Passenger vans—which typically have an occupancy of between nine and 15 people—are used by many organizations to transport a wide range of passengers. Some of those passengers require the use of a wheelchair. Wheelchairs can either be stored as cargo when not in use or used as a seat during transport. There are many safety considerations and best practices to be aware of for those who are in charge of the loading, unloading and securement of wheelchairs and their occupants in passenger vans. Find out how your business can implement wheelchair safety for passenger vans.
These best practices are especially important when a passenger is using a wheelchair as a seat in the vehicle. As such, employees should be trained on working with different types of wheelchairs as seats in the vehicle, securing occupants in those seats and securing the wheelchair as cargo when it is not in use.
Loading and Unloading A Wheelchair Safely
Employees must be trained on how to use the proper equipment to board wheelchairs in passenger vans. This includes understanding how the lift works, operation of the lift and how to position the wheelchair on the lift. If the vehicle uses a different method—like a ramp for loading and unloading—then employees should be trained in using that particular setup. Your employees should follow these wheelchair safety tips.
Generally, an employee should face the rear of the wheelchair toward the vehicle while operating the lift. However, the best practice is to follow the manufacturer’s guidance regarding lift instructions. Another reason to position the rear of the chair toward the vehicle is to keep the weight of the wheelchair closer to the vehicle, which makes the occupant feel more secure and distributes the weight evenly. This position also reduces the risk of pinching or crushing of the occupant’s feet or the chair’s footrests between the vehicle and the lift. In addition, if the wheelchair was rear-facing when loaded, the wheelchair can simply be pushed out from the van during unloading. This requires significantly less maneuvering during the unloading process.
When loading or unloading, the wheelchair brakes should be engaged to prevent the chair from rolling off the platform when the lift is in motion. In the case of powered wheelchairs, the power should be turned off to prevent any issues before operating the lift.
Employees should also make sure that the lift gate is level with the ground before loading a wheelchair onto the lift. This will prevent the wheelchair from rolling prior to locking the brakes on the chair. Employees should ensure that any stops are utilized to prevent rolling issues. If a passenger has a motorized wheelchair, they should not be permitted to drive onto the lift. Rather, someone else should position the wheelchair appropriately on the lift.
If wheelchairs are being used as seats in passenger vehicles, voluntary industry standards should be followed to provide the safest environment for occupants. Employers should follow the American National Standards Institute and the Rehabilitation Engineering and Assistive Technology Society of North America (ANSI/RESNA) standard WC 19.
Employee Safetyand Wheelchair Safety
Another important safety practice to keep in mind is to make sure employees know how to properly operate the lift to protect themselves from any pinching or crushing injuries. That being said, employers must train their employees on the use of the different lifts for their vehicles.
Specifically, when operating the lift, employees should make sure the occupant keeps their arms and legs within the area of the lift. This prevents any injuries occurring from any moving parts of the lift.
If a lift is not available for loading wheelchairs, then it is recommended that two people are used to load the chair. Depending on the circumstances, an employer should ensure there are two people available or provide the employee driving the passenger van with a vehicle that has a lift. These practices will help protect employees from injury.
Wheelchair Safety and Securement
Under Department of Transportation (DOT) and Americans with Disability Act (ADA) regulations, all ADA-compliant passenger vans are required to have a two-part securement system to provide to users. The first part of the system should secure the wheelchair (by using the four-point securement method), while the other should provide a seat belt and shoulder harness to secure the wheelchair user. When employees are strapping down the wheelchair, they should always refer to the equipment’s manufacturer instructions to determine whether there are any special requirements for the wheelchair. More often than not, however, the same securement methods can be used for various types of wheelchairs.
Employers should also follow all best practices for securing wheelchairs under ANSI/RESNA. Specifically, ANSI/RESNA WC 18 and WC19 provide employers with standards to follow when wheelchairs are used as seats in motor vehicles, as well as standards to follow regarding wheelchair tie-downs and occupant restraint systems.
