Work Comp Roundup - Reduce Your Workers Compensation Insurance Coverage Costs with Timely Information for Employers

British Employer Cited When Worker Suffers Permanent Injuries

Robert Elliott, J.D. — Thu, 02 Feb 2012 20:48:10 +0000

A modular building company in Great Britain has been fined after a worker was left with permanent injuries when a lifting operation went wrong, according to a report from the Health and Safety Executive.

Banksman John Hughes, of Newark, was working in an outdoor yard of Caledonian Building Systems Ltd at Carlton-on-Trent, Nottinghamshire, on Feb. 20, 2009. (WCxKit)

He was helping a fork lift truck driver to raise an 11-tonne modular building unit off some blocks and a wheeled axle, on to a lorry, but the unstable load started to rock. Hughes put his right hand on to the wooden block, to move it out of the way, but one end of the unit came down on his fingers.

His index finger was crushed and had to be amputated at the knuckle, however 18 months later after continuing problems it was completely removed. His middle finger was also damaged. Hughes was off work for 12 weeks in total before returning to work.

A Health and Safety Executive investigation found the lifting operation was disorganized and the employees involved were not provided with clear information or instructions. It was unclear who was supposed to participate in the operation, what their role was, which equipment would be used and whether the unit would be moved elsewhere or simply vertically lifted. (WCxKit)

Caledonian Building Systems Ltd., of Glendale Gryfe Road, Bridge of Weir, Renfrewshire, pleaded guilty to breaching Regulation 8(1)(c) of the Lifting Operations and Lifting Equipment Regulations 1998 and Regulation 3(1)(a) of the Management of Health and Safety at Work Regulations 1999. Lastly, Nottingham Magistrates fined the firm $23,000 (£15,000) and ordered it to pay costs of ($11,500) £7,328.

Author Robert Elliott, executive vice president, Amaxx Risk 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. See www.LowerWC.com for more information. Contact: Info@ReduceYourWorkersComp.com

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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.

New York Workers Compensation Cost Containment Starts with Employers

Attorney Theodore Ronca — Thu, 02 Feb 2012 20:44:19 +0000

In NY workers comp, “return to work” measures (RTW) can achieve unprecedented savings – for the employer and the employee but only if the employer takes the initiative. Employer involvement is many times more effective than what a carrier, TPA, consultant, etc. can provide especially with restoring a worker to employment.

Recently in NY, new court decisions point to a recognition that a worker collecting wage loss benefits cannot lightly refuse a job offer without risking reduction of benefits. But the cases involve claims where the original employers made the offers. Those employers, of course, were in a far better position to know what offer would be within the capabilities of one of their employees. (WCxKit)

Many employers have ignored the advantages of proactive job offers. The reasons lie in the fact that any program will fail sometime, in someplace, for many reasons. But that is no reason to balk. What is not tried will ALWAYS fail. If the employer will not make the effort, who will?

This will be the opening of a series which will outline the steps for an employer-initiated return to work program. A series has to begin somewhere and the starting point must be to stress that the employer’s role is central and cannot be delegated. The employer alone has the knowledge of the person, the job, the requirements and the ability to make essential modifications often necessary for success.

Editor's Note: The next part of our Tips from Ted, will deal with pre-incident planning.

Author: Attorney Theodore Ronca is a practicing lawyer from Aquebogue, NY. He is a frequent writer and speaker, and has represented employers in the areas of workers’ compensation, Social Security disability, employee disability plans and subrogation for over 30 years. Attorney Ronca can be reached at 631-722-2100. medsearch7@optonline.net

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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.

7 Keys to Reducing Workers Compensation Losses in 2012

Rebecca Shafer, J.D. — Thu, 02 Feb 2012 01:29:28 +0000

It is never too late to start thinking about how to be more proactive when it comes to handling your insurance losses. You can implement a program or plan any time, provided you roll it out to the right people and your employees or workers understand the initiatives and reasons behind it.

Sometimes workers don’t understand how insurance works. Commercial insurance is a monster to address. It is hard to explain how an underwriter comes up with the numbers they do in order to assign a premium to your workplace. But the bottom line that should be communicated is that every dollar that goes out from the insurance company/TPA could affect the insurance cost. If you have higher costs, maybe you cannot give out higher bonuses. Or maybe increased costs result in certain workers not getting a pay raise. All workers will understand when you put it into a sense of how if affects them directly. So let’s go over some simple loss reduction techniques to refresh your mind for 2012:

1. Make a commitment to promoting safety

If you are going to do this, go all out. You need to establish the rules and procedures, and then you need to come up with a way to drill it into everyone’s mind. The perfect way is by having rules enforced, and violators punished. Not harsh, severe punishments, but more than a slap on the wrist. Make them park in the back of the lot. Make them wear a different color safety hat than everyone else, or a vest that claims they broke the safety rules. Have the punishment be something that is part tongue-in-cheek, but it gets the point across and leads to some good natured ribbing from other coworkers.

