FFCRA Requiring Mandatory Display of Notice

Author, Lauren Stumpf, Media Communications Coordinator, Rancho Mesa Insurance Services, Inc.

The Families First Coronavirus Response Act (FFCRA) is requiring all employers with fewer than 500 employees, to post the Employee Rights - Paid Sick Leave and Expanded Family and Medical Leave Under the Families First Coronavirus Response Act notice in a conspicuous place on their premises. An employer may satisfy this requirement by emailing or direct mailing this notice to employees and new hires or posting it on the employer’s website (“an employee information internal or external website”).

The notice must be posted from April 1, 2020 through December 31, 2020, regardless of whether the employer’s state requires greater protections.

More information about the FFCRA notice specifications can be found on the U.S. Department of Labor website.

Check the Wage and Hour Division of the U.S. Department of Labor website or sign up for Key News Alerts to ensure that you remain current with all notice requirements.

Manage Your COVID-19 Risk With These Tools

Author, Alyssa Burley, Media Communications and Client Services Manager, Rancho Mesa Insurance Services, Inc.

While most of the country is under shelter-in-place orders, many of our clients work in essential industries that must continue to provide vital services to the community. Therefore, it is imperative that they have the tools they need to keep their employees safe.

For those who must continue to operate, we’ve complied resources employers can use to implement COVID-19-specific written safety programs, provide employee training, and signage that can be posted in the workplace. Many of these resources are available in both English and Spanish.

Our goal is to provide the tools our clients’ needs to protect their employees.

Program Administration

Our risk management and safety partners have developed templates that employers can use, today.

• COVID-19 Guide (English/Spanish)
  This document should be reviewed by ownership and management for clarification on how to implement the COVID-19 Written Program.

• COVID-19 Guide Amendment A: Employee Has Tested Positive for COVID-19, Now What?

  Amendment A provides instructions on what to do if your employee tests positive for the COVID-19 virus.

• COVID-19 Health Screening Form (English/Spanish)
  Each employee, should complete this form daily before performing any work. Foremen and supervisors should send these completed forms to management for record keeping purposes.

• COVID-19 Written Program (English/Spanish)
  This program should be reviewed by all employees including ownership, management and workers in the field.

• COVID-19 Written Program Acknowledgement Form (English/Spanish)
  All staff members must acknowledge they have read and understand the new program by signing the acknowledgement form.

• COVID-19 Checklist for Management (English/Spanish)
  This checklist should be used daily for management to evaluate safety within the office for employees and identify any areas of concern.

• COVID-19 Checklist for Jobsites (English/Spanish)
  This checklist should be used daily by foreman to evaluate the safety within the jobsite for employees and identify any areas of concern.

• COVID-19 Site-Specific Safety Plan
  This site-specific safety plan may be required by a general contractor or site owner. It is a template employers can use to develop COVID-19 safety plans for specific jobsites where employees are working.

Training Staff

We have complied training that teach staff how to prevent the spread of the COVID-19 virus in the workplace through proper hygiene.

• COVID-19 How to Prevent Catching & Spreading Coronavirus (English/Spanish)

• Coronavirus and Workplace Hygiene (English/Spanish)

Safety Signage

In addition to proper training, signage is another way to remind employees of proper ways to prevent the spread of the COVID-19 virus within the workplace and among their co-workers.

• CDC – Don’t’ Spread Germs at Work (English/Spanish)

• CDC – Handwashing Sign  (English/Spanish)

• CDC – Handwashing: A Corporate Activity

• COVID-19 – Do Not Enter If You Have Symptoms

• COVID-19 – Eliminate the Spread Workday Flowchart

• COVID-19 – How in infects and Spreads

• COVID-19 – Prevention Practices – Why is soap better?

• COVID-19 – Wash Hands Upon Entry Sign

To access these resources, login to the Risk Management Center and type in “COVID-19” or “Coronavirus” into the search box. If you already have an account but do not remember your login information, click the “Forgot Username or Password” link on the login screen.

We’ll continue to provide COVID-19 resources as they become available. Please visit www.ranchomesa.com/covid-19 for human resources content, insurance carrier statements and more.

3 Cyber Threats of Employee Telecommuting

Author, Sam Clayton, Vice President, Construction Group, Rancho Mesa Insurance Services, Inc.

The recent coronavirus (COVID-19) pandemic has created numerous challenges for both individuals and businesses all over the world. Last week, California Governor Gavin Newsom required all residents to “shelter-in place” and all “non-essential businesses” to cease “in-person” operations. In doing so and in order to keep their business operating, many employers transition employees to work remotely, otherwise known as Telecommuting. 

While this approach is nothing new for many businesses, employers have been required to expedite these accommodations which creates unanticipated Cyber Liability Exposure.

Below are three online threats that remote workers should be aware of:

1. Secured WiFi Networks

Make sure that all employees are using a secure WiFi network. An unsecured or public WiFi network are prime targets for malicious parties to spy on internet traffic and collect confidential information.

