STATE LEGISLATIVE CHANGES

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1 STATE LEGISLATIVE CHANGES March and April 2018 Update California Family and Medical Leave Effective until Jan. 1, 2020, the California Department of Fair Employment and Housing is testing a mediation pilot program for complaints filed under the parental leave law that took effect Jan. 1, Effective Jan. 1, 2018, until Jan. 1, 2020, the California Department of Fair Employment and Housing is testing a mediation pilot program for parental leave complaints. Within 60 days after receiving a right-to-sue notice, employers can ask all other parties to participate in the department's Mediation Division Program. If employers make this request, employees can't pursue a lawsuit until mediation is complete and their statute of limitations is suspended from when they received the request until mediation is complete. Mediation is complete when one party notifies the program and all other parties that it won't participate in mediation or when the department notifies the parties that it believes further mediation would be ineffective. Overtime/Bonuses A recent case by the California Supreme Court changed the method by which employers will calculate overtime under California law when employees receive a flat sum bonus. Delaware The Uniform Arbitration Act The Uniform Arbitration Act: If parties to arbitration agreements refuse to arbitrate pursuant to these agreements, courts can order them to arbitrate. Courts also can direct arbitrators to hold prompt hearings and issue timely decisions. Illinois Chicago, Hotel Portable Automated External Defibrillator Ordinance On March 8, 2018 Chicago implements Illinois code of Ordinances Sec Under the Hotel Portable Automated External Defibrillator Ordinance, Chicago hotels must maintain portable automated external defibrillators (AED) on-site and readily accessible to assist employees and visitors. In addition, a hotel must also have a trained AED user on staff during business hours. Iowa Compensation Effective July 1, 2018, Iowa's pay statement law is expanded to specify the various acceptable means of providing pay statements to employees.

2 Maryland Maryland Healthy Working Families Act On February 11, 2018, the Maryland Healthy Working Families Act went into effect. All employers with employees whose primary work location is in Maryland are required to provide earned sick and safe leave, regardless of where the employer is located. Employers who employ 15 or more employees are required to provide paid earned safe and sick leave. Employers with 14 or fewer employees are required to provide unpaid earned sick and safe leave. For more information, read the state s FAQs or go to their website. Prince George s County Earned Sick and Save Leave Law Effective May 24, 2018, employers operating or doing business in Prince George s County, Maryland with 15 or more employees must comply with the county s new Earned Sick and Safe Leave law. Eligible employees may use earned sick and safe leave if the absence from work is due to domestic violence, sexual assault or stalking committed against the employee or the employee's covered family member and the leave is used in compliance with the law s requirements. Covered employers must also comply with notice, posting and recordkeeping requirements. The Prince George County ordinance was enacted in December 2017 for an effective date of May 2018, but had been preempted by the Maryland Healthy Working Families Act, effective February 11, 2018, which preempted the authority of local jurisdictions to enact their own laws to regulate employer-provided sick and safe leave. Massachusetts Massachusetts Pregnant Workers Fairness Act On April 1, 2018 the Massachusetts Pregnant Workers Fairness Act takes effect. It provides increased legal protection against pregnancy-related discrimination in the workplace. In addition, employers cannot deny pregnant women and new mothers reasonable accommodation for their pregnancies and any conditions related to their pregnancies. Michigan Michigan Local Government Labor Regulatory Act Michigan amends its Michigan Local Government Labor Regulatory Act barring local governments from instituting governance that prohibits asking Job applicants for Salary History. Nebraska Personal Information Protection Effective on or about July 18, 2018, employers must implement and maintain reasonable, appropriate security procedures and practices to protect employees' and applicants' personal information from unauthorized access, acquisition, destruction, use, modification, and disclosure. Effective on or about July 18, 2018, employers must implement and maintain reasonable, appropriate security procedures and practices to protect state residents', including employees' and applicants', personal information from unauthorized access, acquisition, destruction, use, modification, and disclosure. Personal information consists of residents' first name/initial and last name in combination with data, such as their Social Security number, where the name or data aren't encrypted, redacted,