On the other side, reward safety achievements. Use gas cards or coupons for free food as gifts. Do raffles and hand out a few prizes to the person that was the most safety-oriented. Whatever you do, make the reward something more tangible than a pat on the back.

Also you can post safety rules and violations on signs and place them all over your work floor, in the bathrooms, in the break areas, etc. Make sure they are at eye-level where people can see them, and color them accordingly so they are hard to miss. Use diagrams and stick people to represent the injury that could occur if you stuck your hand into the saw blade with the machine on. If may seem elementary, but your workers will see those drawings everyday and probably laugh at them, but the more they look at them, the more they remember, and the safer they just might be.

2. Make safety paramount

When you have a safe work environment, you have more productive employees. This is due to the fact that your safe machines are running like they should. Nobody is worried about something breaking or someone getting injured by doing certain jobs. Safe workplaces have fewer workers comp claims.

Obviously there is a direct link between safety and work comp. The less safe you are, the more work comp injuries you will have. And that leads into higher premium exposure. If your claims skyrocket, the costs increase, and that could increase the cost of your premium for your work comp policy. So it all begins with safety. Safety is the key to keeping comp costs down. Which, in-turn, controls premium costs.

3. Have well-defined safety policies and the need to implement them

If workers are not following the safety rules, that is a problem. A rare violator that has to wear the vest of shame is one thing. But if you have a guy breaking the safety rules everyday, you have an issue. You have to investigate why the worker is not following the rules. Document your findings, and then follow through with safety training or re-education on the proper safety function for the particular machine or device they may be using. Maybe they were taught by another employee to use the machine incorrectly. Whatever the reason, investigate it, document it, then retrain and follow through until the person understands and is capable of safely operating the device or doing the work task within your defined safety rules and procedures.

4. Can the employer fire a worker that disobeyed a direct, known safety protocol?

Wow, is this a Pandora ’s Box of a question!!!!! There are numerous case law decisions within any jurisdiction that comment on this matter. I hear this question ALL THE TIME! The answer is "Yes, sometimes" and "No, at other times."

My advice is to always consult your counsel and adjuster before you do anything. Improper termination may open yourself to a world of fines and legal issues, and even though you think you may be doing the right thing that is not for you to decide. Consult your attorney before ever making such a decision. The choice will vary by accident, and no two will be the same.

5. Safety violations cost employers money!

If people are hurt, they cannot do their job, which decreases production, which in turn decreases profit. Jobs get completed late, others have to make up for the gap in work, etc. As mentioned earlier, safety violations in any form will always cost you money. The safer you are, the more productive, the more profitable.

Think Zero Accidents as your goal! People say, "Oh, that's impossible." But it's only impossible if you don't try.

6. High employee morale helps to reduce losses

Several studies show the link between morale and workers comp losses. Happy workers are happy because they have jobs they like; they have manageable workloads, safe working environments, etc. Disgruntled employees are overworked, underpaid, and under stress. They typically are working with potentially unsafe materials, in an unsafe shop, where there is a lot of risk for injury. Sooner or later they will stumble upon that risk, and injure themselves.

Actually the studies linking morale to work comp show they are linked up mostly in subjective injuries: back pain, muscle pain, headaches, etc. The more unhappy the workforce, the more subjective claims seem to surface.

7. Timely claim reporting saves money

And as always, and we say it time and time again, the sooner you get that work comp claim to your carrier to be assigned to an adjuster, the quicker they are on the case, the better the result will be. The more you delay in calling it in, the more it will cost you down the road. WCxKit

So, remember, it’s never too late to start thinking about safety, and how it impacts your bottom line. Think carefully about each job task and what risks your workers face. Solicit feedback from your employees. Involve them in this process, and hear what they have to say. The more they are involved, the more they will participate, and the more successful your program will be. Be safe!

Author Rebecca Shafer, JD, President of Amaxx Risk 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. She is the author of the #1 selling book on cost containment, Manage Your Workers Compensation: Reduce Costs 20-50% www.WCManual.com. Contact: RShafer@ReduceYourWorkersComp.com.

NEW 2012 WORKERS COMP BOOK: www.WCManual.com

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SUBSCRIBE: Workers Comp Resource Center Newsletter

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.

An Open Letter to the Press, Business Community and People of North Dakota

Director — Thu, 02 Feb 2012 00:58:03 +0000

The authors of this letter are journalists, columnists, bloggers and content publishers for the workers' compensation industry across the United States. We are a politically and professionally diverse group. We do not agree on everything, yet find ourselves of one opinion on a highly critical matter. We are competitors who are now colleagues for a common cause; to bring light to a serious injustice being committed within your state.

The prosecution of Charles (Sandy) Blunt was, in our view, an outrageous and almost farcical event. It is, in the final analysis, a travesty that has damaged the national view of your state, hampered the operation of a State agency, and ruined the life of a good man wholly undeserving of such results. (WCxKit)

Sandy Blunt was Director of North Dakota's Workforce Safety & Insurance from May of 2004 until December of 2007. He was, as you are likely aware, prosecuted by state authorities for “misspending government funds”. Specifically, he was charged and convicted on two counts

1. During his almost 4 year tenure his agency spent approximately $11,000 on employee incentive items, including flowers, trinkets, balloons, decorations and beverages for Workforce Safety and Insurance employee meetings, and on gift certificates and cards in small denominations for restaurants, stores and movie theaters. Blunt personally approved some of these expenditures. Others were made by managers as part of daily operations under his watch. Not a dime went into an employee’s pocket, nor did Blunt personally benefit from any expenditure.  