2. Use of Personal Devices and Networks

Many employees will be forced to use personal devices and home networks for work. These devices often lack the tools built into company networks, such as strong antivirus software and firewalls. This lack of security could increase the risk of malware which may allow personal as well as confidential information being exposed.

3. Phishing Scams

Workers may receive emails from hackers impersonating a supplier/vendor or even someone within the organization to obtain confidential information or to transfer funds unknowingly.

In order to minimize these threats, companies should implement a written “Telecommuting Agreement” that outlines specific practices and procedures when employees are working remotely. 

For information on implementing these and other internal policies, visit www.ranchomesa.com/COVID-19 and login to our RM365 HRAdvantage™ portal. Contact Alyssa Burley aburley@ranchomesa.com in our Client Services Department to learn more about the platform.

Healthcare Insurance Carriers Respond to COVID-19 Threat

Author, Alyssa Burley, Media Communications and Client Services Manager, Rancho Mesa Insurance Services, Inc.

As Rancho Mesa continues building resources for our clients and their employees across all sectors, we have compiled a list of healthcare insurance providers and their enhanced benefits designed to respond to the COVID-19 virus. Listed below is information related to COVID-19 testing when ordered by a physician.

Health insurers are responding to the Coronavirus threat by offering members no-cost screening and diagnostic testing.

Carrier	Enhanced Benefits1
Aetna	Screening/diagnostic testing provided at no cost. $0 copay telemedicine (for next 90 days2). Members diagnosed with COVID-19 will receive a care package with over-the-counter medications and cleaning supplies. CVS Health will help Aetna members that may be experiencing anxiety related to COVID-19 by: • opening Crisis Response Lines • providing plan sponsors with a Resources for Living toolkit • expanding 24/7 access to the Aetna Nurse Medical Line
Anthem Blue Cross	Screening/diagnostic testing provided at no cost.
Blue Shield of California	Screening/diagnostic testing provided at no cost.
Health Net	Screening/diagnostic testing provided at no cost.
Kaiser Permanente	Screening/diagnostic testing provided at no cost.
MediExcel Health Plan	Screening/diagnostic testing provided at no cost.
Oscar Health	Screening/diagnostic testing provided at no cost. Continuing to offer $0 telemedicine through Doctor on Call for most members.
Sharp Health Plan	Screening/diagnostic testing will be covered under the member's standard plan benefits.
Sutter Health Plan	Screening/diagnostic testing provided at no cost.
United Healthcare	Screening/diagnostic testing provided at no cost. Free Emotional-Support Help Line available for members suffering from fear or stress due to COVID-19, open 24/7.
Western Health Advantage	Screening/diagnostic testing provided at no cost.

¹ Screening/diagnostic testing when ordered by the physician.
² Aetna’s website states a 90-day window as of March 2020, but the page is posted without a start/end date. Check with Aetna before receiving services

View full table here.

For additional resources and telemedicine information for each carrier, download the full PDF document.

Fire, Earthquakes, Leaks, Oh My! Property Insurance Market Continues to Worsen

The 2018 California Wildfires brought unprecedented destruction and loss to the region. The total value of insurance claims is estimated to exceed $13 billion. While some have theorized that Pacific Gas & Electric (PG&E) will reimburse insurance companies as a result of its negligence to maintain trees and equipment that caused the destructive wild fires, many believe this will not be the case.

The total damages expected to fall on PG&E exceeds $30 billion, most of which will go towards municipalities before it goes to the insurance companies. This is omitting any lawsuits that have yet to be filed. Also, much of what PG&E will be required to pay will come from…its insurance policy. 

Alternative Options to the Standard Market

Many of our clients have opted for alternative options to the standard insurance programs most are accustomed to purchasing to cover their property. These alternative approaches are allowing our clients to save money while still insuring their property to a level that they feel comfortable.

Many of these options are backed by the state of California and allow the client to have key coverage for fires, water leaks, vandalism, etc. while saving, in many cases, 60-80%. There is no limit to property size and geographic location on these alternative programs.

For more information about alternatives to standard insurance programs for property coverage, please contact Rancho Mesa Insurance Services at (619) 937-0164.

Have You Brushed Up on Your ABC’s?

Author, Emily Marasso, Media Communications Assistant, Rancho Mesa Insurance Services, Inc.

California Assembly Bill 5 (AB 5), better known as the “Gig Worker’s Bill” became law on January 1, 2020 and is designed to reclassify many independent contractors as employees for purposes of wages and benefits. What does this bill mean and how does it affect you??

Previously, employers used the “Borello test” to identify someone as either an independent contractor or employee. In most cases, AB 5 changes the standards to the new “ABC test,” which makes it much more challenging for a person to be classified as an independent contractor. Both the Borello test and the new ABC test assume that the worker is an employee and the employer must prove that the worker is actually an independent contractor.

