Best Practices with Employee Reassignment

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Employee reassignments have gained new fame by joining the “quiet” trend. 

This trend already includes quiet quitting, quiet vacationing, quiet hiring and quiet firing. The Wall Street Journal coined the term”quiet cutting” to describe what happens when employers reassign rather than terminate an employee.

According to Inc. magazine, what you call it isn’t nearly as important as your reasons behind the move. The effectiveness of reassigning an employee depends on your motivation.

Let’s examine the wrong reasons for reassigning an employee, the right reasons and tips for reassignment.

The wrong reasons

Companies sometimes reassign employees in hopes of getting them to resign. This tactic can reduce the administrative challenges of performance improvement plans, unemployment expenses and severance pay. However, Inc. notes that it can create more significant problems, including decreased morale, increased turnover, a toxic workplace culture and lawsuits.

Moving an employee to a less desirable or ill-fitting role can negatively affect performance and surrounding colleagues. The downstream effects can even drive good employees out of your company.

When you add up organizational reputation, workplace culture, performance loss, client risk and potential legal fees, avoiding difficult conversations and terminations is often more costly than administrative headaches and a severance package.

Moreover, Inc. notes it’s not an effective way of dealing with ineffective employees. When someone is wrong for your organization, it’s better to terminate. According to the International Risk Management Institute, warning signs for termination include:

  • Negative attitude
  • Bad work ethic
  • Poor performance
  • Sudden declines in productivity
  • Regular tardiness or unexcused absences
  • Mistreatment of coworkers or clients

When employees fitting these descriptors are reassigned, it’s the motive that’s flawed. In these cases, reassignment will postpone the main issue. It can also cause additional problems

The right reasons

When done correctly, reassigning employees allows you to retain valuable talent. When a good employee is in the wrong role, reassignment can be positive for the employee and the organization.

The HR management software firm Eddy highlights situations where reassignment makes sense. Examples include:

  • Eliminating an employee’s position for business or market reasons
  • Evolving job responsibilities that no longer match the employee’s job description or skill set
  • Needing to permanently fill their role due to hardships stemming from a leave or accommodation request (in this situation, consult with counsel to ensure compliance with all applicable employment laws)
  • Relocation or other geographic issues

Inc. notes that skills can be taught more easily than cultural fit, hard work, commitment, positive influences on colleagues and other intangible qualities. These traits define the employees you hope to find and retain.

In these cases, there are several advantages of reassignment, according to Eddy:

  • Retaining good employees who need to move from their current role
  • Reducing costs related to recruiting, hiring, onboarding and training new employees
  • Improving workplace culture by demonstrating investment in talent
  • Caring for employees by more effectively navigating layoffs and increasing retention
Tips for employee reassignment

Even with good intentions, an employee may not be interested in a new role when being reassigned. Offer them a choice between reassignment and termination. Provide severance if you can afford it.

When reassigning an employee, start by explaining your reasons for the move. Employees understand factors such as changing market forces, department reallocations and skill mismatches. And they will appreciate your transparency.

Highlight the opportunities for personal and professional growth. Explain your plan for transitional support and training.

Set performance expectations for the new role. A reassignment is typically not a promotion, but it shouldn’t feel like a punishment.

Give the employee time to assess the proposed change. Listen to their concerns about the reassignment. When possible, address their worries with a step-by-step plan. Seeing details and feeling support will reduce their fears about change.

Need more information?

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


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

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

Copyright © 2024 Applied Systems, Inc. All rights reserved.

Legal Alert: IRS Adjusts Health Flexible Spending Account and Other Benefit Limits for 2025

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On October 22, 2024 the IRS released updates effecting FSAs and other benefit limits in 2025.

On October 22, 2024, the Internal Revenue Service (IRS) released Revenue Procedure 2024-40, which increases the health flexible spending account (FSA) salary reduction contribution limit to $3,300 for plan years beginning in 2025, an increase of $100 from 2024.  Thus, for health FSAs with a carryover feature, the maximum carryover amount is $660 (20% of the $3,300 salary reduction limit) for plan years beginning in 2025. When carrying over funds from 2024 to 2025, 20% of the $3,200 salary reduction limit for 2024 is $640.

The Revenue Procedure also contains the cost-of-living adjustments that apply to dollar limitations in certain other sections of the Internal Revenue Code. 

