American employers working oversee as contractors to the United States Government must purchase a special kind of workers compensation insurance coverage known as the Defense Base Act (DBA). The DBA is a part of the Longshore and Harbor Workers Compensation Act administered by the U. S. Department of Labor. The DBA is designed to protect civilian employees working outside of the United States.
It is required for all:
1. Contractors on military bases or reservations
2. Americans working on non-military projects such as roads, schools, harbors and dams if they are doing so for any agency of the United States government
3. Any employee engaged in public works or a military contract with a foreign government which has been deemed necessary to the U.S. National Security.
4. Anyone providing services funded by the U.S. Government outside of the realm of regular military issue or channels
5. Any subcontractor involved in a contract with any of the above (WCxKit)
The wars in Afghanistan and Iraq have resulted in numerous contractors both multinational companies and small employers obtaining government contracts to provide services to the military. One of the services the United States government has contracted out is the disposable of waste. Neither Afghanistan nor Iraq has ready available incinerators. The solution to this by the contractors in both countries has been to dig huge pits and burn the waste. These open burn pits have created a bonanza for plaintiff attorneys in the United States because of the health problems the burn pits create.
The reason the open burn pits have created a serious health problem is the type of waste that was being burned including:
1. Plastics
2. Pesticides
3. Asbestos insulation
4. Tires
5. Hydraulic fluids
6. Biohazard materials
7. Chemicals
8. Paints
9. Solvents
10. Petroleum based products
11. Polyvinyl chloride pipes
12. Styrofoam
13. Medical waste
The smoke, air borne ash, dust and fumes from the open burn pits contain harmful toxins which result in a litany of medical conditions including, but not limited to:
1. Cancer of the lungs, skin, bone, brain
2. Leukemia
3. Pulmonary injuries
4. Heart conditions
5. Skin infections
6. Chronic bronchitis
7. Asthma
8. Chronic cough
9. Breathing restrictions
10. Nose bleeds
11. Throat infections
12. Lesions
13. Vomiting
The burn pits released many toxins including both sodium dichromate and hexavalent chromium which can have devastating results when humans are exposed to them.
The burn pits have created two types of claims that are being aggressively pursued by the attorneys. The employees of the contractors are pursuing workers compensation claims. The active duty members of the military and veterans of the wars in Afghanistan and Iraq can not pursue workers' compensation claims, but they can pursue third party liability claims against the contractors who operated the burn pits.
The major contractors who are on the receiving end of the workers compensation claims and third party liability claims include Halliburton; KBR Inc., Kellogg, Brown & Root Services, Inc., and Kellogg, Brown & Root, LLC. There are numerous other small contractors who have also received DBA work comp claims, but the multinational large employers are the target defendants being pursued by the plaintiff attorneys. Many of the plaintiff attorneys are running television commercials in Houston (where Halliburton and KBR are located) and other cities near military bases that have deployed troops to Afghanistan and Iraq soliciting both work comp claims from the employees of the civilian contractors and liability claims from the members of the military. AIG is the workers compensation insurer for most employers with DBA coverage.
Per one congressional study, there were at one time at least 84 burn pits in Afghanistan and Iraq. Due to the potential health issues from the burn pits, the American Lung Association got involved and issued a strong recommendation to discontinue the use of burn pits in Afghanistan and Iraq. As a result of the health issues the burn pits were creating, the National Defense Authorization Act of 2009 requires the military to look for alternative means of waste disposal. The National Defense Authorization Act also requires the Department of Defense to determine the effects of the burn pits on the troops. The plaintiff attorneys and their clients got a boost on October 15, 2010, when the U.S. Government Accountability Office reported on four burn pits it surveyed in Iraq that they were not being operated per the standards outlined in the National Defense Authorization Act of 2009.
As all of the medical conditions noted above can be the result of many causes beside burn pits, it is expected that most, if not all of the work comp claims and liability claims from the burn pits will be disputed. That does not stop the plaintiff lawyers from pursuing more clients with the suggestions that contractor employees, military members and veterans of Afghanistan and Iraq should pursue damages for “fear of future disease”, “emotional distress”, “medical monitoring” and actual physical injuries.
