Author: Patty Busse

Measuring workplace wellness program ROI and VOI

Posted on by Patty Busse

There is more to consider than return on investment (ROI) when measuring the success of your wellness program.

More employers are realizing that looking strictly at workplace wellness program ROI — money saved on health care costs for every dollar spent on the program — fails to encompass some of the very real, but tougher-to-calculate, business benefits of employee wellness.

In the 2022 Workplace Wellness Trends report from the International Foundation of Employee Benefit Plans (IFEBP), only 31 percent of employers say controlling or reducing health-related costs is their primary reason for offering wellness programs. The other 69 percent provide wellness programs with the goal of improving overall worker health and well-being.

That’s where value on investment (VOI) comes in.

When making the business case for your own corporate wellness program, measuring both ROI and VOI will illustrate a broader picture of the impact the program makes.

VOI is broader than ROI. It measures not just cost savings, but also other elements that contribute to work satisfaction, employee well-being and business performance, such as improved productivity and higher employee retention.

The value of employee well-being

According to IFEBP studies, common VOI measures among employers were:

  • Health risk assessment data
  • Healthcare costs
  • Absenteeism
  • Employee engagement
  • Productivity
  • Overall financials and growth
  • Recruitment
  • Disability/workers’ compensation claims
  • Retention

VOI also includes costs that are avoided — such as future diseases that don’t occur and stress that is eliminated. Avoided costs contribute to savings for employers and employees.

Measuring workplace wellness program ROI

The focus on VOI doesn’t mean ROI isn’t still important when it comes to wellness programs.

According to a 2022 research report from Zippia, a firm that pushes for improving career outcomes, the healthcare benefits of wellness programs for employers are numerous. The data, culled from several sources, included several interesting findings:

  • 72 percent of companies saw reduced healthcare costs after implementing a wellness program
  • The average return on investment for employee wellness programs is 6:1
  • Wellness programs can reduce absenteeism by up to 16 percent
  • 87 percent of workers consider health and wellness offerings when choosing an employer

Additionally, the research showed that employees who participate in wellness programs have fewer sick days; such employees report being more productive; and some workers even had diseases detected by these programs, allowing them to start treatment earlier.

For more information from past studies, see our previous post, 10 statistics that make the case for workplace wellness programs.

When making the business case for your own corporate wellness program, measuring both ROI and VOI will illustrate a broader picture of the impact the program makes.

More on measuring wellness program VOI

For further reading, the following articles contain more information on measuring wellness program VOI:

 

This post was originally published in July 2016 and updated in March 2024.

 

How floors can help prevent slips and falls

Posted on by Patty Busse

By Dana Mickelson, CSP, ARM

While some slips and falls result in only minor injuries, they can be much more serious, causing fractures, sprains, strains, abrasions and even death. They have the potential to be disabling, with claim costs in the tens of thousands or even hundreds of thousands of dollars.

According to the most recent data from the U.S. Bureau of Labor Statistics (BLS), work-related fatalities due to falls slips, and trips have increased in recent years:

  • 805 fatalities in 2020
  • 850 fatalities in 2021
  • 865 fatalities in 2022

These are all reasons to take slip-and-fall prevention seriously at your workplace, starting with the floors.

Choose slip-resistant flooring

When you’re choosing flooring, don’t choose just based on cost and aesthetics. Consider the floor’s slip resistance and the space and environment in which it will be used, too. There are several floor materials available on the market — quarry, ceramic, porcelain, vinyl composition tile, terrazzo, rubber tiles, concrete, marble, granite, etc.

Most types of flooring have good slip resistance when dry, but when wet, they have fair to poor slip resistance unless they are treated or textured. Most flooring materials become extremely slippery once water plus a contaminant, like grease, is present.

Use slip-resistant treatments for existing flooring

If you’re not in a position to replace your flooring with a more slip-resistant material, you can treat your floors to decrease the risk of slips and falls. The caveat with all of these options is that they typically lose their effectiveness over time and must be reapplied.

Options to treat flooring include:

  • Abrasive floor coatings: These coatings include gritty substances such as aluminum oxide or walnut shells to improve traction of otherwise smooth flooring
  • Chemical etching: This is an acid wash that’s typically applied to natural stone floors, concrete and porcelain that makes the floor surface rougher
  • Carpeting: Covering your floor with carpet is another option to prevent slips and falls

Clean floors properly

When cleaning your floors, even small details like the temperature of water used for mopping can significantly affect their slip resistance (or lack thereof).

