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The IRS has issue d Revenue Ruling 2025-4 , pro viding long-awaited guidance on the federal tax treatment of contributions and benefits under state paid family and medical leave (PFML) programs. The ruling addresses how federal income and employment tax rules apply to the programs and includes guidance on related reporting requirements. The guidance was issued Jan. 15, 2025. The ruling is effective for payments made on or after Jan. 1, 2025, but transitional relief applies for payments during 2025. Currently, 13 states and the District of Columbia have enacted mandatory PFML programs. The ruling does not address state PFML programs that are voluntary. Action Steps Employers should study the revenue ruling so they are prepared to comply with federal tax requirements for PFML contributions and payments. In particular, employers should act to ensure that their payroll and W-2 form practices meet withholding and reporting requirements detailed in the guidance. The IRS is soliciting comments on additional situations and aspects of state PFML that are not covered in the revenue ruling. Employers may submit their written comments by April 15, 2025. State Mandatory PFML Programs In recent years, mandatory PFML programs have been enacted across the country, with 13 states and the District of Columbia having put in place PFML mandates to date. Additional states have established voluntary PFML programs, but the revenue ruling explicitly exempts these programs from its coverage. State PFML programs vary on features like employee eligibility requirements, covered employers, length of benefit coverage, amount of compensation, qualifying reasons for leave and job protections. Many state PFML laws also allow employers to meet their PFML obligations through an approved private PFML plan. The IRS guidance discusses the rules it articulates in the context of a particular state PFML program (“State X”), whose described features are fairly standard, including funding from both employer contributions and employee payroll withholding at a set rate based on a percentage of employee wages, remitted to a state-administered fund. The revenue ruling does not apply to private plans. Federal Tax Treatment of PFML Contributions and Benefits Employer Contributions In general, according to the revenue ruling, employers may deduct their mandatory contributions to PFML programs as an excise tax. These amounts are not included in the federal gross income of the employee under IRS Code § 61. State PFML laws often allow employers to voluntarily pay part or all of their employees’ required contributions to the program. The ruling terms this an “employer pick-up” and allows the employer to deduct the payment as a business expense. The payments are treated as additional compensation to the employee under § 61 and included in wages for federal employment tax purposes. In addition, the employer must report the pick-up on the employee’s Form W-2. However, the employee may deduct the employer pick-up as state income tax, but only if the employee itemizes their deductions and only up to the state and local income tax (SALT) deduction limit. Employee Contributions Employees may similarly deduct the PFML contributions that are withheld from their pay by their employer as an income tax payment, but again only if they itemize their tax deductions and only up to the SALT limit. Even though these amounts are withheld from the employee’s wages, they are included in the employee’s gross income, and the employer must report the contributions on the employee’s Form W-2. Benefit Payments Generally, state paid family leave (as opposed to medical leave) payments must be included in employees’ gross income. However, these amounts are not wages subject to federal employment taxes. Nonetheless, states must file with the IRS and provide employees with a Form 1099 for any paid family leave payments of $600 or more in a taxable year. State medical leave payments are treated differently in the revenue ruling. For these benefits, only the portion of the payments attributable to the employer’s contribution is included in the employee’s gross income. This portion is also subject to both the employer’s and employee’s shares of Social Security and Medicare taxes. The amount of the medical leave payment attributable to the employee’s portion of contributions is excluded from the employee’s gross income and is not subject to Social Security or Medicare taxes. Tax Requirement Tables The revenue ruling included the two tables below detailing the tax requirements of contributions and payments under state PFML programs. Table 1. Summary of the Federal Income Tax Consequences of Contributions to State PFML