3 or otherwise made unreadable or the encryption process or key is or likely was acquired through a security breach. It also includes usernames or addresses in combination with passwords or security questions/answers that allow access to online accounts. Personal information doesn't include information lawfully made available to the public from government records. Effective on or about July 18, 2018, waivers of the security measure provisions are void and unenforceable. EMPLOYER LIABILITY Effective on or about July 18, 2018, employers are in compliance if they: comply with a state or federal law that provides greater protections for personal information; are subject to and comply with regulations under Title V of the federal Gramm-Leach-Bliley Act (15 U.S.C et seq.); or are subject to and comply with regulations under the federal Health Insurance Portability and Accountability Act (42 U.S.C. 1320d to 1320d-9). Effective on or about July 18, 2018, employers must implement and maintain reasonable, appropriate security procedures and practices to protect state residents', including employees' and applicants', personal information from unauthorized disclosure. Effective on or about July 18, 2018, if employers disclose computerized data that includes personal information on state residents, including employees and applicants, to nonaffiliated third-party service providers, they must contractually require these providers to implement and maintain reasonable, appropriate security procedures and practices to protect the information from unauthorized access, acquisition, destruction, use, modification, or disclosure. This requirement doesn't apply to existing contracts (entered into before the requirement's approximate July 18, 2018, effective date) until they are renewed. PERSONAL INFORMATION DISPOSAL Effective on or about July 18, 2018, employers must implement and maintain reasonable, appropriate security procedures and practices to protect state residents', including employees' and applicants', personal information from unauthorized destruction. These procedures and practices must include safeguards that protect the information when employers dispose of it. Nevada Minimum Wage Effective July 1, 2018, the hourly minimum wage remains at $7.25 for employees who are offered qualified health benefits and $8.25 for other employees. Daily overtime requirements, for work in excess of eight hours in a 24-hour period, also remain unchanged with such overtime pay required for employees who earn less than $ an hour and receive qualified health benefits and for other employees who earn less than $ an hour. New Jersey Employee s Rights to an Invention For employment contracts entered into on or after April 1, 2018, provisions assigning an employee's rights to an invention to an employer are inapplicable to an invention that an employee develops entirely on the employee's own time and without using the employer's equipment, supplies, facilities or information. However, this excludes inventions that: Relate to the employer's business, research or development; or Result from any work performed by the employee on behalf of the employer. Further, employers are not restricted from including certain disclosure requirements relating to patents and inventions in an employment contract.

4 New Jersey Law Against Discrimination Effective July 1, 2018 New Jersey expands its existing pay equity law, the New Jersey law against Discrimination, requiring employers to provide equal pay for similar employment. An employer is prohibited from paying any employee who is a member of a class protected by the state's antidiscrimination law "at a rate of compensation, including benefits, which is less than the rate paid by the employer to employees who are not members of the protected class for substantially similar work, when viewed as a composite of skill, effort and responsibility." South Dakota Data Breach Effective July 1, 2018, the South Dakota Data Breach law goes into effect. Any entity doing business in South Dakota that retains personal or computerized protected information must disclose a breach to a resident whose information has been acquired by an unauthorized person. Virginia Health Benefit Mandates Prescription Drugs Effective for provider contracts entered into, amended, extended, or renewed on or after Jan. 1, 2019, plan provisions regarding coverage for prescription drugs are revised. Plans that provide coverage for prescription drugs, whether on an inpatient or outpatient basis, or on both an inpatient and outpatient basis, can't deny coverage for drugs that are prescribed to treat a covered indication so long as the drugs are approved by the federal Food and Drug Administration for at least one indication and are recognized for treatment of the covered indication in one of the standard reference compendia or in substantially accepted peer-reviewed medical literature. Healthcare issuers can't deny prescription drug coverage because drugs are only recently approved by the FDA. Effective for provider contracts entered into, amended, extended, or renewed on or after Jan. 1, 2019, issuers or pharmacy benefits managers can't impose copayments for covered prescription drugs that exceed the lesser of: applicable copayments for prescription drugs that would be payable in the absence of this section, or cash price that plan participants would pay for prescription drugs if participants purchased such drugs without using plans. Issuers or pharmacy benefits managers can't penalize pharmacy providers that provide plan participants with information relating to the availability of therapeutically equivalent prescription drugs or for selling such alternatives if they are more affordable. ANTI-CANCER MEDICATIONS: Plans that provide coverage for cancer chemotherapy drugs must apply cost-sharing provisions to orally administered anti-cancer medications on a basis that is consistent with plan cost-sharing provisions that apply to intravenously administered or injected anti-cancer medications. FORMULARIES: Plans that use drug formularies must supply participating healthcare providers and pharmacists with complete, current drug listings. If formulary drugs are determined to provide inappropriate therapy for plan participants condition, participants must be permitted to obtain specific, medically necessary nonformulary drugs without additional cost-sharing.

