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As we look ahead to 2026, the risk landscape continues to shift in ways that demand attention from business leaders across every industry. Recent insights from Insurance Business Magazine, and other industry experts highlight several critical exposures that could impact your operations, your bottom line, and your ability to recover from unexpected events. At Cottingham & Butler, we're helping clients navigate these emerging challenges with proactive risk management strategies and tailored insurance solutions. Here's what's on our radar—and what should be on yours. Climate Risk Isn't Slowing Down Natural catastrophes are becoming more frequent, more severe, and more expensive. In 2025 alone, the U.S. experienced over 30 billion-dollar weather events—from flash flooding to extended wildfire seasons. For businesses in transportation, hospitality, and beyond, this means reconsidering traditional property coverage assumptions. Now is the time to review your property limits, explore specialized endorsements for flood and wildfire exposure, and stress-test your business continuity plans. Is your coverage keeping pace with replacement costs? Do you have a plan to keep operations running if your facilities are temporarily inaccessible? Cyber Threats Are More Sophisticated Than Ever Cyberattacks aren't just growing in number—they're growing in complexity. Cloud service outages in 2025 created ripple effects across entire supply chains, and generative AI is now being weaponized to create highly convincing phishing campaigns and system breaches. Basic cybersecurity measures are no longer enough. Your cyber insurance policy should address first-party losses, third-party liability, regulatory fines, ransomware demands, and reputational harm. If you haven't reviewed your cyber coverage recently, now's the time. Supply Chain Vulnerabilities Persist Whether it's climate-related disruptions, geopolitical instability, or vendor failures, supply chain fragility remains a top concern. Insurers are paying closer attention to contingent business interruption (CBI) exposures—and so should you. Ask yourself: Where are your critical vendors located? How quickly can you pivot to alternative suppliers? Does your insurance program provide adequate coverage for supply-chain-related losses? These aren't hypothetical questions—they're essential planning considerations. New Liability Exposures Are Emerging Liability risks are evolving, and 2026 brings heightened focus on environmental and regulatory issues. One area gaining traction is PFAS liability—so-called "forever chemicals." As states implement stricter environmental regulations, businesses in manufacturing, agriculture, hospitality, and other sectors may face lawsuits and cleanup obligations. Now is the time to reevaluate your Directors & Officers (D&O), environmental, and pollution liability coverage to ensure you're protected against these emerging exposures. What This Means for Your Business The risk environment isn't just changing—it's accelerating. Waiting until renewal time to address these exposures could leave your organization vulnerable. The businesses that will thrive in 2026 are the ones taking action today. Ready to Get Ahead of These Risks? Cottingham & Butler specializes in helping businesses across transportation, hospitality, manufacturing, and beyond build resilient risk management programs. Our team can conduct a comprehensive review of your current coverage, identify gaps, and recommend solutions tailored to your industry and operations. Let's start the conversation. Contact your Cottingham & Butler representative today to schedule a risk review.

The transportation industry faced significant headwinds in 2025, but our captive programs proved their worth when it mattered most. Through disciplined risk management and the strength of collective partnership, we didn't just weather the storm - we thrived. As we close out the year, the results speak for themselves. Early Planning, Better Outcomes Timing matters in insurance planning. This year, members across all 8 Cottingham & Butler trucking captives received their renewal terms an average of 46 days before their renewal date. This early delivery gave our members the runway they needed to make informed decisions and plan confidently for the year ahead. Rate Relief Where It Counts While the broader market faced obstacles, our captive members saw meaningful rate improvements. 34% of trucking captive members received Auto Liability rate decreases at renewal, and an even more impressive 60% saw their Work Comp rates go down. These reductions reflect the power of collective risk management and the strength of our membership. A Vote of Confidence Perhaps the most telling metric: we maintained 100% voluntary retention across all transportation captive program members. When renewal time came, every single member chose to stay. This isn't just a retention number - it's a testament to the value, service, and partnership our captive programs provide. Returning Value to Members The captive model operates on a simple principle - when the program performs well, members share in that success. In 2025, we returned $22.9 million in dividends to trucking captive members, dollars that went back into their businesses rather than disappearing into traditional insurance markets. Looking Ahead These results didn't happen by accident. They reflect the power of what's possible when transportation companies come together with a shared commitment to building something better than what the traditional market offers. While the traditional market continues to fluctuate, our captive members are building stability, retaining more capital, and planning with confidence. Together, we can achieve more. Contact your Cottingham & Butler captive expert to see how these captive results could positively impact your business!

