Providing Anti-Harassment Training Is the Employer’s Responsibility

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

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

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

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

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

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

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

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

Fraudulent Claims Could Be on the Rise

Author, Casey Craig, Account Executive, Rancho Mesa Insurance Services, Inc.

California is in the middle of a construction boom. There is more work than qualified employees and contractors need people on their job sites. While fraudulent workers’ compensation claims are relatively low right now, California contractors are asking what will happen when there is not enough work to keep everyone busy?

Fraudulent workers’ compensation claims peak when steady work dries up and opportunities diminish. When an employee doesn’t know if they will be employed next week, they can panic and consider making a fraudulent workers’ compensation claim to ensure a compensation check. Regardless of the size of your company, consider how you may be able to create growth opportunities for your employees. Even if an employee is with your company for a short time, it is important to show them there are opportunities for promotions and pay raises. Keeping your employees happy and goal oriented is extremely effective in reducing fraudulent workers’ compensation claims.

According to Chris Dill, Special Investigations Unit Manager for ICW Group Insurance Companies, millennial’s are two to three times more likely to commit workers’ compensation fraud compared to older employees. That is not to say you shouldn’t hire a millennial, just make sure they know there is a path to move up in the company, have job descriptions, and promotions available with new titles. This is essential to keeping their interest and dedication to your company. Make sure to have meetings where every employee can speak freely in an open forum, so their voices are heard. If an employee feels valued and a member of a cohesive team, they are less likely to create false claims, which can lead to a more profitable company.

When bidding for a job, it is next to impossible to account for injuries that may happen and how those injuries will cut into your net profit. If your only goal is revenue, profit is hard to attain and growth is only sustainable if your profit remains consistent. Keeping workers’ compensation claims to a minimum is a contributing factor to achieve consistent profit.

There are many ways to decrease the likelihood of fraudulent workers’ compensation claims. Rancho Mesa Insurance Services offers strategies to help clients stay ahead of this problem, including our upcoming workshop “Fighting Fraud in CA Workers’ Compensation System” on September 19, 2019. Please contact us at (619) 438-6889 or ccraig@ranchomesa.com for more information on how to prevent fraudulent claims, or with any questions you have regarding your policy.

Top 5 Free Safety Apps for Landscape Contractors

Author, Drew Garcia, Vice President, Landscape Group, Rancho Mesa Insurance Services, Inc.

Mobile devices have become an invaluable tool for many people, on the job. They provide access to contacts, email and applications (i.e., apps) that can make work a lot simpler and safer for landscapers. We researched the top apps that boost worker safety. In no particular order, here are the top 5 free safety applications for the landscape industry.

OSHA-NIOSH Heat Safety Tool
This app allows workers and supervisors to monitor the heat index for any jobsite.  By utilizing the apps features any user can get a reminder about the proper safety precautions and proactive measures that should be taken under the given conditions. It is available in both English and Spanish (to access Spanish, set phone language to Spanish).

Red Cross First Aid
This app provides access to information on how to properly handle first aid emergencies. It is available in both English and Spanish.

Chemical Safety Data Sheets - ICSC
This concise app offers searchable information on substances, delivered in a simple manner. It is only available in English.

NIOSH Sound Level Meter
This app quickly monitors the level of noise exposure in order to judge and evaluate if further testing is needed. It is available in both English and Spanish.

NIOSH Ladder Safety
This interactive ladder safety application is used to assist the worker in positioning a ladder at an optimal angle. It is available in both English and Spanish.

There are many applications employers can use on devices to help improve their safety program, formalize trainings, and consolidate information. 

If you use an application (with or without a fee), we would like to hear about it, so we can share with all of our safety-minded clients. Please send your feedback to Alyssa Burley, aburley@ranchomesa.com.

Employers Prepare As Reports of Sexual Harassment Spike

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

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

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

Charges Alleging Sexual Harassment FY 2010 - FY 2018

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

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

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

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

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

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

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

Course of Action

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

Training Supervisors and Employees

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

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

Employment Practices Liability Insurance (EPLI)

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

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

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

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

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

Fleet Management: Driver Behavior Counts

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

When you give the car keys to your teenager for the first time, you wish you were sitting in the back seat controlling how they drive. Unfortunately, you have very limited control and the consequences of poor driving can be disastrous. It’s time to think of your employee drivers in a similar manner; these principles apply to your company’s fleet management program.

To gain some sense of control, you regularly perform fleet inspections and driver trainings. You also hire and manage according to driving records, which provides a picture of the employee’s past driving history. Though, if you are honest with yourself, you too have driven over the speed limit many, many times before you received your speeding ticket. So, a driving record is not the only way to gauge a driver’s behavior.

If you had an effective and efficient way to impact your driver’s behavior before a ticket or accident occurs, you would feel more confident about managing your fleet.

There are Global Positioning Systems (GPS) that can monitor some of the problem behaviors like speeding; however, the onus is on you (the employer) to analyze the information then act on it. Another problem with this type of system is willful negligence. What happens if you have the data, know of a problem, but don’t act? This could cause a major problem when an accident occurs because you knew of a driver’s poor behavior but did nothing specifically to correct it.