That’s why it’s important to have a floor-cleaning protocol that includes:

  • Identifying the appropriate cleaning tools (deck brushes, squeegees, etc.) and solvent (for example, some solvents remove rust and scale, others consume oil)
  • Determining how often the floors must be cleaned
  • Thoroughly training all employees who clean floors

When training, be sure to include the proper water temperature and whether the floors must be rinsed after cleaning with the solvent. For example, an alkaline solvent used in a greasy kitchen could actually make the floor more slippery if not rinsed off after cleaning, so proper training is really important.

Maintain good housekeeping

Excellent housekeeping results in clean and clutter-free floors, preventing slips, trips and falls.

Here are three simple tips to improve housekeeping:

  • Clean up spills promptly and use wet floor signs
  • Keep cords out of the way of walkways or work areas as much as possible. You can tie cords together, use cord covers, or hang cords from the ceiling
  • Designate walking aisles in warehouses, manufacturing environments, etc.

Also, develop a housekeeping program. For example, dedicate the last five minutes of each shift as clean-up time.

Don’t wax and strip — scrub!

SFM has seen extremely serious injuries result from employees falling while waxing and stripping the floors.

To prevent these types of injuries, consider investing in a floor scrubber. Floor scrubbers are great because most only require water, and they negate the need to wax and strip the floors. Not only will a scrubber help keep your employees safe, it might pay for itself over time.

If employees must strip and wax the floors, ensure they wear stripping overshoes to increase traction and reduce their risk of slipping.

Maximize the benefit of floor mats

Floor mats at entrances allow people to walk off the rain, snow and other contaminants they’ve gathered on their shoes to help keep the rest of the floor dry.

Here are a few tips for using floor mats to maximize effectiveness and prevent them from becoming a source of trips and falls:

Provide mats that are long enough for people to adequately wipe contaminants off their shoes. Mats should be the longest in snowy weather (about 10-12 walking steps) and can be the shortest (6-8 steps) in dry weather.

  • Select mats with beveled edges and non-slip backing
  • Do not overlap mats
  • Don’t leave gaps between mats
  • Avoid rolled up edges
  • Inspect mats for wear and replace them when needed

Slips and falls can cause anything from simple embarrassment to serious head injuries, and they can happen to anyone. Doing what you can to make your floors more slip resistant is one way you can prevent slips and falls. Requiring your employees to wear slip-resistant shoes can also help.

For more resources to prevent slips and falls, visit our safety page.

 

Originally published June 2017; updated March 2024.

Top seven safety tips for office workers

Posted on by Patty Busse

Climate control. Soft chairs and armrests. Standing desks and safety features… Office environments don’t conjure up thoughts of workplace hazards like, say, construction sites.

It’s true, office workers are at a lower risk for workplace injuries than many other types of jobs. However, it’s still important to talk about safety with office employees.

Below are seven safety tips for office workers to prevent workplace injuries.

1. Make sure your desk setup is ergonomic

To maintain a neutral posture, your head should be centered over your neck and shoulders, wrists flat and elbows resting comfortably at your side. If your feet won’t touch the ground unless you lean forward, use a footrest.

See our post on workplace ergonomics and neutral posture for more information on setting up an ergonomic workstation.

2. Take regular breaks to get up and move around

Sitting all day puts office workers at risk for numerous health problems. For examples of moving and stretching actions you can do in the office, check out our Get Up and Move illustrations, and you can find more resources on our Stretching and movement page.

3. When it’s slippery due to ice and snow, walk like a penguin when entering and leaving your office

Winter slips and falls in parking lots are extremely common (and costly). To avoid them, walk like a penguin — flatfooted and taking short, slow steps.

It’s also important to wear sensible footwear and carry only what you can handle. For more information and downloadable resources, visit our winter slip-and-fall prevention page.

4. Use a headset for prolonged or frequent phone use

Cradling the phone between your shoulder and ear can cause neck and back pain.

5. Keep your workplace tidy

Clean up spills immediately, keep aisles free of clutter, and tie up or secure cords so they don’t pose a trip hazard.

6. Don’t let electrical cords create a fire risk

Avoid running electrical cords under carpet or through windows and doorways. Also, don’t fasten them through non-standard means, such as staples.

7. Know your office emergency procedures

Make sure you know what to do in the event of a fire, storm, violent intruder, medical problem or other emergency.