It should be noted that the insurers of employers of civilian contractors who were not among the companies operating the burn pits, but who have received workers' compensation claims from employees who were exposed to the smoke and fumes of the burn pits, can pursue subrogation claims against the burn pit operators. (WCxKit)
It will be interesting to see how the burn pit claims play out over the next few years. At this point it is too early to tell if the burn pits will turn into gold mines for the plaintiff attorneys or if the burn pits claims will be limited to a few hundred claims that do not pay for all the advertising the plaintiff attorneys have done.
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. RShafer@ReduceYourWorkersComp.com
©2010 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law. If you would like permission to reprint this material, contact Info@WorkersCompKit.com.
Thinking about hiring your teenager to sweep the floors and carry out the trash? It is a great way to transfer taxable income to a family member who will be taxed at a much lower tax rate. Plus, the teenager can put the money away for college tuition…….or a car.
There was a recent case in Georgia where a minor working in a fast food restaurant was severely burned when he slipped, partially fell, and his hand went into the boiling grease of the french fry cooker. This brought up the question: Are their special workers compensation provisions for minors? Yes, teenagers in the work place, under age 18, often have special protections when it comes to workers' compensation. (WCxKit)
Every state requires minors to be covered for workers compensation, just like every other employee. However, most states provide the minor with additional workers compensation protection over and above the standard workers compensation benefits paid to adults. Only the states of Delaware, Nevada, South Dakota and Vermont have workers' compensation statutes that are totally silent on the subject of employment of minors.
The additional protections provided to minors can be broken down into three categories.
They are:
1. Future Earning Capacity
2. Illegal Employment
3. Special Benefit Provisions
Future earning capacity comes into consideration when the minor has a permanent partial disability or permanent total disability as the result of the work comp injury. The states vary in how they address how much consideration is given to future earning capacity. The burden of proof is normally on the employee to establish how much the permanent partial disability or permanent total disability will interfere with the employee's ability to earn wages in the future. It should be noted that a small loss of income per year due to a permanent partial disability can add to up a tremendous settlement amount over a 40 to 50 year work career.
The future earning capacity of the teenager is taken into consideration in 23 jurisdictions – Alaska, Arkansas, California, Colorado, Connecticut, District of Columbia, Florida, Hawaii, Idaho, Iowa, Kentucky, Maryland, Massachusetts, Missouri, New Mexico, New York, North Carolina, Ohio, Oklahoma, Texas, Utah, Wisconsin and Wyoming. In Iowa the future earning capacity is considered only if the minor is an apprentice or a trainee. In North Carolina the future earning capacity of the minor is based on the income of the position the minor would have likely been promoted to as an adult. In Texas, the loss of future earning capacity is considered only if the minor is limited because of apprenticeship, continuing education or education intended to enhance future wages.
The workers compensation statutes on minors take absolutely no pity on the employer who employs minors illegally. This would come into play for the 15 year old employee who does not have a work permit or the minor working in excess of the number of hours per week permitted by the state work comp statutes or the states labor statutes. Some states address the illegal employment of minors by increasing the amount paid to the minor. In Rhode Island the compensation paid to the minor is tripled.
Several other states double the workers compensation indemnity benefits that can be paid. Double compensation is paid in Alabama, Arkansas (if the minor did not misrepresent his age in writing), Connecticut (if under age 16). Florida (if ordered by a work comp judge), Indiana (if under age 16), Maryland, Massachusetts, Mississippi, New Hampshire (if the employer has had previously employed minors illegally),
New Jersey, New York, Ohio and Wisconsin (double or triple compensation). In Florida, Indiana, Maryland, Massachusetts, Mississippi, New Jersey and New York it is the employer, not the insurer who pays the extra compensation. These states do not allow the employer to insure for the extra compensation that is paid to the minor. In Wisconsin the additional compensation for illegal employment is not paid to the minor, but is paid to the state fund.
The states of Arizona, California, Connecticut (if age 16 or 17), Illinois, Missouri and Pennsylvania increase the extra compensation paid to a minor that is illegally employed by 50% (fifty percent).
The illegal employment of a minor in Alaska, Illinois, New Jersey, New Mexico and Oklahoma gives the minor the option of taking the injury outside of the workers compensation system and suing the employer for damages.
