Compliance News & Updates: February 4 , 2025 Issue

In our recent In Compliance Newsletter, we feature articles highlighting recent legislative changes and regulatory guidance for employer-sponsored benefit plans. Stay up-to-date on the always changing state of employee benefits compliance. Sign up for our Bi-Weekly In-Compliance Newsletter.

2025 Federal Poverty Levels Impact Employer Liability under Pay or Play Rules

The U.S. Department of Health and Human Services (HHS) updates federal poverty levels (FPLs) each year to determine eligibility for certain programs and benefits. HHS’ new guidelines set the 2025 FPL for an individual at $15,650 (up from $15,060 in 2024) in the 48 contiguous states and the District of Columbia. For Alaska and Hawaii, FPLs for an individual are $19,550 and $17,990, respectively (up from $18,810 and $17,310 in 2024). Read more>>

CMS Preserves Creditable Coverage Simplified Determination for 2025, Proposes Revised Method for 2026

In April 2024, the Centers for Medicare and Medicaid Services (CMS) issued Final Part D Redesign Program Instructions for calendar year 2025. On Jan. 10, 2025, CMS released Draft Part D Redesign Program Instructions for calendar year 2026. Both sets of instructions contain a detailed description of, and guidance related to, changes to the Part D benefit made by the Inflation Reduction Act of 2022 (IRA). Among other things, these changes impact the creditable coverage status of employer-sponsored prescription drug coverage. ​​​​​Read more >>

DOL Releases Audit Results of ERISA Enforcement During 2024

The U.S. Department of Labor (DOL) has released the results of its Employee Benefits Security Administration’s (EBSA) enforcement actions during fiscal year (FY) 2024. Read more >>

ERISA Fiduciary Breach Claims Dismissed in J&J Lawsuit

On Jan. 24, 2025, a U.S. District Court for the District of New Jersey dismissed two claims in a class-action lawsuit filed against Johnson & Johnson (J&J), which alleged that the company breached its fiduciary duties under the Employee Retirement Income Security Act (ERISA) by mismanaging its prescription drug benefits plan, costing the plan and its participants millions of dollars due to higher out-of-pocket costs for prescription drugs and higher premiums, among other things. Read more >>

IRS Issues Revenue Ruling on Tax Treatment of State PFML Programs

The IRS has issued Revenue Ruling 2025-4, providing 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. Read more>>

Medicare Part D Disclosures due by March 1, 2025 for Calendar Year Plans

Group health plan sponsors are required to complete an online disclosure form with the Centers for Medicare & Medicaid Services (CMS) on an annual basis and at other select times, indicating whether the plan’s prescription drug coverage is creditable or non-creditable. This disclosure requirement applies when an employer-sponsored group health plan provides prescription drug coverage to individuals who are eligible for coverage under Medicare Part D. Read more>>

Mental Health Parity Continues to Be a Top Enforcement Priority

The Employee Benefits Security Administration (EBSA) recently released its annual enforcement report on the Mental Health Parity and Addiction Equity Act (MHPAEA). EBSA is an agency within the U.S. Department of Labor (DOL). According to EBSA, MHPAEA compliance remains one of its top enforcement priorities. Read more>>

​​Top Health Plan Compliance Issues for 2025

Employers should be aware of the top compliance issues that may impact their health plan coverage for 2025. Some of these compliance issues are established requirements for employers, such as the new simplified reporting under the Affordable Care Act (ACA). Other compliance issues are anticipated developments employers should monitor, such as additional health care transparency requirements. It is uncertain what impact Republican control of Congress and the White House may have on health plan compliance issues, although there will likely be a shift in priorities related to health care policies. Read more>>

Trump Revokes Biden Executive Order Preventing Gender Identity and Sexual Orientation Discrimination

On Jan. 20, 2025, President Donald Trump issued an executive order (EO) to revoke EO 13988, signed by former President Joe Biden on Jan. 20, 2021. EO 13988 aimed to prevent and combat discrimination on the basis of an individual’s gender identity or sexual orientation, including in the workplace. Read more>>

Benefits and HR State Updates

California DIR Issues FAQs on Employment Laws and Wildfire

The California Department of Industrial Relations (DIR) has issued guidance for employers on the ongoing Los Angeles-area wildfires and laws enforced by the state labor commissioner. The guidance is in the form of answers to frequently asked questions (FAQs). Read more>>

