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By gaining a better understanding of employee preferences with Benefitwave, a Midwest-based engineering firm with over 400 employees received valuable insights on where to invest and what changes to implement in their benefits packages for 2025. What is BenefitWave? BenefitWave is a survey tool that transforms traditional feedback methods. Leveraging cutting-edge technology and drawing on decades of consulting expertise, we help unravel what truly matters to employees by presenting benefit trade-offs to help employers better understand employees' benefit preferences to maximize their benefits program. The Situation The engineering firm sought to gain deeper insights into what their employees valued most as they considered potential changes to their benefits offerings. The company was evaluating several modifications, including: Slight adjustments to the medical plan Introducing a Volunteer Time Off Day Modifying the retirement match To achieve this, they partnered with C&B to implement an innovative employee survey that also explored mental health resources and the competitiveness of their benefits. Why They Needed Change Employee Satisfaction:  Understanding employee preferences was crucial for enhancing satisfaction and retention, ensuring that benefits aligned with what employees valued. Competitive Advantage:  In a tight job market, attractive benefits are essential for attracting and retaining top talent, prompting to reassess their offerings. Financial Considerations:  Potential changes to the 401(k) match and medical contributions could significantly impact employee morale, making it vital to gauge sentiment before making decisions. Mental Health Support:  With growing awareness of mental health issues, it was important to evaluate the effectiveness of their resources, particularly for higher-income employees. Strategic Investment:  Gaining insights into employee values would guide in making informed investments in their benefits package for 2025 and beyond. Key Results The Cottingham & Butler Approach Expert Guidance Our experienced consultants help every step of the process – building, refining, distributing, and analyzing your survey. They possess deep industry knowledge which plays a crucial role in aligning employee needs with cost-effective benefit solutions. Trade-Off Preferences Understanding trade-off preferences is key to discovering what employees value most. By presenting various benefit options and their trade-offs, employers can identify priorities and what sacrifices employees are willing to make, leading to more relevant benefits packages. Data-Driven Design Data-driven design is essential for creating tailored benefit programs that attract and retain talent. By analyzing employee feedback and utilization rates, organizations can pinpoint key decisions that influence satisfaction, ensuring benefits are competitive and aligned with employee needs.

Key Results The Situation A rapidly growing construction company faced significant challenges as their sub costs nearly tripled. Their existing insurance program had significant exposures, such as critical coverage gaps and no management liability protection. Poor broker representation left them vulnerable to unnecessary risk and excessive premiums during a crucial growth phase. Why They Need Change Dramatic growth with sub costs rising from $20M to $55M 22 identified coverage gaps leaving company assets vulnerable Complete lack of management liability protection Ineffective broker relationship hampering strategic planning "Cottingham & Butler sat on our side of the table, working collaboratively to understand our business and create strategic solutions that actually worked." The Cottingham & Butler Approach Comprehensive Risk Analysis Our evaluation process began with a deep dive into the company's current coverage structure and operational risk. By analyzing their needs, we created a detailed roadmap for program enhancements that allowed the company to continue to grow. Key findings include: Conducted detailed coverage gap analysis Assessed growth-related risk factors Benchmarked current program against industry standards Strategic Market Optimization With a clear understanding of the company's needs, we activated our carrier relationships to secure optimal coverage terms. Our team's broad market knowledge and strong carrier partnerships enabled us to negotiate enhanced protection while reducing overall costs. Through this process, we: Secured multiple competitive quotes Negotiated enhanced coverage terms Implemented cost-effective management liability program Long-term Risk Management Success required more than short-term improvements. We developed a sustainable risk management strategy that could grow with the company and provide ongoing value. Overall, establishing new protocols and systems for the company's long-term success. Our analysis delivered an impact financially, and created strategic improvements: Resolved 19 out 22 coverage gaps Added all five management liability coverages Reduced total premium from $183,000 to $138,000

For today's employees, navigating the complex web of modern healthcare benefits has become a daunting challenge. While employers invest heavily to provide comprehensive coverage, the sophistication of these offerings often prevents workers from utilizing them effectively. This disconnect isn't just frustrating - it's creating a crisis that affects both the financial health of organizations and the physical wellbeing of their workforce. However, it also represents a significant opportunity for employers willing to rethink their approach to benefits. The Paradox of Complexity Today's healthcare benefits packages have evolved far beyond simple insurance plans. They now encompass a sprawling ecosystem of options, from traditional medical coverage to wellness programs, mental health services, and specialized care. For employees facing a non-emergency health issue, this complexity can quickly become overwhelming. They must navigate a maze of in-network providers, deductibles, authorization requirements, and estimated costs - all while risking thousands in unnecessary expenses with a single misstep. It’s reported that employees spend an average of 4-6 hours annually just trying to understand their benefits, that’s time they're not focused on their actual work. The impact extends far beyond individual productivity. HR teams often find themselves inundated with basic benefits questions, siphoning resources away from strategic initiatives. Studies indicate that benefits-related inquiries can occupy upwards of 15 hours per week for HR staff. The Personal and Financial Toll Perhaps the most concerning impact of