Most of the states have special benefit provisions in their workers comp statutes to protect minors who have an on-the-job injury. A guardian may be required for the settlement of permanent partial disability or permanent total disability claims in Alaska, Arizona, California, Connecticut, Georgia, Indiana, Kansas, Kentucky, Massachusetts, Minnesota, Mississippi, Missouri, Montana, New York, North Carolina, North Dakota, Ohio, Oregon, South Carolina, Tennessee, Texas, Utah, Virginia, Washington and Wisconsin.
A few states also require all settlements with minors to be approved by their state work comp board, industrial commission or court system. This is true in Alaska, California, Idaho, New York and South Carolina. (WCxKit)
The extra protections provided to minors in most states are there to keep the minor from being exploited. Employers who legally employ minors have little to fear from a workers compensation standpoint, so go ahead and put that teenager to work.
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. www.LowerWC.com 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@WorkersCompKit.com.
1. Your lack of a safety program is job security for me.
My boss is very much like your boss. If there is not enough work for all of the adjusters, someone is going to get laid off. Fortunately for me (but unfortunately for your employees), you either do not have a safety program or you do not enforce it. Either way, I am guaranteed a lot of extra claims being assigned to our office and I will get my share of them. I know better than to criticize some of the dumb things employers do like not requiring hard hats on construction sites or removing safety guards from machinery. While I may think some of the employers we insure are morons for allowing accidents to happen, I will keep my mouth shut and enjoy the job security.
2. Burnout is a real problem.
This is really a stressful job. Not only am I under numerous time deadlines (the Best Practices guidelines we have impose time limits on almost every step of the claim), the phone is constantly ringing and often I cannot see over the stack of mail on my desk. I have to deal daily with people who are unhappy, whether it is the employer questioning a valid claim, an employee who wants to find a doctor with a better “bedside manner,” or the employee's attorney threatening to file a motion for sanctions because the clerical department sent out an indemnity check a day late. When you have never-ending pressure from many different sources, the stress becomes a motivational killer. We have some real zombie adjusters due to job burnout. (WCxKit)
3. We have a revolving door.
While we have some career claims people in our office, the turnover rate is often 25% to 35% a year in some of the claim offices. There are several reasons adjusters are coming and going constantly. The pay is relatively low for the demands of the job. The claims office often hires adjuster trainees fresh out of college who after a few months or even a couple of years, realize this is not the right field for them. If I can make 10% more money somewhere else, I'm gone. If the office is understaffed (and most are), I have more files than I can handle. If my spouse gets a better job and wants to move to a new city, I'm happy to leave.
4. I never tell you my mistakes.
My loyalties are to my employer, not to the employers we insure. If I do an overall lousy job on your claims, I won't tell you. Unless something really blows up bad, my boss won't tell you either when I goof up. If I fail to contact the employee after the accident, and the employee gets an attorney (which will eventually run up the overall cost of the claim), I won't tell you it is my fault. If I fail to investigate the claim and find out it is a fraudulent claim, while the employee will feel he got away with one, you as the employer will just have an uneasy feeling that something is not right, but we paid the claim anyway. (And yes, your premium will go up because I did not do my job).
5. I am overloaded.
If I work in a state that has few requirements for state form completion, if I am good at what I do, I can handle up to 150 work comp claims at a time. If I move to a state that has a different state mandated form to be completed for everything I do, 125 claims at anyone time is a heavy load. My boss in an effort to keep the cost of doing business down, will let my claim inventory drift up 175 or even 200 claims. There is no way I can properly handle that many claims, but I usually have no say in how many claims get dumped on my desk to handle. It is no wonder we have a revolving door and a lot of burned out adjusters.
6. What supervision?
My supervisor is really a nice person. When I work late, which is often as I am overloaded, the light is still on in my supervisor's office. Ideally, depending on the experience level of the adjusters assigned to my supervisor, she would have four to six adjusters reporting to her. Like me, she is overloaded and often has eight to ten adjusters' work product that she is responsible for, in addition to all her other office responsibilities. Instead of her reviewing my work, she has been assigned an inventory of claims to handle in addition to the supervisory duties. In an ideal world, she would check each of my claims every month, but in reality the norm is she will see my file the first month it is open and again when I am ready to settle the claim.
7. Don't ask me for recommendations.
If you ask me for the name of a defense attorney, I will tell you the name of the defense attorney who takes over a claim from me and quietly does the investigation I failed to do. Or, I will tell you the name of the attorney who happens to be my golfing buddy (but I won't mention that fact), or I will tell you the name of the attorney who throws the best Christmas party. If you ask for the name of a nurse case manager, and we don't have our own, I will give you the name of the nurse case manager who showers the office with post-it notes, ink pens and calendars. If you ask for the name of a surveillance company, I will be glad to share the information on one that I know (as we often go out for drinks after work, but I won't mention that fact).
