Employers who are conscientious about the cost of the workers compensation insurance coverage know the importance of having an established Return to Work program. (See our Transitional Duty Policies and RTW programs). The employers who provide light duty or modified duty work for the injured employees lower the overall cost of workers compensation through lower claim cost. Return to Work programs result in the reduction of the overall amount of time the employees are off work, a reduction in the overall cost of physical rehabilitation and a reduction in the overall cost of medical care. The lower claim cost results in lower workers compensation premiums.
Many employers have tried Return to Work programs, only to give up as the modification of the employee’s regular duties is often difficult to accomplish while maintaining any sense of productivity. Employers are often reluctant to pay employees the regular wages if the employee is not accomplishing anything. The cost of wages paid to a totally unproductive employee often exceeds the increased cost of workers compensation. [WCx]
The dilemma of the unproductive injured employee who should be returned to light duty work, but the employer cannot afford the cost of doing so, has led to a whole new industry of companies that assist employers in a return to work program. There are companies, sometimes referred to as the reemployment service industry, that now specialize in placing injured employees in light duty work on a temporary basis.
These third party return-to-work placement firms
(RTW directory) often have contacts as various charitable organizations where they will arrange for the injured employee to work until the employee is able to return to his/her regular job without restrictions.
For example, consider the long-haul truck driver who injured his back unloading the truck. The medical providers advise the employee can return to work, but should not lift more than 10 pounds, should not stand for more than an hour and who should not be seated for more than an hour. The restrictions on lifting and being seated eliminate the truck driver from doing his normal job, as the job cannot be modified enough to allow the truck driver to work. The third party job placement firm arranges for the truck driver to work at a local charity sorting donated clothes. The work can be done either standing or seated, and the employee is allowed to change from standing to being seated at will.
The charity pays the employee for the hours. Often, the rate of pay is lower than what the employee would have earned in the regular job. The difference between the employee’s regular earnings and the employee’s light duty earnings is partially covered by the workers compensation insurance. For example, the employee was earning $600 per week and the temporary total disability (TTD) rate while the employee is not working is $400 per week, two-thirds of the regular wages. If the employee is working light duty for the charitable organization, and earning $300 per week, the employee would not receive TTD but temporary partial disability (TPD) which pays the employee two-thirds of the difference between the regular wages and the temporary light duty wages. In this example, the employee would be paid a TPD rate of $200 per week. [Calculated: $600 regular pay minus $300 light duty pay results in a $300 reduction in earning capacity. $300 X 2/3 TPD rate = $200]. This is the win-win situation every employer wants. The employee receives $500 per week ($300 wages at the charitable organization plus $200 TPD) instead of $400 per week, while the cost of indemnity benefits for the insurer or employer is reduced from $400 per week (TTD) to $200 per week (TPD).
If the rate of pay from the charity exceeds what the employee would have made on the job, no temporary partial disability payments are owed to the employee.
The light duty placement companies do several things to ensure the success of the temporary duty process. They will interview the prospective employer to verify the job requirements are within the work restrictions given by the medical provider, prepare the employee for the job interview if one is required by the temporary employer, provide directions to the temporary employer, verify attendance, follow-up with both the temporary employer and the employee to be sure both are comfortable with the new working situation, and when necessary, review the new job with the employee’s physician.
If the employer can return the injured employee to work at the old job on a modified basis, that is the best return to work program. If the employer cannot return the injured employee to work on a modified duty basis, the placement of the employee in a temporary light duty job for another employer is always preferable to the injured employee not working. [WCx]
If you have questions about the return-to-work through a light duty job placement firm, please contact us for assistance and refer to our resource directory.
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.
WORKERS COMP MANAGEMENT MANUAL: www.WCManual.com
MODIFIED DUTY CALCULATOR: www.LowerWC.com/transitional-duty-cost-calculator.php
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.
©2012 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law. If you would like permission to reprint this material, contact us at: Info@ReduceYourWorkersComp.com.
