Category: Commercial Insurance

EEOC releases new “Know Your Rights” poster; replaces “EEO is the Law” poster

By Anita Byer, Setnor Byer Insurance & Risk

At a glance…

  • The EEOC released a new mandatory workplace poster – Know Your Rights: Workplace Discrimination is Illegal – to replace the previous EEO is the Law poster.
  • The new poster includes various changes, including the addition of a QR code for fast digital access to the EEOC’s file a charge webpage.
  • Most private employers are required to post the new poster in a conspicuous place upon its premises where notices to employees and applicants are customarily maintained.
  • Download Know Your Rights: Workplace Discrimination is Illegal and post it now.

The Equal Employment Opportunity Commission released a new mandatory workplace poster entitled Know Your Rights: Workplace Discrimination is Illegal. This new poster was created to update and replace the ubiquitous EEO is the Law poster. Not familiar with this poster? Check the bulletin board in your employee break room and look behind the ancient flyers for garage sales and guitar lessons. Once you find it, take it down and replace it with the new poster. Because the Know Your Rights poster, like its predecessor, must be prominently displayed in most private workplaces.

Every covered employer is required to conspicuously post the new Know Your Rights poster upon its premises. This includes every employer covered by Title VII of the Civil Rights Act, the Americans with Disabilities Act or the Genetic Information Nondiscrimination Act. The poster summarizes various laws enforced by the EEOC and includes information about discrimination based on:

  • race, color, sex (including pregnancy and related conditions, sexual orientation, gender identity), national origin, religion;
  • age (40 and older);
  • equal pay;
  • disability and genetic information; and
  • retaliation.

The Know Your Rights poster includes a number of changes designed to make it easier for employers to understand their legal responsibilities and for workers to understand their legal rights and how to contact EEOC for assistance. The new poster:

  • uses straightforward language and formatting;
  • notes that harassment is a prohibited form of discrimination;
  • clarifies that sex discrimination includes discrimination based on pregnancy and related conditions, sexual orientation or gender identity;
  • adds a QR code for fast digital access to the how to file a charge webpage; and
  • provides information about equal pay discrimination for federal contractors.

The Know Your Rights poster must be posted in a conspicuous place where notices to applicants and employees are customarily posted. In addition to physically posting, the EEOC encourages covered employers to conspicuously post the notice digitally on their website. In most cases, electronic posting supplements the physical posting requirement. However, for employers without a physical location or employees working remotely, it may be the only posting.

Finally, be sure to use the correct version of the new poster, which you can download here. The following notice was posted on the EEOC’s website. “Employers, please note a new version of the “Know Your Rights: Workplace Discrimination is Illegal” poster has replaced and supersedes a version uploaded on 10/19. Please use the version marked “(Revised 10/20/2022)” going forward. We apologize for any inconvenience.”

Failing to post the Know Your Rights poster as required may result in a fine (adjusted for inflation) that is currently up to $612 per offense. To protect against costly employment-related claims, employers should have a policy prohibiting workplace discrimination and harassment. Managers and employees should be trained to prevent and avoid unlawful behavior. Employment Practices Liability Insurance is also needed to cover the high cost of defending actual and alleged claims of unlawful conduct.

Please contact us to learn more about EPLI coverage.

Are you taking advantage of Cybersecurity Awareness Month?

By Anita Byer, Setnor Byer Insurance & Risk

October is Cybersecurity Awareness Month. This year’s theme, See Yourself in Cyber, is meant to communicate the fact that cybersecurity ultimately depends on people. Although cybersecurity can be an incredibly complex topic, in most cases, your organization’s best defense against a cyber-attack isn’t a firewall or anti-virus software, it’s people. The people within your organization must be committed to protecting your networks, devices and data from unlawful access or criminal use. The people must be committed to maintaining confidentiality, integrity and availability of your business’s information. This can only happen if you create a culture of cybersecurity within your organization.

Employees are commonly targeted during cyberattacks, so it’s crucial to make them part of the solution, so they will not contribute to the problem. This can be done by making employees an integral part of your cybersecurity culture. Fostering a culture of cybersecurity can strengthen protections against organizational cyberthreats. For those concerned about the bottom-line, it can also increase customer trust and loyalty. A true win-win.

