A Letter from RMI President to California Clients: Take Action On CT Claims Legislation

Rancho Mesa would like to provide you with an update on our efforts related to the growing cumulative trauma issue impacting the California workers’ compensation marketplace. As many of you have experienced firsthand, cumulative trauma claims continue to rise and are having a significant, negative effect on premiums and experience modification rates (EMRs) across all industries.

Over the past year, we’ve worked to better understand the root causes of this problem. We’ve hosted podcasts with industry experts and recently held a Cumulative Trauma workshop with a leading workers’ compensation carrier. From these conversations, one conclusion is clear, meaningful reform is needed.

To help advance that discussion, I’ve written letters to both the State Senator and Assembly Member who chair the committees responsible for potential legislative changes. While major action is unlikely during an election cycle, it’s important that our representatives understand the real-world impact this issue is having on California businesses.

Our intent is not to limit legitimate cumulative trauma claims, but rather to establish sensible guardrails that help prevent the growing abuse of the system. I’m attaching drafts of the letters I’ve submitted on behalf of Rancho Mesa. If you are inclined to join this effort, please feel free to use or modify them as you see fit.

Your voice matters, and collective engagement is often what drives meaningful change.

I hope you will consider joining me in supporting this much-needed reform.

‍ ‍

David J. Garcia
President, Rancho Mesa Insurance Services Inc.

Send Letters to the Following

Senator Lola Smallwood-Cuevas
senator.smallwood-cuevas@senate.ca.gov

Assembly Member Lisa Calderon
assemblymember.calderon@assembly.ca.gov

New RM365 HRAdvantage™ Law Comparison Tool

Author, Jadyn Brandt, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.

A new tool has been added to Rancho Mesa’s RM365 HRAdvantage™ portal for businesses that operate in multiple states.

The new Law Comparison Tool simplifies multi-state compliance, allowing users to compare employment laws across multiple U.S. states and identify legal differences.

Users of the HR portal can now:

• Compare laws from up to 10 states and 4 law categories

• Sort by specific law categories or subcategories

• Export results in Word or Excel

How to Use the Law Comparison Tool

The Law Comparison Tool can be found under the “HR Tools” dropdown menu in the Navigation bar in the HR portal.

Using either the interactive map or the filters on the right-hand side of the page, select up to 10 states and up to four law categories, then click the “Compare” button.

The page will generate a list of corresponding laws in each state you have selected. Use the check box next to each law to select up to 10. Some laws will be state-wide, while others are specific to a city or county.

The portal will display your selected laws side-by-side for easy comparison. Click the “Email Comparison Download” button to generate a Word document or Excel spreadsheet comparison.

Contact your client technology team with any questions about accessing the HR Portal or Law Comparison Tool.

2026 Legal Updates Reshaping California’s Private Construction Sector

Author, Josh Hill, Account Executive, Rancho Mesa Insurance Services, Inc.

California’s private construction industry has entered 2026 with two major legal changes that will significantly impact how contractors and subcontractors manage cash flow, negotiate contracts, and process change order work. Beginning January 1, 2026, California Senate Bill 61 Private works of improvement: retention payments (SB 61) and Senate Bill 440 Private Works Change Order Fair Payment Act (SB 440) took effect, reshaping longstanding practices around retention and change order payments. These laws apply only to new private works contracts signed on or after that date, leaving existing agreements untouched.

These updates aim to correct chronic pain points for contractors who have long shouldered the financial burden of excessive retention and slow moving change order approvals.

A New Era for Retention: SB 61 Sets a 5% Cap

For decades, retention practices in California’s private works sector varied widely, with some upstream parties imposing retention rates higher than those seen in public projects. SB 61 changes that landscape by capping retention at 5%, aligning private contracting with the standards already established for public works.

This shift is intended to create more predictable cash flow throughout the contracting chain. Contractors and subcontractors may need to revise their contract templates and ensure that the new cap flows consistently through all tiers of subcontracts. The responsibility now falls on every party to verify that contract language mirrors the law, preventing scenarios where a subcontractor is held to a higher retention percentage simply because an outdated template was used.

The statute also carries financial consequences for disputes where a prevailing party seeking to enforce the retention cap may recover reasonable attorney’s fees.

There are, however, some exceptions to the new law. Purely residential projects of four stories or fewer are excluded unless it is part of a mixed use development. Additionally, if a higher tier contractor gives written notice before bidding that payment and performance bonds are required and the subcontractor chooses not to furnish them the retention cap does not apply.

SB 440: Bringing Fairness and Timeliness to Change Order Payments

Equally impactful is SB 440, which tackles one of the industry’s most persistent friction points, the slow approval and payment of extra work. Many contractors have grown accustomed to performing additional work promptly while waiting weeks or months for owners to process and compensate approved change orders.

SB 440 introduces firm deadlines designed to eliminate that delay. Once a contractor or subcontractor submits a change order claim via registered or certified mail, the project owner has 30 days to issue a written response identifying approved and disputed items. Any undisputed portion must be paid within 60 days of that response.

Failure to respond triggers a powerful remedy where the contractor or subcontractor may have the right to suspend work without penalty.

The intent behind SB 440 is straightforward accelerate reviews, encourage timely resolution of disagreements, reduce the financial strain created by float funding extra work, and ultimately keep projects on schedule. By establishing clear accountability, the law aims to ensure that contractors are no longer forced to operate as involuntary lenders on privately funded construction projects.

January 1st, 2026 and Beyond

Owners, contractors, and subcontractors should update their internal processes to comply with SB 41 and SB 61. Contract language, administrative workflows, and change order procedures should be reviewed to ensure they align with the new requirements. Subcontractors, in particular, should make it routine practice to obtain and review the prime contract to verify proper flow down provisions for both retention and change order rules. Understanding these new laws and adjusting practices accordingly will help protect your margins, avoid disputes, and ensure compliance as the industry transitions into this new regulatory landscape.

Rancho Mesa is happy to assist with any questions you may have regarding SB 41 and SB 61. Please direct your questions to me at jhill@ranchomesa.com or (619) 798-2819.

National Ladder Safety Month 2026

Author, Jadyn Brandt, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.

March is National Ladder Safety Month, and 2026 marks a decade of the American Ladder Institute’s (ALI) efforts to increase awareness and education in the workplace.

The areas of focus that the ALI has chosen for 2026 include:

• Training and Awareness

• Inspection and Maintenance

• Stabilization, Setup, and Accessories

• Safe Climbing and Positioning

ALI and National Ladder Safety Month sponsors are hosting weekly free webinars discussing basic safety principles and common causes of ladder injuries on the jobsite.

Ladder and fall safety violations are some of the most common causes of Occupational Safety and Health Administration (OSHA) citations year after year. To prevent citations and injuries on the job, employers should prioritize safe ladder use practices, and proper education.

A list of ways to promote ladder safety is available on the National Ladder Safety Month website, from simple actions like contributing to the conversation on social media using #laddersafetymonth, to more in-depth efforts like encouraging employees to earn Ladder Safety Certificates.

Rancho Mesa also has ladder safety resources available for clients through our SafetyOne™ platform, including:

• Ladder Safety online training

• Ladder Safety Toolbox Talks

• Ladder observation form to document inspections

For help accessing Rancho Mesa’s ladder safety resources, contact your client technology team member.

Protecting Your Bottom Line: The Critical Role of Excess/Umbrella Liability Coverage for Contractors

Author, Jeremy Hoolihan, Partner, Rancho Mesa Insurance Services, Inc.

The construction industry operates in one of the highest‑risk environments. Contractors work with heavy machinery, multiple layers of subcontractors, hazardous jobsites, strict contractual obligations, and constant exposure to the public. These conditions create significant exposure to large liability claims. And, although general liability, auto liability, and employers’ liability insurance make up the foundation of a contractor’s risk management program, these primary policies often do not provide enough protection when a major incident occurs.

Excess and umbrella liability coverage plays a critical role by adding a financial safety net that protects construction companies from catastrophic losses. This additional coverage ensures that one significant claim does not jeopardize the entire business’ financial health.

Construction claims can escalate quickly, and the industry routinely deals with high‑hazard operations like trenching, scaffolding, welding, and heavy equipment. When something goes wrong, the consequences can be severe. Claims involving multi‑party lawsuits, public accidents near the jobsite, structural failures, or damage to neighboring properties often exceed the limits of standard liability policies. Judgments, often referred to as nuclear verdicts, in the tens of millions of dollars have become increasingly common. Without adequate excess or umbrella liability insurance, a single large‑scale accident can financially devastate a contractor.