Such standards include information on a wide range of wheelchair types and styles. The standard recommends a four-point securement method with strap-type tie-down systems and belt-type occupant restraints. This securement system includes straps to secure the wheelchair and straps to be used for a seat belt and shoulder harness for the wheelchair user. Further, keep in mind that employees should secure the wheelchair by using straps that are directly attached to the floor.
These straps should not be attached to any removable or moving part of the wheelchair. When strapping down a wheelchair with an occupant, employees should make sure the occupant is facing forward in the vehicle, as that is the safest position. According to the ADA, facing wheelchairs to the rear of the vehicle is not permitted in vehicles that weigh under 30,000 pounds, as this can potentially lead to more injuries for the wheelchair occupant. Facing a wheelchair to the side in the vehicle is also not recommended. To secure a wheelchair using the four-point securement method, employees should make sure there are two points in the front that are secured and two in the back. It is very important to properly secure the wheelchair to prevent any risk of the chair moving during a hard stop or an accident.
Straps used to tie down wheelchairs should be rated for securing wheelchairs. They should never be crossed or twisted. Inspections should be completed on the straps prior to each use to ensure they are not frayed and are in good working order.
If a wheelchair is being stored as cargo in a vehicle and not being used as a seat, then it should be stored in a spot within the vehicle where it cannot move during transportation. If that is not the case, then the wheelchair, if possible, should be folded and secured within the vehicle. If the wheelchair cannot be folded, then it should be secured like it would if there were an occupant in it.
Wheelchair Safety andOccupant Restraints
The occupant must be secured in the wheelchair in case of an accident. A seat belt will prevent the occupant from being ejected from the chair, protecting them from additional injury. In regard to seat belts, employers should train employees on the best practices for using occupant restraints under the ANSI/RESNA standards in section WC 18.
The seat belt should not go over the armrests or any devices on the wheelchair. All restraints should be used properly. If not, the restraints will not help keep the occupant in place during an accident and could also cause further injuries. Employees should recognize that there will be different positions for different occupants due to the occupant’s height and weight, as well as the type of chair. Failure to restrain a wheelchair properly can cause injury to the occupant.
Lastly, ongoing training is important for employees to make sure that proper care is taken while transporting passengers who require wheelchairs. Not only does training reduce the risk of injury to both the employee and chair occupant, but it also prevents employer liabilities stemming from not properly accommodating those with disabilities under the ADA or other relevant regulations.
For more risk management guidance, contact GDI Insurance Agency, Inc. today.
California’s Leader in Insurance and Risk Management
As one of the fastest-growing agencies in California, GDI Insurance Agency, Inc. is able to provide its clients with the latest and greatest of what the insurance industry has to offer and much, much more. The GDI team has developed an “insurance cost reduction” quoting plan, that provides you with the best coverage at the best rate!
We are headquartered in Turlock, CA, with locations across the heart of California’s Central Valley, Northern California and beyond to provide a local feel to the solutions and services we provide our clients. We pride ourselves on exceeding our client’s expectations in every interaction to make sure that our client’s know how much we value and appreciate their business.
Contact us today 1-209-634-2929 for your comprehensive insurance quote!
The U.S. Department of Treasury and the U.S. Small Business Administration (SBA) have announced that beginning Monday, Jan. 11, applications will be accepted for the second round of PPP loans in the SBA’s Payment Protection Program (PPP). This second round includes $284 billion in funding that was allocated for the PPP in the stimulus bill passed on Dec. 27, 2020. This round of funding will run through March 31, 2021.
The second round of PPP loans provides eligibility to new borrowers and certain existing PPP borrowers. As eligibility opens up, small businesses and lenders should prepare to adhere to the new requirements detailed below.
Second Round of PPP Loans Application Schedule
Monday, Jan. 11, marks the opening of the portal. Initially, the portal will only be open to borrowers applying for their first PPP loan (known as “First Draw PPP Loans”) through “community financial institutions.” These “community financial institutions” are lenders that serve minority, underserved, veteran and women-owned businesses.
On Wednesday, Jan. 13, borrowers applying for a second PPP Loan (known as “Second Draw PPP Loans”) also become eligible. Again, the SBA will only accept applications from lenders designated a “community financial institution.”