Changing the workplace culture isn’t easy, but it’s not impossible. The following tips can help create a culture of cybersecurity within in your workplace.

  • Involve senior leadership. Employees need to see cybersecurity values upheld by management if they’re going to buy into such a culture. Encourage senior executives to lead by example.
  • Inspire ownership of cybersecurity. Clearly communicate what’s at stake to your employees and explain that your organization needs their help to minimize cyberthreats.
  • Create engaging educational initiatives. Consider leveraging discussion forums, online activities, in-person training sessions and mock phishing exams as part of a holistic approach to cybersecurity education.
  • Bring back the basics. When promoting good cyber hygiene, don’t forget basic principles such as strong password policies, multi-factor authentication requirements, network access restrictions and download limitations.
  • Make it easy. Ensure employees know how to report suspicious emails and check the authenticity of work-related communications.
  • Celebrate success. Make cybersecurity part of performance reviews and reward systems.

Implementing, maintaining and updating security policies and procedures is important, but it’s not always enough. Small and medium-sized businesses should have Cyber Perils Insurance Coverage to protect against various cyber threats and liability exposures, including the cost of complying with data breach notice laws. Please contact us if you would like more information about insurance specifically designed to protect against cyber threats and data security breaches.

Catalytic converter thefts soaring nationwide

By Anita Byer, Setnor Byer Insurance & Risk

Thieves in search of precious metals have caused catalytic converter thefts to soar nationwide. The National Insurance Crime Bureau analyzed insurance claims involving catalytic converters and found a dramatic increase in the number of thefts across the United States. According to the NICB, there was a 325 percent increase in thefts from 2019 to 2020. In 2021, catalytic converter theft claims increased 1,215 percent compared to 2019. Here’s what you need to know about the recent surge in catalytic converter thefts.

What is a catalytic converter? A catalytic converter is part of an automobile’s exhaust system. It contains a catalyst designed to convert environmentally harmful exhaust into less harmful gasses. Catalytic converters are located on the underside of a vehicle and look like a large metal box with two pipes coming out of it.

Why do thieves steal catalytic converters? Money. These devices rely on precious metals to convert a car’s exhaust into less harmful gasses. By precious, we mean expensive. Catalytic converters contain platinum ($891 per ounce), palladium ($2,219 per ounce) and rhodium ($14,250 per ounce). It’s easy to understand why catalytic converters are stolen once you know what’s inside.

Which vehicles are thieves targeting? According to Carfax, thefts are not limited to certain types of vehicles or manufacturers. Although multiple vehicles are being targeted, some patterns have emerged. According to Kelley Blue Book, hybrid cars seem to be at greater risk because the precious metals inside the catalytic converter last longer than they do in gas-powered vehicles. Newer cars are more likely to be targeted than older ones for the same reason. Personal and commercial trucks and SUVs seem to be targeted more frequently, not necessarily because they are more valuable, but because they are higher off the ground, which makes then easier to steal. Unfortunately, no car is safe.

What can you do to protect your catalytic converter from being stolen? The NICB recommends installing a catalytic converter anti-theft device, which are readily available from various manufacturers. Kelley Blue Book offers the following tips to reduce the likelihood of theft.

  • Get your catalytic converter etched. Identifying numbers make it easier to determine a converter’s rightful owner. It also makes it much harder for the converter’s wrongful owner to sell it for quick cash.
  • Whenever possible, park your car indoors, in a well-lighted area or in an area covered by surveillance cameras.
  • Install a dashboard camera or anti-theft device. Though nothing is foolproof, thieves are less likely to target vehicles with obvious security measures.

What’s being done to address the problem? A number of states have proposed legislation to help reduce the number of catalytic converter thefts. According to the NICB, in 2021, twenty-six states proposed bills to address the problem, including ten states that either enacted new legislation or revised existing legislation. Legislation is also being considered at the federal level. In January 2022, the Preventing Auto Recycling Theft Act was introduced in Congress.

