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In line with recent years, 2026 has so far been an active one for employee leave laws at the state level. Since the beginning of the year, brand-new paid family and medical leave programs have been launched in Delaware and Minnesota, and a significant redesign of the Washington paid family and medical leave program took effect. The Washington changes should help employers limit leave stacking, but the amendments make more employers subject to employee restoration rights. Smaller expansions to existing leave rights have gone into effect since January in states such as California, Colorado, Connecticut, Oregon and Rhode Island. Employers must also keep their eye on the near-term horizon, as more changes in the employee leave landscape are coming this year, particularly in Illinois, Maine and New Jersey. This Compliance Overview outlines notable recent and upcoming developments in state leave laws. State Leave Law Changes Effective Since January 2026 California On Jan. 1, 2026, paid sick leave under the California Healthy Workplaces, Healthy Families Act began covering leave for judicial proceedings related to certain serious crimes of which the employee or the employee's family member was a victim. The proceedings include, but are not limited to, delinquency proceedings, post-arrest release decisions, pleas, sentencings, post-conviction release decisions, and any proceeding where a right of that person is an issue. Colorado Also on Jan. 1, 2026, an amendment to the Colorado paid family and medical leave (FAMLI) program went into effect, requiring an extra 12 weeks of partially compensated leave for parents with a baby in a neonatal intensive care unit (NICU). The FAMLI program already provided 12 weeks of paid leave for specified family and medical reasons. FAMLI leave is job-protected for workers who have been employed with their current employer for at least 180 days before taking leave. Providing leave for parents of NICU babies is a developing mini-trend in state employee leave laws. A similar measure is set to take effect later this year in Illinois. Connecticut Effective Jan. 1, 2026, paid sick leave in Connecticut began applying to employers with 11 or more employees in the state, as part of a phased-in expansion of paid sick leave coverage that began last year. By 2027, Connecticut employers of all sizes will be under the law's mandate. Before the expansion, coverage applied only to employers with 50 employees or more and certain service workers. The increase in leave under Connecticut's paid sick leave law can be seen as part of a trend of expanding older employee leave laws to match newer, more generous leave laws in other states. Delaware Benefits became available under Delaware's paid family and medical leave program (Delaware Paid Leave) on Jan. 1, 2026. Eligible workers are entitled to up to 12 weeks of paid parental leave annually and six weeks of paid medical leave every two years under the program, with a combined limit of 12 weeks of leave per year. Workers are compensated at a rate of up to 80% of their weekly wages. Leave is job-protected. Employers with 10 or more employees working in Delaware are covered; for employers with 10-24 employees, only the parental leave requirements of the law apply. Employees are eligible for leave if they have been employed for 12 months by their current employer, worked 1,250 hours during that time and report primarily to a worksite in Delaware, meaning they earn at least 60% of their wages while physically working in the state. The program is funded through payroll deductions split evenly between employers and employees. Minnesota Effective Jan. 1, 2026, Minnesota's paid family and medical leave program (Minnesota Paid Leave) went into effect for virtually all Minnesota employers, providing 12 weeks of medical and 12 weeks of family leave per year—capped at 20 combined weeks annually. Workers are eligible if they meet minimal income requirements and work in Minnesota for at least 50% of the year. Leave under the program is job-protected for employees who have worked for their employer for 90 days. Funding is split between employers and employees, but employers with 30 employees or fewer are eligible for a reduced premium if their employees' average wage is no more than 150% of the state average wage. New York On Feb. 22, 2026, an expansion of New York City's Earned Safe and Sick Time Act went into effect, adding new reasons for leave under the law and requiring employers to provide an additional 32 hours of up-front unpaid time off for every employee at the start of employment and the beginning of each calendar year. At the same time, Mayor Zohran Mamdani announced an "enforcement blitz" for the law, which the administration is now calling the Protected Time Off Law. The amended law effectively replaces the city's Temporary Schedule Change Act, which required employers to accommodate two schedule changes per year for employees for any of a number of specified "personal events," which are now included as permitted reasons for leave under the Protected Time Off Law. Oregon On Jan. 1, 2026, Oregon employees were allowed to begin using their accrued sick time under state law for blood donation. This expansion is in line with a trend in leave laws nationwide to allow time off for blood, organ and bone marrow donors. Rhode Island On Jan. 1, 2026, the permitted annual leave amount under the state's temporary caregiving insurance program (effectively paid family leave) was expanded to eight weeks from seven. This change is in line with the expansion of other older leave laws to match the benefits of newer, more generous leave laws in other states. Washington On Jan. 1, 2026, significant amendments to Washington's paid family and medical leave law took effect. Notable changes included: Expanding job restoration rights to employees who have worked for their employer for 180 days (replacing work tenure requirements of 12 months and 1,250 hours); Expanding job restoration rights to employees of employers with 25 (instead of 50) employees or more; Discouraging leave stacking by allowing employers to count an employee's leave under the federal Family and Medical Leave Act against the employee's state paid family and medical leave job protection; Requiring employers to maintain health insurance during any paid family and medical leave for which the employee is entitled to job protection; and Adding new employer notice obligations related to job restoration. In addition, also effective Jan. 1, 2026, the Washington Domestic Violence Leave Act added reasonable leave for victims of hate crimes, following a trend seen in domestic violence leave laws in other states. Upcoming State Leave Law Changes Illinois Effective June 1, 2026, all employers with at least 16 employees must provide unpaid leave to parents whose child