The PPP will open to all participating lenders “shortly thereafter,” according to the announcement. The SBA has yet to announce a specific date.
Information About the Second Round of PPP Loans
For the most part, the rules for this round are very similar to the initial round of PPP loans. However, there are updates to the first round of funding. According to the Treasury, key PPP updates include:
PPP borrowers can set their PPP loan’s covered period to be any length between eight and 24 weeks to best meet their business needs;
PPP loans will cover additional expenses, including operations expenditures, property damage costs, supplier costs and worker protection expenditures;
The program’s eligibility is expanded to include 501(c)(6)s, housing cooperatives and direct marketing organizations, among other types of organizations;
The PPP provides greater flexibility for seasonal employees;
Certain existing PPP borrowers can request to modify their First Draw PPP Loan amount; and
Certain existing PPP borrowers are now eligible to apply for a Second Draw PPP Loan.
A borrower is generally eligible for a Second Draw PPP Loan if the borrower:
Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses;
Has no more than 300 employees; and
Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.
For more specifics about the second round of PPP funding, the SBA has provided additional details.
What’s Next?
Borrowers should review the criteria for this second round of PPP loans. Borrowers considering applying should prepare and have on hand all relevant documentation. Lastly, borrowers should direct any questions regarding PPP loans to their lender.
We will continue to monitor any additional developments regarding the PPP and deliver updates as necessary. For more information about the PPP, contact GDI Insurance Agency, Inc.
California’s Leader in Insurance and Risk Management
As one of the fastest-growing agencies in California, GDI Insurance Agency, Inc. is able to provide its clients with the latest and greatest of what the insurance industry has to offer and much, much more. The GDI team has developed an “insurance cost reduction” quoting plan, that provides you with the best coverage at the best rate!
We are headquartered in Turlock, CA, with locations across the heart of California’s Central Valley, Northern California and beyond to provide a local feel to the solutions and services we provide our clients. We pride ourselves on exceeding our client’s expectations in every interaction to make sure that our client’s know how much we value and appreciate their business.
Terrorism Risk Insurance and What You Need To Know
Terrorism has become an unfortunate fact of life. From the Nashville Christmas bombing, the Pittsburgh synagogue shooting to the Sandy Hook Elementary School tragedy to the Las Vegas Strip concert massacre, the news is filled with headlines related to acts of terrorism or thwarted attempts. These types of tragic events are changing how business owners are protecting their interests. You may want to consider a Terrorism Risk Insurance policy to protect your business.
“Commercial Property Insurance policies often contain exclusions for acts of terrorism,” said Carolyn Reiter, Associate Vice President, Global Excess Partners, New York, New York. “If the FBI determines the Nashville incident is an act of terrorism, those impacted may be denied coverage through their current Commercial Property Insurance policies.”
Domestic and Foreign Terrorism
Terrorism differs from other catastrophes because it is not an aspect of weather or nature. However, it shares the same problem of insurability with its natural peers. There are two distinct types of terrorism: domestic and foreign. Domestic terrorism involves terrorist acts (or plans) by citizens of the same country where the act is committed. The reason for the act (or planned act) generally involves some domestic political agenda.
Foreign terrorism involves acts of individuals from one (or more countries) who wish to disrupt the lives of another country’s citizens in order to advance a particular cause.
The Real Risk to Your Business
The perpetrators of terrorist attacks and the methods they use continue to shift and relatively unprotected targets are becoming a greater focal point. Property damage and bodily injury are the primary risks associated with terrorism, yet there are liability factors that you should consider to best safeguard your business, including:
Business interruption loss
Fiduciary liability for corporate directors and officers
Pollution loss and liability
Privacy and network security liability
At least 45 businesses were damaged in the Christmas Day bombing in Nashville, Tennessee that decimated a block of downtown buildings. Local police and the Federal Bureau of Investigation (FBI) are still investigating why a 63-year-old Nashville area information technology consultant set off the explosion in his RV, killing himself and causing widespread destruction.