Illinois Eliminates Subminimum Wages for Disabled Employees

On Jan. 21, 2025, Illinois enacted the Dignity in Pay Act (the Act), which phases out subminimum wage authorizations permitted under Section 14(c) of the Fair Labor Standards Act (FLSA) until they are completely eliminated in the state by Dec. 31, 2029. The Act took effect on Jan. 21, 2025. Read more>>

Massachusetts Issues FAQs for Upcoming Pay Transparency Law

The Massachusetts Executive Office of Labor and Workforce Development (LWD) recently published frequently asked questions (FAQs) regarding the state’s pay transparency law. The FAQs clarify certain pay data reporting requirements that take effect Feb. 1, 2025, but do not impose additional requirements. Read more>>

Ohio Enacts Wage Statement Law

On Jan. 8, 2025, Ohio enacted the Pay Stub Protection Act (the Act) requiring employers to provide earning and deduction statements to each employee. The Act becomes effective on April 9, 2025. Read more>>

The insurance industry is undergoing a significant transformation as it adapts to emerging trends driven by climate change and technological innovation. Two key developments are reshaping the landscape: the rising impact of climate-related risks on insurance costs and the shift toward proactive risk management.

Climate Impact on Your Insurance Costs

Climate change is no longer a distant concern but a present reality with far-reaching implications. Homeowners in disaster-prone areas feel financial strain as insurance premiums soar due to heightened climate risks. This trend is particularly pronounced in Western and Eastern states, where wildfires, hurricanes, and flooding are becoming more frequent and severe.

Insurance carriers are reevaluating their pricing models to account for these risks. For instance:

• Increased Premiums: Homes in high-risk areas are experiencing steep rate hikes, with some homeowners facing double or even triple their previous premiums.
• Coverage Limitations: Insurers impose stricter policy terms, reducing coverage for specific climate-related damages.
• Market Withdrawals: In extreme cases, some insurers are withdrawing from high-risk markets altogether, leaving homeowners with limited coverage options.

These changes underscore the importance for consumers understanding their risk profile and exploring preventative strategies, such as retrofitting homes to withstand disasters or investing in renewable energy solutions that may qualify for premium discounts.

Proactive Risk Management: Your Partner In Insurance

Another transformative trend that Relation Insurance is embracing, is the pivot towards proactive risk management. Instead of merely reacting to claims, we are working with carriers who are leveraging advanced technologies to predict and prevent risks. This proactive approach not only reduces losses but also helps our team fosters stronger customer service for our clients.

Here’s how proactive risk management is taking shape:

• Predictive Analytics: Carriers use data analytics and artificial intelligence to identify patterns and predict potential risks. For example, AI-powered models can forecast weather-related events, allowing our team of experts to advise policyholders on precautionary measures.
• IoT Integration: The Internet of Things (IoT) plays a crucial role. Smart home devices, such as water leak detectors and fire alarms, enable real-time monitoring and alerts, helping policyholders prevent damages before they occur.
• Customized Solutions: Proactive engagement allows our team of experts to offer tailored solutions. For instance, a customer living in a flood-prone area might receive specific guidance on how to minimize risk.

For policyholders, this shift means more than just financial protection. It’s about peace of mind and the assurance that we are a partner in safeguarding their assets and well-being.

Navigating These Trends as a Policyholder

As these trends evolve, clients should stay informed and take a proactive approach to their insurance needs. Here are some actionable tips:

1. Assess Your Coverage: Regularly review your policy to ensure it reflects current risks and offers adequate protection.
2. Invest in Risk Mitigation: Explore ways to reduce your risk profile, such as upgrading your home’s resilience to natural disasters.
3. Leverage Technology: Consider installing IoT devices that provide early warnings and reduce the likelihood of damage.
4. Engage with Your Insurer: Open communication with your insurance provider can help you understand available resources and proactive measures.

The Road Ahead

The insurance industry’s response to climate change and technological advancements signals a new era of innovation and customer-centricity. At Relation, we are excited to provide opportunities to collaborate with our clients to build a more resilient future. By staying informed and embracing these trends, our clients can better navigate the evolving landscape and secure the protection they need in an uncertain world.

