Archive for the ‘Workers’ Compensation’ Category

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2012 Human Resources Updates: What Employers Need to Know.

Wednesday, January 11th, 2012

We are proud to announce the release of our annual report, highlighting various 2012 labor law updates. The report, titled “2012 Human Resources Updates,” covers a wide range of topics that directly affect employers in the coming year.

Over the past several months, dozens of new employment laws and legislative bills were signed into law that went into effect on January 1, 2012. These changes will directly impact the way employers conduct business, including areas such as payroll tax limits, new employment guidelines, and changing insurance markets.

Ari Rosenstein, CPEhr’s Director of Marketing, explains:

“Not only are employers throughout the country burdened by the weak economy, but they are confused and troubled by the seemingly unending flow of employment regulations. Many small employers recognize it is virtually impossible to stay up to date on a regular basis, especially at the turn of a new year when many new laws go into effect. It is for this reason we publish our annual HR Updates report.”

The report draws from CPEhr’s human resources experience on a wide range of employment, payroll, tax and insurance areas. Topics covered in the report include:

• New employment laws effective in 2012
• The IRS Voluntary Worker Reclassification Program
• Understanding the importance of correct employee/1099 classifications
• New 2012 Tax and 401(k) limits
• The value of employee training and development
• Rising Workers’ Compensation costs and how to mitigate them
• Creative approaches to reduce increasing health care premiums

“Our hope is that employers will read the report and, at the least, become aware of the important changes coming in 2012. At best, we hope they will take the time to investigate the new laws and adjust their business activities accordingly,” said Rosenstein.

 

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Posted in Employee Benefits, Employment Laws, Management, Outsourcing, Payroll and Tax, Training and Development, Workers' Compensation | 1 Comment »

Advanced Techniques in Reducing Workers’ Compensation Costs

Thursday, September 1st, 2011

Orange County Assemblyman Jose Solorio, D-Santa Ana, California, recently submitted a bill to the California legislature that, if passed, would lead to California employers paying an additional $210 million in workers’ compensation benefits for temporary disabilities.  This estimate is according to an analysis from the state Senate Appropriations Committee.

Under current California law, an injured worker can receive temporary disability payments for up to 104 weeks, within a 5 year period. Under the proposed changes in Assembly Bill 947 (AB-947), workers would collect temporary disability benefits for up to 240 weeks, more than doubling the current benefits.

AB-947 is one more example why workers’ compensation costs in California are one of the highest in the nation.

CPEhr recently conducted a complimentary webinar on the subject, “Workers’ Compensation Claims Cost Drivers and Counter Measures”. The purpose of the webinar was to inform employers on the key elements that drive insurance costs and what they could do to control them.

The training began with a review of some basic workers’ compensation concepts and then proceeded to more advanced topics that focused on the key factors that can lead to increased insurance premiums. It concluded with practical, hands-on activities that employers should take to mitigate these factors.

Topics covered included:

  • What are the key drivers to increase premiums
  • How medical costs, indemnity costs and litigation can impact your insurance costs
  • Strategies to mitigate/control these costs
  • Medical Management of Claims
  • Medical Provider Networks (MPN)
  • Modified Duty/Return to Work Programs
  • Litigation Management

To access this free training webinar, follow the link.

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Posted in Workers' Compensation | No Comments »

California Heat Illness Prevention Laws – Part 1

Monday, August 8th, 2011

Across the United States, record heat plagues the nation. Athletes suffering from heat related injuries have made front page news numerous times this summer, while employees in a range of industries swelter in the heat. Many states have laws governing work in extreme heat, and California is no exception.

In July 2005, there were twelve reported heat-related deaths (out of 25 heat illness cases) due to a significant heat wave in California. Emergency heat regulations took effect August 22, 2005. The standard (Title 8 §3395) became permanent on July 27, 2006 and was revised effective November 4, 2010. The Heat Illness Prevention Standard was Cal/OSHA’s 2nd most cited standard for 2010, with 964 violations, 80 of which were serious.

