Self-driving vehicles may feel like something that will only be available in the distant future, but autonomous technology is already having an impact on the transportation industry. Many motor carriers are promoting new equipment to attract tech-savvy drivers, and advanced safety sensors are helping decrease accidents on the road.
Over 30 automakers and technology companies are working to make trucks fully autonomous, and many states have already passed self-driving legislation that allows for testing on public roads. But, even though this technology offers motor carriers a way to increase efficiency and improve safety, there are a number of topics your business needs to consider before adopting self-driving trucks.
The Different Levels of Automation
Most of the technology used in autonomous vehicles is an evolution of common safety features that use vehicle-mounted cameras and sensors, such as automatic brakes, lane departure systems and blind spot alerts. However, self-driving technology takes this concept a step further by having these systems work together to perform some or all driving functions.
Because there are multiple self-driving systems in development that offer different levels of autonomy, most companies use a system developed by SAE International to classify levels of autonomous vehicles. Levels 0-2 mainly define limited control systems that are commonly available in consumer and commercial vehicles:
- Level 0: No automation – The driver performs all driving tasks, but automated system issue warnings may be present.
- Level 1: Driver assistance – The vehicle and driver may share control in limited circumstances, such as adaptive cruise control and parking assistance. However, the driver must be ready to retake control at all times.
- Level 2: Partial automation – The vehicle has combined automatic functions (such as controlling acceleration and steering simultaneously), but the driver must be constantly engaged and aware of the surrounding environment.
Levels 3-5 define vehicles that are commonly referred to as autonomous or self-driving:
- Level 3: Conditional automation – A driver must still be present, but doesn’t have to monitor the environment. However, they must be ready to take control at all times and with no notice.
- Level 4: High automation – The vehicle can perform all driving functions under certain conditions, and switching control back to the driver may be optional.
- Level 5: Full automation – The vehicle can perform all driving functions at all times.
How Can Self-driving Trucks Help Carriers?
Self-driving trucks could help motor carriers address a number of common issues:
- Safety – Properly functioning self-driving systems operate without the chance of human error and can react to changing traffic patterns faster than a regular driver.
- Driver shortage – Regulations likely won’t allow vehicles to operate without a driver in the near future. However, the technology will attract applicants who don’t want to spend long stretches of time in full control of a commercial truck.
- Increased efficiency – Autonomous technology can give carriers real-time information on location, maintenance status and traffic patterns in order to increase efficiency and better manage fleets.
- Cost reductions – Motor carriers can reduce costs by sending autonomous trucks on more fuel-efficient routes or by platooning the vehicles together to reduce air drag.
What Risks Does This Technology Present?
Although autonomous technology is advancing rapidly, there are still a number of risks and obstacles to overcome before the vehicles can be widely adopted:
- Public perception – Advanced sensors generally make self-driving trucks safe, but recent high-profile collisions and fatalities during tests have lowered the public’s opinion of the technology.
- Long-term employment – Autonomous technology will help to attract new drivers in the near future, but some experts believe that fully independent vehicles may someday eliminate millions of jobs.
- Liability – The liability of an accident involving human-driven vehicles is fairly easy to judge. However, self-driving trucks bring a nonhuman factor into the equation that makes it difficult to determine if an operator, technology developer, manufacturer or other party is at fault for an accident.
- Compliance – Individual states, cities and jurisdictions currently manage laws regarding the testing and use of self-driving trucks, making interstate commerce more complicated. However, the FMCSA recently requested feedback on the regulations that would have to be updated, modified or eliminated to safely allow for the use of autonomous vehicles. Key questions discussed by the agency include the following:
- How will motor carriers ensure automatic systems are functioning properly?
- What changes, if any, should be made to distracted driving regulations?
- How will enforcement officials determine a vehicle’s SAE classification level, and would easily identifiable classification signage negatively affect other drivers?
- How should a driver’s hours of service be recorded when using an automated driving system?
