• Inform the employee’s supervisors about the injured individual’s physical limitations from the injury and make sure they don’t push them too hard. Follow the restrictions ordered by the doctor, or risk upsetting the worker, or worse, reinjuring them.

• Continue to pay the injured employee at their regular rate of pay. Consider doing so even if the employee is working partial hours. This will help you avoid paying lost wage benefits and, in many states, reduce future seÆ© lements.

• Keep the employee engaged by asking them on a weekly basis about the transitional duty, to identify obstacles or ascertain if they feel they can do more.

• Provide feedback to the physician regarding the progress the injured employee is making at the temporary alternative duty position, to make sure the physician is geÆ«ting both sides of the ‘story.’

While you might expect cracks to the foundation of your building during an earthquake, there is another threat from these events.

Earthquakes can shake a building enough to activate or damage indoor sprinklers, which in turn spray water, wreaking havoc on office fixtures, machinery and inventory. This water sprinkler damage can often far exceed the damage to the structure itself.

Napa quake case study

A number of buildings suffered water damage from broken sprinklers in the Napa earthquake in 2014, according to the Federal Emergency Management Agency.

The systems that were damaged resulted in significant water damage because the quake happened early in the morning in a business district, meaning no employees were on site to shut off water valves.

When an earthquake occurs, the majority of sprinkler system damage is from the building shaking and swaying. This movement can cause a sprinkler system that has not been properly braced to come into contact with other building systems or structural members, damaging the sprinklers and fittings.

This damage can lead to leaking throughout the piping network.

If you have sprinklers, they should comply with the National Fire Protection Association Standard, Section 9.3 of which is designed to limit the impact of this differential movement so that the sprinkler system can function as intended after, and during, the seismic event.

To help maintain alignment of system components and prevent damage, the standard requires sway bracing and restraints for system piping. It is critical to have fire protection systems in place before an earthquake, because:

• Gas pipes can rupture.

• Wires and cables can become exposed, creating an electrical hazard.

• Fuel may spill from ruptured tanks or broken pipes.

Have the right insurance?

If your building is equipped with sprinklers for fire suppression, you may not have coverage if there is damage to your building, fixtures and inventory from water damage caused by earthquake damage to sprinkler pipes.

A commercial property policy will not cover this type of damage.

Earthquake sprinkler leakage (EQSL) or sprinkler leakage coverage can be added to your existing policy by endorsement, usually for an additional premium, depending on the insurance company.

An EQSL or sprinkler leakage endorsement would provide coverage for the building and/or contents inside the building should the sprinkler system leak due to an earthquake or accident. It would also provide coverage should the sprinklers become damaged.

CONTACT US TODAY and find out about your coverage.

The latest trend in workplace safety best practices is tracking “leading indicators” – or events that take the lessons learned from past events – to reduce the chances of future injuries.

Safety professionals are increasingly keeping track of near misses, hours spent on training and facility housekeeping and measuring the impact on the organization’s overall safety record. They are finding that this approach is having a significant impact in preventing injuries.

The trend is a new one. For years, workplace safety managers and industrial safety engineers used lagging indicators to track and manage workplace injuries and illness. They would evaluate:

• Injury rates

• Injury counts

• Days injury-free

In the last few years, safety-minded companies have been shifting their focus to using leading indicators to drive continuous improvement. Lagging indicators measure failure, but leading indicators measure performance.

As you can see, a leading indicator is a measure preceding or indicating a future event that you can use to drive activities or the use of safety devices to prevent and control injuries. Leading indicators are focused on future safety performance and continuous improvement.

These measures are proactive in nature and report what employees are doing on a regular basis to prevent injuries.

Creating a leading indicator plan

To reduce strain injuries, for example, you can start by identifying the factors that lead to these injuries, like pace of work, loads, repetitions and workstation design.

Track the data to see which areas are likely to cause future injuries. Once you do, you have a model for how injuries occur. Then, you can consider what interventions you may want to implement to prevent future strain injuries. 

