There are several components that go into developing an effective risk management program for your volunteer operations.  Two of the most critical functions begin with the Screening and Orientation Process.

SCREENING POLICY

• Establish a screening policy that outlines which positions will require more extensive screening i.e. criminal history/background check.
• Volunteers that work directly with a vulnerable population i.e. seniors, children, disabled, home-bound, etc., should have a criminal history screening.
• Volunteers that work with or around sensitive data should also have a criminal history screening so as to ward off potential cyber or financial liability problems.
• Verify the volunteer’s applications and credentials as well as follow-up on reference checks.
• If volunteers are required to use their own vehicles or drive agency-owned vehicles, verify their current automobile insurance plus obtain a copy of their current driving record (Motor Vehicle Report).

ORIENTATION POLICY

• The amount of time needed for training will depend on the nature of the job. 
• Inform the volunteer of the policies and procedures of the organization.
• Volunteers should have a position description that outlines their duties.
• Orientation training should include clear information on Acceptable Conduct, Grievance Policy, Safety Procedures and Emergency Procedures

Proper documentation is critical for a well run risk management program.  Volunteers should sign an acknowledgement indicating that they have read and agree to abide by the nonprofit’s policies, including a waiver of liability.

*This is intended for informational purposes only

Employers must begin using the updated Form I-9 immediately for all new hires.  A 60 day transitional period is available.  All employers must use the updated form for new hires by May 7, 2013. Employers should not execute new Forms for existing employees who do not require verification.

Consult with your HR Professional or legal counsel for advice.

This is intended for informational purposes only.

According to the U.S. Equal Employment Opportunity Commission (EEOC), 99,947 discrimination charges were filed in 2011.  Employees file charges under multiple cateogories.  One way to help protect your organization is to develop and adhere to an employee handbook.

Employee handbooks can help reduce your liability exposure, by providing some defense if you wind up in court!  The handbook tells employees what you expect of them and what they can expect from you.  Make it one of the first documents you give your new empoylee and it should be reviewed and updated regularly! Also, make sure to have your employees sign off that they received the handbook and updates.  This acknowledgement may be your first line of defense if an employee claims ignorance about a particular policy.

There are serveral resources for developing an employee handbook.  We recommend that you have an experienced H.R. firm or employment lawyer review the handbook before you distribute it.  Our vendor partners can also assist you with your employee handbook at discounted prices.

There have been a dramatic increase in Emplyment Related Claims in California.  Employment Practice Liability insurance carriers have increased their deductibles and premiums.  It is therefore critical to implement effective risk management practices that include updated employee hadnbooks, so as to decrease potential employment related claims.

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Permanent Disability (PD) Increase-This law increases the PD benefits by approximately$740 million per year, phased in over a two-year period. It will also do the following:

. Eliminate sleep disorder and sexual dysfunction “add-ons” to primary injuries that do not include these injuries when calculating the level of PD, while still requiring appropriate medical treatment for these injuries. This elimination is not applicable to catastrophic injuries or claims involving a violent workplace incident.

♦ Creates a return-to-work program based on a $120 million budget that is annually derived from the Workers’ Compensation Admin Revolving Fund (WCARF) for making supplemental payments to workers whose PD benefits are disproportionately low in comparison to their earnings loss.

Medical Provider Networks (MPNs)-Several legal changes will be made involving MPNs-

♦ Requires all MPNs to have a “medical access assistant” to aid injured workers in obtaining appointments or referrals within the MPN.

♦ Limits the reasons that can be used to seek treatment outside of the MPNs and establishes a process to resolve any disputes about whether the injured worker is required to be treated within the MPN.

♦ Requires an MPN to obtain a written acknowledgement from a physician that the physican agrees to be in the MPN.

♦ Requires a physician who knows or should have known that the patient is suffering from an occupational injury to notify the employer within five days that the injured worker is being treated outside the MPN and prohibits payment by an employer or insurer for any treatment provided to the injured worker when the notice requirements have not been complied with.

Independent Medical Review- (IMR) System-SB 863 establishes a new system for adjudicating certain medical treatment disputes. The system is set to avoid the lengthy litigation process and streamline medical treatment disputes. The IMR provision in the new law will eliminate the WCAB’s authority to adjudicate medical treatment disputes that are directed to the IMR process.

• IMR system establishes penalties up to $5000 per day for the employer’s failure to notify an injured worker of his or her right to IMR, or failure to implement a decision by IMR favorable to the injured worker.

Qualified Medical Evaluators (QMEs) -The new law will reduce the scope of evaluations thatQME’s perform by establishing an IMR system.

Independent Bill Review (IBR) – The new law establishes an IBR process to take billing disputes out of the jurisdiction of the WCAB.

Utilization Review (UR) – A UR decision to modify or deny a treatment recommendation would remain in effect for 12 months from the date of the decision without further action by the employer unless there is a documented change in the facts material to the basis of the UR decision.