Partner with Relation Insurance

Interested in working with team of insurance experts who specialize in Proactive Risk Management? With Relation Insurance —you’ve got a local partner right around the corner with buying power all over the country. That’s because we’re backed by a national network with deep, specialized expertise and long-standing relationships with a vast network of carriers. It means you get more choices, and more ways to find the perfect fit for the protection you need. Whether for personal or business, let us change the way you think about insurance.

In the heart of the Midwest, a trucking company with a 40-year legacy, 35 employees, and $60 million in annual revenue faced a critical challenge. The company’s owner identified two mission-critical employees, both in their 40s, as instrumental to the business’s growth and stability over the next decade.

Relation Insurance’s Executive Benefits Team was proud to step in as a trusted partner, crafting a bespoke solution that delivered on the owner’s goals:

1. Retain these key employees
2. Deliver immediate tax benefits
3. Provide an enhanced retirement package that would reflect their value to the company.

Understanding the Challenge

The trucking industry is known for its high turnover and competitive landscape, making employee retention an ongoing challenge. The company’s owner recognized that retaining these two key employees was vital for sustained growth and operational success. However, it wasn’t just about keeping them onboard; it was about providing a retirement solution that aligned their personal financial goals with the company’s strategic vision. The ideal plan would need to:

1. Ensure a 10-year commitment from these employees.
2. Offer immediate tax advantages to the business.
3. Enhance the employees’ retirement benefits, reducing long-term tax liabilities and securing their financial future.

Our Customized Solution

The experts at Relation Insurance understood that a one-size-fits-all approach wouldn’t suffice. Here’s how we crafted a tailored strategy to address the company’s needs:

1. Future-Focused Funding: Our team proposed a financial plan to fund the net present value of the owner’s desired retirement amount. This approach ensured the funds would grow over time, aligning with the company’s long-term goals.
2. Strategic Vesting Schedule: We implemented a vesting schedule tied to a 10-year commitment. This ensured that the key employees had a strong incentive to remain with the company while aligning their loyalty with the business’s growth trajectory.
3. Employee-Owned Asset: The plan provided the employees with a valuable retirement asset. Not only does this reduce their future tax liability, but it also offers financial security for their families through capital benefits if an employee passes away before retirement.
4. Tax Efficiency: The company received an immediate tax deduction for the compensation, while limiting employees’ access to cash until the vesting schedule was complete.
5. Simplicity and Scalability: The solution was designed to require minimal ongoing maintenance, freeing up the company’s resources for other strategic initiatives.

The Results

The trucking company quickly began to see the benefits our team’s proposed solution:

• Cost Savings: By leveraging a financial vehicle with growth potential, the company reduced its overall outlay while ensuring significant retirement benefits for its key employees.
• Tax Advantages: The company reaped immediate tax deductions, optimizing its financial strategy and freeing up capital for other investments.
• Enhanced Retention: The vesting schedule effectively secured a decade-long commitment from two indispensable team members, ensuring operational stability.
• Recruitment Tool: The success of the program inspired the company to use this enhanced benefits package as a recruitment strategy. In fact, they are actively using it to attract top talent from competitors.

Your Partner in Retaining Key Employees

At Relation Insurance, we believe that Relationships matter. That’s why we take the time to understand the unique challenges and goals of each client, crafting bespoke solutions that drive results. For this Midwest trucking company, our expertise in Executive Benefits not only secured their future but also reinforced their competitive edge in a challenging market.

If you’re looking to create a benefits package that reflects your company values and employees’, while advancing your business goals, we’re here to help. Let us be your partner in building solutions that work today and for years to come.

Find a Location today to explore how Relation Insurance can help your business succeed.

As a vineyard owner, safeguarding your crops against unforeseen events is crucial. The Federal Crop Insurance deadline is fast approaching on January 31, with coverage commencing on February 1. This insurance is essential for protecting your vineyard from potential losses due to natural disasters, pests, or diseases.

What’s new in Crop Insurance for 2025:

• Enhanced Coverage Option (ECO): County-based coverage option allowing you to insure up to 95% of your crop value using county-based losses.
• Fire Insurance Protection – Smoke Index (FIP-SI) – County-based smoke exposure coverage option allowing you to add additional smoke coverage to your underlying policy using county-based NOAA air quality data to determine a loss.

