Blog - Tag: Measured Risk Insurance
Study Finds AI Hiring Tools May Increase Bias Risks
A new study has found that artificial intelligence AI hiring tools can disproportionately screen out Black and Asian job applicants and repeatedly reject the same candidates across multiple employers using the same technology.
The findings raise new concerns for employers as AI increasingly becomes a fixture in recruiting. According to the World Economic Forum, about 90% of firms now use artificial intelligence to help vet job applicants.
Researchers at Stanford’s Institute for Human-Centered Artificial Intelligence analyzed 4 million job applications submitted to more than 150 employers using the same third-party hiring platform. They found that 26% of Black applicants and 15% of Asian applicants applied for positions where the AI system produced outcomes that met the Equal Employment Opportunity Commission’s standard for adverse impact. That means about 40,000 applications by these applicants could have advanced to the next stage of the hiring process.
The study’s findings mean that employers need to be mindful of potential discriminatory results from using AI during the hiring process. Courts have historically held employers liable for practices that create disparate impact on protected groups, and several recent lawsuits have challenged the use of AI in hiring under federal anti-discrimination laws.
Bias may be hidden
The study found that discriminatory outcomes can be difficult to spot because aggregate data often mask problems.
For example, an AI system might recommend Black applicants for one type of job but reject them for another. When all positions are combined, the disparities may disappear statistically even though significant differences exist for individual jobs.
That distinction matters because courts typically analyze disparate-impact claims on a position-by-position basis.
Perhaps the study’s most significant finding involves what researchers call “algorithmic monoculture.”
Many employers rely on the same small group of third-party vendors to screen candidates. As a result, the same algorithms may influence hiring decisions across hundreds of companies.
The researchers found that applicants who applied to multiple jobs screened by the same AI platform were more likely to be rejected by every employer than would be expected if each company made decisions independently. One in 10 applicants who submitted four applications through the platform was rejected by all four employers.
The takeaway
The study reinforces a key legal truth: employers remain responsible for the tools they use.
Even when using systems from third-party vendors, courts are likely to hold employers accountable for discriminatory outcomes. As a result, employers should treat AI governance as a central part of their compliance efforts.
Employers that use AI in recruiting may want to consider the following safeguards:
- Conduct adverse-impact analyses by individual job position.
- Require vendors to provide validation studies and bias-testing data.
- Maintain human review of applicants screened out by AI.
- Periodically audit hiring outcomes for potential disparities.
- Document how AI systems are selected, tested and monitored.
- Establish oversight teams that include HR, legal and technology personnel.
- Train managers on the limitations and risks of automated decision-making.
- Closely monitor evolving federal and state regulations governing AI in employment.
Construction Insurers Scrutinizing Bad Risks as Cost Drivers Rise
As the construction industry continues to benefit from strong demand for large projects, the insurance market is becoming increasingly selective. Insurers are drawing sharper distinctions between contractors with strong or challenged claims histories, according to a new report.
According to Aon’s “2026 Global Construction Insurance and Surety Market Report,” inflation, supply chain volatility, geopolitical uncertainty, cyber risk and growing catastrophe losses continue to influence pricing and underwriting. Across nearly every line of coverage, insurers are rewarding well-managed risks with stable pricing and ample capacity while scrutinizing accounts with poor loss experience, catastrophe exposure or elevated liability concerns.
Here’s a look at four main construction insurance lines.
Construction property
The construction property market remains one of the more stable segments. Capacity is generally plentiful, and pricing has softened modestly following a relatively mild catastrophe year. However, insurers remain focused on price adequacy and limiting natural catastrophe exposures.
Wildfire, severe convective storm, flood and earthquake exposures continue to drive underwriting decisions. While pricing for named windstorm, flood and earthquake risks has largely leveled off in many areas, contractors operating in high-hazard regions may face higher deductibles, tighter limits and more restrictive terms.
Water damage remains the leading source of routine construction losses, prompting underwriters to place greater emphasis on loss-control measures and technology designed to prevent or mitigate claims.
Construction casualty
The casualty market remains the most uneven segment of the construction insurance landscape. Commercial auto liability and physical damage rates continue to rise as insurers grapple with profitability and escalating claims costs. Contractors with large fleets, particularly in California, Florida, Georgia, Illinois, Louisiana and Texas, face challenging conditions.
