Workers’ Compensation, Part I An ounce of prevention is worth a pound of cure.
by Eric W. Hallerud
Fewer workers in Missouri and Kansas are being injured, but more of those who are, miss work.
Missouri companies reported 112,900 occupational injuries and illnesses in 2002, according to the Bureau of Labor Statistics. While down from a total of 118,400 in 2001, the number involving days away from work or from normal job duties increased by over 2,500 cases, or 4.5 percent, from the previous year.
In Kansas, the number of reported injuries and illnesses also was down from the previous year, from 54,700 in 2002 compared to 66,300 in 2001. The number involving lost or restricted days, however, also increased by 3.2 percent.
These injury and illness numbers represent an important issue for small employers on both sides of the state line, due to the workers’ compensation costs that can accompany them.
In the complex, and sometimes confusing world of workers’ compensation, small employers need a guide to show them how to conserve resources so they can stay competitive.
There are 10 important steps along the path to success in the area of workers’ compensation. The first five steps of this journey all address the critical need to prevent workplace injuries, illnesses and the subsequent financial losses that can accompany them. Next month’s issue will describe the last five steps, which cover effective cost containment after a workplace injury or illness occurs. Commitment to Safety The most critical element in establishing an effective safety program is a clear, consistent and visible commitment to safety by top management. A written policy statement of this commitment, signed by the CEO, should go to each employee. This should be followed by a consistent, proactive and visible effort to prevent injuries and illnesses. Proactive Hiring Practices Employers have the right to perform criminal background checks, driving histories and drug tests on all job applicants. Take advantage of this right when hiring. Visibly advertising, on the front door or on the job application form, that all applicants will have background checks and be tested for drugs is a deterrent that can keep a number of problems away from the workplace. It also sends a message to other employees that their employer is concerned with ensuring a safe workplace.
In Missouri, an employee injured while under the influence of drugs or alcohol may have their workers’ compensation benefits reduced by 15 percent. If the alcohol or drug use can be shown to have been the cause of the injury, all benefits may be denied. For these provisions to apply, however, employers must have a written alcohol and drug policy that is posted and enforced. They also should have employees sign a form indicating they have read and understand the policy.
In Kansas, all benefits are denied where drugs or alcohol are found to have contributed to an injury. There is no reduction of benefits if these substances were found not to have been a contributing factor. New Employee Orientation and Training A large percentage of workplace injuries occur in an employee’s first year on the job. An orientation period for new employees is an opportunity for employers to outline their safety program, as well as their policies and expectations.
Many employers use an experienced employee as a job mentor to ensure that new hires adhere to proper procedures. This approach reinforces the message that safety is an important component of the job. Frequent observation of employees at work can yield opportunities for managers and mentors to retrain on proper procedures before an injury occurs. Hazard Identification Frequent observations of workplace conditions are also an important part of injury prevention. The use of a comprehensive checklist by managers and employees helps not only prevention, but also raises safety awareness. Sample checklists can be found through a number of places, including the loss control staff of your workers’ compensation insurance provider. Walk-through safety audits by outside consultants such as your insurance provider’s loss control representative, by OSHA or by a consultant from free Missouri and Kansas safety programs can shed light on hazards you may have overlooked.
Safety Committees An employee safety committee can be a powerful way for a small employer to prevent injuries, and also get employees to “buy in” to the safety effort. Successful committees are empowered to perform walk-throughs, conduct accident investigations, use a limited budget to address observed hazards and make recommendations to management. Committees should define goals, hold regularly scheduled meetings, keep and post minutes and have a rotating membership.
Look in next month’s issue for five effective cost containment steps to help you control your workers’ compensation costs. Eric W. Hallerud, M.S., is the manager of the Missouri Workers’ Safety Program (MWSP), an outreach program of the Missouri Division of Workers’ Compensation that specializes in providing free and confidential safety and workers’ compensation consultation services to employers. Mr. Hallerud also teaches a course in workers’ compensation at the Metropolitan Community College’s Business and Technology College in Kansas City, Mo. He can be reached at (816) 889-6214 or .