Programs Types of Contributions Consequence to Employer Consequence to Employee Employer contribution Employer may deduct the employer contribution as an excise tax under § 164 of the IRS Code. Employee does not include the employer contribution in employee’s federal gross income. Employee contribution Employer must include the employee contribution as wages on employee’s Form W-2. Employee contribution is included in employee’s federal gross income as wages. Employee may deduct the employee contribution as state income tax under § 164 if employee itemizes deductions on employee’s federal income tax return, but only to the extent the deduction for state tax paid does not exceed the SALT deduction limitation provided under § 164(b)(6). Employer pick-up of employee contributions Employer may deduct the employer pick-up payment that employer pays from employer’s funds as an ordinary and necessary business expense under § 162. Employer must include the employer voluntary payment as wages on employee’s Form W-2. The employer pick-up is additional compensation to employee and is included in employee’s federal gross income as wages. Employee may deduct the employer pick-up of the employee contribution as state income tax under § 164 if employee itemizes deductions on employee’s federal income tax return, but only to the extent the deduction for state tax paid does not exceed the SALT deduction limitation provided under§ 164(b)(6). Table 2. Summary of the Federal Income Tax Consequences of Family and Medical Leave Benefits Paid by State PFML Programs Type of Benefits Amount Attributable to Employer Contribution Amount Attributable to Employee Contribution Family leave benefits Employee must include the amount attributable to the employer contribution in employee’s federal gross income (employer contribution not previously included in employee’s federal gross income). This amount is not wages. State must file with the IRS and furnish employee a Form 1099 to report these payments. Employee must include the amount attributable to the employee contribution, as well as to any employer pick-up of the employee contribution, in employee’s federal gross income. This amount is not wages. State must file with the IRS and furnish employee a Form 1099 to report these payments. Medical leave benefits Employee must include the amount attributable to the employer contribution in employee’s federal gross income (employer contribution not previously included in employee’s federal gross income) except as otherwise provided in § 105. This amount is wages. The sick pay reporting rules apply to the medical leave benefits attributable to employer contributions. These payments are third-party payments (by a party that is not an agent of the employer) of sick pay. The amount attributable to the employee contribution, as well as to any employer pick-up of the employee contribution, is excluded from employee’s federal gross income. Effective Dates The revenue ruling states that it is effective for payments made on or after Jan. 1, 2025; however, the ruling provides the transition relief detailed below for payments made during calendar year 2025: Medical leave benefit payments made in 2025 attributable to an employer’s contribution —States and employers are not required to follow the income tax withholding and reporting requirements applicable to third-party sick pay. Neither the state nor the employer will be liable for any associated penalties under Code § 6721 for failure to file a correct information return or under § 6722 for failure to furnish a correct payee statement to the payee. Medical leave benefit payments made in 2025 attributable to an employer’s contribution —States and employers are not required to comply with § 32.1 and related Code sections (as well as similar requirements under § 3306) during the calendar year or to withhold and pay associated taxes; consequently, associated penalties will not apply. Employer pick-up payments made during calendar year 2025 —Employers are not required to treat amounts they voluntarily pay for any part of an employee’s required PFML contribution as wages for federal employment tax purposes under §§ 3121(a), 3306(b) and 3401(a). Comments Requested The IRS is soliciting comments on additional situations and aspects of state PFML programs that are not cover ed in Revenue Ruling 2025-4. The comments may be submitted electronically via the federal e-rulemaking portal at https://www.regulations.gov . Comments may also be submitted by mail to the following address: Internal Revenue Service, CC:PA:LPD:PR ( Revenue Ruling 2025-4  PDF ), Room 5203, P.O. Box 7604, Ben Franklin Station, Washington, D.C., 20044. Comments should be submitted in writing on or before April 15, 2025.