benefits complexity is its effect on healthcare decisions. When faced with uncertainty about coverage and costs, many employees simply avoid seeking care altogether. In fact, 40% of workers report delaying or skipping necessary medical treatment due to confusion about their benefits. This avoidance of care has serious ramifications. Minor issues, left untreated, often develop into more serious - and expensive - conditions. The result is poorer health outcomes for employees and higher long-term costs for both individuals and their employers. We see organizations facing a 30% or more increase in their healthcare spend due to improper benefits utilization. That includes everything from unnecessary ER visits to the use of out-of-network providers when in-network options are available. The Hidden Toll on the Healthcare System  The challenges employees face in navigating their healthcare benefits don't just impact individual workers and their employers - the ripple effects extend across the entire healthcare ecosystem. When employees avoid seeking care due to confusion over costs and coverage, it leads to more serious medical conditions that require extensive, expensive treatment down the line. This drives up healthcare spending for both employers and the broader system. Conversely, the lack of price transparency and inability to make informed decisions often results in the overutilization of high-cost providers and services, fueling the upward spiral of healthcare inflation. Additionally, the administrative burden placed on HR teams and the productivity drain on employees actively managing their benefits diverts resources away from more value-adding activities. This inefficiency ultimately gets passed on to the healthcare system in the form of higher costs. Solving the benefits navigation challenge represents a rare opportunity to meaningfully bend the cost curve. By empowering employees to become savvier healthcare consumers, organizations can drive systemic savings that benefit the entire healthcare ecosystem - from patients and providers to payers and the government. The Path Forward The good news is that solutions exist to help employees navigate the complex healthcare landscape. Leading-edge benefits platforms combine sophisticated digital tools with dedicated human experts, providing workers with personalized guidance at their fingertips. These modern navigation platforms give employees real-time access to cost transparency, provider quality metrics, and benefits specialists who can explain complex terms and coordinate care. When workers have the knowledge and confidence to make informed healthcare decisions, the results are transformative. Cottingham & Butler's MyAdvocate360 is a powerful tool that delivers transformative results. Employees who use MyAdvocate360 are more likely to seek preventive care, choose high-quality providers, and find cost-effective options. This leads to better health outcomes and lower out-of-pocket expenses - not just for the employee, but for the entire organization. Beyond the immediate financial savings, comprehensive navigation support also boosts employee satisfaction and retention. When workers feel empowered to effectively utilize their benefits, they're more likely to appreciate the value of their employer-provided healthcare package. MyAdvocate360 is saving employers an average of $4,200 per healthcare service that employees shop for, with savings ranging from $500 on imaging tests to over $20,000 on major surgeries. One client saw an employee save the company $22,000 on a single surgery by using MyAdvocate360 to find a high-quality, lower-cost provider, while the employee also pocketed a cash bonus. These results demonstrate the significant cost savings that can be achieved when employees are empowered with the right tools and incentives to shop for affordable, quality healthcare. Rethinking Benefits as a Strategic Asset  For forward-thinking employers, investing in modernized benefits navigation represents a powerful opportunity to transform their healthcare offerings from a cost center into a strategic asset. By providing employees with the tools and support to get the best care at the lowest cost, organizations can unlock significant financial and productivity gains while enhancing their employee value proposition. The path forward is clear: Organizations that embrace the power of benefits navigation will be better positioned to attract and retain top talent, improve workforce health and wellbeing, and drive meaningful financial savings. In an era of ever-increasing healthcare complexity, this comprehensive approach to benefits may be the key to unlocking a healthier, more productive workforce - and a healthier bottom line. Ready to transform your healthcare benefits strategy? Schedule a demo of MyAdvocate360 and speak with our benefits experts today. MyAdvocate360 is empowering employees to make smarter healthcare decisions, driving significant cost savings for organizations like yours. Contact us now to learn how this innovative navigation platform can help your company unlock the hidden opportunity in your benefits program.

This informative webinar seeks to help shop owners, managers, and safety professionals identify and address common OSHA violations. Ensuring compliance with OSHA regulations is crucial for maintaining a safe and productive work environment. This webinar will give you the knowledge and tools to recognize potential hazards and implement practical corrective actions. 5 Key Takeaways on Identifying & Addressing Common OSHA Violations : Understanding Common OSHA Violations Identifying common OSHA violations in shop environments is essential for maintaining a safe workplace and avoiding penalties. Awareness is the first step towards effective safety management.   Mitigation Strategies Implementing proper procedures, training, and routine inspections can significantly mitigate the risk of violations. Consistent application of these strategies ensures ongoing compliance and safety.   Case Studies and Real-World Examples Learning from real-world case studies provides practical insights into how violations can be addressed effectively. These examples highlight successful resolutions and best practices.   Creating a Culture of Safety Fostering a safety culture within the shop is crucial for long-term success. Encouraging employee participation and open communication about safety concerns enhances overall safety.   Continuous Improvement Regularly reviewing and updating safety protocols, training programs, and equipment helps maintain a high safety standard. Continuous improvement and feedback loops are vital for adapting to new challenges and ensuring compliance. Click here to download the presentation.