Is a stolen catalytic converter covered by insurance? A stolen catalytic converter may be covered under the comprehensive portion of your personal or commercial auto insurance policy. This coverage generally covers damage to a vehicle caused by something other than a collision. Each policy, however, contains various exclusions that may affect coverage.

If you’re not sure whether your current auto insurance policy covers a stolen catalytic converter, please contact us.

Florida employers may be paying less for workers’ compensation in 2023

By Anita Byer, Setnor Byer Insurance & Risk

Florida employers may be paying less for workers’ compensation insurance in 2023. The National Council on Compensation Insurance (NCCI) is recommending an overall average rate level decrease of 8.4 percent for next year. The proposed rate reduction filed with Florida’s Office of Insurance Regulation (OIR) would apply to new and renewal workers’ compensation policies in the voluntary market beginning January 1, 2023. If the OIR approves a rate reduction, it would be the seventh consecutive year workers’ compensation rates have gone down in Florida.

NCCI’s recommended rate reduction is based on claims experience data for the 2019 and 2020 policy years as of year-end 2021. According to NCCI:

  • favorable claims experience has been observed during these time periods;
  • Florida’s frequency of lost-time claims (injured employee receives wage replacement benefits) has generally declined over the most recent eight years; and
  • Florida’s average indemnity cost per case have been relatively consistent over time, while those for medical have been slightly more volatile from year-to-year.

NCCI’s recommendation was not influenced by the pandemic as its analysis did not include COVID-19 claims data. Nevertheless, NCCI’s assessment of possible pandemic-related impacts revealed that:

  • most COVID-19 claims are medical-only or indemnity-only and continue to be small (less than $1,500);
  • large claims (over $100,000) account for fewer than 2% of all COVID-19 claims, but more than 60% of total COVID-19 losses;
  • most claimants were employed in the healthcare industry;
  • the average age of workers with large claims is 55, which is 8-10 years older than that those with non-COVID claims; and
  • COVID-19 claims decreased significantly in 2021.

Despite recommending a rate reduction, NCCI cautions that inflation has the potential to influence the workers’ compensation system nationwide. Wage inflation is a concern as many workers, particularly those in leisure and hospitality, have seen significant pay increases recently. This directly impacts the cost of workers’ compensation insurance because payroll is used as the base to calculate premium. Rising medical claim costs (medical inflation) can also lead to higher premiums.

Remember, NCCI is only recommending an overall average rate level decrease of 8.4 percent in 2023. Florida’s Office of Insurance Regulation will analyze NCCI’s data and may request an adjustment to the current recommendation before holding a public hearing. Although optimism surrounds NCCI’s recommendation, next year’s workers’ compensation premium rates will not be known until Florida’s Office of Insurance Regulation issues a final order.

Please contact us about paying less for workers’ compensation insurance in 2023.

Florida condominiums preparing for initial structural integrity reserve study

By Anita Byer, Setnor Byer Insurance & Risk

Florida condominium associations are now required to complete a structural integrity reserve study for buildings that are three or more stories high. This new requirement was enacted during a special legislative session in response to last year’s Champlain Towers collapse in Surfside, Florida. The hope is that structural integrity reserve studies, coupled with Florida’s new milestone inspection requirement, will ensure aging buildings remain safe for continued use.

Structural integrity reserve studies must be completed at least every 10 years for each building on the condominium property that is three or more stories high. The deadline for existing associations to complete their initial structural integrity reserve study is December 31, 2024. The failure to complete the study as required by law is considered a breach of the board’s fiduciary duty.

So, what exactly is a structural integrity reserve study? It’s a study of the reserve funds that will be needed for future major repairs and replacement of the common areas based on a visual inspection. The visual inspection portion of the study must be performed by a Florida-licensed engineer or architect and must:

  • identify the common areas being visually inspected;
  • state the estimated remaining useful life and the estimated replacement cost or deferred maintenance expense of the common areas being visually inspected; and
  • provide a recommended annual reserve amount that achieves the estimated replacement cost or deferred maintenance expense of each common area being visually inspected by the end of the estimated remaining useful life of each common area.

The study must include the following items as they relate to the structural integrity and safety of the building.