Considering Your Options
As self-driving vehicles continue to develop, your business should carefully consider how both the advantages and risks of this new technology will impact its operations. Contact us at 831-661-5697 today for help analyzing your unique risk exposures.
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On May 21, 2018, the U.S. Supreme Court ruled that employers can use arbitration clauses in employment contracts to bar employees from filing class-action lawsuits related to wage and overtime claims. In a 5-4 split decision, the court determined that employment agreements can require arbitration, waiving the employee’s right to participate in a class-action lawsuit, to settle these disputes.
This ruling is a departure from the position taken by the Obama administration and the National Labor Relations Board (NLRB). Instead, the decision favors employers and follows President Donald Trump’s position on federal employment law that employers are entitled to waive their employees’ right to file class-action lawsuits under the Federal Arbitration Act (FAA).
As a result of this ruling, employers are now free to include clauses in employment contracts requiring the use of arbitration to resolve wage and overtime claims, and barring class-action lawsuits related to these matters. The ruling can protect employers from costly litigation, but critics argue that it could allow employers to escape liability for labor law violations.
Arbitration is a private method of dispute resolution that is used as an alternative to court action, where an impartial third party makes a binding decision on the matter, rather than a judge or a jury. Historically, arbitration has been used in a wide variety of disputes as a cost-saving measure to avoid the burden and expense of litigation.
Mandatory arbitration clauses have become increasingly common in many types of contracts and agreements, especially among large corporations and in consumer transactions. However, courts have had to impose certain limits on the use of these types of clauses, particularly in situations where one party has more bargaining power than the other.
Federal labor law is conflicting on the issue of mandatory arbitration in employment agreements. The National Labor Relations Act (NLRA) guarantees employees’ right to collective action, while the FAA encourages the use of arbitration agreements and generally requires courts to enforce these provisions as written.
The court ruled that arbitration clauses in employment contracts that waive the employees’ right to participate in class actions are lawful and enforceable.
Historically, courts and the NLRB agreed that arbitration agreements are enforceable. In 2012, however, the NLRB took the position that arbitration clauses in employment agreements that include class-action waivers violate the NLRA. As a result, the NLRB pursued and invalidated arbitration agreements and policies used by many employers. The Obama administration sided with the NLRB, arguing that the NLRA essentially invalidates the FAA in the context of labor disputes.
The Supreme Court’s Ruling
The case before the Supreme Court—Epic Systems Corp. v. Lewis—combined three separate lawsuits involving employees who entered into employment agreements requiring arbitration, but still sought to participate in class-action lawsuits over state and federal employment law claims. The lower federal courts were split in their rulings, and the Supreme Court was asked to resolve this conflict.
Although the FAA generally requires courts to enforce arbitration agreements as written, the employees argued that this obligation is eliminated if an arbitration agreement violates some other federal law, and that their employment agreements violated the NLRA by requiring individualized proceedings. Their employers, however, argued that the FAA protects agreements requiring arbitration from judicial interference, and that the NLRA does not change this requirement.
The majority on the Supreme Court sided with the employers, following their long practice of limiting class actions and favoring arbitration over litigation. The court ruled that arbitration clauses in employment agreements that waive the employees’ right to participate in class actions are lawful and enforceable.
Impact on Employers
The Supreme Court’s ruling only impacts non-unionized employees, and does not affect employees represented by labor unions. As a result of the ruling, employers are now free to include clauses in employment contracts requiring the use of arbitration to resolve wage and overtime claims, and barring class-action lawsuits related to these matters.
Following the Supreme Court’s ruling, the NLRB indicated that it intended to follow the decision. According to the NLRB, it currently has 55 pending cases with allegations that employers violated the NLRA by maintaining or enforcing individual arbitration agreements or policies containing class- and collective-action waivers. The NLRB now intends to quickly resolve those cases in accordance with the Supreme Court’s decision.
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Ticks and Lyme Disease
Lyme disease is a bacterium that’s often carried by mice and other small rodents. The disease can be transmitted to humans if they’re bitten by a tick that previously fed off an infected animal.
