R&R Insurance Blog

Recently, the Equal Employment Opportunity Commission (EEOC) and U.S. Department of Justice (DOJ) each issued new technical assistance documents about how employers’ use of artificial intelligence (AI) and other software tools to make employment decisions may result in unlawful disability discrimination under the Americans with Disabilities Act (ADA).

Employers increasingly use software tools to help select new employees, monitor performance, determine pay or promotions, and administer or score tests. Without safeguards, this use may result in ADA violations.

The ADA requires employers with 15 or more employees to provide reasonable accommodations and have other processes in place to ensure that their software tools do not unfairly rate or screen out qualified individuals with disabilities.

EEOC Guidance

The EEOC’s new guidance focuses on the following three ways an employer’s use of software tools for employment decisions may violate the ADA:

• The employer does not provide a reasonable accommodation necessary for an individual to be rated fairly and accurately by the software;
• The software “screens out” an individual with a disability, even though the individual is able to do the job with a reasonable accommodation; and
• The software makes disability-related inquiries or includes medical examinations.

The EEOC also provides best practices to help employers avoid these violations.

DOJ Guidance

The DOJ’s new guidance provides a broad overview of rights and responsibilities under the ADA. It also provides examples of the types of software tools employers use, clarifies that employers must consider various disabilities when designing or choosing their software, and explains when an employer must provide a reasonable accommodation when using software tools.

Employer Takeaway

Several factors have led these agencies to address this topic. One is the ongoing unemployment challenge for workers with disabilities. The Bureau of Labor Statistics’ April data revealed a labor force participation rate of 23.1% for people with a disability, compared with 67.5% for those without. Employers should review this guidance and assess their employment technology and processes to ensure they are not at risk for ADA violations.

You can read the EEOC’s new guidance here and the DOJ’s new guidance here.

Source: Zywave, Inc.

May is Mental Health Awareness Month. Mental Health continues to be a popular topic and top concern for workplaces in 2022. Over 30% of employers have added new mental health benefits within the past year, according to McKinsey and Company. Surprisingly, despite the increased efforts, nearly 25% of employees still do not feel supported when it comes to their mental health.

"40% of U.S. adults said they have struggled with mental health or substance abuse during the pandemic."

With all of this in mind, employers need to evaluate their mental health strategies and consider how they can best help maximize their employees' overall well-being. To get a jump-start on this, employers can consider these five trends for 2022 that may influence employees' mental health.

1. More Mental Health Programs
2. Increased Scheduling Flexibility
3. Expanded Virtual Doctor Visits
4. Greater Mental Health Education
5. Improved Focus on Individuals

Mental health is a serious concern for employees and their employers. Not addressing mental health issues can result to a host of other problems down the road, including burnout and depression. For more in-depth information on implementing the five trends listed above, click here. We have also included a few additional resources below.

5 Ways to Support Your Employee's Mental Health [blog]

Wellness Mental Health Resources –  Train Your Brain Into Positive Self-Talk [blog]

Effects of Stress on the Body [interactive flyer]

On April 29, 2022, the IRS released Revenue Procedure 2022-24 to provide the inflation-adjusted limits for health savings accounts (HSAs) and high deductible health plans (HDHPs) for 2023. The IRS is required to publish these limits by June 1 of each year.

These limits include:

• The maximum HSA contribution limit;
• The minimum deductible amount for HDHPs; and
• The maximum out-of-pocket expense limit for HDHPs.

Eligible individuals with self-only HDHP coverage will be able to contribute $3,850 to their HSAs for 2023, up from $3,650 for 2022. Eligible individuals with family HDHP coverage will be able to contribute $7,750 to their HSAs for 2023, up from $7,300 for 2022. Individuals who are age 55 or older are permitted to make an additional $1,000 “catch-up” contribution to their HSAs.

The minimum deductible amount for HDHPs increases to $1,500 for self-only coverage and $3,000 for family coverage for 2023 (up from $1,400 for self-only coverage and $2,800 for family coverage for 2022). The HDHP maximum out-of-pocket expense limit increases to $7,500 for self-only coverage and $15,000 for family coverage for 2023 (up from $7,050 for self-only coverage and $14,100 for family coverage for 2022).

You can download our convenient chart here: HSA HDHP Limits Increase for 2023

Employers that sponsor HDHPs should review their plan's cost-sharing limits (minimum deductibles and maximum out-of-pocket expense limit) when preparing for the plan year beginning in 2023. Also, employers that allow employees to make pre-tax HSA contributions should update their plan communications for the increased contribution limits.

National Financial Literacy Month is celebrated in April. This is a great opportunity to promote financial wellness to employees, since it is often a neglected well-being component.

Did you know 1 in 4 employees say that stressing about finances is a major distraction at work?

In addition, 7 out of 10 employees say financial stress is their most common stress. Developing and establishing workplace financial wellness will have key benefits for everyone.