The insurance industry is in a commercial auto claims crisis. The cost of vehicle repairs have increased and whether you employ safe drivers or not the price to insure a vehicle is skyrocketing. Simply, the claims have exceeded the premiums collected and the carriers are trying to recover the loss. So, steering driver behavior is more important than ever for your bottom line.

To the degree you can control auto claims created by your employee drivers, the better your premiums will be. Fewer claims equal lower premiums — simple as that. Claims are caused from poor driving behavior. Improve drivers’ behavior on any given day, and you’ll reduce the number of accidents.

But, how do you do that?  Logistically, you can’t physically ride along with every employee to ensure they are driving safely, and offer real-time corrective guidance when they make mistakes.

As mentioned, there are GPS devises that measure driver behavior and performance. The devices will consolidate the information; but, it is up to the employer to analyze and act on the information.

Ask yourself, do I have enough time to consistently review this information and implement the correct plan of action? Do I have the resources available to manage this process?

If you are unsure and would like to learn about automated ways to track, manage and correct behaviors likes seatbelt usage, speeding, harsh braking, acceleration and corning, join us at our upcoming Fall workshop, “Driver Behavior is What Counts” and learn how to effectively and efficiently improve your fleet management practices and reduce premiums using smart technology.

In the meantime, if you have any questions, please contact Sam Clayton at (619)937-0167.

Time To Renew Your Bond Line of Credit

Author, Matt Gaynor, Director of Surety, Rancho Mesa Insurance Services, Inc.

The majority of Rancho Mesa’s contractor clients have a fiscal year, end of December 31, for their company financial statements. During March, April, and May we collect a variety of financial information from our contractors to update the bonding company. The underwriting items we request include the 12/31 CPA financial statement, along with the work in progress and closed contract schedules. We also request an updated bank letter, account receivable/account payable schedules, and a personal financial statement from the owner.

Once this information is collected, submitted to, and reviewed by the bond company, they may follow up with questions or require additional information to explain what has been submitted. They will also ask the bonding agent to request single bond and aggregate bond program “parameters” based on the contractor’s estimate of work over the next 12 months. This information forms the basis for the bond agent’s line of authority that the bond company will provide to the bond agent.

The line of authority provides the agent with approval to execute the bid, payment, and performance bonds for their contractor client within the negotiated single and aggregate limits. The bond agent line of authority also includes certain conditions that would fall outside the agent’s authority to approve the bond request; therefore, the agent would need to submit the request to the bond company for approval. Some of the conditions that fall outside automatic approval include:

a.) a bid spread in excess of 10% between the first and second bidder.

b.) a project located outside the contractors’ normal geographic area for work.

c.) the contractor taking over work of a defaulted contractor, etc.

The agent line of authority is an efficient way for the bond agent to service their contractor client accounts without requiring approval from the bond company for every project. Upon receipt of a new bond request, the agent will review the project information to ensure it falls within their authority, and then they will execute the bid or performance bond and deliver the bond to their client. The line will usually expire on April 30th of the following year – which restarts the process to collect the financial information for the bond company to renew the agent’s line for another year.    

If you would like a better understanding of how the bond line of authority affects your bond program, please contact Matt Gaynor, at (619) 937-0165.

Pollution Liability for Landscape Contractors

Author, Drew Garcia, Vice President, Landscape Group, Rancho Mesa Insurance Services, Inc.

Most landscape contractors believe their exposure to pollution is limited to the herbicides, pesticides, and fertilizers they apply. In order to provide some limited coverage for this it is common to see the Herbicide/Pesticide Endorsement added to the Commercial General Liability Policy. Although the endorsement extends some coverage, Contractor’s Pollution Liability would help fill the gaps created by the General Liability Policy for all of the landscape contractor’s pollution exposures. 

Remember, General Liability Policies do not provide coverage for pollution. Contractors Pollution is protecting your environmental liability, and in today’s world the awareness to preserve the environment has never been stronger. A landscape contractor’s exposure to environmental liability is considered “high” and classed as “high” along with drilling, subsurface, site/dirt work, paving, mechanical and electrical contractors to name a few. 

Landscape contractor operations are almost exclusively performed outdoors in the environment which is the result of the high exposure. Beyond herbicide, pesticide, chemical applications and the property damage or bodily injury that may arise from such operations, other material exposures would include but are not limited to; fuel, oil, fumes, hydraulic fluids, silica, foundry sand, manure, dust, waste, water, natural gas, propane and mold. 

The Herbicide Pesticide Endorsement is an essential piece to any landscape contractor’s insurance program; however, a Contractors Pollution Liability policy is the best way to transfer your environmental exposure. Not all pollution policies are the same: capacity, coverage, exclusions and deductibles need to be examined. Making sure you have a policy that fits your operations and your exposure is critical.

For questions about which policies may match your company’s risk, please contact Rancho Mesa Insurance Services, Inc. at (619) 937-0164.

What Do You Mean My Deductible Is Infinity?