Written by Larry Nedder, Vice President, Transportation Group In the wake of unprecedented investments in infrastructure, Texas Transportation Commission has approved a 100.6 billion-dollar plan. According to Senator Cesar Blanco's recent announcement, major changes are coming to El Paso's transportation landscape. With the recent approval for El Paso and significant I-10 construction, your trucking operations face both opportunities and challenges. While these historic changes are needed and promise to enhance long-term efficiency, the short-term implications for the industry are significant. Road closures, detours, and delays are already creating challenges for an industry grappling with driver shortages, fuel costs, and tight delivery schedules. The Scope of Infrastructure Overhauls is impressive as outlined in the article by. ( 2024 Unified Transportation Program ) Pain Points for Trucking Companies Increased Operations Costs & Delays Construction zones create bottlenecks, extending transit times and increasing fuel consumption which ultimately disrupts delivery schedules. Detours can force trucks onto less efficient routes, increasing wear and tear on vehicles and directly impacting your bottom line. Driver Fatigue and Turnover  Infrastructure projects force route changes, longer and unpredictable schedules, and contribute to driver fatigue and stress. This also contributes to already existing recruitment challenges, particularly for smaller trucking companies. Congestion in Urban and Rural Areas  Both urban and rural areas are experiencing significant construction activity. Urban construction often causes congestion, while rural projects may lack alternate routes altogether, leaving trucking companies with limited options. Increased Litigation environment The rise in work zone incidents has led to an increase in exposure to litigation and higher insurance premiums. This evolving risk landscape requires carriers to implement more robust safety protocols and risk management strategies. The Silver Lining: Long-Term Benefits Despite these short-term hurdles, the industry stands to benefit immensely from these infrastructure upgrades. Ultimately it will enhance the flow of goods and will have a positive impact.  The best trucking companies are already working on strategies for Navigating the transition and mitigate the risk that are created with this change.    Don't let one lawsuit or accident put your entire business at risk. Our team at Cottingham & Butler understands the trucking landscape. With decades of industry experience, they offer comprehensive coverage specifically designed for Texas trucking companies. We go beyond basic insurance, providing insight and coverage second to none.   For more information about managing your fleet's risks and costs while Texas is undergoing a large infrastructure change, contact your Cottingham & Butler representative .

In recent years, there has been a major shift in how American workers access paid family and medical leave. While the U.S. does not have a federal paid leave program, individual states are stepping up to fill this crucial gap. Lets take a deep dive into what employers should know and be on the look out for when it comes to State Paid Family & Medical Leave (PFML) programs. What is State Paid Family & Medical Leave? State PFML programs are mandatory insurance-style benefits that provide paid time off for employees experiencing qualifying life events. These programs ensure workers continue receiving  income during their time away from work, acting as a safety net that assists employees with balancing their work with life's major challenges. Common Qualifying Life Events: Personal medical conditions Caring for family members with serious health conditions Welcoming a new child through birth, adoption, or foster care Other qualifying family and medical situations Core Program Elements Location - Based Coverage PFML coverage will depend on where your employees work, rather than where your company is headquartered. For example: An employee working in Washington state must be covered by Washington's PFML program, even if the company is based in Oklahoma Remote workers are covered by the PFML laws of their work location state Multi-state employees may need individual evaluation for coverage determination   Current Company Benefits Some employers offer some sort of employer-paid or voluntary STD plan, or paid parental leave for new parents. In most cases, these existing plans don't satisfy PFML requirements because they typically: Don't cover all eligible employees Don't provide benefits for all qualifying reasons Offer lower benefit amounts than required by law   Funding Mechanisms The details of how each state funds its PFML program will vary enormously. States offer three primary ways to fund PFML programs: Payroll Tax Contributions: In most states, this is the standard funding mechanism. Employers and/or employees contribute a percentage of wages through regular payroll deductions, similar to Social Security taxes. Private Insurance Policy: Companies can purchase approved insurance plans from authorized carriers to meet state requirements, offering more control