Best
Practices for Workers Compensation
This page will include tips, tools, and practices that will help
you to manage your workers compensation program. These are best
practices that we’ve taken from the archives of topics that
we’ve covered in our companion site, the Workers
Comp Insider. Feel free to post your comments or questions –
we would welcome your feedback.
For news and
more tips, visit Workers
Comp Insider. We update the site frequently with news and useful
tools that we’ve found on the Web.
The
Basics of Experience Rating, Part Two: When do losses really count?
When are the numbers actually crunched to determine an employer's
premium? When it comes to determining the experience rating for
your next policy year, there is only one day that really counts.
About six months after the end of your policy year, a summary of
your losses (the unit stat report) is prepared by your insurance
carrier(s) and submitted to your rating bureau. If you have open
claims you must ensure that the numbers contained in the unit stat
report are accurate and reflect an up-to-date understanding of the
status of each open claim. [more]
The
Basics of Experience Rating, Part One: What drives costs up the
most?
What can you do to minimize the future cost of insurance? How can
you translate a basic understanding of experience rating into a
reduction in future premiums? In experience rating, size matters.
Large insureds – with large premiums – are expected
to have more losses than smaller insureds. Indeed, because their
margin of error is smaller, companies with premiums in the $10,000
to $50,000 range can easily find themselves in a lot of trouble
with just a few injuries. [more]
Winterize
your workplace for safety
For employers, snow and ice management require preplanning. Slips,
falls and back strains are among some of the more common hazards;
injuries from snow-removal equipment, falls from roofs, and hypothermia/frostbite
are other common injuries that can befall your workers in the winter.
We offer some general winter safety tips. [more]
15
medical conditions driving cost increases - many can be managed
The August issue of Health Affairs carried a recent study issued
by Emory University revealing that more than half the overall growth
in cost of health-care spending could be attributed to the 15 most
costly medical conditions. The study notes that many of these conditions
are preventable or manageable conditions through interventions.
[more]
Compensability:
deviation from employment and "personal comfort" doctrine
Deviation from employment and personal comfort are legal nooks and
crannies having to do with the issue of compensability. Injuries
are compensable if they arise out of and in the course of employment.
Sounds simple? Not so: Thousands of court challenges have occurred
interpreting those few seemingly simple words. Is a worker covered
while driving home from work? Is a worker covered while they take
a break or go to lunch? Is a worker covered while running a personal
errand during a business trip? Is a worker covered when injured
at the company picnic? [more]
New
overtime regulations impact workers compensation
In August 2004, the U.S. Department of Labor’s new regulations
defining worker eligibility for overtime pay went into effect. Although
the net effect of the new regulations won't be totally clear for
a while, no one disputes that some low-wage workers (earning less
than $23,660 per year) will gain overtime protection, while many
others will lose it. The regulations are complex and employers will
have some flexibility in implementing them. [more]
Employer
communications - an increasing credibility gap?
A Towers Perrin report entitled “Is It Time to Take the SPIN
Out of Employee Communication?" reveals that in a survey of
1,000 working Americans, only 51 percent believe that their company
generally tells the truth in its communications to employees, and
one in five employees believes that their employer generally does
not tell the truth. Maintaining the credibility of management and
your corporate communications programs should be part of your overall
risk management program. [more]
Workers
compensation jurisdiction: injury in one state, employment in another
If a worker is employed in one state but suffers an on-the-job injury
in another state, under which state would benefits be paid? This
is a question that frequently surfaces, particularly with today's
often-mobile work force. As with many things in workers comp, it
can be confusing for employers and injured workers alike, and the
difference in benefits from state to state can be significant. [more]
Heart
attacks on the job: are they covered by workers compensation?
Is a heart attack that occurs in the workplace is a compensable
event? Not everything that occurs in the workplace is deemed compensable
and that is particularly true of illnesses. Generally, a heart attack
in and of itself would not be a compensable event. The acid test
for compensability would revolve around whether it can be determined
that the heart attack is an event that has arisen out of and in
the course of employment. [more]
Early
reporting: the cost of lag time
Reporting workplace injuries promptly can save a great deal of money.
We report on studies that show the high cost of late reporting.
Even a matter of a few days can be a significant cost.[more]
Performance
measurement, part 1: the cost of losses per Full Time Equivalent
Employees (FTE)
The single best economic indicator of the effectiveness of a workers’
compensation cost control program is cost of losses per FTE, an
economically sound snapshot of program success at any given time.
Learn why and how you should incorporate this measure you’re
your benchmarking program. [more]
Performance
measurement, part 2: the severity rate
The severity rate measures lost time, and is the single best non-economic
indicator of the overall effectiveness of a company’s workers’
comp program. Learn more about the severity rate and how to calculate
your rate. [more]
Safety:
When workers die
In December, the N.Y. Times issued a 5-part series about workplace
deaths. This prompted us to post a series of links to articles and
resources about workplace deaths, particularly with tools on the
topic of trenching and excavation. (The original articles are still
accessible from the New York Times for a small fee.) [more]
Safety:
When disaster strikes
When disaster happens, every decision made by management is scrutinized.
After a recent oil tanker crash, which killed four people, investigators
opened the books on the company's safety record and reviewed the
employee's driving and health history. Are you prepared to withstand
such scrutiny if disaster struck? Learn key steps that management
should take. Substance abuse: [more]
When
work turns deadly
The deadly crash of a New York ferry in October 2003 points to the
need for substance abuse policies, and in some cases, drug and alcohol
testing programs. The D.O.T. requires that employees with “safety-sensitive”
jobs be subject to random testing. Find resources for establishing
drug and alcohol free workplaces, and for establishing DOT compliance
programs.[more]
Terminations:
Seating the 800 Pound Gorilla
How do you terminate people? Termination is full of risk. It’s
not easy. It’s not comfortable. Indeed, it is tempting to
overlook poor performance, in the vain hope that the problem will
go away. All too often, the problem simply migrates to a company’s
comp loss run. [more]
Maximizing
recovery: Second injury funds
Second injury funds were designed to encourage employers to hire
employees with disabilities and pre-existing conditions by offering
a mechanism for cost relief should the employee experience an injury
that aggravates the existing condition. Many employers and insurers
can recoup claim expenditures through these second injury funds.
[more]
Giving
employees what they want
Many large companies that would do anything possible to outperform
competitors may be overlooking a surefire path to success: having
motivated, enthusiastic employees who are committed partners in
achieving the company's goals. [more]
The
Aging Workforce - Iceberg, Dead Ahead
Older workers have been doing their jobs for a long time; they’re
good at them, and they have experience that just can't be found
in their younger colleagues. On the other hand, although younger
workers have more injuries, those injuries are substantially less
costly than their older mentors. Is the workers’ compensation
system prepared for risks posed by the aging work force? [more]
Alcoholism
and Work: The Devil's Brew
Under the ADA, recovered alcoholics are considered individuals with
a disability and as such are protected from discrimination. However,
the ADA draws the line at active drinking. Once employees "fall
off the wagon," they are no longer protected by the ADA. When
employees have a drinking problem, employers are faced with a lot
of uncertainty -- up to a point. As soon as the drinking endangers
the employee and or others, employers are expected to take decisive
action. [more]
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