General liability rates have been relatively stable for many commercial contractors, but heavy civil contractors, residential builders and firms with significant wildfire exposure continue to see higher rates and more restrictive underwriting.
Meanwhile, nuclear verdicts and social inflation continue to pressure excess liability markets. Insurers are deploying smaller limits, requiring higher attachment points and becoming more selective about the risks they support.
Professional liability
Professional liability conditions remain broadly stable for architects, engineers and contractors, particularly for organizations with fewer claims.
However, claims costs continue to rise due to inflation, higher defense costs and large verdicts. As a result, many carriers are pushing policyholders to take on higher deductibles and retain more risk, especially on large projects and loss-affected accounts.
Project-specific professional liability coverage remains available, but can be costly for megaprojects, where premiums often represent a significant percentage of policy limits.
Surety
The surety market remains one of the healthiest construction insurance lines. Strong infrastructure spending, data center construction and public-sector investment continue to support growth, while surety capacity remains adequate.
That said, insurers are starting to pay out more in claims in the mid-market construction sector due to:
- Rising supplier non-payments,
- Increasing performance defaults, and
- Growing contractor insolvencies.
As a result, surety underwriters are paying closer attention to financial statements, backlog management and aggregate exposure.
For financially strong contractors, rates remain stable and capacity is available. As project sizes continue to grow, however, sureties are increasingly focused on aggregate bonding capacity and the financial strength needed to support larger, more complex project portfolios.
The takeaway
While capacity remains available across most construction lines, insurers are becoming more selective. Contractors that want favorable rates will need to focus on risk management, sound financial management, effective fleet controls and disciplined project execution.
Rooftop Solar Systems Can Complicate Commercial Property Fires
While solar technology can provide significant long-term benefits for commercial property owners, they should also understand how these systems can affect fire safety.
Solar panels do not frequently cause fires on their own. However, when a fire occurs, the presence of a rooftop solar array can complicate firefighting efforts and increase the severity of the loss. As insurers encounter more claims involving solar-equipped buildings, many are paying closer attention to how these systems are installed and maintained.
Fires often require firefighters to quickly access rooftops, ventilate buildings and locate hidden fire conditions. Solar arrays can interfere with these tactics in several ways:
- Panels continue producing electricity when exposed to light, even after power is shut off.
- Large arrays can limit roof access and reduce available work areas for firefighters.
- Panels may block ventilation openings used to release smoke and heat.
- The area beneath panels can allow fire to spread across a roof.
- Solar equipment can interfere with thermal imaging and efforts to locate hot spots.
- The added weight of panels can affect structural stability during a fire.
- Burning components and battery systems may produce toxic smoke and hazardous gases.
Because of these obstacles, firefighters may need to alter their tactics, which can delay suppression efforts and increase damage to the building and its contents.
Installation and maintenance
Most solar systems are safe when installed correctly. However, poor workmanship, incompatible electrical components, damaged connectors and inadequate maintenance can create additional hazards.
Commercial property owners should work only with experienced, reputable contractors who follow National Electrical Code requirements and manufacturer specifications.
Property owners should also consider the building itself. Roof construction materials, insulation and available access routes play an important role in fire safety.
Steps to reduce the risk
- Hire qualified, certified solar installers.
- Ensure systems include rapid-shutdown capabilities.
- Maintain adequate roof access and firefighter pathways.
- Clearly label disconnect switches and electrical equipment.
- Remove debris that accumulates beneath panels.
- Replace damaged connectors or wiring promptly.
- Review any manufacturer recalls affecting system components.
- Evaluate battery storage systems separately and follow fire safety standards.
One of the most effective steps commercial property owners can take is to work with the local fire department before installation begins.
Large building owners should consider inviting the fire department to review installation plans and develop a firefighting strategy before the project is completed. Sharing information about roof layouts, equipment locations, shutoff procedures and access points can help emergency responders prepare for a possible future incident.
Written emergency procedures should also clearly identify who is responsible for shutting down solar equipment and communicating with first responders.