Different types of ticks live in the United States and while some can transmit diseases, others are only a nuisance. In general, infected blacklegged ticks can transmit the bacterium that causes Lyme disease.
Symptoms of Lyme disease typically develop within two weeks of a tick bite and can include fevers, chills, swollen lymph nodes, neck stiffness, fatigue, headaches, and joint or muscle aches.
To avoid contracting Lyme disease, do the following:
- Wear light-colored clothing, including long-sleeved shirts and pants when in wooded areas. Tuck pant legs into socks or boots and keep long hair tied back.
- Wash your body and clothing after all outdoor activities.
- Look periodically for ticks if you’ve been outdoors, especially if you’ve been in wooded areas or gardens.
- Remove ticks within 24 hours to greatly reduce the risk of contracting Lyme disease.
- Check your pet’s coat if it’s been in an area known for ticks.
Remember to consult your health care provider as soon as you experience Lyme disease symptoms. If possible, send any ticks that you’ve removed to a public health laboratory in your area. Click here to learn more.
Keeping Mold Out of the Home
A mold problem in the home can cause serious health effects, especially for young children, the elderly, those who suffer from allergies or asthma, and those with prior respiratory conditions. Mold can cause eye irritation, nasal stuffiness, shortness of breath, wheezing and infections in the lungs.
Though most molds grow outdoors, they can get inside a home through open windows and doors, air conditioning systems, pets, clothing and shoes. Try these prevention tips to keep mold out of your home:
- Clean up any water damage or flooding thoroughly and immediately.
- Use a dehumidifier and a wet-dry vacuum to remove water quickly.
- Remove carpeting that can’t be dried out within 48 hours. If your carpet was contaminated by sewer water or a flood, it needs to be replaced.
- Repair basement cracks so that moisture can’t seep in.
- Use a dehumidifier or air conditioner to reduce indoor moisture, especially during humid months. Empty the drip pans in your air conditioner, refrigerator and dehumidifier on a regular basis to prevent water buildup.
- Fix plumbing leaks immediately. Mold will begin to grow within 24 to 48 hours after a leak forms.
Protecting Your Vehicle from Hail
Hail can strike anywhere and at any time, causing major damage to your vehicle. When a hailstorm occurs, take the following precautions to keep you and your vehicle safe:
- Don’t get out of your vehicle if you’re driving during a hailstorm. If you can pull over to the side of the road, do so safely.
- Park your car on an angle so that the hail hits the front of your car. This protects your side and rear windows, which aren’t made of reinforced glass.
- Find covered parking to protect your car, like a parking garage or awning. If you live in a hailstorm-prone area, it may be a good idea to purchase or build a covered parking solution for your home, like a metal canopy or garage.
- Use blankets or a hail car cover. These items can be very effective in protecting vehicles from damage, especially if you’re far away from shelter.
- Locate a body shop that you trust to make any necessary repairs. Discuss the extent of the damage with the body shop and your insurance broker.
Hotel Safety Tips
Hotels provide a home away from home whenever you travel. However, hotels aren’t always safe, and vacationers are at risk of things like break-ins, fires and natural disasters.
The following are some general hotel safety tips to keep in mind to protect yourself from a variety of risks:
- Check reviews for security concerns. Guest reviews can provide information on the area’s crime level and steps the hotel takes to protect guests.
- Use hotels that restrict access to guest floors.
- Check your room lock to confirm it’s working properly. Make sure that the door has a deadbolt and keep it locked whenever you’re in the room.
- Lock away valuable items you won’t be carrying with you in the room’s safe. This can include things like money, jewelry, laptops or other electronics.
- Be wary of people that come to the door claiming to be hotel staff.
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STATE RESOURCES
California Department of Industrial Relations
www.dir.ca.gov/dlse/dlse
WagesAndHours.html
Publications
The DIR has published the following materials regarding wage and hour laws in the state:
Poster
Employers can use this DIR model poster to satisfy their posting requirements.
