Building Surety Capacity as a Contractor: A Strategic Guide

| December 19, 2024
Empire State Building in New York at Sunset

Surety capacity is a critical component of success for contractors seeking to secure larger projects and compete effectively in the construction industry.

By Chris Mason

Surety bonds are often required for public and private projects, serving as a guarantee that contractors will fulfill their obligations. Building your surety capacity involves strengthening financial, operational, and relational factors to increase your bonding limits and instill confidence in surety providers.

OneGroup can play a pivotal role in helping a company build surety capacity. As a trusted advisor, OneGroup bridges the gap between contractors and surety providers, ensuring the contractor is well-positioned to meet bonding requirements and increase their capacity over time. OneGroup can help:

Assessing Financial and Operational Readiness

OneGroup conducts an in-depth analysis of the contractor’s financial and operational health to identify strengths and areas for improvement. This includes:

  • Reviewing financial statements: Ensuring the contractor’s financial records are accurate, detailed, and aligned with surety industry standards.
  • Analyzing project history: OneGroup evaluates the contractor’s past performance to highlight successes and identify patterns or risks that could impact bonding.
  • Advising on creditworthiness: OneGroup provides guidance on maintaining a strong credit profile, as this is critical to gaining the trust of surety underwriters.
Connecting with the Right Surety Partner

Matching the contractor with the right surety provider is essential for building capacity. OneGroup leverages our network and expertise to:

  • Find a suitable surety company: Different surety providers specialize in various industries and project sizes. We can identify those best aligned with the contractor’s goals and capabilities.
  • Negotiate terms: OneGroup will advocate for favorable terms and bonding limits, ensuring the contractor has the flexibility to pursue growth opportunities.
  • Streamline the application process: By preparing the necessary documentation and presenting the contractor’s case effectively, OneGroup will expedite approval processes.
Providing Strategic Guidance

OneGroup offers actionable advice to help contractors align their operations with surety requirements, including:

  • Improving financial strength: Recommending strategies like increasing liquidity, reducing debt, or reinvesting profits to enhance net worth and working capital.
  • Optimizing project selection: OneGroup guides contractors to choose projects that align with their expertise and financial capacity, which reduces risk and builds trust with sureties.
  • Implementing risk management practices: OneGroup can help contractors establish policies and procedures to manage risks related to safety, compliance, and project execution.
Facilitating Communication and Transparency

Clear and consistent communication with the surety provider is vital. OneGroup helps contractors:

  • Maintain regular updates: We ensure the surety is kept informed about changes in the contractor’s financial position, operations, or strategic direction.
  • Address concerns proactively: When challenges arise, OneGroup will present solutions to minimize disruptions and maintain trust.
  • Provide market insights: OneGroup shares trends and benchmarks, helping contractors understand what underwriters look for and how to adapt.
Supporting Long-Term Growth

Building surety capacity is a gradual process, and OneGroup can help contractors develop a roadmap for sustained growth:

  • Monitoring performance: We track bonding limits, claims history, and financial metrics to measure progress and identify areas for improvement.
  • Advising on diversification: OneGroup suggests ways to expand into new markets or project types while maintaining financial and operational stability.
  • Fostering relationships: OneGroup nurtures long-term partnerships between contractors and sureties, which is key to increasing bonding capacity over time.
In Summary

A skilled broker acts as a partner, advisor, and advocate, guiding contractors through the complexities of building surety capacity. By addressing financial, operational, and strategic aspects, OneGroup helps contractors secure higher bonding limits, pursue larger projects, and achieve long-term success in their industry.

For more information, reach out to our Surety Team Here.

This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.

Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.

Legal Alert: IRS Releases PCORI Fee for Plan Years Ending Before October 1, 2025

| December 17, 2024
US Capitol Building - IRS Adjustments

The IRS has released Notice 2024-83, which sets the applicable PCORI fee for plan years ending between October 1, 2024 and September 30, 2025 at $3.47 per covered life.

The PCORI fee helps fund the Patient-Centered Outcomes Research Trust, which was established as part of the Affordable Care Act (ACA) to conduct research to evaluate the effectiveness of medical treatments, procedures and strategies that treat, manage, diagnose or prevent illness or injury. Under the ACA, most employer sponsors and insurers were required to pay PCORI fees until 2019 or 2020, as it only applied to plan years ending on or before September 30, 2019. However, the PCORI fee was extended to plan years ending on or before September 30, 2029 as part of the Further Consolidated Appropriations Act, 2020.

The amount of PCORI fees due by employer sponsors and insurers is based upon the number of covered lives under each “applicable self-insured health plan” and “specified health insurance policy” (as defined by regulations) and the plan or policy year end date. The fee must be paid on or before July 31st each year. The fees due by July 31, 2025 are for plan years ending in 2024 and are as follows:

  • For plan years ending between January 1, 2024 and September 30, 2024, the fee is $3.22 per covered life.
  • For plan years ending between October 1, 2024 and December 31, 2024, the fee is $3.47 per covered life.

Insurance carriers are responsible for calculating and paying the PCORI fee for fully insured plans. The employer is responsible for paying the fee on behalf of a self-insured plan, including an HRA.  In general, health FSAs are not subject to the PCORI fee.