According to the new law, “a person providing labor or services for remuneration shall be considered an employee rather than an independent contractor unless the hiring entity demonstrates that all of the following conditions are satisfied:

(A) The person is free from the control and direction of the hiring entity in connection with the performance of the work, both under the contract for the performance of the work and in fact.

(B) The person performs work that is outside the usual course of the hiring entity’s business.

(C) The person is customarily engaged in an independently established trade, occupation, or business of the same nature as that involved in the work performed.”

If you have hired an independent contractor who does not pass the ABC test, they likely will now be classified as an employee with minimum wage, unemployment insurance, sick leave, and income tax and social security withholdings. Independent contractors are not entitled to these benefits.

Doctors, lawyers, hair stylists, and insurance agents are just some of the more common independent contractor jobs that are not affected by AB 5. At this time, independent contractors such as architects and engineers are exempt from the ABC Test, but truck owner-operators, surveyors, and geologists are not exempt. In January 2022, contractors will not be able to hire owner-operators truck drivers. They will have to work with a company that has drivers who are employees.

AB 5 is intended to reduce the misclassification of workers and bring equality to the workplace. Although the bill has good intentions, it could negatively affect the way many companies operate. The ABC test has strict guidelines to be considered an independent contractor. With the reins tightening, it will be difficult for companies to enlist independent contractors to supplement their workforce when needed. Employers will be forced to hire actual employees or hold off on hiring employees all together.

For specific questions about AB 5 and how it will affect your business, contact our HR Experts via the RM365 HRAdvantage™ portal.

Cal/OSHA Updates: AB 1805 Changes Definition of Serious Injury or Illness

Author, Emily Marasso, Media Communications Assistant, Rancho Mesa Insurance Services, Inc.

For reporting purposes, California Assembly Bill 1805 (AB 1805) outlines new definitions for what is considered a serious injury or illness. These changes were made to bring California’s laws more in line with Federal OSHA reporting standards. The changes include:

• Employers must now report all inpatient hospitalizations (regardless of the length of stay), unless the inpatient hospitalization is for medial observation or diagnostic testing.

• The phrase “loss of any member of the body” has been changed to “amputation” or the “loss of an eye” as needing to be reported.

• Workplace violence resulting in a serious injury, illness, or death that falls under the Penal Code are now considered reportable.

• Serious injury or death caused by an accident occuring in a construction zone on a public street or highway must now be reported.

• A “serious exposure” is now “any exposure of an employee to hazardous substances when the exposure occurs as a result of an incident, accident, emergency, or exposure over time and is in a degree or amount sufficient to create a realistic possibility death or physical harm in the future could result from the actual hazard created by the exposure.”

As of January 1, 2020, the changes to AB 1805 are in effect. Make sure your human resources, safety manger, and supervisors are aware of these changes and start the New Year off on the right foot.

OSHA Penalties Increase in 2020

Author, Lauren Stumpf, Media Communications Coordinator, Rancho Mesa Insurance Services, Inc.

On January 15, 2020 the Federal Register published the Federal Civil Penalties Inflation Adjustment Act Annual Adjustments for 2020. This final rule increases civil penalties the Department of Labor assesses including those issued by the Occupational Safety and Health Administration (OSHA) based on workplace inspections and potential violations of safety and health standards. The rule is effective January 15, 2020. Beginning January 16, 2020 OSHA civil penalties will increase.

The new 2020 maximum OSHA penalties are as follows:

• Serious violation: $13,494 (increased from $13,260)

• Other-than-Serious violation: $13,494 (increased from $13,260)

• Repeat violation: $134,937 (increased from $132,589)

• Willful violation: $134,937 (increased from $132,589)

• Each failure to correct the violation: $13,494 (increased from $13,260)

• Each posting requirement violation: $13,494 (increased from $13,260)

For more information about the OSHA Penalties, visit https://www.osha.gov/penalties.

Cal/OSHA Updates: AB 1804 Changes How Injuries and Illnesses Are Reported

Author, Emily Marasso, Media Communications Assistant, Rancho Mesa Insurance Services, Inc.

As of January 1, 2020, California Assembly Bill 1804 (AB 1804) changed how an employer reports a serious employee injury or illness to Cal/OSHA. The bill removes the option to submit the report via email and replaces it with an “online mechanism,” according to Labor Code section 6409.1 (b). Reports may continue to be made via phone.

Until Cal/OSHA implements an online mechanism for collecting serious injury and illness reports like Fed/OSHA, emailed reports will be accepted. However, reports submitted by phone are always recommended over an emailed report. Reports submitted via phone or an online mechanism allows Cal/OSHA to ensure vital information is collected that is necessary to evaluate the seriousness of the injury or illness.  

Cal/OSHA has not provided an estimated implementation date for the online report submission option.

As a reminder, California employers are required to report serious injury or illness of employees immediately. Serious injuries or illnesses must be reported as soon as practically possible. Deaths must be reported within 8 hours. All other injuries or illnesses must be reported once the employer learns of or should have known of the serious injury or illness.