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

Employment Practices Liability Insurance (EPLI)

Employment Practices Liability Insurance (EPLI) can protect companies from claims related to wrongful termination, discrimination, defamation, unfair hiring/firing practices, and wage and hour lawsuits. EPLI policies may also provide defense costs associated with responding to employment related lawsuits.

HIGHER THAN AVERAGE DEDUCTIBLES

With the increasing frequency of EPLI claims and 40% of California claims occurring within companies with less than 100 employees, deductibles have risen to previously unseen levels. It is now common to see per claim deductibles at a $10,000 starting point and jumping as high as $50,000. These higher retentions can, at times, deter many employers from securing coverage when they might need it most.

YOUR DEDUCTIBLE IS INFINITY

For those employers who elect to self-insure this exposure and go bare without a policy, there is a question that needs to be asked. What is your deductible without EPLI coverage? The simple, very possible answer is that it can be infinity. That is, an employer is responsible for the first dollar to defend along with any future negotiated settlement. That unknown is why many of our clients ultimately purchase EPLI as their balance sheet cannot absorb an infinite loss.

ATTENTION BUSINESS OWNERS!!!

In this unsettling time, across various workforces, it makes good business sense to consider EPLI options with varied deductible ranges. Having that clarity brings comfort to many clients who have worked years to build their business, acquire assets, and improve their net worth. Exposing their business to what could very well be unlimited costs creates considerable risk moving forward.

COMMON MISCONCEPTIONS

Misconception: “If I file an EPLI claim, I will owe the entire deductible upfront.”

Truth: When a claim is filed, policy holders will team up with an attorney who will bill hours until your self-insured retention is met. This could run the course of years with small bills being paid out over time.

Misconception: “I can’t afford to pay an entire annual premium at once, on top of my other insurance renewal premiums.”

Truth: Rancho Mesa can generate a finance plan that will allow you to pay your premiums over a 12 month period.

Misconception: “If I ever have a claim occur, I will just purchase a policy at that time to protect my business.”

Truth: EPLI carriers include prior acts exclusion for this very reason. Any claim that has been made, even in its infant stages, will be declined. You must have a policy in place in advance in order to protect yourself.

Misconception: “I have never had an EPLI claim. Why would I have one now?”

Truth: The California mandate AB 1825 and SB 1343 have increased awareness and visibility of employment related lawsuits. In light of workplace discrimination concerns and the #MeToo movement, the State of California requires all employers with more than 5 employees to conduct Sexual Harassment Prevention Training.

Misconception: “My general liability policy covers EPLI.”

Truth: General liability carriers exclude employment practices liability. If you were to file a claim they would deny coverage.

Business owners deserve a clear explanation of ways to protect themselves from insurable risk. If you would like to discuss how your business is protected, please contact Rancho Mesa Insurance Services, Inc. at (619) 937-0164.

Higher Workers' Compensation Premiums Linked to New Employee Injuries

Author, Drew Garcia, Vice President, Landscape Group, Rancho Mesa Insurance Services, Inc.

Based on Rancho Mesa Insurance Services’ clients’ information, we have been able to identify that the majority of work-related injuries occur within the first year of employment. During the first year, the majority of these claims occur in the first six months. Having a system for on-boarding and training new hires is a critical component to dealing with the heightened risk of injury during this time period.                                                                                                                       

New Hires Effect Risk Exposure

During the workers’ compensation underwriting process, companies are commonly asked if their payroll will continue to grow, stabilize, or decline. Underwriters can assume that with growing payrolls, the company will be hiring new employees. New employees will likely increase the probability of work-related injuries. Underwriters must take this information into consideration when justifying a premium that will cover the company’s complete risk exposure.

Mitigating the Increase in Premium  

It is extremely beneficial for the owner and insurance broker to relay the measures that their company has committed to train, manage, and track new hires. If you are looking for a way to improve your safety efforts, consider focusing on proper new employee onboarding and training to minimize the potential impact claims can have on your company.

Please reach out to Rancho Mesa’s Client Services Coordinator Alyssa Burley at (619) 438-6869 to learn more about the Risk Management Center and how you can improve your safety training.

Ensuring CA Sexual Harassment and Abusive Conduct Training is SB 1343 Compliant

Editor’s Note: This article was originally published on February 7, 2019 and has been updated for accuracy on September 12, 2019.

Author, Alyssa Burley, Client Services Coordinator, Rancho Mesa Insurance Services, Inc.

In September 2018, former California Governor Jerry Brown approved Senate Bill 1343 (SB 1343) which expanded the requirements for Sexual Harassment and Abusive Conduct Prevention training within California workplaces.

“An employer who employs 5 or more employees, including temporary or seasonal employees, [is required] to provide at least 2 hours of sexual harassment training to all supervisory employees and at least one hour of sexual harassment training to all nonsupervisory employees by January 1, 2020, and once every 2 years thereafter, as specified,” according to SB 1343. 

On August 30, 2019, approved Senate Bill 778 extends the training deadline set in Senate Bill 1343 from January 1, 2020 to January 1, 2021. The changes made by SB 778 not only extends the due date to January 1, 2021, but also addresses concerns about supervisory employees and clarifies when temporary workers must be trained. Read about these changes here.