8. Communication is a two way street.
Yes, our Best Practice guidelines require me to call you within 24 hours of the time the claim is reported to my office, and yes I am required to stay in touch with you throughout the course of the claim (but I seldom do). It is easier for me to forget about keeping the employer in the loop. If you are unconcerned about the employee or about the status of the claim, and never call me, it is easy for me to drop you from the information loop. If you don't make any effort to get the employee back to work on modified duty – it's your money – I will put the disability checks on automatic pilot and they will keep going out until you call me to tell me the employee is back to work (which you may forget to do as we have not been communicating throughout the course of the claim).
9. You make my life miserable.
Between your lack of a safety program and your lack of a return to work program, you create a lot of unnecessary work for me. When you fail to report the claim timely, you alienate the employee and whether or not the employee gets an attorney, your failure to report the claim on time creates a lot of extra phone calls, and makes the claim cost more to resolve. When you have no drug testing policy, no fraud prevention policy, no medical management program and no organized approach to handling claims, I bear the brunt of your mistakes. (WcxKit)
10. I'm happy to let someone else do it.
Since I am overloaded with work to do, I have no qualms about letting the nurse case manager do all the contacts with all the medical providers. I have no qualms about letting the defense attorney do the investigation I never had time to get around to doing. When my mistakes and goof ups do come to light, I have no qualms about letting the broker deal with your irritation. It is not because I do not want to do a good job, I'm just have too much to deal with – see all of the above things I won't tell you.
This is a tongue in cheek parody; please take it with a grain of salt.
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. www.LowerWC.com Contact: RShafer@ReduceYourWorkersComp.com
©2011 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law. If you would like permission to reprint this material, contact Info@WorkersCompKit.com.
A drug manufacturer has pleaded not guilty to five charges in the death of a lab technician who allegedly handled a chemical in a Nova Scotia plant.
According to The Canadian Press, a lawyer for Sepracor Canada entered the not guilty pleas to charges under the provincial Occupational Health and Safety Act in provincial court recently.
Lawyer Mick Ryan waived reading of the charges and told Judge Alan Tufts that a trial would take about 15 days because of the large volume of technical evidence that will be presented.
A trial date was set for May 2 in the death of 46-year-old Roland Daigle. Daigle, a quality control technician, died 18 hours after the alleged exposure (WCxKit)
He died in hospital on October 7, 2008, after allegedly being exposed to vapors from trimethylsilyl diazomethane at his workstation at the plant in Windsor.
The pharmaceutical company is charged with failing to ensure adequate personal protection equipment was available in the work area, failing to ensure an adequate venting system was in place and failing to ensure the employee was instructed in the safe use of the chemical.
Sepracor is also charged with failing to instruct an employee in safe use of a substance in the company's Windsor lab and failing to ensure no person would disturb the scene of an accident after it occurred.
Sepracor said in a written statement after the death that Daigle was in good condition when he left the lab and that it is unaware of any link between his death and work conditions at the plant. (WCxKit)
Sepracor, based in Massachusetts, no longer owns the plant. It was sold to a Japanese company in October 2009.
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.
©2010 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law. If you would like permission to reprint this material, contact Info@WorkersCompKit.com.
WorkCover NSW (Australia) recently launched the 2010 Safe Business is Good Business Mentor Program, an initiative that will see some of the state’s biggest companies help small businesses improve workplace safety.
General Manager of WorkCover’s Work Health and Safety Division, John Watson, said under the program more than 30 large organizations would partner with 45 small businesses to help them reduce injuries and develop a sustainable safety culture. (WCxKit)
“The program, now in its fifth year, allows small businesses to gain hands on industry-specific advice from large employers on how to meet workplace safety, injury management and workers compensation obligations,” Watson said. “The program involves a series of site visits, advisory sessions and workshops to help businesses to improve their capability to develop safety systems.”
“Investment in work health and safety provides tangible financial benefits to businesses and the mentor program will help small employers become more productive and cost effective.