2. His agency paid $8,000 to an employee, David Spencer, for sick pay when he was not apparently sick, and it also failed to collect $7,000 from Spencer when he left prior to the end of his employment agreement. The $7000 was for moving expenses incurred that prosecutors felt Spencer owed the state. Blunt’s position was that the agency was not entitled to collect these funds, since Spencer’s departure was not voluntary.

All told, the state prosecuted Sandy Blunt, and he is now a convicted felon for “misspending” $26,000 of government money.

No one has ever alleged that Blunt personally benefited from any of these expenditures. Blunt was acting like other capable, ethical North Dakota executives ‐ in the best interest of customers and of the mission of his employer. In our industry it is considered a best practice to provide employees and supervisors with incentives. It is not frivolous, it's necessary, and what every employer should do.

The first of these two charges would be, to many people, laughable if it were not for the damaging consequences associated with them. The notion that buying inexpensive incentive items for your employees could result in a felony conviction is simply stunning. This would not be elevated to a criminal status in most states in the nation. The fact that it is in North Dakota should have a chilling effect on businesses looking to move there.

The second and more serious charge, involving the sick pay and moving expenses of employee Spencer, has been fatally undermined by the revelation that the prosecutor in the matter, Cynthia Feland, withheld critical evidence from the defense – evidence that largely clears Blunt in this area. A disciplinary panel for the North Dakota Supreme Court has found on November 7, 2011 that

“Cynthia M. Feland did not disclose to Michael Hoffman, defense attorney for Charles Blunt, the Wahl memo, and other documents which were evidence or information known to the prosecutor that tended to negate the guilt of the accused or mitigate the offense.”

Withholding of evidence by prosecutors is one of the most serious acts of prosecutorial misconduct in North Dakota and all other states. In recognition of this, the panel recommended Ms Feland’s license to practice law be suspended. We urge that you read the entire report of the panel, including the penalties the board recommended be imposed on Ms. Feland. For the report, go here.

http://www.scribd.com/doc/72258971/Feland‐Ethics‐Panel‐Decision

Had the prosecutor not withheld evidence, in all likelihood the case would never have come to trial, and the reputation of Blunt and the WSI would be free of taint. The evidence in question shows that WSI’s auditor’s own findings backed Blunt’s position on payments related with Spencer. However, those findings were not made available to the defense, and the prosecutor was found to have allowed testimony to be given at the trial that directly conflicted with information she had. As we indicated, Feland, now a judge in your state, has been recommended for suspension and a fine over these findings.

Yet Sandy Blunt remains a convicted felon. His crime? Buying balloons, trinkets and $5 gift cards – for his employees, not for himself. For that, Blunt, who is married with two children, has had to spend half a decade, and untold thousands of dollars trying to clear his name.

Some of us have known Sandy for quite a while. Some have come to know him while learning of his situation. Others of us have never met Sandy, but recognize the tenuous nature of his treatment. Collectively we speak to thousands within our industry every day. Our opinions have been clear; this situation needs the light of truth shone brightly upon it. The time and resources expended prosecuting a man on such questionable grounds should be more closely examined, by the business community, workers compensation professionals and the media in North Dakota. (WCxKit)

Sandy Blunt is a good and decent man. He deserves better. So, it would seem, do the people of North Dakota.

Peter Rousmaniere
Consultant & Writer
Working Immigrants

Robert Wilson
President & CEO
workerscompensation.com

Joseph Paduda
Principal, Health Strategy Assoc, LLC
Managed Care Matters

Rebecca Shafer
Lower Your WC Costs

Julie Ferguson
Consultant & Editor
Workers' Comp Insider

David DePaolo
President & CEO
Work Comp Central

Henry Stern, LUTCF, CBC
InsureBlog

Tom Lynch
Founder & President
Lynch, Ryan & Associates, Inc.

Jon Coppelman
Senior Vice President
Lynch, Ryan & Associates, Inc.

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Ergonomics, Pre existing Conditions and Workers Compensation

Rebecca Shafer, J.D. — Wed, 01 Feb 2012 00:35:17 +0000

It is time to address a topic about causal relation in a workers comp case. This case involves a teacher and school aid in a library, where the desktop computer is being replaced by a laptop. Soon after the switch, both employees begin to complain about neck pain since the height of the monitor on the laptop could not be adjusted from person to person, and extended use was causing some neck pain. The insured wondered if the change to a laptop was causing the neck problems and if these would be considered as workers compensation cases. We discuss the investigation of causal relation here.

What does the treating doctor say in the medical records?