  • Roof, floor, windows and foundation
  • Load-bearing walls or other primary structural members
  • Fireproofing and fire protection systems
  • Plumbing and electrical systems
  • Waterproofing and exterior painting
  • Any other item that has a deferred maintenance expense or replacement cost that exceeds $10,000 and the failure to replace or maintain such item negatively affects any of the foregoing items, as determined by the licensed engineer or architect performing the visual inspection portion of the study.

The new law makes it difficult for associations to avoid their obligation to maintain the structural integrity of buildings that are three or more stories high. For example, developers must complete a study before control of the association can be turned over to unit owners. And, beginning December 31, 2024, unit-owner controlled associations will not be able to vote to use reserve funds that are allocated to structural integrity for any other purpose.

Since this is a new requirement, condominium associations are strongly encouraged to consult with licensed professionals to avoid unintentional violations. Board members should also review their association’s Directors and Officers (D&O) insurance policy to confirm sufficient coverage. Setnor Byer Insurance & Risk can help condominium associations and board members identify, manage and insure their unique risks. Please contact our team to discuss the various risk management services we provide our condominium association clients, including our Division-Approved New Board Member Education.

Risk of workplace injuries higher among first-year employees

By Anita Byer, Setnor Byer Insurance & Risk

Did you know that the risk of workplace injuries is higher among first-year employees? A recent analysis of workers’ compensation claims by Travelers revealed that an employee’s first year on the job is often the most dangerous. Thirty-five percent of workplace injuries occurred during an employee’s first year. Thirty-seven percent of all workdays missed due to injury were taken by first-year employees. This obviously isn’t welcome news, but the resulting awareness is crucial to reversing this disturbing trend. Now, employers know to implement additional safety policies and procedures designed to reduce the risk of injury among first-year employees.

The first step to developing an effective safety program is to identify the most common causes of workplace injuries. According to Travelers’ analysis of more than 1.5 million workers’ compensation claims, the most common causes of first-year injuries were:

  • Overexertion (27%)
  • Slips, trips and falls (22%)
  • Struck by an object (14%)
  • Cuts and punctures (6%)
  • Caught-in or -between hazards (6%)
  • Motor vehicle accidents (6%)

The most common injuries suffered by first-year employees were:

  • Strains and sprains (38%)
  • Fractures (13%)
  • Contusions (95)
  • Cuts and puncture wounds (6%)
  • Inflammation (6%)
  • Dislocations (6%)

Though workplace injuries can and do happen anywhere and everywhere, the heightened risk of injury to first-year employees is more pronounced in specific industries. According to Travelers, the industries most affected by first-year injuries were:

  • Restaurants (53% of claims and 47% of claim costs)
  • Construction (48% of claims and 52% of claim costs)
  • Services (43% of claims and 38% of claim costs)
  • Transportation (39% of claims and 41% of claim costs)

Employers can do a number of things to reduce the risk of injury among first-year employees. Integrating safety into the hiring process, for example, makes employees aware of the risks and the organization’s emphasis on workplace safety. Employers can also perform a job-safety analysis or implement an accident analysis program to better understand the risks associated with specific jobs and tasks. The kinds of preventative measures may vary depending on the circumstances, but every workplace safety program must include regular safety training for all employees, beginning day one.

Workplace safety, for better or worse, begins at the top. Knowing how and why workplace injuries occur puts employers in a better position to prevent them. With an effective workplace safety program, employers can reduce the risk of workplace injuries and may even end up paying less for workers’ compensation insurance.

Please contact us to find out how an effective workplace safety program can reduce the cost of workers’ compensation insurance.

New law ends forced arbitration of sexual harassment claims

By Anita Byer, Setnor Byer Insurance & Risk

A new federal law prohibits employers from forcing employees to arbitrate sexual harassment claims. The Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act invalidates pre-dispute agreements that force employees to resolve claims of sexual harassment through arbitration instead of litigation. Approximately 60 million American workers are bound by forced arbitration clauses in their employment agreements. However, as of March 3, 2022, those with claims of sexual harassment can have their day in court.