It’s OSHA 300A Time

Author, Emily Marasso, Media Communications Assistant, Rancho Mesa Insurance Services, Inc.

The holidays have come and gone and here we are at the end of another great year. Year-end means calendar updates, process changes and document reviews, as well as time to prepare for filing your OSHA 300A form. 

The OSHA 300A form is a summary of injuries and illnesses which occurred on the job during the calendar year. The form must be filed electronically on the Injury Track Application (ITA) starting January 2, 2020. Deadline for 2019 data submissions is March 2, 2020. It must be displayed from February 1, 2020 to April 30, 2020.

Don’t forget, if you are a Rancho Mesa client and utilize the Risk Management Center Incident Track feature, you have access to generate the Cal/OSHA 300A form and export it to a CSV file. From there you can upload it to the OSHA website.

Rancho Mesa has put together a 5-minute tutorial video on how to generate the electronic 300A form data file from the Risk Management Center, that can be uploaded to the Injury Tracking Application website for reporting the data.

For questions about how to track the injury and illness data in the Risk Management Center, contact Alyssa Burley at (619) 438-6869.

Youth Protection Policy - Are You Protected?

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

California Governor, Gavin Newsome, signed a new state law on October 13th, 2019 to better protect California’s survivors of child abuse. In response, youth organizations and insurance companies expect a surge in legal activity in 2020.

This new law will give survivors of childhood sexual abuse until age 40 to file a civil suit against their attackers. This is a 14-year increase from the previous age limit of 26. Adult survivors previously had three years from discovering the abuse to sue, but the new law now provides a five year window. The new law also suspends the statute of limitations to three years beginning January 1, 2020. No age limit will be enforced during the three-year span.

The State of New York passed a similar law on January 25, 2019 named the “Child Victims Act.” Among other changes, the new law allows survivors of any age to come forward beginning August 1, 2019. More than 400 lawsuits were filed the first day the act took effect.

Insurance companies offering abuse liability insurance in California are prepared for a surge in legal activity in 2020. New lawsuits may cause an increase to insurance premiums and negatively impact the carriers’ capacity to offer higher limits of liability.

Youth organizations that normally rely on insurance companies to cover the cost of defense and settlement in these cases, may find themselves in financial jeopardy if insurance limits become exhausted.

It is imperative that school districts and other youth organizations take a critical look at youth protection policies and safeguards moving forward. This may include added training, mandatory background checks, and eliminating one-on-one interactions.

Please contact Rancho Mesa to learn about resources for creating a strong youth protection policy.

Information sourced from The Legal Examiner and ABC News.

New Law Changes Which Injuries Must Be Reported

Author, Daniel Frazee, Executive Vice President, Rancho Mesa Insurance Services, Inc.

A new California law, Assembly Bill 1805 (AB 1805), changes when employers are required to report serious workplace injuries to the California Division of Occupational Safety and Health (Cal/OSHA). The law now broadens the scope of what will be classified as a serious illness, injury or exposure. Many believe this change will increase the number of workplace accidents that will have to be reported in 2020.

The definition of “serious injury or illness” has, for many years, been defined as an injury or illness that requires inpatient hospitalization for more than 24 hours of treatment, or if any employee suffers a “loss of member” or serious disfigurement. The definition has excluded hospitalizations for medical observation. Regulations also excluded from reporting requirements any serious injury caused by a criminal assault and battery or a vehicle accident on a public road or highway.

AB 1805 aligns California’s rules more closely with Federal OSHA regulations for reporting. More specifically:

Rules

The following will need to be reported to Cal/OSHA:

• Any inpatient hospitalization (even less than 24 hours),

• An inpatient hospitalization is required for something “other than medical observation or diagnostic testing,”

• Employers must report any “amputation” (even if the tip of a finger is cut off) to Cal/OSHA. This replaces the terminology “loss of member;”

• The loss of an eye,

• Serious injuries or deaths caused by a criminal assault and battery,

• The exclusion for injuries from auto accidents on a public street or highway remains in effect.  However, accidents that occur in a construction zone must now be reported.

Compliance (related directly to serious injuries and illnesses or fatalities)

In order to say in compliance:

• The report must be made within 8 hours of the employer knowing, or with “diligent inquiry” should have known, about the serious injury/illness.

• The report must be made by PHONE to the nearest Cal/OSHA district office.

For more details on how these changes may impact your company’s IIPP, please contact me at (619) 937-0172.

California Non-Profits Brace for Higher Insurance Premiums and Dramatic Changes to Coverage

Author, Chase Hixson, Account Executive, Human Services Group, Rancho Mesa Insurance Services, Inc.

For years, the insurance marketplace for non-profits, specifically general liability, abuse, property and management liability have been somewhat stable (subject to loss history, of course). Unfortunately, that is looking to change as the marketplace braces for significant correction.

