Blog - Month: June 2025
Cal/OSHA Making Changes to Heat Illness Prevention Rules
Cal/OSHA has released draft language that would require employers of outside workers to take additional steps to ensure their safety when working in high heat conditions.
The proposed rules were written to implement legislation — AB 2243 — signed into law in 2022 to address heat and wildfire smoke protections for workers. The draft rules, which address only heat, will complement existing heat illness prevention regulations that employers of outdoor workers are already required to follow.
The draft would require some employers to implement extra high heat illness prevention steps when temperatures reach 80 degrees for both indoor and outdoor employers. Under current rules, employers must provide shade for outdoor workers when temperatures reach 80 degrees, but additional high heat protections aren’t required until the mercury reaches 95 degrees.
Acclimatization
One part of the draft heat rules revises acclimatization procedures. Under current rules, a supervisor or designee must closely observe all employees during a heat wave, and workers who are newly assigned to a high-heat area must be closely observed during their first 14 days on the job. The draft language changes the term “high heat area” with “an area where the temperature equals or exceeds 95 degrees Fahrenheit.”
The draft also would require employers to either implement high-heat procedures for five working days or adopt a proposed work schedule for new and returning employees assigned to an area where the temperature is at least 80 degrees.
If an employer chooses the work schedule option, an employee’s heat exposure would be restricted for the first four days as follows:
- 20% on day one,
- 40% on day two,
- 60% on day three, and
- 80% on day four.
Employers would not need to implement these acclimatization procedures if they can prove that the new employee has consistently worked under the same or similar conditions in the prior 14 days.
Additionally, the proposed rules would require employers to distribute a copy of their heat illness prevention plan:
- To new employees upon hire,
- During heat illness prevention training, and
- To every employee at least once a year.
At no time is an employer required to furnish a copy of the HIPP more than twice a year.
Current rules refresher
For outdoor workplaces, shade must be present when temperatures are greater than 80°F. When temperatures are less than 80°F, shade must be available upon request.
For indoor workplaces, provide access to at least one cool-down area that is kept at a temperature below 82°F and shielded from high-radiant heat sources.
Shade and cool-down areas must be:
- Blocked from direct sunlight.
- Large enough to accommodate the number of workers on rest breaks so they can sit comfortably without touching each other.
- As close as possible to the work areas.
Employers shall encourage workers to take preventative cool-down rest periods and allow those who ask for one to take it. Employers are also required to monitor workers during rest periods for symptoms of heat-related illness.
When the temperature reaches 95°F, employers are required to implement high-heat procedures which must include:
- Observing and communicating effectively with workers.
- Reminding workers to drink water and take cool-down rest breaks.
Employers are also required to:
- Establish, implement and maintain an effective written outdoor HIPP that includes procedures for providing drinking water, shade, preventative rest periods, close observation during acclimatization, high-heat procedures, training and prompt emergency response.
- Provide first aid or emergency response to any worker showing signs or symptoms of heat illness, including contacting emergency medical services.
- Closely observe new workers and newly assigned workers in hot areas during a 14-day acclimatization period, as well as all employees working during a heat wave.
- Provide training on the HIPP to both workers and supervisors.
How Tariffs Are Affecting Construction and Insurance Costs
President Trump’s far-reaching tariffs are starting to bleed into building costs as many of the main materials used in construction are now subject to import taxes.
And as construction costs increase due to tariffs, so does the cost of repairing or replacing materials if damage occurs during construction. Rising repair and replacement costs make claims more expensive, and, in turn drive up the cost of property and casualty insurance for contractors.
Inputs for construction have already been on the rise for the last six years — particularly in 2020-2022, when the COVID-19 pandemic devastated global supply chains — and now many materials used in building or to build equipment and tools have been hit with hefty tariffs:
- Aluminum — 25% tariff, effective March 12.
- Lumber and timber — There is a 14.58% tariff on Canadian lumber, a rate that could rise to nearly 35% in coming months. The administration is studying whether to impose a 25% tariff on lumber from all nations.
- Steel — 25%, effective March 12.
Prices for building inputs may rise even higher if tariffs start snarling supply chains, which is a possibility. Higher tariffs can make imported goods harder to source and more expensive, forcing contractors to find new suppliers or wait longer for deliveries.
That can slow down a construction project, which costs money and increases exposure to a number of risks, including:
- Fire,
- Weather damage,
- Theft, and
- Vandalism, among others.
Effects on insurance
Here’s a look at how these tariff-driven cost increases may affect two types of insurance used by construction firms.