The Current State of Commercial Auto Insurance The numbers tell a concerning story. Trucking auto liability premiums have surged 36 percent per mile over the past eight years, creating persistent unprofitability for insurers and financial pressure for motor carriers. What makes this trend particularly frustrating is that truck crashes have actually declined over the past four years, yet premiums continue their upward trajectory. It's no surprise that in 2025, insurance cost and availability ranked as the third-greatest issue facing the trucking industry, while lawsuit abuse, a primary driver of rising insurance costs, came in second. How Fleets Are Responding In response to these financial pressures, motor carriers are getting creative with their risk management strategies. Many are exploring: ATRI's previous research revealed that from 2018 to 2020, many fleets reduced coverage and raised deductibles in search of savings. While these changes self-incentivized safety improvements, carriers still experienced higher premiums overall. Why This Research Matters As Josh Hankins, J.B. Hunt Senior VP of Safety & Security, notes: "The total cost of risk is growing annually for every fleet, regardless of size. While many carriers are cutting back on insurance coverage to control expenses, premiums keep climbing and reducing coverage only heightens exposure to catastrophic litigation." ATRI's new research aims to expand on previous findings by examining industry-wide trends in the adoption and effectiveness of various risk management strategies. Understanding what works and what doesn't can help the entire industry make more informed decisions. Participate and Gain Valuable Insights ATRI is requesting motor carriers to submit data on their coverage stacks for 2021 through 2024, along with information on safety technology usage and alternative insurance arrangements. All data remains completely confidential and is analyzed only in aggregate form. ATRI will sign non-disclosure agreements as needed. The benefit for participating carriers?  A customized report comparing your fleet's cost of risk to an anonymous peer group - valuable intelligence for benchmarking and strategic planning. Motor carriers can complete the survey  by PDF  or  online here .  The deadline is Friday, December 19. How Cottingham & Butler Can Help At Cottingham & Butler, we work daily with transportation companies navigating these exact challenges. Our specialized transportation insurance team understands the unique pressures facing motor carriers and can help you: Evaluate your current coverage structure and total cost of risk Identify safety technologies and protocols that may positively impact your insurance costs Explore alternative insurance arrangements that may fit your operation Develop comprehensive risk management strategies tailored to your fleet The commercial auto insurance landscape isn't getting easier, but with the right data, strategies, and insurance partnership, fleets can better position themselves to weather this storm. Ready to discuss your transportation insurance strategy?  Contact our transportation insurance specialists at Cottingham & Butler to learn how we can help protect your operation while managing costs. For more information about ATRI's research or to participate in the survey, visit the ATRI website. Survey deadline: December 19, 2025.

For small trucking fleets, the current freight environment presents a particularly difficult challenge. According to the American Transportation Research Institute's (ATRI) recently released 2025 findings in  An Analysis of the Operational Costs of Trucking , the gap between operational costs and achievable rates is creating unsustainable margins across the industry - and small fleets are feeling the pressure most acutely. The Small Fleet Reality ATRI's research reveals that the industry's average cost of operating a truck in 2024 was $2.260 per mile. However, when lower fuel costs are excluded, marginal costs actually rose 3.6 percent to $1.779 per mile—the highest non-fuel operating costs ever recorded by ATRI. For small fleet owners operating on thin margins and competing against larger carriers for freight, these rising costs create a critical challenge: how do you maintain profitability when your costs are climbing but rate pressure remains intense? Small fleets often face additional cost disadvantages. While larger carriers might negotiate volume discounts on equipment, parts, and insurance, smaller operators typically pay more on a per-unit basis. This makes every dollar of operational cost even more critical to understand and manage. Where Small Fleets Are Getting Hit Hardest ATRI's data shows cost increases in areas that disproportionately affect small fleets: Truck and trailer payments  surged 8.3 percent to a record-high $0.390 per mile. Small fleets that recently invested in new equipment to remain competitive are seeing these payments consume a larger portion of revenue. Driver benefits costs  increased 4.8 percent to $0.197 per mile. Small fleets must offer competitive benefits to attract and retain quality drivers, yet have less flexibility to absorb these rising costs than larger operations. Insurance costs  remain a significant expense category, and small fleets often face higher rates due to smaller risk pools and less negotiating power with insurers. Meanwhile, while driver wage increases slowed to 2.4 percent and fuel costs declined, these areas of relief don't offset the rising fixed costs that small fleets must pay regardless of how many loads they haul. The Margin Crisis for Small Operators The profitability picture is particularly stark for smaller carriers. ATRI's findings show average operating margins below 2 percent in every sector except less-than-truckload (LTL), with the truckload sector posting an average operating margin of -2.3 percent. For small fleets operating just a handful of trucks, negative margins can quickly become an existential