The industry also depends heavily on financial stability to keep projects moving forward. A major loss can disrupt working capital, delay active jobs, hinder bonding capacity, and interrupt cash flow, all of which are essential elements of a construction company’s balance sheet. Excess and umbrella coverage helps protect these critical financial elements. Ultimately, this coverage ensures that a significant claim does not derail a company’s long‑term stability.

Contractors rely on excess and umbrella insurance as project owners, municipalities, and general contractors are increasingly requiring higher liability limits. Many construction contracts now call for total limits of five million dollars, ten million dollars, or more, depending on the project’s size and complexity. Having an excess or umbrella policy makes it easier for contractors to meet these requirements, bid confidently on larger and more profitable projects, and demonstrate reliability during contract negotiations. Without the appropriate limits, a contractor may be eliminated from consideration before a project even begins.

Excess and umbrella liability insurance is also one of the most cost‑effective ways for construction companies to increase their protection. Rather than raising limits on individual primary policies which can be expensive, these policies offer an affordable way to secure millions of dollars in additional coverage. Because they are designed to respond to major, unexpected events rather than routine claims, they provide a high-level of value relative to their cost. For many contractors, this makes them one of the smartest risk management investments available.

Construction companies face some of the most complex and severe liability risks. While primary insurance policies address routine exposures, excess and umbrella liability coverage is what protects contractors from catastrophic events that could undermine financial stability, damage their reputation, or threaten long‑term viability. For contractors of all sizes, this type of coverage should be strongly considered as an essential safeguard and one that not only protects the business but also supports contract compliance, enhances competitiveness, and ensures longevity in a high‑risk industry.

Feel free to reach out to me at (619) 937‑0174 or jhoolihan@ranchomesa.com to discuss excess and umbrella coverage.

Census of Fatal Occupational Injuries Summary, 2024

Author, Jadyn Brandt, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.

The Bureau of Labor Statistics (BLS) has released the collected data from the Census of Fatal Occupational Injuries Summary for 2024.

This survey collects the total number of fatal work injuries recorded in the United States in 2024 as well as worker characteristics, type of event or exposure and occupation data.

According to the BLS, 5,070 fatal work injuries occurred in the United States in 2024. This total is down 4% from 2023.

Key Findings

A 16.2% decrease in fatalities due to exposure to harmful substances or environments was a driving factor in the overall drop in fatal injury rate.

Drug or alcohol overdoses are the number one cause of these types of fatalities, but also saw a drop from 512 deaths in 2023 to 410 deaths in 2024.

Worker Characteristics

The fatal injury counts for Black or African American workers decreased in 2024 to 624 from 659 in 2023.

The fatal injury rate for Hispanic or Latino workers dropped to 4.3 fatalities per 100,000 full-time equivalent (FTE) workers in 2024 from a rate of 4.4 in 2023.

Women made up 8.1% of all worker fatalities but 15.3% of fatalities due to homicides in 2024.

Type of Fatal Event or Exposure

Transportation incidents were the most frequent cause of fatal injury in 2024, accounting for 38.2% of all occupational fatalities that year. However, the total number of fatal transportation incidents dropped to 1,937 in 2024 from 1,942 in 2023.

Falls, slips, and trips are another common cause of worker fatalities, but decreased 4.6% from 885 in 2023 to 844 in 2024. In 2024, over 10% of these fatalities resulted from a fall from a height over 30 feet.

Fatalities due to violent acts also decreased slightly, to 733 in 2024 from 740 in 2023.

Occupation

Construction workers saw the second highest number of work-related fatalities in 2024, after transportation workers. In the construction industry, falls, slips and trips caused 370 fatalities in 2024, down 7.5% from 400 in 2023.

Building and ground cleaning occupations and maintenance workers saw an increase in fatalities from 2023 to 2024 as did protective service occupations.

Fatal injuries are the worst-case-scenario on a jobsite and serve as a reminder of how important it is for employees to be properly trained on all safe working procedures. Rancho Mesa clients can use safety trainings and toolbox talks in the SafetyOne™ app to ensure their employees are prepared for the dangers and risks on a jobsite.

A library of 52 driver-specific toolbox talks is available through SafetyOne to aid in the prevention of transportation incidents that could be fatal. Slip, trip, and fall prevention toolbox talks are also available in SafetyOne.

Additionally, Rancho Mesa is hosting a Ladder Safety workshop on Friday, March 13th, 2026 at 9:00 AM. This workshop will address common causes of ladder-related injuries and how to keep workers safe when they are required to use ladders.

General Liability Classification for Tree Care Contractors: Ground Work Is Still Tree Work

Author, Rory Anderson, Partner, Account Executive, Rancho Mesa Insurance Services, Inc.

Many tree care contractors are familiar with the ability to split workers’ compensation payroll between tree care and landscape codes when specific conditions are met. This has led some contractors to believe the same approach applies to general liability, particularly when trimming small shrubs, fruit trees, or clearing small trees and brush from the ground. While this assumption is understandable, workers’ compensation and general liability are governed by different classification systems. Applying workers’ compensation logic to general liability classification is one of the most common reasons tree care contractors experience unexpected additional premium at audit.

General liability classifications are governed by the Insurance Services Office (ISO), and ISO class code 99777, Tree Pruning, Trimming, Repairing or Spraying, is intentionally broad. The code explicitly includes tree work performed from the ground, as well as work performed from ladders, by climbing, or using bucket trucks. It also includes incidental chipping, debris removal, stump grinding, storm cleanup, and the removal of a small number of trees. Under ISO rules, the determining factor is the nature of the operation being performed, not whether an employee leaves the ground. If a contractor is hired to perform tree work, that exposure must be reported as 99777 regardless of tree size or elevation.

For a tree care contractor, ground-related tree work should not be treated as landscape work for general liability purposes. If the scope of work involves pruning, trimming, removal, or care of trees, including ornamentals or fruit trees, the operation is considered tree work under ISO classification rules. Ground-based tree work does not become landscape exposure simply because it resembles landscaping. General liability auditors are not focused on whether an employee leaves the ground. Instead, they are focused on what the business does. If a company is licensed as a tree contractor, markets itself as a tree care company, and is hired to perform tree work, that exposure is considered tree operations for general liability purposes.

This does not mean landscape classifications are never appropriate. Tree care companies with a separate landscape maintenance division may properly use landscape general liability codes for crews performing standalone landscape services such as mowing, planting, irrigation repair, or general groundskeeping. However, once a crew is dispatched for tree-related operations, regardless of size or whether the worker leaves the ground, that payroll must be reported under 99777. Understanding this distinction upfront helps tree care contractors avoid audit surprises and ensures their general liability program accurately reflects their operations.

Reach out to me if your tree care or landscape company has encountered challenges with general liability and/or workers’ compensation audits.  Having a resource that understands these key distinctions can provide deeper understand and clarity in this often confusing space.  I can be reached via email, randerson@ranchomesa.com or by phone at (619)-486-6437.

Navigating California Labor Laws: Key Compliance Challenges for Contractors

Author, Matt Gorham, Account Executive, Rancho Mesa Insurance Services, Inc.

Jason Fischbein of Fisher Phillips sits down with Matt Gorham to discuss some of the primary labor and employment law issues currently impacting contractors, especially those within the HVAC and Plumbing industries.

Recognized by San Diego Business Journal as one of the 40 Next Business Leaders Under 40, Jason provides insights to the challenges of compliance with California’s highly technical labor code, specifically around meal breaks and rest periods, determining regular rates of pay, and the importance of the interactive process for employee accommodations.

Jason also discusses how wage and hour issues can develop into PAGA claims, and offers suggestions to avoid them.

Matt Gorham: You're listening to Rancho Mesa’s StudioOne™ podcast, where each week we break down complex insurance and safety topics to help your business thrive. I'm your host, Matt Gorham, and I'm joined by Jason Fischbein with Fisher Phillips, and I appreciate you being here. So, yeah, Jason, first and foremost, thanks for making the time to sit down with me.

Jason Fischbein: Thanks for having me, Matt. First ever podcast for me, so looking forward to it.

MG: I'm excited to hear how it goes. So let's jump in. I guess I want to start first because I know San Diego is a really close-knit market, a really interesting community here. And so you're from Chula Vista, so you're from the San Diego area. You've got a lot of personal experience here.