Ensuring the Training is in Compliance

In order for the Sexual Harassment and Abusive Conduct Prevention training to be compliant, it must meet the following requirements. The training must:

• Be administered in a classroom setting, through interactive E-learning, or through a live webinar. E-learning training must provide instructions on how to contact a trainer who can answer questions within two business days.

• Be conducted by an eligible trainer:

  • Attorneys who have been members of the bar of any state for at least two years and whose practice includes employment law under the Fair Employment and Housing Act or Title VII of the federal Civil Rights Act of 1964;

  • Human resource professionals or harassment prevention consultants with at least two years of practical experience in:

    • Designing or conducting training on discrimination, retaliation, and sexual harassment prevention;

    • Responding to sexual harassment or other discrimination complaints;

    • Investigating sexual harassment complaints; or

    • Advising employers or employees about discrimination, retaliation, and sexual harassment prevention.

  • Law school, college, or university instructors with a post-graduate degree or California teaching credential and either 20 hours of instruction about employment law under the FEHA or Title VII.

• Explain the following topics:

  • The definition of sexual harassment under the Fair Employment and Housing Act and Title VII of the federal Civil Rights Act of 1964;

  • The statutes and case-law prohibiting and preventing sexual harassment;

  • The types of conduct that can be sexual harassment;

  • The remedies available for victims of sexual harassment;

  • Strategies to prevent sexual harassment;

  • Supervisors’ obligation to report harassment;

  • Practical examples of harassment;

  • The limited confidentiality of the complaint process;

  • Resources for victims of sexual harassment, including to whom they should report it;

  • How employers must correct harassing behavior;

  • What to do if a supervisor is personally accused of harassment;

  • The elements of an effective anti-harassment policy and how to use it;

  • “Abusive conduct” under Government Code section 12950.1, subdivision (g)(2).

  • Discuss harassment based on gender identity, gender expression, and sexual orientation, which shall include practical examples inclusive of harassment based on gender identity, gender expression, and sexual orientation.

• Include questions that assess learning, skill-building activities to assess understanding and application of content, and hypothetical scenarios about harassment with discussion questions.

SB 1343 compliant trainings will be made available later this year via the California Department of Fair Employment and Housing (DFEH) website. However, employers can hire eligible qualified trainers to conduct the trainings at their convenience.

The DFEH has made available a sexual harassment and abusive conduct prevention toolkit, that includes a sample Sexual Harassment and Abusive Conduct Prevention training, certificate of completion and other resources for employers to use in conjunction with an eligible trainer.

Other training options include the online Anti-Harassment training Rancho Mesa offers to all of its clients’ supervisors and employees throughout the country in response to California’s Senate Bill 1343 (SB 1343) and Senate Bill 1300 (SB 1300).

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

Rancho Mesa Insurance will continue to monitor training options as they become available.

California SB 1343 Expands Sexual Harassment and Abusive Conduct Prevention Training Requirements

Editor’s Note: This article was originally published on January 17, 2019 and has been updated for accuracy on September 12, 2019.

Author, Alyssa Burley, Client Services Coordinator, Rancho Mesa Insurance Services, Inc.

In September 2018, former California Governor Jerry Brown approved Senate Bill 1343 (SB 1343) which expands the requirements for Sexual Harassment and Abusive Conduct Prevention training within the workplace.

New Requirements

Prior to SB 1343, California Assembly Bill 1825, Assembly Bill 2053, and State Bill 396, required employers with 50 or more employees to provide supervisors with sexual harassment and abusive conduct prevention training every two years. SB 1343 drops the minimum number of employees to 5 and adds a requirement for training nonsupervisory employees.

According to Senate Bill 778, passed on August 30, 2019 which expands the training deadline, “By January 1, 2021, an employer having five or more employees shall provide at least two hours of classroom or other effective interactive training and education regarding sexual harassment to all supervisory employees and at least one hour of classroom or other effective interactive training and education regarding sexual harassment to all nonsupervisory employees in California. Thereafter, each employer covered by this section shall provide sexual harassment training and education to each employee in California once every two years.” 

The changes made by SB 778 not only extends the due date to January 1, 2021, but also addresses concerns about supervisory employees and clarifies when temporary workers must be trained. Read about the changes here.

Providing Training

The bills also requires the California Department of Fair Employment and Housing (DFEH), “develop or obtain two online training courses on the prevention of sexual harassment in the workplace. The course for nonsupervisory employees shall be one hour in length and the course for supervisory employees shall be two hours in length.” The department “expects to have such trainings available by late 2019,” according to a document provided by the DFEH. The online trainings are expected to be free for employers.

“In the interim period, DFEH is offering a sexual harassment and abusive conduct prevention toolkit, including a sample sexual harassment and abusive conduct prevention training. Employers may use the training in conjunction with an eligible trainer to provide sexual harassment and abusive conduct prevention training,” according to the DFEH.

An eligible trainer qualified to conduct this training would be:

• Attorneys who have been members of the bar of any state for at least two years and whose practice includes employment law under the Fair Employment and Housing Act or Title VII of the federal Civil Rights Act of 1964;

• Human resource professionals or harassment prevention consultants with at least two years of practical experience in:

  • Designing or conducting training on discrimination, retaliation, and sexual harassment prevention;

  • Responding to sexual harassment or other discrimination complaints;

  • Investigating sexual harassment complaints; or

  • Advising employers or employees about discrimination, retaliation, and sexual harassment prevention.