A risk manager or workers compensation coordinator understands the importance of bringing employees back to work as quickly as possible following an injury. However, for the temporary duty job or for the modified duty job to be worthwhile to the employee and productive for the company, it needs to be more than having the employee to answer the phones or sweeping the floor.
There are differences between a temporary duty job and a modified duty job. A temporary duty job is a regular job within the company that the injured employee is assigned to on a temporary basis. A modified duty job is the employee’s regular job with aspects of it changed or removed to accommodate the physical restrictions of the injured employee. [WCx]
The challenge is to place the employee in a temporary duty job that will match the restrictions placed on the employee’s work by the medical provider while producing a benefit for the employer. The physical demands of the employee’s regular position are often such that if lifting, standing, and bending are eliminated, there is nothing left in the injured employee’s regular job, and a temporary duty job is necessary to return the injured employee to work.
For the purposes of this article, we are assuming there is a written job description for each and every position that is more detailed than “makes stuff”. If not the human resources department can have a job description designed to use each time they are recruiting to fill a position.
To determine what type of temporary job the injured employee can do, conduct an assessment of the employee just like hiring the employee for the first time. If the injured employee’s job skills are subtracted from those skills he is unable to do due to his injury, what is left is a fairly good rendition of the type of temporary job the employee can do.
To assess the injured employee’s capabilities to do a temporary duty job, use the following for each job considered for the employee’s placement.
What are the physical demands of the temporary duty job being considered? [If the employee cannot meet the physical demands of the temporary duty job, the temporary duty job can be eliminated from further consideration and a different job should be considered.]
- List the essential requirements of the temporary duty job.
- List the major responsibilities of the person in the temporary duty job.
- Does the job require any particular educational background?
- Does the job require any particular training?
- Does the employee have the technical skill necessary for the job?
- Will all the necessary tools and equipment for the job be available to the employee?
- Are language skills, or bi-lingual skills necessary in the temporary job?
- Are mathematical skills necessary in the temporary job?
- Does the temporary job require strong reasoning abilities or the ability to make quick decisions?
- Does the job require any travel that could interfere with his medical care?
- Will the work environment of the temporary job conform to the employee’s restrictions?
Once each aspect is considered, the list of potential jobs is shortened to an essential few. If you have more than one job to place the injured employee in, then consider where the employee would provide the most benefit to the company, or which job needs that worker the most. If there are not any jobs to accommodate the employee’s abilities and skills, then consider which job will need the least modification or adaptation for the employee to perform the job.
While on the surface this might seem like a lot of work to place the employee back at work for 15, 30, or 60 days before being recovered enough to assume prior job duties, keep in mind the employees who are placed back to work are paid less in indemnity benefits while recovering faster than peers at home unable to return to work. [WCx]
Temporary job placement and modified duty will save the employer money through increased production and lower workers’ compensation cost. We strongly recommend providing the injured worker a job within physical restrictions as soon as possible after the injury.
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.
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
Things are changing in workers comp. Lost time has become something to be limited, a concern that did not always receive the highest priority in the past.
The reasons are clear: a less than powerful economy and a rising cost of living. Return to work, for decades in NY comp, has been viewed as a way to deprive a worker of a settlement and a way to deprive a lawyer of a substantial fee. But a mounting sense of uncertainty has changed that.[WCx]
For the employer, having a plan, not necessarily firm written guidelines, for returning employees to have some form of useful activity will have large benefits, and will not meet with the forms of resistance encountered in the past. A lawyer who ignores a return to work offer made to a client is playing a dangerous game, as recent court decisions have shown.
Employers who are not large enough to warrant an ongoing RTW program have traditionally stated, “We have no light work”, but that misses opportunities. Naturally, prior to most accidents, the mid-size or smaller employers probably do not have a firm plan in place, but that does not mean that something, somewhere, somehow cannot be done.
Doing something without having a prior plan in place has certain advantages. It means that whatever is tried is more likely to be a good fit with the circumstances than a prior plan. What is planned when nothing has yet happened is built on assumptions, not facts.
The first, and strongest gain from an employer meeting with an employee and exploring a RTW plan is to shift the relationship for both from passivity to active measures. And that means a rise in morale for both.