JF: Yep. San Diego, born and raised. I grew up in Chula Vista. Currently live in North Park and have been in San Diego my entire life, apart from three years of law school.

MG: Well, I understand you also went to UCSD, correct?

JF: Yes, UCSD for undergrad. I was a political science major at Roosevelt College and loved my time up there. Nothing beats going to college so close to the beach, right?

MG: I can relate to that. I mean, I fellow triton here. So, yeah, I'm sure we've got some stories that we can share offline. But you mentioned, of course, three years away from the San Diego area to go to school, and you went to Stanford.

JF: Yeah, Stanford for law school. Bay Area, of course, is not too different, but I was eager to come back to San Diego, all my family's here. And I always knew that right after law school, I'd come straight back and start my practice with a focus on employment law.

MG: That's fantastic. You know another personal connection for me. My dad's a Stanford alum, so obviously speaks to your qualification and your insights. I mean, you were recognized as 40 Next Business Leaders Under 40 by the San Diego Business Journal. Tell me about that.

JF: That was quite the honor. And that was bestowed on me last year. It's something that I'm proud of. and it's always rewarding to be recognized in my hometown community.

MG: Well, congratulations to you on that. And, you know, it's a testament to you and your work, your expertise, and the way that you serve your clients. So we'll jump into some questions here. And just to clarify the point, of course, that you focus specifically on labor and employment law. And so we're really going to offer some, I think, valuable insights on some of these areas here. With that focus, what are some of the most common challenges that contractors run into with respect to labor and employment law?

JF: Yeah, thanks, Matt. So you're exactly right. My practice is 100% employment law and focusing specifically on the management side, so representing businesses. And I would say that the biggest challenge that I'm seeing from plumbing, HVAC clients, but also clients in practically any industry, is how to comply with California's labor code, which is hyper-technical and also uncompromising.

The penalties for violating the labor code can be very severe and the consequences can be dire. So just one example off the top of my head. In the plumbing industry, for example, often the employees are compensated either on a commission basis or with bonus compensation. And depending on what type of compensation the plumber is receiving, the company needs to make sure that they're incorporating that type of incentive compensation in the rate that employees are earning for their meal break premiums, their rest break premiums, their overtime pay, their sick leave pay. So there's all sorts of factors to be aware of simply because an employee receives a non-discretionary bonus and now leads to all these other ramifications.

MG: Yeah, I really like the way that you use the word hyper-technical there. You know, it does seem like there are certain laws that almost contradict other laws and use some technical language here, of course, because it does depend on the specifics of the situation, and they don't always translate well to, you know, plain English, where I think it is really beneficial for people to work with you or someone like you because you can help them understand how do these hyper-technical terms really apply within the operations of their business?

And the fact that you work exclusively with the business side of management, you can help them to navigate the complexity of it and make decisions that set them up for success depending on what roles their employees are performing for them. Whether those are true salespeople, whether those are technicians, or whether there's a mixture of responsibilities for particular individuals that work for them.

JF: Yeah, absolutely. And you're exactly right. Whether they are exclusively focused on sales or whether they're at the client customer sites doing the hard technical work, it can drastically vary what rules of play are governing the compensation structure.

MG: Yeah. And so, you know, compliance, a lot of different ways that that can be interpreted or applied. But I'm curious to hear, because you mentioned that there are ramifications and consequences.

What would you say are the three, I guess, kind of main issues that plumbing/HVAC clients are coming to you for? Because I imagine most of them fall within compliance. But are those specific areas you mentioned meal breaks, rest breaks, commission structure. Can you speak a little bit more about some of those main issues?

JF: So I was going to start with meal and rest breaks. You hit the nail on the head there. It's very important in California that a meal break and a rest break be completely uninterrupted. So what we mean by uninterrupted is the employee cannot be receiving any work-related emails, any work-related calls, or fielding any work-related questions when they should be taking their meal break or the rest break. And if they do get a work-related call and they answer that call, they're going to either have to be paid a meal break premium for that interrupted meal break or, as soon as possible, reset things and go and take now a true proper uninterrupted 30-minute meal break. Right?

And practically speaking, it may not always be possible to reset that meal break. So now we have to be aware of, well, we need to pay this particular employee a premium because their break was interrupted. And then the question is, what hourly rate should that premium be paid at? And that entirely depends on their base rate of pay, as well as any non-discretionary bonuses they're receiving.

So for example, if they receive a bonus because they were able to refer a particular customer to an additional service that they're purchasing or that they're receiving from the company. Now potentially we have to incorporate the value of that compensation into the meal break premium rate. And it can get quite complicated. So we call this the regular rate of pay. Determining the regular rate of pay is always very tricky, especially in industries where the hourly employees are receiving all sorts of non-discretionary compensation, as is common in the plumbing industry in particular.

MG: Yeah, it's interesting you talk about, you know, the uninterrupted nature of these meal breaks, which is so difficult on both the construction side, you know, for guys that are at the job site of what conversation or what responsibilities, they're able to just completely shut down that aren't in some way able to be construed as work related. Or on the service side, you know, where guys are going from one job site to the next, you know, or one service call to the next. And so their breaks are more or less drive time. You know, is that really considered a break? I think most people would say no and yes at the same time, depending on how you interpret it. Obviously, the law is going to say no, but, you know, meal breaks in particular, you know, it’s common for people to just pick up food on the way from one call to the next. And so it's not really having uninterrupted time for a break, but it's kind of common practice. So it does seem like it's very difficult to provide those uninterrupted breaks.

JF: Right. And it's challenging just to track them, right? Because if you have an employee that's in the field, they're servicing one home on a plumbing issue, and then their next job is 20 minutes away, so they're driving to another customer's home. Making sure that the employee is tracking when their break time starts, when their break time ends, and ensuring that they're not performing any work-related activities during that time can be difficult in and of itself. So yeah, I completely agree with you. It can be tricky and most importantly we need to emphasize clear policies and practices. The employee needs to understand what is expected of them. And then we need to enforce those policies and practices, right? That's the logical next step. So if we have an employee that is not taking an uninterrupted break instead they are just eating and driving and going to the next client's site I would consider that to not be a truly uninterrupted break so my guidance to my clients all the time is to emphasize to the employees you need to take an uninterrupted break you should not be performing any work-related activity during that break and that would include driving to wherever the next job is, right? That counts as work-related activity, and that is not sufficient for a break. That break needs to be uninterrupted.

And, of course, if the break is interrupted, if the break is interrupted, the employee should be able to report that to the company, and the company then needs to be able to investigate, you know, what were the factors and circumstances at play that prompted this employee to say that they could not take an uninterrupted break. And if the company deems that break to have been interrupted, now the company should, in all likelihood, be paying a meal period premium. But there should be a process in place to basically allow the employee to report an interruption to the break and then allow the company to investigate and review the circumstances so that they can then make that decision as to what sort of premium needs to be paid.

MG: Yeah, it makes sense. So you mentioned that meal breaks and interest periods are kind of the top issue that clients are coming to you for. What's another area that you're seeing your clients have an issue with compliance?

JF: In the trade industries, right plumbing HVAC and similar industries tools and how to compensate for tools is always a big one that I'm seeing. So under the labor code if an employee is carrying their own tools they need to be earning at least twice the minimum wage and often in these industries we have an employee that is provided the tools by the employer but they might carry their own wrench because they like it, right? Or their own certain pocket knife or any other sort of tool that they personally own and that they deem to be reliable and they want to use their own tools, even though their employer provides them all the tools, right?

So, the way to solve this, in my view, is to have a clear tool usage policy that says, “this employee acknowledges and agrees that they have been provided all the tools they need for the job.”

Or, on the contrary, “this employee is providing their own tools.” We need to have clarity as to which situation is at play. Does this employee bring their own tools to the job? Or is this employee provided all of the tools they need for the job? And if it's the former, if they bring their own tools, the company needs to make sure that they're being paid at least twice the minimum wage.

MG: Yeah, which again gets into the complexity of when you've got these variable pays, you know, commissions and discretionary bonuses that can influence that calculation. Because, you know, I don't think I've met anyone in the field that doesn't have some preference for the tools that they're using.

And you're going to be hard pressed to find two guys in the field that agree exactly on what the best brand is or the best tools for the job. So it creates a bit of friction or conflict. So I appreciate you offering of suggestions too about, again, it seems like having clear policies in place, setting expectations and enforcing the policies.