On April 30, 2018, the California Supreme Court adopted a new test for classifying workers as independent contractors for purposes of the California wage orders. In Dynamex Operations West, Inc. v. Superior Court, the Supreme Court ruled that employers must use a three-part “ABC test” to establish whether a worker may be properly classified as an independent contractor for this purpose.
Worker Classification
Whether a worker is covered by a particular law or is entitled to receive a particular benefit often depends on whether the worker is an employee or an independent contractor. In general, employment laws, labor laws and related tax laws do not apply to independent contractors.
For purposes of federal labor and employment laws, no standard test has emerged to determine the true character of an independent contractor relationship. In fact, employers may have to apply various tests to determine how issues of employment benefits, workers’ compensation, unemployment compensation, wage and hour laws, taxes or protection under Title VII of the Civil Rights Act, the American with Disabilities Act (ADA), and the Family and Medical Leave Act (FMLA) affect their workforces.
In addition, employers should be aware that state and local variations of these tests may apply in certain situations.
California Wage Orders
Several federal laws regulate wage and hour requirements. California law also imposes state wage and hour requirements. When federal and state laws are different, the law that is more favorable to the employee will apply.
The Industrial Welfare Commission (IWC), part of the California Department of Industrial Relations (DIR), established wage orders to enforce and administer California’s wage and hour requirements throughout the state. Because the IWC is no longer in operation, the Division of Labor Standards Enforcement (DLSE) currently enforces the wage orders.
In total, there are 17 California wage orders, plus a minimum wage order, that California employers must comply with. Each wage order covers a separate industry and imposes requirements relating to minimum wages, work hours and basic working conditions (such as meal and rest periods) for California employees.
Overview of Dynamex v. Superior Court
In Dynamex v. Superior Court, the California Supreme Court was asked to determine what standard applies under California law for purposes of determining whether workers should be classified as employees or as independent contractors under the California wage orders. In this case, a group of delivery drivers sued their employer, Dynamex, arguing that the drivers had been misclassified as independent contractors, rather than employees. The delivery drivers claimed that, due to this misclassification, Dynamex violated Wage Order No. 9 (the applicable order governing the transportation industry), as well as various sections of the California Labor Code.
Prior to 2004, drivers working for Dynamex who performed similar pickup and delivery work as the current drivers were classified as employees. In 2004, however, Dynamex adopted a new policy and contractual arrangement under which all drivers are considered independent contractors, rather than employees. Dynamex argued that, in light of the current contractual arrangement, the drivers are properly classified as independent contractors.
The Supreme Court’s ruling—The “ABC Test”
Historically, courts have applied a multifactor balancing test in determining whether a worker is an employee or an independent contractor. However, the California Supreme Court abandoned the traditional balancing test, and instead adopted a new three-part test that California employers must use when determining whether a worker can be classified as an independent contractor for purposes of the wage orders.
This three-part test is commonly referred to as the “ABC test” due to its three factors to consider. Under this test, a worker is properly considered an independent contractor to whom a wage order does not apply only if the employer establishes that all of the following are true:
- That the worker is free from the control and direction of the employer in connection with the performance of the work, both under the contract for the performance of the work and in fact;
- That the worker performs work that is outside the usual course of the employer’s business; and
- That the worker is customarily engaged in an independently established trade, occupation or business of the same nature as the work performed for the employer.
This test generally favors a determination that workers are employees, rather than independent contractors. The ABC test presumes that all workers are employees and allows workers to be classified as independent contractors only if the employer demonstrates that the worker in question satisfies each of the three conditions.
Impact on Employers
Employers that employ independent contractors in California will want to ensure that their workers are properly classified under the new ABC test adopted by this ruling. As a result, these employers should review their employment relationships and contractual arrangements to evaluate the impact that this ruling may have on their business.
Employers in California should also keep in mind that this ruling applies for purposes of the California wage orders only. Other existing worker classification tests continue to apply for federal law purposes.