As a dedicated broker in the construction industry, we pride ourselves on going above and beyond to meet the evolving needs of our clients. Recognizing the critical importance of subcontractor prequalification and the power of analytics, we have forged strategic partnerships with leading firms to provide comprehensive solutions. One such partnership is with Maple Insight, a company formed to address these specific industry challenges and deliver exceptional value through innovative analytics. A well-structured prequalification process can be the key to securing the right project partners and avoiding the risks of costly Subcontractor delays. For Construction Managers and General Contractors (CM/GCs), prequalification is essential for identifying Subcontractors who meet both financial and operational requirements. For Subcontractors, a thorough prequalification submission can unlock new project opportunities. This article provides actionable steps for both CM/GCs and Subcontractors to optimize the prequalification process. By emphasizing relevance, precision, and clear communication, here are a few strategies for making the prequalification process as effective as possible for all involved. Focus on Relevant Information Construction Managers : Design your prequalification process to gather only information that genuinely matters. Avoid generic questions that add little insight. For instance, asking Subcontractors about their largest project completed may not be useful for assessing a Subcontractor’s fit for a smaller, highly specialized, or time-sensitive project. Further, information revealed by questions regarding legal and safety history often must be verified independently anyways to ensure accuracy, regardless of the response. If the process does not yield reliable, relevant data that screens Subcontractors for the unique needs of each project, it risks becoming a cumbersome formality. Subcontractors : Invest the necessary time to provide complete, honest, and relevant information. Ensure each response is accurate, detailed, and clear. Avoid submitting incomplete or vague answers just to move through the application quickly - mismatched numbers or unclear responses can decrease your chances of award if the CM/GC team must validate your information further. A reliable, complete submission is not just a compliance step; it is a chance to stand out and make a strong impression.   Treat It Like a Job Interview Construction Managers : Each submission should be evaluated with the project’s unique needs in mind. Avoid a one-size-fits-all approach; instead, consider the Subcontractor’s suitability for the specific project type and the acceptable risk level. Rather than relying on annual reviews, request updated prequalification submissions for each bid and evaluate each Subcontractor based on the unique needs of the project and the timing of the award. Business circumstances can change, and this approach provides a current picture of each “applicant,” helping you to make informed decisions. Subcontractors : Present your firm as you would in a job interview, tailoring your responses to the project's specific needs. For example, curating a list of references from projects similar to the one you are bidding on is more relevant than listing only large projects. A follow-up with the CM/GC purchasing team (as appropriate) to emphasize your interest and offer additional information can also set your firm apart, especially if the CM/GC staff is not already familiar with your company. The more trust you can build in a prospective client, and the easier you can make their decision, the better your chance of earning a repeat client.   Quantify Risk for Clear Decision-Making Construction Managers : Make data-driven prequalification decisions. Instead of relying on subjective ratings like “medium risk” or letter grades, quantify default risk in financial terms to better evaluate risk/reward balance. As yourself: does the potential financial upside justify the risk? Or do the risk indicators suggest the need for additional protective measures? When risks are expressed in quantified terms, teams can make more informed, objective decisions, which ultimately helps keep projects on schedule and within budget. Subcontractors: When CM/GCs use data-driven insights to make decisions, it is important to provide them with high-quality data. For instance, self-prepared financial documents often present challenges to the CM/GC who must analyze them and assess your appropriateness for a project. Paying an accountant for Reviewed financials may seem costly upfront, but it provides the high-confidence data that CM/GCs need. Providing high-quality and verified data points (in any part of the application, not only the financial component) differentiates your firm and enhances your chances of success.   A successful prequalification process does more than eliminate unfit Subcontractors—it lays the groundwork for long-term partnerships between CM/GCs and dependable trade professionals. By following these strategies, CM/GCs can achieve more informed decision-making, while Subcontractors gain a stronger platform to secure new business and build a lasting reputation. Written by Thomas Kellogg, President of Maple Insight in partnership with Cottingham & Butler.