And I know there's a few other challenges, some other issues that your clients are coming to you for, you know, talked about meal breaks and rest periods, compliance with employees providing their own tools and wages and how that comes into play. Is there another issue or kind of another topic that you're seeing a lot of questions around from your clients?

JF: Yeah, well, generally speaking, just to shift gears completely and kind of leave the wage and hour realm, because it's not only wage an hour that's difficult, right? Whenever there's a need for an interactive process discussion for an employee that may have medical restrictions, for example. That's always very challenging. And a couple of rules of thumb when I am helping clients navigate the interactive process and evaluating reasonable accommodation requests, I would say first and foremost, those types of discussions should be handled in conjunction with human resources. If there's a dedicated human resources department, my strong preference and guidance is to get human resources involved rather than having a supervisor try to handle that type of discussion because a supervisor typically doesn't have the training necessary to have that type of discussion and is also balancing hundreds of other items. So it's best to get human resources involved whenever we need to have an interactive process dialogue with an employee that is seeking medical restrictions or accommodations.

And secondly, it's important that the company is creative and open-minded rather than closed-minded. So if we have an employee that wants to continue working but they have some sort of medical restrictions, then companies should be approaching this from the perspective of, “We need to consider any and all possibilities to try to allow this employee to continue working, consistent with their medical restrictions, of course.”

And if the restrictions are unclear because the medical note is unclear, it is permissible to ask the employee to request an updated note. It's entirely contact-specific, so it's difficult to capture all the factors in a hypothetical scenario, but I would say this is why it's so important to get the assistance of human resources and legal counsel when dealing with the interactive process questions.

MG: Yeah, I really appreciate your point on the last part in particular, Jason, because there are so many different accommodations that might come up, and there are so many rules that govern what you can and can't ask, you know, at the hiring process or in the course of employment, yet there are expectations for accommodations around, you know, medical limitations.

And, I know, one of the areas that I've seen be addressed is clearly defining job descriptions so that there's a very well understood and clear idea and understanding of what an employee is expected of them within the course of their work and whether they can or cannot perform the duties of the job that they're being hired for or reassigned to. But your point about, you know, working with HR, working with legal counsel, everything that you've talked about really is proactive, or maybe not everything, but I think there's a strong emphasis that I'm picking up about kind of a proactive approach instead of just a reactive approach that once something has gone wrong, how do we address it? But more saying, how do we put the right systems in place? Again: policies, enforcement, clear communication and support to avoid the issues from really having the dire consequences that you've referred to.

JF: Absolutely. Yeah, I love to be proactive because it's much better to address an issue before it turns into litigation. And so I handle both, right? I handle plenty of litigation, but I also handle advising and counseling before there's a legal dispute. And the better job that our clients can do on the front end, the more likely it is they won't have a litigation down the line.

So I really enjoy advising and counseling my clients and solving issues before they turn into litigation. Not only does it save them time, money, and headaches, but it also ensures but it also ensures that the employees feel taken care of and are in good spirits as well.

MG: Yeah, which is a really good point that it's morale. It’s do the employees feel like they are a part of the team? Do they feel like they've got an interest in the success of the business or if they feel like they're being exploited, you know, or taken advantage of? Because that's where I think a lot of situations can arise in different forms that jeopardize the success of the business. And one of those wage and hour claims, you know, PAGA claims, you mind speaking to that a little bit? Because it a little, like, those can be retaliatory.

JF: Yeah, so PAGA claims are constant thorn in the side of almost any employer in California. And PAGA, it stands for the Private Attorney's General Act. This law has existed for over 20 years now in California. And these claims just become more and more prevalent in this state. And on a basic level, an employee who brings a PAGA claim is intending to stand in the shoes of the labor commissioner to enforce the labor code. So an employee basically can say that they want to represent not only themselves, but also other employees that have suffered the same type of labor code violation. And they can do that without having to exhaust all the formalities of a class action lawsuit.

So basically, PAGA claims are very worrisome and difficult to deal with in California because it allows for representative claims, claims made on behalf of dozens, potentially hundreds or thousands of employees, all in the interest of enforcing the labor code because the state of California doesn't have the resources to enforce every single labor code claim. That's the underlying rationale behind the law, but we've seen essentially just hundreds of these types of claims filed every single day.

And it could be the smallest violation of the labor code, but now you have an employee that tries to represent all other non-exempt employees for that same type of violation. So basically the reason that PAGA is such a powerful tool for employees is because it can turn one small issue into now a very large scale legal headache for the employer. So in my practice, I am helping clients with PAGA and class action types of wage and hour cases probably at least 50% of the time in my day-to-day practice. And having strong policies and practices is absolutely the first step to avoid that type of litigation before it can ever materialize.

MG: Yeah. So it seems like that, you know, wage an hour leads itself right into potential exposure for pocket claims.

JF: Right. Yeah, that's exactly right.

MG: Yeah. Jason, you mentioned that, you know, a lot of your advice includes bringing in legal counsel like yourself, as well as HR, and a lot of smaller companies maybe don't have access to those resources or don't invest in them yet. But I'm curious to hear your thoughts. You know, is there a certain size where a business becomes more vulnerable to these type of issues?

JF: Yeah, it's a really good question, Matt. And unfortunately, no matter how large or small the employer is in California, there's always going to be risk. And especially for labor code compliance, even the small companies have to comply with the labor code. And if there is a violation, especially a systemic violation that can impact all of the non-exempt employees, for example, that can turn into a PAGA lawsuit. It can turn into a class action depending on the circumstances. And the size of the company really has no bearing, right?

So of course, the bigger companies have more employees so there's more volume to go around and potentially bring a claim. But even the small companies need to ensure that they're complying with their labor code, that they're working with counsel if they can or at least have a dedicated person that is focused on those compliance efforts because simply being a small company isn't going to eliminate the litigation.

And in fact, it could mean that the litigation has the potential to threaten the viability of the business because it is a small company, right? So no matter what, my advice is to have a dedicated person at the company who is thinking about labor code compliance, working with trusted advisors as possible and as needed to ensure compliance, and also staying abreast with the latest changes in the laws because the labor code and other legislation in California changes on a yearly basis. And it's always kind of a moving target, just another reason why it's so difficult to do business in this state. And so something as simple as making sure your handbook is updated on a yearly basis can ensure that the company is taking the right steps to protect themselves.

MG: Again, just a number of really good points there. One of them is, it comes to mind for me, you know, big businesses now, they haven't always been big businesses. They started as a small business and they've been able to grow just through whatever circumstance they were able to navigate or persevere. And a lot of small businesses end up either staying small or end up unfortunately having to close their doors because of the threat of something like this if it should arise. So being proactive and having the right trusted advisors in place can make a huge difference for how to avoid or how to handle a situation like this should it arise.

You also talk about how quickly and how frequently the laws can change and how important is to stay in compliance. We're able to offer our clients a living handbook that's able to offer updates consistently as new laws go into effect. But I'm curious to hear your thoughts. Are there any new laws that went into effect January 1st that you took special interest in?

JF: Yeah, Matt, so one law that I wanted to point out for purposes of today's discussion is Senate Bill 642, which takes effect on January 1st, 2026. And this new law imposes significant changes to California's pay transparency requirements. Under this new law, employers will have to be more specific about the pay ranges that they provide in job posting. So what this really means is that an employer in a job posting should be providing a good faith estimate of the salary or hourly wage range that the employee could reasonably expect to be paid for that position. And that needs to include not only the base pay, but bonuses, commissions, other non-discretionary compensation, and it needs to be for the specific job position that that candidate would reasonably expect it to be offered rather than the position on a more broader scale.

So if this specific applicant would be expected to be paid, this base hourly pay, this type of bonus, and this type of other incentive compensation, that needs to be accounted for on the job posting. It also ensures that the statute of limitations for a fair pay type of claim is extended to three years. And the employee could potentially recover lost wages for a period of up to six years. So again, pretty significant consequences for noncompliance. And this is just another way that California is always reshaping the laws to make things more challenging for our clients in California.

MG: Yeah, which it's a good point, right? Because this stuff does evolve quickly. And from the insurance side of things, a lot of the conversations that we have is how to transfer that risk, what to retain as clients or as business owners, but also how to work with the right people to put the right controls in place and maintain and enforce the right policies and the right controls.

So, Jason, we've talked about a lot of different topics, and I'm sure that, you know, some of our listeners might have additional questions. If they want to reach out to you, how do they get in touch with you?