For more information, click here. 

We've had many articles about workplace safety and that to have a successful workplace safety program you need not only employee buy-in, but also management buy-in. If the management can show its leadership and commitment to promoting and ensuring a safe workplace, getting staff to fall in line is easier. 

Dr. Isabel Perry, CEO of The Safety Doctor, a workplace safety app, recently posted a blog about the 18 examples of management involvement she has observed visiting job sites and conducting workplace safety interviews, benchmarking, safety conferences and more.

These are the specific examples she identified of how a manager can show active safety leadership:

1. Creating a company safety committee.

2. Asking that safety functions, when assigned, report to the committee chair.

3. Having a board of directors’ safety and health committee.

4. Holding a monthly plant-wide safety meeting where management in charge of safety takes questions and addresses safety issues.

5. Having fatality and recordable incidents reported directly to management in charge of safety at the time of occurrence, or in a given time frame.

6. Ensuring that organizational safety expectations are absolutely clear by asking every member of the organization about them.

7. Being present, and supportive, whenever key safety issues are decided. Demonstrate they are as important as key product and quality decisions.

8. Management in charge of safety should spend daily time in the work environment (factory floor, construction site, work areas) asking people about safety and observing and commenting on issues.

9. Starting every meeting with a discussion of safety or a safety tip.

10. Requiring a formal safety and health plan from every manager, and holding them accountable for results.

11. Delivering the safety vision in person to every business/work unit (rather than sending it out in a memo).

12. Demonstrating commitment by picking up dropped items, moving obstructions, helping out with safety every day.

13. Making it clear that employees flouting safety rules is unacceptable and that management will probe each accident to find out what went wrong.

14. Empowering every employee to do what’s right for safety. Support and encourage them when they make a mistake.

15. Trying progressive approaches that fit into the company business strategy and workplace culture.

16. Management should personally attend safety training.

17. Senior leadership should rotate in kicking off safety classes. 

18. Management should be well acquainted with the facility safety rules and never violate any rule for any reason. Challenge and hold people responsible for anyone who does.

(Santa Rosa, CA – January 10, 2018) - Carmi Woods has joined George Petersen Insurance Agency’s Santa Rosa office as an Account Executive in the Employee Benefits Department.  Woods has worked in the insurance industry, focusing in Employee Benefits, for over fifteen years.  She will be working to build close relationships with clients, in order to provide tailored benefits programs to meet each client’s unique needs.  

Prior to joining George Petersen, Woods began her career in insurance at Vantreo Insurance Brokerage, where she worked for ten years, advancing to an Account Executive position.  In 2013 she transitioned to Advanced Benefits Group in Santa Rosa, where she worked as an Account Executive, handling group benefits accounts.  She was responsible for group accounts sizing from two employees up to five hundred employees in the areas of medical, dental, vision, disability, life, EAP and FSA.

Woods is a Santa Rosa native, who attended Ursuline High School, before relocating to Oregon to pursue her Bachelor’s Degree in Psychology with a minor in Business Administration at the University of Oregon.  She later returned to Santa Rosa, where she now resides with her husband and three children.

About George Peterson Insurance Agency

Founded in 1935, George Petersen Insurance Agency specializes in commercial insurance, employee benefits and personal insurance products, with an emphasis on intensive consultation, customized programs and highly personalized service. With its acquisition of NorthWest Insurance Agency last year, the agency has grown to include twelve regional offices, making it one of the largest independently owned agencies in Northern California.

For more information about George Petersen Insurance Agency, please visit www.gpins.com.

One major factor in keeping the costs of a workers’ compensation claim from spiraling out of control is to report the claim promptly. Claims are routinely filed late, either by the injured worker who fails to report it to the employer, or the employer procrastinating and not reporting the claim to its insurer.