Employers that sponsor self-insured group health plans must report and pay PCORI fees using the second quarter IRS Form 720, Quarterly Federal Excise Tax Return. The second quarter form is generally not released by the IRS until the second quarter of the applicable filing year (usually in or around May of the applicable filing year). Therefore, the Form 720 used for the 2024 filing deadline will not likely be available until around May 2025, and employers who sponsor self-insured group health plans subject to the PCORI fee must wait to file until the correct Form 720 is available. 

The average number of covered lives for the plan year is generally calculated using the snapshot, snapshot factor, actual count, or Form 5500 method. These counting methods will be described in more detail in a future alert as we approach the 2025 filing deadline. 

Also note that because the PCORI fee is assessed on the plan sponsor of a self-insured plan, it generally should not be included in the premium equivalent rate that is developed for self-insured plans if the plan includes employee contributions.  However, an employer’s payment of PCORI fees is tax deductible as an ordinary and necessary business expense.

Next Steps for Employers

There is no action that is required by employers at this time as the applicable Form 720 will not be available until late Spring 2025.  In the meantime, if an employer believes they may have failed to file PCORI fees for one or more plan years prior to the plan year ending in 2024, they would need to file the Form 720 for the 2nd quarter of the applicable filing year that applies to the plan year missed. For example, if they missed filing their PCORI fees for the plan year ending in 2023 plan year, they would use the 2nd quarter Form 720 for 2024. Historical forms can be located on the IRS website. We recommend consulting with counsel to discuss the historical filing process.

More Information

For additional information, contact our Employee Benefits team.

This alert was prepared for OneGroup by Barrow Weatherhead Lent LLP, a national law firm with recognized experts on the Affordable Care Act. Contact Stacy Barrow or Nicole Quinn-Gato at sbarrow@marbarlaw.com or nquinngato@marbarlaw.com.

The information provided in this alert is not, is not intended to be, and shall not be construed to be, either the provision of legal advice or an offer to provide legal services, nor does it necessarily reflect the opinions of the agency, our lawyers, or our clients. This is not legal advice. No client-lawyer relationship between you and our lawyers is or may be created by your use of this information. Rather, the content is intended as a general overview of the subject matter covered. This agency and Barrow Weatherhead Lent LLP are not obligated to provide updates on the information presented herein. Those reading this alert are encouraged to seek direct counsel on legal questions.

© 2024 Barrow Weatherhead Lent LLP. All Rights Reserved.

Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.

Safe Snow and Ice Removal

| December 17, 2024
Red blurry snow shovel

Proactive Measures to Ensure Safety

In the Northeast, and New York specifically, the onset of winter weather means an increase in workers’ compensation claims, particularly those related to slips, trips, and falls. These incidents account for about 25% of total workplace injuries, according to the National Safety Council. For public sector organizations, such as municipal services and public works, preventing these claims is crucial to maintaining safety and reducing liability.

Key Strategies to Prevent Slip and Fall Claims

Maintain a Salt Log and Shovel Schedule

Detailed record-keeping of when and where salt is applied and snow is shoveled can be crucial in demonstrating proactive measures to prevent slips and falls. Establishing a schedule for regular snow removal helps prevent accumulation, reducing the risk of ice forming and minimizing slip hazards.

Safe Snow and Ice Removal Techniques

Consider engaging a professional snow removal company to ensure that parking lots, sidewalks, stairs, and walkways are cleared promptly and effectively. Using environmentally friendly and efficient ice-melting products keeps surfaces safe.

Implement Safety Campaigns

Implementing safety campaigns is also vital. Placing highly visible caution and warning signs in areas prone to ice and snow accumulation, both indoors and outdoors, can alert people to potential hazards. Developing and communicating a winter safety awareness campaign that outlines procedures and plans for snow and ice removal can further enhance safety.

Regular Inspections and Maintenance

Regular inspections and maintenance are necessary to identify and address potential hazards promptly. Conducting routine checks of all outdoor areas and ensuring all snow removal equipment is in good working condition and ready for use are key steps.

Benefits of Proactive Measures
  1. Reduced Liability: By maintaining detailed records and demonstrating proactive measures, organizations can reduce their liability in the event of a slip and fall claim.
  2. Improved Safety: Regular snow and ice removal, combined with effective de-icing techniques, significantly improves safety for employees and the public.
  3. Cost Savings: Preventing injuries can lead to lower workers’ compensation claims, reduced insurance costs, and fewer employee absences.

By focusing on these strategies, public sector organizations can effectively prevent slip and fall claims, ensuring a safer environment for everyone. If you have any questions or need further assistance, please feel free to reach out.

Contact Us

To learn more about addressing unique public sector risks, contact our OneGroup team.

Matt Maguire, Regional President, North Country at MMaguire@OneGroup.com.

Todd Goodman, Risk Management Consultant at TGoodman@OneGroup.com.

This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.

Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.

How To Effectively Manage Workers’ Compensation Claims

| December 11, 2024
A worker is injured at a construction site and his coworker is calling for help.