over program administration. This is not available in all states. Self-Funding : Large organizations may opt to pay benefits directly, though this requires substantial financial reserves and state approval. Benefit Coordination Some states permit employees to combine PFML with other paid leave to reach 100% of their regular wages, while others have strict limitations on benefit combinations. How PFML coordinates with these other benefits varies from state to state, those benefits being: Short-term disability Paid time off (PTO) Vacation Time Sick Leave Employer-provided parental leave Current PFML Landscape Active Programs California Colorado Connecticut District of Columbia Hawaii Massachusetts New Jersey New York Oregon Rhode Island Washington Upcoming Programs Delaware (2025-2026) Maine (2025-2026) Maryland (2024-2026) Minnesota (2026) Action Steps for Employers Map Your Workforce: Review employee work locations and identify which states apply within your organization. Evaluate Benefits: Compare your current leave policies against PFML requirements and adjust as needed. Plan Ahead: Budget for contributions and update your systems for new or upcoming state programs. Stay Compliant: Monitor program changes and regularly review your policies with benefits experts. Looking Forward The PFML landscape continues to evolve and change within more states. Successful navigation of these requirements requires ongoing attention to: New state program implementations Changes to existing programs Coordination with other leave benefits Employee communication strategies Summary State Paid Family & Medical leave programs are expanding across the U.S., requiring employers to carefully navigate various state requirements. Effective PFML management requires understanding that coverage is based on work location, existing benefits often need supplementation, and funding mechanisms differ by state. As these programs continue to change, it is important for multi-state employers to stay up to date on state requirements and compliance. ***This information is current as of November 2024. As state PFML programs continue to evolve, consult your state's specific program for the most up-to-date requirements.

The trucking industry faced record congestion-related challenges in 2021, with costs reaching a staggering $94.6 billion according to new research from the American Transportation Research Institute (ATRI). This significant increase in congestion costs highlights the growing challenges fleet operators face in maintaining efficient operations. Key Findings This study revealed several concerning trends for the transportation industry: Record-Breaking Delays : Trucking companies experienced 1.27 billion hours of delay—equivalent to 460,000 drivers sitting idle for an entire year Substantial Fuel Waste : Over 6.7 billion gallons of diesel fuel were wasted due to congestion, resulting in $22.3 billion in additional fuel costs Rising Costs Outpace Inflation : From 2016 to 2021, congestion costs increased by 27%, more than double the Consumer Price Index increase of 12.9% during the same period What's Driving the Increase? Several factors contributed to the surge in congestion costs following the pandemic: Economic Growth : 2021 saw the highest GDP growth (5.7%) since 1984 Return to Office : The resumption of commuter traffic as workers returned to the office Increased Freight Demand : Higher consumer spending led to increased trucking volumes Regional Impact The impact of congestion varies significantly by location, with certain states and metropolitan areas bearing the brunt of these costs: Top 5 Most Impacted States: California: $9.0 billion Texas: $7.3 billion Florida: $7.2 billion New York: $4.9 billion Louisiana: $4.2 billion Most Affected Metropolitan Areas: New York City Metro: $5.5 billion Miami Metro: $2.6 billion Chicago Metro: $2.6 billion Philadelphia Metro: $2.1 billion Los Angeles Metro: $1.8 billion Environmental Impact The environmental consequences of these delays are substantial: 69 million metric tons of CO2 emissions from wasted fuel This environmental impact underscores the need for both operational efficiency and sustainability initiatives Looking Forward The federal Infrastructure Investment and Jobs Act of 2021 includes $350 billion for highway investments that could help alleviate these congestion issues. This investment presents an opportunity for strategic infrastructure improvements that could benefit the trucking industry and broader supply chain. Risk Management Implications For fleet operators, these findings emphasize the importance of: Route optimization and planning Fuel management strategies Operating cost control measures Environmental impact consideration Strategic scheduling to avoid peak congestion periods Understanding and adapting to these congestion patterns is crucial for maintaining competitive operations in today's challenging transportation environment. Fleet operators should consider these factors in their risk management and operational planning strategies. For more information about managing your fleet's risks and costs in today's challenging environment, contact your Cottingham & Butler representative.