Both of those scenarios result in delays in treatment, which can worsen the injury, leading to additional medical care and higher costs. One study found that the average claims for workplace injuries reported four weeks after the incident, resulted in a cost nearly 45% more than claims that were reported in the first week after injury (source: National Council on Compensation Insurance (NCCI))

Waiting to file claims three to four weeks after the injury ended up costing 29% more, according to the NCCI. The message for employers is to require staff to promptly report workplace injuries and for businesses to report injuries to their insurer as soon as possible after they are made aware of them.

Those added claims costs, while originally borne by the insurer, can come back to haunt you in the form of higher premiums during your next policy renewal. The NCCI, which helps set rates in more than 30 states around the country, found in its study that claims that were reported more than two weeks after an incident were characterized by the following:
More attorney involvement, and
More use of lump-sum settlement payments.

“These characteristics suggest that claims with a delay of more than two weeks are more complex to settle, take longer to close, and involve a longer period before the injured worker
can return to work,” the NCCI wrote in its report.

EFFECTS OF DELAYED REPORTING

• Delaying reporting makes an investigator’s job harder. The longer the time between the accident and reporting leaves the potential for inaccuracies, misstatements and even destroyed evidence in cases where the claim is falsified by the worker.
• The chances of litigation increase with delayed reporting. Claims reported on the same day they occur involve an attorney 13% of the time, compared to 32% for claims reported after week four, the NCCI found.
• Any delay in medical treatment, even if it’s just a week or two, could end up making injuries worse, resulting in more treatment and medications. It also is likely to extend the life of the claim as the worker’s injuries may take longer to heal and they could be unable to work.
• Claims that stay open longer have a lower closure rate at 18 months after injury, according to the NCCI.
• By delaying reporting, employers shortchange their workers, which can affect employee morale.

THE TAKEAWAY

When you become aware of a workplace injury, start the reporting process as soon as possible. The longer you wait, the costlier the claim likely will be and the more chance your injured worker will hire an attorney.

Establish a claims reporting protocol for all employees to follow. They should be required to immediately report any work-related injury, no matter how small. That includes first aid claims. Put in place protocols to ensure that any injury report gets to your office’s point person so the next step can be determined.

Let employees know that it’s in their best interest to report any work injuries and that you won’t retaliate for filing a claim. If all employees are responsible for reporting injuries to their supervisor, every supervisor needs to know what their own responsibilities are, as well.

https://gpins.com/workers-compensation-reporting-claims-later-can-push-up-costs-50/

West African organized-crime rings have been targeting U.S. business with “business e-mail compromise” scams that are costing firms millions of dollars every year. Losses to businesses that are targeted by these scams hit an all-time high in the first quarter of 2018, with $685 million in losses reported by 4,081 victims. That’s more than the amount lost for all of 2017 in such scams: $675 million.

The scammers send fake messages to businesses’ finance departments claiming to be a vendor for the company with an invoice requiring payment. These criminals do research before targeting companies, meaning they go to company websites and look for the right people to send e-mails to. They may even pull annual reports and find what companies they do business with, and then spoof those accounts (meaning they impersonate other firms in the e-mails).

Some criminals will fake a CEO’s e-mail account and e-mail that company’s finance office ordering payment to a certain account. In one case cited by Dow Jones Newswires, a real estate attorney received an e-mail from the supposed sellers of local property and asking the lawyer to wire the proceeds of the sale to the criminals’ bank account. The lawyer wired $246,218.83 to the scammers.

The Main Scams

Money request via compromised CEO account

1. A criminal compromises or spoofs the e-mail account of an executive, such as the CEO.

2. The criminal sends a request for a wire transfer from the compromised account to an employee who is responsible for processing these requests and is subordinate to the executive, such as the controller.

3. The controller submits a wire payment request, as per instructions from his or her “boss.”

Invoice from a Supplier Via a Spoofed E-mail Address

A fraudster compromises the e-mail of a business user employed by their target company; for example, someone in accounts payable. This is how it’s done:

1. The criminal monitors e-mail of the business user, looking for vendor invoices.

2. The criminal finds a legitimate invoice and modifies the beneficiary information, such as changing the routing number and account number to which payment is to be sent.