Effective management of workers’ compensation claims involves prompt investigation, thorough documentation, timely reporting, and active management.

By Michelle Namisniak, Tom Sayre, & Brett Findlay

Managing workers’ compensation claims can be daunting. There are some key items to be aware of in order to effectively work through this process. With the state’s revision to the rating formula for the Experience Modification Rate (EMR) in 2022 and evolving trends in the claims world, workers’ compensation claims are having a significant impact on businesses. Variables like this make it even more important to pay attention in the unfortunate event of a claim. This article outlines the essential steps employers should take following a workplace accident to ensure the best possible outcome for their business.

Immediate Response to an Accident

When an accident occurs, the first step is to investigate the claim thoroughly. This involves gathering detailed information about the incident, including the who, what, where, when, and how. It’s crucial to ask as many questions as possible early on to capture accurate details before memories fade or stories change.

Key steps include:

  • Interviewing the injured employee: Ask specific questions about what happened, how it happened, and where it happened.
  • Examining the accident site: Verify any claims about broken equipment or hazardous conditions.
  • Identifying witnesses: Speak to coworkers immediately to get their accounts before they have a chance to discuss the incident among themselves.
Documentation

Proper documentation is vital in managing workers’ compensation claims. Employers should use incident reports to record all relevant details. If an incident report is not immediately available, have the employee write a statement or write it for them and have them sign it. This creates a paper trail that can be crucial if the claim is later disputed.

Important documentation practices include:

  • Detailed incident reports: Ensure they cover the who, what, where, when, and why. The injured employee needs to sign and date the document.
  • Specific injury details: Clearly document the body part or parts injured to minimize the potential for the claim to evolve and include other sites.
  • Witness statements: Collect and have witnesses sign their statements immediately. Try to secure a phone number, home, and email addresses for the witness.
Reporting Process

Employers must document and maintain a record of any injury or illness for 18 years. The injury or illness must be reported to the insurance carrier (and the Board) within 10 days of the disability or employer knowledge of disability—defined as lost time or restricted duty—if there is more than one day of lost time beyond the shift when the injury occurred or if medical treatment extends beyond first aid.

Steps in the reporting process:

  • Timely reporting: Ensure the claim is reported to the insurance carrier within the mandated timeframe to avoid penalties, and to provide time for the carrier to investigate the loss. Reference New York form C-2F (Employer’s First Report of Work-Related Injury/Illness) for information the carrier will need. Contact your broker if you are uncertain how to report a loss.
  • Share your concerns: If you question a loss or there are details which seem important which are not addressed in reporting, let the carrier know you would like to be contacted to discuss further. When the carrier contacts you, it is appropriate to share your concerns with them.
  • Let the employee know you have reported the loss. If a claim number is provided by the carrier, share that with the employee. Medical providers will request this information at the time of treatment.
  • Involve risk management: Reporting losses helps identify and address potentially hazardous situations and avoid future incidents.
  • Electronic Data Interchange (EDI): Understand that state-mandated EDI reporting requires timely and accurate submission to avoid penalties.
Components of a Claim

A workers’ compensation claim typically includes several components:

  • Indemnity: Payments for lost time, which can be a temporary closed period of lost time or a schedule loss of use (SLU) award or Loss of Wage-Earning Capacity (LWEC) award for permanent injuries.
  • Medical expenses: These are lifetime expenses and can increase annually due to rising average weekly wages and fee schedules.
Active Management of Claims

Active management of claims is crucial for minimizing costs and ensuring a positive outcome. Employers should:

  • Provide prompt medical attention: This helps the injured employee recover quicker and return to work, even in a limited role, which can reduce the overall cost of the claim.
  • Engage in proactive communication: Keeping open lines of communication with the injured employee can foster a sense of loyalty and reduce the likelihood of litigation. Set the expectation that employees inform you and provide documentation of their medical examination dates and status after each appointment. Failure to do so may jeopardize their workers’ compensation benefits and perhaps their employment status. Share the medical status information with your carrier.
  • Inform your carrier when an employee’s work status changes (out of work, returns in a transitional duty capacity, returns full duty, etc…)
  • Update your carrier with any relevant developments you become aware of, i.e., employee is unable to work but is still participating in outside activities, etc. Don’t assume the carrier shares your knowledge.
  • Complete the forms! Yes, there are many. Yes, they are cumbersome. However, if they are not completed fully and accurately, you will be asked to do them again. If you do not, penalties and adverse findings will follow. Do it right and do it once! (If you have questions on how to complete, ask your broker before you submit)
In Summary

Effective management of workers’ compensation claims involves prompt investigation, thorough documentation, timely reporting, and active management. By following these steps, employers can mitigate the impact of claims on their business and ensure compliance with state regulations. Proper handling of claims not only helps in reducing costs but also supports a safer workplace environment.

If you have any questions or need further assistance, please do not hesitate to reach out to OneGroup’s team for guidance and support.

This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.

Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.