Major Changes The landscape of trucking industry contracting practices may be on the verge of significant change, following new recommendations from the Federal Motor Carrier Safety Administration's (FMCSA) Truck Leasing Task Force (TLTF). In a recently released report, the task force has taken a strong stance against Lease-Purchase (LP) programs, recommending their outright prohibition based on findings of systematic issues affecting independent contractors. Understanding the Report's Key Findings The TLTF's investigation revealed concerning patterns in current LP programs. The task force found these arrangements often result in significant financial hardship for drivers, with programs frequently lacking equity potential and proper vetting processes. Perhaps most troublingly, the investigation uncovered that these issues weren't isolated incidents but rather systematic problems across the industry. The report highlighted several critical shortcomings in current LP programs: Insufficient disclosure requirements Poor program vetting processes Limited success rates for participants Lack of regulatory oversight Inadequate remedies for affected contractors Looking Forward: Recommended Changes The task force's recommendations are comprehensive, focusing on four main areas: First, they advocate for complete prohibition of current LP program structures. Second, they call for increased oversight mechanisms to prevent exploitative practices. Third, they recommend implementing both federal and state enforcement measures. Finally, they emphasize the need for enhanced protections and educational resources, including mandatory disclosures and specific contract provisions. What This Means for the Industry While these findings represent a significant development, it's important to understand that this report is currently in its initial stages. Implementation of any recommendations would require navigation through multiple legislative and regulatory processes. One potential outcome could be the integration of new oversight measures into existing frameworks, similar to the Federal Truth in Leasing regulations (49 CFR 376.12). Industry Best Practices Moving Forward For motor carriers, this report serves as a crucial reminder to evaluate their contractor relationships carefully. Progressive companies are already implementing more robust vetting processes and transparent contractual arrangements. This includes utilizing comprehensive evaluation tools and risk assessment frameworks to ensure compliance and fairness in their independent contractor programs. The report's findings underscore the importance of proactive risk management and program evaluation. Motor carriers would be wise to begin reviewing their current practices and implementing stronger oversight measures, rather than waiting for potential regulatory changes. Conclusion While the TLTF's recommendations are still in their early stages, they signal a potential shift in how the industry approaches contractor relationships. Forward-thinking companies will use this as an opportunity to evaluate and enhance their programs, ensuring they're well-positioned for any future regulatory changes while maintaining positive relationships with their independent contractors. The trucking industry stands at a crossroads, and how companies respond to these developments could shape their success in the years to come. Staying informed and proactive in addressing these concerns will be crucial for maintaining competitive advantage while ensuring fair treatment of independent contractors.

As we reported at the beginning of the year, the Paperwork Burden Reduction Act was signed into law allowing employers to meet Form 1095 distribution requirements for the 2024 reporting year by posting a notice of availability and then only distributing upon request . On February 21, 2025, the IRS released Notice 2025-15 providing further detail on how to satisfy the notice requirement and confirming that such notice must be posted by March 3, 2025 for the 2024 reporting year.  If you still choose to distribute the 1095 forms to all employees, those must be delivered by March 3, 2025. Form 1094 along with all Form 1095s must be submitted electronically to the IRS by March 31, 2025. Failure to timely distribute or report complete, accurate information can result in penalties up to $330/form. Alternative Manner of Furnishing – Posting Notice of Availability If you choose to post the notice instead of delivering the 1095 forms, please follow the requirements just released by the IRS and use the Sample Notice provided at the end of this Alert.  The notice requirements are as follows: A clear and conspicuous notice must be posted on a website that is reasonably accessible to all possible Form 1095 recipients (i.e., full-time employees and individuals covered under the employer’s level-funded or self-funded plan, if applicable). Therefore, a benefits portal or payroll portal that is only available to current employees is unlikely to work. The employer’s public-facing website is probably more appropriate. A statement reading “Tax Information” on the website’s main page in an appropriate font-size along with visual clues or graphics to draw attention could then lead to a secondary page including the actual notice. For the 2024 reporting year, the notice must be posted by March 3, 2025 and remain in the same location on the website through October 15, 2025. The notice must include an email address, physical address, and telephone number that can be used to request a copy of Form 1095. If after posting notice of availability the employer receives a request for a Form 1095, the Form 1095 must be provided within 30 days and would have to be hand delivered or mailed unless the employer obtains specific consent from the individual to provide the Form 1095 electronically. Sample Notice A model notice has not been made available, but something like the following may be appropriate:   IMPORTANT HEALTH COVERAGE TAX DOCUMENTS​ The 2024 Form 1095s are prepared and available upon request. The Form 1095s provide information about offers of coverage made to full-time employees [ if your plan is self-funded, also include: “as well as coverage information for those who enrolled in ABC Company’s group health plan ”]. To request a copy of your Form 1095 or for further information about Form 1095s, you can reach out to [ include contact name or department ] via [must include an email address, physical mailing address, AND telephone number ].​ If you have any questions about your reporting or posting responsibilities, please contact your Cottingham & Butler service team today.

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.