The key drivers of change:

• 2018 Wildfire Season
  An estimated $12 Billion in losses has forced carriers to offset those losses with higher premiums, regardless of the amount of property exposure. Reinsurance markets (insurance for insurance companies when a loss becomes catastrophic) suffered significant losses, as well, and have had to increase their rates on the insurance companies they insure.

• Increase in Harassment/Discrimination Claims
  Though the exact reason is unknown, many point to the #MeToo movement as the reason for more than double the harassment and discrimination claims that have occurred the last three years. We have already seen significant increases not only to premiums, but also deductibles.

• Incoming Influx of Abuse Claims
  With changes to California law, insurers expect an uptick in claims beginning January 2020 when the statute of limitations will be lifted for reporting child abuse. We expect to see significant increases in premium as well as coverage being reduced or even eliminated in some scenarios.

What can you do to help your organization? Get out ahead of it early and be prepared to sell your organization to the marketplace. The insurance carriers will need to have a clear picture of what your organization is doing to be different when compared to the organizations that are causing the losses. It may seem like a lot of information to present to a carrier, but failure to do so will lead to increased costs for your organization.

Contact Rancho Mesa Insurance at (619) 937-0164 if you would like to discuss how these changes may affect your organization.

Contractors Brace for Impact of 2020 Expected Loss Rates

Author, Kevin Howard, CRIS, Account Executive, Rancho Mesa Insurance Services, Inc.

California contractors focused on their experience modification are paying close attention to the soon to be published 2020 Expected Loss Rates (ELRs).

ELRs determine the expected claim cost per $100 in pay roll for each class code during an Experience Modification (Ex-Mod) period. These rates are updated annually. The 2020 rates were recently approved on September 5, 2019. Changes in each specific class code’s ELR can positively or negatively impact a contractor’s Ex-Mod calculation.

In a nutshell, if an expected loss rate drops from one year to another with no material changes to payroll or claims, Ex-Mod’s will increase. Additionally, if an expected loss rate increases, Ex-Mod’s will decrease using the same example.

Below is a breakdown of the 2020 ELRs per class code with notable double digit increases highlighted:

Class Code	2020 ELR	Increase/Decrease %
3724 Solar/ Millwright	1.74	-4%
5187 Plumbing > $28	1.18	-8%
5183 Plumbing < $28	2.6	-5%
5542 Sheet Metal > $27	1.40	-4%
5538 Sheet Metal < $27	2.30	-12%
6258 Foundation Prep	2.65	-3%
0042 Landscape Gardening	2.59	-15%
0106 Tree Pruning	3.91	-21%
5140 Electrical Wiring > $23	.81	-6%
5190 Electrical Wiring < $23	1.89	+2%
5470 Glaziers > $33	1.63	+7%
5467 Glaziers < $33	4.30	-2%
5028 Masonry > $28	2.17	-9%
5027 Masonry < $28	4.73	-18%
5482 Painting/ Waterproofing > $28	1.42	-15%
5474 Painting/ Waterproofing < $28	3.68	-7%
5186 Automatic Sprinkler Install > $29	1.11	+5%
5185 Automatic Sprinkler Install < $29	2.45	-18%
5205 Concrete/Cement work > $28	1.95	-5%
5201 Concrete/Cement work < $28	3.95	-4%
5432 Carpentry > $35	2.01	-7%
5403 Carpentry < $35	5.27	-9%
5447 Wallboard Application > $36	1.34	-12%
5446 Wallboard Application < $36	2.76	-21%
5485 Plastering or Stucco >$32	2.66	-6%
5484 Plastering or Stucco < $32	4.78	-27%
5443 Lathing	2.37	-18%
5553 Roofing > $27	3.90	-14%
5552 Roofing < $27	9.85	-4%
6220 Excavation/Grading > $34	1.24	-24%
6218 Excavation/Grading < $34	2.34	-5%

The data above shows that a majority of class codes will be seeing a decrease in ELRs which will cause higher Ex-Mods in many cases. That reality creates a heightened need for loss control, claim management and post claim strategies. If you are seeking a partner with the tools to address these needs, please reach out to Rancho Mesa Insurance and our team of professionals at (619) 438-6874.

California Wildfires Distress Insurance Market

2018 saw the most destructive wildfire season ever recorded in California. Over 1.8 million acres were burned; 22,751 buildings were destroyed and over 100 lives perished. As a result, insurance claims have exceeded $12 billion and are expected to rise.

Many in the industry expect we are on the verge of a crisis and from what I’ve seen so far, I’d have to agree. The marketplace is in frenzy as carriers aren’t sure what their overall financial hit will be. Furthermore, catastrophic losses like this affect the reinsurance marketplace, which causes pressure downstream to insurers.

Below is a look at what we are seeing in the marketplace.