Holiday Decorating Hazards

| December 11, 2024
holiday decorations hanging on a christmas tree

Getting ready to deck out your home for the holidays? Learn about 10 common decorating hazards and how to avoid them

1. Christmas tree fires: Set up your Christmas tree far from any heat sources, such as fireplaces, radiators or light fixtures. Make sure all lights are approved for tree use, and turn them off when you leave the house. If you have a real tree, water it frequently and dispose of it before it becomes dry tinder.

2. Fireplace hazards: Keep stockings, greenery and all other decorations clear of fireplaces and wood stoves. 

3. Electrical fires: Overloading electrical outlets with holiday lights and decorations can lead to electrical fires. Use only lights that have been tested for safety and discard any lights with frayed wires, broken sockets or loose connections. Outdoor décor should be specifically rated for outdoor use to protect against weather-related electrical issues.

4. Poisonous plants: Many traditional holiday plants like mistletoe, holly and poinsettias are poisonous if ingested. Keep them away from pets and small children.

5. Choking hazards: Small decorative items, such as tinsel and mini-pom poms, can pose a choking hazard to children and pets.

6. Ladder falls: Each year, many people suffer injuries from falling off ladders while hanging holiday decorations. Make sure you have the right ladder for the job, enlist a spotter, and keep three points of contact on the ladder at all times (such as two feet and one hand).

7. Candle fires: Candles can add a warm atmosphere to your holiday festivities, but they can also cause fires. Never leave them unattended, and keep them away from flammable objects.

8. Hazardous decorative toys: Decorations that double as toys must meet safety standards for children to play with. Pay special attention to small objects that could pose choking hazards and potentially toxic paints/coatings. 

9. Breakable decorations: Keep breakable decorations away from children and pets (and bare feet!). They can cause injuries.

10. Extension cord tripping hazards: Ensure the cords you use for lights and decorations are tucked away or securely taped down to prevent trips and falls. 

Give us a ring

Want to make sure that you have the coverage you need to protect your home? We’ll review your coverage for free, with no obligation. Reach out to our Personal Insurance team.

This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.

Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.

Written content in blog post: Copyright © 2024 Applied Systems, Inc. All rights reserved.

How To Spot and Reverse Employee Disengagement

| December 10, 2024
Steps to Take to Become Truly Inclusive at Work

Turnover remains a looming threat.

An unexpected resignation can throw off an entire team and leave your organization scrambling. The concern is valid: A recent Gallup poll found that more than half of employees keep tabs on new job opportunities.

But what if employee departures aren’t as unexpected as they might seem?

Research indicates disaffected employees often demonstrate their intent to leave through predictable behaviors. The human resources association SHRM reports these behaviors increase the risk of employees leaving in the following 12 months.

Understanding the warning signs can help you identify solutions to increase employee engagement and reduce unexpected turnover.

Signs an employee may be preparing to leave

The following changes indicate an employee may be actively pursuing new jobs.

Their performance drops. The Harvard Business Review notes that reduced performance is one of the top signs an employee may be eyeing an exit. Performance reductions can occur in different ways. Examples include suddenly producing less, turning lower-quality work, missing deadlines, doing the bare minimum, turning down new or long-term projects, and putting their interests ahead of team goals.

They become less engaged. Disengagement may appear as an employee being quieter at meetings, withdrawing from social events and not participating in wellness initiatives. It could also show up as becoming less focused, more secretive, and more paranoid about company leadership and financials.

They show signs of burnout. Exhaustion is another warning. According to the employee communication platform Workvivo, more than 40% of Generation Z employees would take a new job to alleviate burnout. Watch for unusual changes in appearance or demeanor. Burned-out employees seeking a new job may also take more sick days than usual or ask to use all their vacation days within a short time.

They shift their tone. Language may also indicate an employee’s intent to leave, reports Workvivo. Look for increasingly negative talk about job roles, colleagues and clients. The employee may also express frustration with workloads, leadership or company values. Sometimes it’s not what an employee says but what they avoid saying, such as not discussing growth opportunities or long-term career plans with your organization.

They increase networking activities. HR Daily Advisor reports that upticks in networking can signal an employee’s desire to find a new job. Increased activity on professional profile sites like LinkedIn may be a sign. For example, an employee might regularly update their profile, post more frequently or ask others to recommend their skills. Gathering materials to update their work portfolio can be another giveaway. A sudden interest in attending more industry events and professional groups can also signal their intent to move elsewhere.

Strategies to improve engagement and retention

As long as valued employees remain with your organization, these warning signs can be part of the solution. They can highlight employee challenges and guide your retention strategies.

According to the HR software company Homebase, the first step to retaining employees is opening lines of communication. Frequent check-ins can reengage your employees and demonstrate the value you place on their contributions. Open communication can also alleviate frustrations before they lead to resignations.

Schedule regular one-on-one meetings between managers and employees. SHRM promotes stay interviews, meetings to discuss the likes and dislikes of your high-performing employees. The goal of a stay interview is to understand their job satisfaction and what it would take for them to stay with your company.

SHRM also recommends short-term interventions to keep valued employees. Solutions may include more time off, a salary increase or one-time bonus, special projects or a promotion. These options are often less expensive than replacing employees. They also give your organization more time to implement long-term retention strategies such as career pathing, recognition and reward programs, flexible scheduling, and mentorship programs.