The Federal Motor Carrier Safety Administration (FMCSA) is modernizing its Safety Measurement System (SMS) to enhance road safety and simplify compliance monitoring. Here's what motor carriers need to know about the upcoming changes. Three Major Updates 1. Streamlined Compliance Categories The FMCSA has reorganized its compliance categories to better reflect safety priorities: A new "Vehicle Maintenance: Driver Observed" category separates violations that drivers can identify during routine inspections Controlled Substances/Alcohol violations now fall under Unsafe Driving Operating while Out-of-Service violations are consolidated into relevant categories 2. Simplified Violation Groups The current system's 2,000+ individual violations will be consolidated into approximately 100 violation groups. This means: Similar safety issues are grouped together Multiple violations of the same type during one inspection count as a single violation Carriers face more consistent evaluation standards Focus shifts to identifying safety issues rather than counting violations 3. Clear-Cut Severity Weights Gone is the complex 1-10 scale. The new system uses just two weights: Weight of 2: Out-of-Service violations and Driver Disqualifying violations Weight of 1: All other violations What This Means for Your Operation These changes will streamline how you: Monitor safety performance Prepare for inspections Address compliance issues Train your drivers Next Steps Preview your data on the CSA Prioritization Preview website Update your safety programs to align with new categories Train your team on the new violation groups Review your maintenance and compliance procedures Stay Informed The FMCSA continues to refine these changes through industry feedback and data analysis. Future webinars will address additional updates, including: Improved intervention thresholds Additional compliance category changes Updated utilization factors Questions? Contact the CSA InfoLine Team at 877-254-5365 or visit  https://csa.fmcsa.dot.gov/PrioritizationPreview .

American Transportation Research Institute's (ATRI) release of the "Top 10 Trucking Industry Concerns for 2024" serves as a crucial tool for industry stakeholders by providing a clear picture of the key issues impacting tanker truck operators and the broader transportation sector. As the industry continues to evolve, ATRI's findings reflect the pressing challenges operators are facing across various sectors, including regulatory compliance, workforce shortages, and the increasing demand for safety advancements, with these top concerns expected to influence strategic planning and policy decisions in the year ahead. Industry concerns identified within the study are: Economy - Economic uncertainty and market volatility continue to challenge fleet operators' ability to maintain stable operations and plan for future growth. Lawsuit Abuse Reform - The rising tide of nuclear verdicts and predatory litigation practices threatens carriers' financial stability and drives up operational costs across the industry. Driver Shortage - The persistent lack of qualified drivers remains a critical issue, with an estimated shortage of over 80,000 drivers nationwide affecting delivery schedules and capacity. Driver Retention - Companies struggle to keep experienced drivers, facing high turnover rates that impact operational efficiency and training costs. CSA - Compliance, Safety, Accountability scores remain a key concern as carriers work to maintain favorable ratings while navigating complex regulatory requirements. Driver Distraction - The increasing presence of technology and other distractions on roadways poses significant safety risks for tank truck operators and other motorists. Insurance Cost / Availability - Skyrocketing insurance premiums and limited coverage options create substantial financial pressure on carriers, particularly smaller operations. Battery Electric Vehicles - The transition to electric vehicles presents both opportunities and challenges, including infrastructure needs and operational adjustments for tank truck fleets. Diesel Technician Shortage - The growing scarcity of qualified diesel technicians impacts fleet maintenance capabilities and vehicle downtime. Driver Compensation - Finding the right balance between competitive pay packages and operational costs continues to challenge carriers in attracting and retaining quality drivers. The full report is available on ATRI’s website by clicking here . Our team at  Cottingham & Butler understands the trucking landscape.  With decades of industry experience, we offer a complete 360-degree suite of property & casualty, employee benefit, claims administration, safety and risk management services. With an array of comprehensive solutions, our team can go beyond basic insurance, providing insight and coverage second to none. For more information about managing your fleet's risks, contact your Cottingham & Butler representative .