The most important aspects of this case will be the causal relation statements the physician makes. If the two employees are of the same height and build, why are they complaining of pain, more importantly how is the laptop situated, and how is that causing neck pain? Prolonged sitting in a non-comfortable ergonomic position can lead to strains of the neck, but at a normal desk this should not cause neck pain. Is the laptop screen at eye level or situated down inside the actual top of the desk, where the employees are looking down at the screen? Or is the laptop mounted on top of something where the neck is in a constant extended position? Are other employees complaining of pain or having a hard time viewing the screen of the laptop? WCxKit

It is important to remember in this situation that if an employee comes to an employer and complains of pain and wants to pursue a workers comp claim with supporting medical documentation stating a work injury is present, then it is the employer’s duty to call the claim in to the carrier. The adjuster will make the determination, if the claim is compensable. Certainly more than one employee complaining about the same issue can lead to a more convincing case, but it does not mean it will be automatically accepted. Take pictures of the desk and of these people sitting at the desk as they normally would and send those on to the adjuster as well, so the adjusters can see the setup of the work station and pass that information on to the physician. Being able to actually see the worker sitting as they normally would will help them arrive to the proper decision on the case.

Does either employee have a history of neck pain from another source?

One of the first questions the adjuster will ask is if either employee has a history of neck pain or prior surgery. This could predispose them to having pain if the neck is positioned in certain ways. Again it does not mean that the laptop setup itself is responsible for the pain. It could be pre-existing post-surgical pain that is the culprit. Prior auto accidents involving whiplash complaints can also contribute to neck pain in the future. Also the employees’ activities outside the workplace are unknown. Maybe one or both of them are engaged in activities that fatigue the neck, and this laptop exacerbated that non-occupational pain. A question about whether the injury could have another cause is part of a normal investigation in just about every workers compensation claim.

Is the workstation adjustable or not?

If these employees are of different height, can the chair or workstation be adjusted to properly fit them? And if so, are they still complaining about pain? If nothing is adjustable, are other employees of similar builds complaining about the position of the laptop screen? Why or why not? Again, if no other employees are complaining about any problem with the laptop, then go back to these two employees. What is the relationship to each other? Do these two often hang out at the school? Are they in common positions and have similar duties? How long are they actually sitting at this computer and how often are they required to be moving up and around during the day? All of these questions are part of a normal investigation the adjuster will do, and as the employer, try and gather as much of this information as possible to help the adjuster make the proper determination on the claim.

At the same time the claim is investigated by the adjuster, the incidents should be reported to the safety director who should review the workstation design. Consider having an ergonomic consultant review the set up. Ask your TPA or insurance carrier what resources are available for ergonomic consulting. Consider what other equipment could be provided to make the work station more comfortable.

Has the adjuster performed an IME or peer review yet?

Usually background searches have been completed for prior injuries, and the next thing is to gather all of the medical evidence and set an IME with a qualified physician or occupational medicine doctor to address the causal relation. Is there any objective evidence of degenerative arthritic conditions in the neck that can contribute to this pain? Was an MRI performed, and if so are there any objective results, and, if so, how can they relate to the ergonomics of the workstation? This should all be part of the normal investigation on the claim, and all of these questions should be included in the cover letter to the IME doctor, so that doctor can specifically address these questions with the correct answers, using objective medical evidence to back up the opinion.

What is the decision–is this compensable or not?

This is the million-dollar question. There are cases like this where these are accepted injuries under workers comp and similar cases where coverage is denied for similar complaints. The lesson here is that no two cases are the same. Maybe one of these employees has no pre-existing condition, and the other one has a prior surgery. This could play a role in which case is compensable and which one is not. It will be up to the adjuster on the file to make a decision on the compensability. Even if the employer disagrees with the decision, there is little to do to swing the case the other way. Let the adjuster do a thorough investigation and stand by the decision. If the worker disagrees with the decision, there are ways to appeal the decision and research to pursue that on their own. That is the choice of the worker. WCxKit

Summary

Ergonomic claims such as this one are going to happen at some point. The key thing to remember as the employer is to do a thorough investigation. Gather as much information as possible, even if it appears to not matter in the final outcome. The adjuster always prefers too much information rather than not enough. Take pictures, and assist the adjuster in any request they have. They will make the proper decision on the claim, since that is an adjuster’s job day in and day out. If, however, you disagree with the decision, make sure to talk this out with the adjuster and the claim supervisor.

Author Rebecca Shafer, JD, President of Amaxx Risk Solutions, Inc. is a national expert in the field of workers compensation. She is a writer, speaker, and 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. She is the author of the #1 selling book on cost containment, Workers Compensation Management Program: Reduce Costs 20% to 50%. Contact: RShafer@ReduceYourWorkersComp.com.

New 2012 WORKERS COMP MANAGEMENT GUIDEBOOK: www.WCManual.com

WORK COMP CALCULATOR: www.LowerWC.com/calculator.php

MODIFIED DUTY CALCULATOR: www.LowerWC.com/transitional-duty-cost-calculator.php

WC GROUP: www.linkedin.com/groups?homeNewMember=&gid=1922050/

SUBSCRIBE: Workers Comp Resource Center Newsletter

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.

