Author: Patty Busse

What the ‘gig economy’ means for worker protections

Posted on by Patty Busse

By Brian Bent
SFM Vice President, Director of Underwriting

You may know you can use your smartphone to hail a ride to the airport. But did you know you can also use an app to find someone to come fix your car, clean your house or even cook you dinner?

These roving drivers, mechanics, housecleaners and cooks are part of what’s referred to as the “gig economy.” Technology allows them to connect with customers directly, which means they can work independently on a job-by-job basis, rather than through an employer.

This fast-growing work arrangement creates new questions about state laws regarding employer/employee relationships, and who will bear the burden of the cost if a gig worker is hurt on the job.

‘Gig economy’ growing fast

A survey conducted by the Federal Reserve Board showed that 36 percent of American adults engaged in some kind of “informal paid work activity” either as a primary or supplemental income source.

From 2005 to 2015, the percentage of American workers engaged in alternative work arrangements, including temporary, independent, contract or freelance work, rose from 10.7 percent to 15.8 percent according to the National Bureau of Economic Research .

Some workers choose this kind of arrangement for the freedom and flexibility. Others just need the extra money, or do it reluctantly because it’s the only type of work they can find.

Digital platforms account for some of the growth, but a larger portion is due to companies increasingly opting to hire workers as contractors rather than permanent employees, according to a 2016 study by Lawrence Katz and Alan Krueger .

Arrangement creates a gap in worker protection

Many of the laws and benefits established to protect workers, including workers’ compensation, are contingent on an employer/employee relationship.

This means gig economy workers might not have those protections unless they choose to purchase them at their own expense. For example, a driver considered an employee of a commercial delivery company is entitled to employer-paid workers’ compensation coverage by law, but a ride-hailing app driver is not in most states. So, if the delivery driver gets in an accident on the job, the medical costs and lost wages would be covered. Ride-hailing drivers would have no such protection, unless they had previously purchased their own coverage.

As our economy and approach to work evolves, it’s important that our laws keep up so we maintain established worker protections.

The gap goes beyond workers’ compensation — medical benefits, retirement benefits and unemployment insurance are all often contingent upon being legally defined as an employee.

Public and private sectors looking at ways to close the gap

Lawmakers, agencies and the companies that run digital platforms are starting to look at ways gig workers can receive the same protections as traditional employees.

The Equal Employment Opportunity Commission has made it a priority to address fair employment practices in the gig economy, according to national employment law firm Littler .

A U.S. Senate committee held a hearing this year on providing retirement benefits for independent workers.

Some state and federal lawmakers have made proposals to provide portable benefits workers could keep while moving from job to job. The State of New York already has a requirement that ride-sharing platforms Uber and Lyft cover workers’ compensation for their drivers.

Uber is piloting a program in other states to provide some medical and wage-replacement benefits to drivers who are injured on the job. It’s a voluntary program
paid for by the drivers, and the benefits are more limited than those provided by workers’ compensation law.

It doesn’t seem there’s any clear, universal solution in sight yet to these lacking worker protections, but it’s encouraging to see that lawmakers and large companies recognize the problem and are trying to find ways to fix it.

As our economy and approach to work evolves, it’s important that our laws keep up so we maintain established worker protections.

In the meantime, if you use the services of those in the gig economy, it’s important to understand your employment relationship and do what you can to protect yourself from liability.

Alternatives to opioids for treating chronic pain

Posted on by Patty Busse

As America grapples with the consequences of opioid painkiller addiction, the medical community is finding other ways to help individuals with chronic pain — both chemical and non-chemical.

Exercise is one of the most simple, yet promising alternatives.

“Exercise not only promotes healing because it increases circulation, but it also has been shown to reduce your pain level,” said SFM Director of Medical Services Ceil Jung, RN, BSN, CCM. “Studies have shown that exercise is the best way to treat your pain in many cases.”

The idea can seem counterintuitive at first, as it seems like exercising will make pain worse, Jung said, but studies have shown the opposite.

A study published in the journal Clinical Rheumatology showed that programs including aerobic, resistance and flexibility exercises significantly reduced pain in those with chronic pain conditions.