Workvivo highlights the importance of employee benefits in retaining your employees. Offering affordable accessible access to health, dental, vision and life insurance is essential to reduce turnover.

The American Society of Employers reports that 78% of employees would look for a new job if their current benefits weren’t good enough.

Benefits offerings that can improve employee engagement and retention include:

  • Accident, critical illness and hospital indemnity insurance
  • Flexible work schedules
  • Gym memberships and online fitness class
  • Mental health resources
  • Paid time off
  • Parental leave
  • Pet insurance and pet-friendly policies
  • Remote work options
  • Sabbaticals
  • Short- and long-term disability coverage
  • Volunteer hours
Explore strategies and solutions

Tailoring your solutions can reverse employee disengagement before it leads to unwanted turnover. Conversations with employees will help you uncover which benefits they most value.

To examine your benefits coverage and options, talk to your insurance broker or benefits adviser. They work with you to identify and communicate benefits solutions that increase employee engagement, satisfaction and retention. If you’re interested in employee benefits, contact our employee benefits team.

Need more information?

For support on this topic contact OneGroup HR Consulting at HR Consulting at hrconsulting@onegroup.com. They can provide best practices on reassignment, including planning, training, communication, and compliance.

This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.

Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.

Written content in blog post: Copyright © 2024 Applied Systems, Inc. All rights reserved.

Hazard Watch: What Is Combustible Dust?

| December 4, 2024
The paper factory

Dust is a nuisance, but did you know that some dust can cause explosions? This is called “combustible dust.”

Combustible dust has caused deaths and injuries, and destroyed entire buildings. Here are a few real-life examples of how dangerous combustible dust can be:

In 2015, 15 concertgoers were killed and 500 were injured at a waterpark dance party in Taiwan. The event released dyed cornstarch into the air to create a colored fog effect. The dust saturated the stage and was ignited by a spark. The surrounding dust-filled air erupted in a flash fire, engulfing everyone in the area. Many of the deaths happened months after the incident due to extreme burn injuries.

In 2010, four workers were killed after a titanium dust explosion at a metal recycling plant in West Virginia. Metal dust created in the recycling process settled inside the plant’s metal blender machines and surrounding air. A blender malfunctioned, creating a spark that ignited the metal dust buildup inside the bin. Flames inside the blender bin traveled up the walls in a flash fire. As the flash fire burned, metal dust floating in the air ignited, causing the recycling plant to explode.

In 2008, 14 workers were killed and 38 were injured in a sugar dust explosion in Georgia. The company processed and bagged sugar products through a complex network of conveyor belts, chutes, hoppers and mills. Over time, the floors and machinery became covered in sugar. Employees would use canned air to clean the sugar off internal machinery, sending sugar particles into the air. The sugar particles would then settle on hard-to-reach pipes overhead. Eventually, sugar dust built up inside chutes below the main floor of the plant. When a conveyor belt malfunctioned, the gears created a spark, igniting the sugar dust in the chute. A flash fireball ripped through the foundation, sending more sugar dust into the air. This created a chain reaction of secondary explosions and fire.

What is combustible dust?

The Occupational Safety and Health Administration (OSHA) defines combustible as “fine particles that present an explosion hazard when suspended in air under certain conditions.” Combustible dust can cause flash fires, explosions and fires. There is a difference between these terms. One or all three can be present in combustible dust incidents:

Flash fire
A flash fire is a sudden and intense fire caused by a spark (fuel source) inside a mixture of air (oxygen source) and a dispersed flammable material (fuel source). The fuel source could be gas fumes or fine combustible particles. Flash fires may ignite and dissipate quickly, as a flash.
Sometimes, the air is so saturated the flash fire burns longer. If the area is contained or flammable materials are in the flash fire’s path, things become even more dangerous.

Explosion
An explosion is when the combustion process transitions from a flash fire to a detonation. The shock wave produced by the blast moves faster than the speed of sound. Explosions typically occur when the flash fire is confined to an area or building, like a manufacturing facility. Pressure from the blast triggers a sudden release of energy in the form of a shock wave that blows apart whatever contained it.

Fire
A fire is a reaction between a substance and a gas that releases heat and light. Fires usually involve solid combustibles, like wood or paper. But they can also involve liquids or gases. During a flash fire or explosion, other flammable materials may catch fire and burn much longer than the flash fire or explosion.

What are the conditions needed for dust to combust?

According to the National Fire Protection Association (NFPA), here are the conditions required to create a fire, flash fire and explosion:
To create a fire, you need three things:

  1. fuel
  2. oxygen
  3. an ignition source

For example, let’s say you stack a pile of dry kindling wood (fuel) in a pit in the open air (oxygen), and you drop a lit match (ignition source) on the pile.

To create a combustible dust flash fire, you need four things:

  1. fuel
  2. oxygen
  3. an ignition source
  4. dispersion

Let’s take the kindling wood example further. You crush the kindling wood into fine dust and throw it into the air over a flame.

To create a combustible dust explosion, you need five things:

  1. fuel
  2. oxygen
  3. an ignition source
  4. dispersion
  5. a contained area

Let’s say you crush the kindling wood into fine dust and put it in a metal container. You use a blower to disperse the dust throughout the container. Then, you light a match and throw it into the container.