Two New England Employers Cited for Injuries and Hazards

Robert Elliott, J.D. — Tue, 31 Jan 2012 13:25:56 +0000

The U.S. Department of Labor's Occupational Safety and Health Administration (OSHA) has cited Prolerized New England Co. LLC, doing business as Schnitzer Northeast, for 10 alleged serious violations of workplace safety standards at its Everett recycling facility, where two workers were injured. Proposed penalties total $70,000.

According to OSHA officials, the employees were performing maintenance work inside a large rotating drum used to sort scrap material for recycling when the drum activated, injuring them. OSHA's Andover Area Office conducted an inspection in response to the September incident and identified several serious deficiencies in the facility's hazardous energy control procedures, which should ensure machines are deactivated and their power sources locked out before employees perform maintenance work.(WCxKit)

In this case, the procedures were incomplete and not clearly communicated, training was inadequate, and the procedures were not reviewed to ensure that they were effective and understood by the employees.

The inspection also found that the employees were not trained to work in confined spaces, such as the drum, and were not provided a hot work permit for welding performed in the drum. Finally, the employees were exposed to the hazard of falling into the drum through an unguarded chute opening. OSHA assessed the maximum fine of $7,000 for each of the violations, for a total of $70,000 in fines. A serious violation occurs when there is substantial probability that death or serious physical harm could result from a hazard about which the employer knew or should have known.

"The unexpected startup of machinery during maintenance can injure or kill workers in seconds," said Jeffrey Erskine, OSHA's area director for Essex and Middlesex counties. "Preventing this hazard requires a combination of effective hazard control procedures, training and diligence to ensure that the proper safeguards are in place, in use and understood by workers."(WCxKit)

The company has 15 business days from receipt of its citations and proposed penalties to comply, meet with OSHA's area director or contest the findings to the independent Occupational Safety and Health Review Commission.

OSHA Fines Connecticut Employer for Exposing Workers to Injury

The U.S. Department of Labor's Occupational Safety and Health Administration (OSHA) recently cited G.A. Denison & Sons Inc. for 14 alleged willful and serious violations of workplace safety standards at an Old Lyme work site. The New London contractor faces a total of $110,000 in proposed fines, according to an OSHA report.

OSHA's enforcement action follows an inspection opened June 7, when Denison & Sons employees were observed being exposed to falls from heights of 15–26 feet while working without protection on both a scaffold and the roof of a building located at 69 Lyme St. (WCxKit)

In addition, OSHA found employees exposed to fall hazards while improperly climbing ladders and climbing ladders while carrying materials on their shoulders, as well as to head injuries from working without hard hats. These conditions resulted in citations for five willful violations carrying $73,700 in fines. A willful violation is one committed with intentional knowing or voluntary disregard for the law's requirements, or with plain indifference to worker safety and health.

Nine serious violations, with $36,300 in fines, have been cited for several other hazardous conditions, including overloaded scaffolding, a lack of eye protection for employees using nail guns, inadequate scaffold access, a lack of protection against falling objects, and a failure to provide employees with fall protection, scaffold, and ladder training. A serious violation occurs when there is substantial probability that death or serious physical harm could result from a hazard about which the employer knew or should have known. (WCxKit)

OSHA has placed G.A. Denison & Sons in its Severe Violator Enforcement Program, which mandates targeted follow-up inspections to ensure compliance with the law.

Author Robert Elliott, executive vice president, Amaxx Risk 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. He is an editor and contributor to Workers Compensation Management Program: Reduce Costs 20% to 50%. Contact: Info@ReduceYourWorkersComp.com.

WORKERS COMP MANAGEMENT GUIDEBOOK: www.WCManual.com

WORK COMP CALCULATOR: www.LowerWC.com/calculator.php

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WC GROUP: www.linkedin.com/groups?homeNewMember=&gid=1922050/

SUBSCRIBE: Workers Comp Resource Center Newsletter

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.

Mine Safety MSHA Reports Results for Impact Inspections

Robert Elliott, J.D. — Tue, 31 Jan 2012 13:22:59 +0000

The U.S. Department of Labor's Mine Safety and Health Administration recently announced that federal inspectors issued 374 citations, orders and safeguards during special impact inspections conducted at 18 coal mines and two metal/nonmetal mines last month.

According to the agency’s report, the coal mines were issued 292 citations, 28 orders and one safeguard, while the metal/nonmetal operations were issued 52 citations and one order.(WCxKit)

Special impact inspections, which began in force in 2010 following the explosion at Upper Big Branch Mine, involve mines that merit increased agency attention and enforcement due to their poor compliance history or particular compliance concerns, including high numbers of violations or closure orders; indications of operator tactics, such as advance notification of inspections that prevent inspectors from observing violations; frequent hazard complaints or hotline calls; plan compliance issues; inadequate workplace examinations; a high number of accidents, injuries or illnesses; fatalities; and adverse conditions, such as increased methane liberation, faulty roof conditions and inadequate ventilation.