It’s all about helping people regain function so they can do the things they want to do.

Another study published in the Annals of Internal Medicine showed that a weekly yoga class increased mobility for chronic low back pain sufferers more than other common types of treatment, according to Harvard Medical School .

In some cases, doctors might inject pain relief medication in the area that’s hurting to help patients get to the point where they feel they can exercise, Jung said.

Other chronic pain treatment options

In addition to exercise, doctors are turning to a number of other options to treat chronic pain, including:

  • Other medications and supplements
    The Centers for Disease Control and Prevention recommends acetaminophen (Tylenol) and non-steroidal anti-inflammatory drugs (aspirin, ibuprofen) as first-line treatment for low back and other types of chronic pain. Turmeric is a natural anti-inflammatory that’s easier on the stomach than pills.
  • Acupuncture
    This traditional practice, which originated in Asia, of inserting hair-thin needles into the skin at certain points of the body is now an accepted, mainstream practice for treating chronic pain.
  • Lifestyle changes
    Getting enough sleep, eating healthy, quitting smoking and losing weight can all be effective in reducing chronic pain.
  • Cognitive behavioral therapy
    This form of talk therapy helps people learn to change negative thoughts and behaviors and improve coping skills so that they can regain function and change their perception of pain.
  • Addressing psychological and social contributors
    Pain may originate from a biological source, but psychological and social factors influence how an individual experiences it. Because of this, treating those other contributing factors, such as anxiety or depression, is sometimes used to treat chronic pain.
  • Virtual reality
    Studies show that virtual reality technology can be used to reduce all types of pain. 

These represent just a small sampling of the many treatments available. While treating chronic pain can be complex, it can make a huge difference in people’s lives.

“It’s all about helping people regain function so they can do the things they want to do,” Jung said. “Finding solutions to treat chronic pain really gives people their lives back.”

Teach your employees about trench and excavation safety

Posted on by Patty Busse

In the United States, trench and excavation hazards cause more than 100 deaths and 1,000 injuries every year. Eventually, all excavations and trenches will cave-in, but knowing proper safety procedures and what hazards to watch for will greatly reduce the risk of injury.

The National Utility Contractor’s Association (NUCA) is holding a safety stand down week for trench and excavation safety from June 18-23. This event, endorsed by OSHA, provides companies with an opportunity to have a conversation with employees about trench and excavation hazards and best practices to prevent injury. Take a break to talk about trench and excavation safety, plan a safety event or provide training for all workers.

Cave-ins pose the greatest risk and are much more likely than other excavation-related accidents to result in worker fatality. Keep an eye out for warning signs, such as bulges in the walls of the excavation and cracks running parallel to the edge.

Other trench and excavation risks include:

  • Asphyxiation due to lack of oxygen
  • Inhalation of toxic materials
  • Exposed utility lines, underground and overhead
  • Falling objects
  • Water in the excavation
  • Moving machinery near the edge of the excavation could cause a collapse
  • Vehicle traffic

Trench and excavation safety recommendations

When doing trenching and excavation work, a competent person capable of identifying and correcting hazards and who has the authority to stop work must be present. Prior to beginning work, underground utilities should be located. Before an employee enters the excavation, test the area for hazardous atmospheres such as oxygen deficiency and high concentration of combustible gas or other hazardous substances. If detected, clear away prior to entry.

Depending on the depth of a trench, different safety requirements are necessary. Access or egress must be provided for an excavation of four feet or greater. If an excavation is more than five feet then a protective system of either a bench, slope or shield must be in place. When the excavation exceeds six feet, fall protection is required.

Examine equipment used for protective systems for damage that could impair its function. Remove and replace damaged equipment.

Spoil piles should be a minimum of two feet away from an excavation’s edge and placed so that rainwater runs away from the excavation. Ladders are required to enter or exit a trench and must be within 25 feet of all workers. Employees should not work outside of a trench box or shoring. All workers need appropriate personal protection equipment: hard hats, safety boots, safety glasses and Class II high visibility vests.

By following these safety recommendations and keeping aware of your surroundings, you can significantly reduce the risk of injury.

Other resources

Visit SFM’s resource catalog for more construction safety materials.