Watch the NFPA’s “What Is a Combustible Dust Explosion?” video to see how combustible dust explosions work.

Examples of combustible dust sources and industry operations

Combustible dust can come from various sources, including materials such as:

  • Coal
  • Wood
  • Pulp
  • Rubber
  • Grain
  • Sugar
  • Flour
  • Spices
  • Grain feed
  • Plastics and plastic processing operations (like industrial 3D printing)
  • Metals and metal processing operations (like recycling)
  • Chemicals
  • Textile fiber

According to OSHA, industries with the highest combustible dust-related fatalities and catastrophes are:

  • Farm suppliers
  • Grain processing facilities
  • Animal food manufacturers
  • Food processing facilities
  • Industrial bakeries
  • Sawmills
  • Wood manufacturers
  • Institutional furniture manufacturers
  • Metal window and door manufacturers
  • Sheet metal work manufacturers
  • Reupholstery and furniture repair operations
  • Coal-fired power plan
  • Chemical manufacturers
  • Recycling facilities

This list is not exhaustive. In fact, the list of combustible dust-related materials and industries keeps expanding as incidents are investigated.

How to prevent combustible dust hazards

If your business processes or handles materials that generate dust, you are susceptible to combustible dust hazards. Combustible dust can be a hidden hazard, making it even more dangerous. Dust can form on surfaces like overhead beams, inside ventilation systems, on top of equipment and in hard-to-reach places.

Evaluate your operations

You’ll need to assess whether your operations produce fine dust and take action to reduce it. If you can see dust floating in the air or on surfaces, you have a dust problem. Frequent equipment malfunctions can also indicate a dust problem. If your employees complain of breathing difficulties or eye irritation, you have a problem.

You can call an industrial hygienist to evaluate your workplace. You can also determine the levels using a dust sampling device or a light sensor that analyzes the amount of dust in the air.

The NFPA recommends using the “three C’s” if you have dust-producing operations at your business:

  • Contain. Use equipment that contains the dust within the machine you’re using. Ideally, the dust created by operating the machine never escapes into the air or settles on surfaces. One example is a filtration device that pulls dust back into a container attached to the machine.
  • Capture. Use another machine to capture the dust as it escapes into the air or onto surfaces. Dry dust and wet dust collector systems, downdraft tables and bin vent collectors are dust-capturing machines that pull dust out of the surrounding environment. They use fans, ducts and filters to draw dust from the environment.
  • Clean. Clean dust from shelves, machines and surfaces. Remember to remove dust from inside machines according to the manufacturer’s instructions.

The NFPA also has combustible dust exposure and prevention publications for sale.

Do your research

Combustible dust might not get top billing, but don’t let that lull you into a false sense of safety.

According to OSHA, the U.S. Chemical Safety and Hazard Investigation Board (CSB) has reviewed 140 safety data sheets (SDSs) for substances that produce combustible dust. The CSB found that 41% of the SDSs didn’t have a combustible dust warning, and the remaining 59% didn’t clearly state the danger.

Combustible dust doesn’t have its own OSHA standard, but other standards reference it. For example, OSHA references dust explosions in grain handling facilities of 1910 Subpart R, Special Industries. OSHA could also cite you for general combustible dust violations under the following:

  • General duty clause
  • Hazard communication standard
  • Respiratory protection standard

OSHA has created a Revised Combustible Dust National Emphasis Program as part of an explosive dust
awareness initiative.

Defeat the dust

Dust accumulation can pose a severe risk if the dust is combustible. Being proactive, keeping your workplace clean, understanding the materials you use in your daily operations and training your employees can help you prevent a catastrophic accident. If you need help, contact OSHA’s On-Site Consultation Program for a no-cost, confidential assessment of your operations. Don’t give dust a chance.

Contact Us

For more information about this topic, please contact our Risk Management team.

This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.

Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.

Written content in blog post: Copyright © 2024 Applied Systems, Inc. All rights reserved.

Navigating Changes in Health Insurance Coverage

| December 4, 2024
Health and medical insurance

Stay Informed and Proactive

The healthcare landscape in Central New York is undergoing significant changes. Many healthcare providers are no longer accepting certain insurance plans, which can impact your healthcare coverage. This year, staying informed and proactive is more important than ever.

As healthcare providers evaluate their network relationships with prominent insurance plans, changes to these agreements could affect thousands of patients and may lead to a broader shift in how healthcare services are accessed and covered. As these changes unfold, it’s important for patients to understand their coverage options and be prepared to make necessary adjustments.

What You Need to Know
  1. Is My Plan Being Offered Next Year? You may receive a letter that your current plan won’t be offered next year. If that’s the case it is very important you call us, as you will not automatically be enrolled in a new plan.
  2. Review Your Annual Notice of Change: Pay close attention to the annual notice of change from your insurance company. This document outlines any changes to your plan, including coverage adjustments and network changes.
  3. Take Action: If your healthcare provider is no longer in-network, take action. You might need to pick a new insurance plan or find a provider that accepts your current one.