What is Heat Illness and How Can You Prevent It?

According to Title 8 §3395(b), “Heat Illness” means a serious medical condition resulting from the body’s inability to cope with a particular heat load.  It includes heat cramps, heat exhaustion, heat syncope and heat stroke. Heat illness can affect employees working in both indoor, and outdoor, environments.

Examples of outdoor work environments where employee may be at risk include:

  • Agricultural fields, forests, and parks
  • Construction sites
  • Loading docks, tarmacs and roads
  • Sheds, packing sheds, partial or temporary structures
  • Equipment and storage yards
  • Outdoor utility installations
  • Landscaping
  • Oil and gas extraction
  • Transportation or delivery

Indoor environments can include:

  • Foundries
  • Mining
  • Factories
  • Boiler rooms
  • Commercial kitchens
  • Laundries
  • Warehouses without AC

The California employment law governing heat prevention is known as the Cal/OSHA Heat Illness Prevention Standard. The law applies to all outdoor places of employment, while certain industries are subject to additional requirements for “high heat procedures”. These can include Agriculture, Construction, Landscaping, Oil/Gas Extraction, Transportation or delivery of certain items.

We will briefly list the standards as we conclude this post, and will detail them further in upcoming posts. The Outdoors Standard requires the following:

  • Provision of water & rest periods
  • Access to shade
  • Employee and supervisor training
  • Planning/written plan

The Indoor Work Standards

Title 8 §3203 (Injury and Illness Prevention Program) directs employers to address all health or safety hazards within their worksite.

  • Written procedures
  • Frequent drinking of water
  • Resting in cooler areas
  • Acclimatization and weather monitoring
  • Being prepared for emergencies
  • Employee and supervisor training

Heat illness prevention  = good business

Preventing heat illness protects the safety of your workers and makes good financial sense for your business. Heat illness may increase the costs of doing business in a many ways, such as reducing employee productivity and efficiency, increasing medical and emergency services costs, taking up supervisory and administrative time and increasing Workers’ Compensation premiums. In our next post, we’ll discuss more of the Cal/OSHA safety standards in more detail.

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Posted in Workers' Compensation | No Comments »

19 Reasons to Outsource Safety and Workmans’ Compensation to an HR Outsourcing Firm

Tuesday, July 26th, 2011

Workman’s Comp Challenges

With the unceasing rise in California workmans’ compensation insurance premiums, employers are well advised to take a step back and review their safety procedures and loss control programs. It has been proven that a proactive approach to safety has a direct, positive impact on insurance rates.

Many companies recognize this fact, and with the best of intentions, will attempt to implement an effective and well rounded safety program in an effort to reduce workplace injuries. Unfortunately, they are often unsuccessful. These programs require a great deal of industry knowledge and expertise, and can be difficult to implement, manage and maintain. They often lead to unsuccessful, and costly, results

The Outsourcing Solution

While larger organizations may have the in-house manpower to succeed, small and medium-sized businesses are turning to an alternative solution – Human Resources Outsourcing. HR outsourcing firms employ a wide range of employment experts, trained on the needs of small employers. One of the key services provided by an HR outsourcing firm is safety and risk management.

By engaging the services of an HR outsourcing firm, the small business owner is able to tap into the outsourcing firm’s experience, and economies of scale. Safety programs, equipment, training classes and incentives can quickly and cost-effectively be implemented, often producing results in a matter of months. Left to their own devices, small employers may invest years of energy and cost, to experience minimal results.

So what exactly does an HR Outsourcing company do?

Through an HRO firm, clients have access to a full-service Safety Department staffed with experts in the field. Services include both “proactive” safety consulting and management, plus “reactive” management and administration of workmans’ compensation claims, when they occur. The proactive services will help keep workplace injuries to a minimum, thereby resulting in fewer claims, and lower insurance premiums. The reactive services are important to manage the paperwork, communicate with the insurance carriers and close the files once the case is completed. This process, too, will have a positive impact on insurance rates.