threat. "The trucking industry is facing the most challenging freight market in years, with loads down and costs increasing," said Groendyke Transport, Inc. President and CEO Greg Hodgen. "ATRI's Operational Costs data and the customized benchmarking report that compares us to similar fleets are more critical than ever as we navigate rising costs and decreasing margins in this adverse environment." Small fleet operators face difficult decisions in this environment: accept unprofitable loads to keep trucks moving, park equipment until rates improve, or exit the industry altogether. The report documents industry-wide impacts including a 2.2 percent drop in truck capacity, empty miles rising to 16.7 percent, and many carriers reducing staff and parking trucks. Rate Negotiations When You're the Smaller Partner Small fleets typically have less leverage in rate negotiations than their larger competitors. When you're competing for business against carriers with hundreds of trucks, it's challenging to hold firm on rates that cover your true costs. However, small fleet operators who understand their exact cost per mile—and can clearly communicate their value proposition—are better positioned to negotiate sustainable rates. This is where having a partner who understands the unique challenges of small fleet operations becomes valuable. At Cottingham & Butler, our transportation specialists work extensively with small and mid-sized fleets to help them compete more effectively while managing costs. How Small Fleets Can Strengthen Their Position Get Clarity on Your True Costs  – Many small fleet owners have a general sense of their costs but lack the detailed per-mile breakdown needed for effective rate discussions. We help you understand exactly how insurance, risk management, and other fixed costs factor into your operations so you can identify your true minimum sustainable rates. Optimize Insurance Costs for Your Fleet Size  – Our team specializes in finding competitive coverage options designed for smaller operations. Even a modest reduction in insurance premiums can meaningfully impact your bottom line when operating on tight margins. Build Safety Records That Support Better Rates  – One area where small fleets can compete with larger carriers is safety performance. Strong safety records can lead to lower insurance costs and provide concrete evidence when negotiating with quality-focused customers who value reliable service. We help develop practical safety programs scaled appropriately for smaller operations. Access Better Risk Management Resources  – Large carriers have dedicated risk management departments; small fleets typically don't. We provide the expertise and resources that help level the playing field, from DOT compliance support to driver qualification programs to claims management guidance. Understand Your Competitive Advantages  – Small fleets offer unique benefits: flexibility, personalized service, direct owner involvement, and often superior communication. When rate discussions focus solely on price, small fleets lose. We help you articulate the total value you provide and identify customers who appreciate these advantages. Plan for Equipment Decisions Strategically  – Whether you're considering adding trucks as you grow or need to make difficult decisions about fleet size during slow periods, your insurance program must adapt accordingly. We ensure your coverage aligns with your current operations and provide guidance on the insurance implications of fleet changes. Positioning for Better Times Ahead Small fleets that manage costs effectively during this challenging period will be positioned to thrive when rates recover. Having a clear understanding of your operational costs—including insurance and risk management—helps you make informed decisions about which loads to accept, how to negotiate rates, and where you can potentially reduce expenses without compromising service quality. The full ATRI report is available on  ATRI's website , and we encourage small fleet operators to review the detailed cost breakdowns. Understanding how your costs compare to industry benchmarks strengthens your position in every customer conversation. If you'd like to discuss how Cottingham & Butler's transportation team can help your small fleet navigate these market challenges while optimizing insurance costs and building competitive advantages through risk management, we're here to help. Our specialists understand the unique pressures facing small fleet operators and provide practical, cost-effective solutions tailored to your operation's size and needs. Sources: American Transportation Research Institute (ATRI). (2025).  An Analysis of the Operational Costs of Trucking: 2025 Update . Retrieved from  https://truckingresearch.org/

In a recent webinar, safety expert TJ Greenwood walked attendees through the critical details of OSHA 300 log recordkeeping - a compliance requirement that can make or break a site inspection. TJ provided practical guidance on accurately completing the OSHA 300 log, explaining why this document is often the first thing OSHA inspectors request and how proper maintenance creates a positive impression. Participants gained actionable strategies for staying compliant and avoiding common recordkeeping pitfalls. Key Takeaways Master the requirements for OSHA 300 log recordkeeping to maintain accurate records and avoid compliance issues that could arise during OSHA inspections. Learn proven techniques for completing the OSHA 300 log correctly, ensuring your documentation demonstrates your organization's commitment to workplace safety and regulatory compliance. Understand how to prepare and present your OSHA 300 log effectively during OSHA inspections, as it is often the first document requested. Implement practical strategies to maintain ongoing compliance with OSHA recordkeeping requirements, helping your organization stay audit-ready and reduce potential penalties. Click here to view the presentation.