Qualified Commuter Parking and Mass Transit Pass Monthly Limit

For 2025, the monthly limits for qualified parking and mass transit are increased to $325 each, an increase of $10 from 2024.

Adoption Assistance Tax Credit Increase

For 2025, the credit allowed for adoption of a child is $17,280 (up $470 from 2024). The credit begins to phase out for taxpayers with modified adjusted gross income in excess of $259,190 (up $7,040 from 2024) and is completely phased out for taxpayers with modified adjusted gross income of $299,190 or more (up $7,040 from 2024).

Qualified Small Employer Health Reimbursement Arrangement (QSEHRA) Increase

For 2025, reimbursements under a QSEHRA cannot exceed $6,350 (single) / $12,800 (family), an increase of $200 (single) / $350 (family) from 2024.

Reminder: 2025 HSA Contribution Limits and HDHP Deductible and Out-of-Pocket Limits

Earlier this year, in Rev. Proc. 2024-25, the IRS announced the inflation-adjusted amounts for HSAs and high-deductible health plans (HDHPs).

2025 (single/family)2024 (single/family)
Annual HSA Contribution Limit$4,300 / $8,550$4,150 / $8,300
Minimum Annual HDHP Deductible$1,650 / $3,300$1,600 / $3,200
Maximum Out-of-Pocket for HDHP$8,300 / $16,600$8,050 / $16,100

The ACA’s out-of-pocket limits for in-network essential health benefits have also been announced and have decreased for 2025. Note that all non-grandfathered group health plans must contain an embedded individual out-of-pocket limit if the family out-of-pocket limit is above $9,200 (2025 plan years). Exceptions to the ACA’s out-of-pocket limit rule are available for certain small group plans eligible for transition relief (referred to as “Grandmothered” plans). While historically CMS has renewed the transition relief for Grandmothered plans each year, it announced in March 2022 that the transition relief will remain in effect until it announces that all such coverage must come into compliance with the specified requirements.

2025 (single/family)2024 (single/family)
ACA Maximum Out-of-Pocket$9,200 / $18,400$9,450 / $18,900
ACA Reporting Penalties (Forms 1094-B, 1095-B, 1094-C, 1095-C)

The table below describes late filing penalties for ACA reporting.  The 2026 penalty is for returns filed in 2026 for calendar year 2025, and the 2025 penalty is for returns filed in 2025 for calendar year 2024.  Note that failure to issue a Form 1095-C when required may result in two penalties, as the IRS and the employee are each entitled to receive a copy.

Penalty Description2026 Penalty2025 Penalty
Failure to file an information return or provide a payee statement$340 for each return with respect to which a failure occurs$330 for each return with respect to which a failure occurs
Annual penalty limit for non-willful failures$4,098,500$3,978,000
Lower limit for entities with gross receipts not exceeding $5M$1,366,000$1,329,000
Failures corrected within 30 days of required filing date$60$60
Annual penalty limit when corrected within 30 days$683,000$664,500
Lower limit for entities with gross receipts not exceeding $5M when corrected within 30 days$239,000$232,500
Failures corrected by August 1$130$130
Annual penalty limit when corrected by August 1$2,049,000$1,993,500
Lower limit for entities with gross receipts not exceeding $5M when corrected by August 1$683,000$664,500
Failure to file an information return or provide a payee statement due to intentional disregard$680 for each return with respect to which a failure occurs (no cap)$660 for each return with respect to which a failure occurs (no cap)
More Information

For additional information, contact our Employee Benefits team.


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

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

© 2024 Barrow Weatherhead Lent LLP. All Rights Reserved.

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

Understanding Contract Surety Bonds

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In the realm of construction and development, contract surety bonds are indispensable tools that ensure the successful completion of projects.  

Contract surety bonds can be categorized into four primary types:

  1. The Bid Bond – ensures that a bidder will enter into the contract and provide the necessary performance and payment bonds if awarded the contract.
  2. The Performance Bond – guarantees the project’s completion according to the contract’s terms and conditions.
  3. The Labor & Material Payment Bond – ensures that subcontractors and suppliers are compensated for their work and materials.
  4. The Subdivision Bond – guarantees that developers will complete improvements in line with local government specifications.

Underwriting contract bonds is a meticulous process based on three critical factors:

  1. Character – involves evaluating the business and personal background of the company principals, including any prior bankruptcies. 
  2. Capacity – assesses the organization and key personnel, as well as the type, size, and location of previously completed projects. 
  3. Capital – reviews fiscal year-end financial statements prepared by a third-party financial professional.