Want to learn more about the Federal Crop Insurance Program? Check out the recorded webinar hosted Agribusiness Risk Expert, Kristine Fox in partnership with CAWG, that covers the ins and outs of crop insurance, featured on Wine Business. 

Comprehensive Agribusiness Insurance Solutions

Relation Insurance Services has been a trusted partner in the agribusiness sector for over 75 years, offering tailored insurance solutions to meet the unique needs of agricultural businesses. Their expertise spans various areas, including:

• Crop Insurance: Protects your crops from losses due to natural disasters.
• Workers’ Compensation: Ensures your employees are covered in case of work-related injuries.
• General Liability Packages: Offers protection against potential legal claims.
• Life and Health Benefits: Provides comprehensive benefits for you and your employees.
• Loss Control Services: Helps in identifying and mitigating potential risks.
• Farm Labor Contractor (FLC) Licensing Assistance: Assists in navigating the complexities of FLC licensing.
• Claims Management Assistance: Supports you through the claims process to ensure timely resolutions.
• Compliance Training: Keeps your business up-to-date with the latest regulatory requirements.

By partnering with Relation Insurance Services, you can ensure your vineyard is well-protected, allowing you to focus on producing quality wine.

Success Stories in Agribusiness Insurance

Relation has a proven track record of assisting Agribusiness clients in managing risks effectively. For instance, our team a helped a California-based grower-shipper launch a new company by designing a health insurance program that closely mirrored his existing coverage. We also facilitated a client’s entry into a group captive insurance company for workers’ compensation, resulting in significant cost savings.

Act Now to Secure Your Vineyard’s Future

With the January 31 deadline looming, it’s imperative to review your crop insurance options promptly. Partnering with experienced providers like Relation Insurance Services can offer you peace of mind, knowing that your vineyard is protected against potential risks. Don’t miss this opportunity to safeguard your investment and ensure the longevity of your vineyard.

For more information on Agribusiness Insurance Solutions, connect with one of our US Locations today.

Winter storms and cold snaps bring a unique set of challenges for homeowners and business owners alike. By preparing ahead of time, you can safeguard your property, loved ones, and customers from the harsh realities of severe weather. Below we walk through some essential steps to help you stay protected when the temperatures plummet.

Prevent Freezing Pipes and Water Damage

Frozen pipes can lead to costly damage, but a little preparation goes a long way:

• Insulate pipes: Pay special attention to pipes in attics, basements, and along exterior walls. Seal cracks and gaps with insulation or caulking.
• Monitor heating fuel levels: Before the cold sets in, check your fuel levels and schedule a refill if necessary.
• Locate your water shut-off: In the event of a burst pipe, shutting off the water promptly can prevent extensive damage. Know where your shut-off valve is located.
• Service sprinkler systems: Ensure your sprinkler system is serviced and consult with a professional about freeze prevention.
• Encourage warm airflow: Open indoor cabinets to allow warm air to circulate around pipes.
• Allow faucets to drip: Running water is less likely to freeze, so let faucets trickle during extreme cold.
• Set your thermostat: Maintain a minimum indoor temperature of 60 degrees Fahrenheit.
• Thaw pipes safely: If pipes freeze, use a hair dryer, space heater, or another safe method—never an open flame—to thaw them.
• Business precautions: Regularly monitor your building’s heating systems to catch problems early.

Manage Snow Loads and Ice Dams

Heavy snow and ice can damage roofs and lead to water backups. Take these steps to minimize risk:

• Clear snow responsibly: Use a roof rake to remove snow from the bottom four feet of your roof and around chimneys and valleys.
• Identify hazards: Before removing snow, locate skylights, vents, and other obstacles to avoid accidents.
• Practice ladder safety: Position your ladder on stable, ice-free ground and ensure it’s securely set.
• Use a safety harness: For steep roofs, consider hiring a professional. If you’re tackling the task yourself, wear a safety harness to reduce fall risks.

General Severe Cold Weather Preparation

Being ready for extreme weather ensures the safety of your household or business. Here’s how:

• Stock emergency essentials: Keep blankets, batteries, portable phone chargers, flashlights, drinking water, and non-perishable food on hand.
• Check detectors: Test smoke and carbon monoxide detectors to confirm they’re functioning properly.
• Plan for power outages: Seal drafts and keep exterior doors and windows closed to retain heat.
• Limit travel: If travel is unavoidable, carry a winter emergency kit with warm clothing and supplies.
• Protect children and pets: Keep everyone inside as much as possible. Pets should only go out briefly.
• Avoid unsafe heating methods: Never use gas ovens, grills, or other open-flame appliances indoors for heat, as they produce toxic fumes.