The bomb was detonated near an AT&T telecommunications hub, temporarily freezing mobile and internet systems in five states. As affected business owners assess the damage to their properties, they are also questioning whether their insurance policies will cover the repairs. If it is classified as terrorism, property owners without appropriate insurance coverage worry they may have to pay out of pocket for the damage.
Types of Terrorism Risk Insurance Solutions
Domestic terrorism coverage is available in traditional policies and stand-alone terrorism risk insurance. Traditional policies, including commercial general liability and property policies, may provide some coverage for terrorism risk if not expressly excluded.
Workers’ compensation insurance is another traditional policy that may provide some form of terrorism coverage. Unlike property and casualty policies, workers’ compensation policies will not have terrorism (or war) exclusions.
You may also consider purchasing stand-alone terrorism coverage. Stand-alone policies typically exclude:
Political risks, including loss resulting from strikes, riots, civil commotion, rebellion, revolution, war and insurrection
Cyber-related loss and liability
Nuclear, biological, chemical and radiological hazards, like anthrax
Terrorism Insurance coverage is available through a standalone policy or the federally-backed Terrorism Risk Insurance Program (TRIP),1 authorized by the Terrorism Risk Insurance Act of 2002 (TRIA) in the wake of the September 11, 2001 attacks and extended through 2027 by the Terrorism Risk Insurance Program Reauthorization Act of 2019 (TRIPRA). Nevertheless, many business owners have no Terrorism Insurance coverage at all, leaving them vulnerable at a time when terrorism is an escalating concern and businesses are already struggling to survive in a pandemic-induced recession.
Many times people believe that if they aren’t right next to something like an NBA arena or a National Monument that they don’t need it. But in the case of the AT&T building in Turlock, that could have impacted nearly 1/4 – 1/3 of our downtown.
Stand-alone Terrorism Risk Insurance Coverage
Terrorism Insurance can be purchased as a standalone policy—without a minimum loss requirement. Such policies include broader definitions of acts of terrorism that do not require government certification, Reiter said.
If you opt for stand-alone coverage, selecting the policy with the best terms involves more than just ensuring coverage extends beyond “certified acts of terrorism.” Valuation terms in stand-alone terrorism policies should be carefully reviewed to ensure you are appropriately compensated for loss and damage, even when actual repair or replacement isn’t possible or ideal.
It’s also important that specific terms are well defined, such as what constitutes an “occurrence” and how the number of occurrences associated with a given claim will be determined.
Coverage under a standalone Terrorism Insurance policy can also include loss of business income such as could occur during a forced closure due to property damage or to allow a criminal or forensic investigation to take place. Terrorism Liability Insurance is another important consideration, providing coverage for bodily injuries or deaths that may occur on a business’ premises due to terrorism.
A standalone Terrorism Insurance policy could mean a faster recovery for business owners in the aftermath of a terror attack, Reiter said. “There is typically a significant lag time to process claims and issue payments under a government-backed program, especially compared to a general insurance claims transaction,” she explained. “Coverage under a standalone Terrorism Insurance policy could help a business start recovering from an attack much sooner.”
Other Policy Terms to Consider
Traditional policies or stand-alone terrorism risk insurance generally will include these terms:
Sue and labor. What property is reasonable to protect, recover or save after a general casualty loss may differ from what is appropriate following an act of terrorism. Avoid disputes by tailoring language in “sue and labor” provisions accordingly.
Expediting expenses. After an event, you want to be able to return to “business as usual” as quickly as possible. However, the costs incurred to sustain operations or expedite repairs in the wake of a terrorism incident may vary considerably from any other casualty loss. It may be appropriate to expand terms beyond “reasonable and necessary” costs to include security or healthcare-related expenses.
Increased construction cost. A terrorism incident may prompt legislative or other practical requirements that may increase the cost of demolition and compliant repair.
Pollution exclusion. The “act of terrorism” may prompt the release of hazardous substances — increasing the cost of the claim. Policies should not exclude the cost associated with a release of “pollutants” that is an indirect result of an otherwise covered “act of terrorism.”
For more clarity on how to protect your business from exposure to terrorism risk, reach out to your insurance professional and review the type of insurance coverage and policy terms that are right for your business.