For contracts generally valued at $1 million or less, the underwriting process is simplified. This transactional bond underwriting relies on the personal credit history of the construction company principals, without requiring company financials. The bond rate typically ranges from 2.5% to 3%, and personal guarantees are required from owners and their spouses. This process can apply to a single contract or multiple contracts totaling $1 million or less.

For larger contracts, a more detailed underwriting process is followed. The underwriting process involves an evaluation of character, capacity, and capital. It includes a detailed assessment of the business and personal background of company principals, an in-depth evaluation of the organization and key personnel, and a comprehensive review of financial statements, including the quality of presentation and the basis of revenue recognition.

Specific financial analysis factors under capital underwriting considerations include the company’s history of profitability, working capital, corporate equity, total debt to equity, surety credit limits, and the availability of bank credit.

The surety industry plays a vital role in the construction sector, emphasizing its importance in risk management and insurance. A thorough understanding of contract surety bonds, their types, and the detailed underwriting processes involved is essential for anyone involved in construction and development projects, ensuring they are well-equipped to navigate the complexities of surety bonds.

Ron Metcho is a surety specialist at OneGroup with over 40 years of experience, and serves as a resource to organizations for all surety-specific questions and concerns. OneGroup has a team of specialists, dedicated to risk management and construction industry specific insurance issues. Our team takes great pride in being at the forefront of industry trends and assisting others where we can. You can find out more about us here.

For more information please contact Brett Findlay, Senior Vice President Business Risk Specialist at (315) 280-6376 or BFindlay@OneGroup.com 


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

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

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Welcome Melissa Zornes to OneGroup!

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Get to know the latest addition to our leadership team.

We are excited to share that Melissa Zornes has joined OneGroup as our new Senior Vice President and Employee Benefits Practice Leader.

Melissa brings two decades of experience and extensive knowledge of leading diverse teams, employee benefits, and organizations to OneGroup. Melissa has held numerous leadership positions within the insurance industry, demonstrating a collaborative approach that has driven positive company performance and innovation.

As Senior Vice President, Employee Benefits Practice Leader at OneGroup, Melissa is leading the expansion of the employee benefits division across the company’s entire footprint. She is developing and implementing a multi-year strategic plan to grow the division both in size and expertise. Melissa is dedicated to making a positive impact within the company, benefiting its clients, team, and the broader community.

Melissa Zornes, SVP Employee Benefits Practice Leader

Melissa Zornes, SVP Employee Benefits Pratice Leader

“We are thrilled to have Melissa join our team,” said Pierre Morrisseau, Chief Executive Officer at OneGroup. “Melissa’s experience and leadership are invaluable as we expand and enhance our employee benefits offerings. Her guidance will elevate our capabilities and enrich our collective expertise. We are on the brink of an exciting new chapter, ready to deliver outstanding service to our employees and clients with unwavering dedication and excellence.”

Melissa holds an MBA from Georgia College and State University and is a board member of the Applied Client Network.

For more information

If you’re interested in connecting with Melissa, she can be reached at MZornes@OneGroup.com. If you would like to learn more about health and benefits solutions, reach out to our Employee Benefits team.


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

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

Preparing for Medicare Part D Changes

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Updates from OneGroup’s Medicare Team 

As we approach Medicare Annual Open Enrollment (October 15 – December 7), it’s important to be aware of potential changes that could impact your healthcare coverage.  

What is Medicare Part D? 

Medicare Part D assists with the cost of prescription drugs. It is available to anyone who has Medicare and can be added to Original Medicare, some Medicare Cost Plans, some Medicare Private Fee-for-Service Plans, and Medicare Medical Savings Account Plans. Medicare Part D is offered through private insurance carriers that follow Medicare guidelines. Each plan has a drug coverage list (formulary) that can vary by carrier and year. 

Anticipated Changes 

This year, we expect to see one of the most substantial changes to Part D in recent years. These changes could impact many aspects of your prescription drug coverage, including monthly premiums, deductibles, and drug copays. 

Stay Ahead of Changes 

Our Medicare team is dedicated to helping you navigate these changes. We can price your medication list, tell you what your cost will be, and confirm if the Part D coverage you have is still the best option for 2025.   

For more information

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


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

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

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

How First-Time Managers Impact Organizational Success

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Most first-time managers are not prepared for their new role.

