Have you taken the necessary steps to secure protection for your company and your employees?   Employee benefit plans are an essential part of a compensation package to attract and retain committed, quality employees. However, employers need to understand the risks involved if the benefits are incorrectly administered. Not only is a liability created for the company, but the employee (fiduciary) involved in managing these plans are also personally liable if they breach their duties, putting their personal assets at risk.   Following are important facts to know regarding this exposure.

FIDUCIARY LIABILITY INSURANCE

A Fiduciary Liability policy protects your company and the personal assets of fiduciaries for their breaches of fiduciary duties and errors in the administration of your company's benefit plan.   Often this insurance is confused with the following that provides some coverage in connection with employee benefit plans:   ERISA Fidelity Bonds are required by law and intended to protect plans against theft or fraud losses. This bond benefits the plan and beneficiaries but does not protect the fiduciary. The bond does not provide any form of payment for legal defenses or damages related to fiduciary claims.   Employee Benefits Liability (EBL) protects benefit managers for claims arising out of errors or omissions while administering a benefit plan - enrolling, terminating, or canceling employees under a plan, changing beneficiaries, etc. Such policies cover the typical minor administrative issues that arise.   Protection for fiduciaries is not afforded either by Directors & Officers (D&O) policies as they typically exclude EBL and ERISA related claims.   Your company's risk management program should include adequate fiduciary liability protection regardless of your company size.

Benefit Plans Include: ERISA Sponsored Plans Employee Benefit Pension Plans Employee Benefit Plan not Subject to ERISA Employee Welfare Plans - Medical, Dental, Life Government Mandated Plans - Workers Compensation, Unemployment, Social Security, Disability Fiduciary Obligations: Act in the best interest of the plan participants Act with the care, skill, and diligence that a prudent person would use in a similar situation Diversify plan assets Follow plan documents

Sources of Fiduciary Claims: Plan Participants Participant's Legal Representatives Estates or Spouses Dept. of Labor Pension Benefit Guaranty Corp. Sample Claim Allegations: Lack of or Erroneous Advice Reduction in Benefits Wrongful Denial or Improper Change in Benefits Breach of Fiduciary Responsibilities Irresponsible Investments Lack of Investment Diversification Negligence in Plan Administration Negligence in Plan Creation Conflict of Interest with Investment Options Improper Disclosure Imprudent Selection or Monitoring of 3rd Party Service Providers

Employer COVID-19 Failures Lead to OSHA Penalties OSHA has been citing establishments for violations related to COVID-19, resulting in more than $1 million in penalties. Looking at OSHA's weekly announcements of penalty totals and the number of establishments cited gives insight into how they enforce compliance with COVID-19 workplace safety guidelines. Some of the common citations are for failure to: Implement a written respiratory protection program; Provide medical evaluations, respirator fit testing, and training on the proper use of a respirator and personal protective equipment; Report an injury, illness, or fatality; Record injuries or illnesses on OSHA recordkeeping forms; and Comply with the OSH Act general duty clause. For more info, visit OSHA COVID Resource Page.

FMCSA Extends and Expands COVID-19 Trucking Exemptions The Federal Motor Carrier Safety Administration expanded and extended the emergency declaration that provides truck drivers an exemption from Parts 390 to 399 of the federal motor carrier regulations (including hours of service, vehicle inspection, and driver qualification rules). Read more

Looking Ahead at the Potential Biden Administration Impact on the HR Landscape Without any time for preparation, the pandemic forced HR professionals to quickly adapt their organization's policies and handbooks for changes in operations and to remain in compliance with legislative changes. With the pending change in the presidency, most likely, further changes are ahead for the HR landscape. It's impossible to predict precisely what employers may face but taking a look at Biden's platform gives some insight to key areas to watch closely to be prepared. Read more

CDC Announces Shorter Quarantine Guidelines After a COVID-19 Exposure The CDC’s updated guidance allows for the following quarantine periods for those who may have been exposed to COVID-19 but are without symptoms: Ten-day quarantine period—An individual may end quarantine 10 days after exposure if the individual does not take a COVID-19 test.   Seven-day quarantine period—An individual may end quarantine seven days after exposure if the individual tests negative for COVID-19. While offering these shorter alternatives, the CDC still recommends a 14-day quarantine as the safest option.    These updated quarantine guidelines come after the CDC studied the incubation period for COVID-19. The agency hopes that this shortened period will improve compliance among the general public and lessen extended quarantine periods' negative economic impact. As the COVID-19 pandemic evolves, the CDC continues to update guidance for preventing the spread of COVID-19.

Pfizer COVID-19 Vaccine Of course, all eyes are on the recently released Pfizer vaccine, including distribution handling and the timeline for availability to the general population. Many employers are already questioning if they can require employees to be vaccinated once it is available.   The initial opinion of legal experts is that employers will have a case to mandate vaccination if the employee's failure to be vaccinated creates a direct threat to other employees, customers, or the general public if the workplace's nature allows the virus to be easily transmitted and become rampant. Of course, exceptions are expected for disabilities, etc.   Remember to consult your attorney before your organization implements a policy relating to vaccination requirements.

Annually, the second full week of January is recognized as Home Office Safety and Security Week to raise awareness of potential safety and security concerns that remote employees may encounter while working from home and identify methods for mitigating these problems.   Especially amid the ongoing COVID-19, which has forced many employers to transition to remote operation, it's crucial to take steps to protect your employees' safety and security while they work from home.   Consider implementing the following measures: Encourage employees to set up their home workstations with ergonomics in mind. Require routine cybersecurity training for all employees. Establish workplace policies and procedures that prioritize remote cybersecurity. Schedule regular check-ins with employees to ensure they are comfortable and satisfied with their remote work arrangements.  Some employees may struggle with work quantity and quality while working remotely. Read more for ways to manage remote poor performance.

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