Supplemental Job Displacement Benefits (SJDB) – The new law modifies the SJDB rules to limit the amount of the voucher to $6,000 regardless of PD percentage; prohibits chasing out the voucher settlements; establishes which schools are qualified to be paid by retaining the voucher; limits the period of time during which the voucher is valid to two (2) years; and specifies that an injury that occurs during training does not constitute a compensable injury.

Liens — The new law establishes a $150 filing fee for new liens and $100 activation fee for liens filed prior to January 1, 2013. It establishes a time limit for filing liens of three (3) years after the date of injury or 18 months after the date services are provided.

Summary

It is too soon to evaluate how the new measures under SB863 will impact the overall workers’ compensation system in California. The purpose of SB863 is to streamline the workers’ compensation system so as to offset increases in permanent disability benefits. SB863 creates many significant changes in the arenas of permanent disability, psychological/sleep/sexual claims, medical treatment, liens, vouchers, etc. Challenges to SB863 will take some time winding its way through the courts. According to the Workers’ Compensation Insurance Rating Bureau, the net effect estimated to be annual savings of approximately 1.4%. We will have to wait and see how this new legislation will play out in California over the next few years.

*For informational purposes only

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*This is intended for informational purposes only. Contact your attorney for legal information.

The TICF assessment is processed annually as long as your ExMod is over 125%. The assessment is calculated based on your annual payroll. Once you ExMod drops below 125%, you are no longer subject to a TICF assessment.

CAL OSHA will consider reducing your  TICF assessment if you are a non profit. They will require your audited tax statements showing the percentage of federal grant monies received and percentage of donations. You must fax this information to

510-286-7034. The TICF Unit will inform you directly if a reduction is granted. Note that the Labor Code levies a 25% late penalty on all unpaid assessments. Therefore you should pay the assessment until it is determined that the assessment could be lower. At that point, you can initiate the refund process.

Let us know if we can be of any assistance.

*For educational purposes only 

1. Make sure that unpaid interns are insured for professional liability coverage if they providing a professional, educational or technical service to your organization.

2. Unpaid interns are usually not required to be covered under workers compensation if they meet the criteria of “Unpaid Interns”. Your attorney or HR administrator can best assess if workers compensation coverage should be purchased. Your organization should address the policy issue of how to address injured interns.  Many clients opt to purchase Accident Coverage for the unpaid interns. This coverage does not replace the benefits offered under workers compensation but does provide some basic medical coverage.  If you purchase accident coverage, make sure to purchase high enough limits to adequately protect the interns. Most accident policies are usually excess over any other valid health plan.

3. Make sure interns are adequately screened (fingerprinted) before interning for your organization. This is especially important if you want to keep or purchase Abuse and Molestation Coverage.

4. If the unpaid intern is given some “perks” (small scholarship, parking or meal allowance, expenses, etc.), discuss with your attorney whether the intern should be added to your workers’ compensation policy. There can be a  fine line between an unpaid intern and an employee with regard to California Workers’ Compensation Law.

5. Agreements with other institutions (i.e. university, high school, etc.) involving the “hiring” of interns needs to be reviewed for compliance issues.

Call us if we can be of assistance with your insurance needs. We are here to help.

* This is for educational purposes only. Consult your attorney with regard to employment or worker’s compensation law.

According to the Department of Labor there were 40,000 wage-and-hour complaints during 2010, a 15% increase from 2009. Generally speaking, claims fall into two major categories: misclassification of workers as exempt, and unpaid overtime. Additionally, there is the problem with employers misclassifying employees as independent contractors.

It is important for employers to be in full compliance with labor requirements and to invest in an effective and comprehensive H.R. risk management program. The complexity of regulations make it difficult for employers to be in full compliance, but it is imperative to focus on the proper classification of employees and observance of overtime regulation. Relying on insurance to help offset wage-and-hour legal costs may prove to be very costly.

* This is for educational purposes only.

Developing a comprehensive safety checklist can help in planning your event or fundraiser. Part of this checklist should include a Special Events Insurance Review with your insurance broker.  Keeping proper records will help in identifying and controlling risks. Events usually require inspections, contracts and insurance for the event.  Having the appropriate agreements in place will go a long way toward a successful event.

Your Safety Checklist should include the following items:

First Aid/Communication Policy

* Mobile communication between event personnel, first aid and security

Permits, Licenses and Registration

* Food Handling/sales permits

* Liquor Licenses/permits obtained

Parking

* Sufficient number, type and handicap accessible

Food Safety

* Adequate refrigeration, storage, heat and prep areas

* Licensed/certified food handlers

Alcohol Safety

* Adequate Training for serving of alcohol

* Cut Off Time for Serving Alcohol at least one hour prior to end of event

* Required identification, wristbands

* Make alternative transportation available

Fire Prevention

* Check fire detection and suppression systems

* Train personnel on use and response

Staff and Contractors

* Background screening

* Copies of applications and resumes

Call us if we can be of assistance with your Special Events Insurance or if you would like a Complete Special Events Checklist.  We represent the leading insurance carriers for Special Events Liability Coverage. We are here to help with all of your insurance needs.

This is for educational purposes only.