is a patient in a NICU. The amount of leave required differs depending on the size of the employer, as follows: Employers with 16-50 employees: Up to 10 days of leave; and Employers with 51 employees or more: Up to 20 days of leave. Leave may be intermittent or continuous, but the employer may require that it be used in increments of at least two hours. Employees must exhaust any available FMLA leave before using the new leave. They may substitute any paid or unpaid leave to which they are entitled. Employers may require reasonable verification of the child's NICU stay. Maine On May 1, 2026, benefits begin under the state's new paid family and medical leave program, providing employees with up to 12 weeks of partially compensated leave per year. Employees who have earned at least six times the state average weekly wage during a base period are eligible for coverage. Individuals who are self-employed may opt into the program. Leave is job-protected for employees who have worked for at least 120 days. Employees and employers with at least 15 employees contribute equally to the program, through payroll taxes that began Jan. 1, 2025. The Maine Department of Labor began accepting applications on March 30, 2026, for leave beginning on or after May 1, 2026. New Jersey Effective July 17, 2026, unpaid, job-protected leave under the New Jersey Family Leave Act will expand to cover private employers with 15 employees (previously 30). Additionally, eligibility requirements for employees under the Act will be reduced: Leave will be available to employees who have worked for their employer for only three months (instead of 12), and for 250 hours (instead of 1,000) during the 12 months before leave. The act provides employees with family leave of up to 12 weeks every two years, for reasons such as baby bonding and caring for a family member with a serious health condition. Also on July 17, amendments to the state's temporary disability insurance (TDI) and family leave insurance (FLI) programs take effect that appear to require job protection for employees receiving TDI or FLI benefits. Most New Jersey workers are covered by TDI/FLI if they meet earnings and work tenure requirements. The programs have historically been cash benefit-only programs that did not provide a job-protected right to leave. Employees may receive up to 26 weeks per year of TDI for nonwork-related illnesses or injuries, including pregnancy, that prevent them from working. FLI benefits are capped at 12 weeks per year and are available for leave for reasons similar to those under the FLA, plus for specific purposes related to domestic violence and sexual assault. Employer Takeaways Employers operating in the states mentioned above should become familiar with any employee leave changes or new leave rights that apply to them or their employees. Employers should ensure that any necessary updates to their policies or procedures related to these changes are made in a timely manner. Supervisors and managers should also be made aware of changes to ensure compliance. In addition, employers in states with new programs, like Delaware, Minnesota and Maine, should watch for new guidance and regulations issued by the state to help implement the programs. New Jersey employers should similarly stay alert for officialstate guidance on new job protection rights for employee recipients of TDI and FLI benefits. Links and Resources Delaware Paid Leave website Minnesota Paid Leave website Maine Paid Family and Medical Leave website California Department of Industrial Relations FAQs on California Paid Sick Leave

Heat-related injury and illness are occupational hazards that impact many industries and affect millions of employees annually. Heat stress occurs when an individual’s body accumulates more heat than it can dissipate. The increase in body temperature can result from several factors, including metabolic heat from physical exertion, workplace conditions, and clothing or personal protective equipment (PPE) that make it difficult to release heat from the body. Indoor work environments can create hot atmospheric conditions similar to outdoor environments and, in some cases, exceed outdoor temperatures. Types of heat-related illnesses include heat stroke, heat exhaustion, rhabdomyolysis, heat syncope, and heat-related cramps and rashes. Industries commonly associated with indoor heat exposure include, but are not limited to, commercial kitchens, manufacturing, warehousing, laundry and dry-cleaning services, and greenhouses. Industrial equipment, ovens and furnaces generate significant heat within enclosed spaces, and solar radiation striking a facility’s roof and walls can push interior temperatures to dangerous levels. High humidity amplifies the heat index, and poor ventilation makes cooling work areas difficult. Without adequate airflow, access to hydration, and air-conditioned break areas, these environments can become dangerously hot. Beyond the human cost, employers face real regulatory exposure. While a permanent federal heat standard remains uncertain under the current administration, OSHA’s National Emphasis Program on heat-related hazards has been extended through April 2031, and several states, including California, Minnesota, Oregon and Maryland, have already adopted their own indoor heat illness prevention standards. Regardless of where federal rulemaking lands, OSHA can and does cite employers under the General Duty Clause for failing to protect workers from heat hazards. The good news is that heat-related injury and illness are largely preventable and, with strong controls and procedures in place, can be managed in your operation. Consider these seven best practices to manage heat stress in your workplace. Implement a Heat-related Injury and Illness Prevention Program Developing a formal indoor heat-related injury and illness prevention program is a best practice, and for many organizations, simply taking the time to establish one is a significant step forward. A structured program signals a genuine organizational commitment to employee safety and can provide several tangible benefits, including preventing heat-related injuries and illnesses, reducing workers’ compensation claims, lowering absenteeism and turnover, and maintaining a productive workforce. Employees who see their organization actively working to keep them safe tend to be more engaged, loyal and productive. Because indoor work environments vary widely, the program should be tailored to your specific operation, accounting for your facility’s characteristics, the nature of the work performed, and the types of heat relief available to employees. A one-size-fits-all approach is unlikely to address the real conditions your workforce faces. Once developed, formalizing the program in writing and communicating it directly to employees ensures that everyone understands the practices in place and