JF: Yeah, thanks, Matt. So the best way to reach me is at my law firm email address, jfischbein@fisherphillips.com. And they could also call me, and I'm available anytime. Always happy to assist, regardless of what the underlying need is, I'm available to chat. And I appreciate you giving me this opportunity to chat about these items with you today.

MG: Yeah, thank you so much for making the time, Jason. Again, it was great to have you. Thanks again for coming down and sit down with us.

JF: Yeah, thank you, Matt, very much.

MG: Thanks for tuning in to our latest episode produced by StudioOne. If you enjoyed what you heard, please share this episode and subscribe. For more insights like this, visit us at RanchoMesa.com and subscribe to our weekly newsletter.

FMLA Made Easier: Tools and Resources for Employers Navigating Leave Laws

Author, Jadyn Brandt, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.

The Family and Medical Leave Act (FMLA) allows qualifying employees to take up to 12 weeks of unpaid leave per year, while maintaining job protection and healthcare benefits.

The U.S Department of Labor’s Fact Sheet outlines the qualifying reasons an employee may take FMLA. They include:

• “The birth of a child or placement of a child with the employee for adoption or foster care,

• The care for a child, spouse, or parent who has a serious health condition,

• A serious health condition that makes the employee unable to work, and

• Reasons related to a family member’s service in the military, including

  o   Qualifying exigency leave – Leave for certain reasons related to a family member’s foreign deployment, and

  o   Military caregiver leave – leave when a family member is a current service member or recent veteran with a serious injury or illness.”

Employees are eligible for FMLA when they, “work for a covered employer for at least 12 months, have at least 1,250 hours of service with the employer during the 12 months before their FMLA leave starts, and work at a location where the employer has at least 50 employees within 75 miles.”

There are additional rules and requirements for certain industries including teachers and service members. Many states also have additional laws and guidelines that may differ from federal laws, so it is important for employers to check state guidelines as well as federal.

Resources Available Through Rancho Mesa

The RM365 HRAdvantage™ portal has FMLA resources that employers can use to ensure compliance. Login to the portal to access:

• FMLA Quick Guide – helps determine if an employee is eligible for FMLA

• FMLA Leave Administration Checklist – overview of the process of administering leave

• FMLA Paperwork Video – breaks down what forms are necessary when requesting and approving FMLA

• FMLA Paperwork Packet – forms and letters to be used for FMLA leaves

• Family Medical and Leave Act Sample Policy – can be customized for your company

• FMLA Absence Tracking Spreadsheet – track employee FMLA leave

FMLA law updates are published in the portal. Plus, if Rancho Mesa clients choose to build a Smart Employee handbook through the portal, they will be alerted of changes to both state and federal laws and can accept automatic changes to their workplace policies.

Rancho Mesa clients can also use the portal to submit questions specific to their business, and get answers from real HR experts.

Contact your client technology team member with questions about using the HR portal to access FMLA resources.

Understanding the PLA Grievance Process

Rancho Mesa’s Surety Relationship Executive Anne Wright sits down with Adrianna Lopez, Director of Labor Relations for the Associated General Contractors (AGC) San Diego Chapter, to discuss the grievance process for project labor agreements.

Anne Wright: You’re listening to Rancho Mesa’s StudioOne™ podcast, where each week we break down complex insurance and safety topics to help your business thrive. 

I’m your host, Anne Wright, and today I’m joined by Adrianna Lopez, Director of Labor Relations for the Associated General Contractors (AGC) in San Diego

Adrianna, welcome to the show.

Adrianna Lopez: Thank you. Good morning.

AW: So we're going to talk a little bit about project labor agreements, often referred to as PLAs, or I guess in some sectors PSAs, have become increasingly prevalent in public contracting over the years. And as a result, non-union contractors are frequently faced with a significant business decision, whether to pursue that work governed by a job-specific labor agreement or to walk away from those opportunities altogether.

So we're not going to go into all the pros and cons today about whether or how to participate on a PLA and what that might mean for a non-union contractor or subcontractor. But I think it's important for our listeners to know more about this grievance process if they do opt to undertake a PLA job.

So, Adriana, tell us a little bit about your background and we'll go from there.

AL: Well, thank you for having me on this morning. And my role at AGC is whether you're union or whether you're non-union/open shop, my job is to educate you to succeed on PLAs or inform you as to why you shouldn't work on a PLA. We're a pro-contractor, and so my background is in construction. I've been in the industry for 15 years, mostly on the regulatory side, working with PLAs in public works construction, supporting contractors, awarding bodies, and developers, et cetera.

At AGC, San Diego, my role as Director of Labor Relations is twofold. It's one to support our signatory contractors and also to help navigate the PLAs that are very common in San Diego so that anybody, whether they're open shop or not, can succeed on them and keep the work flowing.

AW: And AGC has always done a great job on education for the industry and its members, again, regardless of whether it's open shop or merit shop-based. So we're happy to have you here. Who do you think will benefit most from listening to this podcast?

AL: I think the people that will benefit most would be the people who are new to PLAs or maybe a bit averse to PLAs, just not understanding the process, or maybe a contractor who's in the middle of a grievance and doesn't exactly know which way is up.

AL: Yeah, interesting grievances. We're going to talk a little bit about what those might look like and how they can be responded to. But I think it's not something that a lot of people think about when they realize what they have to do to participate on a PLA. You know, getting a project from start to completion involves so many things in contracting. We know that. And I always honor the contractors that are able to successfully perform a job from start to finish with all these issues that they have to come across. So let me ask you regarding these master labor agreements or PLAs, are there any provisions that are negotiable when you're setting something up?

AL: No. So the negotiations happen at the bargaining table with the bargaining units. And in San Diego, our agreement for several crafts is the collectively bargained agreement. And if you're on a local PLA and you're using carpenters, cement masons, operators, laborers, you would be using our agreement as part of the Schedule A for many of the PLAs in the local area. They're not negotiable. It's a very standard set of rules and processes, and people need to read them very carefully before they get on to those types of jobs because they're not negotiable in any way or form.

AW: Just one more thing from day one contemplating a project, educate yourself, know what getting into.

AL: Exactly.

AW: Contracts, contracts, et cetera. So what would constitute a valid grievance? How do those come up? What do they look like?

AL: So a grievance is a set structure for a complaint of sorts, let's say. Any sort of violation, whether it be of the PLA itself and of the agreement at terms. So, for example, a grievance might be if a contractor was on a piece of equipment and was classifying the workers as a laborer, whereas that equipment is covered under the operating engineers’ agreement. So that scope of work should have been the operators. And so the operators have every right to file a complaint against a contractor for not using the right craft.

Another example might be if somebody was terminated without proper notice to the union, and there's certain steps of which have to be taken before an employee of certain types can be terminated. So that would be another reason for a grievance that somebody would have to work through.

AW: And things like lunch hours and breaks and all those things that a lot of people think of that unions have always been supportive of from day one. It's down to that kind of nitty-gritty stuff as well.

AL: Yeah, basically anything and everything that's covered in the master labor agreement, which you basically, as part of a PLA, you abound by the terms temporarily to that agreement. You need to be very familiar with it, the hiring procedures as well as the firing procedures, as well as the breaks, as well as the holidays, work hours, schedules, et cetera.

AW: So, an employer might be in a situation where they think it’s a grey area between a definitive grievance and situations that could potentially be a grievance. How can they navigate through that?

AL: Honestly, it's about communication. First of all, they need to be speaking with the PLA coordinator, which is the representative, usually from the awarding body, that helps oversee contractors in the workflow from the PLA on the project.

They also should be contacting the union if they want more clarity as to exactly how to do something.

But mostly, if they're an AGC member, they can contact me and I can help walk them through that entire process as part of my job. My part of my job is to walk them through from A to Z, the grievance process, and identify potential grievance issues, as well as if there is one, to hold their hand and walk them through that process until completion.

AW: Yeah, I can't imagine being a subcontractor new to this and going it on your own and not having an advocate. It seems a little intimidating.

AL: Just a little bit.

AW: Yeah. So we know that a well-defined process of processing those grievances will help keep things like the job schedule from being impacted. Are there any shortcuts to handling grievances so that maybe there isn't as much disruption? Can you offer any advice to those contractors who are new to the process or want to prepare in advance?

AL: So with respect to shortcuts, I'd like to first tap on to the idea that grievances have very strict timelines. And so the worst thing you can do is if you get a grievance to ignore it, because depending on the local and depending on the terms and the terms of the agreement, the timelines are very strict and you could really be at a disadvantage and or subject yourself to penalties, basically, liquidated damages, et cetera, if you don't adhere to those timelines.