Are your workers independent contractors or employees?

Posted on by Patty Busse

As an employer, you have different requirements for how you must treat workers considered employees, and those considered independent contractors.

From a workers’ compensation perspective, you are required to provide coverage for lost wages and medical costs due to work injuries for an employee, but not an independent contractor.

It’s important to know whether those who do work for you are considered employees or independent contractors under the law. It’s not always simple to determine.

IRS and workers’ compensation laws can define independent contractors differently

Don’t assume that someone considered an independent contractor for tax purposes is automatically considered one for workers’ compensation purposes.

The Internal Revenue Service may have different criteria than your state for establishing whether a worker can be considered an independent contractor versus an employee.

Every state is different, but in most states, for a worker to be considered an independent contractor for workers’ compensation purposes, the worker must have:

  • Control over how the work is performed
  • Ability to realize financial loss or gain based on how a project goes
  • Ownership of equipment to complete the job
  • Compensation on a per-job basis

These are just some basic criteria, and most states have additional requirements beyond these. Get details through your state’s department of labor. For example, the labor departments in Minnesota , Wisconsin and Iowa provide additional information online.

Tips for working with independent contractors

If you hire a subcontractor that lacks the proper workers’ compensation coverage, or doesn’t qualify as an independent contractor, it could put you at risk for liability if a work injury occurs, depending on which state the work is being performed in.

Here are some tips to avoid this situation, where applicable:

  • Confirm that the subcontractor is an independent contractor as defined by your state’s laws.
  • If the subcontractor uses employees, ask for a certificate of insurance as proof of workers’ compensation coverage.

Subcontractors with no employees can choose whether to purchase workers’ compensation insurance for themselves in most states. If they do have coverage, ask for a certificate of insurance for verification. Note that certificate of insurance verification alone does not qualify a subcontractor as an independent contractor. They still must meet all of the state’s criteria.

If they don’t have coverage: Request a copy of the subcontractor’s independent contractor registration form if applicable in your state. Some states have a registration process for independent contractors, and some don’t. Otherwise, ask for a copy of the subcontractor’s current license.

Note that a contractor registration form alone does not qualify a subcontractor as an independent contractor. You should also:

  • Check to see that the subcontractor is registered with the state as a business entity.
  • Request a Certificate of Insurance for General Liability covering the dates the work was performed with limits of at least $300,000.

Your agent can help

If you need help determining whether a subcontractor is an independent contractor or employee, don’t hesitate to ask your agent for help. This way, you’ll understand the implications for your workers’ compensation premium right away, rather than finding out you owe more than expected at the time of your premium audit.

Hidden costs of work injuries

Posted on by Patty Busse

Few employers realize just how costly a work injury can be until they experience one at their organization.

That’s because there are so many hidden costs of work injuries that aren’t covered by workers’ compensation benefits, such as lost productivity, overtime costs, and lowered morale among the remaining employees, among others. Not to mention the impact on the injured worker.

When you’re thinking about the impact of work injuries on your organization, and the value of preventing them, the following not-so-obvious costs are worth taking into account.

Overtime and lost productivity

While an injured employee is out with an injury, you may have to hire and train a temporary replacement who is less experienced and efficient at the job. Alternatively, if you choose not to hire a replacement, you may have to pay your existing workers overtime as they cover the injured employee’s responsibilities.

These costs increase when the injured employee has a specialized or unique skill set. It is much harder to find replacements for employees with advanced degrees or the technical ability to run specialized machines.

Increased injury risk for other employees

Employees who cover for the injured worker can increase their own risk of injury due to rushing and fatigue. As a result, one workplace accident could cause a domino effect that leads to injuries among remaining workers.

Supervisors’ time

Work injuries also cost supervisors time. They may have to spend time investigating the accident, reporting the claim, working with their claims representative, implementing corrective action and checking in with the injured worker. They may also have to spend time finding light-duty jobs for your injured employees.

Disruption in the workplace

Immediately following a work injury, there can be a lot of lost time and productivity. Employees may need to stop working to try to help the injured worker, get the attention of supervisors, or get the injured worker medical attention.