Why Preparation Matters

Taking proactive steps before winter’s worst hits isn’t just about avoiding inconvenience; it’s about protecting your home, your business, and the people who rely on you. Whether it’s insulating pipes, clearing snow, or stocking emergency supplies, every action adds a layer of security.

At Relation Insurance, we understand that life doesn’t pause for a snowstorm. That’s why we’re here to help you plan ahead, so you can focus on what matters most—your family, your business, and your peace of mind.

Find an Insurance location near you and talk to one of our experts. Your partner in protection. For Life’s Unpredictable moments. 

Your Home Office: A Space Worth Protecting

These days, your home office isn’t just where you work—it’s where creativity happens, goals are crushed, and dreams come to life. That’s why taking care of it matters! As we mark Home Office Safety and Security Week, let’s chat about simple but important ways to keep your workspace safe from fire, theft, and cybersecurity risks while also making sure your valuable equipment is properly covered.

Why Your Home Office Deserves Extra TLC

Working from home has its perks—hello, comfy socks and coffee refills—but it also means your home office faces unique risks. Think about it: your space likely holds pricey tech, sensitive info, and important papers. A little planning now can help protect all that from unexpected mishaps like fires or online threats.

Easy Ways to Keep Your Home Office Safe

🛡️ Prevent Fire Hazards

• Check Your Cords: Make sure wires and equipment aren’t frayed or overloaded.
• Use Surge Protectors: These little lifesavers shield your gadgets from power spikes.
• Keep a Fire Extinguisher Nearby: Know where it is and how to use it (just in case).
• Don’t Overheat Devices: Avoid leaving laptops or chargers running unattended for too long.

🔒 Guard Against Theft

• Secure the Space: Add locks to nearby windows and doors for extra peace of mind.
• Use a Safe for Valuables: Perfect for stashing important docs or gadgets when you’re away.
• Consider a Security System: Cameras or alarms can help protect your space.

💻 Step Up Your Cybersecurity Game

• Create Strong Passwords: Think unique and complex for all your devices and accounts.
• Enable Two-Factor Authentication: It’s an extra layer of defense for sensitive info.
• Keep Software Updated: Regular updates for systems and antivirus programs go a long way.
• Secure Your Wi-Fi: Use a strong password or even a VPN for added safety.

Protect What You’ve Built

No matter how prepared we are, surprises happen. That’s why it’s a smart move to make sure your home insurance covers your office equipment. Policies can help safeguard:

• Computers, printers, and electronics
• Furniture and office supplies
• Data recovery services if you ever face a breach

Let’s Make Your Space Safer This Week

Home Office Safety and Security Week is the perfect time to give your workspace a little extra love. With these tips and the right protection in place, you can stay focused on what matters most—doing amazing work in a space that feels safe, secure, and totally you.

Visit our Relation Locations page to find a local risk advisor to help you review your policy. Or Contact Us to have a risk advisor contact you to help identify any gaps in coverage. After all, a well-protected office isn’t just practical—it’s peace of mind. 💻✨

“It has always been our mission to be more than insurance broker, but rather a partner, teammate and friend in the business. We are honored to be recognized for this level of service that goes beyond creating long term solutions that address our client’s unique challenges.” – Keri Lopez

Matthew LoPorto will also share his insights on the compliance essentials for a successful Wellness Program. As well as crucial regulatory updates that will impact your health plans as we prepare for the open enrollment for the 2025 Plan Year.

Relation will be hosting the webinar WELLNESS IN THE WORKPLACE! HOW TO CREATE AN EFFECTIVE AND COMPLIANT WELLNESS PROGRAM on:

TUESDAY, SEPTEMBER 17, 2024
2:00 – 3:00 PM EST 

To make sure you’re on top of your employee benefits game and in sync with compliance, don’t miss out – save your seat today!

Have questions?  Please feel free to submit them in advance to [email protected] or questions may be asked during the webinar.

After you register, you will receive a confidential email containing information about joining the meeting.

P.S. Cannot attend? Register to receive a copy of the webinar recording.

About The Speakers