KEEPING OPERATIONS GOING – Tips for Successful Telecommuting – April 2020


WITH THE current isolation orders for most workers in California, many companies have had to scramble to put systems in place to allow their employees to telecommute. Many businesses are not set up for having employees work from home, and they have legitimate concerns about productivity and communications. But there are steps you can take to make sure that you keep your employees engaged and on task.

1. Make sure they have the right technology

If you don’t already have one, you may want to consider setting up a company VPN so your employees can access their work e-mail and databases. You will also need to decide if you are going
to provide them with a company laptop, and you need to make sure that they have an internet connection that is fast enough to handle their workload. Also provide an infrastructure for them to be able to work together on files. If they are not sensitive company documents, they can use Dropbox or Google Documents, which allow sharing between co-workers.

2. Provide clear instructions

It’s important that you provide clear instructions to remote workers. Some people do not perform well without direct oversight and human interaction. Without that factor, you will need to spell out your expectations and the parameters of the projects they are working on in detail. Make it clear that if they are confused or unsure about any part of the work, they should contact a supervisor for clarification. If you can eliminate misunderstandings, then your workers can be more efficient.

3. Schedule regular check-ins

To hold your employees accountable for being on the clock, schedule calls or virtual meetings at regular intervals. Even instant messaging works. During these meetings they can update their
superiors on their work. This also helps with productivity, since there are consequences for failing to meet expectations and coming to the meeting empty-handed. Their supervisors should be working when they are, so they can be in regular communication.

4. Keep employees engaged

One of the hardest parts of working from home is the feelings of isolation and detachment from colleagues. It’s important that you build in interactive time for your workers. One way to do that is by using a chat program like Slack, Hangouts or WhatsApp (which has a group chat function). For remote workers, these programs are a blessing because they make it easy to keep in touch with their colleagues in and out of the office – and they level the playing field, so to speak, by making distance a non-issue.

5. Cyber protection

With employees working from home, you also increase your cyber risk exposure, especially if they are using a company computer that is tapped into your firm’s database or cloud. Teach them cyber security best practices, such as:
• Not clicking on links in e-mails from unknown senders.
• Making sure their systems have the latest security updates.
• Backing up their data daily.
• Training them on how to detect phishing, ransomware
and malware scams, especially new ones that try to take advantage of people’s fears about COVID-19.


Law Requires Paid Sick Leave, FMLA Benefits – April 2020


LEGISLATION SIGNED into law by President Trump extends sick leave benefits for workers who are stricken by the coronavirus, as well as provide for additional weeks of time off under the Family Medical Leave Act so they can be guaranteed of being able to return to their jobs afterwards.
Employers need to pay extra attention to the added paid sick leave and FMLA provisions of this new law, the Families First Coronavirus Response Act, which only applies to employers with fewer than 500 employees.

Paid sick leave

Employees are entitled to two weeks (80 hours) of paid sick time for coronavirus-related issues. Eligible workers must be paid their regular pay, up to $511 per day and $5,110 in total.
Those caring for someone subject to quarantine due to COVID-19, and parents of kids who can’t go to school or daycare, will receive two-thirds of their regular pay, up to $200 daily with a $2,000 cap. The emergency sick leave benefit can be used immediately, regardless of how long the worker has been employed with you. The law does not require certification of an order by the government or a health care provider. But employers can require reasonable notice procedures, such as not announcing in the middle of a shift that they take COVID-19 sick leave. They cannot require the employee to find a replacement worker to cover the shifts they will miss. Employers must post the law’s requirements “in conspicuous places.”
Employers are not allowed to discipline a worker who takes this sick or FMLA leave for coronavirus purposes. If an employer refuses to provide the leave, they can be subject to paying back pay and statutory damages.
Important: This law provides payroll tax credits to offset costs of providing paid leaves.

FMLA

The law provides for 10 additional weeks of FMLA leave, but only for those who must stay at home to care for a child whose school is closed or their childcare provider is unavailable due to COVID-19- related issues. These 10 weeks will be paid at two-thirds the employee’s regular rate of pay, up to $200 per day with a cap of $10,000. They will also receive 12 weeks of leave
with job protection, though employers of health care or emergency care providers can exclude such employees. The employee would likely use up their two weeks of paid sick leave before applying
for FMLA benefits, which unlike traditional FMLA (which is unpaid), are paid leaves after the first 10 days under the new law. Employees who have been working for more than 30 days are eligible, and the employer can require them to provide reasonable notice that they are taking leave.

A final word

This law only applies to employers with fewer than 500 workers, so it leaves uncovered those people who work for larger companies. Also, employers need to make financial plans, as the credit
cannot be claimed until after the employer pays their payroll taxes. A bigger issue is that the law requires that workers be paid the sick leave even if they are not sick, but have been ordered to self-isolate. In states that have ordered workers to self-isolate, such as California, employers could be faced with an avalanche of paid sick leave claims all at once. This law sunsets on Dec. 31, 2020.