Related office safety resources from SFM:

 

Originally published May 2017; updated February 2024.

Paying small medical bills without submitting them to your insurer

Posted on by Patty Busse

When dealing with small medical bills, you may think that covering it yourself rather than submitting it to your workers’ compensation insurer will be easier and less costly.

While this seems logical, choosing to pay a medical bill yourself can create a ripple effect of future problems.

In many states, unless your business is self-insured, paying a claim rather than reporting it to your workers’ compensation insurer may be illegal. It’s could also be a violation of your contract with your insurer because it can artificially lower your experience modification factor (e-mod) and premium.

Other reasons why an employer may not want to pay might also include:

  • It could be held as an admission of liability for an injury or admission of an injury
  • In most states, an employee cannot waive the statutory right to work comp benefits

Of course, as is the case with most employment laws, they vary by jurisdiction. Here are a few examples.

Minnesota

The Minnesota Department of Labor and Industry explains why employers should not pay medical bills in its training guide for employers .

“If an employer does not report an injury to its insurance company, it could become a more expensive workers’ compensation claim. The workers’ compensation law is complicated. It has many requirements, such as deadlines for payment, forms that must be filed, determining what medical treatment is reasonable and paying bills according to medical fee schedules. Workers’ compensation insurers are required to know how to comply with these requirements. Penalties may be imposed if the claim is handled inappropriately. If the error leading to a penalty was the fault of the employer, the insurer may pass that cost on to the employer. The employer may jeopardize the ability to adequately defend the claim or opportunities to minimize losses if the insurer does not have immediate knowledge of the injury.”

However, exceptions may be allowed under a large deductible policy or if it is a self-insured person with approval from the state department of commerce to directly manage and pay work comp claims.

Wisconsin

In Wisconsin, employers can pay work comp bills, but there are limited circumstances when they can pay.

There is also an exception for the self-insured in Wisconsin.

South Dakota

It is not illegal to pay such expenses in South Dakota.

And employers should note that if they do not carry work comp coverage they can be sued civilly.

Again, there is an exception for the self-insured.

Iowa

Likewise, Iowa allows employers to pay medical bills. An employer has the right to choose the medical care/medical provider, meaning an employer would have the right to pay.

There are other factors to consider for the self-insured, and criminal and civil penalties could be levied against employers that violate the mandatory insurance law.

Nebraska

In Nebraska, it is illegal for employers to pay medical bills for injured workers.

Exceptions may be made under a large-deductible policy, but it still requires the insurer to pay with reimbursement to the employer or is self-insured with approval by Nebraska courts.

Kansas

Kansas also allows employers to pay these bills.

If an employer is insured for work comp, by law the insurance carrier is responsible for paying.

In the limited circumstances where an employer does not have to carry workers’ compensation insurance, uninsured employers subject to work comp laws are responsible for the medical bills of covered employees. Also, an employer has the right to choose the treating physician.

In Kansas, an employer can be self-insured for workers’ compensation, but must demonstrate to the state the financial ability to pay any claims that might arise.

Missouri

Missouri allows employers to pay medical bills for their workers. But there are additional rules to note.

If an employee misses no time from work and all medical bills total less than $3,700, the employer may pay the bill. However, employers must notify their insurance carrier and the Missouri Division of Workers’ Compensation and is not included in the e-mod.

Tennessee

Lastly, Tennessee also allows employers to pay medical bills out of pocket.

Reasons not to pay out-of-pocket work comp costs

Beyond the legal obligations in many states, there are other reasons  employers should not make out-of-pocket payments for a workers’ compensation injury, including:

  • Additional expenses; carriers often have pre-negotiated rates for care
  • Should an injury become worse, and it wasn’t reported in a timely manner, a claim could be denied
  • Doing so could impact your experience modification factor
  • Potential cancellation of a policy

As noted above, it’s generally better to go through the proper channels when taking care of an injured employee.

Originally posted December 2017; updated February 2024.

 

This is not intended to serve as legal advice for individual fact-specific legal cases or as a legal basis for your employment practices.

Does workers’ compensation insurance cover car accidents?

Posted on by Patty Busse

Generally, motor vehicle accidents that occur when employees are traveling to and from the workplace are not covered by workers’ compensation.