The Act, which passed with broad bipartisan support, amends the Federal Arbitration Act to make pre-dispute arbitration agreements for sexual harassment disputes invalid and unenforceable. A pre-dispute arbitration agreement is any agreement to arbitrate a dispute that had not yet arisen at the time the agreement was made. This definition is broad enough to include most employment agreements that require arbitration. A sexual harassment dispute is a dispute relating to conduct that is alleged to constitute sexual harassment under applicable federal, tribal or state law.

The Act also invalidates pre-dispute joint-action waivers. These are agreements that prohibit one party (the employee) from participating in a joint, class or collective action involving a dispute that has not yet arisen at the time the agreement is made. Employees are no longer bound by these pre-dispute joint-action waivers, regardless of whether the waiver is part of the pre-dispute arbitration agreement.

Disagreements regarding the Act’s applicability to a specific claim are resolved by a court, not an arbitrator. As a result, many employers will ultimately end up where they least wanted to be. However, it’s important to note that the Act applies to pre-dispute arbitration agreements. It does not prohibit the parties from mutually agreeing to arbitration after a claim has arisen. The Act also applies at the election of the person making the claim, so employees are free to proceed pursuant to their employer’s pre-dispute arbitration agreement if they wish.

Employers must understand that the Act applies to disputes or claims that arise or accrue on or after March 3, 2022. It applies to all pre-dispute arbitration agreements, even those that predate the new law. Given the popularity of pre-dispute arbitration agreements, many employers will need to review their employment contracts and consult with counsel to determine how the new law will affect them going forward. Employers also need employment practices liability insurance (EPLI) to protect against the uncertainty that accompanies the enactment of any new law.

Please contact us to learn more about protecting your business with Employment Practices Liability Insurance.

Florida Issues Updated COVID-19 Guidance for Child Care Facilities

By Anita Byer, Setnor Byer Insurance & Risk

The Florida Department of Health made significant changes to its COVID-19 guidance for child care facilities. On February 24, 2022, Florida’s Governor and State Surgeon General jointly announced the new guidance as part of their “Buck the CDC” initiative. Perhaps the most notable change to Florida’s COVID-19 guidance involves the wearing of face masks.

Unlike guidance issued by the Centers for Disease Control and Prevention, Florida is no longer relying on the wearing of facial coverings in community settings, including child care facilities. According to Florida’s Department of Health, “there is not strong evidence that facial coverings reduce the transmission of respiratory viruses.” As a result, the new guidance states that the decision to wear masks inside a child care facility should be left to each child’s parent or legal guardian.

The updated guidance also includes the following COVID-19 isolation recommendations.

1) If a staff member or a child at your child care facility tests positive for COVID-19 and is symptomatic:

  • The staff member or child should stay at home and away from others for five days from the date the symptoms began (if the staff member or child is experiencing symptoms).
  • The staff member or child can return to the child care facility on day six if they have been fever-free for 24 hours and symptoms, if any, are improving.

2) If a staff member or a child at your child care facility tests positive for COVID-19 and is asymptomatic:

  • The staff member or child should stay at home and away from others for five days from the date of the COVID-19 positive test.
  • The asymptomatic staff member or child can return to the child care facility on day six.

3) If a staff member or a child at your child care facility is exposed (within 6 feet for more than 15 minutes within 24 hours) to someone with COVID-19:

  • If symptoms of COVID-19 develop, stay home.
  • If asymptomatic, the staff member or child does not need to quarantine, however, continue to monitor for symptoms for 10 days after exposure.
  • Follow the guidance in section 1 if the staff member or child tests positive for or has symptoms of the virus that causes COVID-19.

Early Learning Centers and other child care facilities should review the updated guidance carefully to determine whether or to what extent Florida’s new guidelines may affect their current COVID-19 safety protocols. Please contact us for additional information about protecting your Early Learning Center during the COVID-19 pandemic.

EEOC Enforcement Activity Increasing, Approaching Pre-Pandemic Levels

By Anita Byer, Setnor Byer Insurance & Risk

The Equal Employment Opportunity Commission’s enforcement capabilities are returning to pre-pandemic levels. Despite COVID-19, the EEOC remains committed to preventing and remedying unlawful employment discrimination and advancing equal opportunities in the workplace. The most recent Agency Financial Report highlights the EEOC’s enforcement accomplishments in 2021 and identifies its strategic enforcement objectives going forward. This crucial information can help employers avoid the EEOC in 2022.