• Law school, college, or university instructors with a post-graduate degree or California teaching credential and either 20 hours of instruction about employment law under the FEHA or Title VII.

Note, DFEH does not issue licenses nor certificates validating a person’s qualifications to teach sexual harassment prevention training classes.

Other training options include the online Anti-Harassment training Rancho Mesa offers to all of its clients’ supervisors and employees throughout the country in response to California’s Senate Bill 1343 (SB 1343) and Senate Bill 1300 (SB 1300).

We also can recommend Equal Parts Consulting to provide in-person supervisor and/or employee training to those in San Diego and Orange Counties. To receive a discounted rate, please let them know you are a Rancho Mesa Insurance client.

Rancho Mesa Insurance will continue to monitor training options as they become available.

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

Resources

California Department of Fair Employment and Housing. "Sexual Harassment and Abusive Conduct Prevenetion Training Information for Employers.”
https://www.dfeh.ca.gov/wp-content/uploads/sites/32/2018/12/SB_1343_FAQs.pdf

California Department of Fair Employment and Housing. “Sexual Harassment FAQs.”
https://www.dfeh.ca.gov/resources/frequently-asked-questions/employment-faqs/sexual-harassment-faqs/

Reporting Serious Workers’ Compensation Injuries

Author, Jim Malone, Workers’ CompensationClaims Advocate, Rancho Mesa Insurance Services, Inc.

Workers’ Compensation injuries occur every day. The majority of these injuries are minor incidents which require no medical treatment or loss of time from work. For others, the injury is reported to the insurance carrier, the injury is addressed, forms are provided, and the recovery from the injury is monitored until the employee is released back to work and a discharge from care is provided.

However, serious injuries, illnesses or even deaths occasionally occur at work because of a work related accident. These incidents usually require 911 calls, hospitalizations, emergency surgeries, family contact, and a longer road to recovery. They may also require immediate (within 8-24 hours) reporting to the California Occupational Safety and Health Administration (Cal/OSHA), if they meet the criterion that has been established.

As defined in the California Code of Regulations Title 8 §330(h), serious injury or illness means any injury or illness occurring in a place of employment, or in connection with any employment that:

1. Requires inpatient hospitalization for a period in excess of 24 hours for other than medical observation.

2. Results in a loss of any member of the body.

3. Results in a serious degree of permanent disfigurement.

4. Results in the death of the employee.

Does not include any injury, illness, or death caused by the commission of a Penal Code violation, except the violation of Section 385 of the Penal Code, or an accident on a public street or highway.

The California Code of Regulations Title 8 §342(a) states, “every employer shall report immediately by telephone or telegraph to the nearest District Office of the Division of Occupational Safety & Health any serious injury or illness, or death, of an employee occurring in a place of employment or in connection with any employment. Immediate means as soon as practically possible but not longer than 8 hours after the employer knows or with diligent inquiry would have known of the serious injury or illness. If the employer can demonstrate that exigent circumstances exist, the time frame for the report may be made no longer than 24 hours after the incident.”

The 8-24 hour time frame begins when the employer knows, or “with diligent inquiry” would have known of the serious injury, illness, or death. The “employer” means someone in a management or supervisory capacity.

As with any injury or accident, it can be a difficult and confusing time for all those involved and affected. It may seem like many things need to be done all at once. That is, of course, impossible. So, prepare yourself now. Make a list of your responsibilities and important contact numbers before a serious injury or accident occurs.

The order in which you perform each of these responsibilities may differ, according to the type of injury or accident that occurs. However, you will still have your checklist and contact numbers ready to use to ensure you do not forget any particular step or obligation. This emergency list of telephone numbers may be your broker, safety/loss control specialist, claims administrator, or workers’ compensation claims advocate. We are all available to provide you with any assistance you may need.

For those in California, the Cal/OSHA District Office contact list is below. Ask for the officer of the day.

Concord (925) 602-6517
Oakland (510) 622-2916
San Francisco (415) 972-8670

Cal/OSHA Link: www.dir.ca.gov/title8/342.html

For additional information, please contact Rancho Mesa Insurance Services, Inc. at (619) 937-0164.

3 Key Differences Between Self-Insured Retention and Deductibles

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

Every business or non-profit that purchases a form of liability insurance has seen the term deductible or self-insured retention (SIR). While many know the difference between the two, many do not. Deductibles and SIRs, while quite different, are both designed to keep your premiums down. Insurers are willing to reduce the premium on policies, which have a deductible or SIR, because the insured assumes some of the risk. This however, is where the similarities end.

Below are the three key differences between self-insured retention and deductibles:

1. With a deductible, the insured notifies the insurer when there is a claim. The insurer provides immediate defense, pays for any losses incurred and then collects reimbursement from the policyholder after the claims is closed, up to the deductible amount. Under an SIR, the insured is still required to notify the insurer of any claim. The insured will immediately begin to make payments on that claim until the SIR is satisfied. At that point, the insurer will take over.