“Almost 70% of mentee businesses in the current intake are from regional areas across New South Wales, with the remainder from across the Sydney metropolitan area.
Griffith-based disability service provider, Ningana Enterprises, took part as a mentee in the 2009 program and compliance officer Judith Chant said the program had a positive impact on her business. “We learnt how to identify and address any gaps in our safety system,” Chant said. “Our business was provided overwhelming support from our mentor. As a result we have introduced new safety procedures and more effective safety systems.”
Their mentor, Bega-based business Tulgeen Disability Services, is pleased the program is reaching regional New South Wales. “This program is particularly beneficial to businesses in rural areas. We received guidance in our role as mentor from our local WorkCover office,” Tulgeen Disability Services President Gae Rheinberger said.
“Knowledge sharing with large employers in the same industry helped us provide our mentee partner with a deeper insight into how to make real improvements to safety,” she said.
Watson said while workplace injuries in New South Wales are at their lowest levels in two decades, there is still more work to be done. (WCxKit)
According to officials, nearly 250 small businesses across a range of industries including retail, consumer services, community services, transport and agriculture, have taken part in the program dating back to 2006.
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@WorkersCompKit.com.
The American Federation of Government Employees (AFGE), the country’s largest federal employee union, recently demanded the immediate closure of a Social Security Administration claims office in Ironton, Ohio due to a black mold outbreak.
The mold outbreak which was first noticed in 2008, left nine out 11 workers ill, all of which have filed workers compensation claims. (WCxKit)
“I’ve asked and demanded they close the office,” said AFGE Local 3448 President David Sheagley. “The employees are experiencing respiratory problems and headaches among other symptoms because of the repeated exposure to the mold. Around 100 people are in and out of that office every day – retirees, the disabled – and they are being exposed to black mold. This is a dire public safety issue.”
A local representative first observed the mold early last summer and it since spread under and onto the seams of the vinyl wallpaper in the office. The only thing done so far by building management is covering the mold with clear tape – a precaution certainly not outlined by the Occupational Health and Safety Administration (OSHA), according to AFGE.
“There’s no enforceable standard when it comes to mold and air quality,” said Sheagley. He does agree that while it is somewhat established, what is defined as a “hazard” is unclear. Sheagley cites Article 9, Section 4 of their 2005 contract as saying that an abatement plan will be made if there is a hazard.
Both the Centers for Disease Control (CDC) and the Environmental Protection Agency (EPA) have agreed that the mold is unsafe and unhealthy but the hazard has yet to be confirmed, meaning no abatement plan. Sheagley says that the National Institute for Occupational Safety and Health (NIOSH) was working with the Federal Occupational Health (FOH) agency to do abatement.
FOH conducted inspections in the office September of last year and this August, but the reports from the September inspection were released this July, and Sheagley says he and other leaders were not informed of either inspections.
Reports indicated moisture problems around windows, which have since been worked on but not fixed, issues with the HVAC system, and filters needing to be changed. The employees and the union were not told whether or not any of the recommended steps by FOH have been taken. (WCxKit)
A new office space is currently being built but will not be ready until next summer at the earliest.
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@WorkersCompKit.com.
The federal Bureau of Labor Statistics recently released its preliminary statistics for 2009, reporting a decline in work-related deaths in Washington State last year to numbers not seen since 2000.
The BLS, in its annual Census of Fatal Occupational Injuries, reported 75 deaths in Washington State, down from 83 reported in 2008. Over the past decade, an average of 86 people per year died in Washington state from work-related injuries, according to the federal census, placing last year’s toll at well below the average. (WCxKit)
“We know much of this decline is likely due to fewer people working during this economic recession,” Labor & Industries Director Judy Schurke said. “But many industries have also worked hard to improve workplace safety and L&I has continued to increase its efforts in providing safety and health information to employers.”
These efforts include workshops throughout the state, free safety and health consultations and improving outreach among Spanish-speaking workers.
Workplace deaths in the construction industry, typically among the most hazardous professions in the state, had the most dramatic decline, with 9 fatalities in 2009, compared to 20 the year before. (WCxKit)
While deaths due to workplace violence nationally saw a slight decline, in Washington State, the numbers climbed with 14 on-the-job homicides in 2009. Several of those deaths involved the fatal shootings of law enforcement officers.
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@WorkersCompKit.com.