However, there are two exceptions:

  • If employees are required to bring their cars to the office for use during the workday, then travel to and from the office and business travel during the day are generally covered by workers’ compensation
  • If you regularly provide transportation to and from the workplace in company-operated vehicles — such as buses, trucks or vanpools — injuries to employee passengers would be covered by workers’ compensation

Even if you’re unsure whether an automobile accident is covered by workers’ compensation, it’s always best to immediately report it to your work comp insurer.

If an employee is injured in a car crash, who pays medical bills? The auto insurance company or workers’ comp carrier?

If an employee is injured in a work-related car accident, workers’ compensation is the primary source of insurance for medical and wage-loss benefits.

This is why it’s important to report an incident to your workers’ compensation insurer right away if you have an employee who was injured in a work-related car accident.

What should employees do if they get into a car accident while driving for work?

If you have employees who drive for work, ask them to do the following if they are involved in an accident:

1. Call for help

Call an ambulance immediately if anyone is injured.

At the same time, even if there aren’t injuries, have employees call local law enforcement to the scene to file a police report and issue any citations. If this isn’t possible, make a legal accident report with the applicable police department as soon as possible.

2. Obtain key information

Find out:

  • Names, addresses and phone numbers of witnesses and everyone in each vehicle
  • License numbers and state registrations of all vehicles involved
  • Insurance information from the other driver

3. Report it to you (their employer)

Immediately report the accident to the person in the organization who handles workers’ compensation claims.

What if the employee wasn’t at fault?

If the other driver was primarily at fault, it’s usually possible to recover workers’ compensation benefits paid from the negligent driver’s personal auto insurance carrier.

In many cases. SFM can recover 100 percent of the workers’ compensation benefits paid, but there are often situations that restrict us to recover only a portion of the total.

The reasons for this include:

  • Some states have statutes that allow the employee’s personal injury attorney to take the first third of the settlement
  • The other driver might not be 100 percent at fault, meaning the employee bears some responsibility
  • Not all workers’ compensation benefits are recognized by auto insurers. For example, payments for rehabilitation services are often questioned by liability carriers because this is not a standard benefit paid under a liability claim in many states
  • The driver’s auto insurance policy limits might be less than the amount of incurred workers’ compensation benefits

Make sure employees who drive for work know what to do if they’re involved in an accident

Hopefully, you and your employees won’t ever have to worry about dealing with a car crash, but it’s always best to be prepared.

Making sure your employees know what to do in the event of a crash can save you, and your employees, major hassles down the road.

Lastly, it is worth noting that educating employees who drive for work about safe-driving practices is always a good idea. Check out a few of our resources:

 

Originally posted June 2017; updated in February 2024.

This is not intended to serve as legal advice for individual fact-specific legal cases or as a legal basis for your employment practices.

How to boost workplace safety efforts by connecting wellness

Posted on by Patty Busse

By Ceil Jung, RN, BSN, CCM

In many organizations, workplace safety efforts are kept separate from efforts to promote wellness among employees.

If your organization treats them as two separate initiatives, maybe it’s time to start thinking about the connections between wellness and workplace safety.

Why safety and health are naturally connected

Workers’ compensation data makes the connection between wellness and safety abundantly clear.

For example, obesity can exacerbate or cause workplace injuries.

“Employees with overweight and obesity may have higher loss of work productivity as measured by absenteeism, short and long-term disability, and worker’s compensation compared to employees with normal weight,” Dr. Clare J. Lee told the Endocrine Society in 2023 .

The organization studied 719,482 employees with and without obesity. Researchers found that the percentage of employees with work loss, number of hours/days lost from work, and costs associated with productivity loss were higher among people with overweight or obesity.

For people with obesity compared to individuals with normal weight, the increase in annual costs were:

  • Absenteeism – $891
  • Short-term disability – $623
  • Long-term disability – $41
  • Workers’ compensation – $112

The connection between safety and health just makes common sense.

Published in 2023, a study from the University of Ohio found that obese employees were twice as likely to file workers’ compensation claims and the costs of those claims were more than double than those filed by employees without obesity.

The cost of comorbidities

In workers’ compensation, we call contributing factors like obesity, diabetes, hypertension, drug abuse (including alcohol and tobacco) and mental health issues “comorbidities.”

The presence of one or more comorbidities can significantly increase the cost of a workers’ compensation claim.

