California’s Indoor Heat Illness Prevention Standard Approved: What You Need to Know

Author, Megan Lockhart, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.

Recently, the Cal/OSHA Standards Board approved new requirements for California businesses, heat illness prevention for indoor work spaces. The new Section 3396 addition to the California Labor Code will go into effect as early as August 1, 2024.

 The law states that requirements apply to “all indoor work areas where the temperature equals or exceeds 82 degrees Fahrenheit when employees are present.”

 For work environments such as warehouses, restaurants, and manufacturing plants, temperatures can rise dangerously high, putting employees at risk for heat illness. Let’s take a look into the new requirements for employers. 

1. Provide access to cool-down areas, and encourage employees to take cool-down rests.

2. Provide access to potable water that is fresh, suitably cool, free of charge, and located as close as possible to indoor cool-down area.

3. Monitor employee symptoms and provide appropriate first aid and emergency response if they exhibit or report signs of heat illness.

4. Closely observe new employees for the first 14 days of employment as they acclimatize.

5. Provide employees and supervisors with training on topics such as heat risk factors, symptoms of heat illness, water consumption, and emergency procedures.

6. Establish, implement and maintain a written Heat Illness Prevention plan for the work environment.

Some additional requirements also apply when the temperature or heat index reaches or exceeds 87 degrees while employers are present, or the temperature reaches or exceeds 82 degrees and employees wear clothing that restricts heat removal or they work in a high radiant heat area.

 In these cases, employers need to maintain records of their indoor temperature or heat index. They also must initiate engineering, administrative, and personal control measures to reduce the indoor working environment and maintain it below 87 degrees.

 As temperatures continue to soar in many parts of California, employers with employees working indoors in high heat conditions should evaluate their current heat policies to ensure they comply with these impending labor law changes.

 For further information about indoor heat illness prevention compliance, clients should refer to the Cal/OSHA website, which offers resources employers can utilize, including a Sample Written Heat Illness Prevention Plan for Indoor and Outdoor Places of Employment (Model Program). 

Updates to California Healthcare Minimum Wage Policies for 2024

Author, Megan Lockhart, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.

This year has seen several changes to minimum wage in the State of California. On January 1, 2024, the California general minimum wage increased to $16 per hour, regardless of tips. However, as of July, several individual industries across the State, including healthcare, saw minimum wage increases. 

While the federal minimum wage rate still stands at $7.25 as per the Fair Labor Standards Act (FLSA), individual states and certain cities may have their own minimums like California. So, be sure to check the updates in the RM365 HRAdvantage™ portal for your specific industry and jurisdiction to ensure your company’s payroll is compliant.

California Healthcare Minimum Wage Rate Changes

Jurisdiction	Industry	Coverage	Minimum Wage as of July 1, 2024
Statewide	General		$16.00
Statewide	Healthcare	Hospitals	$18.00 (delayed, effective date TBD)
Statewide	Healthcare	Clinics and all other healthcare facilities	$21.00 (delayed, effective date TBD)
Statewide	Healthcare	Large employers and integrated healthcare systems	$23.00 (delayed, effective date TBD)

Clients can login to the RM365 HRAdvantage™ portal to review the full minimum and tipped wages for all states under the 2024 State and Local Minimum and Tipped Wage Rates.

California Expands Regulations for Employee Criminal History

Author, Megan Lockhart, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.

Recently, California updated regulations regarding how employers can use criminal history to make employment decisions.

The new standards come as an update to the California Fair Employment and Housing Act (FEHA) and apply to businesses with five or more employees.

The updates have expanded the definition of “applicant” to include any employees who pursue or intend to pursue a new position in the company, as well as those being reviewed due to a change in company management or ownership.

Employers are prohibited from stating in job postings that they will not hire applicants with criminal backgrounds.

“Employers are prohibited from including statements in job advertisements, postings, applications, or other materials that no persons with criminal history will be considered for hire, such as ‘No Felons’ or ‘Must Have Clean Record,’” subsection (a)(2) of the law states.

Furthermore, if an applicant shares their criminal history voluntarily, and is otherwise qualified for the job, the employer cannot take their criminal history into consideration until a conditional job offer has been made to the individual.