3. The scammer then spoofs the vendor’s e-mail to submit the modified invoice.

4. Accounts payable, recognizing the vendor name and services provided, processes the invoice and submits a wire request for payment. 

How to Avoid Getting Burned 

• Confirm an e-mailed monetary request purportedly from a company executive by creating a new e-mail and entering their known e-mail address; don’t reply to the suspicious e-mail as it will likely go to the criminal. 
• The e-mails typically have a similar tone, urging secrecy and expedience. Set up your e-mail gateway to flag key words such as “payment,” “urgent,” “sensitive” or “secret.”
• Look for odd uses of the English language. Many of the scammers are foreigners abroad. 
• Although the late-stage e-mails used in these scams may not contain malware, malicious code is often used as part of an overall scheme to initially compromise an employee’s e-mail account. So, make sure you have an effective malware detection solution in place.
• Register all domains that are slightly different from the actual company domain. 
• Scrutinize all e-mail requests for transfer of funds to determine if the requests are out of the ordinary. 
• Ask accounts payable staff to get to know the habits of your clients, including the details of, reasons behind, and amount of payments.

The law is effective February 19, 2022 and retroactive to January 1, 2022. While the new legislation is similar to California’s prior bill (SB 95), which expired September 30, 2021, there are some notable differences this time around.

WHICH EMPLOYERS DOES THE NEW LAW APPLY TO?

Like SB 95, the new law applies to employers with “more than 25 employees.” Smaller employers will not be covered but may be covered by local supplemental paid sick leave ordinances.

HOW LONG WILL THE LAW BE IN EFFECT?

SB 114 will be in effect through September 30, 2022.

HOW MUCH LEAVE DOES THE LAW PROVIDE?

Like SB 95, the new law provides up to 80 hours of SPSL for full-time employees. However, SB 114 is different in that it establishes two “buckets” of up to 40 hours of leave for different purposes and with different requirements.

Bucket # 1 – Up to 40 Hours for COVID Qualifying Reasons

The first category of leave provides for up to 40 hours of leave for a number of COVID-19 related reasons. These correspond generally with the qualifying reasons that previously applied under SB 95. Leave must be provided if the employee is unable to work or telework for any of the following reasons:

• The employee is subject to a quarantine or isolation period related to COVID-19 as defined by an order or guidance of the State Department of Public Health, the federal Centers for Disease Control and Prevention, or a local public health officer who has jurisdiction over the workplace.
• The employee has been advised by a healthcare provider to isolate or quarantine due to COVID-19.
• The employee is attending an appointment for themselves or a family member to receive a vaccine or a vaccine booster for protection against COVID-19.
• The employee is experiencing symptoms, or caring for a family member experiencing symptoms, related to a COVID-19 vaccine or vaccine booster that prevent the employee from being able to work or telework.
• The employee is experiencing symptoms of COVID-19 and seeking a medical diagnosis.
• The employee is caring for a family member who is subject to an order or guidance described above or who has been advised to isolate or quarantine, as described above.
• The employee is caring for a child whose school or place of care is closed or otherwise unavailable for reasons related to COVID-19 on the premises.

Bucket # 2 – Up to an Additional 40 Hours for Positive COVID-19 Tests

The second category of leave entitles an employee to the same amount of leave they qualified for under the first category (up to 40 hours) if the employee tests positive for COVID-19, or a family member for whom the employee is providing care tests positive for COVID-19.
Significantly, SB 114 authorizes the employer to require proof of a positive test in such situations.

First, if the employee tested positive, an employer may require the employee to submit to a diagnostic test on or after the fifth day after the initial test was taken and provide documentation of those results. SB 114 specifically states that the employer shall make such a test available at no cost to the employee.