5 OFF-LABEL PRESCRIPTION DRUGS TO TREAT CANCER: Plans that provide prescription drug benefits, whether on an inpatient basis, outpatient basis, or both inpatient and outpatient basis, can't deny coverage for drugs that are approved by the federal Food and Drug Administration for use in the treatment of cancer on the basis that the drug hasn't been approved by the FDA for treatment of the specific type of cancer for which the drug is prescribed, so long as drugs are recognized as safe and effective for the treatment of that specific type of cancer in any of the standard medical reference compendia. Healthcare issuers also can't deny benefits for FDA-approved drugs for use in the treatment of cancer pain on the basis that the prescribed dosage is in excess of that stipulated in specified laws for plan participants who have intractable cancer pain. PHARMACY CHOICE: Issuers that provide pharmacy benefits through preferred provider networks and HMOs can't prohibit plan participants from selecting pharmacies of their choice, including pharmacies that are nonpreferred providers, so long as pharmacies or intermediaries have previously notified issuers or HMOs that they agree to provide pharmacy benefits to plan participants at the same rates that apply to preferred provider pharmacies. Issuers and HMOs can't impose: conditions, copayments or fees that aren't equally imposed on all plan participants in the same benefit category, class or copayment level regardless of whether or not such benefits are furnished by pharmacists who are nonpreferred providers; monetary penalties that affect or influence plan participants choice of pharmacies; or reductions in allowable reimbursements for pharmacy services provided by pharmacists who are nonpreferred providers. Specifically, issuers and HMOs can't: deny pharmacies that are nonpreferred providers immediate access to electronic claims filings, so long as pharmacies and HMOs sign and deliver issuers direct service or preferred provider agreement within 30 days from the date that pharmacies or HMOs are asked to provide a signed agreement; or require plan participants receiving pharmacy benefits to make point-of-service payments, except to the extent such conditions and penalties also are imposed on preferred providers. Issuers and HMOs can, but aren't required to, designate a single mail order pharmacy provider as the exclusive provider of pharmacy services that are delivered to plan participants by common carriers, delivery service, or mail. PRESCRIPTION DRUG BENEFIT/IDENTIFICATION CARDS: Health-care issuers that provide prescription drug coverage on an outpatient basis must provide prescription benefit cards, health insurance benefit cards, or other technology to plan participants that comply with the National Council for Prescription Drug Program Pharmacy ID Card Implementation Guide. Cards must contain the following: insurer, corporation, or HMO name or identifying trademark or, if another entity administers prescription drug benefits, the name or identifying trademark of the benefit administrator; plan participants name and identification number; telephone number that health-care providers can call for pharmacy benefit assistance; and electronic transaction routing information and other numbers required by insurers, corporations, HMOs, or benefit administrators to process prescription drug claims electronically. Health-Care Continuation Coverage Effective July 1, 2018, employees aren't eligible to continue group policy coverage if they are terminated from employment for gross misconduct.