OSHA recently announced its top 10 most frequently cited standards during the 2025 fiscal year using preliminary data. This information is valuable for all businesses as it helps them identify common exposures that affect their workforce. It also gives them the information they need to take proactive safety measures and plan their compliance programs.   For 2025, the top 10 most cited standards were as follows:   Fall protection - General requirements (1926.501): 5,914 total violations Hazard communication (1910.1200): 2,546 total violations Ladders (1926.1053): 2,405 total violations Control of Hazardous Energy - Lockout/tagout (1910.147): 2,177 total violations Respiratory protection (1910.134): 1,953 total violations Fall protection - Training requirements (1926.503): 1,907 violations Scaffolding (1926.451): 1,905 total violations Powered industrial trucks (1910.178): 1,826 total violations Personal protective and life-saving equipment—Eye and face protection (1926.102): 1,665 total violations Machine guarding (1910.212): 1,239 total violations   Several standards changed positions from fiscal year 2024. For instance, “Respiratory protection” moved down from fourth to fifth, and “Scaffolding” violations moved up from eighth to seventh. “Fall protection - General requirements” remained OSHA’s most frequently cited standard for the 15th consecutive fiscal year.   Each day, workers suffer preventable injuries, illnesses and deaths related to the hazards addressed in these standards. OSHA publishes this list to alert employers about these commonly cited standards so they can take steps to find and fix recognized hazards in these and other standards.   How Cottingham & Butler Can Help At Cottingham & Butler, our risk management specialists work closely with clients to address OSHA compliance challenges and reduce workplace safety violations. We can conduct comprehensive safety assessments to identify potential hazards, develop customized training programs to ensure your team understands and follows proper safety protocols, and help you implement effective safety management systems. Our team also provides ongoing support with policy development, safety audits, and corrective action plans to help you maintain compliance and create a culture of workplace safety. Don't wait for an OSHA inspection to uncover issues - contact us today to learn how we can help protect your employees and your business.

Winter weather can be devastating for agricultural operations. Frozen pipes, collapsed roofs, and equipment failures cost the agricultural industry billions of dollars annually, according to the USDA's Risk Management Agency. The good news? Most winter damage is preventable with proper preparation. Whether you manage a family farm or a large commercial operation, this guide will help you protect your property and keep your business running through the cold months ahead. Start with Your Buildings Check Your Roofs Before the first snow, walk through all your barns, storage buildings, and equipment shelters. Look for sagging, damaged shingles, or signs of weakness. Heavy snow can cause roof collapse, especially on older structures. If you see concerning signs, call a structural engineer - it's much cheaper than rebuilding. Don't forget gutters and downspouts. Clear them out so melting snow can drain properly and prevent ice dams. Seal Up Gaps Walk around the outside of every building looking for cracks in walls or foundations. Small gaps let in cold air that can freeze pipes and drive up heating costs. Use weatherproofing materials to seal cracks, and check that doors and windows close tightly. Protect Your Water Systems Burst pipes are one of the most expensive winter problems. According to the Insurance Information Institute, water damage from a single burst pipe can cost thousands of dollars. Simple Prevention Steps: Wrap exposed pipes with foam insulation Add heat tape to pipes in unheated areas Drain and shut off water to unused buildings Install heated waterers for livestock Know where your main water shut-off valve is located When temperatures drop below 20°F, check your water systems every day. Catching a problem early can save you from a major disaster. Get Your Heating Systems Ready Heating equipment causes many farm fires during winter, according to the National Fire Protection Association. Before cold weather hits: Have a professional service all furnaces and heaters Clean chimneys and vents Test your thermostats Make sure you have good ventilation (to prevent carbon monoxide poisoning) Keep spare parts on hand for critical systems Also check your electrical system. Winter means more heating, lighting, and tank heaters running at once. Have an electrician verify your system can handle the load and that your backup generator works. Winterize Your Equipment Cold weather is hard on machinery. Prepare your equipment by: Switching to winter-weight oils and fluids Adding fuel conditioner to prevent diesel from gelling Testing batteries (cold reduces battery power by up to 50%) Checking tire pressure (it drops in cold weather) Storing equipment under cover when possible Keeping fuel tanks full to prevent condensation Drain water from pressure washers, sprayers, and irrigation systems. Store chemicals according to their temperature requirements - many products are ruined if they freeze. Be Ready for Emergencies Keep These Supplies on Hand: Backup generator with fuel Emergency lighting and batteries Snow removal equipment in good working order Ice melt or sand for walkways Emergency contacts for contractors and utilities First aid supplies Take photos of your property and equipment now for insurance documentation. Review your insurance policy to understand what winter damage is covered, and make sure staff know your emergency procedures. Special Considerations for Livestock If you have animals, also: Ensure barns have good ventilation while staying warm Check heated waterers work properly Stock extra bedding Verify feed storage is accessible during heavy snow Test all barn doors and latches Stay Ahead of the Weather Check weather forecasts daily during winter. When severe weather is predicted, do an extra inspection of your facilities. The National Weather Service recommends taking preventive action before storms hit, not during or after. Address small problems immediately - they become expensive emergencies if ignored. Why This Matters Yes, winter preparation takes time and money. But it's always cheaper than repairs and lost productivity. Facilities that follow these guidelines experience fewer insurance claims, less downtime, and avoid emergency situations that could threaten their entire operation. Don't wait for the first freeze. Start your winter checklist today. Partner with Agricultural Risk Management Experts At Cottingham & Butler, we've spent decades helping agricultural operations prepare for and navigate winter challenges. We understand that every farm and agribusiness is different, which is why our risk management specialists work closely with you to: Identify vulnerabilities in your specific operation Create customized winter preparation plans Ensure you have proper insurance coverage for winter-related damage Provide ongoing support throughout the season Our clients who implement thorough winter preparation protocols see fewer claims, less downtime, and greater peace of mind. Whether you're a small family operation or a large commercial facility, we're here to protect what you've built. Contact Cottingham & Butler today to discuss your winter preparation and agricultural risk management needs.

