Remember the question we often hear is “Okay, we want a successful return to work program, but how is it done?” and we know achieving a proficient return to work program requires EFFORT on the part of the employer beyond placing the injured employee back into his/her previous job with instructions “not to pick up anything heavy.”
Employees benefit from awell-constructed return to work program by:
1. A reduction in the economic impact on the employee who is receiving a regular salary as opposed to the lower amount received in workers comp indemnity benefits.
2. A reduction or elimination of the psychological effects of being separated from the work place.
3. It allows the injured employee to maintain the social network and emotional ties to the work place and remain a part of the work environment. (WCxKit)
4. A faster recovery from the injury – research has shown. (Inactivity leads to muscle and joint stiffness causing a negative effect on the employee's ability to recover from the injury).
Overcoming Roadblocks
Some employers run into roadblocks when trying to construct their RTW program. There are valid reasons preventing the employer from providing customized transitional duty. Some of the roadblocks are:
1. Union contracts
2. Inability to alter machinery or equipment.
3. The necessity of the employee being in top physical shape to perform the job.
An approach used by many employers to deal roadblocks to their RTW program is to have an alternative “modified duty off site” program. When the employee's restrictions or other barriers prevent the employee from working at the job site, placement of the employee at a non-profit charitable organization is an excellent alternative. The employee remain productive and does not get into the daytime television syndrome. The employer gets a charitable donation for the value of the salary and benefits paid to the injured worker.
Non-profit charitable organizations to consider:
1. Thrift stores like Salvation Army and Goodwill
2. Homeless person shelters
3. Animal shelters
4. Meals-on-wheels
5. Food banks
6. Literacy programs
7. Senior centers
While every type of charitable organization may not be available in the area of the employer, the odds are there is a charitable need the injured employee can meet regardless of where the employer and employee are located.
Surprise!!!! Unintended Consequences of Volunteer Work
There are employees who genuinely enjoy the volunteer work perhaps because the type of organization interests or “strikes a chord” with them.
One in particular was placed with an animal shelter and after he was released to full duty, he committed to continuing to volunteer as needed because he supported the cause.
Another enjoyed her temporary assignment creating toy displays in a thrift store. Interestingly, it was reported that toy sales increased 10% thanks to her creative efforts.
It seems finding an assignment employees enjoy and their motivation to support their community are keys in continued volunteering. Relationships are also developed, especially during longer assignments strengthening community bonds.
As there is the risk an employee may enjoy the modified duty off site alternative too much, the employer should structure it the same as a transitional job at the work place with a set maximum time limit of 15-30-45-60 or 90 days depending on the nature and severity of the employee's injury. The employer (or the nurse case manager) then works with the non-profit organization to be sure the employee's physical requirements are increased per the guidelines from the treating physician. (WCxKit)
A properly constructed RTW program saves the employer workers compensation cost and reduces the impact of lost employee production. The employer who puts forth the effort to construct their RTW to meet both their needs and the needs of the employee will enjoy significant cost savings while building employee loyalty and morale.
Author Rebecca Shafer, JD, President of Amaxx Risks Solutions, Inc. is a national expert in the field of workers compensation. She is a writer, speaker and website publisher. Her expertise is working with employers to reduce workers compensation costs, and her clients include airlines, healthcare, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing.
Contact: RShafer@ReduceYourWorkersComp.com or 860-553-6604.
Comp Calculator: http://www.LowerWC.com/calculator.php
Modified Duty Calculator: http://www.LowerWC.com/transitional-duty-cost-calculator.php
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Do not use this information without independent verification. All state laws vary. You should consult with your insurance broker or agent about workers comp issues.
©2010 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law. If you would like permission to reprint this material, contact Info@ReduceYourWorkersComp.com.
Woodman's Food Markets Inc., a Janesville, Wisconsin-based grocery store operator, violated federal disability discrimination law by firing an employee due to her lifting restriction, EEOC charged in a lawsuit.
According to John Rowe, EEOC Chicago district director whose jurisdiction includes Wisconsin, the agency’s administrative investigation preceding the lawsuit revealed Woodman’s Food fired long-time employee Kimberly McMillan-Goodwin from her position as a clerk at a company gas station in Beloit. (WCxKit)
McMillan-Goodwin had a lifting restriction preventing her from lifting over 10 pounds. Even with the restriction, Rowe said, McMillan-Goodwin successfully performed her duties in her position for years. When McMillan-Goodwin returned to work after an unrelated leave of absence due to injuries from a car accident, Woodman’s claimed it had changed the position so she now could no longer perform her job with her long-standing restriction, and that it had no other positions available for the employee within her performance capacity. Woodman’s then placed McMillan-Goodwin on a one-year leave of absence, after which it terminated her employment.
Such alleged conduct violates the Americans with Disabilities Act (ADA), protecting employees and applicants from discrimination based on disabilities. The lawsuit, filed in U.S. District Court for the District of Western District of Wisconsin in Madison (Equal Employment Opportunity Commission v. Woodman’s Food Markets, Inc.; Civil Action No. 10-cv-562), was brought only after the agency first attempted to reach a voluntary settlement with the employer through the EEOC’s conciliation process.(WCxKit)
In this case, the EEOC is seeking injunctive relief barring discrimination, and will seek back pay and compensatory and punitive damages on McMillan-Goodwin’s behalf.