If the employer cannot think of useful work within the limits on activity imposed by an injury, then both the employer and employee should consider a joint search for light, but temporary, work in the general area. The advantage to this effort is that the employee, and the employee’s doctor, will also start thinking in terms of return to work.
In all of this, the comp board, the carrier/TPAs and the lawyers have been set aside. The comp law, at least in NY, does not give any of those the power to direct, or prohibit, return to work efforts.[WCx]
RTW efforts encounter many problems, both small and large, which will be discussed in the next piece.
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
MODIFIED DUTY CALCULATOR: www.LowerWC.com/transitional-duty-cost-calculator.php
WORKERS COMP MANAGEMENT MANUAL: www.WCManual.com
VIEW SAMPLES PAGES
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.
©2012 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law. If you would like permission to reprint this material, contact us at: Info@ReduceYourWorkersComp.com.
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
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.
©2012 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law. If you would like permission to reprint this material, contact us at: Info@ReduceYourWorkersComp.com.
Many companies simply don’t offer light duty. Instead, they say to their injured workers, “If you are not 100 percent then you are no good to me.” These same employers then complain when they go over their loss run about how much they are spending on shorter (10-30 days) lost time claims.
Typically wage expense on these claims is an employer’s biggest expense. Some higher wage earners can rack up a hefty wage cost in a short amount of time. Meanwhile, the medical cost for their claims may be a few thousand dollars, tops. (WCxKit)
Here are seven ways to keep those little lost-time claims from adding up in the long run.
1. Create Light Duty Work for All Restrictions
Depending on company size, there are a lot of easy jobs a person with restrictions can do — freeing up a healthy employee to do non-restrictive tasks. Light cleaning, inventory, answering the phone, ordering parts and supplies — all of these are necessary tasks in every company. A person with
short-time, restricted duty may be assigned to help on these jobs or other light work until they are able to return to full duty, always dependent on the restrictions. Light duty keeps the employee working, and makes it easier to transition back to full-duty work.
2. Make Detailed Job Descriptions for All Available Light Duty Positions
Physicians usually ask for a job description before they release an injured worker
back to work. If you have a good breakdown of what the various job tasks are, it makes it easier for the doctor to decide if the employee can do those jobs. Pay attention to the details of these jobs as well, you don not want an injured employee making the injury worse through their light-duty assignment.
3. Make Sure the Employer Contacts the Clinic to Say Light Duty is Available
Who knows what the employee is telling the doctor about the day-to-day job duties? Some claimants wanting to remain off work inflate their job duties to make it sound like there is no way they could
return to work until they are at full ability.
If the employer calls or faxes over a job description the doctor may feel more at ease about releasing an injured worker back to light duty. Also, some doctors flat out ask the employee if there is light duty available and most the time the employee will say no, even when it is known there is light duty, in an effort to remain out of work longer and collect a check before returning to full duty. Employers must follow up and make sure they talk to the right person at the clinic about getting the employee back to work in an assignment consistent with their medical restrictions.
4. Offer Full Pay for Light Duty Work Instead of Partial/Reduced Pay
A common deterrent to an employee not wanting to come back on light duty is the employer drops the wage rates to coincide with the light-duty job tasks. This action defeats the purpose of bringing the employee back to work on light duty. Even though the tasks are below the employee’s experience level, think of light-duty assignments in the short-term, and be flexible with the pay. The injured worker is not going to be on light-duty work forever and getting the worker back to work is the important thing.
5. Talk to the Clinic/Physician About Your Workplace and the Work it Performs
In addition to faxing a job description, ask to talk directly to the physician. This will surely make the doctor feel better about releasing an employee back to work. Talking to the employer reassures the doctor the tasks assigned will be performed properly within the medical restrictions, and that the employer will provide help on certain jobs if the injured worker needs it. In addition, most physicians can provide work restrictions over the phone instead of waiting until the next appointment to release the worker back to light duty.