2. Deductibles erode the limit of your insurance policy, while SIR(s) do not. Let’s assume you have a standard $1 million policy limit with a $50,000 deductible. In the event of a loss, the insurer will be responsible for $950,000, since the insured is required to reimburse the insurer for the full deductible amount. Under the SIR, the insured is immediately responsible for the first $50,000 of any one claim, and the insurance company is responsible for the full $1 million limit.

3. Large deductibles often require that the insured provide a letter of credit or some other acceptable form of collateral to cover expected losses that occur within the deductible. With SIR(s), the insurer has no responsibility for paying losses until the SIR is exhausted; therefore, no collateral is required.

When reviewing your coverages and limits, if you see the terms ‘self-insured retention’ and/or ‘deductible’ please understand the terms may seem interchangeable, but there are major differences. Please contact Rancho Mesa at (619) 937-0164 with any further questions.

Developing an Effective Injury and Illness Prevention Program (IIPP)

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

If you have operated a business in the state of California for any period of time, you have very likely heard about or run across the acronym IIPP. Wherever you stand with your knowledge within the world of safety, injury, and illness, it is important for every organization to understand the mandatory parts of an IIPP. What is often overlooked is how developing an effective safety program can create positive change and truly impact your bottom line.

What is an IIPP?

An Injury and Illness Prevention Program (IIPP) is a required written workplace safety document that must be maintained by California employers (Title 8 of the CA code of regulations, section 3203). These regulations require eight (8) specific elements that are summarized below. In many cases, this process requires direct questions about how the company currently views and manages safety. Answering these questions will begin to highlight the positive aspects of what already is currently in place and shed light on areas that need improvement.

Responsibility

Clarifying the name, title and contact information for the person(s) with overall responsibility for the IIPP is a critical first step to this process. Making the IIPP available and accessible at all business locations becomes the first task of the “responsible person.”

Compliance

What is the content of the company’s safety meetings? Who runs those meetings? How do you discipline employees if they do not follow safety guidelines? How might the company recognize or reward their employees for safe practices or behavior?

Communication

Safety meetings are held on what type of schedule within your organization? How can employees anonymously notify management of safety and health concerns without fear of reprisal? Is there a safety committee in place that provides communication to all employees? If not, who would be considered as important members of that committee?

Hazard Assessment

Who within the company is responsible for periodic inspections to identify and evaluate workplace hazards? Provide detail on this schedule along with accompanying documentation that these visits occurred. Continuously communicating with employees for feedback and constantly reviewing hazards on a jobsite or within the workplace are crucial. Lastly, does the company use a standard or tailored JHA (Job Hazard Analysis) checklist to accomplish this? Re-visiting these checklists regularly as exposures change is critical to reducing claim frequency.

Accident/Exposure Investigation

Post-accident, who is the name of the person within the organization responsible for conducting those investigations? What type of form or checklist are you using to establish “root causes” of the accident or injury? And, back to the compliance section, what type of discipline could be handed down in the event of employee error that causes an accident or injury?

Hazard Correction

After the company has identified the hazard and determined exactly how and why an incident occurred, the IIPP must provide detail on how the company will correct the problem from happening again. One solid first step can include a review of Personal Protective Equipment (PPE) use. That is, did the equipment being used cause the accident or injury and, if yes, why? Answering the\is question may show that the piece of equipment was not appropriate for the task, or the item was defective or too old, which caused failure.

Training and Instruction

Ongoing and job specific training and instruction are really the lifeblood of any truly effective IIPP. Presenting the information in a clear, concise format that is easily understood is often the most difficult task in this process. Yet, it remains perhaps the most important as it is vital that employees are continually educated and RETAIN their instruction. Peeling back this process with managers, foreman, superintendents, etc. and learning specifically how the training is being disseminated, allows for a true baseline to be established.

Recordkeeping

Document, document, document! While establishing a written version of the IIPP might be the first step, and revising/editing on an annual basis is recommended, having the proper documentation that accompanies each section is just as important. This provides the responsible person(s) an important tool to continually compare the company’s actions, trainings, assessments and prevention techniques with the available documentation.

Can An Effective IIPP Impact my Bottom Line?

Building an effective IIPP means that the document represents a part of the company’s culture. For it to be meaningful and have a real impact on reducing workplace injuries and illnesses, it must reflect what your company is actually doing on a day to day basis. As the company’s ownership ties this into the overall business, building the IIPP from the ground up into a living, breathing document has measurable impact on controllable costs like workers’ compensation. Reducing frequency of injury can help lower the experience modification, improve the loss ratio, and establish a solid risk profile in the insurance marketplace. Having the supporting documentation along with specific examples of forms, checklists and assessments can arm an insurance broker with the tools they need in the marketplace. More specifically, this information provides a broker important leverage points when negotiating the most competitive terms possible for the employer with the insurance carrier’s underwriter. Those points can lead directly to premium savings, which leads to healthier margins and stronger profitability. Build the IIPP because it is a CA state requirement and it is the right thing to do. But, believe that building a first class safety program will absolutely lower your long-term insurance costs.