With respect to shortcuts, I guess the best shortcut would be to call me if you're an AGC member, and so we can review it and we can immediately get on the same page of how we're going to address it to the union and to meet with those union representatives in order to make a fair case immediately and as soon as possible. And the union's job is really just to make sure that everybody's following the procedures, the master labor agreement terms, and to keep the work flowing. So they don't want to hold things up just as much as the contractor doesn't want to hold things up.

And so the earlier we can jump on a grievance and meet with the union and make it a priority to come to an agreement as soon as possible is the best route that we should take.

AW: I mean, my mind's thinking of other things that these contractors have to deal with all the time when they get into a contract with documentation, whether it's change orders, scope of work. This is just one more thing. If you're on a PLA, it's just like pay attention to what you're expected to do and document your files.

AL: Absolutely. And actually anything with regards to construction and public works construction, PLA construction, documentation is key. You're absolutely right. If you have an issue with an employee, it needs to be well documented. Same with if you have a reasoning as to why you hired one subcontractor over another it needs to be well documented. If you learned something on-site from a business rep, from the union that’s there, you need to make sure that you document their visit, the reason for their visit, the time and date. This will all help so that if in the unfortunate event you’re in the grievance process, if you have all of your documentation supporting why you did what you did, it really goes a long way.

AW: We always recommend that our clients know and would necessary retain a good construction attorney, whether it's to review their contracts from the get-go or get involved in some of these disputes. It sounds like the AGC offers another advantage to the contractor, as you mentioned, contact you to be able to resolve some of these issues and understand them a little bit better. So that's recognized and appreciated. Is there anything else that you think is important to share with our listeners?

AL: Yeah. So I'm excited to be here. This is a new position at AGC San Diego. And already I've been meeting a lot of people and educating people on a lot of really important topics. Yesterday, I just completed an eight -hour prevailing wage training for members and non-members. And then also on Friday, we have a for non-members and members, we have a PLA lunch and learn where people can learn a little bit more about the PLA process and it's hosted by myself.

But yeah, as part of the AGC membership benefit, I'm here to educate and I'm here to support open shop, union, just contractors in the local area. And so part of the membership means that you have access to me at any time. I can come on site. I can give a training maybe at your office, or you can call if you have a tricky prevailing wage question. We’re just really pro-contractor and that’s really the beauty of AGC San Diego.

AW: Well, as we discussed, these PLAs are not going away and when they first came into town people were like, “Well maybe, how about, what if we, let’s just skilled and trained in there and everybody will be good,” no we’re seeing more and more of it, sometimes it’s legislated, I think City of San Diego we actually voted on it a few years ago. So kudos to AGC for hiring you.

And thank you so much for coming in. If you want to reach me, I can be reached at awright@ranchomesa.com.

And Adriana, you want to share your email?

AL: Sure. My email is alopez@acgsd.org

AW:  Thank you very much.

AL: Thank you.

AW: Thanks for tuning into our latest episode produced by StudioOne. If you enjoyed what you heard, please share this episode and subscribe. For more insights like this, visit us at RanchoMesa.com and subscribe to our weekly newsletter.

Bureau of Labor Statistics Releases 2023-2024 Occupational Injury/Illness Data

Author, Jadyn Brandt, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.

The U.S. Bureau of Labor Statistics has released the collected data of employer-reported workplace injuries and illnesses for 2023-2024.

What the Data Shows

In 2024, private industry employers reported 2.5 million nonfatal workplace injuries and illnesses which is down 3.1% from 2023. These latest numbers are also the lowest number of employer-reported injuries and illnesses since 2003. And, no industry sectors saw an increase in reported cases.

In a two-year period (2023-2024), 1.8 million cases involved time away from work and on average resulted in a median of 8 days off of the job. 1.1 million resulted in cases that involved job transfer or restriction, with a median of 15 days of transfer or restriction reported.

Additionally, over the same two-year period, overexertion and repetitive motion were the most common causes of injury (i.e., 946,290 cases) that resulted in days away from work, job  restriction, or transfer (DART). Furthermore, 860,050 cases were attributed to contact incidents. Falls, slips, and trips were the third most common cause of DART cases, followed by exposure to harmful substances or environments, transportation incidents, and violent acts.

How to Respond

First, speak to your insurance broker. They can discuss the benefits of a strong return‑to‑work program and how it can help mitigate the impact of workers’ compensation claims. With a substantial portion of workplace incidents leading to time off or modified duties, businesses that provide structured pathways for employees to safely return to their roles can limit losses of productivity and maintain consistency in their workflows. Effective return‑to‑work strategies also strengthen employee morale and retention by demonstrating a commitment to worker well‑being.

Prioritizing protections against overexertion and strain injuries is essential, as we see these types of incidents causing the most disruption to normal work duties. Because these types of injuries frequently lead to restricted tasks or days away from work, preventing them can help reduce the costs associated with medical care, lost productivity, and temporary reassignment. Investment in ergonomic equipment and training can reduce the likelihood of preventable injuries and fosters a culture of safety.

Rancho Mesa Resources

In our RM365 HRAdvantage™ portal, we have a Fitness for Duty Certification form which is completed by a healthcare professional and used to assess if the employee can return to work without restrictions or if any modifications or restrictions are needed. We also have a Release and Return to Work Acknowledgement letter that can be customized to outline the  employee’s temporary or permanent modified duties. . These documents ensure both the employer and employee have the same expectations when they return to work.

While an employee is on modified duty, online safety training in the SafetyOne™ platform can be used as the employee fully recovers. These safety trainings can be used to teach proper ergonomics, mobility and stretch, lifting techniques and many others

Contact your client technology team with any questions about accessing Rancho Mesa’s safety resources.

SafetyOne Year-End Report: Updates and Innovation in Risk Management for 2025

Author, Jadyn Brandt, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.

Rancho Mesa is always working to make prioritizing safety as easy as possible for our clients. Using our SafetyOne™ platform is one of the ways our clients can streamline safety training, reporting, and documentation. In 2025, we worked closely with developers to improve cross-platform features on both the SafetyOne website and mobile app, to help our users save time and generate better results.

Navigation & Layout Changes

From time to time, small navigation and layout changes are made with the goal of saving our clients time as they navigate the platform.

• The addition of smart filters and saved searches mean fewer clicks, which adds up over time.

• Redesigned screens make it easier to find exactly what you are looking for when on the website.

Improved Observation Forms

Observations that are easy to navigate are a simple way to ensure safety hazards are reported and addressed in a timely manner.

• Simplified report templates produce smoother workflows.

• Adding timestamps to photos ensure documentation is accurate.

• The ability to combine, filter, and export reports in bulk cuts out extra steps.

• Requiring signatures improves accountability.

Simplified Training Management

Training management, documentation, and record-keeping can all be done through the SafetyOne platform, and it is easier than ever before to support team compliance, without taking valuable time out of the workday.

• Adding new email training reminders that can be scheduled in advance and edited when needed allows employers to customize who often they remind employees as often.

• Employees can easily access training directly through a mobile device using the new “Training” icon.

• Streamlined group assignments that simplify onboarding team members.

• QR codes that can be accessed in seconds for employees who need to complete training in the field.

What’s Next

Our developers are working on a number of improvements for 2026 to improve actionable insights.

• Dashboards tied directly to client data

• AI-powered analysis

• Automated certificate of insurance (COI) tracking and compliance

These updates to the SafetyOne platform, along with our always-expanding library of toolbox talks and trainings are made to make risk management as simple and time efficient as possible. For questions about the SafetyOne platform, contact your client technology representative.

Connecting Leaders in the Green Industry: Highlights from the 2026 NALP Leaders Forum

Author, Greg Garcia, Account Executive, Rancho Mesa Insurance Services, Inc.

This year’s National Association of Landscape Professionals (NALP) Leaders Forum took place in beautiful Santa Barbara, CA, just up the coast from San Diego. As always, this is one event that my brother Drew Garcia and I really enjoy going to every year. In fact, this marks Rancho Mesa’s 8th consecutive year sponsoring this event.

The forum brings together landscape leaders from across the country, giving them a place to connect, collaborate, and learn. For our Rancho Mesa team, it is an opportunity to not only network with these leaders and stay up to date on what is new and noteworthy in the green industry, but also gives us the opportunity to spend time with some of our clients who attended this year’s forum.