Amaxx Risk Solutions is always looking for ways to assist employers and to prevent the mistakes that cost the employer money. Unfortunately, we see some of the same mistakes repeatedly. Here are the top 10 mistakes that employers make when it comes to controlling the cost of their workers' compensation insurance.
1. The failure to provide the employees with a safe work environment. The lack of a strong Safety Program is the #1 reason many employers are saddle with high workers' compensation premiums.
Employers who:
a. utilize safety training,
b. have completed a job hazard anaysis on every job position within the company,
c. complete work-site evaluations and inspections, and
d. have a safety specialist and/or a safety committee with significantly fewer on-the-job injuries, resulting in lower workers compensation cost. (WCxKit)
2. The lack of an established Return to Work Program is the probably the second most expensive mistake an employer can make. The longer the employee is allowed to remain off work and drawing indemnity benefits, the higher the cost of the claim and the higher the resulting workers' compensation premiums will be. By returning the employee to modified duty or light duty work until the employee is able to resume his regular duties, the employer receives the benefit of some production from the employee. Also, light duty work will speed the employee's recovery and lower the extent of any permanent disability rating, resulting a lower disability award.
3. The alienation of the employee after an injury is a major mistake made by employers. Way too many employers simply forget about the employee once they have reported the injury to the claims office. Everyone has a certain amount of need for reassurance of their value to the company. If the employee never hears from the employer after the accident, they tend to think the worst. Employees who have regular contact from the employer after an accident seldom become adversarial and hire an attorney. By keeping the lines of communication open with the employee after an accident, the employee recognizes the employer is concerned about their well being.
4. A mistake an employer should never make, but occurs too frequently, is the failure to timely report a workers' compensation injury to the claims office. An employer who saves up all their work comp claims for the week to report to the claims office each Friday is being penny wise with their time and pound foolish with their money. Every department supervisor within your company should know that as soon as they have arrange transport of the injured employee to a medical facility, the next step before they do anything else is to report the claims to the company's workers' compensation claims coordinator, or to report the claim direct to the claims office. The sooner the claim is reported, the faster the adjuster can start the claim investigation, and provide the required benefits to the employee, if appropriate.
5. A hands off approach to your workers' compensation claims will result in higher insurance cost. The employer should make the employee's supervisor available to the adjuster to discuss the details of the accident and assist the adjuster with the investigation in any way needed. The smart employer will not only stay in contact with the employee after an injury, the smart employer will also stay in contact with the work comp adjuster. The employer should convey to the adjuster all information about the work comp claim that is given to them by the employee. While some of the information will be duplication of what the adjuster may have already obtain, there will be information that will assist in the processing of the claim.
6. The failure to manage and control what happens before and when a claim happens is a mistake many employers make. All supervisors should be trained on what to do when a claim happens. All employees should be provided a brochure, both when they are hired and annually, with a written guide on what the employee should do when an accident occurs. The injury procedure policy should be posted where all employees can see it. All state required notices, OSHA notices, required (or suggested) medical providers and fraud prevention posters should be posted.
7. A costly mistake some employers make is not controlling the selection of the medical provider in the states where the employer can do so. If the state allows the employer to select the medical provider, the approved medical facilities should be posted where every employee will know who they are in the case of an accident. In the states where the employee is allowed to select the medical provider, the employer should post a list of suggested medical providers. More often then not, in a non-emergency situation, the employee will select from the suggested list of medical providers, especially if the employer has managed and controlled the work comp claim process (see # 6 above).
8. The lack of a drug testing policy is a crucial mistake make by some employers. The employers who take the position that drug testing is an invasion of the employee's privacy pay for their political correctness. A pre-hire drug testing policy, combined with random drug testing and drug testing of all employees who are injured on the job, will reduce the number of injuries and identify the employees whose injuries are the result of their drug use.
9. According to the National Insurance Crime Bureau, up to 25% of all workers' compensation claims have some element of fraud. The failure to fight fraud can be a costly mistake for the employer. Every employer should have a fraud prevention program and know the red flags (indicators) of potential employee fraud. All employers should make it clear that workers' compensation fraud is a crime and will be fully prosecuted. Plus all employees should know that work comp fraud takes money away from their raises and/or bonuses. (WCxKit)
10. An incomplete medical management program will definitely add to the cost of workers' compensation. Every employer should make sure their workers' compensation insurer, or self-insured program uses all the medical cost reduction techniques available including medical fee schedules, bill reviews, nurse case, utilization review, pharmacy benefit managers and medical provider management networks. By utilizing all available medical cost management techniques, the overall cost of workers' compensation can be lowered.