The update also adds that if a “a licensing, regulatory, or government agency or board” grants the right to perform the job duty, such as in the form of a certification, the employer should not consider their criminal history a disqualifying factor for the prospective job.

The California Civil Rights Department provides sample notices employers can use to communicate how their criminal history will affect the company’s decision making.

Rancho Mesa aims to provide the resources clients need to make informed employment decisions. For any questions regarding these updates, contact your client technology coordinator.

The Road to Recovery: Commissioner Lara's Plan to Rescue Property Insurance in California

Author, Jeremy Hoolihan, Account Executive, Rancho Mesa Insurance Services, Inc.

California Governor Gavin Newsom recently declared property insurance a State of Emergency in CA based on a mass exodus of property insurance companies. This has allowed CA Insurance Commissioner Ricardo Lara to strike a deal with insurance companies to encourage new coverage in the State. The changes are slated to go into effect by the end of 2024. However, the hope is that insurers will begin to write homeowner’s policies sooner.

The agreement between Lara and the insurance industry will have insurers return to high-risk zones in the State, in exchange for relief in current regulations. This would allow insurers to get higher rate increases through the state regulator much faster.

Key regulatory elements of Lara’s plan, per his press conference on September 21, 2023, include:

1. Executive action by the Commissioner to transition homeowners and businesses from the FAIR Plan back into the normal insurance market with commitments from insurance companies to cover all parts of California by writing no less than 85% of their statewide market share in high wildfire risk communities. For example, if a company writes 20 out of 100 homes statewide, it must write 17 out of 100 homes in a distressed area.

2. Allowing FAIR Plan policyholders who comply with new safer wildfire regulations the first priority to transition to the normal market.

3. Expediting the Department’s introduction of new rules for the review of climate catastrophe models that recognize the benefits of wildfire safety and mitigation actions at the state, local, and parcel levels.

4. Directing the FAIR Plan to further expand commercial coverage to $20 million per building to close insurance gaps for homeowner’s associations and condo developments to help meet the State’s housing goals and to provide required coverage to other large businesses in the state.

5. Holding public meetings to explore incorporating California-only reinsurance costs into rate filings.

6. Improving rate filing procedures and timelines by enforcing the requirement for insurance companies to submit a complete rate filing, hiring additional Department staff to review rate applications and inform regulatory changes, and enacting intervener reform to increase transparency and public participation in the process.

7. Increasing data reporting by the FAIR Plan to the Department, Legislature, and Governor to monitor progress toward reducing its policyholders.

8. Ordering changes to the FAIR Plan to prevent it from going bankrupt in the case of an extraordinary catastrophic event, including building its reserves and financial safeguards.

Lara’s plan is hopefully going to deter more insurance companies from leaving California by loosening certain elements of insurance regulations. Under the existing system, insurers need to apply with the Department of Insurance to raise their rates and provide supporting documentation to justify the rate hike. The process would allow consumer advocates to intervene along the way, acting as watchdogs in the process.

With property owners desperately searching for affordable comprehensive coverage, Lara’s plan cannot come sooner. While this will take time to implement, it is an important step in restoring the property marketplace in California. If you have any questions relating to this article please feel free to reach out to me at jhoolihan@ranchomesa.com or 619-937-0174.

AB 685 Creates New Notice and Reporting Requirements

Author, Sam Brown, Vice President of the Human Services Group, Rancho Mesa Insurance Services Inc.

On September 17th, 2020 Governor Gavin Newsom signed into law Senate Bill 1159 (SB 1159) and Assembly Bill 685 (AB 685), both COVID-19 related bills.

Both pieces of legislation will impact how employers respond to incidents of COVID-19 infections. This article will help business owners and officers understand AB 685’s heightened occupational health and safety rules. Employers also need to understand how AB 685 grants California’s Occupational Safety and Health Administration (Cal/OSHA) greater enforcement powers.

Posting Requirements

AB 685 requires California employers to provide the following four notices within one business day of being informed of a potential COVID-19 exposure:

1. Provide a written notice to all employees, and to the employers of subcontracted employees, who were at the same worksite within the infectious period, notifying the employee that they may have been exposed to COVID-19. It must be reasonable to assume the employees will receive the notice within one day, whether that is through email, text, or written notification.