During fiscal year 2021 (October 1st – September 30th), the EEOC handled approximately 383,500 calls and 52,000 emails from the public, which is nearly 40% more than in 2020. The EEOC also:

Secured more than $484 million for victims of discrimination, including:

  • $350.7 million for 11,067 victims of employment discrimination through mediation, conciliation and settlements;
  • $34 million for 1,920 individuals as a direct result of litigation resolutions; and
  • more than $100 million for 2,169 federal employees and applicants.

Filed 116 lawsuits, including:

  • 74 suits on behalf of individuals;
  • 29 non-systemic suits with multiple victims; and
  • 13 systemic suits involving multiple victims or discriminatory policies.

Prioritized its mediation program by conducting:

  • 6,644 successful mediations resulting in $176.6 million in benefits to charging parties; and
  • 639 federal sector mediations resulting in nearly $8.4 million for federal employees and applicants.

The EEOC also resolved 138 lawsuits and achieved favorable results in approximately 96% of all federal district court resolutions. In addition, the EEOC successfully resolved 41.1% of conciliations. A charge with a reasonable cause determination that is resolved by the EEOC through voluntary efforts is considered a successful conciliation.

In 2022, the EEOC will continue its efforts to prevent and remedy employment discrimination by:

  • rebuilding and strengthening its enforcement capacity;
  • addressing systemic discrimination on all bases;
  • advancing racial justice;
  • enforcing pay equity; and
  • addressing the civil rights impact of COVID-19.

Employers can use the EEOC’s Agency Financial Report like a radar detector. It’s much easier to avoid costly violations when you know where the EEOC is directing its attention and how it’s allocating resources. However, given today’s rapidly changing environment, employers also need employment practices liability insurance (EPLI) because it’s impossible to know what tomorrow may bring.

Please contact us to learn more about protecting your business with Employment Practices Liability Insurance.

Florida’s New Reporting Requirement Forces Businesses to Track Payments to Individual Contractors

By Anita Byer, Setnor Byer Insurance & Risk

Did you know that Florida businesses must report individual independent contractors who are paid $600 or more in a calendar year? As of October 1, 2021, these individual contractors must be reported to the Florida Department of Revenue’s State Directory of New Hires. This new statutory reporting requirement was enacted to help Florida’s Child Support Program identify individuals who owe child support and initiate income deduction proceedings when appropriate.

Florida’s new reporting requirement applies to those engaged in a trade or business who pay an individual (who is not an employee) for services rendered in the course of such trade or business. These “service recipients” must report non-employee individuals who are paid $600 or more in a calendar year. Service recipients report these individuals to the State Directory of New Hires the same way employers report newly hired employees.

Service recipients have 20 days to report individual contractors. The 20-day period begins on the date of the payment that triggers the reporting requirement or the date on which a contract providing for such payments is entered into, whichever is earlier. In the absence of a contract, the trigger date is the date on which the total payments to an individual independent contractor equal or exceed $600 during the calendar year. This can be the date of the first payment if the amount is $600 or more. But, if your business pays an individual $100 on the first of each month, then the trigger date would be June 1st.

When reporting individual independent contractors pursuant to the new law, businesses must provide:

  • the individual’s name, address and social security number (or other identifying number assigned by the IRS);
  • the date services for payment were first rendered by the individual; and
  • the business’s (service recipient’s) name, address, and employer identification number.

This information is submitted online via Florida’s New Hire Reporting Center. Fortunately, the process for reporting individual contractors is no different than the process for reporting newly hired employees. Businesses with employees should already have an online account. Those that don’t will need to register for a new account.

While Florida’s new reporting requirement may make it easier to pursue those with past due child support, it’s still a new requirement. Unfortunately, novelty and uncertainty always increase the likelihood of mistakes. In addition to proceeding cautiously, businesses need adequate insurance to protect against potentially costly errors, including Employment Practices Liability Insurance. If you have questions about protecting your business in this rapidly changing environment, our team has the answers.