Depending on the severity of the accident, you may have to stop work for a few hours or even a few days. This might affect just a few people or possibly your entire com­pany. You may receive visits from outside individuals such as attorneys, the Occupational Safety and Health Adminis­tration, or even the police following an incident, which can further disrupt your work environment.

Equipment losses

Tools or equipment that were directly involved in the accident may have to be taken out of service until investigation and litigation is over. This could mean buying or renting replacements.

Low morale

Following an injury, other employees may become distracted and uneasy as they worry about their own safety and risk of being injured. Employees who witnessed the accident, or who may feel somewhat to blame, might also be dealing with lingering trauma. They might also feel less confident in their supervisors or the company.

An injury can also disrupt the dynamic between your workers. Other employees may be resentful toward an injured worker who is off work or on light-duty, or they may doubt that the employee is actually injured.

Harm to company reputation

If word gets out about a workplace injury, it could harm your company’s reputation. Customers and prospects could get the impression that your company doesn’t take care of its workers. Additionally, your employees may have to field questions or opinions from people outside the company about the accident.

Financial costs to injured workers

Injured workers who, prior to the injury, made more than the maximum compensation rate allowed by their state will take a pay cut if they can’t immediately return to their regular work. Employees who can’t ever work again could miss out on the future wage increases they thought would secure their financial stability. Being injured at work can continue to impact employees financially for years to come.

Costs to injured workers’ families

The families of injured workers often suffer from the same financial losses as the employee, and family expenses can increase, too. They may have to pay for services the injured employee can no longer perform, such as snow removal, lawn mowing and house cleaning.

There are many good reasons to do everything you can to prevent work injuries. Knowing the hidden costs provides you with a fuller picture of all that’s at stake.

Mitigating costs

The best way to avoid the hidden costs of work injuries is to focus on workplace safety and prevent accidents before they happen.

But if an injury does occur, here are a few things you can do to help your injured worker recover and avoid unnecessary costs.

  • Stay in contact with your claims representative

    They can help you take a proactive approach in preventing some of these hidden costs.

  • Encourage return-to-work

    Getting your injured employees back to work quickly in light-duty positions lowers your claim costs and helps prevent re-injury.

  • Check in with injured employees

    Contact your workers regularly to check on their well-being and recovery.

  • Communicate with all your employees

    Being open with your employees about protocol following work injuries and offering them support can boost morale. Let them know what your expectations are following a claim.

  • Communicate with the medical provider

    Working with your injured employee’s medical provider can help facilitate return-to-work. See our past post on why employers should get to know medical providers to learn more.

Focusing on workplace safety and preventing injuries before they happen will go far to protect your employees and your organization from harm.

Fall prevention focus of Safety Stand-Down week

Posted on by Patty Busse

Did you know that falls are the leading cause of worker death in the construction industry? Falls from elevation accounted for 384 of the 991 fatalities in construction in 2016. Fall prevention is an easy an important way to keep your workers safe and save lives.

One of the reasons falls are so common is due to lack of proper equipment and training. In 2017, the Occupational Safety and Health Administration (OSHA) included fall protection general requirements, scaffolding requirements and fall protection training requirements on their list of the top most cited violations for the year.

May 7 – 11, 2018 is National Safety Stand-Down to Prevent Falls in Construction week. This is a voluntary event where employers are encouraged to engage their employees on the importance of fall prevention. Companies can take a break from work and allow supervisors and employees to have an open discussion about safety.

Fall prevention

Proper fall protection is key to prevention. According to OSHA, fall protection is any equipment, device or system that prevents a worker from falling or that diminishes the effects of a fall. Safety standards for construction require that workers use fall protection whenever they are more than six feet off the ground. In general industry, the requirement is four feet.

Hazards that may cause a fall include leading edge work such as roofs or bridges, roof holes and manholes, ramps and runways, steel erection, articulating lifts, bore pits, shafts and work over open tanks. Fall protection is required in hoist areas, runways, areas above dangerous equipment, wall openings, repair pits, stairways and scaffolds.