knows what to do when heat-related risks arise. New employees should be made aware of heat-related hazards and the various reliefs during orientation, and experienced employees should be reminded annually. Consider delivering heat-awareness training in the spring, before the hotter months arrive, so the information stays fresh when employees need it most. A well-built program is the foundation, but it only delivers results when supported by consistent, day-to-day practices. The remaining six best practices outlined in this document support the program’s mission. Monitor and Record Temperature Consistent temperature monitoring is your first line of defense in identifying when and where employees face elevated risk. Effective heat management starts with accurate data. Place thermometers in the hottest work areas of your facility and at multiple points throughout. An option to consider is Wi-Fi-enabled thermometers, which allow supervisors to monitor conditions in real time from laptops, tablets or smartphones, enabling faster response when temperatures climb. Use heat index readings rather than raw temperature alone. The heat index accounts for humidity and better reflects what workers actually experience, making it a more reliable trigger for interventions such as work-rest cycles, job rotations or temporary work stoppages. Establish clear internal thresholds, such as action levels tied to heat index ranges, so supervisors know when to intervene and employees know what to expect. Establish a Work-rest Cycle to Reduce Excessive Heat Exposure Effective work-rest cycles are driven by two key factors: the heat index in the work area and the intensity of work being performed. Work intensity is generally classified as light, moderate or heavy. While no regulatory standard exists for work-rest cycles, the National Institute for Occupational Safety and Health (NIOSH) provides general guidance as a useful starting point, though applicability will vary by operation. For more information, refer to NIOSH’s work-rest cycle guidance. If work-rest cycles are not feasible within your operation (or required within your state), job rotation is an effective alternative. Limit prolonged exposure to the hottest areas of your facility by rotating employees throughout the shift. In facilities with more uniform temperatures, consider rotating job tasks by light, moderate or heavy classifications to manage overall physical strain. Make Hydration Stations Readily Available Maintaining adequate hydration is critical to preventing heat-related injury and illness. Provide designated hydration stations stocked with water and electrolyte replenishment options, such as sports drinks or electrolyte packets. Replacing lost fluids and electrolytes supports healthy blood volume, circulation and the body’s ability to regulate temperature through sweating. Even mild dehydration can impair judgment, coordination and work performance, increasing the risk of both heat illness and workplace incidents. Ensure fluids are consistently accessible throughout your facility, particularly during warmer months, to safeguard employee health and sustain operational productivity. Equally important is actively encouraging employees to hydrate regularly. Workers may delay drinking fluids due to workload demands, habits or simply because they do not recognize early signs of dehydration. Supervisors play a key role here: building hydration reminders into shift routines, toolbox talks or team check-ins help reinforce the message and normalize taking breaks before thirst sets in. A workforce that is reminded and empowered to stay hydrated is better protected and more productive. Provide Cooling PPE Cooling PPE is an effective way to reduce the risk of heat-related illness and can be tailored to your operation’s specific needs. When selecting cooling PPE, consider both the temperature conditions within your facility and the physical intensity of the work being performed, as these factors will determine the most appropriate and cost-effective solutions. Available options include, but are not limited to: Cooling towels and bandanas—Lightweight, low-cost options suitable for general heat relief Moisture-wicking base layers—Help manage perspiration and maintain comfort during prolonged physical activity Ice/gel cooling vests—Provide active cooling for workers in high-heat environments or performing heavy work Cooling sleeves—Offer targeted protection for the arms while maintaining freedom of movement Evaluating your facility’s specific heat hazards will help ensure the selected PPE provides meaningful protection while remaining practical for day-to-day operations. Make Climate-controlled Break Rooms Accessible Access to climate-controlled rest areas is an essential component of an effective heat management program. Providing a cool environment during breaks allows the body to dissipate heat and restore a healthy core temperature, reducing cumulative heat stress throughout a shift. In high-heat work environments, climate-controlled rest areas should be accessible during every work-rest cycle. They should ideally be located close to work areas so employees can reach them quickly without their rest time being consumed by travel. Consistent access to cool recovery spaces reduces the risk of heat exhaustion and allows employees to return to work refreshed and alert. Develop an Acclimatization Period for New Hires and Returning Workers Heat acclimatization is the gradual introduction of employees to heat exposure, allowing their bodies to physiologically adapt over time. It is particularly important for new hires who have not yet developed the heat tolerance required by their role, but it is not exclusive to them. Employees returning from extended absences due to illness, vacation or leave should undergo a similar reintroduction process, as heat tolerance can diminish after just a few days away from the work environment. As with work-rest cycles, NIOSH and the Centers for Disease Control and Prevention provide a recommended acclimatization schedule to guide this process. While applicability may vary by operation, it serves as a practical framework for reducing risk during the adjustment period. For more information, refer to the NIOSH acclimatization schedule. Take Action Heat-related injury and illness are serious occupational hazards, but with the right program in place, they are largely preventable. By monitoring temperatures, establishing work-rest cycles, maintaining hydration stations, providing cooling PPE, ensuring access to climate-controlled rest areas, and implementing acclimatization protocols, organizations can meaningfully reduce the risk of heat-related harm to their workforce. Start by evaluating your current practices against these seven best practices and take the necessary steps to build a safer, healthier work environment for everyone in your facility.