If you cannot reach the doctor ask for the office manager or medical/nurse assistance. Tell them a job description was faxed and that you want the doctor to address whether or not the employee is able to perform the light duty tasks; and if not, why. The more persistent you are, the quicker the doctor will be to provide restrictions. The squeaky wheel gets the grease.
6. Light Duty Work Tasks Can Motivate Workers to Get Back to Full Duty
Most people don’t like cleaning, phone work, or simple mundane tasks for very long. If workers know these tasks are a consequence of injury, they are less likely to milk their claim. Good workers hate being hurt and want to return to normal as soon as possible. If they know they will not be sitting at home idle, and instead will be answering the phone at work, it will shave time off of their claim and motivate them to be released from the doctor to full duty.
7. Think Of The Bigger Picture
Even if you do not have a lot of claims at your workplace, think about the cost in the big picture. Think quarterly and/or annually about the savings you will realize come the end of the year. As mentioned, wages are the biggest cost in short-term, lost-time claims. By keeping the injured employee working so they do not lose any time at all, you provide them with a job while they are injured, and also provide a service to the company. Before you know it they will be full duty without incurring any further lost time from their normal work duties. (WCxKit)
A good light-duty work program has a ton of benefits and you can get injured workers back to work utilizing the tips outlined above. This will not only save costs, but will also make the workplace more functional for injured workers. It is important to create and have on-hand, up-to-date, detailed job descriptions, as well as someone at your workplace following up with clinics to make sure they have the correct information regarding your light-duty work program. Once everyone is on the same page, your workers and your assigned occupational clinic will know what is expected of them when workers have a minor injury.
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
Many companies use transitional work programs to return temporarily injured employees to the workforce in a limited capacity until they are physically able to resume their original, full-time duties.
This is a good idea because the longer an employee is out of work, the less likely they are to return EVER. (WCxKit)
No one is suggesting cheating employees out of benefits, rather, keep your company’s financial health and your employees’ mental health in mind.
Sitting around on a couch and receiving partial payment really isn’t good for anyone. Most people do better if they have a destination to go to each day.
Perhaps one department needs inventory taken, or another department requires a card filing system or someone to answer telephones. Companies can have recuperating employees perform these tasks, thus helping to boost productivity.
While employers have traditionally used transitional duty programs only for work injuries, many companies are adopting them for non-occupational injuries as well.
If an employee can come back at half-capacity or perform duties related to his or her job, though not the entire job, this benefits both the company and the employee.
Transitional work positions can be located in the same or a different department, or even in another company or operating division. Some employees perform transitional work program duties in the community as a volunteer in an employer-sponsored volunteer activity, or in a commercial vocational rehabilitation return-to-work center. In these instances, employers should provide transportation for the employee to the work facility to demonstrate continued involvement and concern for his or her recovery.
Forward-thinking companies may use transitional duty for maternity leave, bereavement, mental illness, addiction and some types of sick time. These companies are taking a comprehensive approach to “absence management.”
Transitional work programs have the advantage of allowing injured employees to regard themselves as “actively employed” and thus productive and valuable members of the workforce.
This is good for your employee.
When a worker is injured, the employer must maintain contact with the employee throughout the recovery period so he or she does not become “psychologically disemployed.” The phenomenon of “psychological disemployment” occurs when employees are away from the work environment for an extended period. During this period, employees begin to perceive themselves as having become “distanced” from the company — that is, the same company paying their workers compensation benefits.
These programs are also financially beneficial for the company because by keeping the employee at work, the employer realizes significant workers compensation cost reductions.
Transitional work programs also help decrease short- and long-term disability insurance or wage continuation costs for non-occupational injuries.
And although employees in a transitional work program assignment may be less than 100% productive, having an injured employee working part-time in a limited capacity is more cost-effective than having one who does not work at all.
Many companies, however, are reluctant to
initiate transitional work programs. Some employers believe worker unions will not accept these programs, or the programs themselves will not be time- or cost-effective.
But evidence proves transitional work programs can be very cost-effective.
A well-managed transitional work program can result in a return-to-work rate of up to 90% for injured employees returning to the job within four days after the injury.