Many employee benefits are subject to annual dollar limits that are adjusted for inflation by the IRS each year. The following commonly offered employee benefits are subject to these limits: High deductible health plans (HDHPs) and health savings accounts (HSAs); Health flexible spending accounts (FSAs); 401(k) plans; and Transportation fringe benefit plans. The IRS typically announces the dollar limits that will apply for the next calendar year before the beginning of that year. This gives employers time to update their plan designs and make sure their plan administration is consistent with the new limits. This Compliance Overview includes a chart of key employee benefits limits for 2026. It also includes the 2025 limits for comparison purposes. Most of these limits increase for 2026. Although the contribution limit for dependent care FSAs is not indexed for inflation, the One Big Beautiful Bill Act increased the limit, effective for 2026. *Limits that are not adjusted for inflation LINKS AND RESOURCES IRS Revenue Procedure 2025-19 : 2026 limits for HSAs and HDHPs IRS Notice 2025-67 : 2026 limits for retirement plans IRS Revenue Procedure 2025-32 : 2026 limits for health FSAs, adoption assistance and transportation fringe benefits

The Affordable Care Act (ACA) created a federally financed subsidy, called the premium tax credit (PTC), to help eligible individuals and families with low or moderate incomes afford health insurance purchased through an Exchange. During the COVID-19 pandemic, Congress temporarily enhanced the PTC by eliminating the income cap for eligibility and increasing the amount of the subsidy for all income brackets. According to a Congressional Research Service report, the number of Exchange enrollees receiving subsidized coverage rose from 9.2 million in 2020 (before the PTC enhancements) to 19.3 million in 2024. The enhanced PTC is scheduled to expire at the end of 2025. When the enhanced subsidies expire, individuals and families with incomes above 400% of the federal poverty level (FPL) will no longer be eligible for PTCs. Also, for individuals still eligible for PTCs, the amount will be smaller compared to the enhanced credits. This is expected to lead to a reduction in federal spending, as well as an increase in premiums and a rise in the number of individuals without health coverage. Subsidy Eligibility In general, to receive the PTC, an individual must enroll in health insurance through an Exchange and: Have household income of at least 100% and no more than 400% of FPL for the taxpayer’s family size*; Not be eligible for coverage through a government-sponsored program; and Not be eligible for employer-sponsored health coverage that is affordable and provides minimum value. *The subsidy enhancements temporarily removed this income cap. Future of Enhanced Subsidies Unless extended by Congress, the subsidy enhancements will expire at the end of 2025. The spending bill enacted by Congress to end the government shutdown did not extend the enhancements. Although the Senate has agreed to vote on the enhanced PTC in December, its future remains uncertain. Potential Impact Employers may feel the impact of the expiration of the enhanced PTC in various ways, depending on their workforce demographics and benefit offerings. As premiums increase in the individual insurance market, more employees may seek to enroll in employer-sponsored coverage where it is available. Employees who are not eligible for affordable coverage through their current employers may consider switching jobs to gain access to such coverage. Also, if fewer employees qualify for the PTC, an applicable large employer’s potential liability for a pay-or-play penalty under the ACA may be reduced. However, employers that sponsor individual coverage health reimbursement arrangements (ICHRAs) that help employees pay their individual health insurance premiums may need to increase their contributions to keep coverage affordable for their employees

President Donald Trump recently unveiled TrumpRx.gov , a federally operated website where individuals can buy prescription medications at discounted prices. Pfizer said their drugs listed on the platform will offer savings of an average of 50%. The website indicates it is expected to launch in January 2026 and would point consumers to pharmaceutical companies’ direct-toconsumer websites to fill their orders. These website deals would be available for patients who are not using their health insurance. At this time, it’s unclear whether the website will be helpful for Americans covered by private insurance, Medicare or Medicaid. The creation of TrumpRx.gov was part of a negotiated agreement between the administration and Pfizer , as the pharmaceutical company will invest $70 billion in domestic manufacturing facilities. This was the first deal related to the Most Favored Nation (MFN) pricing, and the president said similar deals with other drugmakers are in the works. In fact, AstraZeneca became the second drugmaker to enter a deal and agree to offer its drugs at a discount of up to 80% off list prices through TrumpRx. In general, the TrumpRx website is a new drug pricing initiative defined by these two pillars: A government-run portal aimed at steering patients directly to manufacturers’ direct-to-consumer websites to purchase medications without insurance (out-of-pocket at discounted rates set by the government) Trade and pricing tactics aimed at forcing concessions from drug manufacturers Industry Feedback An anonymous government official told NPR that the discounts would only apply to people paying out of pocket, and because they’re tied to the drugs’ high list prices, the reduced rates might still leave many patients paying more than they would through their insurance. The American Journal of Managed Care also expressed concerns from analysts about the plan’s viability. It noted that the MFN order driving TrumpRx is likely to face legal