California’s Leader in Insurance and Risk Management
As one of the fastest-growing agencies in California, GDI Insurance Agency, Inc. is able to provide its clients with the latest and greatest of what the insurance industry has to offer and much, much more. The GDI team has developed an “insurance cost reduction” quoting plan, that provides you with the best coverage at the best rate!
We are headquartered in Turlock, CA, with locations across the heart of California’s Central Valley, Northern California and beyond to provide a local feel to the solutions and services we provide our clients. We pride ourselves on exceeding our client’s expectations in every interaction to make sure that our client’s know how much we value and appreciate their business.
With the enormous amount of sensitive information stored digitally, companies need to take the proper measures to ensure this data is never compromised. Ultimately, it is the responsibility of business owners to protect their clients’ data with privacy and cyber security.
Failing to do so can result in a data breach, which costs companies billions of dollars every year. Understanding the risks involved with data security can help you prevent a privacy breach.
Know the Privacy and Cyber Security Risks
The first step in protecting your business is to recognize basic types of risk:
Hackers, attackers and intruders—These terms are applied to people who seek to exploit weaknesses in software and computer systems for their personal gain. Although their intentions are sometimes benign, their actions are typically in violation of the intended use of the systems that they are exploiting. The results of this cyber risk can range from minimal mischief (creating a virus with no negative impact) to malicious activity (stealing or altering a client’s information).
Malicious code—This is the term used to describe any code in any part of a software system or script that is intended to cause undesired effects, security breaches or damage to a system.
Viruses: This type of code requires that you actually do something before it infects your system, such as open an email attachment or go to a particular Web page.
Worms: This code propagates systems without user interventions. They typically start by exploiting a software flaw. Then, once the victim’s computer is infected, the worm will attempt to find and infect other computers.
Trojan horses: Trojans hide in otherwise harmless programs on a computer, and much like the Greek story, release themselves when you’re not expecting it and cause a lot of damage. For example, a program that claims to speed up your computer system but actually sends confidential information to a remote intruder is a popular type of Trojan.
IT Risk Management Practices
To reduce your cyber risks, it is wise to develop an IT Risk Management Plan at your organization. Risk management solutions utilize industry standards and best practices to assess hazards from unauthorized access, use, disclosure, disruption, modification or destruction of your organization’s information systems.
Consider the following when implementing risk management strategies at your organization:
Create a formal, documented risk management plan that addresses the scope, roles, responsibilities, compliance criteria and methodology for performing cyber risk assessments. This plan should include a characterization of all systems used at the organization based on their function, the data stored and processed and importance to the organization.
Review the cyber risk plan on an annual basis and update it whenever there are significant changes to your information systems, the facilities where systems are stored or other conditions that may affect the impact of risk to the organization.
Due Diligence When Selecting an ISP
In addition, your organization should take precautionary measures when selecting an internet service provider (ISP) for use for company business.
An ISP provides its customers with Internet access and other Web services. In addition, the company usually maintains Web servers, and most ISPs offer Web hosting capabilities. With this luxury, many companies perform backups of emails and files, and may implement firewalls to block some incoming traffic.
To select an ISP that will reduce your cyber risks, consider the following:
Security – Is the ISP concerned with security? Does it use encryption and SSL to protect any information that you submit?
Privacy – Does the ISP have a published privacy policy? Are you comfortable with who has access to your information, and how it is handled and used?
Services – Does your ISP offer the services that you want and do they meet your organization’s needs? Is there adequate support for the services provided?
Cost – Are the ISP’s costs affordable and are they reasonable for the number of services that you receive? Are you sacrificing quality and security to get a lower price?
Reliability – Are the services provided by the ISP reliable, or are they frequently unavailable due to maintenance, security problems and a high volume of users? If the ISP knows that their services will be unavailable, does it adequately communicate that information to its customers?
User supports – Are there any published methods for contacting customer service, and do you receive prompt and friendly service? Do their hours of availability accommodate your company’s needs?
Speed – How fast is your ISP’s connection, and is it sufficient for accessing your email or navigating the Web?