Significantly shortened workers compensation claims in turn result in lowered indemnity costs as the companys workers compensation loss experiences shows overall improvement.
Concerns suggest the primary barriers to setting up transitional work programs are attitudinal in nature.(WCxKit)
Therefore, to implement successfully transitional work programs, risk managers must help convince their companies, company employees and treating physicians that transitional work programs are beneficial for all concerned.
You need transitional work duties available in your workers compensation program. Find out why #WorkersComp.
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 or 860-553-6604.
©2010 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law. If you would like permission to reprint this material, contact Info@ReduceYourWorkersComp.com.
Remember the question we often hear is “Okay, we want a successful return to work program, but how is it done?” and we know achieving a proficient return to work program requires EFFORT on the part of the employer beyond placing the injured employee back into his/her previous job with instructions “not to pick up anything heavy.”
Employees benefit from awell-constructed return to work program by:
1. A reduction in the economic impact on the employee who is receiving a regular salary as opposed to the lower amount received in workers comp indemnity benefits.
2. A reduction or elimination of the psychological effects of being separated from the work place.
3. It allows the injured employee to maintain the social network and emotional ties to the work place and remain a part of the work environment. (WCxKit)
4. A faster recovery from the injury – research has shown. (Inactivity leads to muscle and joint stiffness causing a negative effect on the employee's ability to recover from the injury).
Overcoming Roadblocks
Some employers run into roadblocks when trying to construct their RTW program. There are valid reasons preventing the employer from providing customized transitional duty. Some of the roadblocks are:
1. Union contracts
2. Inability to alter machinery or equipment.
3. The necessity of the employee being in top physical shape to perform the job.
An approach used by many employers to deal roadblocks to their RTW program is to have an alternative “modified duty off site” program. When the employee's restrictions or other barriers prevent the employee from working at the job site, placement of the employee at a non-profit charitable organization is an excellent alternative. The employee remain productive and does not get into the daytime television syndrome. The employer gets a charitable donation for the value of the salary and benefits paid to the injured worker.
Non-profit charitable organizations to consider:
1. Thrift stores like Salvation Army and Goodwill
2. Homeless person shelters
3. Animal shelters
4. Meals-on-wheels
5. Food banks
6. Literacy programs
7. Senior centers
While every type of charitable organization may not be available in the area of the employer, the odds are there is a charitable need the injured employee can meet regardless of where the employer and employee are located.
Surprise!!!! Unintended Consequences of Volunteer Work
There are employees who genuinely enjoy the volunteer work perhaps because the type of organization interests or “strikes a chord” with them.
One in particular was placed with an animal shelter and after he was released to full duty, he committed to continuing to volunteer as needed because he supported the cause.
Another enjoyed her temporary assignment creating toy displays in a thrift store. Interestingly, it was reported that toy sales increased 10% thanks to her creative efforts.
It seems finding an assignment employees enjoy and their motivation to support their community are keys in continued volunteering. Relationships are also developed, especially during longer assignments strengthening community bonds.
As there is the risk an employee may enjoy the modified duty off site alternative too much, the employer should structure it the same as a transitional job at the work place with a set maximum time limit of 15-30-45-60 or 90 days depending on the nature and severity of the employee's injury. The employer (or the nurse case manager) then works with the non-profit organization to be sure the employee's physical requirements are increased per the guidelines from the treating physician. (WCxKit)
A properly constructed RTW program saves the employer workers compensation cost and reduces the impact of lost employee production. The employer who puts forth the effort to construct their RTW to meet both their needs and the needs of the employee will enjoy significant cost savings while building employee loyalty and morale.
Author Rebecca Shafer, JD, President of Amaxx Risks Solutions, Inc. is a national expert in the field of workers compensation. She is a writer, speaker and website publisher. Her expertise is working with employers to reduce workers compensation costs, and her clients include airlines, healthcare, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing.
Contact: RShafer@ReduceYourWorkersComp.com or 860-553-6604.