Every few years, there seems to be an uptick in wellness program-related litigation. While the lawsuits are typically of the class-action variety targeting large, deep pocket companies, the risk is still real enough to motivate any employer sponsoring a wellness rewards program to make sure they’re running those programs as compliantly as possible.   A recent string of lawsuits filed by the Department of Labor (DOL) and private plaintiffs primarily relate to tobacco incentive (or disincentive) programs. Many of these lawsuits allege similar violations under HIPAA’s nondiscrimination rules centered around the Reasonable Alternative Standard (RAS) requirements. While this litigation mostly relates to employers charging a premium surcharge for those employees who use tobacco-related products, similar issues can arise with any nicotine prevention or outcome-based wellness incentive program. This brief alert will discuss the basis of the lawsuits and provide ways to ensure your wellness program is less susceptible to being a civil suit target.   Alleged Failures in Tobacco-related Wellness Programs The following are four of the most common allegations against employers offering tobacco-related wellness programs: Employer offers a tobacco incentive (or assesses a premium surcharge) without offering an RAS . An RAS must be offered to those employees who use tobacco.  Basically, tobacco users must be offered another way to earn the full reward or avoid the full surcharge.  The most common RAS for tobacco-related programs is completion of a tobacco-cessation program. The availability of an RAS is not adequately disclosed or communicated . Written materials describing the terms of outcome-based wellness program and the communication informing a participant of a failure, must include a notice about how that participant may earn the incentive by completing an alternative standard. RAS options, who to contact, and any deadlines for completion must also be included in the notice.  These notices should appear in benefit guides, open enrollment presentations and in the tobacco affidavits, to name a few obvious places. Not recognizing what constitutes completing the RAS . In the case of tobacco related incentives, the employee merely needs to complete the tobacco-cessation program. Requiring the employee to successfully quit tobacco use in order to earn a reward or avoid a surcharge is not considered to be a reasonable alternative standard under the law. Not providing the full incentive if the employee completes the RAS . The employee must receive the full annual incentive (or avoid the full annual surcharge) if they successfully complete the RAS within a reasonable time period. If the employee does not complete the RAS until well into the start of the plan year and the employer has been charging the surcharge in the interim, the employer must refund the surcharge paid to date as well as discontinue the surcharge going forward until the end of the plan year. Under the Affordable Care Act, health plans offer tobacco cessation programs at no cost to participants. Therefore, identifying a RAS for your tobacco incentive wellness program should be a straightforward process. Contact your team at Cottingham & Butler for help in setting up a compliant RAS for your wellness initiatives and gain access additional wellness compliance resources.

As we approach January 1, 2025, the compensation landscape is set to become increasingly complex for employers in Minnesota and Illinois due to new pay transparency laws. Minnesota employers with 30 or more employees must: Include starting salary ranges or fixed rates in all job postings Provide comprehensive benefits information, including specific details about health insurance, retirement plans, and other compensation Cannot inquire about or consider an applicant's past or current pay during the hiring process Ensure all job postings comply with these requirements, whether internal or external Illinois employers with 15 or more employees face similar but distinct requirements: Must disclose pay scales and benefits information in all job postings Required to announce promotion opportunities to current employees within 14 days of any external posting Must maintain detailed records of job postings, pay scales, benefits, and wages for five years Apply these requirements consistently across both internal and external postings This shift extends far beyond Minnesota and Illinois. With states like California, Colorado, and New York already enforcing similar measures, we're seeing a clear national trend toward greater pay transparency. This momentum could potentially lead to federal legislation in the coming years.   " This is a watershed moment for compensation strategy, " notes Matt Shefchick, Cottingham & Butler Total Rewards Consultant. "Organizations that view these changes purely through a compliance lens are missing the bigger picture of how compensation transparency is reshaping talent markets."   The impact on workplace culture will be profound. Even in states without specific laws, employees are increasingly expecting transparency about compensation. Organizations that embrace this shift proactively often find themselves better positioned to:   Strategic Implications for Your Organization These regulatory changes create profound implications for your business strategy and create three immediate challenges:   Cost Management The financial impact of these changes will be significant for most organizations. Many will face difficult decisions between substantial salary increases or complete restructuring of roles and compensation packages. The costs multiply quickly: direct salary adjustments, increased administrative burden, and potential system updates. Some organizations are finding the total price tag could affect their ability to invest in other strategic initiatives.   However, this challenge presents an opportunity to strategically evaluate compensation structures. Forward-thinking organizations are using this moment to develop more sustainable approaches to job classification and total rewards that align with both compliance needs and business objectives.   Shefchik points out: "Many organizations are surprised to find that a strategic review of their compensation structure reveals opportunities for optimization that can help offset the costs of these changes."   Operational Efficiency The operational disruption of these changes shouldn't be underestimated. Reclassifying employees means fundamentally rethinking how work gets done - from basic daily tasks to major project deadlines. Organizations must navigate complex decisions about work assignments, scheduling, and overtime management while maintaining productivity. Many will need significant updates to timekeeping systems and processes.   While these changes are challenging, they create a natural opportunity to modernize workforce management practices. Organizations that plan thoughtfully can use this transition to implement more flexible work arrangements and streamline procedures.     Talent Strategy Employers face serious workforce challenges with these changes. Reclassifying long-term exempt employees to non-exempt status may trigger morale issues, regardless of the potential for increased total compensation through overtime. The transparency requirements may expose uncomfortable pay disparities and trigger difficult conversations about compensation equity.   However, organizations that approach these changes strategically can strengthen their position in the market through clear communication and well-designed career paths.   The Risk of Inaction The consequences of non-compliance are severe, including potential agency investigations, civil penalties, back pay requirements, and legal disputes. For FLSA violations, organizations may even face criminal charges. However, the greater risk lies in falling behind in an increasingly competitive talent market where pay transparency is becoming the norm.   "The organizations best positioned for these changes aren't necessarily those with the biggest budgets," says Shefchik. "They're the ones taking a thoughtful, systematic approach to both compliance and communication."   Creating Your Action Plan A successful transition requires careful planning and execution. Employers should begin by thoroughly reviewing current exempt employee classifications and salaries to identify positions requiring changes, while considering broader pay equity implications across the organization.   This foundation enables the development of comprehensive strategies addressing both compliance and operational impacts. Key focus areas include clear employee communications, updated job posting processes, and manager training for sensitive pay discussions. Equally important is establishing robust systems and procedures to ensure ongoing compliance and monitoring.   How Cottingham & Butler Can Help Our Total Rewards Consulting team specializes in helping organizations navigate complex compensation changes. We can help you conduct thorough impact analyses, develop custom compliance strategies, design effective communication and change management plans, and create sustainable compensation frameworks that ensure ongoing compliance.   Let us help you turn these regulatory changes into a strategic advantage. Contact us to schedule a consultation and discuss your specific situation.   Compliance | Cottingham & Butler   ***This information is current as of its posting date of November 1, 2024. FLSA requirements are subject to change and employers must continue to monitor regulatory developments.