Recommendations – What have you heard from industry peers about the ISP? Were they trusted sources? Does the ISP serve your geographic area?
Government Regulation
There aren’t many federal regulations regarding cyber security, but the few that exist cover specific industries. The 1996 Health Insurance Portability and Accountability Act (HIPAA), the 1999 Gramm-Leach-Bliley (GLB) Act and the 2002 Homeland Security Act, which includes the Federal Information Security Management Act (FISMA) mandate that health care organizations, financial institutions and federal agencies, respectively, protect their computer systems and information. Language is often vague in these laws, which is why individual states have attempted to create more specific laws on cyber security.
California led the way in 2003 by mandating that any company that suffers a data breach must notify its customers of the details of the breach. Currently, all 50 states and the District of Columbia have data breach notification laws in place.
Protection is our Business
Your clients expect you to take proper care of their sensitive information. You can never see a data breach coming, but you can always plan for a potential breach. Contact GDI Insurance Agency, Inc. today—we have the tools necessary to ensure you have the proper coverage to protect your company against a data breach.
California’s Leader in Insurance and Risk Management
As one of the fastest-growing agencies in California, GDI Insurance Agency, Inc. is able to provide its clients with the latest and greatest of what the insurance industry has to offer and much, much more. The GDI team has developed an “insurance cost reduction” quoting plan, that provides you with the best coverage at the best rate!
We are headquartered in Turlock, CA, with locations across the heart of California’s Central Valley, Northern California and beyond to provide a local feel to the solutions and services we provide our clients. We pride ourselves on exceeding our client’s expectations in every interaction to make sure that our client’s know how much we value and appreciate their business.
Employment Practices Liability Trends to Watch in 2021
As an employer, you care about making your workforce feel valued and managing your organization successfully. However, even if you do everything you can to ensure smooth relationships with your staff, employment practices liability (EPL) risks remain. That’s why it’s crucial for your organization to have EPL coverage. Such a policy can offer protection for claims that result from employees alleging various employment-related issues—such as discrimination, harassment and wrongful termination. Apart from securing EPL coverage, it’s important to stay up to date on the latest Employment Practices Liability trends. In doing so, your organization will have the information needed to respond appropriately and make any necessary coverage adjustments. Don’t let your organization fall behind in this evolving risk landscape. Review this guidance to learn more about EPL trends to watch in 2021.
The COVID-19 PandemicandEmployment Practices Liability Trends
The ongoing COVID-19 pandemic has forced many organizations to make serious workplace changes—such as having employees work remotely, adjusting office setups or conducting significant staff layoffs or furloughs. And with these changes, EPL claims followed. Some of the most common, pandemic-related EPL claims include:
Allegations that unsafe working conditions or minimal precautionary measures (e.g., poor sanitation practices, a lack of social distancing protocols or inadequate personal protective equipment) contributed to employees getting sick or dying from COVID-19
Allegations of retaliation after an objection to unsafe working conditions or workplace exposure to individuals displaying COVID-19 symptoms
Allegations of disability discrimination related to remote working (e.g., failing to accommodate remote staff or denying employees the option to work remotely)
Allegations related to employee leave concerns (e.g., forcing staff to take leave, retaliating against employees that take leave due to COVID-19 or not allowing staff to take leave due to COVID-19 altogether)
Allegations of laying off or furloughing staff without providing proper employment notices
Allegations of discrimination related to laying off or furloughing employees
With these trends in mind, it’s crucial to fully document and review any organizational changes created by the COVID-19 pandemic. These changes should be reviewed to ensure they adequately consider the needs of your workforce and are compliant with employment law.
Social Movements
Several social movements have led to an increase in Employment Practices Liability trends and claims in recent years, including the #MeToo movement and the Black Lives Matter movement.
The #MeToo movement—which is an anti-sexual harassment campaign that was originally founded in 2006 and has gained significant social media attention since 2017—largely contributed to a 50% rise in sexual harassment lawsuits against employers over the past few years, according to the U.S. Equal Employment Opportunity Commission (EEOC). This movement emphasizes how important it is for employers to implement effective sexual harassment prevention measures (e.g., a zero-tolerance policy and a sexual harassment awareness training program), reporting methods and response protocols.