2. If the employee population includes represented employees, then the employer must also send notice to the exclusive representative of the affected bargaining unit.

3. The employer must also provide notice of any COVID-19 related benefits or leave rights under federal, state, and local laws, or in accordance with employer policy. The employer must also notify employees of their protections against retaliation and discrimination. 

4. The employer must notify all employers, the employers of subcontracted employees, and any exclusive representative, of the employer’s plan to complete a disinfection and safety plan in accordance with federal Centers for Disease Control guidelines.

Employers are required to maintain records of these notices for at least three years. Failure to comply with the notice requirements may result in a civil penalty.

If an employer learns of an “outbreak” as defined by the California Department of Public Health (“CDPH”), the employer must also notify the appropriate public health agency within 48 hours with the names, occupation, and worksite of any “qualifying individuals” related to the “outbreak.”

Two exceptions to the notice and reporting requirements:

1. Health facilities as defined in Section 1250 of the Health and Safety Code, are not required to report an “outbreak” within 48 hours.

2. The notice requirements do not apply to exposures by employees whose regular duties include COVID-19 testing and screening, or care to individuals who have or who are suspected to have COVID-19, unless the “qualifying individual” is also an employee at the same worksite.

Authorized Shutdown

Under AB 685, if Cal/OSHA determines that a workplace or operation within a workplace exposes employees to a risk of COVID-19 infection, creating an imminent hazard to employees, Cal/OSHA is authorized to prohibit entry to the workplace or the performance of operation in question.

If your organization would benefit from guidance on these new employer requirements, please contact Rancho Mesa Insurance at (619) 937-0175.  

Sources:

https://www.lcwlegal.com/news/governor-newsom-signs-sb-1159-and-ab-685-into-law-impacting-covid-19-related-workers-compensation-coverage-and-creating-new-notice-and-reporting-requirements-related-to-covid-19-workplace-exposures

https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201920200AB685

CA Governor Issues Executive Order Making Workers’ Compensation Benefits More Readily Available to Essential Workers

Author, Sam Brown, Vice President, Human Services Group, Rancho Mesa Insurance Services, Inc.

On Wednesday, May 6 2020, California Governor Gavin Newsom issued an Executive Order making workers’ compensation benefits more readily available to essential workers.

The Executive Order states “any COVID-19-related illness of an employee shall be presumed to arise out of and in the course of employment for purposes of awarding workers’ compensation benefits if all of the following requirements are satisfied:

a.  The employee tested positive for or was diagnosed with COVID-19 within 14 days after a day that the employee performed labor or services at the employee’s place of employment at the employer’s direction;

b.  The day referenced in subparagraph (a) on which the employee performed labor or services at the employee’s place of employment at the employer’s direction was on or after March 19, 2020;

c.  The employee’s place of employment referenced in subparagraphs (a) and (b) was not the employee’s home or residence; and;

d.  Where subparagraph (a) is satisfied through a diagnosis of COVID-19, the diagnosis was done by a physician who holds a physician and surgeon license issued by the California Medical Board and that diagnosis is confirmed by further testing within 30 days of the date of the diagnosis.”

Insurance companies have 30 days from the date of a COVID-19 diagnosis to rebut with evidence.

According to the Executive Order, the presumption pertains only “to dates of injury occurring through 60 days following the date of this Order.”

The order establishes a rebuttable presumption that any essential workers infected with COVID-19 contracted the virus on the job. It is important to understand the order shifts the burden of proof from the injured worker and now requires employers or insurance companies to prove the employee didn’t get sick at the place of work.

Prior to the change, it was difficult to prove workers’ compensation claims related to a COVID-19 infection.

Rancho Mesa’s Response

In response to the Executive Order and other proposed rule changes, Rancho Mesa President David Garcia interviewed Berkshire Hathaway Homestate Companies President Rob Darby on the impact to California businesses and the workers’ compensation market. Berkshire Hathaway is one of the largest workers’ compensation insurance companies in California.

Read Governor Newsom’s Executive Order on Cal/Gov website.

Please contact your Rancho Mesa broker with questions specific to your business.