They often are either stressed and anxious but afraid to show it or overconfident and dismissive of their role as a leader. And their struggles often translate to lower-performing teams and higher organizational turnover.

That ominous news comes from the human resources association SHRM. However, strategies exist to reverse this trend. Mentorships, training and feedback can give new managers the resources they need to succeed.

Identify a talent pipeline

According to Gallup, organizations promote the wrong person to a managerial position more than 80% of the time. Inc. magazine notes that employees most often get promoted to a managerial position because of tenure or their success as an individual contributor.

The challenge is neither of these factors translates to how an individual will perform as a manager. Being with an organization for a long time doesn’t mean employees have adequate managerial skills. And many supervisors struggle with delegating tasks if they have spent their careers as individual contributors.

Instead, organizations must identify employees with leadership skills and provide them with mentoring, training and feedback. Freelance workers who believe their rights have been violated may now file a complaint with the New York State Attorney General. 

Mentoring

First-time managers often fear making mistakes or looking foolish in front of their employees. Mentorships provide a safe space for managers to ask questions and learn about their new roles and responsibilities.

Internal mentors understand your workplace and may offer critical insights into managerial expectations, team dynamics and office culture. External mentors may provide specific expertise and fresh perspectives.

Managing is a skill that needs to be continually developed. Find a mentor who can regularly meet with a first-time manager, provide evenhanded guidance and be a sounding board as they grow. According to Inc., managers should learn to:

  • Communicate an inspiring mission and vision
  • Engage employees through collaboration and innovation
  • Listen and respond to employees’ needs
  • Give employees the tools to succeed and hold them accountable for reaching goals
  • Model the behaviors they want to see in employees, including being respectful and handling pressure
  • Demonstrate trust, transparency and respect
  • Put productivity and team goals ahead of workplace politics
Training

In addition to mentorships, training is crucial. According to Gallup, only 10% of people have a natural aptitude for managing employees.

Too few first-time managers receive formal training. And when they do, it’s often inadequate for the longterm, reports SHRM.

This lack of training creates a stressful transition for managers and their teams.

Observing and speaking with good managers is a start. But Inc. notes first-time managers also need leadership training, detailed processes and time to practice what they’ve learned.

Training options include one-on-one coaching, group sessions, role-playing classes and online courses. Potential training topics include:

  • Clearly communicating goals and expectations
  • Managing time and delegating responsibilities
  • Running meetings and performance reviews
  • Enhancing group and interpersonal communications
  • Defusing workplace conflicts
  • Coaching employees, from struggling workers to high performers
  • Providing constructive and motivational feedback

Training shouldn’t be a one-off effort. Managing is an ongoing skill that needs to be cultivated, updated and adapted to changing circumstances. Providing various learning formats and topics throughout the year supports continual learning and demonstrates a commitment to managerial development.

Feedback

According to Gallup, managers don’t receive proper feedback on their performance. This issue can lead to a disconnect between first-time managers and their employees in key areas like response times, approachability, motivation and recognition.

Forbes reports only 50% of employees think their supervisor cares about their well-being. Even worse, close to 33% of employees say speaking with their manager causes the most stress in their day. For these workers, tension with supervisors tops issues such as child care, financial challenges, commuting and work deadlines.

Feedback from direct supervisors and company leaders can support first-time managers through missteps. As long as errors aren’t egregious, discriminatory or harassing, they are essential to the learning process. Constructive guidance instills a growth mindset and models psychological safety for managers and their teams.

Providing feedback to managers also teaches them how to guide their employees. According to the Harvard Business Review, employees want frequent and constructive feedback. Teaching managers how, when and why to provide input can create cascading benefits throughout your organization.

Discover actionable support

Your managers are crucial to individual and organizational success. According to the management consulting company DDI, 57% of employees have left a job because of their manager. Another 32% have considered it.

For more information on fostering and supporting first-time managers, talk to your benefits adviser. They can help you explore opportunities to implement or improve mentorships, training programs and feedback policies for your management talent.

Need more information?

For more information on fostering and supporting first-time managers, contact HR Consulting at hrconsulting@onegroup.com. They can help you explore opportunities to implement or improve mentorships, training programs and feedback policies for your management talent.


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

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

Copyright © 2024 Applied Systems, Inc. All rights reserved.

Hurricane Resources

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Filing a claim and other hurricane resources.