Project delays and cost overruns are common in the construction sector, as project delivery depends on many moving parts and can be disrupted by factors such as adverse weather, economic volatility, and shifting scope and design requirements. When projects are delayed or exceed their initial budget, the consequences can extend beyond the immediate cost or schedule impact and include legal disputes, reputational damage and wider financial losses. To reduce their exposure, construction firms should understand the common causes of project delays and cost overruns and adopt appropriate risk mitigation measures to reduce their impact. Defining the Problem A schedule delay arises when construction firms fail to meet planned project milestones (e.g., planning approval, commencement of construction, and project completion) on time. Delays can occur at any stage of the project lifecycle, from early design through to final delivery. Similarly, cost overruns—where the actual cost of a construction project exceeds its estimated cost—can arise at any point. While distinct, delays and cost overruns are closely interconnected and rarely occur in isolation. A range of factors, both within and beyond the control of project teams, can disrupt progress, making effective planning and ongoing risk management essential. Key Risks Many factors can cause project delays and cost overruns. Common risk drivers include the following: Inaccurate estimating and scheduling—Overly optimistic timelines, underestimated budgets or unrealistic assumptions about resource availability can place projects under strain from the outset, leaving little margin for error and increasing the likelihood of delays and higher project costs. Scope creep and change orders—Changes to project scope, whether driven by clients or unforeseen circumstances, can disrupt schedules and inflate costs. Incremental changes can accumulate into significant overruns without strict controls. Supply chain volatility—Disruptions in the supply chain, including those driven by geopolitical instability, economic volatility or logistical challenges, can cause fluctuations in material availability and pricing, delaying procurement and potentially increasing overall project costs. External and force majeure events— Severe weather events, natural disasters, utility outages, geopolitical instability, public health events and broader economic disruptions can interrupt construction activities, restrict site access, reduce workforce availability, disrupt project sequencing and increase project costs. These events may also create scheduling uncertainty and require adjustments to contingency planning and resource allocation. Permitting and regulatory delays—Delays in obtaining permits, securing zoning and planning approvals, completing environmental reviews, undergoing inspections or adapting to changing regulatory requirements can disrupt project timelines, delay construction activities, and increase project costs through extended schedules, redesign efforts and additional compliance obligations. Labor shortages—A constrained labor market and limited investment in internal upskilling can reduce the availability of skilled workers, lower productivity, increase wage costs and lead to delays. Ineffective project controls—Weak project controls and poor use of scheduling techniques (e.g., the Critical Path Method) can limit project visibility and result in critical activities being poorly prioritized, increasing the risk of delays and cost overruns. Additional contributing factors include poor communication between stakeholders and weak governance (e.g., ambiguous roles and unclear ownership of responsibilities), which may further hinder project delivery. Understanding Risk Exposure Regardless of their cause, project delays and cost overruns can expose organizations to a range of risks, including the following: Financial risk—Even moderate delays on projects can potentially lead to multimillion-dollar cost increases, particularly given that schedule delays are common. Extended site overheads, increased labor requirements and prolonged equipment use often drive these additional costs. As costs rise, margins quickly erode, especially under fixed-price contracts, where the contractor typically absorbs the additional costs. External disruption events may also generate indirect costs through idle labor, equipment downtime, remobilization expenses, acceleration measures and extended project overheads. Contractual and legal risk—Ambiguities in contracts can lead to disputes between project stakeholders, potentially resulting in claims and litigation. Liquidated-damage provisions in contracts can leave firms liable to predefined penalties if project timelines aren’t met, further increasing contractual exposure. Financing and cash flow risk—Extended timelines may strain cash flow, and contractors may need to take on additional borrowing to sustain operations, reducing overall project returns. Lenders could view over-budget or delayed projects as higher risk, potentially leading to less favorable financing terms and further squeezing profit margins. Reputational risk—Consistent project delays or cost overruns can erode client trust and damage relationships with lenders, suppliers and other stakeholders. Over time, this can make it more difficult to secure future contracts, impacting revenue and long-term growth potential. Risk Mitigation Measures To reduce their exposure to project delays and cost overruns, organizations should consider the following risk mitigation measures: Invest in robust pre-construction planning. Organizations should take a structured approach to project planning from the outset, involving key stakeholders in the cost and schedule estimating process to improve accuracy and align expectations. They should also undertake robust scenario planning to identify potential risks and develop appropriate contingency measures. Establish schedule and cost contingencies. Organizations should incorporate appropriate schedule float and cost contingency reserves into project plans to improve resilience against uncertainty. They should also define governance processes for contingency use, including approval thresholds, trigger events, and procedures for monitoring and releasing contingency throughout the project lifecycle. Use data-driven scheduling and cost tracking. Organizations should leverage digital tools and analytics platforms to enable real-time tracking, improve visibility into project performance, and identify deviations early so corrective action can be taken before issues escalate. Establish strict change-order controls. Organizations should implement a clear change management process that defines procedures for reviewing, approving, and documenting project changes to help prevent scope creep and ensure that impacts on cost, schedule, and quality are effectively managed. Align procurement and contract structure to project risk profile. Organizations should select procurement approaches and contract structures that align with project complexity, commercial objectives, and the intended allocation of cost and schedule risk among project stakeholders. Mechanisms such as fixed-price or cost-plus arrangements, escalation clauses, shared contingency provisions and performance-based incentives can help manage exposure to cost increases, schedule uncertainty and unforeseen project changes. Diversify suppliers and build contingencies. Organizations should build strong relationships with suppliers, avoid relying on a single supplier and maintain buffer stocks to mitigate supply chain risks. Build resilience into project delivery. Organizations should establish business continuity and emergency response plans, monitor external risk indicators, and develop alternative sourcing and site operating procedures to improve resilience against disruptive external events. Strengthen project management capabilities. Organizations should train project teams in decision-making, communication and financial management to enhance overall project management capability and improve delivery outcomes. Conclusion Delivering projects on time and within budget can enhance a firm’s reputation and its ability to compete for future work. Organizations that maintain strong control over planning, execution and risk management may be best positioned to manage uncertainty and keep projects on track. Contact your Cottingham & Butler rep today for additional risk management guidance.

OSHA recently published a proposed rule to remove the Nov. 18, 2036, deadline in its Walking-Working Surfaces standard. This standard would have required all fixed ladders extending more than 24 feet above a lower level to be equipped with personal fall arrest systems or ladder safety systems by this deadline. Background One of the more notable changes introduced by the 2016 rule was a phased-out requirement for cages and wells on fixed ladders, a traditional method of fall protection on tall ladders. While cages and wells give workers a sense of enclosure, research has shown that they provide little actual protection in the event of a fall and can even complicate rescue operations. In their place, the 2016 rule required employers to transition to personal fall arrest systems or ladder safety systems, which are designed to actively stop or arrest a fall rather than simply surround the worker. Employers were given a lengthy transition window, until November 2036, to retrofit existing fixed ladders extending more than 24 feet above a lower level. In July 2025, OSHA received a letter from industry groups petitioning to repeal the requirement for personal fall arrest systems on all fixed ladders extending more than 24 feet above a lower level. The petition requested that employers be allowed to continue using cages and wells or, alternatively, that such systems be permitted while requiring personal fall arrest or ladder safety systems only on ladders installed or modified after a new final rule is issued. New Proposed Rule The new proposed rule, published on April 6, 2026, is intended to provide greater compliance flexibility for employers by removing the deadline for installing personal fall arrest systems or ladder safety systems on all fixed ladders that extend more than 24 feet above a lower level. Employers would still be required to install safety systems on any new ladders or replacements. The change would allow employers to update ladders when they reach the end of their service life, helping to lower costs while maintaining safety standards. What’s Next? Employers should continue to comply with current OSHA standards, particularly ensuring that all new or replacement ladders are equipped with fall arrest or ladder safety systems. Rather than adhering to the 2036 deadline, organizations should consider reassessing long-term retrofit plans and aligning future upgrades with lifespan and risk-based evaluations. OSHA is seeking comments on the proposed rule. Employers may submit comments on or before June 5, 2026, and they should monitor the rulemaking process to adjust compliance strategies once a final rule is issued.