In a study from United Healthcare , researchers found that individuals with a comorbidity had longer recovery timelines. Take something as simple as a forearm fracture. The disability duration can span:

  • 43 days – typical without comorbidity
  • 62 days – diabetes coexistence

Another recent study, this one from the Workers Compensation Research Institute on lower-back pain recovery, found that injured workers often have comorbidities, with the most prevalent being hypertension, arthritis, sleep dysfunction, depression, and anxiety or panic disorders.

Aside from what the studies show, the connection between safety and health just makes common sense.

We’ve probably all tried some new physical activity, and wound up sore the next day because we weren’t used to it.

Well, the same principle is at work when an employee who lives a sedentary lifestyle decides to do something like lift a heavy box at work. This employee is more likely to get hurt than someone who is used to activities like exercising and lifting weights.

Resources to help connect wellness and workplace safety

It’s easy to see why joining employee safety and wellness makes sense. It’s tougher to figure out how to actually do it. Thankfully, many resources are out there to help.

The Centers for Disease Control and Prevention’s Total Worker Health Program is one of the best. Their website offers guidelines for creating a program that integrates safety and health, case studies of success and much more.

A Campbell Institute report mentions ways some companies have connected wellness and workplace safety. Two examples are a medical monitoring program that originated as a safety effort and a “metapostures” program that teaches employees stretches that “strengthen muscles and lubricate joints.”

SFM offers free wellness resources that will help keep employees healthier and safer.

The Get Fit & Exercise program presents simple exercises your employees can perform to help prevent shoulder injuries. The Get Up & Move stretching kit illustrates easy exercises and stretches that employees can do during the workday.

For more, read our Wellness in the workplace CompTalk or other blog posts about wellness.

Whichever tactics you use, watching out for your employees’ health and safety is an important way to show them you care about their well-being and build a positive work environment.

This post was originally published in February 2015 and updated January 2017 prior to this latest version.

Opioids and workers’ compensation: Why employers should care

Posted on by Patty Busse

Opioid-involved drug overdoses topped 100,000 in 2022, according to the Centers for Disease Control and Prevention (CDC).

And another 10 million people misused prescription opioids in 2019, reports the U.S. Department of Health and Human Services .

Opioid painkiller misuse has become widespread, affecting every facet of life – and that includes the workplace. It not only threatens the general well-being of employees, but it can also create on-the-job safety risks and inhibit recovery and return-to-work.

Opioids do have their place when properly prescribed and used, but their misuse can have devastating effects on your employees.

Here are some basics for employers on opioids and opioid misuse:

What are opioids?

Opioids are narcotic painkillers that work by preventing pain signals from reaching the brain. They are synthetic drugs that resemble the effects of natural opium, derived from the opium poppy. OxyContin and Percocet are a couple of the popular brand-name opioids, but there are many more. Taking them may produce a euphoric effect, or “high.”

Why are they prescribed?

Opioids are generally recommended for short-term pain relief due to injury, surgery, disease or cancer treatment, or as a palliative measure for the terminally ill, but doctors also prescribe them to address chronic pain.

However, due to increasing opioid prescriptions for chronic pain, and a related increase in overdose deaths, the CDC issued guidelines for prescribing opioids. The guidelines are intended for primary care clinicians and other clinicians providing pain care for outpatients 18 years or older with:

  • Acute pain (duration less than 1 month)
  • Subacute pain (duration of 1-3 months)
  • Chronic pain (duration of more than 3 months)

Are they necessary and effective?

Studies show that long-term use of high doses of opioids usually isn’t the best treatment for chronic pain, unless the patient is terminal.

In fact, nonopioid therapies are at least as effective as opioids for many common types of acute pain, according to the CDC.

“Clinicians should maximize use of nonpharmacologic and nonopioid pharmacologic therapies as appropriate for the specific condition and patient and only consider opioid therapy for acute pain if benefits are anticipated to outweigh risks to the patient,” reads a portion of the guidance from the organization.

Using the drugs long term can actually increase a patient’s sensitivity to pain, requiring higher doses for the same level of pain relief. This escalating dosage pattern can contribute to opioid addiction. Also, opioids are not among the most effective – or longest lasting – options available for relief from acute dental pain, an examination of the results from more than 460 published studies has found.

In addition to the risk of tolerance and addiction, according to a CDC factsheet , other side effects of taking opioids can include: constipation, nausea, vomiting, dry mouth, sleepiness, dizziness, confusion, depression, lower testosterone (resulting in lower sex drive, energy and strength), itching and sweating.

What about other treatment options?