Our thoughts are with our teams, clients, and community in Florida as Hurricane Milton has impacted the region. We are deeply thankful for all the first responders and everyone working tirelessly to help those in need during this challenging time.

For emergency resources and updates, visit FEMA’s Hurricane Milton page.

In the event that there is any damage to your property, please call your carrier directly. For a complete list of our carriers in Florida and their phone numbers to file a claim, click here.

In the event that you need to report a claim, please read the tips below:

  • Locate you declarations page for each of your insurance policies. (The first page of your policy that usually shows the policy number and effective dates.)
  • If damage occurs, take photos.
  • Contact your carrier or insurance agent to file a claim as soon as possible.
  • Save the list of carriers and phone numbers to file a claim to have on hand.
WHAT YOU CAN DO
WEATHER CENTER
EMERGENCY RESOURCES

We understand the stress and uncertainty that comes with severe weather events. Our thoughts are with all those who may be affected by Hurricane Milton. If you have any questions, please call one of our Florida locations.


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

Navigating the Changes to New York’s Workers’ Compensation Experience MOD

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Insights from Our Recent Risk Management Webinar 

To effectively navigate the ever-evolving landscape of workers’ compensation in New York State, it’s crucial to understand the changes to the state’s Experience Modification Factor (MOD). In our recent Risk Management 101 webinar, Megan Coville, Director of OneGroup’s Risk Management Department, provided a comprehensive overview of these changes and their impact. 

What is an Experience MOD? 

The MOD is a critical metric that measures safety performance and claims management. Essentially, a MOD is a “safety score” that compares expected loss rates to actual losses over a three-year period. This calculation can significantly impact workers’ compensation premiums, with higher MODs leading to higher costs. 

Key Changes 

One of the recent key changes was New York’s departure from the National Council for Compensation Insurance (NCCI) in 2022. The state has now developed its own equation for calculating the MOD, focusing on New York-specific class codes and experience loss rates. This shift aims to better reflect the unique risks and challenges faced by businesses operating within the state. Understanding the split point, a variable factor that determines how claims are weighted in the MOD calculation, is also crucial. 

Effectively Manage Your MOD 

Prevention and proactive risk management strategies are essential to control the experience MOD. This includes knowing industry-specific exposures, reviewing data, and implementing measures to mitigate risks like slip and falls, ergonomic issues, and overexertion. Timely reporting and documentation of claims, as well as effective return-to-work programs, can also help maintain a low MOD and avoid premium increases. 

Ultimately, it’s important to regularly review your workers’ compensation claims and MOD status. By understanding and adapting to these changes, you can better manage your workers’ compensation costs and maintain a safer workplace.  

For more information or to discuss how these changes impact your business, please reach out to OneGroup. Our specialists are here to help you navigate the complexities of New York’s workers’ compensation system and ensure you’re making informed decisions. Contact us today to learn more! 


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

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

Warehouse Safety

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Warehouses can be dangerous places. Speed and efficiency are vital, which means moving vehicles, heavy foot traffic and goods flowing in and out.

Your warehouse employees can easily fall victim to injuries. Practicing safe habits and knowing what dangers to avoid will keep your employees out of harm’s way and your warehouse safe.

Keeping workers safe

Your goal as the business owner is to provide a workplace free of injuries and accidents.

The first step is to set a minimum safety standard for all practices and operations. By setting clear minimum safety standards, you are actively working toward preventing injuries and illnesses and reinforcing that safety is the priority.

Employees should always be aware of their surroundings. Train them on safety during onboarding and periodically after that to remind them of the safe practices they learned upon hiring.

Warehouse supervisors and managers should ensure safety procedures are posted clearly near equipment and hazardous areas. These postings provide visual reminders of the dangers associated with workers’ jobs and the safety precautions they should take to avoid injury.

Hazards

Warehouses are full of hazards, some more obvious than others. Awareness of common hazards helps keep employees safe and prevent damage to products.

Warehouse hazards that need particular attention are:

  • Slips, trips and falls: Wet floors, oily spills, ice, mud, clutter and poor visibility all contribute to slipping hazards. An employee can also fall if they climb a rack or get on a forklift to retrieve a product. Provide employees with fall protection whenever they are working more than 4 feet off the ground.
  • Forklifts: Employees are severely injured or killed every year while operating forklifts. Turnovers account for a high percentage of the fatalities.
  • Loading docks: A person can get injured if a forklift runs off a dock. They can also get hit by falling objects or moving equipment. 
  • Conveyors: Workers can get caught in pinch points or hit by falling products. They can also sustain injuries from using repetitive motions.