Construction sites are often considered prime targets for theft and vandalism, largely due to their open layouts, minimal after-hours supervision, and the range of valuable materials, tools and equipment stored on-site. According to the National Insurance Crime Bureau, construction site theft in the United States costs the industry between $300 million and $1 billion annually, with more than 11,000 pieces of construction equipment being stolen each year. What’s worse, less than 25% of stolen items are ever recovered. Construction site theft and vandalism can cause both direct and indirect losses. In addition to requiring construction companies to replace or repair missing and damaged materials, tools and equipment on-site, these incidents may also cause prolonged business disruptions and project delays during the recovery process. In some cases, worksite theft and vandalism may even result in insurance challenges, reduced stakeholder confidence and lasting reputational damage, ultimately threatening construction companies’ ability to secure future projects and maintain continued financial stability. Fortunately, there are several steps construction companies can take to better secure their worksites, thereby minimizing criminal activity and related losses. A layered defense strategy—which entails using a combination of physical, technical and environmental security solutions—is the best way to accomplish this feat. This article provides more information on the cost of construction site theft and vandalism and outlines associated layered defense mechanisms. The Cost of Theft and Vandalism Between the lack of consistent oversight and the presence of high-value, easily transportable materials and equipment at construction sites, these locations are attractive targets for criminal activity and mischief. While acts of vandalism are generally the result of criminals looking to cause chaos through malicious property damage, mark their territory with graffiti or simply engage in thrill-seeking behavior, theft incidents usually stem from criminals wanting to resell stolen items in alternative marketplaces for their own financial gain. According to the latest research from surveillance company SentryPODS, the average construction site theft incident costs between $6,000 and $30,000, depending on the type of materials and equipment stolen. Some of the most commonly stolen items from construction sites are power tools, small machinery, lumber, aluminum, and copper wire and piping. In fact, the U.S. Department of Energy confirmed that $1 billion worth of copper is stolen from construction sites each year. There are several direct, tangible losses that construction companies may incur from worksite theft and vandalism. These expenses include replacements and temporary rentals for stolen materials and equipment, repairs for damaged property and site infrastructure, deductibles for related insurance claims, and elevated premiums going forward. Additionally, there are indirect losses that, although harder to quantify, often exceed the total impact of direct losses. These costs include project delays and overruns, subcontractor disruptions, lost productivity, contract disputes and legal penalties, diminished employee morale and higher turnover, reduced client loyalty, and administrative and investigative efforts related to restoring missing or damaged property. Industry experts assert that for every $1 in direct theft and vandalism losses, indirect costs can add $3 to $10 to the overall impact and complexity of a construction project. Layered Defense Mechanisms Given the serious losses that can result from worksite theft and vandalism, it’s imperative that construction companies implement effective risk management practices. A layered defense strategy—also called a defense-in-depth approach— can help protect against criminal activity at construction sites by emphasizing four key pillars: deter, detect, delay and deny. These pillars promote the use of physical, technical and environmental barriers to discourage theft and vandalism attempts, swiftly identify potential perpetrators and slow their progress, and block access to critical assets. Here are some key security solutions for construction companies to include in a layered defense strategy: Perimeter safeguards—Construction sites should be surrounded with proper fencing, such as chain-link panels or anti-climb welded wire panels. Site perimeters should also be secured with heavy-duty locking mechanisms and gates equipped with advanced tracking technology, namely biometric identifiers and radio frequency identification portals, to help identify people and property entering and leaving the area. Posting clear warning signage (e.g., “Trespassers will be prosecuted” placards) may help further deter opportunistic thieves and vandals. Surveillance and lighting—Smart cameras and motion sensor lighting should be placed at all construction site entry points, storage areas and equipment zones to maximize visibility and eliminate potential blind spots. It’s best to use surveillance systems with analytics powered by artificial intelligence to proactively identify suspicious behaviors rather than record incidents once they occur. Access controls and asset protection—Employees should be required to use keycards or other types of advanced access control systems to log worksite entry and their use of project materials, tools and equipment. All construction machinery should be equipped with GPS tracking solutions and engraved with unique codes to facilitate easy identification in the event of theft and prevent unauthorized resale. Portable tools and materials should be stored in locked containers, with designated staff responsible for conducting routine inventory audits to detect theft as quickly as possible. Security personnel and law enforcement—Hiring dedicated security personnel at construction sites, specifically overnight and weekend guards, can ensure consistent supervision and prevent criminals from taking advantage of empty or unmanned areas. In most cases, it can be useful to implement a hybrid model that combines live remote monitoring and physical patrolling of the worksite to help balance security costs and coverage. Furthermore, building strong relationships with local authorities can provide additional insight into effective security measures and promote smooth response efforts amid theft and vandalism incidents. Employee training and workplace culture—Employees should be trained during the onboarding process and throughout their tenure on the layered defense strategy and related worksite security controls to ensure they can play their part in combatting criminal activity on the job. Conducting routine emergency drills that explicitly address theft and vandalism scenarios can help staff build confidence in this strategy and respond accordingly when incidents occur. Employees should also be encouraged to report suspicious behaviors and rewarded for demonstrating an ongoing commitment to site security. Conclusion Theft and vandalism will always pose a risk on construction sites, but these incidents can be prevented with the right strategy. Construction companies that prioritize layered defense mechanisms are likely to experience reduced criminal activity and associated losses. In an industry where margins are tight and schedules are unforgiving, proactive site security isn’t an overhead expense; it’s a worthwhile investment. Contact us today for additional industry-specific risk management guidance.