For a sample IIPP, visit the Risk Management Center or contact Alyssa Burley at (619) 438-6869.

Six Reasons for Promptly Reporting a Workers’ Compensation Claim

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

Reporting workers’ compensation claims in a timely manner can have a huge impact on the severity of the claim. Some policyholders believe the practice of not reporting employee injuries early is a good business practice. This could not be further from the truth. Below are six reasons why reporting claims early can reduce the overall impact of a claim on an employer’s insurance premiums:

1. Lowers the cost of a claim – The cost of a claim gets higher and higher for each day it is not reported. Claims reported after 30 days of the injury on average cost 30% more than those reported right away.

2. Ensures that key evidence is secured – The prompt reporting of a claim allows the claims adjuster to ensure key evidence is preserved. It also ensures that the supervisor’s accident report and witness statements are taken while things are still fresh in their minds.

3. Potential hazards are identified as early as possible – When an injury or near miss occurs, there should be an accident investigation completed to find out the root cause of the injury. Identifying the cause or potential hazard will reduce the likelihood of a similar claim from occurring in the future. It can also be useful as a training topic during safety-related meetings.

4. Could identify “red flags” for fraud – It is very important to understand that an insurance company only has 90 days from the employer’s (or their management or supervisors) date of knowledge to accept or deny a claim. If the claim is reported late, it leaves the adjuster little time to investigate the validity of a claim, which might force them to accept it. If the claim is reported 90 or more days after the date of knowledge, the adjuster has no choice but to accept the claim. The impact of a fraudulent claim can have a significant effect on future workers’ compensation pricing.

5. Reduces litigation – When an injury claim is not reported in a timely manner by the employer, it can make the injured employee feel neglected or disgruntled. Reporting the claim early, showing compassion towards the employee, and keeping the lines of communication open will significantly reduce the likelihood of a litigated claim. Employees need to feel they are going to be taken care of medically and still have a job at the company. Employees are more likely to hire an attorney when they feel uneasy about their job security or they are not receiving proper treatment. When a claim becomes litigated, it typically prolongs the time it takes to close the claim and increases the cost by an average of 30%.

6. Untreated medical only injuries could develop into indemnity claims – A small percentage of medical only claims can turn into indemnity claims as a result of unforeseen complications. For example, if an employee has a small metal shard stuck in their finger and chooses not to receive treatment, the finger could become infected, require surgery, and ultimately cause nerve damage. Had this injury been properly treated from the beginning, it likely would have simply been a first aid claim. Early treatment is key to minimizing indemnity claims.

Quickly reporting claims is simply one risk management strategy to controlling a business’s insurance costs. To discuss this strategy and others please feel free to contact Rancho Mesa Insurance at 619-937-0174.

15 Tips for Reducing Exposures When Performing Median Work

Author, Drew Garcia, Vice President, Landscape Group, Rancho Mesa Insurance Services, Inc.

Many city contracts and some residential communities will call for landscape contractors to install, maintain, or remodel road dividing medians. The potential risk for injury that can occur due to this exposure is highly severe. If your operations include any percentage of median work, then be sure to understand this increases your overall risk profile and slides the operations needle towards “heavy” in class.

Are you going above and beyond to prevent injuries from occurring as a result of your median work? Here are some quick safety tips you can implement today to better protect your employees from median work related injuries:

1. Eliminate median work when possible. This is the quickest way to completely separate employees from the exposure.

2. Consider the time of day as it relates to visibility and traffic for both vehicles and pedestrians.

3. Employee familiarity

4. Proper signage and cones

5. Is someone on staff trained as a competent traffic control person?

6. Has a Job Hazard Analysis been completed before work begins?

7. High visibility clothing (vests or shirts)

8. Employees should face oncoming traffic as much as possible when working in / near a street.

9. Ensure work zone buffer space is great enough to provide adequate recovery area for errant vehicles.

10. What is escape route in case a vehicle crosses into the work zone?

11. Communicate the importance of maintaining an escape route with project managers and landscaper crews.

12. Make modifications to temporary traffic control, if necessary.

13. Do not park vehicles in the buffer space.

14. Be aware of pedestrian traffic near work site. Is there a clear path for pedestrians to travel safely, including those with mobility issues such as the elderly or disabled?

15. Ensure a Heat Illness Prevention plan is in place during hot months.

Note, these are only suggestions and all may not apply to your particular exposure. Consult with a safety specialist for proper training and work site safety procedures.

For questions about how median work can affect a company’s risk profile, contact Rancho Mesa Insurance Services, Inc. at (619) 937-0164.

California SB 1343 Expands Sexual Harassment Training Requirements

Editor’s Note: This article was originally published on November 15, 2018 and has been updated for accuracy on September 12, 2019.

Author, Alyssa Burley, Client Services Coordinator, Rancho Mesa Insurance Services, Inc,

On September 30, 2018, California Governor Jerry Brown, approved Senate Bill 1343 (SB 1343), which expands rules for required sexual harassment prevention training for businesses.