Second, if the employee requests to use additional leave because a family member for whom they are providing care tests positive for COVID-19, the employer may require that the employee provide documentation of that family member’s test results before paying the additional leave.
SB 114 specifically provides that an “employer has no obligation to provide additional COVID-19 supplemental paid sick leave…for an employee who refuses to provide documentation of the results of the test…upon the request of the employer.”

HOW MUCH LEAVE MUST BE PROVIDED TO PART TIME EMPLOYEES OR THOSE WITH VARIABLE SCHEDULES?

SB 114 provides a specific method for calculating the amount of eligible leave for employees who work part time or have variable schedules. This methodology tracks the process that was utilized under the previous SB 95:

• If the employee has a normal weekly schedule, their eligible leave is the total number of hours the employee is normally scheduled to work for the employer over one week.

Employers should note that this methodology determines the amount of leave the employee is entitled to under Bucket # 1. As discussed above, the employee would then also be eligible for the same amount of leave under Bucket # 2.

WHAT ARE THE RETROACTIVE REQUIREMENTS?

SB 114 is retroactive to January 1, 2022. So, if an employee took leave dating back to the first of the year for one of the qualifying reasons that were either unpaid by the employer or not paid at the same level required by SB 114, the employee may make an oral or written request for retroactive payments.

A similar process was included in the prior SB 95, so employers should generally be familiar with this process. Retroactive payments must be paid on or before the payday for the next full pay period after the request is made.

In addition, SB 114 provides that an employer may require an employee to provide documentation of a positive test if the employee requests retroactive leave for a positive test or caring for a family member with a positive test.

HOW DOES SB114 INTERACT WITH CAL/OSHA EXCLUSION PAY?

An unwelcome change under SB 114 involves how leave interacts with “exclusion pay” under Cal/OSHA’s ETS. Employers are no longer allowed to require employees to first use and exhaust their leave during periods the employee is entitled to exclusion pay.

Previously, an employer was allowed to require an employee to use SPSL before being obligated to pay exclusion pay under Cal/OSHA’s ETS. However, SB 114 takes the opposite approach. The legislation states, “An employer shall not require a covered employee to first exhaust their COVID-19 supplemental paid sick leave under this section before satisfying any requirement to provide paid leave for reasons related to COVID-19 under any Cal-OSHA COVID-19 Emergency Temporary Standards.”

With certain exceptions, Cal/OSHA’s ETS requires employers to continue to pay the earnings of employees who are excluded from the workplace as a COVID-19 case or close contact. This means employers may be required to provide significantly more paid time off for employees because employees who are excluded under Cal/OSHA’s ETS will be paid exclusion pay and maintain their full entitlement of SPSL.

IS THERE A NOTICE REQUIREMENT?

Employers are required to post a notice about leave similar to the notice employers post regarding regular paid sick leave under Labor Code Section 247. SB 114 requires the Labor Commissioner to develop a model notice within seven days of the enactment of the new law.

WHAT PAYSTUB REQUIREMENTS APPLY?

Thankfully, SB 114 takes a different paystub approach from the prior version. Rather than list the eligible hours, the legislation requires employers to instead list the amount of leave the employee has used through the applicable pay period. If an employee has not used any leave, the employer shall list zero hours on the paystub. This should reduce the burden on employers from having to make complicated calculations each pay period (as required under the prior law). In addition, SB 114 says leave hours used should be listed separately from regular paid sick days.

ARE TAX CREDITS AVAILABLE TO PAY FOR THIS?

Not directly. While the governor and legislative leaders have talked up tax credits being part of the agreement to bring back leave, the referenced tax credits are not directly tied to it, nor do they provide “dollar for dollar” reimbursement like under the federal FFCRA.