Construction projects are complex, requiring considerable coordination of people, materials, equipment and schedules, increasing contractors’ exposure to operational, financial and liability risks. While insurance can help manage the financial impact of unexpected events, it is most effective as part of a broader risk management approach that focuses on reducing key exposures before losses occur. The article discusses five risks every construction contractor should be aware of, as well as coverage and risk management strategies. Worksite Injuries and Worker Safety Worksite injuries and fatalities are among the most significant risks in construction. According to OSHA, four common causes are falls, caught-in or -between hazards, struck-by events and electrocution. Beyond the human impact, such events can increase workers’ compensation claims, delay projects and result in regulatory fines. While workers’ compensation insurance can provide coverage for employee medical expenses and wage replacement, repeated safety incidents may increase premiums and limit access to favorable terms. To reduce these risks, contractors should design work processes to eliminate hazards where possible and foster a strong culture of safety, including the consistent use of appropriate personal protective equipment. These efforts should be supported by robust workplace training that addresses hazards, including working at height, operating heavy equipment and working safely around vehicles and machinery. Third-party Liability and Property Damage Construction activities can cause unintended damage to people and property. For instance, digging may damage underground utilities or destabilize neighboring buildings, while site activities may injure passersby. Liability claims can arise months or even years after completion if defective work later causes injury or property damage. To reduce third-party liability exposures, contractors should assess preconstruction sites to identify nearby properties, underground services and public access points and implement controls (e.g., barriers, signage and traffic management). Commercial general liability (CGL) insurance can help financially protect contractors against third-party liability and bodily injury claims. Still, contractors should ensure their policy includes completed operations coverage for claims arising after work is finished. Completed operations liability can also arise from faulty work performed by a subcontractor. As such, many construction contracts include indemnity provisions that require subcontractors to assume responsibility for claims arising from their work. Equipment and Tools Loss or Breakdown Construction equipment is often moved between job sites or stored in temporary locations, leaving it vulnerable to theft, vandalism and other risks (e.g., fire). While commercial property insurance typically provides coverage for equipment kept at a contractor’s primary business location, coverage may not apply once equipment is transported off-site. Contractors can reduce loss frequency by securing equipment when not in use and using GPS tracking or tagging for high-value machinery. Contractors’ equipment coverage under an inland marine policy can help financially protect owned, leased or rented equipment while it is in transit or stored off-site. Since unexpected equipment breakdowns can halt critical activities and delay projects, contractors should also implement routine inspections and preventive maintenance programs to proactively identify issues before mechanical failures occur. Subcontractor and Contractual Risk Construction contractors can be held liable for defects in work performed by subcontractors, a significant risk given the industry’s reliance on subcontracted labor. Accurate language in contracts is essential to manage this exposure. Specifically, hold-harmless or indemnification provisions can be added to construction contracts requiring subcontractors to assume responsibility for claims arising from their work. Contractors can also be named as additional insureds on a subcontractor’s CGL policy, meaning that the subcontractor’s policy may respond first, thereby helping to protect the contractor’s own limits and loss history. Contractors should review subcontractors’ certificates of insurance and verify required policy endorsements before entering into an agreement. For larger, complex projects, wrap-up insurance programs (e.g., owner-controlled or contractor-controlled) can provide centralized coverage for multiple project parties under a single policy. Project Delays and Financial Exposures Construction schedules can be affected by numerous circumstances, including supply chain disruptions, weather, permit delays and errors. Such events can extend delivery timelines and create financial exposure for both contractors and project owners. To manage this exposure and reduce uncertainty, contracts often include liquidated damages clauses and penalty provisions that predetermine the amounts payable to project owners if completion is delayed. Project owners may also require contractors to purchase surety bonds to financially guarantee certain contractual obligations. Contractors should proactively reduce delay and cost risks through measures such as strengthening supply chain visibility and assigning clear accountability for material oversight. From an insurance perspective, professional indemnity insurance can provide coverage for losses arising from errors in a contractor’s professional services, while builders’ risk insurance can provide coverage for the physical damage to or loss of buildings, materials and equipment during construction from risks such as fire, theft or vandalism. Conclusion Construction projects carry inherent risks, and no two projects are the same. To reduce exposures, contractors should regularly review their insurance programs with their brokers and implement proactive risk management measures to protect people, projects and profitability.

Commitment to Lifelong Learning The Cottingham & Butler scholarship award program began in the late ‘90s as a way for the Butler family to support students who wanted to further their education. Our motto at C&B is ‘Better Every Day’, and this scholarship is way to help students take the next step in their journey of lifelong learning. To date, over 360 high school seniors have received this scholarship for their future education and over $1 Million has been given! C&B Scholarship This scholarship is open to the children of C&B employees from all offices and home locations. Graduating high school seniors submit their application, along with an essay, to our team. Applications are reviewed by the Butler family, and then the student is awarded a scholarship to their 2- or 4-year educational institute. 2026 Recipients & Event This year, we had 31 recipients who will be attending 18 different schools this fall. Recipients near Dubuque were invited to join us for a lunch on the Roshek Rooftop to receive their award, hear a few words from Andy Butler, Executive Chair, and hear the story from a past recipient of the scholarship. “I'm currently studying nursing at the University of Iowa,” said Anna Roling, 2025 scholarship recipient. “Receiving this scholarship had such a positive impact on my first year of college. Thank you to C&B for continuing to support students like me. Your generosity truly makes a difference and helps students focus on their goals and future opportunities.” Impacting Generations There are many teammates who work here that have received the scholarship, as they have followed in the footsteps of their parents who worked in insurance at Cottingham & Butler. We’ve even began giving to the second generation. At this year’s event, Landon McKay received a scholarship to help in his journey at UW-Platteville, because of his father, Joel, who works in our Transportation department. In 1999, Joel received the C&B scholarship because his father, Dick, worked for us. “The scholarship program fits the company’s belief in lifelong learning,” said Joel McKay, Vice Presient. “It was very satisfying for me to see my son receiving the scholarship just as it was for my dad over 25 years ago. It is a full-circle moment that our family has been part of Cottingham & Butler long enough to see a second generation receiving the same scholarship that I did back in 1999.”

