June 2, 2016
May 25, 2016
A recent study found that if an injured employee seeks out legal representation for a workers’ compensation case, the costs will be much higher. Permanent disability claims involving attorneys, or 80% of permanent disability claims, averaged $66,208 in benefits and expenses, compared to $25,300 for claims that did not involve attorneys. Time away from work because of disability also was substantially higher and claims were slower to close. The severity of the injury, the claims process and the perception of the injured employee. While the correlation between severity of injury and attorney involvement is difficult to mitigate, employers can do a lot to minimize the other two factors. A Workers’ Compensation injury is not just a medical problem, there are complex psychological and social issues involved. While there will always be some employees driven by greed and aiming to “game the system,” most people come to work wanting to do a good job, not to create problems. When an unexpected […]
January 13, 2016
Control Workers’ Compensation Costs Understanding how it works could save you money: For many companies, workers’ compensation insurance is a necessary evil that is often ignored and left uncontrolled. It is viewed as a commodity which is a mistake. By ignoring this major business expense, you may experience increased premiums or the inability to obtain a policy from a standard carrier. The resulting financial impact on your business could include price increases to consumers, the inability to offer competitive wages, or a reduction in operations. To control your costs, it’s important to have a clear understanding of what workers’ compensation is and what role you play in the process. It also helps to work with a broker that has the knowledge, tools and resources to help you improve your work comp program. A No-Fault System Workers’ compensation is a no-fault system established under individual state law that provides medical and wage loss payment to employees injured in the course and […]
December 30, 2015
Every year, Stephen Klingel, president and CEO of the National Council on Compensation Insurance, Inc. (NCCI), chooses one word to define the current state of the workers’ compensation industry. This year, that word is Turbulence. It’s a word that does not emote confidence; rather, it conveys turmoil, unrest, and instability. Not comforting for employers. Speaking at NCCI’s 2015 Issues Symposium in May, Mr. Klingel noted: Lost time claims decreased an estimated 2% in 2014, which is a smaller decrease than the 2.9% reported in 2013. “Our industry runs in cycles.Watch for upward pressure on claim frequency from new workers in unfamiliar jobs.” The workers’ compensation sector should prepare for “difficult times” as “workplaces and the workforce evolve.” “We are going to see employee relationships with no defined workplace or work schedule. This will lead us to develop new definitions of injuries and complicate investigations into course and scope of employment. Determining whether a person is an employee or an independent […]
November 25, 2015
Return to Work Strategies • Job offers should always be made in writing and should thoroughly describe the offered position to ensure the hire is fit for all duties. • When the job is offered, send a formal job offer package along with the offer letter. Make sure it includes all the benefits the potential employee is eligible for, including return to work policies and procedures, so there is no confusion later. • When developing a temporary assignment for someone returning to work, find useful tasks that are not covered by other areas of the company – the goal is not to take work away from another employee. • Create a written job description and job analysis for all transitional duty jobs. These jobs should match physical capabilities with the work that needs to be done so that they are both useful and appropriate. • Hold employees working temporary assignments or transitional duty jobs to the same work rules as other […]
September 16, 2015
One of the best ways to reduce the costs of workers’ comp claims is to avoid hiring an employee who is not fit to perform the essential functions of the job. While that may seem easier said than done, particularly in light of the many laws governing the hiring process, one tool has proven to be effective, but is underutilized. And that is the post-offer, pre-hire physical exam. Typically, this consists of a medical history questionnaire and a pre-employment physical exam. The purpose is to measure the individual’s ability to safely perform the job for which they are hired. It’s important to remember that this can only be done after a conditional offer of employment has been made and it carries with it American with Disabilities (ADA) accommodation issues if you have more than 15 employees (five in California). Also, consistency and confidentiality is critical. The exam must be required of all persons offered positions in the same job category […]
July 14, 2014
One of the best ways to reduce the costs of workers’ comp claims is to avoid hiring an employee who is not fit to perform the essential functions of the job. While that may seem easier said than done, particularly in light of the many laws governing the hiring process, one tool has proven to be effective, but is underutilized. And that is the post-offer, pre-hire physical exam. Typically, this consists of a medical history questionnaire and a pre-employment physical exam. The purpose is to measure the individual’s ability to safely perform the job for which they are hired. It’s important to remember that this can only be done after a conditional offer of employment has been made and it carries with it American with Disabilities (ADA) accommodation issues if you have more than 15 employees (five in California). Also, consistency and confidentiality is critical. The exam must be required of all persons offered positions in the same job category […]
April 24, 2014
A recent study found that if an injured employee sees out legal representation for a workers’ compensation case, the costs will be much higher. Recently, the California Workers’ Compensation Institute (CWCI) released a study finding that more than 11.6% of all California Workers’ Compensation claims and 80% of claims for permanent disability benefits involve attorneys. Temporary disability claims with attorney involvement had an average of $30,319 in benefits and expenses, compared with $5,598 for claims without attorneys. Permanent disability claims involving attorneys, or 80% of permanent disability claims, averaged $66,208 in benefits and expenses, compared to $25,300 for claims that did not involve attorneys. Time away from work because of disability also was substantially higher and claims were slower to close. So what are the key factors that cause an injured employee to see out an attorney? The severity of the injury, the claims process and the perception of the injured employee. While the correlation between severity of injury and […]