Role of Corporate Counsel in Workers Comp Management Programs

In workers’ compensation, in-house lawyers are developing effective, and legal, methods to reduce workers’ compensation losses. Work with counsel to develop PROACTIVE STRATEGIES. Have them be part of expert panels to brainstorm cost reduction strategies.

In the past, corporate executives were quick to blame “unfavorable state laws” for the workers’ compensation crisis. Too often, in-house counsel acted as if their hands are utterly tied by such laws or by the possibility of a suit from the worker if the company takes action. Recently attorneys have started showing management steps companies to take to control the injury process by using employment law-based techniques.

For example, many companies are instituting clearly defined post-injury workplace procedures, detailed policies for workers during treatment, and modified-duty policies to get the worker back on the job – somewhere — as soon as practicable. All are useful management tools, not prohibited by law in most states. However, because these strategies are not expressly allowed in workers’ compensation statutes, traditionally they have not been used to control the work-related injury process to reduce associated costs. However, tax lawyers don’t expect tax-saving strategies to be explicitly spelled out in the tax laws, and the analogy holds true for workers’ compensation cost- reduction strategies. If it’s not prohibited, let’s give it a try.

And, employers can require employees to provide documentation to the company in the event of injury, using a uniform accident-reporting form. Procedures can be detailed, down to whether or not the company will provide transportation to the hospital in the event of an on-the-job accident or whether it’s the employee’s responsibility. The company can specify the data to be given to the health-care provider, and it can require communication from the recuperating worker to keep its business operations from being unnecessarily disrupted. There is no reason an injured worker cannot agree, in writing, to keep his or her scheduled medical appointments. The company is also within legal rights to require workers on the mend to meet weekly with company officials in order to keep better tabs on the healing process. Statutes do not have to state specifically these are legally permissible procedures to make them so.

Today, these and dozens of other techniques are being used to get a better grip on growing workers’ compensation costs and in-house attorneys are suggesting procedures used in employment law, premises law and related fields to maintain control.

In-house lawyers can show management the true cost of workers’ compensation by demonstrating the financial impact of claim “costs” in terms of sales or product lines. For example, at a 4 percent profit margin, it costs $625,000 in sales to “pay for” a $25,000 workers’ compensation accident. This type of “cross-over” knowledge closes the loop between the legal, operations and financial branches of a corporation. Counsel is stepping to the plate as part of the management team at many companies.

WC Calculator www.ReduceYourWorkersComp.com/calculator.php
TD Calculator www.ReduceYourWorkersComp.com/transitional-duty-cost-calculator.php
WC 101 www.ReduceYourWorkersComp.com/workers_comp.php

Do not use this information without independent verification. All state laws are different. Consult with your corporate legal counsel or other professionals before implementing any cost containment programs.