Coronavirus – Our toolkit to answer all your questions


We have put together a full toolkit answering all the questions you may have regarding the Coronavirus. Let us know if you still have any other questions.

 

CDC guide for the workplace

The CDC developed a guide for the workplace. Download it here.

FAQ’S on laws enforced by the CA Labor Commissioner’s Office

Get all the answers regarding the Coronavirus Disease (COVID-19) here.

Information from the California Employment Development Department

Read everything about the Corona Virus from the EDD here.

Prevention information from SHRM

Read here.

Questions about your Commercial Insurance Coverage?

In light of recent news about COVID-19 (coronavirus), several clients have asked us questions about coverage. Every claim is reviewed based on the facts of the particular claim. It is the facts of the claim which dictate whether there is coverage or not under the language of the policies. With that caveat, and with an encouragement to review the policy forms as they apply to the particular claim,  this is a general summary:

  • Business income it is not recoverable under the property policy for the coronavirus, most policies  both contain a virus and bacteria exclusion that can be found in the property section.
  • Commercial General Liability policy may respond to the extent the member is found negligent and a claim is not otherwise excluded.
  • Workplace Violence/Crisis Incident/Outside Aggressor Coverage found in the General Liability does not apply.

 


Double Down on Safety This New Year – January 2020 RISK REPORT


As the new year gets underway, now would be a good time to double down on your workplace safety efforts to see if there are any areas that you may be overlooking.
While your safety regimen may be top-notch, there is always room for improvement and you can consider these options as recommended by EHS Today:

Use a 10-second rule

Workers should consider using the 10-second rule before resuming a task after a break or disruption. During this time before resumption, the worker can conduct a mental hazard check, which EHS Today refers to as STEP:
S – Stop before resuming a job or beginning a new task.
T – Think about the task you are about to do.
E – Ensure potential hazards have been identified and mitigated.
P – Perform the job.

Take advantage of OSHA training

The OSHA Outreach Training Program provides training for workers and employers on the recognition, avoidance, abatement and prevention of safety and health hazards in workplaces. Through this program, workers can attend 10-hour or 30-hour classes delivered by OSHA-authorized trainers. The 10-hour class is intended for entry-level workers, while the 30-hour class is more appropriate for workers with some safety responsibility. Information is on OSHA’s website. Communicate with non-English-speaking workers Non-English-speaking laborers have more workplace accidents than their peers. The language barrier may keep them from reporting workplace hazards and they may not understand safety instructions.

If you have non-English-speaking workers:
• Ensure that training is fully understood.
• Try to get any safety training materials also printed up in Spanish, and other languages prevalent in your workplace.
• If you have one, provide them a contact in your organization that speaks their language, so that they can get answers to any questions they may have or to report concerns.

Urge employees to speak up

Let your workers know that there will be no retribution for reporting perceived workplace hazards, no matter how minor. You can also implement the third suggestion above, and reward employees that point out safety issues.

Make your training engaging

The best safety training programs are those that employees remember. Some good ways to make sure the information is retained include using real-life examples, story-telling, skits and strong video presentations.

Do more than OSHA requires

OSHA’s regulations are meant to be comprehensive, but every workplace is different and for a truly effective safety program you should fine-tune your safety requirements specifically for your workplace. In other words, you can go a step beyond what OSHA requires.

Watch each other’s back

You should also instill a sense of responsibility among your staff to look out for each other. If a worker sees another performing a job in an unsafe manner, they should step in to offer assistance. This can be done without being intrusive or confrontational.
Some good approaches include: “Hey, would you like me to watch out for your safety?” and “As you know, you need to be wearing cut-resistant gloves to perform that task.”


Coverage Gap Concerns as Cyber Threat Grows – January 2020 RISK REPORT


Small and mid-sized businesses are increasingly bearing the burden of cyber threats, as criminals are betting they 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 a firm into bankruptcy.
Unfortunately, with more data breaches hitting the news, one of the main concerns that executives have is if their insurance will cover the costs of recovering from an attack.

If you are running a small or mid-sized company, do not underestimate the growing threat to your business. Your chief priorities should be protecting against the threat and having proper insurance coverage in place.

TOP REASONS FOR CYBER LOSSES

• 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%
Source: Advisen and Nationwide Insurance Co.

Insurance concerns

One of the chief 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 a report by insurance news website Advisen and Nationwide Insurance. Some companies feel they don’t need cyber coverage because they believe their property and liability policies will cover any related losses.

EXECUTIVES’ INSURANCE WORRIES

• 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 expect cyber-related business interruption to be covered by a cyber policy.
• 89% said they expect their cyber policy to cover 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.
• 53% of respondents said coverage for funds-transfer losses 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.