challenges, as a similar effort during Trump’s first term was blocked in court. Other analysts have also shared that, regardless of impact, this is forcing conversations about greater price transparency around pharmaceuticals and health care in general. Employer Takeaway The vast majority of Americans have health insurance and likely won’t need to use TrumpRx. Implications of MFN are still unclear and, in some cases, a medication may be cheaper with insurance. If employer plan participants buy drugs from TrumpRx instead of from ordinary pharmacies, they might still send the receipts to the plans and ask for reimbursement. However, depending on how the direct purchasing platform works and what kind of connections it does (or doesn’t have) to pharmaceutical distribution, employers and plan administrators may not hear about the prescriptions until the reimbursement requests show up. Employers should continue to monitor prescription drug changes. We’ll keep you updated with any notable developments.

Employee handbooks are important for establishing employee expectations, addressing workplace issues and defending against potential lawsuits. Failing to update the employment policies in these handbooks regularly can make employers vulnerable to legal risks and liabilities that may result in costly fines, penalties and attorney fees. Employment laws are often complicated, and employers must know about new regulatory developments that may impact their organizations and workforce. The start of the year provides employers with an excellent opportunity to review and update their policies. Several important legal developments in 2024 include: Captive audience bans Final regulations implementing the Pregnant Workers Fairness Act (PWFA) Paid medical and family leave laws Creating a Respectful and Open Workplace for Natural Hair (CROWN) Acts Expanded protected classes Pay transparency Increased enforcement of employees’ rights under the National Labor Relations Act (NLRA) This HR Compliance Bulletin explores seven employment policies employers should consider reviewing in 2025. HR Compliance: Action Steps Outdated policies can expose organizations to unnecessary legal risks. Regularly reviewing and updating employment policies is an effective and cost-effective way for employers to protect themselves. By understanding the most important rules and regulations to review in 2025, employers can take steps to ensure their employment policies are current and reflect the most recent regulatory developments. Captive Audience Bans In 2024, several states passed or introduced legislation to bar employers from requiring employees to attend “captive audience” meetings on religious or political matters. These laws prohibit employers from coercing employees into attending or participating in meetings that are sponsored by the employer and that concern the employer’s views on religious or political matters, including union organization. The bans on captive audience meetings generally include exceptions for certain communications that employers are legally required to make. Currently, 12 states have passed legislation allowing employees to opt out of captive audience meetings, including: Alaska (effective July 1, 2025) California (effective Jan. 1, 2025) Connecticut Hawaii (bans political speech only) Illinois (effective Jan. 1, 2025) Maine Minnesota New Jersey New York Oregon Vermont Washington This trend is likely to not only continue in 2025 but also grow. For example, Maryland, Massachusetts, New Mexico and Rhode Island have introduced similar laws that remain under consideration. Additionally, on Nov. 13, 2025, the National Labor Relations Board (NLRB) ruled that an employer violates the NLRA by requiring employees, under the threat of discipline or discharge, to attend a meeting in which the employer expresses its views on unionization. This decision only applies to future NLRB cases. In light of this trend, employers should consider reviewing their employment policies regarding workplace meetings. For example, employers can draft policies that clearly indicate that workplace meetings regarding religious or political matters are voluntary and that employees will not be punished or benefited for either attending or not attending those meetings. Employers can also ensure that discussions of political or religious matters during required meetings, including discussions related to unionization, are prohibited. PWFA Accommodations The PWFA, which went into effect on June 27, 2023, requires reasonable accommodations for a qualified individual’s limitations related to pregnancy, childbirth and related medical conditions. The PWFA requires employers with at least 15 employees to provide reasonable accommodations to workers with known limitations related to pregnancy, childbirth or related medical conditions unless the accommodation will cause the employer an “undue hardship.” On April 15, 2024, the U.S. Equal Employment Opportunity Commission (EEOC) issued a final rule to implement the PWFA, which went into effect on June 18,2024. The final regulation clarifies definitions and limitations under the PWFA and seeks to help employers understand their duties under the law. The final rule includes information to help employers meet their responsibilities under the new law. The PWFA has significantly expanded workplace rights and protections for employees affected by pregnancy, childbirth and related conditions, and employers will likely continue to face increased compliance burdens and litigation risks as they attempt to comply with the law. For example, under the PWFA, an individual affected by pregnancy or related conditions may be entitled to a reasonable accommodation for any need or problem they may have related to their personal health or the health of the pregnancy, regardless of severity. Additionally, many accommodations sought under the PWFA will likely be for modest or minor changes in the