The American Transportation Research Institute released its 14th annual list highlighting the most congested bottlenecks for trucks in America. The "2025 Top Truck Bottleneck List" identifies and ranks the 100 worst traffic bottlenecks affecting trucks across America's highways, drawn from monitoring over 325 crucial freight locations. The rankings are created by analyzing massive amounts of GPS data from freight trucks, using specialized software to process the information. This GPS tracking data is valuable enough that it's also utilized by the U.S. Department of Transportation to study freight movement patterns and issues. The Top 10 Bottlenecks are: Fort Lee, NJ:  I-95 and SR 4 near the George Washington Bridge Chicago: I-294 at I-290/I-88 Houston: I-45 at I-69/US 59 Atlanta: I-285 at I-85 (North) Nashville: I-24/I-40 at I-440 (East) Atlanta: I-75 at I-285 (North) Los Angeles: SR 60 at SR 57 Cincinnati: I-71 at I-75 Houston: I-10 at I-45 Atlanta: I-20 at I-285 (West) Our team at  Cottingham & Butler understands the trucking landscape.  With decades of industry experience, we offer a complete 360-degree suite of property & casualty, employee benefit, claims administration, safety and risk management services. With an array of comprehensive solutions, our team can go beyond basic insurance, providing insight and coverage second to none. For more information about managing your fleet's risks, contact your Cottingham & Butler representative .

In today's economy, skyrocketing healthcare costs create significant challenges for employers and employees alike. How can organizations provide valuable benefits while managing expenses? The Family Advantage Health Plan offers an innovative solution – providing eligible employees with 100% healthcare coverage for their families while helping employers save 5-15% on health plan costs. Key Benefits This program requires no changes to your current plan, networks, or broker relationships. Employees receive a payroll bonus to enroll in another employer's health plan, plus full reimbursement for all out-of-pocket expenses through a Health Reimbursement Arrangement. Employees with higher healthcare needs gain complete coverage, while employers improve their risk profile and reduce costs – a true win-win. Simple Eligibility Two requirements apply: Employees must have been enrolled in your major medical plan for at least 12 months They must have access to another employer-sponsored health plan (typically through a spouse) How It Works Participants enroll in their spouse's employer plan as primary insurance and the Family Advantage Health Plan as secondary coverage. They receive a debit card for smaller expenses and an app for claiming larger reimbursements. Additionally, families receive approximately $50 per covered member monthly to offset premiums. On average, employers save $10,000 for every family of four that transitions to this program. Learn More Watch our video below to discover how the Family Advantage Health Plan can revolutionize your benefits strategy while reducing healthcare expenses.

Moving into 2025, the commercial property insurance market appears to be stabilizing, and most renewals with favorable loss histories will see single-digit rate increases (non-catastrophe (CAT) exposed assets with good loss histories can expect flat to 10% rate increases). While some complex risk profiles are still difficult to place and challenges remain in high-risk areas with persistent capacity and pricing pressures (e.g., wildfire zones), the double- or triple-digit rate increases the commercial property insurance segment saw in 2023 are less common. Although the market appears to be more stable and competitive, updated CAT models may affect the risk appetite of insurers and lead to pricing fluctuations.   Developments and Trends to Watch: Natural Disasters Through October 2024, the United States saw 24 weather and climate disasters with losses exceeding $1 billion, according to the National Oceanic and Atmospheric Administration. As of the third quarter of 2024, insured losses from natural disasters reached approximately $108 billion, with severe convective storms being the primary cause. Hurricane Helene incurred insured losses estimated between $10 billion and $15 billion, making it the costliest event in the year’s first nine months. Furthermore, projected losses from Hurricane Milton are expected to range from $30 billion to $60 billion. Overall, total insured losses for 2024 are anticipated to exceed $140 billion, indicating another year of significant financial impact from natural disasters. A Stable Reinsurance Market and Increased Capacity The reinsurance market stabilized in 2024 and is expected to recover close to pre-COVID-19-pandemic highs. This surge has been fueled by increased involvement from capital markets through instruments such as insurance-linked securities, CAT bonds and sidecar arrangements, resulting in significant growth in available capacity. Additionally, higher retentions by policyholders have contributed to lower losses for reinsurers. The increased access to reinsurance capital has enabled direct insurers to offer increased capacity for renewals or new business. High-risk accounts are taking advantage of increased capacity through shared and layered programs from international markets like London and Bermuda. Effectively, insurers have more capital available and are willing to take on portions of larger, more complex risks, making it easier for some insureds to secure coverage. Insurance-to-value (ITV) Considerations ITV calculations are critical, as they help insureds determine the appropriate amount of property coverage by assessing an asset’s actual, market and replacement value. Securing an accurate ITV calculation has been challenging; a property’s value is often affected by factors like inflation and material costs, both of which have been volatile in recent years. An accurate ITV calculation represents as close to an equal ratio as possible between the amount of insurance a business obtains and the estimated value of its commercial building or structure, thus ensuring adequate protection following potential losses. Common approaches to accurately estimating this value include getting a property appraisal from a third party firm, leveraging fixed-asset records that have been adjusted for inflation or relying on a basic benchmarking tool (e.g., dollars per square foot). • Continued interest in alternative risk financing: Alternative risk transfer options can provide more customized solutions and, in some cases, cost savings. There are several options available to risk managers, including captives, parametric coverage and structured fronting. Captives are insurance companies formed by one or more parent companies to insure their own risks rather than relying on third-party insurers. As natural disasters become more severe, parametric coverage has risen in popularity. Under such coverage, the amount a policyholder is compensated isn’t decided by the exact cost of damages sustained but by the calculated intensity of the covered event itself. Structured fronting is an insurance solution that allows insureds to manage their own risk. In these arrangements, policies are written by an insurer, but most or all the risk is passed on to the insured or another third party (e.g., a captive or reinsurer).