A 20-year analysis of health care treatment released in early 2024 revealed a significant rise in use of complementary health approaches, such as yoga and meditation, especially for pain management.

The analysis , conducted by the National Institutes of Health’s National Center for Complementary and Integrative Health and published in the Journal of the American Medical Association, found that the percentage of individuals who reported using at least one of seven alternative approaches to care increased from 19.2 percent in 2002 to 36.7 percent in 2022.

For pain management, the use of alternative therapies increased from 42.3 percent in 2002 to 49.2 percent in 2022.

Researchers utilized data from the 2002, 2012 and 2022 National Health Interview Survey to evaluate changes in the use of seven complementary health approaches, including yoga, meditation, massage therapy, chiropractic care, acupuncture, naturopathy and guided imagery/progressive muscle relaxation.

How likely is it that one of my employees will suffer from opioid addiction?

In 2022, there were 39.5 prescriptions written for every 100 people in the U.S., although some counties had rates above 51 per 100 people, according to CDC prescribing rate maps . That 39.5 figure is down from 46.8 in 2019.

Opioid abuse has become so pervasive that any employer should be conscious of the possibility that an employee could be affected. The U.S. Health and Human Services Department declared the opioid crisis a public health emergency in 2017.

About 3 million people in the U.S. have had or currently suffer from what the National Library of Medicine calls opioid use disorder (OUD) as of July 2023. The group says the increase in OUD can partially be attributed to the overprescribing of opioid medications.

As an employer, how does this issue affect me?

The most important aspect of the opioid addiction epidemic is its potential to significantly impact the well-being of your employees, whether they themselves are misusing the drugs, or they’re dealing with the stress of a loved one’s addiction. Any drug addiction can have numerous negative effects like harming family relationships, threatening financial stability and even causing death.

Employee opioid use can also affect workplace safety. Employees taking opioids (even if not addicted) could pose a safety risk to themselves and other employees, depending on the kind of work they do.

  • The behavior of someone on opioids can be similar to that of someone who has been drinking
  • Jobs that involve working from heights, being on construction sites and driving are among those that cannot be safely performed while on opioids

An employer might choose to have a policy preventing employees from performing these kinds of tasks while taking drugs, like opioids, that can diminish alertness.

State laws differ on employee drug testing, and additional legal issues such as compliance with the Americans with Disabilities Act can come into play, so it’s wise to consult legal counsel before instituting a formal policy.

What’s being done to combat the trend of opioid abuse?

Medical providers, pharmacists, insurers and government agencies are all taking steps to combat the epidemic.

Doctors are assessing patients’ risk factors for misuse of opioids more carefully before prescribing them. More doctors and pharmacists are also participating in prescription monitoring programs, which are statewide databases listing all prescriptions of controlled substances and when those prescriptions are filled.

These systems allow doctors, dentists, pharmacists and law enforcement to see whether a patient is getting multiple prescriptions from different doctors, or filling the same prescription in multiple places.

Some physicians also use narcotics contracts to better control patients’ use of opioids. These contracts typically prohibit a patient from getting pain medication prescriptions from other doctors. Many physicians will obtain random drug testing to ensure that patients are taking their medications as prescribed.

Insurers are often requesting peer-to-peer reviews when they question whether an injured employee is being prescribed the most appropriate medications. In these cases, a pharmacist and pain management specialist will look at the case and talk with the treating physician about their course of action. SFM has a prescription drug review nurse on staff who reviews opioid prescriptions and works with treating physicians and claimants to help wean them off the drugs.

Lastly, the CDC has issued federal guidelines for prescribing opioids for chronic pain. The states of Minnesota, Wisconsin, and many others, have issued state treatment guidelines.

Additional resources

 

This blog was originally published in December 2022 and has been updated with new information and additional research.

This is not intended to serve as legal advice for individual fact-specific legal cases or as a legal basis for your employment practices.

Nine expert tips that can lower your workers’ compensation costs

Posted on by Patty Busse

Many employers don’t realize how much control they can have over their workers’ compensation premiums.

Because premiums are based partially on your loss history, you can avoid future premium increases (and maybe even see some reductions) if you take steps to prevent injuries and ensure your claims are well managed.

Of course, it’s always a good idea to get ahead of potential injuries. Being proactive and building a safety culture in the workplace helps. This can include:

  • Creating safety committees
  • Implementing safety walks
  • Checklists to encourage safety
  • Regular safety discussions between employees and leadership

Below are some of our top tips for controlling your losses and, as a result, your workers’ compensation premiums.

