Rules Freeze Affects Risk Management, Benefits

A vast array of proposed rules and regulations that have not been officially adopted or have been recently adopted but not implemented, are now subject to White House review before further action.

A memo issued to federal agencies immediately after President Barack Obama occupied the White House on January 20 freezes implementation of all pending and recently issued regulations, some with risk management and employee benefit implications.

A vast array of proposed rules and regulations that have not been officially adopted or have been recently adopted but not implemented, are now subject to White House review before further action.

For example, the memo signed by Obama’s chief of staff, Rahm Emanuel, halts implementation of a proposed rule mandating how the U.S. Occupational Safety and Health Administration and the U.S. Mine Safety and Health Administration conduct risk assessments of toxic substances and hazardous chemicals in the workplace.

Democrats and labor charge the rule would weaken worksite regulation, and they say President George W. Bush’s administration hurried to implement it before he vacated the White House.

The U.S. Chamber of Commerce supports the measure, which was posted in the August 29 Federal Register. The chamber argues it would improve safety by standardizing analysis of risks posed by chemicals and toxins.
 
Another proposed regulation that could be affected would require that contracts between employee benefit plans and plan service providers disclose any conflict of interests the service providers may have and the reasonableness of their fees. It appeared in the December 13, 2007, Federal Register, but a final rule was never implemented.

An interim Coast Guard rule that would have been effective March 17 could also be affected. It seeks to prevent pollution from ships by amending regulations for equipment used to reduce oil discharges. It was posted in the January 16, 2009, Federal Register.

Filed by Roberto Ceniceros of Business Insurance, a sister publication of Workforce Management. To comment, e-mail editors@workforce.com.

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