At OneGroup, we understand that these changes can be stressful and overwhelming. We’re here to partner with you to help ease some of the burden. By staying informed and proactive, you can ensure that you continue to receive the healthcare coverage you need.

Our team of Medicare specialists is dedicated to guiding you through these changes. We can assist in translating insurance communications and ensuring you understand your options.

For more information

Click here to get in touch OneGroup’s Medicare team for more information. 

We are not a government agency. We are licensed insurance agents who discuss insurance programs such as Medicare Advantage, Medigap, and Medicare Part D Prescription Drug Coverage. Any information we provide is limited to those plans we do offer in your area. Please contact Medicare.gov or 1-800-Medicare to get information on all of your options.

This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.

Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.

2025 Minimum Wage Changes

| November 26, 2024
Minimum Wage With Dollar & Pennies High Quality Stock Photo

Each year, states across the nation hike their minimum wages.

Whether rising wage requirements are in response to inflation, higher costs of living, constituent demand or a blend of factors, they affect employers.

Read on to find out whether your payroll will be affected in 2025.

Which state minimum wages are changing in 2025?

While the federal minimum wage won’t be changing in 2025, you may still have to increase your pay for entry-level workers based on state minimum wage changes.

Check the list below to see if your state is increasing its minimum wage in 2025. Note that some states automatically adjust their minimum wage for inflation each year. Unless otherwise noted, the new wage requirements take effect Jan. 1, 2025.

StateChange
AlaskaAlaska’s minimum wage increases annually using an inflation-based cost of living adjustment. It is expected to rise to $13 from $11.73 based on reports from Alaska Public Media. Note that the state is currently divided over a ballot measure that would increase the minimum wage to $15 an hour by 2027.
ArizonaArizona’s minimum wage will increase to $14.70 per hour, up from $14.35. Flagstaff’s minimum wage will increase to $17.85 in the new year.
CaliforniaCalifornia’s minimum wage will increase to $16.50 per hour.
ColoradoColorado’s minimum wage will rise from $14.42 to $14.81. The hourly tipped minimum will rise from $11.40 to $11.79. Some cities, including Denver, will maintain their own minimum wages tied to inflation.
ConnecticutConnecticut’s minimum hourly wage will increase to $16.35 in 2025. This is in accordance with a state law passed in 2019 to implement five annual increases in the hourly wage. Further increases will be tied to the U.S. Department of Labor’s Employment Cost Index.
DelawareDelaware’s hourly minimum wage will increase incrementally over a period of years. In 2025, it will rise to $15.
FloridaFlorida’s minimum wage will rise to $14 on Sept. 30, 2025.
IllinoisIllinois’ minimum wage will rise from $14 to $15 per hour.
IndianaBeginning Jan 1, 2025, Indiana’s minimum wage will rise to $10.07
IowaIowa’s minimum wage is expected to rise to $15 per hour in 2025.
MaineMaine’s minimum wage will increase to $14.65 per hour effective at the beginning the year.
MarylandMaryland’s minimum wage will increase to $16 per hour for employers of all sizes starting at the beginning of the year. As of 2024, the state has departed from its previous wage-by-employer-size structure.
MassachusettsThe minimum wage for small employers will rise to $15 per hour. For large employers, it will rise to $18 per hour. “Large employers” are those with 26 or more employees.
MichiganMichigan’s minimum wage is set to increase from $10.33 to $12.48 per hour. The state’s tipped minimum wage will rise to $5.99 per hour, or 48% of the standard minimum wage.
MinnesotaBeginning Jan 1, 2025, all Minnesota employers must raise their minimum wage from $10.85 to $11.13 per hour to account for inflation. In 2024, legislation was passed to eliminate minimum wage “tiers” for large versus small employers. Instead, a uniform minimum wage was implemented.
Note that this state minimum wage does not apply to work performed in certain cities, including Minneapolis or St. Paul. Those cities have higher minimum wages.
MississippiBeginning Jan 1, 2025, the state’s minimum wage will rise to $15 per hour.
MontanaMontana’s minimum wage will increase to $10.55 from $10.30, representing a cost of living adjustment.
NebraskaNebraska’s minimum wage will increase from $12 to $13.50 an hour. It will continue to rise $1.50 annually, reaching $15 an hour in 2026.
New JerseyNew Jersey’s minimum wage will rise to $15.49 an hour, up from $15.13.
New YorkNew York’s minimum wage will rise to $15.50 beginning in 2025. Minimum wages will also rise to $16.50 an hour in New York City, Long Island and Westchester. Wages will continue to rise by $.50 annually in 2026.
OhioThe minimum wage in Ohio will rise from $10.45 to $10.70. The tipped workers’ wage will rise from $5.25 to $5.35.
OregonBeginning July 1, 2025, Oregon’s minimum wage is expected to rise across all counties. The state’s standard minimum wage will be $14.70 per hour. The minimum wage for the Portland metro area will be set at $15.95 per hour. And for Oregon’s classified nonurban areas, the minimum will be $13.70 per hour.
Rhode IslandRhode Island’s minimum wage will increase from $14 to $15 an hour.
South CarolinaIn a landmark decision for the state, minimum wages will rise to $17 per hour starting Jan. 1, 2025.
South DakotaSouth Dakota’s minimum wage will increase to $11.50, up from $11.20.
VermontVermont’s minimum wage will rise from $13.67 per hour to $14.01 per hour at the beginning of the year.
VirginiaVirginia’s minimum wage will rise to $12.41, up from $12.
WashingtonWashington’s minimum wage will rise to $16.66 per hour, up from $16.28 in 2024.
West VirginiaWest Virginia’s minimum wage will rise to $11 per hour in 2025. Thereafter, it will increase by $1 each year.
Which states are keeping their minimum wages in 2024?