Comp Calculator: http://www.LowerWC.com/calculator.php
Modified Duty Calculator: http://www.LowerWC.com/transitional-duty-cost-calculator.php
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Do not use this information without independent verification. All state laws vary. You should consult with your insurance broker or agent about workers comp issues.
©2010 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law. If you would like permission to reprint this material, contact Info@ReduceYourWorkersComp.com.
Most employers realize a properly constructed return to work (RTW) program can have a major positive impact on the cost of workers compensation.
The question we often hear is “Okay, we want a successful return to work program, but how is it done?”
Achieving a proficient return to work program requires EFFORT on the part of the employer beyond placing the injured employee back into his/her previous job with instructions “not to pick up anything heavy.”
A properly constructed RTW program must be integrated into the overall loss management program; an effective transitional duty program and early return to work program.
Effort requires following these key points:
22 Key Points in Constructing a RTW Program
1. Immediate reporting of all accidents.
2. Immediate medical intervention including nurse triage.
3. Prompt investigation of the accident.
4. Regular and on-going contact with the employee.
5. The proper selection of the treating physician (where allowed by statute).
6. Each transitional duty position is reviewed on a weekly basis (to give the employer the flexibility to withdraw the RTW offer if it is not working out).
7. The transitional duty positions have a time limit of 30 to 90 days depending on the nature and severity of the injury. (WCxKit)
8. A written policy outlining what is required of the employee, the employee's supervisor and the employee's department.
9. Identification of appropriate lost time alternative positions matching the employee's medical capabilities.
10. A team effort between the employer, the employee and the medical provider.
11. As the employee improves medically and capabilities improve, the transitional duty position should be flexible to allow the employee to do more work.
12. Utilization of the employees’ suggestions on how they can do more work while on transitional duty.
13. Active involvement of the nurse case manager in customizing the transitional duty work to the medical restrictions.
14. The transitional duty position provides work that is meaningful and productive.
15. There is customization of the transitional duties for each injured employee.
16. The modified duty position matches the worker's capabilities and medical restrictions established by the medical provider.
17. The transitional duty position allows for a progression in the employee's physical abilities.
18. The employee knows the new duties are transitional duties and will not be a permanent new job description.
19. The transitional duty is designed to return the injured employee to the full-time duties in a productive and safe manner.
20. The transitional duty permits the injured employee to work partial days, if needed, and progress to full-time work.
21. The transitional duty does not interfere with the employee attending medical treatment for the workers comp injury.
22. The employee's supervisor, manager and department are not penalized if the injured employee's production is lowered than the production of a non-injured employee. (WCxKit)
Take a deep breath because you’ve only started… There are a few more very important steps to take before your RTW plan is set and you, the employer, are actually saving money and, just maybe, seeing a reduction in your “mod.”
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.
Do not use this information without independent verification. All state laws vary. You should consult with your insurance broker or agent about workers comp issues.
©2010 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law. If you would like permission to reprint this material, contact Info@ReduceYourWorkersComp.com.
Trinity International Corp., a holding corporation for 89 other and various companies, recently reduced incurred workers’ compensation losses by 79%; medical costs by approximately 50% and 99% of injured employees returned to work within 10 days. Trinity teaches its divisions to manage claims internally, returning employees to work as soon as medically able.
One of Trinity’s secrets in reducing work comp costs so dramatically was they actively involved their insurance carrier to help them return injured employees to their jobs. Containing the costs of workers’ compensation requires teamwork on the part of all parties involved. Trinity educated their broker, third-party administrator, insurance company and, more importantly, each of their companies so everyone understood the program and knew Trinity wanted employees back at work as soon as medically possible. It became known the corporation was willing to go to great lengths to place employees back into the work force, and their assistance in this effort was required.
Trinity redesigned its insurance program so all auxiliary services provided by outside vendors fit together into the company’s total program. The program is designed to be a vehicle for these services. Trinity also has implemented very detailed set of account instructions. The corporation approves all claims’ settlements, and written status reports on all claims over $10,000 are required every 30 days. The company follows other cost-cutting guidelines.
