Reviewing and Reducing Workers Compensation Costs

Workers’ compensation is a benefit mandated by laws in all 50 states, the District of Columbia, Puerto Rico and the Virgin Islands for most employers. Regardless of how safe an employer may try to make its workplace, on-the-job accidents and job-related illnesses occur.

When and what are these laws designed for:

Workers’ compensation is a system of state laws that originated in 1911.

These laws provide medical care and compensation to injured workers on a no-faultbasis.

The purpose of workers’ compensation laws is to provide:

• Coverage of medical expenses for treatment of injuries or occupational illness.
  • Income protection for employees who must be absent from work because of occupational illness or injury.
  • Limited compensation for serious permanent injury such as loss of limb or loss of life.

These laws also contain anti-retaliation provisions, which prohibit employers from retaliating against any employee because he or she has filed a claim or received benefits under the law.

Reviewing and Reducing Workers Compensation Costs:

1. Promptly provide first aid, and if the employee requires emergency medical treatment, accompany the employee to a health care provider.
2. Obtain facts from the employee about the accident.
3. Inform the employee of his or her workers’ compensation coverage for job-related injuries.
4. Investigate and document the accident as soon as possible and the steps to follow to prevent similar accidents, as relevant.
5. Direct the immediate supervisor to stay in touch with the employee and/or a family member of the employee.
6. Develop and implement an employee safety culture.
7. Establish and empower a safety management committee that is in charge of your accident prevention program.
8. Educate managers about the cost and impact of workers’ compensation and hold them accountable for prevention of injuries.
9. Report workers’ compensation injuries as soon as possible and decide on appropriate steps to take to prevent similar injuries.
10. Have a light-duty/return-to-work program.
11. Maintain frequent contact with the injured employee and the workers’ compensation case manager.
12. Dispute claims that might not be related to a workplace injury.
13. Work with insurance provider to truly understand open claims, costs associated with claims and settlement options.
14. If you are disputing, ensure you understand the legal hearing process, this can add tremendous costs if trials are delayed or rescheduled.  Guess what, you pay for the legal fees associated with this.
15. Settle ongoing claims so the injury is off your books.
16. Change insurance providers.  If your organizations rates continue to rise, it might be time to review other compensation companies.  I recently spoke to a client, small business with 20-30 employees, the comp company raised the rates $10,000 per year.  The small business switched insurance providers and found immediate savings.

Who needs workers compensation insurance (New York State):

• Workers in all for-profit businesses and most nonprofits
• Domestic workers, sitters, companions and live-in maids employed 40 hours per week in a residence
• Farm workers whose employer paid $1,200 or more for farm labor in the preceding year
• (catch all in NYS) Any other worker the Workers’ Compensation Board determines is an employee (Uber, might be an example of this)

New York State Workers’ Compensation Website

Pennsylvania Worker’s Compensation Website

INCIDENT/NEAR MISS REPORT

(Check one):

___An incident is an event that caused injury to a person or damage to equipment, building or materials.

___A near miss is an event that could have caused injury to a person or damage to equipment, building or materials.

Person completing this form: _________________________  Date: __________________

Name and job title of the employee involved in the incident/near miss: ____________________

____________________________________________________________________________

Witness(es):__________________________________________________

Date of incident/near miss: ________________Time of incident/near miss: _______a.m./p.m.

Department and location where the incident/near miss occurred: _________________________________________________________

Employee’s shift on the day of the incident/near miss (from) _____________ a.m./p.m. (to) _____________ a.m./p.m.

Did an injury occur?  _____ Yes  _____ No

Nature of the injury (strain, cut, bruise, etc.): ______________________________________
__________________________________________________________________________

Body part(s) affected: ________________________________________________________

Medical treatment required? _____ Yes  _____ No
If yes, what type?  _____ First aid on-site _____ Express care _____ Doctor _____ Hospital

Name of the facility, hospital or physician: _________________________________________

Was the employee hospitalized overnight as a patient? _____ Yes _____ No

Did the employee leave work early due to the injury? _____ Yes _____ No
If yes, what time? __________ a.m./p.m.

Date the employee returned to regular duty: ____________________

Date the employee returned with light duty restrictions: _________________

Describe the incident fully: (use back page if necessary or sketch on back if needed to clarify):

_____________________________________________________________________

_____________________________________________________________________

List all equipment, machinery, materials or chemicals the employee was using when the event occurred:

_____________________________________________________________________

_____________________________________________________________________

Identify the factors that you believe contributed to or caused the incident: ____________________________________________________________________

_____________________________________________________________________

Complete this section if an injury occurred or there was damage to equipment.

Were proper procedures being followed when the incident occurred? ____ Yes ____ No

If no explain: _______________________________________________________________

Was the employee wearing proper personal protective equipment? ____ N/A ____ Yes ____ No

If no explain: _______________________________________________________________

Are changes in equipment necessary to prevent reoccurrence? ____ Yes ____ No

If yes explain: _______________________________________________________________

Employee signature: _____________________________  Date: ____________________

Supervisor signature: ____________________________  Date: ____________________

Forward this form to the Human Resources Department as soon as possible following the incident or near miss.

Note: If an employee receives medical treatment from a doctor or hospital, additional forms will need to be filled out and forwarded to the HR Dept. along with the incident report so a workers’ compensation claimed can be filed.