All other states are maintaining their current minimum wages:

  • Alabama
  • Arkansas
  • District of Columbia
  • Georgia
  • Hawaii (But note that Hawaii’s minimum wage is set to rise to $16 per hour in 2026.)
  • Idaho
  • Kansas
  • Louisiana
  • Nevada
  • New Hampshire
  • New Mexico
  • North Carolina
  • North Dakota
  • Oklahoma
  • Pennsylvania
  • Tennessee
  • Texas
  • Utah
  • Wisconsin
  • Wyoming
  • Missouri
Is the federal minimum wage changing in 2025?

So far, there haven’t been any reports about the federal minimum wage changing in 2025. As of this writing, it appears that the federal minimum wage will remain at $7.25 per hour. This has been the case since 2009.

If you have federal contract workers

The minimum wage for federal contract workers is increasing to $17.85 per hour on Jan. 1, 2025. This change is based on the Bureau of Labor Statistics’ Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). As many small businesses do not engage with federal contract workers, this change is most likely to affect large companies only.

If you have tipped employees

If you have tipped employees, the federal minimum wage for them is $2.13 per hour. If the amount of tips a worker receives in addition to $2.13 per hour does not reach at least $7.25 per hour, you must pay to make up the difference.

Stay on top of your compliance obligations

With the rise of remote and hybrid work, it’s more important than ever to stay on top of the minimum wage rules in the states where you operate and employ workers. If you have any questions or concerns about your compliance, contact your benefits adviser or legal counsel.

Need more information?

For support on this topic contact OneGroup HR Consulting at HR Consulting at hrconsulting@onegroup.com. They can provide best practices on reassignment, including planning, training, communication, and compliance.

This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.

Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.

Written content in blog post: Copyright © 2024 Applied Systems, Inc. All rights reserved.

Snowplow Safety

| November 25, 2024
Close up of yellow blade of a yellow snowplow during a snow storm

Ensuring Safety and Efficiency in Snowplow Operations

Operating snowplows is a critical task, especially in regions prone to heavy snowfall. While these machines are essential for maintaining clear and safe roadways, they also pose significant risks if not operated safely. It is crucial to implement comprehensive safety measures to protect operators, the public, and assets.  

The Importance of Safety in Snowplow Operations 
Protecting Operators and the Public 

Snowplow operators face hazards like poor visibility, extreme weather, and long shifts. Ensuring their safety prevents accidents and injuries. Improperly operated snowplows can cause accidents involving vehicles, pedestrians, and property. Safety measures help mitigate these risks. 

Reducing Liability 

Adhering to safety regulations reduces the risk of legal repercussions and costly insurance claims. Implementing safety protocols minimizes incidents, protecting municipal budgets. 

Maintaining Operational Efficiency 

Proper operation and maintenance of snowplows extend their lifespan, reducing the need for frequent repairs. Safe operations ensure that snow removal services are not disrupted by accidents or equipment failures. 

Key Safety Measures for Snowplow Operations 
Comprehensive Training 

Provide thorough training for all snowplow operators, covering safe driving techniques, equipment handling, and emergency procedures. Regularly update training to include new safety protocols. 

Regular Equipment Maintenance 

Conduct detailed inspections of all snowplows before the winter season to ensure they are in optimal working condition. Implement a schedule for regular maintenance checks throughout the season. 

Clear Communication and Signage 

Equip snowplows with reliable communication systems to keep operators connected with dispatch and emergency services. Use clear and visible signage to alert the public of snowplow operations. 

Adherence to Safety Protocols 

Enforce strict speed limits for snowplow operations to prevent accidents caused by excessive speed. Equip snowplows with adequate lighting and reflective materials to enhance visibility in low-light and poor weather conditions. 

Emergency Preparedness 

Ensure all snowplows are equipped with emergency kits, including first aid supplies, blankets, and tools for minor repairs. Develop and communicate clear emergency response plans for operators to follow in case of accidents or equipment failures. 

Implementing robust safety measures for snowplow operations helps protect your workforce, reduce liability, and ensure the efficient and safe removal of snow. For more information on managing risks associated with snowplow operations, contact our team.  

Contact Us

To learn more about unique public sector risks and how to address them, contact our OneGroup Municipality team.

Matt Maguire, Regional President, North Country at MMaguire@OneGroup.com.

Todd Goodman, Risk Management Consultant at TGoodman@OneGroup.com.

This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.

Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.

Written content in blog post: Copyright © 2024 Applied Systems, Inc. All rights reserved.