1-File Audits
All workers’ comp files are audited twice a year to develop a strategy to resolve not just to review each claim, These audits consist of face-to-face meetings between the company representative (usually the personnel director and general manager), the insurance company file adjuster, the insurance company supervisor, the insurance broker and the physician consultant. Meetings are followed up with a written strategy plan to ensure each party understands the action they’re responsible for implementing.
2-Investigation and Surveillance
Each accident is investigated in the plant immediately after it occurs, to determine the root cause and identify corrective measures. In addition, claims with “red flags,” or considered questionable, are investigated by professional investigators to determine whether the extent of the injury is legitimate or is being exaggerated.
Trinity recommends companies budget 5% to 10% of the total cost of the claim for surveillance.
3-Safety Management
No workers’ compensation cost control program is complete without an effective loss control program and an in-plant safety program. While Trinity has what it considers a good loss-control program, it also realizes there will be comp claims and management must be prepared to manage properly these inevitable claims. Trinity advises companies to utilize the services of their broker or their insurance carrier’s loss-control subsidiary or division, when available.
Also, employers should have loss-control inspections at every facility several times a year. Not only do firms review workers’ comp claims and safety procedures regularly, but also they need an active safety committee, a workers’ comp coordinator and a safety incentive program.
4-Performance Goals
Trinity measures program results in three ways.
1. OSHA Severity Rate: The company tries to keep the below 40/100, a formula derived by using the number of lost work days, depending upon risk or exposure. (workersxzcompxzkit)
2. Return-To-Work Ratio Goal: Trinity has an RTW ratio goal of returning 70% to 90% of injured workers to work within 10 days following an injury.
3. Cost Per Employee: The company strives to keep its CPE below $150 per employee.
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, health care, manufacturing, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing. He can be contacted at: Robert_Elliott@ReduceYourWorkersComp.com or 860-553-6604.
Podcast/Webcast: How To Prevent Fraudulent Workers’ Compensation Claims
http://www.workerscompkit.com/gallagher/podcast/Fraudulent_Workers_Compensation_Claims/index.php
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.
©2009 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law. If you would like permission to reprint this material, contact Info@ReduceYourWorkersComp.com
The most conscientious employer can trip up when it comes to combining their state’s workers’ compensation law with the Americans with Disabilities Act (ADA) law and the Family and Medical Leave Act (FMLA) law. Unintentional and inadvertent violations of one of the laws can occur when the employer is focusing on their state’s workers’ compensation requirements or on ADA or on FMLA, and not considering the other two laws and how they relate and overlap. As an employer, you must take into consideration the various complications that can arise when you analyze each work comp injury in the light of either ADA requirements or FMLA requirements.
Definitions: ADA of 1990 protects disabled employees from discrimination due to their disability.
FMLA of 1993 permits employees to take unpaid time off, up to 12 weeks in a 12 month period, due to their own medical issues (FMLA also covers employees off work due to a family member but that is outside the scope of this article).
Eligibility: Work comp applies to any employee who has an injury or illness arising out of or in the course of employment. ADA applies when the employee has a disability, physical or mental, that substantially limits major life activity, or has a history of such impairment, or is regarded by others as having an impairment. FMLA applies when the employee has a serious health condition, whether illness, injury or impairment, that requires either continuous treatment of more than 3 days and at least 2 treatments or inpatient care.
Applicable: With work comp any employee is covered while unable to work during the injury or illness recovery period. With ADA, the employee is covered if the employee is a “qualified individual with a disability” and is performing the essential functions of their job without any accommodation or with “reasonable accommodation” by their employer. With FMLA, the employee must be unable to perform the functions of the position due to the medical condition to qualify for leave under FMLA.
Benefits: In work comp, the employee normally receives up to two-thirds of their wage rate (maximum and minimum caps) for time missed from work plus medical expenses plus a permanent disability award, if any. Under ADA, there is no benefit requirement mandated by law for a paid leave, but if the employer grants sick leave time to all employees, it can not be denied to an employee because of the disability. A FMLA leave is unpaid time off, however, the employee may take sick days, vacation days or disability leave with pay, unless the person is receiving workers’ compensation benefits.
