Three Ways to Build Goodwill Between Employee and Employer in the Workers Compensation System

Consider this. A large number of hours at the Board are wasted on hearings that are on just for the claimant to get reimbursed for mileage expenses. The amounts of money involved are small but important to the workers. The carriers take forever, forget them, drive the claimant crazy and cause defense expenses to soar. (The attorneys who cover these hearings for the carrier charge $125-250. This is added to the employer’s costs on the file. Plus what the carrier adds for administration which is likely a percentage of the claim costs.)

1- Pay Mileage – One way to build a bond between the employee and the employer is for the employer to pay these mileage expenses and NOT forward them to the carrier. The employer gets a tax deduction as a work comp expense even if it was the carrier’s responsibility.

2-Pay TV and phone in hosptial room – Here is another way to establish a bond with the worker. When they are in the hospital, usually for less than a week, comp will not pay for TV or the phone. Yet these are considered essential by most people. Again, this is a source of frustration to the worker and the worker’s family. The employer can pay this as a reasonable part comp expense knowing that the carrier never would.

These are all part of a larger program to take the friction out of claims and keep the worker away from the system on the 97% of the claims that are small and should stay small. Almost 10-15% of the claims produce a huge number of unnecessary hearings.

3-Request copies of all forms in the proceeding – Another thing would be to have the employer insist on being notified and copied on all forms in the proceeding. Frequently they are not. Then they should call or speak to the worker before and after any hearing. The employer should do the troubleshooting since they will be paying in multiples for the inefficiencies of the carrier and the Board. If the employer does these things attorney involvement will be far less.

Normally, companies do not put a program like this in place proactively if they are not currently having problems, but that’s the best thing to do. For employers who are worried about rising costs this is perfect. The program acts as the teaching tool for the HR staff and is a morale builder. The staff learns how to retake control of the claim. Lost time will plunge and there will be far fewer hearings.

There are thousands of employers in NY who could benefit in ways they cannot imagine. This would also reduce unemployement and discrimination claims which are often triggered by anger toward the comp system.

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.

WC Cost Calculator www.ReduceYourWorkersComp.com/calculator.php REAL COST of work comp.
WC 101 www.ReduceYourWorkersComp.com/workers_comp.php for the basics about workers comp.

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