There are many options for fall protection:

  • Covers
  • Guardrail systems
  • Personal fall arrest systems
  • Positioning devices
  • Warning lines
  • Controlled access zones (CAZs)
  • Safety net systems
  • Travel restraint systems
  • Ladder safety systems

Before beginning a task, workers should utilize pre-task planning to reduce the chances of falling. Workers should also assess the task to choose compatible fall arrest equipment. Ensure sturdy construction and anchor points prior to starting the job.

Personal fall arrest systems must be properly selected, maintained, inspected and utilized. Do not mix components from different models. All open sides of the work area should be marked with warning lines at least 6 feet back from the edge. Clearly mark the lines with high visibility flags.

Training also plays an important role. A qualified person must train workers on how to correctly identify and minimize hazards, use personal fall protection and maintain, inspect and store equipment or systems used for fall prevention. If your company doesn’t have someone trained in fall protection, bring in an expert to help.

Additional resources

Watch out for everyday electrical safety hazards

Posted on by Patty Busse

You probably don’t think too long about grabbing an extension cord or plugging something in to an outlet. It’s easy to forget that these everyday activities can pose a risk for fires, shock and even electrocution if done improperly.

Extension cord safety

Extension cords are often used incorrectly.

Here’s what you need to know to use one safely:

  • Choose a round, three-wire grounded extension cord versus a two-wire or flat-wire cord.
  • Choose an extension cord that’s rated for the electrical load needed and type of use, such as residential versus commercial.
  • Check cords regularly for cracks, tears, exposed wires and missing ground plugs. If you find anything wrong, take the cord out of service and tag it for repair or throw it away.
  • Don’t place cords under carpets or furniture and never string them through doorways, walls, windows, ceilings or floors.
  • Do not fasten an extension cord to a wall.
  • Buy an extension cord that is long enough for the job; don’t chain multiple cords together.
  • To disconnect a cord, pull on the plug, not the cord.
  • Follow the information on the cord’s warning label.
  • Don’t use an extension cord for more than one appliance.
  • Don’t use a multi-plug extension cord, as these don’t have a fuse built in to protect you from overloading the cord.
  • Only use extension cords for temporary needs, lasting 90 days or less. For anything more, use permanent wiring, conduit and outlets to prevent fires and electric shock.
  • When in doubt, ask a qualified electrician or maintenance employee to review your electrical setup.

Extension cords are often used for power tools on construction sites. For more on this, read our blog post on hand and power tool safety.

To give a quick talk to your employees on extension cord safety, see our Electrical extension cord safety 5-Minute Solution.

Ground fault circuit interrupter (GFCI) outlet safety

You’ve probably seen a GFCI outlet in your bathroom or kitchen. Many contractors use them whenever they need temporary power.

These outlets can help protect you from electrocution by quickly shutting off electricity when there’s a ground fault.

GFCI protection can come in the form of an outlet, portable outlet, cord or a circuit breaker panel with a test and reset button.

It’s important to test and reset GFCI outlets periodically to make sure they’re working properly. To do this:

  1. Plug a light into the outlet.
  2. Push the test button.
  3. If the light goes off, push the reset button and the light should go on again. That means it’s working. If the light does not go off, have a qualified electrician repair the GFCI before using the outlet.

On a construction site, test and reset GFCIs daily before use.

Other electrical safety risks

There are a number of other electrical safety hazards you should be aware of at home and work, such as:

  • Stay away from overhead electrical service lines when climbing ladders.
  • Don’t use metal ladders when doing electrical work. Also, don’t use them when doing work near power lines.
  • Use proper lockout/tagout procedures for machinery that needs maintenance or repair.

Electricity can pose a serious hazard in any workplace. Remember to use it safely to protect yourself and your coworkers. 

Prevent obesity in the workplace to reduce costs, research says

Posted on by Patty Busse

Obesity in the workplace can be a complex and sensitive topic. Excess body weight is one of the most common health conditions in today’s workforce, and it’s also a public health issue.

The American College of Occupational and Environmental Medicine (ACOEM) reviewed more than 1,400 articles published between 2011 and 2016 that studied obesity in the workplace. Based on the findings, the researchers developed several recommendations for employers to manage obesity among workers to improve health outcomes and reduce health care costs.

Their findings were published in the Journal of Occupational and Environmental Medicine in January 2018.