The takeaway

Since cyber insurance is a new and evolving product, all policies do not cover the same thing. That’s why it’s important to weigh your choices carefully and consult with us. While the cyber threat grows, more insurers are changing language in their property and liability policies to limit coverage of cyber events. Because of the high costs associated with a data loss, more
executives want to see higher 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, according to the Advisen report. To find the best coverage for your business, please talk to us. We can help you evaluate your risks and coverages and identify any gaps by looking at your existing policies.


Top New Laws and Regs Affecting Businesses – January 2020 RISK REPORT


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

The controversial 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 the purposes of 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 regs, 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. Businesses 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 sell personal information as part of their business.

6. Return of the individual mandate

A new law brings back the individual mandate requiring Californians at least 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. Starting in 2020, California residents are required to have health insurance or pay excess taxes. 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. 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 workers’ comp 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.

8. Harassment training partly pushed back

Employers with five or more workers were required to conduct sexual harassment prevention training for their staff by the end of 2019 under a California law passed in 2018. A new law extends the compliance deadline for some employers who had already conducted training prior to 2019. The original law, SB 1343, required all employers with five or more staff to conduct sexual harassment prevention training to their employees before Jan. 1, 2020 – and every two years after that. If you have never trained your staff, you should have done so in 2019.

But if you have, here are the new rules:
• If you trained your staff in 2019, you aren’t required to provide refresher training until two years from the time the employee was trained.
• If you trained your staff in 2018, you can maintain the two-year cycle and comply with the new Jan. 1, 2021 deadline. You did not have to repeat the training in 2019.

9. Hairstyle discrimination

A new law makes it illegal for employers to discriminate against employees and job applicants based on their hairstyle if it is part of their racial makeup. The CROWN Act (Create a Respectful and Open Workplace for Natural Hair), 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 of race 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.
• 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 this year.


New Bill affects Large Group Health Care Service Plan Contracts – In effect July 1st 2020


This new bill, commencing July 1, 2020, would expand those requirements to apply to large group health care service plan contracts and health insurance policies and would impose additional rate filing requirements on large group contracts and policies. On and after July 1, 2020, the bill would require a plan or insurer to disclose with a rate filing specified information by geographic region for individual, grandfathered group, and nongrandfathered group contracts and policies, including the price paid compared to the price paid by the Medicare Program for the same services in each benefit category. The bill would eliminate separate reporting and disclosure requirements for a health plan that exclusively contracts with no more than 2 medical groups in the state.

On and after July 1, 2020, the bill would require a health care service plan that fails to file specified information to disclose other information by market and by geographic region. If a plan or insurer fails to provide all the information required, the bill would specify that the filing is an unjustified rate on and after July 1, 2020. The bill would authorize a large group contract holder that has experience-rated or blended coverage and meets specified criteria to apply to the Department of Managed Health Care or Department of Insurance, as appropriate, within 60 days of receiving notice of a rate change to review a rate change and determine if it is unreasonable or not justified, and would require the appropriate department to use reasonable efforts to complete the review within 60 days of receiving all the information required to make a determination.

The bill would require the Department of Managed Health Care to conduct a public meeting regarding large group rates in every even-numbered year. Because a willful violation of the bill’s requirements relative to health care service plans would be a crime, the bill would impose a state-mandated local program.

Read the full bill here: http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201920200AB731


For nonprofits: trends in insurance buying – challenges and opportunities


One of our providers, Philadelphia Insurance Companies, conducted a new research study to examine how nonprofits purchase insurance and their primary challenges.

A large number of nonprofits participated in the study, in fact almost 200. Here are some of the key findings of the report:

  • Insurance providers are evaluated through referrals, talking to peers, and face-to-face meetings with insurance representatives
  • Nonprofits top 3 challenges are cultivating donors and stewardship, having adequate staffing, and retaining donors
  • 46% of non-profits are shifting fundraising activities to the web and social media
  • 43% are adjusting strategies based on analyzing donor actions

Download the full report here:  Full report


12 Health & Wellness Trends To Watch In 2020


Fascinating article on the latest trends we can expect to see in 2020. Here is the list.

  1. – Cellular beauty is here
  2. – Nutrition will be clear once and for all
  3. – Anxiety about our planet is on the rise
  4. – Downtime will become productive
  5.  – Digital detoxing
  6. – Sustainable packaging will be used by big brands
  7. – Healthy aging is accepted!
  8. – Focus on raising independent kids
  9. – Keto diet will be easily accessible
  10. – The way we approach and discuss death will change
  11. – Clean cereals are coming
  12. – Real wellness is here 

Read all the details of each trend here: http://bit.ly/2LyYQKq


Transitioning your Executive Director? But how to make it a smooth transition?


Never is it easy to transition Executive Director but you may be interested in reading the story of one E.D. and their transition. We enjoyed this story so much that we wanted to share it with you.
Some of the thoughts mentioned in the article included:
The critical elements to a successful E.D. transition include paying careful attention to how to inform your board, staff, media, and the community; how to conduct a search; events to say goodbye and hello; and how to document key contacts.

Read the full story here: bit.ly/364Qn9A


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