Below are 19 services provided by an HR outsourcing firm which are critical to the success of a risk management and safety program:

  1. Assistance with ADA Compliance Related to Worker’s Compensation
  2. Assistance with Safety Programs and Management Specific to your Industry
  3. Advanced Ergonomic Evaluation / Specific Workstation
  4. Annual OSHA Postings
  5. Experience Modification Review
  6. General Ergonomic Evaluation
  7. Injury and Illness Prevention Programs
  8. Issuance of Insurance Certificates
  9. Job Descriptions for Modified Work
  10. Return to Work Programs
  11. Re-audit of Worker’s Compensation Prior Policies Claims Management and Tracking
  12. Strategies to Mitigate Losses
  13. Safety Training
  14. Safety Meetings
  15. Safety Incentive Programs
  16. Premium Audit Verifications
  17. Premium Reporting
  18. Vocational Rehabilitation Assistance
  19. Worker’s Compensation Insurance Policy

Simply put, to effectively tackle the rising costs of workmans’ compensation insurance, employers have to take safety seriously. By engaging a Human Resources Outsourcing firm, clients will be on the fast track to success by keeping employees safe at work, the business OSHA compliant, injuries to a minimum, and insurance rates down.

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5 Workmans’ Compensation Lessons Learned from the NFL Lockout

Thursday, July 21st, 2011

Even if you are an avid football fan, you may not be aware that one of the key discussions in the four month-old NFL lockout revolves around California workmans’ compensation. Workmans’ comp is a complex issue, and business owners have a lot to learn from the lockout.

It has been a common practice amongst NFL players to use California as a filing base for a workmans’ compensation lawsuit, if they can prove they suffered any injury during their career while playing in the state. California is notorious for being one-sided in its support of employees’ work comp claims. NFL players recognize they will receive higher benefits for filing an injury in California, over other states in the country. This perception creates a vicious cycle for NFL team owners as their insurance premiums suffer when large claims are filed against their policy. The team owners are pushing for players to file for workman’s comp benefits in the players’ home state, if they suffered an injury, not the state where the injury occurred.

California Business Owners – Listen Up!

The NFL lockout is obviously complex in many ways and extends far beyond a simple workmans’ compensation disagreement.  However, the game of football can teach many valuable lessons to employers. Despite bearing some of the most employee-favorable workmans’ comp policies, and some of the most expensive insurance costs in the country, California employers have a lot they can learn from the NFL in the areas of managing workplace safety, reducing claims, and being proactive in keeping insurance costs to a minimum.

5 Workmans’ Comp Lessons from the NFL

  1. In football, safety is the #1 priority. NFL players wear more protective clothing than virtually any other sport. Owners recognize that the long term success of their team is based on the health and welfare of their players. So too, business owners should take the safety of their employees seriously by purchasing the necessary protective gear, and educating their staff on proper usage.
  2. Football players train 4-5 days per week, perfecting their craft. Employees should receive constant training and education on their craft, as well. Whether it is on handling equipment or proper use of machinery, an educated workforce will produce higher quality work with fewer workplace injuries.
  3. While most of the practice time in football is spent running plays and strategizing game plans, much of the time is also spent on basic drills, exercise and maintaining overall health and fitness. The fitter and stronger the player, the greater their contribution to the team. Similarly, employers are well advised to create a healthy work environment for their staff. From healthy snacks in the vending machines and incentives for exercising, to flexible work environments and promoting a healthy work/life balance, healthy employees are dramatically more productive and less prone to accidents than their unwell counterparts.
  4. Football fields are impeccable. A single ball of paper thrown on the field during a game will lead to a time-out as the grounds-crew cleans it off. In the workplace, one of the most common causes of injury is slips and falls on dirty work surfaces. Spills should be cleaned, oil removed and other impediments cleared from the floor immediately when they occur.
  5. Finally, team owners, coaches and general managers keep safety at the forefront of their players’ minds. From simple stretching exercises and proper hydration, to high-tech protective gear and side-lined medical staff, all pro-players recognize the need to keep their bodies out of harm’s way. An injury may ruin their game, season, or even career. Employers and onsite managers should take note – safety doesn’t happen by itself. It has to come from the top, down. Supervisors must make safety a number one priority in the workplace, and encourage their employees to take it seriously as well.