6 Washington Equal Pay Act Effective June 7, 2018 Washington expands its Equal Pay Act. The new law makes it a misdemeanor for an employer to discriminate in providing compensation based on the gender of similarly employed employees. An employer cannot limit or deprive an employee from advancement opportunities based on gender. S2.PL.pdf Health Benefit Mandates Contraceptives Plans that provide coverage for prescription drugs must provide coverage for prescription contraceptive drugs and devices approved by the U.S. Food and Drug Administration. Plans that provide coverage for outpatient services must provide coverage for all outpatient contraceptive services. Effective for health benefit plans issued or renewed on or after Jan. 1, 2018, plans that provide coverage for contraceptive drugs must provide reimbursement for a 12-month supply or refill of contraceptive drugs dispensed at one time to plan participants, unless plan participants request smaller quantities or prescribing health-care providers instruct dispensaries that plan participants must receive smaller quantities. Contraceptive drugs means all drugs approved by the FDA to prevent pregnancy, including, but not limited to, hormonal drugs administered intravaginally, orally, or transdermally. Plans must allow health-care providers to dispense contraceptives drugs to plan participants at providers on-site offices, if available. Plans required dispensing practices must adhere to clinical guidelines for appropriate prescribing and dispensing to ensure plan participants health while maximizing access to effective contraceptive drugs. Plans can, but aren't required to, limit refills dispensed in the last quarter of the plan year if a 12- month supply of contraceptive drugs has already been dispensed during the plan year. Effective for health plans issued or renewed on or after Jan. 1, 2019, plans must provide coverage for: all FDA-approved contraceptive drugs, devices, and other products, including those sold over-the-counter; voluntary sterilization procedures; and consultations, examinations, procedures, and medical services necessary to prescribe, dispense, insert, deliver, distribute, administer, or remove covered contraceptive drugs, devices, and other products or services. Coverage can't be subject to copayments, deductibles, or any other cost-sharing requirements, unless health plans are offered as qualifying health plans for health savings accounts. Issuers that offer qualifying health plans must establish their plans' cost-sharing requirements at the minimum level necessary to preserve plan participants' ability to claim tax-exempt contributions and withdrawals from their health savings accounts under the Internal Revenue Service's laws and regulations. Issuers can't require prescriptions to trigger coverage of FDA-approved over-thecounter contraceptive drugs, devices, and products. Issuers can't deny coverage for covered contraceptives drugs, devices, and other products if plan participants have changed their contraceptive methods within a 12-month period.

7 Plans can't impose any restrictions or delays on coverage, such as medical management techniques that limit plan participants' choice in assessing the full range of FDA-approved drugs, devices, or other products. Plans must provide the same contraceptive benefits for all enrollees, enrolled spouses, and enrolled dependents. Health Benefit Mandates Maternity Health Care Plans that provide coverage for maternity services must permit attending healthcare providers, in consultation with mothers and based on accepted medical practice, to make decisions on the length of inpatient stays following childbirth. Follow-up care specifications for mothers and newborns must be made by attending healthcare providers in consultation with mothers and based on accepted medical practice at the time of hospital discharge. Newborn coverage must be no less than mothers coverage for at least three weeks if mothers and newborns have separate hospital admissions. Effective for health plans issued or renewed on or after Jan. 1, 2019, plans (except multistate plans that don't provide coverage for abortions) that provide coverage for maternity care or services must provide substantially equivalent coverage for abortions. Plans generally can't limit participants' access to services related to abortions, but coverage for abortions can be subject to plans' terms and conditions generally applicable to coverage of maternity care or services, including applicable cost-sharing requirements. Plans aren't required to provide coverage for unlawful or unauthorized abortions. [Note: If any part of Washington's application of substantially equivalent coverage for abortions to health plans would result in noncompliance with any federal requirements that affect allocation of funds to the state, then such coverage becomes inapplicable only to the extent necessary for Washington to come into compliance.] Health Benefit Mandates Preventive Health Care Effective for health plans issued on or after June 7, 2018, plans must at a minimum provide coverage without imposing cost-sharing requirements for the following preventive health services: evidence-based items or services that have a rating of A or B in the current recommendations of the U. S. Preventive Services Task Force; immunizations recommended by the Advisory Committee on Immunization Practices of the Centers for Disease Control and Prevention; evidence-informed preventive care and screenings for infants, children, and adolescents provided in guidelines supported by the Health Resources and Services Administration; with respect to women, such additional preventive care and screenings for mammography as provided for in comprehensive guidelines supported by the Health Resources and Services Administration; and any additional preventive services required under any federal rules or guidance in effect on Dec. 31, Plans and issuers can, but aren't required to, provide coverage for preventive health services in addition to these minimum requirements.

