Work Comp Transitional Duty Return to Work with a Nonprofit

Once an injured employee is released to return to work with temporary restrictions following a work related injury or illness, the best thing an employer can do most of the time is to accommodate the restrictions. By returning an employee to work in a modified capacity your workers’ compensation indemnity costs will be directly reduced. If you bring an employee back quickly enough, you may be able to contain the loss as a medical only claim costing less all around from a claim and premium perspective.

What do you do when you truly have absolutely no meaningful work for the injured employee anywhere in your company? Consider temporary placement with a nonprofit organization.

Reducing workers’ compensation claims costs is a multi-faceted job. Utilizing a nonprofit or charitable organization is one more way of accomplishing prompt return to work and limiting lost-time to save claim dollars with the added benefit of contributing to your community.

Nonprofits place your employees in roles consistent with their skill set, interests, and restrictions. The work can be sedentary – perhaps stuffing envelopes, folding clothes at a re-sale shop, serving as a greeter or a variety of other tasks.

There are administrative duties involved such as seeking out and developing the relationship with a nonprofit as well as timekeeping for the employee once all the details are sorted out. The work can be managed internally or outsourced to a vendor for a fee. Usually vendor fees are in the neighborhood of $1,000 which, considering the cost savings, should prove to be a good investment. If an employee is projected to be restricted for 90 days, that’s 90 days of TTD benefits saved and 90 days of work in the community for the nonprofit.

Talk with your agent/broker or insurance carrier to see if they have programs in place and to discuss the program costs and projected savings. For maximum claim cost reduction return the employee to your payroll just as if he or she returned to work with your company and pay the vendor’s fee directly. If that’s too much of a financial burden, talk with your agent/broker or carrier about fee payment under the claim file. (workersxzcompxzkit)

If you’re on a loss sensitive program administered by a TPA, have a conversation with the TPA about return to work with nonprofits. Be sure to monitor the employee’s recovery progress and transition the employee back to work with your company as the restrictions are lifted.

Author Rebecca Shafer, J.D. Consultant, Amaxx Risks Solutions, Inc. has worked successfully for 20 years with many industries to reduce Workers’ Compensation costs, including airlines, healthcare, manufacturing, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing. Contact her: [email protected] or 860-553-6604.

FREE WC IQ Test: http://www.workerscompkit.com/intro/
WC Books: http://www.reduceyourworkerscomp.com/workers-comp-books-manuals.php
WC Calculator: http://www.reduceyourworkerscomp.com/calculator.php
TD Calculator: http://www.reduceyourworkerscomp.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.