Non-Renewals

Most carriers are non-renewing their entire books of business who are at risk of wildfires. Even if the client has been with the carrier many years with no losses, they are simply non-renewing properties on accounts in certain areas prone to wildfire. This is essentially leaving the marketplace with very few players.

Significant Premium Increases

Those carriers still willing to write property accounts are hiking up premiums significantly. We’ve heard of increases 5-10 times the previous year’s premiums. We recently spoke to an insured in the Riverside area whose insurance premium went from $85,000 to $500,000 a year. 

Increased Deductibles for Wildfires

On top of the significant premium increases, most carriers are offering increased deductibles for wildfires. It’s not uncommon to now see $150,000, $250,000 and $500,000 deductibles depending on the value of the building(s).

What Can Business Owners Do?

Business owners need to act early and quickly. Speak with a broker to plan ahead because it looks like there will be a significant financial burden and risk (per increased deductible) moving forward. The marketplace is inundated with excessive submissions, so the need to submit as early as possible is imperative. There are alternative insurance programs that can act as a temporary solution while helping alleviate cost burdens. Some declinations can be avoided by proper abatement of brush and trees or installation of fire suppression systems. Regardless of when the insurance policy renews, I suggest getting started on this as soon as possible. The marketplace could take several years to stabilize. 

For help understanding how wildfires can affect your organization’s insurance premium, contact Rancho Mesa Insurance Services at (619) 937-0164.

Senate Bill 778 Extends Employee Anti-Harassment Training Deadline

Author, Alyssa Burley, Media Communications and Client Services Manager, Rancho Mesa Insurance Services, Inc.

Newly passed Senate Bill 778 (SB 778) extends the deadline set in Senate Bill 1343 for California’s mandatory Anti-Harassment Training from January 1, 2020 to January 1, 2021. The bill also addresses concerns about supervisory employees and clarifies when temporary workers must be trained. California Governor Newsom signed the bill into law on August 30, 2019, which included an urgency clause that allows the bill to go into effect immediately.

What SB 778 Means to CA Employers

The changes made by SB 778 not only extends the deadline for non-supervisory employee Anti-Harassment training, but also allows supervisory employees to stay on their existing two-year training schedule. For example, if a supervisory employee completed Anti-Harassment training in 2018, their next training, with the SB 1343 compliant content, will be due in 2020 - two years from their last training date, which is before the new deadline. Likewise, if a supervisory employee was trained in 2019, their next training due date will be in 2021.

Non-supervisory employees will need to complete their initial 1-hour Anti-Harassment training by January 1, 2021. For those who have already taken the training in 2019, we recommend they maintain their two-year schedule, and complete the training again in 2021.

Both supervisory and non-supervisory employees must be trained within six months of hire. However, temporary or seasonal workers who are hired for less than six months must be trained within 30 days of hire.

For questions about this training requirement or to learn how to enroll your supervisors and employees, register for the “How to Enroll Supervisors and Employees in the Online Anti-Harassment Training” webinar or contact Rancho Mesa’s Client Services Department at (619) 438-6869.

California Workers’ Compensation Dual Wage Thresholds Increases Approved for Construction Classes in 2020 – Bottom Line Hit Hard

Originally published May 23, 2019.
Updated September 19, 2019.

Author, Sam Clayton, Vice President, Construction Group, Rancho Mesa Insurance Services, Inc.

In an effort to keep you informed, so you can begin budgeting for 2020, we want to let you know of the approved changes in the dual wage classifications effective January 1, 2020.

The increases range from $1.00 to $3.00 per hour, to keep the thresholds in line with inflation. However these changes will have an immediate effect on your bottom line. 

In the classes of business that are facing a $3 increase, this equates to a low of 9.3% to a high of 10.3%. See the chart below for the actual approved changes. Not only does this have an impact on wages, payroll taxes, and your bottom line, it may also have an impact on your workers compensation premiums. If you find yourself in a situation where the wage increase is not practical, this will push those employees into the under classification which will have a substantially higher workers compensation rate. In either case, proactive planning will be required so you’re not caught unprepared.

Following are the individual classes and approved changes:

Dual Wage Thresholds

Classification	Current Threshold	2020 Threshold	Threshold Difference	Last Changed
5027/5028 Masonry	$27	$28	$1	2013
5190/5140 Electrical	$32	$32	$0	2018
5183/5187 Plumbing/Heating/Refrigeration	$26	$28	$2	2014
5185-5186 Fire Sprinkler	$27	$29	$2	2009
5201-5205 Concrete or Cement Work	$25	$28	$3	2018
5403/5432 Carpentry	$32	$35	$3	2018
5446/5447 Wallboard Application	$34	$36	$2	2018
5467/5470 Glaizers	$32	$33	$1	2019
5474/5482 Painting/Waterproofing	$26	$28	$2	2018
5484/5485 Plastering or Stucco Work	$29	$32	$3	2018
5538/5542 Sheet Metal Work	$27	$27	$0	2014
5552/5553 Roofing	$25	$27	$2	2018
5632/5633 Steel Framing	$32	$35	$3	2018
6218/6220 Excavation/Grading	$31	$34	$3	2018
6307/6308 Sewer Construction	$31	$34	$3	2018
6315/6316 Water/Gas Mains	$31	$34	$3	2018

_{Table Source: WCIRB.com.}

In an effort to help control workers compensation costs, we have developed several proprietary programs including the RM365 Advantage Safety Star Program™ and RM365 StatTrac™ that can help control these increases. Please reach out to me at sclayton@ranchomesa.com to ask any questions about the above or to learn more about our proprietary programs.