8 Job Applicant Effective June 6, 2018, Washington employers may not ask about arrests or convictions - or receive information through a criminal background check - before a job applicant is deemed otherwise qualified for a position. West Virginia Business Liability Act West Virginia s Business Liability Act removes the ability of an employer to prohibit an employee or customer from storing a lawfully possessed firearm inside of a private vehicle in a company parking lot. 8&sesstype=RS&i=4187 Fair Employment Practices Law Private employers are covered by the discrimination prohibitions if they have 12 or more employees in West Virginia for 20 or more calendar weeks in the calendar year in which the alleged discriminatory act occurred or the preceding calendar year. Employees include all employed persons, regardless of whether they perform tasks or receive compensation on a particular day; they don't include anyone employed by a parent, spouse or child. Public employers, employment agencies and labor organizations also are covered by the prohibitions. Wages On May 15, 2018, a West Virginia employer may withhold or deduct a portion of an employee's final wages if the employee does not return employer-provided property (as defined in the law) at the time of the employee's resignation or discharge to cover the replacement cost (as defined in the law) of the property. Wyoming Genetic Information Bias Effective March 16, 2018, employers generally can't obtain or analyze and retain or disclose employees' and applicants' genetic information without their informed consent. Effective March 16, 2018, employers generally can't obtain or analyze employees' and applicants' genetic information without their informed consent, directly or through their authorized representatives. Genetic information is information about the genetic characteristics of a person or the person's family members that results from genetic analysis. Genetic characteristics are genes, chromosomes, or alterations thereof that are scientifically or medically believed to predispose a person to a disease, disorder, trait, or syndrome or to identify a person or blood relative. Genetic analysis is a test of DNA, gene products, or chromosomes to determine the presence or absence of genetic characteristics in a person or family. Effective March 16, 2018, informed consent means the signing of a consent form, in writing or electronically, that includes a description of any genetic analysis to be performed, how this analysis or resulting genetic information will be used, how any genetic information will be retained or disclosed, and a description of certain rights. These rights include employees' and applicants' right to inspect, correct, and obtain their genetic information, directly or through their authorized representatives.

9 April 4, 2018 Select content in this document is provided by HR Workplace Services and presented to you by Crystal & Company without further verification. Other information in this document is based on publicly available information and from third party sources without further verification. We cannot and do not guarantee the accuracy, timeliness or completeness of such information for any particular purpose. Please be advised that this document is neither intended to be an interpretation of any policy language nor is it to be construed as a contract or providing legal or tax advice. Crystal & Company ( is the home for talented insurance professionals: creative, committed to their clients and driven to deliver extraordinary results. The company drives the strategy and execution behind insurance and employee benefits programs for businesses that want to be smart about risk. Crystal & Company is the insurance brokerage of choice for leading financial institutions, corporations and nonprofit organizations. Headquartered in New York City, the firm has 11 regional offices throughout the United States. Crystal & Company is an equity owner of Brokerslink, a global broking company with members in more than 95 countries around the world.