Effective Immediately: Federal Salary Threshold Returns to Pre-July 2024 Levels   On November 15, 2024, a federal court in Texas rejected the Department of Labor's (DOL) recent changes to overtime pay rules. This ruling affects employers nationwide and returns overtime salary requirements to their previous levels. Here's what you need to know: The minimum salary for overtime exemption returns to $684 per week ($35,568 per year) The higher salary threshold that started July 1, 2024 is no longer legally valid The increase in the overtime threshold scheduled to become effective on January 1, 2025, will not go into effect The automatic three-year increase provision has been eliminated   Background The Fair Labor Standards Act (FLSA) generally requires employers to pay overtime (time-and-a-half) to employees working more than 40 hours per week. However, certain white-collar workers can be exempt from overtime if they meet three specific requirements: Receive a fixed salary regardless of hours worked ("salary basis test") Perform primarily executive, administrative, or professional duties ("duties test") Earn at least the minimum salary threshold ("salary threshold test")   In April 2024, the DOL issued final regulations raising the white-collar exemption salary threshold. The final rule raised the minimum salary in two steps:  July 1, 2024: $844 per week ($43,888 annually). January 1, 2025: $1,128 per week ($58,656 annually). The rule also increased the “highly compensated employee” (HCE) threshold from $107,432 to $132,964 as of July 1, 2024, and to $151,164 as of January 1, 2025, with automatic updates every three years.   The court ruled on the salary threshold increases set for July 1, 2024, and January 1, 2025, finding that the DOL exceeded its statutory authority by increasing the standard salary level too high and allowing for automatic adjustments every three years, effectively creating a rule based solely on salary rather than job duties as intended by law. The court vacated the salary increase that went into effect in July and the increase set for January, as well as the future automatic salary level increases for employers nationwide. As a result of the decision, the standard salary level for EAPs is now $35,568 and $107,432 for HCEs. Consequently, employees who lost their exempt classification because of the July 1 salary level increase may potentially qualify again for an exemption.   Important Considerations for Employers This ruling significantly impacts how employers determine overtime eligibility for their salaried employees. The court's decision emphasizes that job duties, not just salary levels, should be the primary factor in determining overtime exemption. Current Actions:  While the July 2024 increase is legally invalid, carefully consider any changes to already-implemented salary adjustments , due to the impact on employee morale if salary increases are reversed. State Requirements:  Several states maintain their own, higher salary thresholds: Alaska, California, Colorado, Maine, New York, Washington. Employers in these states must continue following state requirements. Engage Legal & Compliance Experts:  Consult with your legal and compliance advisors to navigate these complex changes and ensure compliance against the following: Reversing any salary increases made to comply with the July 2024 threshold Making changes to employee classifications Adjusting overtime policies   Looking Ahead The DOL may seek to appeal the lower court’s decision to the Fifth Circuit Court of Appeals. However, with the upcoming change in presidential administration, it is predicted that the DOL would likely abandon any appeal and allow the lower court’s decision to stand. It is unclear whether the new administration will revisit some or all of the rule, repeal it entirely, or perhaps adopt a different formulation. Cottingham & Butler will keep readers apprised of current developments.