One of the most interesting educational sessions at this year’s event was based around the importance of meetings within an organization. The speaker, Gabrielle (Gabe) Adams, Associate Professor of Public Policy and Business Administration at UVA Darden School of Business, discussed that most organizations may be having too many meetings and the meetings they are having are not as effective as they could be. One of the biggest downfalls that Gabe mentioned is that all too often there is not enough debate and discussion in these meetings, rather most meetings are dominated by one or two voices and most people tend to hold their opinions to themselves even if they don’t agree. Gabe described the best meetings that are the most effective involve everyone participating in the discussion, this is where creative ideas and processes are developed. We found Gabe’s topic to be both educational and thought provoking.

The highlight of the trip was on Thursday night when we hosted both Rancho Mesa clients and other green industry leaders to a dinner at The Elwood, which was just down the road from where the Leaders Forum was taking place. This night was filled with fantastic food and even better conversation. It was a great place to hear strategies and processes that made each of their landscape companies successful.

All in all, NALP Leaders Forum was a huge success, packed with valuable networking and learning opportunities. We are already looking forward to 2027.

If you are interested in discussing this event or your company’s risk management, I can be reached at (619) 438-6905 or ggarcia@ranchomesa.com.

Protect Your Equipment this Year with the National Equipment Register

Author, Megan Lockhart, Marketing & Media Communications Specialist, Rancho Mesa Insurance Services, Inc.

The National Equipment Register (NER) plays an important role in protecting heavy equipment owners from theft by maintaining a national database of equipment ownership and stolen machinery that is used by both law enforcement and insurance agencies. When equipment is registered, it provides clear proof of ownership, making it easier for police to identify stolen equipment and increasing the chances of recovery if a theft occurs.

NER helps deter theft and reduce financial losses. Registered equipment is flagged in systems used by buyers, lenders, and insurers, making stolen machines harder to resell.

Additionally, Rancho Mesa, in partnership with NER, offers premium discounts when utilizing HELPtech for registered equipment, helping clients lower costs while improving their theft prevention.

Register your equipment today, or contact your Rancho Mesa broker to learn more about reducing your heavy equipment exposure.

Valentine’s Day and Sexual Harassment Prevention Training

Author, Jadyn Brandt, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.

Valentine’s Day can be a fun occasion, but in the workplace it also brings unique challenges that employers must proactively address. Harassment prevention training is essential to maintain a respectful, inclusive environment.

California employees need to complete a sexual harassment prevention training course every two years. Non-supervisory employees must complete one hour of training while supervisors must receive two hours of training. Free online training for both types of employees is available through the California Civil Rights Department in a number of languages. All new employees must be trained within six months of their hire.

Businesses outside of California may be required to follow different requirements, so be sure to check your state's guidelines as it may be different.

California law requires employers to keep documentation of trainings for a minimum of two years. Documentation should include the names of the employees trained, the date of training, the sign-in sheet, if used, a copy of all certificates of attendance or completion if issued, the type of training, a copy of all written or recorded materials that comprise the training, and the name of the training provider.

Rancho Mesa can provide a number of resources for our clients. Clients can use the RM365 HRAdvantage™ portal to submit harassment-related questions and get answers from real HR experts. We also offer instructions on how to complete the sexual harassment prevention training through the state of California in a PDF and a frequently asked questions document to answer questions about the training. Clients can contact their Rancho Mesa client technology team for those documents.

Clearly outlined policies in their employee handbook that address what behaviors will not be tolerated, an explanation of what their company's reporting process is, and what steps employers will take if any issues arise can also help keep employees free from any confusion on what is acceptable behavior in the workplace. Clients can also use the Smart Employee Handbook Builder to keep those policies updated and access sample policies within the HR portal as well.

When working to prevent harassment around Valentine’s Day, focus on ensuring that every employee feels safe, respected, and valued. By keeping employees up to date with their training, creating and reinforcing clear policies, and encouraging open communication, employers can create an environment that celebrates the best parts of holidays, without creating conflict.

Four RCFE Operational Breakdowns That Turn into Claims

Author, Jack Marrs, Account Executive, Rancho Mesa Insurance Services, Inc.

In Residential Care Facilities for the Elderly (RCFE), most claims do not start with just one huge mistake. They usually begin with small breakdowns that get repeated and eventually one incident turns into a complaint, a licensing issue, or a lawsuit. In my experience working with RCFEs, there are several areas that tend to lead to claims.

1) Falls and Transfers

Falls are common with older adults. According to the Center for Disease Control (CDC), once a person falls, they can become afraid of falling again, which leads them to be less active, resulting in them growing weaker and increasing the likelihood of another fall.

So, when a resident falls, ask :

• Was the environment safe (e.g., lighting, clutter, wet floors)?

• Was the resident supervised the way the care plan outlines?

• Did staff respond the right way?

• Does the documentation match what actually happened?

Even if staff did everything right, the facility can still get pulled into a claim if the story looks messy or inconsistent on paper.

RCFEs can reduce the risk of a claim by following regular risk management activities:

• Complete a daily hazard walk where you document that you checked the floors, rugs, cords, poor lighting, slippery bathrooms, call buttons, etc. through the SafetyOne™ mobile app.

• Make care-plan transfer rules non-negotiable (i.e., 1-person vs. 2-person assist).

• Use the same post-fall routine every time:

  - check the resident

  - monitor

  - notify family and stick to facts

  - document clearly

• Track patterns (i.e., same hallway, same time of day, same shift) and treat repeated falls like a system problem.

2) Medication Assistance Drift

Medication issues get serious fast. Even a small mistake can turn into an emergency room visit, a fall, or a family complaint. It also grabs attention because medication practices are a big focus area in RCFE licensing, according to the California Department of Social Services’ Medications Guide for Residential Care Facilities for the Elderly.

The biggest reason medication mismanagement turns into claims is the phenomenon called process drift, or more, specifically medication assistance drift, where over time, staff get busy, they rush, take shortcuts and steps get missed that are designed to safe guard medication administration.

RCFEs can reduce the risk of medication assistance drift by:

• Keep one clear, consistent Medication Administration Record system (i.e., clean, readable, auditable).

• Create a no-interruptions rule during medication assistance.

• Tighten controls for higher-risk medications.

• Complete quick refresher trainings, not just at onboarding.

3) Wandering / Elopement

Even if a resident is not hurt, families usually see their loved-ones wandering as a major failure in facility safety.

Facilities also have to balance safety with resident rights, which can come up during disputes, according to the California Code Regs. Tit. 22. § 87705 – Care of Persons with Dementia.

Facilities can reduce therisk their residents face from wondering by:

• Identifying at-risk residents early and document why they are a risk for wandering.

• Ensure alarms and door controls work and staff know how to respond.

• Treat shift change like a danger zone and implement a headcount routine.

• Keep expectations simple and documented.

4) Staffing Breakdowns

Staffing pressure can lead to rushed care, injuries, documentation issues, and human resources (HR) complaints. Many employment claims come down to inconsistencies within the workplace.

• RCFEs can help reduce the risk of these types of employment claims by ensuring they: Document training clearly.

• Build a basic modified duty and/or return-to-work plan.

• Keep HR documentation short and factual.

• Make it easy for staff to report issues early.

RCFEs do not need to be perfect in order to reduce claims. However, they just need to be consistent by running the same routines every time. This prevents incidents and strengthens the facility’s position when something does happen.

To discuss your facility’s operational risks, contact me at jmarrs@ranchomesa.com or (619) 486-6569.

How Rancho Mesa’s Risk Control Consultant Improves Client Safety

Author, Jadyn Brandt, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.

Rancho Mesa continues to explore new ways to support our clients’ risk management goals; and, a key step we have taken is by adding a Risk Control Consultant to our Client Services team.

Our Risk Control Consultant Jessee Keirstead will focus on updating and developing risk management content available to our clients. Jessee will focus on safety training and education, OSHA compliance, and safety program development tools.

Safety Training and Education

Jessee will present comprehensive safety trainings via workshop and webinar formats on a variety of topics. Developing and presenting these trainings in-house will allow Rancho Mesa to tailor content based on our clients’ industries.

OSHA Compliance and Risk Assessment

Having an in-house Risk Control Consultant allows Rancho Mesa to strengthen our focus on our clients’ OSHA compliance, with an emphasis on accurate recordkeeping and documentation through the SafetyOne™ platform and RM356 HRAdvantage™ Portal.