The takeaway
Solar panels can be a valuable investment, but they change how firefighters respond to a building fire. Employers that approach solar panel installation judiciously to reduce firefighting issues can reduce their risk and potential damage.
If you are considering solar panels for your commercial property, please call us to discuss your plans. If you can show your insurer that you’ve taken steps to mitigate damage should a fire occur, you may positively affect your insurance rates.
High Heat Can Turn Routine Workers’ Comp Claims into Complex Cases
Summer heat creates an obvious risk of heat exhaustion and heat stroke, but its impact on workers’ compensation claims often extends beyond these classic injuries.
High temperatures can contribute to workplace accidents, complicate medical evaluations and make otherwise straightforward claims more difficult to resolve, particularly when workers have pre-existing medical conditions.
Research has found that workplace injury rates rise noticeably during periods of extreme heat, even among workers who never develop a diagnosed heat illness.
In many cases, heat may act as a contributing factor rather than the primary injury. A dehydrated worker, for example, may lose focus while operating machinery. Fatigue may lead to a misstep from a ladder or scaffold.
Pre-existing conditions complicate causation
When an employee suffers a medical event during hot weather, insurers often try to determine whether the injury resulted primarily from workplace heat exposure or from:
- Underlying health issues — Diabetes, cardiovascular disease, kidney disease, obesity and high blood pressure can reduce the body’s ability to regulate temperature.
- Medications — Certain prescription medications, including diuretics, antihistamines and some psychiatric medications, may interfere with the body’s ability to cope with heat, making workers more susceptible to heat-related illness.
The existence of a pre-existing condition or the use of prescription medications does not automatically prevent an employee from receiving workers’ compensation benefits.
In many jurisdictions, if workplace conditions materially aggravate, accelerate or worsen an existing medical condition, the injury may still be compensable. A worker whose underlying heart condition is triggered or worsened by prolonged heat exposure may still have a valid claim if evidence shows that workplace conditions substantially contributed to the event.
Physicians may also evaluate whether a portion of a worker’s disability resulted from the natural progression of the pre-existing condition rather than work-related heat exposure. That process can influence claim costs and benefit determinations.
Thorough investigations common
Because heat-related claims may involve multiple contributing factors, claims professionals typically gather more evidence than they would for other workplace injuries.
Investigations may include:
- Weather conditions and heat index at the time of the incident
- Job duties and physical workload
- Hydration practices, rest breaks and acclimatization
- Use of personal protective equipment
- Witness statements
- Medical records documenting pre-existing conditions
- Information about medications that could affect heat tolerance
The more complete the documentation, the easier it becomes to determine whether heat materially contributed to the workplace injury or illness.
Prevention remains the best strategy
Providing water, shade, rest breaks, acclimatization for new staff, supervisor training and early recognition of heat stress symptoms can reduce the likelihood that heat exposure will develop into a serious injury.
Employers should also recognize that some workers face elevated risks during periods of high heat due to underlying medical conditions or medications. While employers generally may not inquire about an employee’s specific medical conditions, they can educate and support workers who may be more susceptible to heat-related injuries.
Employers may:
- Educate employees that certain conditions can reduce heat tolerance.
- Remind workers that some medications may increase the risk of dehydration or overheating.
- Encourage employees to discuss heat-related concerns with their physician or pharmacist if they have a chronic health condition or take prescription medications.
- Provide additional hydration and rest-break opportunities for workers who may be more vulnerable to heat stress.
- Encourage employees to promptly report symptoms such as dizziness, weakness, confusion or excessive fatigue.
- Train supervisors to recognize that workers with underlying conditions may exhibit signs of heat stress more quickly than others.
- Reinforce the buddy system so co-workers can identify early signs of distress and seek help if needed.
- Arrange temporary adjustments to work schedules, job rotations or assignments during periods of extreme heat when appropriate.
- Promote a workplace culture in which employees feel comfortable raising concerns about heat exposure without fear of stigma or retaliation.
Lenders Crack Down on Insurance Requirements
Lenders are tightening commercial insurance requirements for borrowers to ensure that they are adequately covered as property, liability and business interruption claims costs rise across the board.
With lenders tightening their standards, commercial property buyers should start their insurance planning well before closing or refinancing discussions. Lenders want to know that the property is protected, not only for the sake of your investment but also to safeguard the money they are putting into the loan.
