WORKERS’ COMPENSATION/ MEDICAL MARIJUANA It’s a Whole New Game Featured Speakers: Michael Semanie|Nicholas Mirowsky Moderated by: Steven Gibson

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Introductions Michael Semanie Nick Mirowsky Steven Gibson Attorney, Partner Killgore Pearlman Stamp Ornstein & Squires President Drug Free Services, Inc. Representing Total Compliance Network President Dealer Risk Services, Inc.

What Has Changed Florida Office of Insurance Regulation approved a 14.5% rate increase in Workers’ Compensation Passage of Medical Marijuana OSHA Rulings for Post-Accident Drug Testing Increased Potential for Employment Claims

Market in Limbo November 23, 2016—Leon Country Circuit court judge ruled WC rate increase violated Florida’s Sunshine Law November 28, 2016—OIR Submits Notice of Appeal 1st District Court Approved stay; pending appeal Dec. 2016—Rate in Effect…For Now

The Cost of Workers’ Comp Rate Increase of Almost 15% Pressure on Carriers to Reduce Dividend Offerings Uncertainty regarding rate increase Increased Claim Costs/Potential for MOD Increases 2016 FL Supreme Court decision- cap on attorney fees ruled unconstitutional Castellanos Case (April 2016) Extension of Temporary Total Disability Benefits from 104 Weeks to 260 Weeks Westphal Case (June 2016)

OSHA Post-Accident Drug Testing OSHA Ruling—OSHA believes post-injury drug testing policies deter proper reporting Conflicting requirements with blanket post- accident drug testing—OSHA vs. Florida DFWP FAQ Who takes precedence: OSHA or Florida DFWP?

Drug-Free Workplace Policy The General Principle: Drug testing may be used to evaluate the root causes of workplace injuries and illness if appropriate, but not as discipline FAQs Do we have to accept a Medical Marijuana Prescription? How do we update our post-accident drug testing procedures to make sure that we comply with the ruling?

DFWP Policy Amendment This company is in agreement with the Federal Government that marijuana is an illegal controlled substance and will not recognize medical marijuana as a legitimate prescription. A positive test result for marijuana will be treated the same as any other positive test result, even if an employee or applicant has a medical marijuana prescription.

Wrongful Termination Claims Have Counsel Review and Update Employee Handbook Be Consistent Establish disciplinary/termination guidelines Recognize ADA/FMLA guidelines FAQs If an employee/applicant has a prescription for Medical Marijuana, can we not fire or hire that employee/applicant? Can we keep an employee who fails a drug test for marijuana who has a medical marijuana prescription and fire an employee who does not have a prescription and/or fails for any other substance?

Review What Should We Do? Increase Loss Control Efforts Initiate Claims Advocacy Amend Drug-Free Workplace Guidelines to Address Medical Marijuana Have Counsel Review/Update Employee Handbook with Regards to Drug Policies Develop Specific Employee Disciplinary/Termination Guidelines and Review with Counsel

Questions, Comments, Concerns? Thank You for Your Attendance! www.DealerRiskServices.com