Providing Anti-Harassment Training Is the Employer’s Responsibility

Editor’s Note: This article was originally published on August 22, 2019 and has been updated for accuracy on September 12, 2019.

Author, Alyssa Burely, Media Communications and Client Services Manager, Rancho Mesa Insurance Services, Inc.

Many industries like construction utilize a semi-transient workforce that can shift from company to company as labor needs change throughout the project’s life cycle. Employees may work a few months for one employer, then move on to another employer when the project is completed. This scenario poses a dilemma for California employers looking to comply with Senate Bill 1343 (SB 1343). Providing training to an ever-changing workforce can be a challenge.

“The current employer must provide the Anti-Harassment training to new employees within six months of hire, regardless if the employee was trained and has a certificate of completion provided by a previous employer or labor union.”

SB 1343 requires California employers with five or more employees to provide Anti-Harassment training to all supervisors and employees. The passing of Senate Bill 778, on August 30, 2019, extends the deadline for this training to January 1, 2021. The training must be completed every two years. For example, if an employee was trained in 2019, their next training due date will be in 2021. New employees must be trained within six months of hire. This means the current employer must provide the Anti-Harassment training to new employees within six months of hire, regardless if the employee was trained and has a certificate of completion provided by a previous employer or labor union. Every time a worker begins employment at a new company, they should expect to receive Anti-Harassment training within the first six months. However, temporary or seasonal workers who are hired for less than six months must be trained within 30 days of hire. This requirement ensures the current employer is able to maintain accurate training records.

Recordkeeping for Anti-Harassment training is important when there is an allegation of harassment or if an employee reports the employer for non-compliance. The Department of Fair Employment and Housing (DFEH) “accepts complaints from employees that their employers have not complied with the law…If DFEH finds that the law has been violated, it will work with employers to obtain compliance with the law,” according to the DFEH’s “Sexual Harassment and Abusive Conduct Prevention Training Information for Employers” document.

Rancho Mesa offers free online Anti-Harassment training for supervisors and employees to all of its clients. The training can be accessed from a computer, tablet or smartphone. The online platform provide automated recordkeeping and rescheduling to ensure as soon as an employee completes the training, they are automatically scheduled to complete it in two years. It also allows administrators to archive employee training records when an employee leaves the company and reactivate the records when/if they are rehired. To learn more about the trainings, visit our website or contact the client services department at (619) 438-6869.

SB 1343 requires employers take responsibility for providing Anti-Harassment training to all of their employees and supervisors. Take advantage of Rancho Mesa’s Anti-Harassment training and ensure your company stays compliant.

CAL/OSHA Emergency Rule Adopted for Wildfire Smoke

Author, Drew Garcia, Vice President, Landscape Group, Rancho Mesa Insurance Services, Inc.
Author, Steve Hamilton, Loss Control Supervisor, Berkshire Hathaway Homestate Companies.

On Thursday, July 17 2019, the California Occupational Safety & Health Standards Board voted to adopt an emergency standard requiring employers to take action when air quality particulate matter measures greater than 150 and when there is reasonable expectation that employees will come in to contact with wildfire smoke. 

While this may seem new to many employers, it is technically an extension of regulations currently in place including the respiratory protection standards for employees and the need to address identified hazards in the workplace. As an employer it is critical that you follow the hierarchy of controls to ensure your employees’ safety in the field. If possible, eliminate the hazard by shutting down the workforce for the day. Employees should remain indoors until particulate levels fall to acceptable. If this is not possible, try to limit the workday by rotating employees who must work outdoors, remaining cognizant of the hazards in the air and allowing employee’s time to recover in appropriate indoor areas. If neither of these options are possible, consider providing N95 respiratory protection masks. 

Please remember that any type of respiratory protection provided to employees must also be accompanied by applicable training, pulmonary exams, communication on proper usage/storage and others. Links to the applicable programs can be found at this address along with sites to help you monitor air quality: https://www.dir.ca.gov/dosh/Worker-Health-and-Safety-in-Wildfire-Regions.html

This site has additional training resources in English and Spanish, handouts on proper usage of N95 masks and the history of the standard as it has been submitted. Cal/OSHA wants you to have the resources you need to effectively address the risk potential.

At this point, the regulation is on its way to the Office of Administrative Law for approval and if deemed compliant, it will go into effect 10 days after it is received. This would mean the regulation could go into effect before August.