Besides demanding adequate coverage limits, insurers are strictly enforcing A-rated insurer requirements and requiring updated appraisals to avoid underinsurance.
These developments require greater coordination between the lender, your insurance broker and legal counsel.
Essential insurance for loans
When seeking a business loan, lenders may require borrowers to prove they have several types of insurance. Here’s how lenders are scrutinizing three of the most commonly required policies:
Property — Lenders are concerned that property values may be understated in light of rampant rebuilding cost inflation. If a major loss occurs, inadequate coverage could create a funding gap that the policyholder would have to cover out of pocket. If that amount is large enough, it could hurt the borrower’s ability to make loan payments.
As a result, lenders want to see property policy limits that can cover the cost to rebuild rather than just the loan balance.
Business interruption — Lenders prioritize business interruption coverage because it directly impacts a borrower’s ability to make loan payments if disaster strikes. If a business is unable to operate due to a fire or supply chain disruption, it could severely affect its cash flow and imperil its ability to make loan payments.
Business interruption may be included in the language of a commercial property policy, but it’s important to ensure it is also suitable for lending purposes.
General liability — Lenders also want their borrowers to have a general liability policy in place that has adequate policy limits. They may require that the borrower carries additional umbrella insurance to cover the cost of large claims.
Liability insurance rates have been rising rapidly due to an explosion in large settlements, often in the tens of millions of dollars. Lenders are insisting that businesses taking out loans have policy limits that will ensure they can stay viable after a large verdict.
Other considerations
As claims costs have risen, lenders are increasingly reviewing endorsements, limits and policy language more carefully to ensure compliance with loan agreements and confirm that insurance can cover most eventualities.
Lenders often request particular wording and endorsements that ensure their rights are protected. These may be found in certificates of insurance or within the policy, including:
Mortgagee clause and lender loss payable wording — This clause ensures the lender is paid if a covered loss occurs. It prioritizes the lender’s interest in the event of a claim.
Proof of insurance showing correct limits and dates — The lender may request a certificate of insurance that lists policy limits, effective dates and contact information for the insurer. Any mistake can delay closing.
Replacement cost valuation — Lenders want the property insured at full replacement cost. This means the policy should reflect what it would take to rebuild the structure today, not what was originally paid for it.
Acceptable deductible levels — Some lenders limit how high the deductible can be. If the deductible is too high, they may require changes before approving the loan.
Some issues can delay closings on properties or cause problems after the loan is made, such as:
- Missing additional insured endorsements,
- Insufficient umbrella limits, or
- Inconsistent named insured listings.
Finally, if you are applying for a loan, reach out to us early as the market has changed drastically, particularly in high-risk areas.
Workers Eating Lunch at Desks Can Lead to Wage and Hour Lawsuits
With wage and hour litigation increasing in California, employers need to be especially careful of employees who eat lunch at their desks and work while eating.
While it’s not an issue for exempt employees, it is for hourly workers, who should be required to take their regular rest and lunch breaks without working while they are off the clock, a human resources specialist warns in a recent blog.
A recent study found that three in five workers report eating lunch at their desks at least sometimes. Even if they are just answering e-mails, that’s enough to result in a large fine for the employer.
Under California law, employers are required to provide meal and rest breaks to their employees. Additionally, the state Supreme Court ruled in 2021 that employers are not allowed to round up time-clock punches for employee meal periods and that workers must receive their full break allowance.
During their meal breaks, it’s important that workers abstain from working at all. That includes answering calls or checking e-mail.
The law
Employers are required to provide a half hour for a meal break to all non-exempt employees who work more than five hours in a day, unless the shift will finish in six hours or less and both the worker and employer agree to skip the meal break.
Meal periods can be taken during work and counted as time worked only if the nature of work prevents relief from all duties and if both the employer and worker agree to working through lunch in writing. Employees have the right to revoke that agreement at any time.
If an employee works more than 10 hours in a day, they are entitled to a second meal break of at least 30 minutes. That’s unless the total hours worked is no more than 12 hours, and both parties agree to waive the second meal break.
In addition to meal breaks, state law requires employers to provide a paid 10-minute rest period for every four hours worked. No break is required if the employee works three and a half hours or less.