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@WorkersCompKit.com.
We often hear the question: How long do we have to file a workers compensation claim? The answer depends on whether you are an employer or an employee. While the time requirements vary from state to state, the time restraints for the employer to file a workers' compensation report are almost always more restrictive than the time limits are for the employee.
For the Employer:
While the employer is technically responsible for reporting the work comp claim to the state workers' compensation board, work comp insurers often perform this function for the employers. A few states insist the employer report the claim, but most states just the want the claim reported timely and do not care who sends in the claim. (WcxKit)
The claim is normally reported on a form called the Employers First Report of Injury, also known as the E1 in some states. When the employer reports the claim to the insurance company, the insurer has the experienced adjusters who know the state requirements for the information required on the Employers First Report of Injury. In the states that require supplement updates, the claims office always will file the additional reports with the state work comp board.
California requires serious injury and death claims to be reported immediately to the Division of Workers' Compensation. Colorado also requires death claims to be reported immediately. Michigan requires death claims, disabilities of 7 days or more and some specific losses to be reported immediately. [No explanation as to how the employers will know immediately the employee will be off work 7 days in the future on minor indemnity claims]. Washington state also requires immediate reporting of death claims and claims involving hospitalization.
Most states give an overall time limit on when the employer must have the Employer First Report of Injury filed with the state. Generally, the time limits vary from 2 days to 15 days. However, a few states give the employer more leeway in reporting the claims. In Georgia, the employer has 21 days to report the claim to the state, while Kansas gives the employer 28 days to report the claim. Missouri gives the employer the most time to report the claim, 30 days.
While a few states (Alabama, Arizona, Colorado, Michigan, North Dakota and West Virginia) do not impose any penalty on the employer for failing to report the claim, most states have the option of imposing a fine on the employer for late reporting. Texas requires indemnity claims to be reported within 8 days. If not, the Texas Division of Workers' Compensation can fine the employer up to $25,000 per day, per offense. [That would only happen to the employer who intentionally and repeatedly failed to report work related injuries]. (WcxKitz)
The maximum fine that can be imposed on the employer for late reporting varies by states. Arkansas has a really strict penalty for not reporting the claim within its 10-day time limit – a $10,000 fine and it is classified as a Class D Felony which can involve imprisonment for the employer! Hawaii, Virginia and Vermont have a maximum fine of $5,000, but no imprisonment. New York and New Hampshire have a maximum fine of $2,500 for late reporting. All the other states have fines of $100 to $1,000.
For the Employee:
While the employee has more latitude in when to file a work comp claim, the employee also has more to gain by filing the claim timely. The employee cannot collect indemnity benefits until the claim is reported.
A few states including Arizona, Arkansas, Connecticut, Hawaii, Washington and West Virginia require the employee to give notice of the claim to the employer “forthwith” or immediately, without delay. However, each of these states give the employee a free pass on the requirement to notify the employer if they have an excusable reason.
Most states have time frames for notifying the employer that vary from 2 days to 30 days, with longer “excusable” times being permitted. Excusable events vary by state, but in reality few insurers ever try to deny a claim because it was not reported timely. Some states require the claim to be in writing to the employer, while other states do not specify the means of reporting the claim to the employer.
Delaware gives the employee up to 90 days to report the claim, after which no compensation is due until the employee does notify the employer. [This doesn't make much sense, as the employer will notice well before the 90th day the employee is not at work. If the employee is at work, then indemnity benefits would not be owed].
Iowa gives the employee 90 days to report the claim to the employer, unless the employer already knows about the injury. Louisiana gives the employee 30 days to notify the employer, unless the employer has not posted the work comp reporting requirements per state law, then the employee has one year to report the claim to the employer. Utah gives the employee a straight 180 days without qualifications. (WcxKit)
If you are an employer – it is absolutely to your advantage to report the claim as soon as possible to the insurer, or the state if the state will not accept the E1 from the insurer. The sooner you report the claim, the quicker the adjuster will be able to start the claim investigation, and the sooner necessary services and benefits can start to flow. If you are the employee – the sooner you report the claim to the employer, the sooner your benefits will start.
