Healthcare reform in the United States has made employers and stakeholders in workers’ compensation program focus on the wellness of their employees. While these are important objectives and improve employee satisfaction, it is important to take note that injuries occurring during these events can be compensable.
Before implementing any program, it is important to understand your state’s workers’ compensation program and supporting case law. Rules and regulations may also play a role. Always consult an attorney before implementing wellness related programs within the workplace.
Parties and Employer Sponsored Events
Injuries that occur at these types of events can be compensable under a workers’ compensation law. In most jurisdictions, the statute itself speaks to these issues, with some limits placed on the employee’s ability to seek compensation for injuries. Courts have also scrutinized and interpreted these incidents, which include discussion on the following areas:
- Whether the employer-sponsored event was truly “voluntary” in nature;
- Information concerning how the event was communicated to employees; and
- If the injury occurring at the event was “incidental” or “remote” to one’s employment.
Injuries occurring while setting up for and the clean up afterward have also held to be compensable.
Fitness and Recreational Events
These programs come in all forms: golf outings, walking programs and the company softball game. Most state workers’ compensation acts address when injuries sustained in these events are compensable. When reviewing these matters, courts typically scrutinize the following items:
- The nature of the event and the “control” the employer had regarding the activity;
- Application of ingress/egress principles, which cover the employee while on company property, or those of a “traveling employee” when events are hosted at off-site conference and retreat centers; and
- The role of the employer in setting up a recreational event. This can include providing equipment for employees to use, installing fixtures on company premises such as a basketball hoop and how the employer viewed these activities in the past.
Some of these issues are also common when it comes to company sponsored sporting teams. Injuries sustained while participating in these events are generally compensable unless the state specific workers’ compensation act explicitly limits the liability of the employer.
Health and Wellness Promotions
These events can include employer-sponsored vaccinations and wellness programs for those seeking to lose weight, lower their cholesterol, or otherwise maintain a healthy lifestyle. This area of workers’ compensation law is full of gray areas employers must consider when organizing programs to avoid unnecessary costs to their programs:
- Events where the primary purpose is to focus on the employees’ physical, emotional or psychological well-being will typically not be compensable if the state has a “health program exception;” and
- An inquiry as to whether the program or event is “incidental” to the employee’s employment. If it is not, injuries will usually be compensable.
These issues are questions of fact for a compensation or administrative law judge to decide. When defending these claims, it is important to conduct a complete investigation. Laws concerning healthcare professionals and vaccinations are not covered under these laws given the nature of their work and contact with sick individuals.
Conclusions
In the modern workplace, it is important for employers to offer a variety of events that promote job satisfaction and workplace camaraderie. When implementing wellness-oriented programs, it is important to understand how that event might influence your workers’ compensation exposure.
Author Michael B. Stack, Principal, COMPClub, Amaxx Work Comp Solutions. He is an expert in employer communication systems and helps employers reduce their workers comp costs by 20% to 50%. He resides in the Boston area and works as a Qualified Loss Management Program provider working with high experience modification factor companies in the Massachusetts State Risk Pool. He is co-author of the #1 selling book on cost containment, Your Ultimate Guide To Mastering Workers Comp Costs www.reduceyourworkerscomp.com, and Founder of the interactive Workers’ Comp Training platform COMPClub. Contact: [email protected].
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Do not use this information without independent verification. All state laws vary. You should consult with your insurance broker, attorney, or qualified professional.