In the world of employee benefits, being nice and being wise aren't mutually exclusive—but sometimes they can feel that way. As benefit consultants, we frequently hear HR leaders say, "We trust our employees. Questioning dependent eligibility feels like we don't." This mindset, while commendable, overlooks a crucial truth: sometimes the kindest act is ensuring your benefits program stays strong and sustainable for everyone who truly depends on it.   The Evolution of Benefits Management Today's healthcare landscape is unrecognizable from even a few years ago. With family coverage premiums now averaging $22,463 annually (Kaiser Family Foundation, 2023) - a figure that's risen over 47% in the last decade - organizations face unprecedented challenges in benefits management.   Consider the forces reshaping employer-sponsored healthcare: Medical trend consistently outpacing general inflation Multi-generational workforce with diverse benefit needs Rise of remote work complicating state-by-state coverage Expanding definition of family structures Growing complexity of compliance requirements Increased scrutiny from stop-loss carriers Rising employee expectations for benefit programs   The mounting pressure extends beyond premium costs. Specialty drug costs surge at 15-20% annually, mental health utilization reaches historic highs, and chronic conditions demand increasingly sophisticated management approaches. Meanwhile, healthcare delivery transforms rapidly through telehealth and innovative treatment modalities, all while technology investments in benefits administration become non-negotiable for maintaining program efficiency.   "In this era of rising healthcare costs and complex family structures, strategic benefits management isn't just about controlling costs - it's about ensuring sustainable protection for every eligible participant," explains Taylor Orton, Vice President Employee Benefits at Cottingham & Butler. "Forward-thinking organizations are discovering that eligibility management creates an opportunity to enhance their entire benefits program, often allowing reinvestment of savings into expanded coverage options that better serve their employee population."   Understanding Today's Complex Benefits Environment Modern benefits programs operate in an environment where change is the only constant. Consider how dramatically the American family has transformed: blended families are increasingly common, adult children remain on parents' insurance longer, and the definition of domestic partnership continues to evolve. These demographic shifts create natural friction points in benefits administration, with industry analysis showing 5-15% of dependents on employer-sponsored plans may not meet current eligibility requirements.   The complexity compounds with varied eligibility rules across benefit types, state-specific regulations, court-ordered coverage requirements, and evolving domestic partner benefits. While the financial impact is significant – averaging $3,000 annually per ineligible dependent – the human impact can be far more severe. Consider an employee who discovers their child's coverage lapsed during a medical emergency, or a former spouse facing unexpected bills because their coverage should have terminated months ago.   "Every self-funded employer should conduct an eligibility audit once every 3-5 years," explains Orton. "Not primarily for the financial savings, but to protect both your organization and your employees from potentially devastating uncovered claims. The last thing you want is discovering a dependent isn't eligible during a medical crisis - forcing an impossible choice between absorbing massive costs or leaving a family with crushing medical debt. A proactive audit helps everyone sleep better at night."   Eligibility Management Delivers Significant Impact A recent eligibility audit for a national HVAC/R supplies distributor revealed the power of strategic timing and execution. Despite having existing spousal coverage requirements in place, the audit uncovered substantial opportunity for program optimization: Results at a Glance: 12.3%  of covered spouses were ineligible for benefits 170  ineligible spouses identified $850,000  in projected annual savings Program ROI exceeded 1,000%   Most importantly, the organization could redirect these savings into enhanced employee programs while strengthening their benefits foundation for the future.   A Modern Approach Given these complexities, how can organizations protect both their employees and their benefits investment? A well-designed dependent eligibility audit provides the foundation for long-term program sustainability. Unlike the rigid audits of the past, today's approach focuses on education, support, and proactive management. Working with experienced administrators like SISCO, organizations are discovering that modern eligibility management can be both thorough and protective of employee interests.   "The key to successful eligibility management lies in making it feel like a natural part of the benefits experience," explains Stacy Rauch, Director of Eligibility at SISCO. "When organizations provide the right tools and support, employees actually appreciate the clarity and confidence that comes from knowing their families' coverage is secure."   A strategic eligibility audit does more than verify coverage – it creates opportunities for better benefits education, clearer communication, and improved employee understanding of their valuable benefits package. When implemented thoughtfully, these programs help employees navigate complex eligibility rules while ensuring their loved ones maintain appropriate coverage.   Making Eligibility Management Feel Natural While the value of eligibility management is clear, timing can make the difference between a smooth, well-received program and one that creates unnecessary friction. The post-open enrollment period provides an ideal window when employees have already engaged with their benefits and gathered family information. This natural alignment with your benefits cycle creates momentum for a successful verification process.   Program success also depends heavily on having the right partner. A strategic administrator ensures the process feels like a natural extension of your existing benefits program rather than an additional burden. "When organizations partner with experienced administrators for eligibility management, they discover how seamless the process can be," notes Rauch. "Our approach focuses on making the verification process straightforward for employees while removing the administrative burden from HR teams."   