You will attracted and keep talented employees, you have a better chance to lower health cost and employees will have increased productivity and will be better prepared for a rainy day. Retirement will not be a daunting thing but rather something employees have to look forward to as well.

How are you currently addressing financial wellness in your workplace?

Are you giving employees the nudge they need with auto-enrollment, keeping the number of investment choices simple, mobile access, recognizing language barriers, along with additional plan add-ons? Unfortunately, this is a topic that cannot be addressed only once a year for employees to really benefit. Consider how else you can add this topic to your well-being program.

Food and fun are often components that encourage employees to participate. Consider this Financial Wellness Challenge created by our Health & Wellness Consultant.

For more information on financial wellness, contact a Knowledge Broker today.

March is National Nutrition Month. There are so many components that go into nutrition, but for the purpose of this blog, we will be focusing on family budget tips to feed your family and yourself.

When visiting the grocery store, you may feel extremely overwhelmed. There are numerous tactics that go into how grocery stores are laid out because they want to entice their customers with impulse purchases. If you are sticking to a budget, you want to make sure to follow the below tips and tricks to stay on track.

Lookout for Expensive Items

• Meat can often be a big ticket item—substitute with plant-based alternatives from time-to-time to decrease spending
• Avoid convenience foods such as pre cut vegetables, fruit, or even single-serve packets—they rack up the prices due to convenience but you can simply create them on your own
• Avoid produce that is not in season

Experience the Savings

• Keep an eye on specials and incorporate them into your weekly menu
• Canned and frozen options have reasonable prices and make a great staple
• Cook weekly and meal prep instead of visiting fast food places or restaurants

Have a method

• To save money at the store, be intentional with your grocery list and meals for the week, etc.
• You need to be organized and stick to the list without being vulnerable to the impulse buys
• Don't forget not to waste food either by purchasing too much

Meal Prep Saves the Day

• Always check your food options in your house before making your grocery list
• Practice the "first-in-first-out" food rule to avoid waste
• Create menus for lunches and dinners that incorporate overlapping ingredients

Overall, it is not as complicated as one may think to meal prep and save money at the grocery store. While you have to be organized and determined, it is worth the savings!

For more detailed information, visit eatright.org

As risks change, manufacturers change their insurance purchasing habits.

Supply chain disruption, labor shortages, a global pandemic, state sponsored hacking. These shifting concerns over the last two years have contributed to an aggregate trend of manufacturers choosing to insure more risks than prior to COVID-19. Monitoring these purchasing changes along with rate differences was the focus of a newly released 2022 Benchmarking study by Assurex Global.

The 2022 Manufacturing Benchmark Report surveyed over 1,200 manufacturers of varying sizes and industries representing over $79 billion of revenue and 92,000 employees. Assurex Global is the world’s largest privately held insurance brokerage group of which R&R Insurance is a proud member. 

A summary of the report’s key findings can be found here while some notable trends from the full 79-page report are posted below. Request the full report here.

Manufacturers are buying more excess liability insurance policies, especially Cyber

Assurex analyzed data on over 800 manufacturers in 2020 and over 1,200 in 2022. Some of the most striking differences between the reports is how many of these firms carried standalone excess liability policies on certain lines. The results show an increase in excess liability purchases across the board, but especially in cyber.

Cyber risk is becoming obvious to the Manufacturing Industry. There is a sizable 20-point pickup in standalone Cyber insurance policies compared to Assurex’s 2020 Manufacturing Benchmark Report.

Other excess liability insurance policies are being picked up at a greater rate by manufacturing business, though not to the same degree as cyber. Most surprising to Assurex was that despite increasing supply chain disruption, International insurance only picked up a few points compared to 2020.

Small Manufacturers are Paying Much Higher Liability and Property Rates than Large Manufacturers

With tangible goods it's generally cheaper to buy in bulk, but when buying an intangible insurance policy does the same principle apply? Even though the level of risk doesn’t change it’s surprising to see such a large gap in liability and property rates between small and large firms. Small manufacturers are paying dramatically higher rates than larger firms.

The reason for the difference likely has to do with larger firms taking on higher deductibles to achieve lower rates. This is especially noticeable in property (see image below). Never the less, a doubling of rates at just about every level of account size measured is still a greater difference than what many experts might suspect, including Assurex.

Larger Organizations Tend to Purchase Significantly Higher Excess Liability Limits than Smaller Ones

It isn't that surprising to see a direct relationship between revenue and the propensity to purchase greater excess liability limits (umbrella policies). The greater the revenue of a manufacturer, the larger their excess liability limits they tend to purchase. 

While the trend does seem predictable there is an area of concern. Though a minority, there are a disturbing number of manufactures with more than $40 million in revenue only purchasing $5 million or less in excess liability limits. In an increasingly litigious society, this seems incredibly risky - yet 19% of $100M+ manufacturers and 29% of $40M-$99.9M manufacturers are in this category.