An executive briefing on the economic and geopolitical shifts defining 2026, and the decisions they put in front of your business. The economy isn't behaving the way the headlines suggest — and that gap is where risk and opportunity live. This outlook explains what's really driving 2026 and what it means for your business, distilled from a May 2026 Cottingham & Butler CEO Summit session with Shailesh Kumar, who leads The Hartford's Global Insights Research Center and has advised at the U.S. Treasury and Eurasia Group. What's inside: Why consumer spending holds up despite deep pessimism — and the vulnerability that could reverse it The interest-rate reset, and why ultra-cheap money isn't coming back AI as an economic engine: how much it's really driving growth, and where it could break. The demographic shift no policy can reverse, and what an aging workforce means for hiring and growth Tariffs and a fracturing world order: what the headline numbers get wrong Five executive takeaways for your people, your footprint, and the year ahead "You can change tariffs and you can change monetary policy — but you can't change demographics. It's the trend running underneath everything else." Download the Full Outlook Get the full outlook and connect with your Cottingham & Butler representative on the steps worth taking before these forces reach your bottom line.

In our most recent webinar, "Covered or Exposed? What Your Business Doesn't Know About Cyber Risk," Cottingham & Butler and UnRavl cyber specialists pulled back the curtain on the misconceptions and blind spots that leave businesses vulnerable and underinsured. Whether you've had a cyber policy for years or you're evaluating coverage for the first time, this session gave attendees the clarity to make smarter decisions before an incident forces your hand. Key takeaways and insights... Application Accuracy Is Your First Line of Defense Get your application wrong and your claim can be denied entirely — regardless of how large your loss is. Accuracy isn't optional; it's the foundation of your coverage. Attackers Are Patient — Proactive Detection Is Not Optional The breach you think didn't happen may already be in progress. With an average dwell time of 197 days, waiting for alerts is not a strategy. A Response Plan on Paper Is No Plan at All Know who to call, what not to do, and what your policy requires — before ransomware hits. Practice your plan or you won't execute it under pressure. Compliance Satisfies Auditors — Security Protects Your Business Passing your SOC 2 or HIPAA audit is the minimum bar. Real protection requires continuous monitoring, testing, and controls that go beyond the checklist. The Cloud Shifts Responsibility — It Doesn't Eliminate It You own your data's security at the application and identity layer. No cloud provider agreement changes your regulatory obligations or your exposure. Click here to the view the presentation.

Matt Shefchik, Assistant Vice President, Total Rewards Consulting | Cottingham & Butler In Part 1 of our three-part compensation and total rewards series, Matt Shefchik, AVP of Total Rewards Consulting at Cottingham & Butler, breaks down the salary planning data shaping pay decisions in 2026. Most organizations entered the year planning increases in the 3.5–3.6% range — a number reinforced by the BLS Employment Cost Index at 3.4% and the Atlanta Fed Wage Tracker at 3.7%. Beyond the headline number, Matt highlights the importance of also adjusting formal salary structures, and cautions against blanket increases — different roles and career levels are moving at different rates, making a more surgical approach the smarter play. Salary budgets have moderated from the highs of 2022 due to slower job growth, greater discipline in pay practices post-Great Resignation, and ongoing economic uncertainty. CPI sits around 3.3%, though Matt advises focusing on wage movement data rather than cost of living when making pay decisions. Parts 2 and 3 of this series will cover variable pay plan design and the impact of rising benefit costs on total compensation strategy — and Cottingham & Butler's 2026–2027 Salary Planning Survey results will be published around Labor Day.

Highlights Each year, the IRS announces inflation-adjusted limits for HSAs and HDHPs. By law, the IRS is required to announce these limits by June 1 of each year. The adjusted contribution limits for HSAs take effect as of Jan. 1, 2027. The adjusted HDHP cost-sharing limits take effect for the plan year beginning on or after Jan. 1, 2027. On May 29, 2026, the IRS released Revenue Procedure 2026-24 to provide inflation-adjusted limits for health savings accounts (HSAs) and high deductible health plans (HDHPs) for 2027. The IRS is required to publish these limits by June 1 of each year. These limits include the following: The maximum HSA contribution limit; The minimum deductible amount for HDHPs; and The maximum out-of-pocket expense limit for HDHPs. These limits vary based on whether an individual has self-only or family coverage under an HDHP. Eligible individuals with self-only HDHP coverage will be able to contribute $4,500 to their HSAs for 2027, up from $4,400 for 2026. Eligible individuals with family HDHP coverage will be able to contribute $9,000 to their HSAs for 2027, up from $8,750 for 2026. Individuals age 55 and older may make an additional $1,000 “catch-up” contribution to their HSAs. The minimum deductible amount for HDHPs increases to $1,750 for self-only coverage and $3,500 for family coverage for 2027 (up from $1,700 for self-only coverage and $3,400 for family coverage for 2026). The HDHP maximum out-of-pocket expense limit increases to $8,700 for self-only coverage and $17,400 for family coverage for 2027 (up from $8,500 for self-only coverage and $17,000 for family coverage for 2026). Action Items Employers sponsoring HDHPs should review their plans’ cost-sharing limits (i.e., the minimum deductible amount and the maximum out-of-pocket expense limit) when preparing for the plan year beginning in 2027. Employers allowing employees to make pre-tax HSA contributions should update their plan communications with the increased contribution limits. Also, to prevent adverse tax consequences for employees, employers should review their benefit election processes and work with their payroll providers to help keep pre-tax HSA contributions within the adjusted IRS limits as much as possible. The following chart shows the HSA and HDHP limits for 2027 compared to 2026. It also includes the catch-up contribution limit that applies to HSA-eligible individuals age 55 and older, which is not adjusted for inflation and stays the same from year to year. HSA/HDHP Limits Type of Limit 2026 2027 Change HSA Contribution Limit Self-only $4,400 $4,500 Up $100 Family $8,750 $9,000 Up $250 HSA Catch-up Contributions (not subject to adjustment for inflation) Age 55 and older $1,000 $1,000 No change HDHP Minimum Deductible Self-only $1,700 $1,750 Up $50 Family $3,400 $3,500 Up $100 HDHP Maximum Out-of-Pocket Expense Limit (deductibles, copayments and other amounts, but not premiums) Self-only $8,500 $8,700 Up $200 Family $17,000 $17,400 Up $400