Builder’s risk insurance — These policies’ premiums are tied to the cost of materials and the length of a project. If building materials like lumber and steel cost more due to tariffs, the insured value of the project increases.
Example: A contractor is constructing a $25 million office building. If the tariff on imported steel and lumber increases the project cost by 10%, the insured value would increase by $2.5 million. The insurer accounts for that higher replacement value in its premium calculation, which will result in a larger premium.
Another factor that could result in higher claims costs is snarled supply chains — builders will have to wait longer for materials. That, in turn, can increase the building timeline, and if that happens, the contractor will need to extend their builder’s risk policy.
That will cost more as well, as the insurer will charge for the extension due to the longer exposure it will face.
General liability coverage extension — If delays occur, so will the exposure to increased worksite injuries, damage or third party claims. If a project takes longer to complete, it will mean the extended presence of workers, subcontractors and equipment. For each additional day a project takes to complete, the risk of an accident also increases.
Example: If a project extends past its deadline, the general liability policy would need to be extended for the additional time. And it’s unlikely that extension will be priced at the same rate as the original liability policy. Insurers will often reprice the policy extension based on the extended exposure and the kinds of subcontractors or equipment that will be on site.
The insurer may also require additional documentation and/or endorsements for the policy extension.
The takeaway
Higher costs of materials and insurance will make their way into project budgets, bids and profit margins. Another risk is that insurance certificates are delayed or found to be noncompliant, which can delay payments, result in expensive work stoppages and breaches of contract.
With all this in mind, you will need to work closely with your broker well in advance of new projects to ensure your coverage reflects the reality of higher material costs, the possibility of delays due to procurement issues and more.
A Reminder of Your Workplace Violence Prevention Annual Obligations
As the one-year anniversary of California’s workplace violence prevention law approaches, employers will need to take steps to ensure their continued compliance.
The law requires all California employers with 10 or more staff to have a workplace violence prevention plan and to provide training to employees on the plan by July 1, 2024. It also requires employers to revisit the plan annually and conduct new training.
It’s important that employers comply with the law, as Cal/OSHA is actively enforcing all aspects of it during its standard workplace safety inspections. Noncompliance with SB 553 can result in fines ranging from $18,000 to $25,000 per violation.
Here’s what employers need to focus on:
Updating the plan
Employers should revisit their workplace violence prevention plan annually to make sure it’s up to date.
Under the law, an effective workplace violence prevention plan:
- Identifies who is responsible for implementing and managing the plan. This may need to be updated if a new person is assigned this responsibility.
- Includes details for how to accept and respond to reports of workplace violence. This may need to be changed if there is a new person to report incidents to.
- Prohibits retaliation against employees who report incidents of workplace violence.
- Includes details for communicating with employees regarding workplace violence matters, including how to report a violent incident, threat or other workplace violence concern; effective ways to alert employees to the presence of a workplace violence emergency; and how to obtain help from staff assigned to respond and/or law enforcement (personnel may have changed, so the plan may need updating).
- Lays out instructions for responding to actual and potential emergencies.
- Includes procedures for post-incident response and investigation.
- Requires the employer to provide effective training upon hire and once a year thereafter.
- Requires the employer to identify, evaluate and correct workplace violence hazards. This may need to be updated if a new hazard is identified.
- Requires the employer to post incident response and investigations.
Training
Employers are required to train their employees on the plan and provide training materials that are easy to understand. Training must be conducted upon hire and once a year thereafter.
Training must include:
- Familiarizing employees with the plan and how to participate in developing and implementing it.
- Definitions and requirements of California Labor Code Section 6401.9, which codifies the workplace violence prevention law.
- Information on how to report workplace violence incidents without fear of retaliation.
- Job-specific violence hazards and preventive measures.
- Explaining the purpose of the violent incident log and how to obtain related records.
- The opportunity for employees to ask questions and get more information about your plan.
Record-keeping
Employers are required to keep up-to-date records, including any incidents in the past year. Required records include:
- Workplace violence hazard identification, evaluations and any corrections made, which must be maintained for at least five years.
- Training, which must be kept for one year.
- Violent incidents, which must be kept for at least five years.
- Workplace violence incident investigations, which must be kept for at least five years.
A final word
While we are only one year into the law, it’s important that employers foster open communication and encourage employees to report potential hazards and concerns without fear of retaliation.
Also, regularly check for Cal/OSHA updates and other agencies to ensure you are compliant. If you need assistance, consider partnering with compliance experts to streamline the process.