workplace for limitations that are temporary. The EEOC has also determined that four types of modifications, known as “predictable assessments,” will, in virtually all cases, be found to be reasonable accommodations that do not impose an undue hardship when sought by a pregnant worker. These modifications include allowing the pregnant individual to: Carry and drink water as needed Take additional restroom breaks Sit, for those whose work requires standing, and stand, for those whose work requires sitting Take breaks as needed to eat and drink Since the law’s enactment, the EEOC has prioritized enforcing the PWFA, as evidenced by the agency filing five merit lawsuits under the law in fiscal year (FY) 2024. The agency will likely continue focusing on PWFA-related enforcement efforts in 2025 and beyond. Additionally, the number of private lawsuits claiming employers failed to accommodate pregnant workers will likely increase in 2025. As such, employers should review and familiarize themselves with this law. Savvy employers will look at the EEOC’s final PWFA regulations and consider including a policy in their 2025 employee handbook that explicitly addresses PWFA accommodations. Moreover, forward-thinking employers will increasingly engage in the interactive process with covered employees and applicants who require accommodations under PWFA. Establishing clear and written policies and procedures for pregnancy accommodations is a best practice for employer consistency and transparency. Employers can do this by articulating the employer’s commitment to assisting employees, outlining the employer’s process for requesting accommodations, specifying available accommodations and providing guidelines for assessing requests. Employers must also ensure that these policies align with not only all provisions of the PWFA but also those of all applicable federal, state and local laws to support legal compliance. Paid Family and Medical Leave Paid family and medical leave laws ensure workers continue receiving a portion of their wages when they’re unable to work under certain circumstances, such as illness or the birth of a child. In 2024, many states and localities enacted paid leave laws, and several states have proposed paid leave legislation pending. The trend of paid leave is expected to continue in 2025 as more states adopt paid family, medical and sick leave laws. For example, in 2025, paid leave laws will become effective in Alaska, Maryland, Maine, Delaware and Michigan. Currently, nearly one-third of states (and the District of Columbia) have passed their own paid sick leave laws. The requirements of each such law can differ significantly, which can raise compliance challenges—particularly for employers with a distributed workforce. In particular, each paid sick leave law may vary with respect to the amount of leave employees can take, the reasons leave may be taken, the method of accrual, and whether and in what circumstances sick leave can carry over from year to year. Additionally, some states are expanding the circumstances in which employees may take paid leave. For example, New York requires paid prenatal personal leave starting in 2025. Because of the increasing number of states and localities adopting paid leave laws, employers need to ensure their leave policies are current and comply with local laws. It is critical to review existing policies to confirm they conform to state and local regulations of the location where employees physically work. An employer’s leave policies can clearly explain when employees are eligible for paid leave and any steps they must follow to request it. Employers should also verify their leave policies do not unintentionally discriminate against employees based on a protected class. CROWN Acts CROWN Act legislation has gained traction across state and local legislatures in recent years. As of 2024, 27 states and morethan 50 localities have passed a CROWN Act. These laws intend to eliminate discrimination based on traits historically associated with race—specifically, hair textures and hairstyles. CROWN laws generally prohibit racially discriminatory workplace dress codes and hygiene policies that ban employees from maintaining certain hairstyles commonly or historically associated with race, such as afros, braids, twists, cornrows, locs and other similar hairstyles. In 2024, a nationwide CROWN Act was introduced in both houses of the U.S. Congress. Similar legislation was blocked in 2019 and 2022, so it is unclear whether the 2024 effort will experience the same fate. Nonetheless, employers should continue to track both state and federal legislation and take measures to ensure employees are protected from discrimination on the basis of such traits historically associated with race. Looking ahead to 2025, the EEOC has signaled that it will pursue discrimination claims related to hair texture and style. As more states and localities adopt hair discrimination laws, employers must ensure their workplace dress codes, grooming policies and related handbook provisions are current and comply with state and local laws. It is critical to review existing policies to ensure they accommodate different hairstyles by not banning or restricting certain hair textures and styles that are associated with race, national origin and ethnicity. Expanded Protected Classes In general, employers may not discipline, discharge, refuse to hire or otherwise discriminate in terms, privileges or conditions of employment on the basis of an individual’s protected class. Federal anti-discrimination laws protect individuals from discrimination based on race, color, religion, sex (including pregnancy, gender identity and sexual orientation), national origin, disability, age (40 or older) and genetic information. In recent years, several states have expanded the scope of characteristics that are protected under their anti-discrimination laws. In addition to hair-based