AUTHOR Claire Kitz Senior Consultant Total Rewards Consulting Those within the field of human resources often discuss compensation as a line item — a cost to be managed, a benchmark to be met, or a lever to be pulled. Benefits, in turn, are framed as enhancements: signals of care, investments in wellbeing, expressions of organizational generosity. But then, this frame misses something essential. Compensation is not merely financial, and benefits are not merely supplementary. The difference between them is much deeper, more human, and ultimately more consequential. At its core, compensation is one of the clearest ways modern organizations answer the question: Is a person's contribution valuable, and what is it worth? Organizations are not only designing pay programs; they are shaping how people are seen, perceived, defined, valued, and understood. Work, for most people, is not just a means of paying bills but a pivotal way they participate in the world. It structures time and creates a pathway for contribution. In this sense, compensation becomes more than a wage; it becomes a nod to distinction and recognition. It is the translation of effort, skill, and responsibility into something perceived and evident. As renowned analytical psychiatrist Carl Jung suggests, meaning is often found where competence meets contribution; work gives life purpose, structure, and profundity. In the workplace, compensation is where contribution is acknowledged and confirmed. Benefits, by contrast, operate differently. They communicate care, stability, and long-term support. They matter, often deeply. But they do not carry the same symbolic weight. Benefits say, "We support you." Compensation says, "Your contribution is worthy." That distinction, subtle on the surface, profoundly shapes how employees experience their work. This philosophical distinction is borne out in the data. Across industries and geographies, research consistently shows that compensation is the primary driver of employee decision-making. Studies from Willis Towers Watson find that pay remains the leading reason employees join or leave organizations, outweighing factors such as benefits, flexibility, and even career development opportunities. Similarly, Mercer has shown that fair and competitive compensation is the strongest predictor of perceived organizational fairness, a critical driver of engagement and retention. While benefits contribute meaningfully to satisfaction, it is compensation that most directly shapes behavior. Pay is the #1 reason employees join or leave organizations, outranking benefits, flexibility, and career development. Source: Willis Towers Watson Part of this is economic, but part of it is psychological. Compensation is immediate. It is experienced in real time, every pay period, as it funds housing, food, debt, and the rhythms of daily life. Benefits, on the other hand, are often deferred or conditional. Retirement contributions exist in the future. Health insurance becomes real only in moments of need. Even generous benefits can feel distant or abstract, particularly when they are complex or underutilized. Behavioral economics helps explain this gap. People naturally prioritize what is immediate over what is delayed. They assign greater value to what is certain over what is contingent. A dollar in salary is fully owned, fully flexible, and fully understood. A dollar in benefits is often discounted, perceived as partial, conditional, or simply invisible. Over time, this creates a consistent pattern: organizations invest heavily in benefits, but employees continue to place greater weight on cash compensation. Yet the importance of compensation extends beyond immediacy. It also functions as a powerful signal of fairness and dignity. Employees want to know whether they are paid fairly relative to their peers. They ask whether their compensation reflects their contribution and whether the market would value them differently elsewhere. In this way, compensation becomes a proxy for fairness within the organization. Research from both Mercer and Willis Towers Watson underscores how quickly perceived pay inequity erodes trust. When employees believe they are underpaid, no amount of benefits largesse can fully repair that perception. In fact, compensation is tied to something fundamental: the fairness of exchange. When that balance is off-kilter, the impact leads to profound employee dissatisfaction. This is where many organizations miscalculate. Benefits are often overestimated in their impact because they are expensive, visible in aggregate, and aligned with a genuine desire to care for employees. They are also taxefficient and scalable, making them an attractive investment from a design perspective. But from the employee's point of view, their value is frequently diluted by lack of understanding, limited utilization, or simply the distance between offering and experience. Data from Willis Towers Watson consistently shows that employees undervalue benefits relative to their employer cost, particularly for retirement and ancillary programs. This creates a muted but persistent mismatch. Employers see intention and investment. Employees experience ambiguity and distance. Compensation, by contrast, is unmistakable. There is also a directional quality to compensation that benefits cannot replicate. Compensation can be shaped to reflect performance, reinforce priorities, and align individual effort with organizational outcomes. Merit increases, bonuses, and incentives all serve as signals, not just of value, but of what is worth striving for. Benefits, by design, are more static and egalitarian. They support employees broadly but do little to differentiate contribution or guide behavior. Taken together, these dynamics reveal why compensation carries more weight. It operates simultaneously on multiple levels: it sustains the life work pays for, communicates value in a psychological sense, affirms fairness, and connects work to meaning and purpose. Benefits still matter. They enhance the employee experience and reflect organizational care. But they are not foundational in the same way as compensation. In a world where work occupies such a central place in human life, this distinction matters. Organizations are not only designing pay programs; they are shaping how people are seen, perceived, defined, valued, and understood. If benefits communicate care, compensation communicates value and worth. And in the calculus of human motivation, feeling valued will almost always outweigh feeling supported.