More Information
Contact Scurich Insurance for more information on wage and hour laws in California.
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On April 30, 2018, the Occupational Safety and Health Administration (OSHA) announced it will require all establishments affected by the electronic reporting rule to submit their 2017 data to OSHA by July 1, 2018.
This announcement clarifies the requirement for establishments in states with an OSHA-approved plan. These establishments must submit electronic reports, regardless of whether the state has ratified or incorporated the electronic reporting rule into its OSHA state plan.
Establishments in all states, including those with an OSHA-approved state plan, should prepare to submit electronic reports by July 1, 2018. Affected establishments can accomplish this by:
- Becoming familiar with the requirements in the electronic reporting rule; and
- Transitioning their OSHA records to an electronic format approved by the Injury Tracking Application (ITA).
OSHA Electronic Reporting
OSHA’s electronic reporting rule was issued in 2016. The rule requires establishments to report data from their injury and illness records to OSHA electronically if they:
- Are already required to create and maintain OSHA injury and illness records and have 250 or more employees;
- Have between 20 and 249 employees and belong to a high-risk industry; or
- Receive a specific request from OSHA to create, maintain and submit electronic records, even if they would otherwise be exempt from OSHA recordkeeping requirements.
The electronic reporting rule applies to establishments, not employers. An employer may have several worksites or establishments. In these situations, some establishments may be affected while others are not.
To determine whether an establishment is affected, employers must determine each establishment’s peak employment during the calendar year. During this determination, employers must count every individual that worked at that establishment, regardless of whether he or she worked full-time, part-time, or was a temporary or seasonal worker.
OSHA-approved State Plans
The final rule required OSHA-approved state plans to adopt the electronic rule or “substantially identical” requirements within six months of the final rule’s publication date.
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All Employers |
| California
Maryland
Minnesota
South Carolina
Utah
Washington
Wyoming |
|
Public Employers |
| Illinois
Maine
New Jersey
New York |
This means that OSHA-approved state plans have the authority to adopt reporting requirements that go above and beyond what is required by the federal rule. For this reason, establishments located in OSHA-approved state plan jurisdictions should consult with their local OSHA offices to make sure they are satisfying all electronic reporting requirements.
The OSHA-approved state plans shown on this map have not yet adopted the requirement to submit injury and illness reports electronically.
As a result, establishments in these states were not required to submit their 2016 data through the reporting website in 2017. However, OSHA has now clarified that they must submit their 2017 data in 2018.
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You’ve probably heard a lot about opioids lately, and for good reason—the CDC estimates that more than 115 people die from opioid overdoses every day.
One of the biggest reasons for widespread misuse of these drugs is that they’re both effective at short-term pain management and highly addictive.
Luckily, to combat what some now call the “opioid epidemic,” researchers from the American College of Physicians (ACP) have published guidelines that promote alternative noninvasive and therapy-based pain treatments.
Although these guidelines recommend the use of opioids and other medications as a last resort, therapeutic treatments may help strengthen your body and help you heal naturally. However, you should always consult your physician for the best way to treat your pain.
Here are some common pain treatments based on the ACP’s guidelines:
- Use heat or ice packs to reduce pain and swelling. Regulating how much blood flows into affected areas can be a simple and effective way to reduce pain.
- Avoid overexertion. Rest will allow any injured tissue and nerve roots to begin to heal. However, too much rest can cause your muscles to weaken.
- Exercise when possible. Although exercising to relieve pain may sound strange, even low-intensity activity like stretching or walking can help strengthen your muscles and relieve pain. Consult with a health care or fitness professional to customize a safe and effective exercise routine for any severe or chronic pain.
- Engage in relaxing activities such as yoga and meditation. Research has shown that the mental aspect of physical pain can cause it to be much more intense than it would be otherwise.
- Explore your options. Talk with your doctor about alternative pain relievers and anti-inflammatory medications. You could also discuss when to use or how to wean off strong narcotics. Opioids should only be considered as a last resort.
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