Being the subject of a roadside inspection or FMCSA investigation can be overwhelming, especially if your business involves hauling hazardous materials. Our latest webinar examined how hazardous material roadside inspections are conducted and how to improve hazardous material shipping and transportation safety. Our experts outlined the key regulations associated with common violations that can lead to an investigation, and best practices for preparedness and compliance to ensure the safe and successful transportation of hazardous materials. Key Takeaways Having general knowledge of the Hazmat Regulations is essential before accepting any hazmat load. Roadside inspections play a key role in safely transporting hazardous materials. Common violations that focus on hazmat, such as failing to have the required insurance limits, proper registrations, non-compliant shipping papers, securement, and proper labeling of loads, can lead to serious consequences. It's critical to adhere to these regulations to prevent potential hazards.   Many violations and hazardous materials incidents can be prevented by properly training all hazmat employees to recognize their role. Each employee plays a vital part in preventing violations while transporting hazardous materials.   Further education, which should include emergency response information and accident prevention methods and procedures, is a crucial step in preventing accidents. It's important to continuously update your knowledge in this field. Click here to view the presentation.

How J.J. Keller Reduced Pharmacy Spend by 22% The Situation As a certified Great Place to Work®, J. J. Keller & Associates, Inc. is committed to providing high-quality, affordable healthcare for their 1,800 associates and their families. In an effort to reduce associates’ need to shoulder an increasing healthcare burden as prices increase, their approach has been to find win-win solutions whereby they employ smart healthcare consumerism as a company so their associates and their families receive the medical care they need Key Wins Why They Needed Change Despite partnering with a major health insurance provider, J. J. Keller's self-insured health plan faced mounting challenges: 14% year-over-year increase in pharmacy costs Unfulfilled promises of 20%+ cost reductions through discounts and rebates 2,700 covered members affected by rising costs Lack of transparency in vendor relationships and pricing structures Misaligned incentives with existing PBM relationship "This change was so impactful that we were able to give associates a 'premium holiday' in December to share in the savings during a costly time of year. We and our associates also have a renewed sense of faith in our ability to actually manage healthcare costs with the addition of new strategies going into 2025." Amy Jansen | J. J. Keller & Associates, Inc. The Cottingham & Butler Approach Strategic Assessment J. J. Keller engaged an external pharmacy consultant to: Evaluate existing program effectiveness Identify conflicts of interest in current partnerships Move focus away from superficial "discounts" on inflated prices PBM Transformation The company transitioned to a new pharmacy benefit manager with: Zero markup on dispensed medications No retained rebates Clinical focus on cost-effective alternatives Pass-through pricing model Independent, privately-held structure Employee Empowerment Implemented new support tools including: Direct pharmacist consultations for medication alternatives User-friendly prescription price comparison platform Automated copay assistance enrollment By focusing on transparency and alignment in their vendor partnerships, J. J. Keller transformed their pharmacy benefits program, achieving substantial cost savings while enhancing the employee healthcare experience.