Characteristics of Transitional Duty Assignments
While the specifics of transitional duty programs vary across industries, common characteristics ensure their effectiveness and compliance with regulations.
1. Transitional Duty is Temporary
Transitional duty is not a permanent job reassignment. Instead, it provides employees with modified tasks while they recover, typically lasting no more than 120 days unless extended based on medical progress and the requirements of the Americans with Disabilities Act (ADA).
2. Similarity to the Original Job
Whenever possible, transitional duty assignments should closely mirror the employee’s original job. This helps maintain job-related skills and allows for a smoother transition back to full duties.
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3. Cross-Location or Cross-Divisional Placement
In some cases, an injured employee may be temporarily placed in another department or location if their primary worksite cannot accommodate their restrictions. Such placements:
- Occur at no cost to the receiving location.
- Are used when the original job cannot be modified or when a suitable position is unavailable at the original site.
4. Occurs During Regular Business Hours
Employees working in transitional duty roles typically work within normal business hours, ensuring proper supervision and integration into the work environment.
5. No Overtime Eligibility
Employees in transitional duty assignments are not eligible for overtime. The focus remains on recovery and gradual reintegration into their full work responsibilities.
6. Defined Duration and Flexibility
Most transitional duty assignments last no more than 120 days. However, employers should allow flexibility for extensions based on medical updates, legal requirements, and business needs.
7. Consequences of Refusing Transitional Duty
If an employer offers a medically approved transitional duty assignment and the employee refuses it, they may forfeit wage loss benefits if permitted under state law. This is often categorized as voluntary withdrawal from the workforce.
8. Return to Original Position Upon Full Recovery
Once the employee reaches maximum medical improvement (MMI), they return to their pre-injury job. Employers should follow the ACOEM 3-Part Return-to-Work Framework to ensure a structured and medically sound transition.
9. Alternative Placement or Separation for Permanent Restrictions
If an employee cannot resume their original role due to permanent restrictions, the employer may:
- Offer another position, if available.
- Terminate employment if no suitable work exists.
Note: Employers should consult with HR and legal teams to determine if such cases require disability accommodations under the ADA.
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Business and Financial Benefits of Transitional Duty
- Lower Workers’ Compensation Costs: Employees who stay engaged at work tend to have shorter claims duration and fewer legal disputes.
- Improved Employee Morale: Providing meaningful work reduces feelings of isolation and maintains workplace connections.
- Reduced Turnover and Training Costs: Keeping employees engaged minimizes the need for hiring and training replacements.
- Regulatory Compliance: Following best practices helps avoid legal complications related to work restrictions and disability laws.
Employers can also explore light-duty work ideas to create suitable transitional assignments that align with an injured worker’s medical restrictions.
Conclusion
An effective transitional duty policy supports injured employees while controlling workers’ compensation costs. By structuring assignments to be temporary, job-related, and aligned with medical restrictions, employers create a win-win scenario that benefits both the business and its workforce.
Michael Stack, CEO of Amaxx LLC, is an expert in workers’ compensation cost containment systems and provides education, training, and consulting to help employers reduce their workers’ compensation costs by 20% to 50%. He is co-author of the #1 selling comprehensive training guide “Your Ultimate Guide to Mastering Workers’ Comp Costs: Reduce Costs 20% to 50%.” Stack is the creator of Injury Management Results (IMR) software and founder of Amaxx Workers’ Comp Training Center. WC Mastery Training teaching injury management best practices such as return to work, communication, claims best practices, medical management, and working with vendors. IMR software simplifies the implementation of these best practices for employers and ties results to a Critical Metrics Dashboard.
Contact: mstack@reduceyourworkerscomp.com.
Workers’ Comp Roundup Blog: http://blog.reduceyourworkerscomp.com/
Injury Management Results (IMR) Software: https://imrsoftware.com/
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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.