According to the passing of Senate Bill 778, approved on August 30, 2019, by January 1, 2021, employers with 5 more employees must provide at least 2 hours of sexual harassment prevention training and at least 1 hour of training to non-supervisory employees every 2 years.

The bill requires “the Department of Fair Employment and Housing (DFEH) to develop or obtain 1-hour and 2-hour online training courses on the prevention of sexual harassment in the workplace, as specified, and to post the courses on the department’s Internet Web site. The bill also requires the department to make existing informational posters and fact sheets, as well as the online training courses regarding sexual harassment prevention, available to employers and to members of the public in specified alternate languages on the department’s Internet Web site.” However, the DFEH currently does not have the required training materials available, as of yet.

Rancho Mesa offers free Anti-Harassment training to all of its clients’ supervisors and employees throughout the country in response to California’s Senate Bill 1343 (SB 1343) and Senate Bill 1300 (SB 1300). The deadline for this training is January 1, 2021, according to Senate Bill 778.

Until the DFEH releases its supervisor and employee sexual harassment prevention trainings, Rancho Mesa recommends devising a training schedule/plan for your supervisors and employees in order to meet the January 1, 2021 deadline.

Resources:
legislature.ca.gov: SB-1343 Employers: sexual harassment training: requirements
legislature.ca.gov: SB-778 Employers: sexual harassment training: requirements

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

California Insurance Commissioner Announces Rate Cuts for 2019

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

California employers received some great news regarding their Workers Compensation premiums for 2019. On November 6, 2018, Insurance Commissioner Dave Jones recently announced his decision to cut California Workers’ Compensation advisory pure premium rates by 8.4% significantly higher than the initial recommended 4.5%. This change will affect policies that renew or incept on or after January 1, 2019.

To learn more about how this decrease will affect your company’s workers’ compensation premium in 2019, contact Rancho Mesa Insurance Services at (619) 937-0164.

What is a Surety Bondability Letter?

Author, Matt Gaynor, Director of Surety, Rancho Mesa Insurance Services, Inc.

When an owner or general contractor is looking to pre-qualify a contractor for a specific project, they will often request the contractor to submit a bondability letter from their bond agent. The bondability letter provides the owner with an assurance that the contractor has been underwritten and approved by a surety company for support of a specific project. The bondability letter is issued for no cost (it is regarded as a standard service provided by the bond agent).

The typical bondability letter contains the following information:

a.) How long the bond company has been providing bonding for the contractor,

b.) The A.M. Best rating of the bond company (typically required to be “A” or above),

c.) Confirms that the bond company is on the U.S. Treasury approved list, and that the bond company is licensed in the state where the work is to be performed,

d.) Provides the single and aggregate bond limits that the bond company will support the contractor,

e.) Includes contact information of the bond agent for follow-up if the owner or general contractor has additional questions.

Although the bondability letter is non-binding and does not provide the same assurance that a bid, performance, or payment bond would provide, it is still a useful pre-qualification tool that does not require the contractor to spend any money.

If you are looking for an inexpensive way to pre-qualify your company with an owner, work with a Rancho Mesa Insurance for assistance with a bond program.

Cal/OSHA Issues Electronic Filing Requirement For 2017 OSHA 300A Form

Author, Alyssa Burley, Client Services Coordinator, Rancho Mesa Insurance Services, Inc.

In April 2018, federal OSHA announced all affected employers are required to submit injury and illness data (i.e., Form 300A data) via the Injury Tracking Application (ITA) online portal by July 1, 2018, even if the employer is covered by a state plan like those in California, Maryland, Minnesota, South Carolina, Utah, Washington or Wyoming.

Cal/OSHA then issued a statement in May 2018, advising affected employers “to comply with federal OSHA’s directive to provide Form 300A data covering calendar year 2017," even though it was not a Cal/OSHA requirement.

“On November 1, 2018,” according to the Cal/OSHA website, “the Office of Administrative Law approved the emergency action. This means that the employers in California described below are now required to submit Form 300A data covering calendar year 2017 by December 31, 2018. These employers should follow the instructions posted at federal OSHA's ITA website:

Check Appendix H for your industry. It includes industries like: Construction; Community/Nursing/Residential Care facilities; Community Food/Housing Relief Services; and many more.

• All employers with 250 or more employees, unless specifically exempted by section 14300.2 of title 8 of the California Code of Regulations

• Employers with 20 to 249 employees in the specific industries listed in Appendix H of the emergency regulations.”

This emergency action by the Office of Administrative Law brings Cal/OSHA’s requirements up to the federal OSHA’s minimum standards, with one difference. Federal OSHA required affected employers covered by state plans to submit the 2017 Form 300A data electronically by July 1, 2018, while this new action requires affected California employers to submit the data by December 31, 2018.

Since the Federal OSHA deadline has already passed, it is recommended that all affected employers in California who have not already submitted the 2017 Form 300A data via the ITA, submit it as soon as possible, but no later than December 31, 2018.

Next year, the deadline for electronically submitting 2018 Form 300A data will be March 2, 2019.

Rancho Mesa has put together a 9-minute tutorial video on how to generate the electronic Form 300A data file from the Risk Management Center, that can be uploaded to the ITA website for reporting the data.

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