While the football lockout appears to reaching a resolution, and the California workmans’ compensation conflict will be resolved one way or another, employers should learn from their friends over at the NFL – take safety seriously and your business will be certain to reap the benefits.

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Posted in Workers' Compensation | No Comments »

Six Labor and Employment Risks for Businesses in 2011

Thursday, January 20th, 2011

Labor and employment law will continue to plague small businesses in 2011. Risks abound, but what what will really keep risk managers on the edge of their seats in 2011? As the year begins, here are some top worries of risk managers in the United States.

The still-slow economy and the soft insurance market, where premiums continue to remain historically low, drive insurers to rely heavily on analytics to underwrite risks. For many mid-level insurance buyers, your application may never hit an underwriter’s desk. Instead, poor loss history or losses outside the norm for your industry may eliminate your risk from consideration at the carrier before a human ever evaluates it. Your agent should have deep experience not only in insurance, but in your industry. If your agent represents other clients in your specialty, he or she can better explain anomalies in your loss history. There is a strong chance that agent has alternate markets to turn to that will write your risk.

Mergers and acquisitions will continue to increase. When mergers occur, they usually happen quickly. This means your top supplier may soon be under new ownership or your favorite bank may be acquired. Your handy line of credit may disappear under new management. Before you face this problem from vendors or financial partners, have Plan B in place, just in case. Don’t wait until your line of credit dries up or you supplier raises prices; develop a plan to deal with any changes you may face from other organizations’ mergers or acquisitions.

Employment claims and wage-and-hour class action suits will continue to plague employers. In 2010, 99,992 employees filed claims against their employers with the EEOC. Recently released information from the EEOC shows 2010 retaliation claims led the pack, followed by allegations of racial discrimination. According to the EEOC, charges across all major protected categories increased in 2010.

An aging population will increase workers’ compensation and healthcare costs to businesses. Although older people injure themselves less frequently than their youthful coworkers, when they are hurt, injuries are often more severe and healing times longer. Risk managers continue to implement or strengthen return to work programs and to “elder-proof” their facilities with improved lighting and walking surfaces. Wellness programs that target diabetes, hypertension, smoking and other health concerns is one way employers can meet this challenge.

Reputational risk continues to top concerns, according to one risk manager. A company’s most value asset is the public’s trust. In today’s world of bloggers, comment opportunities galore, and social networking sites like YouTube, problems with an organization’s reputation can happen in minutes. Monitoring a company’s reputation and meeting reputational attacks before they erode public confidence continue to challenge organizations throughout America.

“The insurer’s failure to have professional claims staff,” is a big threat to risk managers, according to Barry Zalma, author of several books on insurance coverage. “Insurers, in a search for profit, have decimated their professional claims staff. They laid off experienced personnel and replaced them with young, untrained and unprepared people. A virtual clerk replaced the old professional claims handler.” This lack of talent often drives business owners to attorneys, which can increase costs on both sides. If you feel your adjuster fails to interpret coverage correctly or provides poor customer service, your agent is your first line of defense. Agents should be willing to roll up their sleeves and enter the fray to ensure your claim proceeds smoothly and your adjuster offers you the coverage you paid for.

2011 promises to hold these and many more risk management challenges to business owners throughout America and beyond.

Source: Allbusiness.com

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Posted in Employment Laws, Workers' Compensation | 1 Comment »

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