Who’s exempt?
Some workers are exempt from these laws, in particular certain executive, administrative and professional employees. In order to be exempt:
- Their primary duties must be executive, administrative or professional, and they should devote more than half of their time to these duties.
- They must regularly and customarily exercise discretion and independent judgment at work; and
- They must earn a salary equivalent to at least twice the state minimum wage for full-time (40 hours/week) work.
What you can do
It’s imperative that you put policies in place to avoid being sued for infringing on your workers’ meal breaks. And your employees should understand they are not to work during their breaks.
You may want to consider:
- Requiring supervisors and managers not to contact workers while they are on their meal breaks. That includes calls, text messages or e-mails.
- Instituting a policy that bars employees from working during their meal breaks or anytime they are not on the clock.
- Encouraging staff to take breaks by normalizing the habit of briefly stepping away from work. Managers can lead by example by taking lunch breaks with their workers.
- Having a designated space like a break room for your staff to take their lunches. Ideally, it should be equipped with one or more tables, a refrigerator, microwave, plates, cups, glasses, sink and dishwasher.
- Recording these breaks so that you can prove your employees actually took them. This is essential in case you are sued. Provide a mechanism for your staff to record their meal periods, and require them to use it.
Cal/OSHA Urges Employers to Protect Outdoor Workers Against Heat Illness
As we get closer to another scorching California summer, Cal/OSHA is reminding employers with outdoor workers to take precautions to protect them against the heat.
California employers need to be especially mindful as Cal/OSHA has workplace safety regulations governing the prevention of heat illness and the agency actively enforces its heat illness prevention standard.
Employers should also comply for the safety and well-being of their workers, as heat illness can be deadly.
Cal/OSHA is urging employers to take the following steps to prevent heat-related illness among their employees who work outdoors:
Plan — Develop and implement an effective written heat illness prevention plan (HIPP) that is specific and customized to your specific operations.
The plan must include the following heat illness prevention and response procedures:
Training — Train all employees and supervisors on heat illness prevention. Nobody should be working outside in heat if they have not been trained in heat illness prevention and emergency procedures.
Water — Provide drinking water that is fresh, pure, suitably cool and free of charge so each worker can drink at least 1 quart per hour, and encourage workers to do so. Water should be located as close as practicable to where employees are working.
Access to shade — When temperatures reach 80 degrees, you must have and maintain one or more areas of shade at all times, when employees are present. Locate the shade as close as practical to the area where employees are working and provide enough to accommodate the number of employees on meal, recovery or rest periods at any time
Even if temperatures are less than 80 degrees, you must permit access to shade for workers to rest.
The importance of rest — Encourage workers to take a cool-down rest in the shade for at least five minutes when they feel the need to do so to protect themselves from overheating. Workers should not wait until they feel sick to cool down.
If an employee starts feeling unwell, they must be monitored for symptoms of heat illness and emergency procedures should be initiated if they don’t improve.
High-heat procedures — During heatwaves (when the mercury reaches 95 degrees), employers must institute high-heat procedures that include monitoring of employees, regular communication, more frequent reminders to drink water and rest, and additional cool-down rest periods.
Emergency response procedures should be site-specific and include who/how to call emergency services and steps to respond to signs and symptoms of heat illness.
Observe all employees and any newly assigned to a high-heat area. You should consider giving employees who have not been working in high temperatures time to adapt to the new conditions. You can do this by initially providing them with lighter work, frequent breaks or shorter hours.
Get the plan right
Your heat illness prevention plan must be in writing and include all of the above. The HIPP must be written both in English and in the language understood by the majority of employees. It must also be available to employees at the work site.
Additional information about heat illness prevention, including details on upcoming training sessions throughout the state, are posted on Cal/OSHA’s Heat Illness Prevention page.
The agency also has extensive multilingual materials for employers, workers and trainers on its “Water. Rest. Shade.” public awareness campaign website.
Bureau Recommends Workers’ Comp Benchmark Rate Hike
California’s workers’ compensation rate-making agency has recommended that average benchmark “pure premium” rates increase by 10.4% for policies incepting on or after Sept. 1, 2026.