discrimination protections discussed above, states and municipalities have expanded anti-discrimination protections to the following classes: Height and weight (Michigan, District of Columbia and New York City) Caste (Seattle and Fresno) Marital or family status (nearly half of states) Actual or perceived family responsibilities (Illinois) Reproductive health decisions, including termination of pregnancy (California, Delaware, Hawaii, Illinois and New York) Sexual orientation, gender expression and gender identity (more than half of states) Military status (California, Connecticut, Illinois, Massachusetts, New Jersey, New York, Ohio, Rhode Island, Virginia and Washington) Victims of domestic violence (California, Connecticut, New York, Illinois and Rhode Island) Employers must ensure that their workplace policies keep up with the expansion of protected classes under state and local anti-discrimination laws. Employers should review and revise their discrimination policies to address any new protected classes in the locations where their employees are located. Additionally, employers should monitor for state and local legislative action expanding protected classes that may impact their workforce. Pay Transparency Pay transparency laws have increased in recent years, and states continued to pass and introduce pay transparency legislation in 2024. In general, pay transparency is when an employer openly communicates pay-related information to prospective and current employees through established practices. These laws aim to address pay inequality and promote wage transparency by requiring employers to disclose compensation information and increasing employee access to salary data. While these laws vary in their requirements, they often require employers to post salary ranges in job postings or disclose salary information to existing employees and job applicants. Colorado started the trend of pay transparency laws when it enacted the first legislation of its kind in 2021. Between 2021 and 2024, additional pay transparency laws took effect in Maryland, Connecticut, Nevada, Rhode Island, Washington, California, New York and several municipalities. More states continued the trend in 2024, with new pay transparency legislation taking effect in Hawaii and the District of Columbia, along with expanded requirements in Maryland. Additional pay transparency laws will take effect on Jan. 1, 2025, in Illinois, Minnesota and Vermont and on July 31, 2025, in Massachusetts. As applicable laws and regulations related to pay transparency vary based on jurisdiction, employers must consider their legal obligations. This involves any jurisdiction where their employees physically work. Some jurisdictions’ laws only require employers to provide pay ranges if the candidate requests it; others, like California’s pay transparency law, require employers to disclose this information upfront. Given the rapid spread of pay transparency laws, even if employers are currently unaffected by pay transparency mandates, they should consider developing strategies to address this issue, as pay transparency likely already impacts them directly or indirectly. Employers can protect themselves and help ensure compliance with applicable laws by understanding applicable pay transparency requirements and regularly reviewing job postings. Employers should consider implementing practices— such as publishing pay scales for their open positions or hosting informational training sessions on pay-related topics — and updating their employment policies accordingly. NLRA Employee Rights Section 7 of the NLRA grants employees the right to engage in concerted activity for the purpose of collective bargaining and mutual aid or protection. These protections apply to both unionized and non-unionized non-supervisory employees. Concerted activity generally includes any activity by a group of employees attempting to improve wages, hours and working conditions for the group. As a result, the NLRA generally prohibits employers from maintaining or applying policies that interfere with employees’ rights to engage in union or other concerted activities. In recent years, the NLRB has been very active in enforcing the NRLA. During the first half of FY 2024, there was a 7% increase in unfair labor practices (ULP) charges. This increase in ULP charges follows a trend over the last few years. For example, in FY2023, ULP charges increased 10% compared to FY 2022 and 19% in FY 2022 compared to FY 2021. In addition to prioritizing enforcement actions, the board has expanded potential remedies under the NLRA, placed restrictions on confidentiality and non-disparagement provisions in severance agreements of non-supervisory employees, and revised its test for determining whether an employer’s policy or workplace rule infringes on employees’ protected concerted activity.Therefore, it’s critical that employers ensure their workplace policies related to employee conduct and speech do not infringe upon employees’ rights under Section 7. Employers should consider reviewing the following policies: Personal conduct Non-disparagement Conflicts of interest Confidentiality provisions related to wages, discipline, investigations and harassment complaints Outside employment Audio and video recording in the workplace Restrictions on speaking to the media Electronic communications Complaint policies Class action waivers Dress codes and uniform policies Solicitation and distribution policies At-will employment waivers Social media policies Moving into 2025, employers should review their workplace policies to make sure they are not drafted in a way that may chill an employee’s right to organize and engage in protected concerted activity or address whistleblower activity. This Compliance Bulletin is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel for legal advice. ©2024 Zywave, Inc. All rights reserved.

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.