In the aftermath of California’s aggressive attempts to crack down on the “gig” economy, other states have moved as well, though often in different directions. While many states have moved to pass laws specifically designed to protect the status of “gig” workers, New Jersey is in the process of passing its own attempt to regulate these workers. Indeed, the proposed New Jersey legislation would go so far that it would classify almost all workers in the state as employees and make it incredibly difficult for someone to claim independent contractor status.
While the world steps through the global pandemic, we know our clients are facing the same questions, concerns, and decisions that we are grappling with. The collective safety of our employees, families, clients, and your business interests weigh heavily on everyone’s mind. Disaster planning can only take you so far when experiencing anything of this magnitude.
How does insurance play into the events unfolding? Insurance policies address coverage in general terms. The specific circumstances around each loss or situation will determine whether or not coverage applies. However, in general terms, we’d like to share an overview of the potential claims issues in various lines of coverage and how those policies might respond.
There has been an ongoing fight over how to define employees for the past few decades. As technology has re-shaped the workforce, this fight has gotten more intense. State and federal governments have struggled to set clear lines dividing independent contractors from employees for a number of purposes, including taxation and the application of workplace benefits. These benefits and taxes add on average 20% to 30% to the cost of hiring and paying a worker.
Workers compensation is often defined as an exclusive remedy for employees injured on the job. Like with all laws however, there are exceptions. Intentional injuries have long existed as one of those exceptions to the exclusive remedy rule for workers’ compensation. Now, a recent ruling by the Supreme Court of Oklahoma has the potential to substantially expand that exception, leaving certain safety-indifferent employers facing greater exposure to lawsuits when an employee is injured.
The Separation of Insureds is a standard policy condition of the commercial general liability policy. Also known as the severability of interests, the condition serves several purposes. Still, it can be quite complicated to understand in some of those contexts. As it is increasingly common for contractors to request or demand a separation of insured provision within a business’s insurance policy, companies should make sure they understand the term and how it might affect them.
Workers compensation systems exist to take workplace injuries out of the courtroom and resolve those claims in a more cost effective way without worrying about fault. Many employers purchase their workers compensation policies simply as a matter of necessity. But these policies cover more than just the statutory workers compensation scheme.
On April 1, 2019, the Department of Labor proposed a new regulation, and it wasn’t an April Fool’s joke. The new regulation would seek to update the Department’s sixty year old test for determining joint employer relationships under the Fair Labor Standards Act. It is worth noting that this is different from the long running dispute over the joint employer test decided by the National Labor Relations Board as a part of its 2013 Browning-Ferris decision. This new rule would apply to allegations that employers had failed to pay their workers legally obligated wages under the Fair Labor Standards Act. Joint employers would be jointly and severely liable for any ordered back pay.
The Fair Labor Standards Act sets national standards for wage and hour issues related to employees. The law empowers the Department of Labor to set eligibility standards for overtime pay as well as a series of exemptions for it. On March 7th, 2019, the Department of Labor issued a Notice of Proposed Rulemaking that will change those eligibility standards significantly.
The Fair Labor Standards Act sets national standards for wage and hour issues related to employees. The law empowers the Department of Labor to set eligibility standards for overtime pay as well as a series of exemptions for it. Employees who qualify for overtime under the law receive time-and-a-half pay for hours worked more than forty hours a week. Time-and-a-half pay is a 50% increase to the employee’s “regular rate of pay.”