As an example from recent inspections, an impact inspection was conducted during the second shift at D & C Mining Corp.'s underground coal mine in Harlan County, Ky. Inspectors arrived at the mine and immediately captured and monitored the mine phone to prevent advance notification of their presence. The inspection resulted in seven 104(d)(2) withdrawal orders, one 107(a) imminent danger order and 11 104(a) citations, of which 16 were designated significant and substantial.

The imminent danger order was issued when the inspection team found a cigarette lighter near the continuous mining machine, marking the second time this year that smoking articles were found underground at this mine. This condition provided an ignition source in the presence of combustible materials, loose coal and coal dust accumulations in an area with inadequate rock dust to prevent an explosion. The impact inspection was the sixth conducted at the mine since April 2010.

Inspectors wrote two of the withdrawal orders for inadequate roof and rib supports at the face area of the mine where miners normally work and travel during their shift. Violations included loose, unsupported draw rock, as well as wide roof and rib bolt spacing, all of which created the potential for roof and rib collapses.

Additionally, inspectors found inadequate rock dusting, use of a non-permissible cap lamp, accumulations of combustible material, an inadequate smoke search program, inadequate pre-shift examinations, improperly working parking brakes on mobile equipment, nonworking self-contained self-rescuer units, a poorly maintained roof drill dust collection system and inadequate illumination on the mine surface areas.

"The closure order is still one of the most effective tools inspectors have to bring about compliance, even during impact inspections," said Joseph Main, assistant secretary of labor for mine safety and health. "We will not hesitate to use this and other enforcement tools to protect the nation's miners."

As a second example, MSHA conducted an impact inspection Sept. 12 to 16 at Robinson Nevada Mining Co.'s Robinson Operation, a large surface copper mine located in White Pine County, Nev. MSHA issued 34 citations during the inspection, including 25 citations to the mine operator and nine to independent contractors working on mine property.

Among the hazards inspectors cited were inadequate testing of electrical grounding systems, and unattended pieces of mobile equipment that were left with engines running and parked on a grade without properly blocking the wheels. In addition, approximately 30 compressed gas cylinders were stored without caps to prevent injury to the valves which, if damaged, could pose an explosion risk. Inspectors also found an open excavation hole that was not supported to prevent material from falling onto workers.(WCxKit)

Since April 2010, MSHA has conducted 347 impact inspections, which have resulted in 6,187 citations, 584 orders and 22 safeguards.

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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.

What Insurance Agents Need to Know about Workers Compensation

Rebecca Shafer, J.D. — Mon, 30 Jan 2012 02:01:39 +0000

If you are going to sell business insurance to the business community, you need a strong basic understanding of workers compensation insurance. While companies will be concerned about having insurance for their buildings, inventory, and vehicles, and will understand the need for various types of property insurance, the same companies will look at work comp insurance as a governmental mandated cost of doing business.

As their agent, you need to be able to explain to your client business the importance of workers compensation and how it works.

While your clients, the companies, will think about their property insurance exposures, they will have a far higher frequency of workers compensation claims then property claims. Therefore, selling and servicing workers compensation insurance can be challenging for any agent, even experienced ones. The successful insurance agent will be the agent who can explain the advantages of all types of business insurance including workers compensation.(WCxKit)

A major part of the challenge of workers compensation insurance is the way it is different from the other various business lines. With property insurance, the cost of the claim can normally be ascertained fairly quickly and easily. The longer life of some work comp claims, along with the variables of medical treatment, income replacement, and a third party (the employee) who has a different perspective and different motivation, makes the evaluation of the cost of the work comp claim much more complex.

The complexity of work comp is what often keeps insurance agents from being as educated in workers comp as they are in the other insurance products they sell and service. However, learning the parameters of work comp is not nearly as difficult as you might think. To assist you in becoming more proficient in work comp, we have put together a guide that has become quite popular both with agents/brokers and with risk managers/corporate financial control management.

Our guide will assist agents in better understanding the entire work comp process which will assist you, the agent, in providing a higher level of service to your clients when they have a claim or even when they just want a better understanding of workers compensation. The chapters of the guide that will be of special interest to insurance agents include:

1. How an employer should assess their work comp program.

2. How the employer should structure their work comp team.

3. The forms and documents the employer will need to process/submit their work comp claims.

4. The training the employer will need in their work comp program.

5. The management and monitoring of the employer’s work comp program.

Additionally, as the agent, you will want to understand what is going on with the client’s work comp claims. Learning more about the claim progress will allow you to answer the questions your clients have about their claims. Knowing the differences between the way property and work comp claims are handled will allow you to better service your clients. Some of the topics that benefit insurance agents and allow for a better understanding of workers compensation include:

1. The role of the third party administrator in the work comp claim.

2. The differences between bundled and unbundled services.

3. The importance of proper account handling instructions.

4. The role of medical management in the claim.

5. The best practices of work comp claim handling.

6. The ability of the employer to control the selection of the medical providers.

7. The importance of a return to work program at the client.

8. The importance of a solid safety program.

9. How to fight fraudulent claims. WCxKit

It is important that the agent can answer all of their client’s insurance questions including the questions on workers compensation. We encourage you to learn work comp to the point that you can answers all your client’s questions. If you want to know more about cost containment, learn more about our book Workers Compensation Management Program: Reduce Costs 20% to 50%.