NEXT STEPS

Be prepared to quickly comply with this new requirement. To do so, below are some recommended steps:

• Prepare an updated policy.
• Plan for the paystub requirement.
• Keep an eye out for the notice that will be posted by the Labor Commissioner’s office.
• Have a process in place to handle leave requests (both new and retroactive).
• Evaluate the number of retroactive or true-up payments you may need to make.
• Remember not to request any other medical information or underlying diagnosis when requesting documentation to support the leave request.
• Remember that you cannot use leave before paying exclusion pay.

https://gpins.com/californias-new-covid-19-sick-leave-sb114/

Governor Newsom has signed legislation that creates a new framework for COVID-19-related workers’ compensation claims.

SB 1159, which takes effect immediately, partly replaces an executive order that Newsom made on March 18 and which expired July 5. That order required all employees working outside the home who contracted COVID-19 be eligible for workers’ compensation benefits.

The new law also creates a rebuttable presumption that all cases of COVID-19 among front-line workers be considered work-related for workers’ compensation purposes. Finally, the law creates a rebuttable presumption that a workers’ COVID-19 diagnosis is work-related when there was an outbreak in their workplace during the prior 14 days.

The new law is retroactive to July 6, the day after Newsom’s executive order expired, and is set to expire Jan. 1, 2023.

SB 1159’s presumption that an illness or death resulting from COVID-19 has arisen out of and in the course and scope of employment, can be disputed by the employer if they have:

• Proof of measures they put in place to reduce potential transmission of COVID-19 in the workplace,
• Evidence of the employee’s non-occupational risks of contracting COVID-19,
• Proof of statements made by the employee, or
• Any other evidence normally used to dispute a work-related injury.

Employers with fewer than five employees are exempt under the statute.

The law also requires new reporting provisions to allow workers’ compensation claims adjusters to track cases to know when the presumption applies, and requires a faster review of claims to accept or deny compensability than is typical. 

SB 1159’s Three Parts

•  Codifies Newsom’s prior executive order that provided a rebuttable presumption of work-relatedness to all employees working outside of the home that contracted COVID-19.
• Provides a rebuttable presumption that front-line workers (like firefighters, law enforcement officers, health care workers, home care workers and IHSS workers) who contract COVID-19, contracted it in the workplace.
• Creates a rebuttable presumption that worker’s COVID-19 diagnosis is work-related within 14 days of a company outbreak. Under SB 1159, an outbreak is defined as when four employees test positive at a specific place of employment with 100 or fewer employees and, for larger places of employment, when 4% of the employees test positive.

It is also deemed a workplace outbreak if the employer had to shut down due to a coronavirus outbreak.

Reporting Requirements

Under the new law, when an employer “knows or reasonably should know that an employee has tested positive for COVID-19,” they must report to the insurer within three business days, via e-mail or fax.

The following information should be provided:

• The date the employee tested positive.
• The address or addresses of the employee’s specific place(s) of employment during the 14-day period preceding the date of their positive test.
• The highest number of employees who reported to work at the employee’s specific place of employment in the 45-day period preceding the last day the employee worked at each specific place of employment.

The Rossi Law Group has the following recommendations for employers in California:

• Keep track of all locations each employee works at, the number of employees on each day at each location, as well as a log of those that test positive (including the date the specimen was collected).
• If you are aware of any staff who have tested positive between July 6 and Sept. 17, you have 30 days after Sept. 17 to report the positive test to the administrator and include the same information as in the bullet points above.
• You must also report to the administrator positive COVID-19 results for employees that are not filing claims. In that case, you must omit personal identifying information of the employee.
• Provide any factual information to the administrator that could help rebut any claim of work-relatedness.

The law also has some teeth: Anyone who submits false or misleading information shall be subjected to a civil fine up to $10,000.

New Outbreak Reporting Requirements – AB 685

The governor also signed into law AB 685, which requires employers to report an outbreak to local public health officials. Employers must also report known cases to employees who may have been exposed to COVID-19 within one business day.

Contact George Petersen Insurance Agency

A new year brings new employment laws. Stay compliant and consistent by making it your New Year’s resolution to schedule a handbook review with our Leap Solutions HR Team today!