Equipment hazards

Heavy equipment such as forklifts, hydraulic dollies and hand jacks should be used with precision and precaution, and only after proper training. Below are some important safety practices for equipment:

  • Train, evaluate and certify all operators to ensure they can operate forklifts safely.
  • Properly maintain haulage equipment, including tires.
  • Before using a forklift, examine it for hazardous conditions that would make it unsafe to operate.
  • Maintain sufficient clearances for aisles, loading docks and passages where forklifts are used.
  • Ensure adequate ventilation to keep noxious gases from engine exhaust below acceptable limits. You can do this by opening doors and windows or using a ventilation system. 
  • Don’t handle loads that are heavier than the weight capacity of a forklift.
  • Watch out for pedestrians and other vehicles, particularly around aisles.
  • Use lift trucks with reinforced bumpers.
  • Make sure any accessories you use are compatible with the equipment.
  • Report, tag as “Out of Service” and remove defective equipment from service until it’s repaired.
  • Test equipment controls and functionalities before starting a job.

Electrical hazards

Electrical tools, cords and equipment are integral parts of the warehouse floor, and all pose serious threats if handled carelessly. Enhance electrical safety at your warehouse by addressing the following areas of concern:

  • Use appropriate grounding. Ensure all electronic equipment is appropriately grounded. This will decrease the risks of electrical shocks. Provide ground fault circuit interrupters for receptacle outlets. Also, make sure power cords are not blocking aisles or walkways to prevent trips and falls.
  • Maintain optimal condition. All electrical equipment should be in optimal condition. Outlets and cords should be in good state with no exposed or frayed wires. Regularly inspect electrical tools with preliminary checks and appropriate tests. Carry out periodic preventive maintenance and look for visible signs of damage or flaws. Visual inspection is one of the most basic steps to ensure electrical safety.
  • Avoid water. This may seem obvious, but you should keep electrical equipment away from water. Completely power down equipment when not in use, during service and during cleaning. Areas surrounding electrical cords and equipment hold high potential for electrical hazards. Keep these areas clean and dry. Keep materials such as metals and water out of these areas as an added precaution.
  • Invest in training. Electrical safety training is one of the most important steps any warehouse manager can take to safeguard the facility.

Chemical hazards

Chemicals can be dangerous. Some chemicals present risks anytime you use them, while others are only dangerous if handled improperly. Substances that start relatively safe can become hazardous over time. For example, ether can degrade into peroxide after it’s been stored for about a year. And peroxide is explosive.

Every organization that uses or stores chemicals should have a control system. All containers should be labeled with their contents and expiration dates.

You also need a material safety data sheet for every chemical you use. Train employees who handle these materials on proper use, storage and disposal. All employees need to know what to do in the event of a spill, a chemical burn or another accident.

Safety and training

Safe warehouses continually train employees on safety precautions and protocols. Include regular, frequent updates and refresher courses in your training program. And make preventing unsafe behaviors your No. 1 priority.

Proper handling/lifting

Handling materials, whether by powered equipment or manually, can cause injuries to hands, fingers, feet and toes. And improper lifting or overexertion can lead to back injuries.

Whether employees use power equipment or their own bodies to move materials, they should obey these handling and lifting safety rules:

  • Make preparation the first step. Check the load to decide how best to move it. Check the route to make sure there are no obstacles in the way. And check if there’s space for the load at its destination.
  • Always use safe lifting techniques. Use your legs and keep your back in a natural position while lifting.
  • When carrying objects, be sure you can see over the load.
  • Don’t twist while carrying a load. Instead, shift your feet and take small steps in the direction you want to turn.
  • When using material-handling equipment, follow proper operating procedures.
  • When using a hand truck or pallet jack, load heavy objects on the bottom and secure bulky or awkward items.
  • Push, rather than pull, manual material handling equipment whenever possible. And lean in the direction you’re going.

Personal protective equipment

Personal protective equipment (PPE) refers to clothing and equipment meant to ensure the safety of employees working in a warehouse environment. Common PPE for warehouse workers includes:

  • Hard hats
  • High-visibility safety jackets
  • Safety goggles
  • Warehouse safety boots with steel toe caps
  • Overalls
  • Safety gloves

These items can vary depending on the work environment.