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@WorkersCompKit.com.
When employers hear the word ergonomics, they tend to think about teaching their employees proper lifting techniques to prevent back injuries and to prevent the resulting workers compensation claims. As back injuries for laborers account for a disproportionate share of the number of work comp claims and a disproportionate share of the cost of work comp that is understandable. However, there are a significant number of workers compensation claims to office workers that could be prevented through proper office ergonomics.
Sitting in an office chair that is incorrect for the employee is often the cause of back pain. Using a computer keyboard that is placed improperly often results in carpal tunnel syndrome and other repetitive motion injuries. These types of injuries can be prevented by applying ergonomic principles – the scientific study of individuals and their physical relationship to the work environment. (WCxKit)
An office ergonomics plan should have the goal of adapting the workplace to fit the individual needs of each specific employee. To accomplish this, three areas need to be considered. They are: (1) the physical shape and size of the employee; (2) an understanding of the employee's job description; (3) the tasks that the employee is required to do.
In an office environment, a comfortable workstation depends on how the workstation is set up. The location of the computer screen, where the keyboard is placed in relation to the hands, and the type of office chair. An ergonomically incorrect workstation is easy to identify by the employee who is sitting forward in his/her chair, hunched over looking at their computer. The correct workstation will have the employee looking straight ahead while sitting back in their office chair, which provides the employee with lumbar support to keep the back straight, and the neck and head erect. Another quick tip-off that the office is not ergonomically friendly is when all the cubicles have the same height for the work surface and all the cubicles have the same style office chair.
Incorrect computer usage and computer placement results in musculoskeletal problems, eye strain, blurred vision, and headaches. Using a computer involves sitting at the same place for an extended period of time, while involved in small repetitive motions of the hands and fingers, and repetitive movement of the eyes. These activities will cause the employee to develop various strains and fatigue. The office employees should be encouraged to:
1. To shift positions, stretch, walk or take a short break every hour.
2. To vary their work in order to utilize different muscles.
3. To have annual eye exams.
4. To be sure their workstation or work space is set up ergonomically correct to fit their physical needs and requirements.
There are four steps to setting up an office work space to be ergonomically correct. The four steps are:
1. The work surface height is designed for the employees specific job.
2. The office chair is adjustable for the employee.
3. The height of the computer screen is adjustable for the height of the employee.
4. The computer keyboard is properly placed.
The work surface height, whether the employee is sitting or standing should be designed to fit the job being done taking into consideration the tools used or equipment used. For example, the height of the work surface of an artist would be higher than the work surface of a writer. The work surface height also needs to be adjustable to the height of the specific employee who will be working at that location.
An adjustable office chair should be provided for employees seated at a desk. The chair should be raised or lowered so that the employees work surface is elbow high – the employee when sitting straight up in the office chair, with his arms at his side, can rest his elbows on the desk without slouching. The chair should provide lumbar support, neck and head support with the back rest pushing the low back slightly forward. There should be three to four inches from the front edge of the seat to the employee's leg calf. To avoid pressure on the back of the legs, the height of the chair should cause the thighs to be slightly above the front edge of the chair. If necessary, a foot rest should be provided to raise the knees slightly eliminate pressure on the back of the thighs.
When the height of the work surface has been adjusted to fit the employee and the chair has been adjusted, the employee should sit in the chair with proper posture and look straight ahead without tilting the head downward or upward or to the side. The center of the employees gaze is where the center of the employees computer monitor should be placed. The computer monitors support stand should be adjustable to place the computer screen at this height.
The computer keyboard should be placed so that the employee does not have to twist to either side to use the keyboard. The keyboard should be directly in front of the employee and placed at a level where the employee does not have to bend the wrist either downward or upward to use the keyboard. (The main cause of carpal tunnel syndrome for office workers is the incorrect placement of the keyboard causing the employee to bend their wrist while typing). (WCxKit)
A proper setup of the workstation will eliminate most back strains and repetitive motions strains incurred by employees. The proper height of the work surface, the proper adjustment of the chair, the proper placement of the computer monitor and the proper placement of the computer keyboard are all important. By preventing the causes of office related strains, the employer will eliminate most office related workers' compensation claims
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. See www.LowerWC.com for more information. Contact: RShafer@ReduceYourWorkersComp.com.
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.
©2011 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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