The right partner manages all aspects of verification, from coordinating communications and document collection to providing dedicated support for sensitive conversations and complex situations. This comprehensive approach allows HR teams to maintain their strategic focus while ensuring employees receive clear guidance and support throughout the process. Most importantly, it transforms eligibility management from an administrative task into a valuable part of your overall benefits strategy.   The Strategic Advantage While timing optimization creates a strong foundation, forward-thinking organizations recognize that dependent eligibility management serves a broader strategic purpose in today's complex benefits landscape. The stakes have never been higher – or the opportunities greater.   The Department of Labor's heightened focus on plan governance reflects a deeper shift in benefits management expectations. It's no longer enough to simply offer competitive benefits; organizations must demonstrate proper stewardship of these valuable programs. This scrutiny, combined with rising healthcare costs and increasingly complex family structures, creates both challenges and opportunities for benefits leaders. Consider the broader implications: Stop-loss carriers are increasingly scrutinizing dependent eligibility during large claims ERISA fiduciary responsibilities extend beyond basic plan administration State and federal regulations continue expanding coverage requirements Financial reporting demands greater accuracy in benefits accounting   Organizations are discovering that compliance requirements catalyze strategic advantages. Through verification processes, they're building foundations for data-driven decision making that strengthens carrier relationships and supports future program evolution.   From Cost Center to Value Creator The true power of strategic eligibility management extends beyond impressive financial returns. While a typical first-year ROI exceeding 800% captures attention, forward-thinking organizations discover something more fundamental: eligibility management becomes a catalyst for broader benefits evolution. Recent SHRM data shows organizations with robust eligibility programs report 24% lower administrative costs and significantly higher employee satisfaction with benefits communication. As healthcare costs continue rising at twice the rate of wages, strategic eligibility management positions employers to: Enhance core benefits without increasing costs Invest in targeted wellness and preventive programs Respond quickly to emerging workforce needs Build resilient benefits strategies   Organizations often redirect these savings into enhanced mental health coverage, expanded family support programs, and innovative wellness initiatives. With confidence in program integrity, the focus naturally shifts from cost containment to strategic enhancement.   The Strategic Leadership Opportunity For benefits leaders, this evolution in eligibility management presents a unique opportunity. In an era where nearly 70% of employees cite benefits as a key retention factor, the ability to maintain comprehensive, sustainable benefits programs becomes a crucial differentiator.   "A well-executed eligibility management process demonstrates that protecting your benefits program and caring for your people go hand in hand," Rauch emphasizes. "Our role is to ensure a smooth experience that supports both employers and employees through the verification process."   This insight points to perhaps the most important opportunity: the chance to demonstrate modern, thoughtful leadership in an area that directly impacts employee wellbeing. By implementing strategic eligibility management, organizations ensure their benefits investments deliver maximum value for every truly eligible participant while building a foundation for future program enhancements.   In today's complex benefits landscape, that's not just good management—it's strategic leadership that protects both your people and your program's future.   ____________________________________________________________________________________________     Ready to Protect Your Benefits Investment? The path to stronger benefits management starts with understanding your opportunity. Our team of experienced consultants can help you: Evaluate your current eligibility management approach Identify potential areas of opportunity Develop a strategic implementation timeline Create a communication strategy that builds employee trust   Contact our benefits consulting team to explore how strategic eligibility management could strengthen your benefits program while protecting what matters most – your people and your investment in their wellbeing.

Success in the trucking industry requires more than just insurance coverage – it demands a partner who understands the unique challenges of the sector and can deliver value through every business transition. This story demonstrates how the right partnership can drive significant cost savings while also transforming challenges into opportunities.   The Situation A leading trucking company from Kansas with over 400 trucks, began their journey with Cottingham & Butler in 2014. Following a buyout in 2019 and absorption into their new company's program, Cottingham & Butler maintained a crucial role managing their deductible buy-back program for Owner Operators and Independent Contractors. When they underwent another ownership change in 2022, our team learned from their CFO that they were not receiving the comprehensive service they deserved.   Our Approach We took swift action to ensure the organization received the full spectrum of services Cottingham & Butler could offer. Our comprehensive solution included: In-depth claims analytics Detailed collateral analysis Large deductible analysis Extensive safety services What set our partnership apart was creating direct connections between the trucking company and the underwriters on the accounts – giving them a voice to share their story directly with the markets.   The Results Our strategic approach delivered significant impact: Nearly $930,000 in savings during their first year with Cottingham & Butler Substantial cost reduction through effective deductible buy-back program management Prevention of unnecessary financial burden on drivers Appointed as insurance broker in spring 2023   The Outcome Today, this partnership showcases what is possible when industry expertise meets dedicated service. Through every organizational change, Cottingham & Butler's commitment to understanding the client’s unique challenges has built a partnership that delivers real value. It's more than just managing insurance – it's about being a trusted advisor who supports our client's every step of the way. Contact your Cottingham & Butler Representative today.