Be sure to have spare PPE readily available for visitors and infrequent employees, as well as spares for regular employees.

Communication and signage

Safety signs in your warehouse are highly important to protect your workers and visitors from injury or even death. If you implement effective, clear visual communication, you’ll likely experience fewer accidents and injuries, increased efficiency and safer behavior throughout your facility.

Signage also allows you to communicate with workers even when a supervisor isn’t immediately present.

Your safety signage must be professionally manufactured, compliant with safety regulations and readable by all workers. And you must post your signage in the right locations, including entrances, exits and whererever equipment is located or moved to.

Security

Maintaining security at your warehouse is important if you want to keep your employees and the facility safe. Due to high volumes of inventory, warehouses are often at high risk for burglary and theft, especially if the inventory is highly valuable.

Risks to the security of your warehouse can be both internal and external sources. Internal security threats can come from employees and third parties hired by the business, while external security threats would involve anyone else who enters the warehouse without authorization.

To reduce your risks, consider the following:

Visitor sign-in procedures. Establish a visitor registration process to identify everyone who enters the warehouse. Don’t allow visitors or delivery drivers to go through the warehouse unaccompanied.

Building access. Install a barrier such as a fence around the exterior yard of the warehouse. Keep the gate locked when the warehouse is closed. If necessary, risk managers may allow access to authorized employees.

Activate alarms on all doors, including emergency exit doors, when the warehouse is closed.

Electronic security and surveillance systems. Use an electronic system to control access to high-value rooms and cages. Your access control system should provide an audit trail of who enters, when and for how long.

Install a video surveillance system to record activity in high-value cages and rooms. Place your cameras to view entrance points as well as interior areas.

Install intruder alarms to enable a fast and coordinated response in the event of theft or vandalism.

Employee screening. Employee theft can create staggering losses within warehouses. Conduct thorough background checks of potential employees before hiring, and pay attention to any accounts of theft or unexplained warehouse job losses.

Set up an anonymous reporting system. This will allow employees to report a coworker they believe is stealing without fear of repercussion.

Maintain a safe, productive warehouse

A safe warehouse is an efficient and productive warehouse. Provide training on hazard awareness, safety inspections and safety measures. This can help maintain a safe and secure working environment.

Businesses in the warehousing industry need insurance with adequate coverage for various liabilities. Contact our Risk Management team to learn more about essential policies and risk management strategies for your warehouse.


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

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

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

Prepare for Medicare’s Annual Enrollment Period

Happy family spending leisure time in their garden.

Did You Know? Medicare’s Annual Enrollment Period (AEP) Begins on October 15th

Are you or a loved one enrolled in Medicare? It’s important to be prepared for the Annual Enrollment Period (AEP), which begins on October 15th and runs through December 7th. This is a key time for Medicare beneficiaries to review and update their plans to ensure they have the best coverage.

What is AEP?

The Annual Enrollment Period is when you can:

  • Enroll in or switch Medicare Advantage Plans (Part C).
  • Join, switch, or drop Medicare Prescription Drug Plans (Part D).
  • Return to Original Medicare (Part A and Part B) from a Medicare Advantage Plan.
How to Prepare:
  • Review Your Coverage: Check if your current plan still meets your needs, considering any changes in your health or medications.
  • Compare Plans: Look at the options available in your area, focusing on coverage, costs, and any changes for the upcoming year.
  • Check Provider Networks: Make sure your preferred doctors, hospitals, and pharmacies are in-network.
  • Evaluate Prescription Coverage: Ensure your medications are covered and check for any changes in co-pays or coverage.
  • Seek Advice: Reach out to Medicare professionals at OneGroup for personalized guidance and informed decisions.
What to Expect: 

During AEP, you might receive a lot of information from different Medicare plans. It can be overwhelming, but don’t worry! Here’s what you can expect:

  • Plan Notices: Your current plan will send you an Annual Notice of Change (ANOC) detailing any changes for the upcoming year.
  • Marketing Materials: You’ll likely receive brochures and flyers from various Medicare plans highlighting their benefits.
  • Increased Communication: Expect more emails, calls, and advertisements about Medicare plans. Use this information to compare and make informed decisions.

By following these steps and knowing what to expect, you can confidently navigate the AEP and secure the best coverage for your needs. We’re here to help you every step of the way.

For more information

To learn more about our Medicare solutions and receive complimentary help, click here.


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

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

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