In 2003, employers across the country spent more than two percent of payroll on workers’ compensation costs. Employers can significantly reduce this amount, however, by implementing innovative ways to return employees to work and reduce work-related injuries.
Many employers
know that returning an employee to work, even in a temporary light-duty capacity,
can significantly reduce workers’ compensation costs. As the employee
is receiving wages for work performed, the employee’s indemnity benefits
are reduced and the employee is more likely to have a speedy return to full-time
active duty.
However, employers that do not have temporary light-duty work available often
fail to look "outside the box." For example, employers may wish to
consider tapping into nonprofit organizations as a way to reduce an employee’s
benefits and return an employee to work. The employer pays the employee for
temporary work performed at a nonprofit organization. The nonprofit organization
gets volunteer labor, and the employer gets a productive worker back on the
job as quickly as possible, as well as a tax break for donating labor.
If an employee out on workers’ compensation refuses to take a paid assignment at a nonprofit organization, employers can usually suspend or terminate benefits. Employees often do not want to report to a nonprofit organization for work. Some even undergo a "miraculous cure" once the issue is raised.
Employers who suspect fraud may be able to avoid the costs of surveillance, multiple medical examinations, and litigation by requiring an employee to return to work at the employer-designated nonprofit organization. The end result is that employers have more control over the injured worker’s return to work and employees know what to expect if they are injured on the job.
In addition to
innovative return-to-work strategies, employers should also implement employee
committees as a way of reducing work-related accidents and absences. For example,
employers with a two-committee program designed to monitor workplace hazards
and promulgate economical and ergonomical solutions have seen a significant
decrease in work-related injuries. The two-committee program focuses on proactive
and preventive ways to reduce injuries and absences.
Other options employers should consider are drug- and alcohol-testing policies
and programs. Although the program must comply with state law, employers that
require drug and alcohol tests for employees who are injured on the job may
have a defense, depending upon state law, to the injured workers’ benefits
claim. In addition, many states have regulations that give the employer a discount
on their workers’ compensation premiums for implementing a drug-free workplace.
And, of course, a drug- and alcohol-free workplace is a safer workplace.
This article was provided by Chad P. Richter, BERENS & TATE, P.C., Omaha, NE, Phone: 402-391-1991, Web site: www.berenstate.com, Email: berens@berenstate.com. © 2004 Berens & Tate, P.C. Reprinted with permission.
Council's
Workers’ Comp Update 2004 can help you stay on top of everything
you need to know about recent developments and best practices in workers’
compensation law. To view an agenda and get information on dates and locations,
click on the link above.