Further Breakdowns Available In The Full Report

Click here to find the full 79-page Assurex Global 2022 Manufacturing Benchmark.

The report details further additional excess lines such as D&O Insurance, Auto liability and Employee Benefit trends. Industry break down also is detailed for Furniture/Wood Product Manufacturing, Metal Manufacturing, and Machining/Equipment Manufacturing.

Insurance purchasing is a complex decision for any business. With the pace of new business risks emerging it is becoming more important than ever to have the right data on hand when making insurance spend decisions. Click here to see a list of R&R Insurance Consultants specialized in the manufacturing space and ready to answer the growing number of questions in today's dynamic landscape.

Each February, awareness around heart disease occurs. The goal is to urge our population to reduce risk factors associated with developing cardiovascular disease because it remains the number one killer of both men and women.

In fact, according to the American Heart Association, every 80 seconds, one woman is killed by heart disease or stroke—which is more than all forms of cancers combined.

Individuals need to make their heart health a priority. Scheduling a visit with a healthcare provider for a preventive check-up, measuring blood pressure, checking cholesterol and looking for all signs of illness are all vital components.

There are dozens of ways to spread awareness around heart disease to your employees but, please consider these two:

• Risk of Heart Disease Quiz
• Heart Disease Infographic

Let's begin to have the conversations about just how important heart health is.

It is officially the New Year! Maybe you are an individual who has chosen to make specific New Year’s resolution(s). That is fantastic that you want to attempt to make a change; however, you do not need to wait until the New Year because resolutions made at that time have a higher chance of failure.

Approximately 156 million people will give up on their resolution in the New Year.

Why do New Year's Resolutions Fail?

• Lack of determination
• Setting a goal for an unrealistic outcome
• Not planning ahead—making the resolution on a whim
• Being too critical
• Having an all or nothing mentality
• Having the goal last too long
• Not tracking progress
• Missing the benefits of the process

Overall, most New Year’s resolution goals are not thought out, properly, which means there is a higher chance of failing. If you really want to make a change, do not feel forced to set that intention at the New Year, but rather enjoy the process when you want to.

Remember, to set an appropriate goal it should follow the Specific, Measurable, Attainable, Realistic, Time Sensitive (SMART) objective. That way there is a goal with a realistic timeframe and path to progression, which will lead to a higher success rate of achievement.

Happy New Year!

The Occupational Safety and Health Administration's (OSHA's) vaccine-or-testing Emergency Temporary Standard (ETS) is back on again. 

On Friday, December 17^th, the Sixth Circuit Court of Appeals lifted the stay of OSHA's emergency temporary standard (ETS) requiring private sector employers with at least 100 employees to ensure workers are either vaccinated or tested weekly and wear masks. With the stay lifted, employers must comply with the requirements outlined in the ETS.

Click here to download R&R Insurance's summary of reinstatement with important dates for employers.

In response, OSHA stated that it “will not issue citations for noncompliance with any requirements of the ETS before January 10 and will not issue citations for noncompliance with the standard’s testing requirements before February 9, so long as an employer is exercising reasonable, good faith efforts to come into compliance with the standard. OSHA will work closely with the regulated community to provide compliance assistance.” 

KEY TAKEAWAY ON THIS CHANGE: Affected employers now have until January 10^th, 2022 to comply with the requirements that were initially slated to begin on December 6^th, 2021. Also, weekly testing requirements for unvaccinated employees with an original deadline of January 4^th, 2022 is now delayed until February 9^th, 2022.

ETS opponents have already filed an appeal with the U.S. Supreme Court challenging the Sixth Circuit’s decision. R&R will continue to monitor developments and provide you with updates and resources that pertain to these compliance requirements as they occur. For more information and resources, click here to navigate to our dedicated OSHA Vaccine Mandate Compliance webpage.

Click here to view the full Sixth Circuit Court of Appeals opinion to dissolve the stay order as well the dissenting opinion.

Thanksgiving has officially come and gone. The holiday is typically a time where we reflect on things in our life we are grateful for. However, why should we limit gratitude to just one day? Let’s keep it going past the holiday season because gratitude has specific health benefits and effects—that those around us and ourselves included need.

The power of positive thinking can be make such a difference. A research study indicated that a group was instructed to write five things they were grateful for once a week. After ten consecutive weeks, the experiment showed that the individuals also increased their daily exercise time and were more likely to attend regular health check-ups than those who did not participate in the journal reflection.

What are ways you can bring gratitude to your life past the holiday season? We’ve listed some options below:

• Utilize a gratitude journal
• Practice meditation
• Write or verbalize three things you’re grateful for each night
• Smile more often
• Notice nature’s beauty
• Post positive quotes or images
• Focus on your strengths
• Volunteer

It is important to remember that reflecting on gratitude can be big or little things. Whatever it is, allow yourself a moment to enjoy the positive experience despite any negative feelings. You can’t escape stress, but you can shift your perspective.

Happy Holidays!