Company Size: For work comp, all employees are covered unless the employer is a very small company and has less than the minimum required number of employees for work comp coverage. ADA applies to all employers with 15 or more employees. FMLA applies to employers with 50 or more employees within 75 miles of the employee’s work location, and the employee has been employed at least 12 months and worked at least 1,250 hours within the previous year.
Return To Work/Light Duty: With work comp, the employer may require the employee to work light duty/modified duty if medically approved. With ADA, the employee may require the employer to provide a light duty position as a reasonable accommodation, if light duty is available and feasible. With FMLA, the employer cannot require the employee to take a light duty job, but the employee may elect to do so, if a light duty job is available.
The Work Comp/ADA/FMLA Claim: As an employer you need to know when and how to apply the state work comp statute, the ADA and the FMLA.
A Case Study
Karen works for your company as a secretary/transcriptionist for several years. Since your company employs more than 50 employees at Karen’s office location, your company is subject to the work comp statutes, the ADA and the FMLA. Karen is an employee who misses work frequently and has used up all her allotted sick leave days.
One Tuesday morning Karen calls in and you expect to hear she has another cold or some other ailment, but instead Karen reports that both of her wrist have been hurting her for some time. Both of her wrists have become painful and she cannot use her hands. She went to her doctor yesterday after work. The doctor has advised her not to return to work until he can see her again next week. As you don’t know what is the cause of the wrist pain, and as Karen has no more sick time available, you advise Karen that her time will be covered under the FMLA (off work more than 3 days and two or more medical visits) and will not be paid time off.
The following Tuesday Karen calls in again and advises the doctor has now diagnosed her with bilateral carpal tunnel syndrome and has related her bilateral carpal tunnel syndrome to her job duties. Karen is now requesting work comp benefits claiming the wrist pain is most strongly associated with her job responsibilities. The claim is accepted as work comp and Karen has surgery on both wrist, which turns out to be only partially successful.
After three months Karen returns to work light duty and wants the same job she had before. However, Karen medical condition prevents her from being as productive as she was before, qualifying her as disabled under ADA. If Karen can perform the same essential functions as before with “reasonable accommodations,” per ADA, she is entitled to her old job. With FMLA, Karen is entitled to her original job or an equal job with the same pay and benefits IF she can perform the essential functions of her job, but under FMLA there is no requirement of reasonable accommodations like there is under the ADA.
Even though you are accommodating Karen’s workers’ compensation light duty restrictions, and have made reasonable accommodations to comply with ADA, Karen decides the work is too difficult and causes too much pain. As Karen’s doctor has released her to light duty, you can stop the work comp indemnity benefits, but Karen can still use FMLA for time off. She can apply for and use 12 weeks less all previously used time under FMLA time in the last 12 months. You should require Karen and all employees to use all available paid time off — sick time, if any, and all vacation time, if any — before allowing the unpaid FMLA leave, to prevent her from going on vacation at the end of her FMLA leave.
After Karen has no more work comp indemnity benefits as her doctor previously approved her for light duty, and she has exhausted her sick leave time, vacation time and her unpaid FMLA time, Karen provides medical certification from her doctor that she can return to work. Under FMLA your company has to take her back to her original position or equivalent position. Now, if Karen advised you she can return to work full time, if your company will make reasonable accommodations for her including an ergonomically correct chair, a new keyboard and a break from typing every two hours, you are obligated to do so under ADA, as you can make those accommodations. (workersxzcompxzkit)
In Summary: The burden is on the employer to know all the requirements of the state work comp laws, the ADA and the FMLA. If there is a conflict between the statures, the Federal statutes — ADA and FMLA — take precedent over the state work comp statutes. Smart employers educate themselves for all three sets of laws and comply with all three.
Podcast/Webcast: How To Prevent Fraudulent Workers’ Compensation Claims
http://www.workerscompkit.com/gallagher/podcast/Fraudulent_Workers_Compensation_Claims/index.php
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.
©2009 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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