NEW 2012 WORKERS COMP BOOK: www.WCManual.com

WORK COMP CALCULATOR: www.LowerWC.com/calculator.php

MODIFIED DUTY CALCULATOR: www.LowerWC.com/transitional-duty-cost-calculator.php

WC GROUP: www.linkedin.com/groups?homeNewMember=&gid=1922050/

SUBSCRIBE: Workers Comp Resource Center Newsletter

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.

OSHA Finds Two Employers Exposed with Hazards

Robert Elliott, J.D. — Mon, 30 Jan 2012 01:52:35 +0000

The U.S. Department of Labor's Occupational Safety and Health Administration (OSHA) reports it cited American Railcar Industries. Inc., headquartered in Saint Charles, Mo., for 10 serious safety violations after an employee was electrocuted while performing repair work on a tanker-style railcar July 25 at the company's work site near Marmaduke, Ark.

"Exposing workers to electrocution hazards without proper safeguards and training is inexcusable," said Carlos Reynolds, the agency's area director in Little Rock. "It is the employer's responsibility to create a safe and healthful workplace where preventable hazards don't cost workers their lives."(WcxKitz)

Upon receiving a fatality report from the employer, OSHA's Little Rock Area Office initiated an investigation July 26 at the company's facility on Highway 34 East and found that workers were being exposed to electrical shocks from welding equipment.

The violations include failing to provide personal protection for employees conducting cutting and welding operations; properly mark the power supply and control boxes for voltage, current and wattage; use fixed wiring instead of flexible cords and protect the wiring from possible damage; remove defective electrical equipment from service; and inspect and mark web slings. A serious violation occurs when there is substantial probability that death or serious physical harm could result from a hazard about which the employer knew or should have known. Proposed penalties total $61,400

American Railcar Industries, which employs about 260 workers at the Marmaduke facility and about 1,500 workers nationwide, designs and manufactures railcars.(WcxKitz)

The company has 15 business days from receipt of the citations to comply, request an informal conference with OSHA's area director in Little Rock or contest the citations and penalties before the independent Occupational Safety and Health Review Commission.

Pennsylvania Employer Fined for Exposing Workers to Hazards

The U.S. Department of Labor's Occupational Safety and Health Administration (OSHA) recently cited QG LLC for eight serious violations of the process safety management standards at its Atglen facility in response to an employee complaint. Proposed penalties total $54,000.

"Process safety management prevents the unexpected release of toxic, reactive or flammable liquids and gases in processes involving highly hazardous chemicals," said Albert D'Imperio, OSHA's area director in Philadelphia. "It's vital that QG ensure safeguards are in place to protect the safety of workers at this facility." (WCxKit)

The serious citations issued for the process safety management standard violations include failing to provide information pertaining to the equipment being used, establish written operating procedures and safe work practices, conduct employee training, conduct a pre-start up safety review, implement written procedures for ongoing integrity, develop procedures for management of change, certify that compliance was evaluated at least every three years, and ensure that installations of equipment in hazardous locations were intrinsically safe or approved for the hazardous location.

A serious violation occurs when there is substantial probability that death or serious physical harm could result from a hazard about which the employer knew or should have known.

OSHA's standards contain specific requirements for the management of hazards associated with processes using dangerous chemicals. Additional information is available online at http://www.osha.gov/SLTC/processsafetymanagement/index.html.

Headquartered in North Haven, Conn., QG LLC is a web offset printing company with approximately 240 employees at its Atglen site. (WCxKit)

The company has 15 business days from receipt of the citations to comply, ask for an informal conference with OSHA's area director or contest the citations and proposed penalties before the independent Occupational Safety and Health Review Commission.

Author Robert Elliott, executive vice president, Amaxx Risk 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. He is an editor and contributor to Workers Compensation Management Program: Reduce Costs 20% to 50%. Contact: Info@ReduceYourWorkersComp.com.

2012 NEW WORKERS COMP MANAGEMENT GUIDEBOOK: www.WCManual.com

WORK COMP CALCULATOR: www.LowerWC.com/calculator.php

MODIFIED DUTY CALCULATOR: www.LowerWC.com/transitional-duty-cost-calculator.php

WC GROUP: www.linkedin.com/groups?homeNewMember=&gid=1922050/

SUBSCRIBE: Workers Comp Resource Center Newsletter

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.

WC Basics 101 – Kansas Workers Compensation

Rebecca Shafer, J.D. — Fri, 27 Jan 2012 00:42:10 +0000

Workers Compensation Laws change frequently. This is only a summary; a complete copy of the most up-to-date version can be found at: www.WorkCompResearch.com , an excellent service.