An advisory committee will meet August 27, 2019 to begin work on a permanent version of the regulation.

If you have any questions about ways to enhance regulatory compliance, please reach out to your local resources including your insurance agent, workers’ compensation insurance safety professionals, and Cal/OSHA Consultation.

Employers Prepare As Reports of Sexual Harassment Spike

Editor’s Note: This article was originally published on June 27, 2019 and has been updated for accuracy on September 12, 2019.

Author, Alyssa Burley, Media Communications and Client Services Manager, Rancho Mesa Insurance Services, Inc.

Americans are all too familiar with the #MeToo movement that has shed light on sexual harassment in the workplace. Outspoken celebrities and prominent public figures have brought this topic to the forefront in the media. With all the publicity surrounding sexual harassment allegations, people are empowered to speak out and report unwanted behaviors in the workplace. This leaves many employers asking what they can do to prevent harassment and prepare for possible harassment allegations.

Charges Alleging Sexual Harassment FY 2010 - FY 2018

EEOC. Charges Alleging Sexual Harassment FY 2010 - FY 2018.

The United States Equal Employment Opportunity Commission (EEOC) released its “Charges Alleging Sexual Harassment FY 2010 - FY 2018” report. The data shows from 2010 to 2017 reports of alleged sexual harassment incidents actually declined 15.7%, over the seven-year span. However, based on the data, it is difficult to know if incidents of sexual harassment declined or just the reporting of incidents declined.

However, during 2018 there was an increase of 13.6% in alleged sexual harassment incidents, which accounted for over 7,600 claims at a cost of $56.6 million dollars in damages.

Year	2010	2011	2012	2013	2014	2015	2016	2017	2018
Percentage Change Over Previous Year Number of Charges	NA 7,944	-1.4% 7,809	-3% 7,571	-4.2% 7,256	-5.7% 6,862	-0.6% 6,822	-0.9% 6,758	-0.9% 6,696	13.6% 7,609
Percentage Change Over Previous Year Damages (In Millions)	NA $41.2	9.5% $45.1	-4.7% $43	3.7% $44.6	-21.5% $35	31.4% $46	-11.5% $40.7	13.8% $46.3	22.2% $56.6

^{EEOC. Charges Alleging Sexual Harassment FY 2010 - FY 2018. https://www.eeoc.gov/eeoc/statistics/enforcement/sexual_harassment_new.cfm.}

California’s Senate Bill 1343 (SB 1343) now requires employers with 5 or more employees to provide 2-hour Anti-Harassment training to supervisors and 1-hour training to employees, every two years. As part of this new requirement, the initial training must be completed for all employees and supervisors by January 1, 2021, according to Senate Bill 778, approved on August 30, 2019, which extends the training due date. The changes made by SB 778 not only extends the due date to January 1, 2021, but also addresses concerns about supervisory employees and clarifies when temporary workers must be trained. Read about the changes here.

It’s our belief that as more people are trained to recognize harassment in its many forms, we expect to see the number of reported alleged harassment incidents increase in the coming years. So, what should California employers do to mitigate this increased risk?

Course of Action

For employers, the best course of action is two-fold. Make sure you are compliant by training your employees and supervisors; second, make sure you have Employment Practices Liability Insurance (EPLI) as part of your risk management portfolio.

Training Supervisors and Employees

Understanding the confusion, time and financial burden SB 1343 puts on all California employers, Rancho Mesa offers its clients SB 1343-compliant free online supervisor and employee Anti-Harassment training. Supervisor and employee trainings can be completed 100% online via a computer, tablet or mobile device.

California employers who are not clients of Rancho Mesa can find this training through 3rd party vendors that work in the Human Resource arena and will need to contract with them directly to meet this requirement.

Employment Practices Liability Insurance (EPLI)

EPLI is “a type of liability insurance covering wrongful acts arising from the employment process. The most frequent types of claims covered under such policies include: wrongful termination, discrimination, sexual harassment, and retaliation,” according to the International Risk Management Institute, Inc.

If your organization currently does not have EPLI, or you are unsure about what is covered in your policy, we recommend you contact your insurance broker or call us to get clarification. With the projected increase in these types of claims, not having this vital coverage in place could expose your company to severe negative financial impacts.

Whether the increase in reported alleged sexual harassment incidents is a result of more incidents or simply more people feeling comfortable reporting the harassment, every employer should be prepared to properly train their employees and supervisors, while actively working to prevent and stop all forms of harassment in the workplace.

Contact the Rancho Mesa Insurance Services Client Services Department at (619) 438-6869 or aburley@ranchomesa.com for more information about free anti-harassment training for supervisors and employees, or learn more through our other articles on the topic.

Alyssa Burley is NOT a licensed insurance professional. Informational statements regarding insurance coverage are for general description purposes only. Contact a licensed insurance professional for specific questions.