The Workers’ Compensation Insurance Rating Bureau cited an increase in cumulative trauma claims as well as rising medical and administrative costs. The filing, if approved by the California Department of Insurance, would be the second consecutive year that the benchmark rate insurers use to price their policies has increased. Last year the DOI approved an 8.1% hike after WCIRB had recommended an 11.2% increase.
The pure premium rate increase has not resulted in employers with few or no workers’ compensation claims paying higher premiums since insurers only use the pure premium rate as a guidepost when pricing their policies. The pure premium rate remains at historical lows and the market is quite competitive.
The 10.4% recommended increase is an average across all the state’s workers’ compensation class codes, and each class will see a different change.
Here’s a look at the cost drivers:
Cumulative trauma claims
WCIRB estimates that 26.4% of all workers’ comp claims filed in the state in 2025 are for cumulative trauma injuries, compared to 15% in 2021. CT claims are not for sudden injuries, but rather those that develop over time through repetitive motions, such as:
- Carpal tunnel syndrome — Often claimed by office workers, data entry personnel and assembly line workers due to repetitive hand and wrist movements.
- Chronic back and neck injuries — Caused by years of lifting, bending, twisting or maintaining poor posture.
- Tendonitis and tendon disorders — Inflammation from repetitive shoulder or arm movements, common in construction, warehouse and food service jobs.
- Shoulder injuries — Rotator cuff tears or bursitis from repetitive overhead lifting.
- Knee problems — Develops from repetitive kneeling, squatting or climbing stairs, frequently seen in plumbers or floor layers.
About three out of every five CT claims are filed after an employee is terminated, according to WCIRB. There is a cottage industry of lawyers who find recently laid-off workers and convince them to file these claims. Adding to the cost: nearly all CT claims are litigated, in most cases from the first notice.
Medical costs
One anomaly in CT claims is that they usually have few medical costs in the first year, which masks the growing issue of rising medical costs for workers’ comp claims. According to WCIRB, average medical costs per claim increased 1.7% between 2021 and 2023, but excluding CT claims, that number rises to 3%.
Associated medical-legal costs are up 14% per claim in 2025, while medical equipment and other medical services costs jumped 7% in the same period.
Claims adjusting costs
The high litigation rates for CT claims are seeping into the cost of adjusting claims, according to WCIRB. It projects that insurers’ loss adjustment expense ratio (the cost of adjusting claims) will increase to 37.7% of claims costs, up from 35.7% in the Sept. 1, 2025, filing.
The total cost of claims adjusting increased from $12,636 per claim in 2024 to $14,235 in 2025 and is expected to rise 5.5% annually between 2026 and 2028 to $16,184.
The takeaway
The Rating Bureau has sent the rate recommendation to the Department of Insurance, which will hold a public hearing in the coming months, after which the insurance commissioner, with input from the public and department actuaries, will either accept the recommendation or order a different rate.
While the workers’ comp market is expected to stay competitive, the rate recommendation could portend moderately increasing rates in the coming years.
Why Safety in Design Should Lead Every Construction Project
Too often, safety on construction sites is treated as a field problem managed after work begins. By then, many of the most significant risks are already built into the job. Safety in design flips that approach by identifying and eliminating hazards before ground is ever broken.
Safety in design is a proactive process that integrates safety into the earliest stages of planning, engineering and layout. The goal is simple: to remove or reduce risks at their source rather than relying on protective equipment, procedures or workarounds later. For construction executives, design safety can mean fewer injuries, lower costs and smoother project delivery.
This approach requires project teams to think through how a structure will be built, used, maintained and eventually demolished — and address hazards at each stage. That means involving safety professionals, engineers and operations personnel so risks can be engineered out rather than managed in the field.
Where design decisions reduce real-world risk
Many of the most effective safety improvements are straightforward design choices made early in a project:
- Add roof parapets or guardrails to reduce fall risks and limit the need for active fall protection systems.
- Relocate rooftop equipment to ground level to eliminate work at height during maintenance.
- Design site layouts to separate pedestrian and vehicle traffic and improve equipment flow.
- Ensure adequate space for safety equipment like eyewash stations and spill kits.
- Plan access for safe removal and replacement of heavy equipment like generators.