Additional risk assessment tools will also improve our clients’ ability to evaluate their operations, facilities and management practices, and will help our clients identify conditions that could lead to injuries, property damage, and interruption to their businesses or financial loss.

Safety Program Development

With Jessee’s extensive safety background, he will help Rancho Mesa develop tools clients can use to update their formal written safety programs and inspections including ergonomic evaluations, job site inspections, and equipment inspections.

“Not only are we taking in some of the tools that people already have together, like their inspections or training and digitizing it for them so that they can use it on the go, but we're trying to figure out new ways that are innovative, that are truly one of one, that we can help clients, use on an everyday basis,” Keirstead said.

With these additional tools to help prioritize risk management, Rancho Mesa is working to keep your team safe, while reducing potential for incidents and accidents while avoiding financial burdens and pitfalls.

GPS Tracking Isn’t Enough: One Simple Step Can Protect Your Heavy Equipment from Theft

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

The use of heavy equipment by grading/excavating, street/road and water/sewer contractors is vital in their daily operations. Outside of their employees, this is their second most valuable asset and also very expensive to replace, if stolen. Contractors across the country have seen an increase in heavy equipment theft. According to the National Equipment Register (NER), heavy equipment is nine times more likely to be stolen than vandalized and five times more likely to be stolen than encounter fire damage.

Contractors are often comforted that they purchased an inland marine policy to cover the loss of a piece of heavy equipment when stolen. However, there are steps companies can take to reduce the likelihood of their equipment being stolen or at least increase the chances of the equipment being recovered.

In addition to using GPS asset tracking software, Rancho Mesa recommends registering all heavy equipment with the NER, a subsidiary of the Verisk Crime Analytics family of companies. 

The NER, through the their HELPtech (Heavy Equipment Loss Prevention Registry) program, is the largest national database company that houses ownership information and theft data for construction and agricultural equipment. This database helps law enforcement officials identify your equipment after a theft, increasing the odds and speed of recovery significantly. Think of this as the DMV for heavy equipment.

Annual membership to the NER is nominal:

1. $250 for up to 50 pieces of equipment

2. $450 for up to 150

3. $750 for up to 1000

Members also receive special decals for their equipment, alerting potential thieves that stealing this equipment and trying to sell it would be more trouble than what it is worth.

In addition, many insurance carriers are willing to waive the policies theft deductible up to $10,000 if the piece of equipment is stolen and registered through the NER.

In partnership with the NER, Rancho Mesa can offer clients a discount when registering your equipment through HELPtech. Contact me at (619)937-0167 or sclayton@ranchomesa.com to learn more.

Cumulative Trauma Injuries: What They Are and How to Combat Them

Author, Jadyn Brandt, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.

Cumulative Trauma injuries are on the rise in California, and employers should be aware of the consequences of these costly claims.

Cumulative Trauma encompasses work-related injuries or diseases that develop over time from repetitive physical or mental stress. These are injuries that occur over time, not on a specific date; things like chronic back or knee pain, carpal tunnel, or hearing loss. Because these claims take place over a long period of time, it is more difficult for an employer to defend themselves against CT claims than against specific injury claims.

The Workers’ Compensation Insurance Rating Bureau (WCIRB) reports that CT claims now make up 3% of all claims, and the number of CT claims has doubled over the past 10 years. Additionally, 39% of CT claims are filed post-termination.

Because CT injuries compound over time, it is important for employers to take regular precautions against possible employee injuries.

Encourage Employee Reporting

Early reporting of unsafe conditions is an important step in preventing injury. Employers should encourage employees to report and document potential safety hazards on the job. Improper use of equipment while tree trimming, a lack of PPE on a construction site, or a need for ergonomic changes in the office are all risks employers should be aware of, and employees should feel comfortable reporting.

Rancho Mesa clients can use Observation Reports in the SafetyOne™ platform to document hazards that need to be addressed.

Proper Safety Training

Training employees in proper safety techniques is also an important step in preventing both immediate injury and CT claims. Employees should be aware of how to properly use all equipment and protect their bodies from repetitive stress.

For employees in construction and landscape industries whose jobs require manual labor, Rancho Mesa’s RM365 Advantage Mobility & Stretch™ Program helps workers prepare themselves for strenuous physical tasks and prevent injury.

Office employees can also benefit from ergonomic training to help prevent aches and pains associated with sedentary work. Office Ergonomics and Industrial Ergonomics training courses are both available through Rancho Mesa’s RM365 HRAdvantage™ portal.

For a closer look at the effects of CT claims and how to best combat them, join us for our Cumulative Trauma Claims: Trends, Impact & Best Practices workshop, happening on Friday, January 30, at 9 a.m.

PAGA Lawsuits: The Employment Risk Catching California Businesses Off Guard

Author, Kevin Howard, Partner, Rancho Mesa Insurance Services, Inc.

As insurance advisors, we have a responsibility to keep our clients (and any business within earshot) informed about emerging risks that could impact their operations. One area that has grown significantly in recent years is Private Attorneys General Act (PAGA) lawsuits. These claims can catch businesses off guard, leading to costly penalties and reputational challenges. By understanding what PAGA is, why it matters, and how to proactively protect against it, we can help steer clients in the right direction and strive for compliance.

Why Should You Care About PAGA

PAGA is a California law that allows employees to step into the shoes of the state and sue their employer for labor code violations. Instead of waiting for state agencies to enforce compliance, employees can file these claims themselves; and, the penalties can add up quickly. While the intent was to improve labor law enforcement, the reality is that PAGA lawsuits have become a major source of litigation for businesses.

The Worst Case PAGA Scenario

The most nightmarish scenario occurs when attorneys get involved in a single employee complaint which becomes the seed for a larger action. Counsel may pursue a representative PAGA claim on behalf of many employees statewide; and, where facts support it, may also file a traditional class action lawsuit under Rule 23 that seeks certification of a class including many current and former employees over several years. Class actions can expand exposure dramatically (for example, unpaid wages, penalties, and attorneys’ fees), while PAGA actions focus on civil penalties per employee per pay period. In practice, plaintiffs’ firms often file both PAGA and class claims together, leveraging overlapping facts and time periods to broaden the case and increase potential recovery.

How Did We Get Here

According to the California Department of Industrial Relations, PAGA was introduced in 2004 to help address the backlog of labor complaints. Since then, filings have exploded to over 9,000 notices in 2025. These figures represent California-only filings, underscoring the growing exposure employers now face.

Recent Changes You Should Know

In July 2024, California passed reforms to make PAGA more fair and less punitive. These changes include:

• Early cure periods: Employers now have a chance to fix issues quickly and reduce penalties by up to 85 percent.

• Stricter standing: Employees must have personally experienced the violations they claim.

• Online filing requirements: Streamlined processes for notices and compliance.
  These updates are good news, but they don’t eliminate the risk, they just give businesses more tools to manage it.

How Can You Protect Your Business

Here are practical steps every employer should take:

• Consider the pros and cons of Employment Practices Liability (EPL) Insurance with a wage & hour defense sub-limit.

• Audit regularly: Review payroll, timekeeping, meal and rest breaks, and expense reimbursements.

• Train your team: Supervisors should understand compliance basics to prevent violations.

• Act fast: If you receive a notice, use the cure period to correct issues and reduce penalties.

• Document everything: Keep detailed records of compliance efforts—this can make all the difference in court.

Insurance Advisor’s Role

Your insurance advisor should explain in detail Employment Practices Liability, laying out annual premium and deductible options with a detailed coverage analysis. We will provide a clear understanding of wage & hour coverage coupled how defense sub-limits work. Very often, choice of counsel is rare with EPL carriers, so businesses need to be comfortable working with attorneys in which they may be unfamiliar.

In partnership with Coastal Payroll, Rancho Mesa is hosting an in-person workshop on PAGA claims which will take place on Friday, February 20th, 2026 at 9:00 am. Reach out to me with specific questions on this topic at khoward@ranchomesa.com or call me directly at (619) 729-5173.

About the Author
Kevin Howard is a Commercial Insurance Broker at Rancho Mesa Insurance Services, Inc., specializing in risk management and insurance solutions for artisan contractors including solar, roofing, and other skilled trades. Based in San Diego, California, Kevin serves contractors throughout the Southern California region, helping them protect their businesses with tailored coverage and proactive support. His clients benefit from access to exclusive tools like the SafetyOne™ Platform, RM365 HRAdvantage™ Portal, and workers’ compensation claims advocacy services, designed to improve safety, streamline HR processes, and support better claims outcomes.