How obesity and workers’ compensation are connected

The study reported several ways that obesity and its associated health conditions adversely impact the workplace. Obesity is associated with sleep disorders, increased depressive symptoms, lower productivity and absenteeism. It’s considered a risk factor for musculoskeletal disorders such as osteoarthritis and back pain, which are some of the most common workplace injuries.

The research showed an indirect association between obesity and workplace injury rates — workers who meet the definition of obesity file more workers’ compensation claims and require more days off to recover before returning to work.

In a Duke University study , workers with a body mass index (BMI) greater than 40 filed twice the number of workers’ compensation claims as non-obese workers. They had seven times higher medical costs from those claims and lost 13 times more days of work from work injury or work illness than non-obese workers.

A University of Texas-Austin study showed that for workers with major injuries, a higher body mass index was associated with more expensive workers’ compensation claims. Recovery can take longer, complicated by weight-related medical conditions such as diabetes and high blood pressure.

Focus on prevention at work

Obesity has high costs both in terms of a worker’s health and costs to the employer. What can an employer do to address obesity in the workplace? After reviewing the research, the ACOEM panel recommended that employers tackle the issue through both prevention and treatment.

Workplaces can help employees reach or maintain a healthy weight by designing the work environment to encourage physical movement and healthy eating.

The types of short-term lifestyle modifications typically seen in workplace wellness programs can have modest results. However, it can be a challenge for workers to maintain the behavior after the challenge is over. Instead, ongoing interventions like wellness and nutrition classes, fitness club membership discounts and healthy options in the vending machine could make a lasting impact.

For more on effective wellness programs, see our tips for starting and building your workplace wellness program and wellness program best practices.

For more findings from the ACOEM study, see the full ‘Obesity in the workplace’ report .

 

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How loss prevention visits target business safety risks

Posted on by Patty Busse

SFM’s team of loss prevention representatives, comprised of occupational health and safety professionals, understand workplace safety and how to prevent injuries.

To get to know a company’s unique safety risks and provide strategies to address the risks, our loss prevention team spends most of their time visiting and working one-on-one with employers. The frequency of in-person visits depends on company size and nature of the business.

We want to understand their current processes and current risks. Then we can begin finding a solution for the risks.

~ Lee Wendel

What to expect during a loss prevention visit

For the initial visit, the loss prevention representative will meet with the business owner, a safety manager or perhaps someone from human resources or the head of operations. The visit typically takes about 45 minutes and can include a walk-around of the facility.

A visit with a loss prevention representative serves two purposes:

  1. Educating you about SFM’s loss prevention services and answering any questions
  2. Learning about your organization, operations and unique safety risks

The second purpose of the visit helps the loss prevention representative develop a thorough understanding of your business’s needs, its safety program and current processes.

Knowing how your business operates and cares for employees will help us work together and provide you with the right resources to reduce safety risks unique to your business. To do that, we ask about several areas, including:

“Part of learning about the operation is seeing the work in action,” says Loss Prevention Technical Leader Lee Wendel. “We want to understand their current processes and current risks. Then we can begin finding a solution for the risks. Whenever we can, we want to be part of the solution.”

The loss prevention representative will ask questions about workers’ core functions to identify risks for work injuries. They then come up with strategies or resources to reduce or eliminate those risks.

For example, if any of your employees drive as part of their day-to-day work, they’ll ask about your seat belt and cell phone use policies. When visiting a healthcare facility, safe patient handling training and equipment will be discussed.

By the end of the visit, you will know more about the resources SFM can offer you, and our team will be able to provide customized recommendations to help meet our shared goal of keeping workers safe.

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Checklist helps keep employees safe during school construction projects

Posted on by Patty Busse

Construction projects at schools can create a variety of new hazards for employees, students and visitors.

For example:

  • Construction materials can create trip hazards
  • Increased parking lot traffic can pose danger to pedestrians
  • Work can create noise and air quality issues

That’s why SFM’s loss prevention staff created a new resource to help schools keep employees safe throughout construction projects. The checklist includes advice to consider while planning and preparing for the project, as well as tips to maintain safety as the project is ongoing.

You can download the school construction safety checklist in the resource catalog.

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