Each of these decisions removes a hazard before it reaches the job site, reducing reliance on administrative controls or worker behavior to stay safe.
A gap between design and construction
Despite its benefits, safety in design has historically been underutilized in the U.S. Designers often distance themselves from construction-phase safety due to limited training in safety practices and concerns about increased liability.
That disconnect creates risk. Designers ultimately dictate how a project is built, including the materials and assembly methods used, yet they are often not directly involved in construction safety planning.
Design-build firms tend to perform better in this area. Designers and builders work within the same organization, so can collaborate more effectively. Construction teams flag safety concerns during design, and those lessons carry forward into future projects.
Companies working with outside design firms should insist on similar collaboration. Owners and contractors should consider bringing designers together with construction managers and safety teams to review risks and identify safer alternatives.
Why early involvement pays off
- Lower total project costs: Addressing hazards early avoids costly redesigns, delays and injury-related expenses.
- Fewer incidents and disruptions: Eliminating risks upfront reduces the likelihood of accidents that halt work and injure workers or third parties.
- Improved productivity: Safer, better-designed work sites are more efficient and easier to navigate.
- Reduced insurance and liability exposure: Fewer claims and stronger safety records can improve underwriting outcomes.
- Stronger competitive position: Many project owners now expect documented safety plans as part of bids.
A shift that is gaining momentum
Safety expert Georgi Popov notes that historically, most safety efforts have focused on the operational phase of projects. In an interview with Construction Dive, he said that is changing as more organizations recognize the value of early intervention.
“Our goal is to manage risk throughout the life cycle of a system or building, starting with the design concept,” Popov said, adding that earlier involvement helps eliminate embedded risks before they reach the field.
In short, projects are safer when they are designed that way from the start.
Urgent: Distribute New Workplace Rights Notice to Your Staff
If you have not yet distributed the state’s new required “Workplace Know Your Rights” notice to your workers, you missed the Feb. 1 deadline and need to act immediately.
California’s Workplace Know Your Rights Act (SB 294) mandates that employers provide all employees with an annual, stand-alone written notice detailing key workplace rights, including immigration protections, union organizing, workers’ compensation and law enforcement interactions. Under the law, notices must be distributed by Feb. 1, 2026 and to new employees upon hiring.
The law also requires employers, by March 30, 2026, to give employees the opportunity to designate an emergency contact and indicate whether that contact should be notified if the employee is arrested or detained at work or during work hours.
The notice must be delivered in a stand-alone format using the same method normally used to communicate employment information, such as personal service, e-mail or text message, as long as employees can reasonably be expected to receive it within one business day. Notices must be provided annually and upon hire.
The Labor Commissioner has issued a template in English and Spanish, with additional languages — including Chinese, Filipino, Vietnamese, Korean, Hindi, Urdu and Punjabi — forthcoming.
Workers’ compensation rights
The notice must inform employees of their rights to workers’ compensation benefits if they are injured or become ill due to their job. This includes medical care and disability pay to replace lost wages.
Immigration-related protections
A significant portion of the notice addresses immigration-related protections already codified in California law.
Employers must inform workers of their right to advance notice of inspections by immigration authorities, including inspections of I-9 forms. Employers that receive notice of an inspection must notify employees and any union representatives.
The law reinforces that employers may not engage in retaliatory immigration-related practices, such as threatening to report a worker or family member to authorities or improperly reverifying employment eligibility. The notice also outlines workers’ Fourth and Fifth Amendment rights during workplace interactions with law enforcement.
Right to organize
The notice must also describe employees’ right to unionize and engage in protected concerted activity. This includes the right to discuss wages and working conditions and act together to improve workplace conditions.
Penalties and next steps
The Labor Commissioner may assess penalties of up to $500 per employee per violation for failing to comply with the notice requirement.
Violations of the emergency contact provision can trigger penalties of up to $500 per employee per day, capped at $10,000 per employee.
Employers should:
- Determine and document a distribution method for current employees and new hires.
- Ensure a reliable recordkeeping process to confirm delivery.
- Update onboarding materials for new hires to include the notice and emergency contact designation.
- Train supervisors and managers on emergency contact notification obligations.
- Circulate the notice to staff to give them the opportunity to designate an emergency contact by March 30.