“It is unfortunate that some managers still act as if it’s acceptable to deny jobs to people who are ready and able to work, simply because of a disability — especially when the people they put on the street have a history of long, loyal successful performance,” said John Hendrickson, regional attorney for the EEOC’s Chicago District. “It really runs against most people’s sense of fundamental fairness and, beyond that, it violates federal law. That is why we are in this case and intend to pursue it as far as necessary.”
Author Robert Elliott, executive vice president, Amaxx Risks Solutions, Inc. has worked successfully for 20 years with many industries to reduce Workers Compensation costs, including airlines, healthcare, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing. Contact: Info@ReduceYourWorkersComp.com or 860-553-6604.
©2010 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law. If you would like permission to reprint this material, contact Info@ReduceYourWorkersComp.com.
Workers compensation insurance policies can be divided into three basic categories — Prospective (aka, Guaranteed Cost), Retrospective (Retro plan) and Cash Flow (Deductibles).
Defining the Plans
In a guaranteed cost plan, the premium is fixed prior to the start of the policy year and the only variable is payroll (subject to audit at the end of policy year). (WCxKit)
In a retrospective insurance plan the final premium is based on the insured's actual loss experience, with the contract providing for a minimum and maximum amount of premium.
In a deductible plan, the insured reimburses the insurer up to a set dollar amount and the insurer is responsible for all claim cost above the set dollar amount.
Most employers opt for a guaranteed cost insurance policy, but do not fully understand how their insurance premium is determined. From time to time we will hear the questions like “Why do we need to spend money on a
safety program as we have a guaranteed cost insurance policy?” or “Why do we need to have a return to work program when we have a guaranteed cost insurance plan?”
The simplest way to explain this would be to give a comparison to another type of insurance most people have – automobile liability insurance. Auto insurance is a guaranteed cost insurance policy. You know what the premium is at the start of the policy year. You do not know if you will have a claim against your policy or not, and if you do have a claim, you don't know what the claim will cost. It could be a $1,000 or $100,000. However, you do know if you have a $100,000 claim the next year the car insurance premium will be at a guaranteed cost, but the dollar amount of the insurance policy will be much higher.
It works the same way with a guaranteed cost workers compensation insurance policy. If you have many workers comp claims, you can still get the guaranteed cost insurance policy but the claim history of your company will be evaluated prior to the premium being calculated for the new policy year. A high frequency of claims tells the underwriter at the workers comp insurer that your company has poor safety controls and lacks management oversight, just like several auto accidents tells the underwriter you are a bad driver.
A key concept to keep in mind with a guaranteed cost workers comp policy is the cost is guaranteed only for one year. A poor history guarantees the cost will be higher the following year.
Regardless of whether you have a guaranteed cost insurance plan, a retro plan or a deductible plan for your workers compensation insurance coverage, you need to have a complete cost containment strategy for your company. (WCxKit)
9 Cost Containment Strategies to Reduce Cost of Workers Compensation
1. Have a strong safety program with senior management emphasis to eliminate injuries before the occur. Constantly promote job safety and preventive measures. Be sure employees are properly trained to operate equipment or machinery, and know proper lifting techniques.
2. Recognize the task(s) that create injuries on a regular basis and take the necessary steps to change the way the task(s) is/are done to remove the cause of injury from the task(s).
3. Have an established return to work program providing modified duty or light duty work for your employees before the injury occurs. This allows you to get an injured employee back to work as soon as the treating doctor allows. Request the work restrictions from the medical provider at the time of the initial treatment.
4. Have an established protocol of on-going communications with every injured worker until the worker is back on the job.
5. Be a drug-free workplace with an active drug-testing program, including pre-employment, post accident and random drug testing.
6. When the medical provider will not permit the employee to return to work on modified duty, have a nurse case manager assigned to the claim to provide medical management, which will have a positive impact on the medical cost.
7. If your business operation is large enough, have an on-staff nurse or doctor treat workers comp injuries on-site. If not, consider nurse triage which occurs at the moment the injury occurs. The nurse determines the urgency of treatment and/or whether ER, clinic visit or self-care is appropriate.
8. Have a pre-employment screening program.
9. Have an active fraud prevention program including posters, anonymous tip line and check endorsement program.
Cost containment in a guaranteed cost insurance plan is no different that cost containment in any other type of insurance. The better your safety record and the fewer claims you have had, the lower the overall cost of your workers comp insurance. Any steps your company takes to minimize the number of claims you have and any steps your company takes to lower the cost of the claims that do occur, will have a positive impact on your guaranteed cost insurance policy.
Author Rebecca Shafer, JD, President of Amaxx Risks Solutions, Inc. is a national expert in the field of workers compensation. She is a writer, speaker and website publisher. Her expertise is working with employers to reduce workers compensation costs, and her clients include airlines, healthcare, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing.
Contact: RShafer@ReduceYourWorkersComp.com or 860-553-6604.
©2010 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law. If you would like permission to reprint this material, contact Info@ReduceYourWorkersComp.com.
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Implementation and Rolling Out Your Program, Return to Work and Transitional Duty |