The Black Lives Matter movement—which is a racial justice campaign that was originally founded in 2013 and resurged in 2020 in the form of nationwide protests—has the potential to become a driving factor in race-related workplace discrimination and harassment lawsuits. This movement makes it increasingly vital for your organization to take steps to promote diversity, acceptance and inclusion in the workplace, as well as take any accusations or reports of racism seriously.
LGBTQ+ Protections
Although the EEOC had previously released guidance stating that workplace discrimination and harassment based on sexual orientation, gender identity and gender expression violated Title VII of the Civil Rights Act of 1964, the U.S. Supreme Court just recently confirmed in 2020 that Title VII protects gay and transgender employees from such treatment. While this is a relatively new development, the Supreme Court’s decision highlights the need for your organization to ensure all LGBTQ+ employees feel properly supported in the workplace.
Age Discrimination
According to the U.S. Bureau of Labor Statistics, the share of employees over the age of 55 in the labor force is expected to rise to nearly 25% by 2024 (up from 13% in 2001). This demographic shift makes it increasingly important for employers to take steps to minimize the potential for age discrimination issues within the workplace. After all, the Age Discrimination in Employment Act (ADEA) forbids age discrimination against employees and job applicants aged 40 and over.
Despite the ADEA; however, a recent Hiscox study found that 21% of U.S. employees have reported experiencing workplace discrimination based on their age. Such discrimination can lead to poor staff morale, a tarnished organizational reputation and an increase in EPL claims. With this in mind, it’s important to review your organization’s employment practices to ensure you are fostering a workplace culture that rejects ageism.
Wage, Leave and Salary History
As wage and hour laws continue to change across the country, it’s critical that your organization regularly reviews state-specific legislation related to minimum wage, employee classifications (e.g., hourly or salaried), overtime pay, sick leave and other paid time off. A failure to provide your staff with adequate wages or paid leave could lead to various EPL claims.
Employers’ ability to receive their employees’ prior salary history has also become a rising concern. In fact, in some states, recent legislation now prohibits employers from requesting or requiring salary history from a job applicant as a condition of being interviewed, hired or even considered for a position. In light of these changes, it’s best to speak with legal counsel for state-specific employee wage, leave and salary history guidance.
Marijuana Legalization and Employment Practices Liability Trends
Following the 2020 election results, medical marijuana is now legal in 36 states and recreational marijuana is now legal in 15 states. As marijuana legalization becomes increasingly commonplace across the country, it’s crucial for your organization to review any state-specific legislation and adjust workplace policies and procedures accordingly.
Specifically, some states have enacted legislation that restricts an employers’ ability to conduct drug tests for marijuana. Further, several state court cases have ruled in favor of the employee in recent employment lawsuits related to marijuana usage. This includes a case in which a disabled employee sued their employer for alleged workplace discrimination due to medical marijuana usage, as well as a case in which an employee sued their employer for alleged wrongful termination due to a positive drug test for marijuana.
That being said, your organization may need to reconsider or revise procedures related to conducting workplace drug tests for marijuana or basing employment decisions on an employee’s marijuana usage, as these practices could potentially contribute to EPL claims. Be sure to consult legal counsel for state-specific compliance guidance on this topic.
We’re Here to Help
You don’t have to respond to this changing risk landscape alone. We’re here to help you navigate these EPL market trends with ease. For additional coverage guidance and solutions, contact us today.
California’s Leader in Insurance and Risk Management
As one of the fastest-growing agencies in California, GDI Insurance Agency, Inc. is able to provide its clients with the latest and greatest of what the insurance industry has to offer and much, much more. The GDI team has developed an “insurance cost reduction” quoting plan, that provides you with the best coverage at the best rate!
We are headquartered in Turlock, CA, with locations across the heart of California’s Central Valley, Northern California and beyond to provide a local feel to the solutions and services we provide our clients. We pride ourselves on exceeding our client’s expectations in every interaction to make sure that our client’s know how much we value and appreciate their business.
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