In Kansas workers compensation coverage is compulsory as to all employment, including corporate executives and employees of charitable organizations. Coverage is elective for individuals, partners or the self-employed. There are some exceptions. Real estate brokers and real estate salespeople on commission are excluded from the compulsory requirements. Also, farm labor and employees of any employer whose gross annual payroll is $20,000 or less are excluded from compulsory coverage.

Obtaining Coverage

To obtain workers compensation coverage in Kansas, the employer has three options which are

purchasing a workers compensation insurance policy from a state approved insurance company
applying to and being approved for self-insurance status with the Kansas Department of Labor.
being a part of a group-funded self-insurance plan that has been approved by the Kansas Department of Labor

Claim Reporting

The employee must provide notice of the injury to the employer with 10 days and up to 75 days with just cause. The actual claim of the employee must be served on the employer within 200 days after the accident, or last payment, or within 1 year of the employee’s death with death occurring within 5 years after the date of the accident. WCxKit

Medical Benefits

In Kansas, the employer selects the medical provider for workers compensation claims. The employer is required to provide all reasonable and necessary medical care free of any charges to the employee. The employer is also liable for up to $500 of employee incurred medical bills at a non-authorized doctor. The employee can also apply to the Director of Workers Compensation for a change of doctors. The employee is entitled to all medical treatment needed to cure or relieve the effects of the injury. Prayer or spiritual treatment is permitted by agreement.

Temporary Total Disability Benefits

The temporary total disability (TTD) benefits are calculated as two-thirds of the employee's average weekly. The maximum amount of TTD benefits that can be paid is $555.00 per week. The state maximum is subject to annual increase/decrease each July 1st, based on the state’s average weekly wage. The state minimum weekly benefit is $25.

The first 7 days of disability (the waiting period) is not paid to the injured employee unless the employee is disabled for more than 21 days. TTD benefits can be paid until a cap of $100,000 has been reached.

Temporary Partial Disability Benefits

In Kansas if the employee is able to return to any type of work, but at a lesser rate of pay then the amount the employee was earning prior to the injury, the employee is entitled to temporary partial disability (TPD) benefits. The TPD benefits are paid at two-thirds of the difference between the pre-injury wage and the post-injury wage. The TPD benefits are paid for up to a maximum of $100,000. The TPD benefits plus the post-injury pay rate cannot exceed the state's maximum indemnity benefits rate.

Permanent Partial Scheduled Disability

Kansas uses a Schedule to establish the value of an injury to all extremities, the shoulders, eyes and hearing. Each body part has a set number of weeks it is worth with a shoulder being worth 225 weeks of compensation and the number of weeks decreasing with other extremity body parts having lesser value down to a toe, other than a big toe, being worth 10 weeks of compensation. A 20% loss of use of the arm, which is scheduled at 210 weeks, would result in a permanent partial scheduled disability award of 42 weeks (210 weeks X 20%).

Permanent Partial General Disability

When the employee sustains a permanent partial general disability of a body part not listed on the Kansas Scheduled Injuries list and the employee is not permanent totally disabled, the employee receives permanent partial general disability. If the employee is able to return to work and is earning at least 90% of the average weekly wage, the employee is given a percentage of the whole body impairment based on the AMA Guidelines, Fourth Edition. The maximum in weeks is 415 weeks. An employee with a 10% rating would get an award of 41.5 weeks of compensation. The maximum an employee can collect for permanent partial disability is $100,000.

Permanent total disability

Kansas permits the employee to collect a maximum of 415 weeks of indemnity benefits for all types of indemnity combined, but the total amount of benefits collected for permanent total disability is $125,000 instead of $100,000 (the amount of TTD benefits paid to the employee is included in the $125,000 indemnity benefit cap).

Death Benefits

The burial expenses in Kansas are covered for a work-related death up to $5,000. The death benefits for a dependent spouse and children follow the same guidelines as TTD benefits – two-thirds of the average weekly wage – currently a maximum of $555 week, and a minimum survivor’s benefit of $370 per week, except there is a dollar maximum for death benefits in the amount of $250,000 with children, or $200,000 without children. If there is no spouse and no dependents, the death benefit is reduced to $25,000. WCxKit

Vocational Benefits

Vocational Rehabilitation is on a voluntary basis in Kansas. However, once it is started, it cannot be terminated without the agreement of the employee. The vendor of the vocational rehabilitation may be changed for good cause supported by substantial evidence. If so, the employee may select the replacement vendor from a list of three qualified vendors provided by the employer.

Author Rebecca Shafer, JD, President of Amaxx Risk 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. She is the author of the #1 selling book on cost containment, Manage Your Workers Compensation: Reduce Costs 20-50% www.WCManual.com. Contact: RShafer@ReduceYourWorkersComp.com.

NEW 2012 WORKERS COMP BOOK: www.WCManual.com

WORK COMP CALCULATOR: www.LowerWC.com/calculator.php

MODIFIED DUTY CALCULATOR: www.LowerWC.com/transitional-duty-cost-calculator.php

WC GROUP: www.linkedin.com/groups?homeNewMember=&gid=1922050/

SUBSCRIBE: Workers Comp Resource Center Newsletter

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.