1. Have a list of transitional jobs ready for when you need it

List light-duty, transitional jobs that fit within a variety of work restrictions.

That way, when employees are injured, you can easily identify jobs that fit within their restrictions and get them back to work quickly. Delays of even a day or two can increase claims costs substantially by triggering wage-loss payments that would otherwise be unnecessary.

2. Consider all your options to bring the employee back to work quickly

Bringing employees back to work when they’re still recovering can sometimes require a little creativity. A few options include:

  • Reducing the employee’s work hours or work days
  • Bringing the employee back in a different position at a reduced wage
  • Modifying the employee’s equipment or work area
  • Swapping tasks with other employees or reorganizing work within the injured employee’s group
  • Arranging for temporary work in a different area of the company
  • Creating a new lighter-duty job that will be transitional and temporary

Many employers don’t realize that if they bring injured employees back to work at less than their full pre-injury wage, their workers’ compensation insurance will make up most of the difference.

3. Have a relationship with an occupational health clinic

Quality of treatment counts for a lot in medical costs and outcomes.

To find a good clinic, ask officials there whether they have experience treating injured employees and accommodate return to work so the employee can heal while on the job. Ask what information they’ll need from you in the event of an injury, such as an injured worker’s job description.

4. Have a point person for return to work

It helps to have one person who is accountable for getting injured employees back to work as soon as medically possible.

This generally includes staying in contact with the employee, working with the treating doctor and involving the employee’s supervisor.

5. Ensure that employees understand and follow any work restrictions

When injured employees don’t follow their doctors’ restrictions, it can result in costly claim complications.

Take the time to go through employees’ restrictions with them and discuss any aspects of the job that could cause them to do work beyond what their doctor has permitted. Also make sure they know they should follow their restrictions both at work and outside of work.

6. Stay in contact with your injured employees

Let injured employees who are off work know that you are concerned about their injuries and recovery, that you value what they bring to the organization and that you are looking forward to their return.

Keep up on the status, expectations and return-to-work date for each injured employee. Have a plan and stay in touch with the employee, supervisor and claims representative to make sure things stay on track.

7. Report injuries right away

As soon as you learn of an injury, the clock starts ticking toward state deadlines for paying or denying benefits.

Reporting right away keeps you in compliance with these laws and regulations, and allows your claims representative to be responsive to your employees. Delayed reporting can result in longer-duration claims and higher costs. (See our injury reporting page for ways to report.)

Watch out for communications breakdowns. Employees and supervisors need to know who to contact when an injury occurs, and your organization’s point person for reporting claims needs to act with a sense of urgency.

8. Analyze past injuries

Anytime an injury occurs, conduct an accident analysis to identify what caused it and how similar accidents can be prevented in the future.

You can also use your loss history reports to help spot problem areas and identify opportunities to improve safety.

9. Develop a wellness program

Studies show there is a connection between health issues — such as obesity, diabetes and hypertension — and higher workers’ compensation costs.

But that’s only one benefit of finding ways to encourage wellness among your workforce. Encouraging healthy lifestyles can also raise productivity and reduce health care costs.

 

Originally posted May 2017

This is not intended to serve as legal advice for individual fact-specific legal cases or as a legal basis for your employment practices.

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Be on your guard for slips and falls all winter long

Posted on by Patty Busse

Even with the end of winter on the horizon, you still need to be wary of the dangers of slipping on the snow and ice.

And this is especially true at the tail end of winter. Warmer weather may lull you into a false sense of security, but thawing and refreezing can make roads and walkways even more treacherous.

Each year, hundreds of employees insured by SFM report falling because of snow and ice — it’s one of the most common causes of injuries.

In fact, about 674,000 cases of falls, slips and trips were reported by private employers 2021-22, according to the U.S. Bureau of Labor Statistics (BLS), with many of those incidents requiring employees to miss work because of the incident.

According to SFM claims data, 25 percent of ice- and snow-related falls occur in parking lots and 20 percent of slips and falls that occur in parking lots result in lost time from work.

Meanwhile, SFM estimates the average winter slip-and-fall lost-time claim costs range from $40,000 to $45,000. The costs — direct and indirect — mount quickly and can’t be ignored.

“Slips and falls during winter can be a major issue for worker safety,” said Director of Loss Prevention Lee Wendel. “But both workers and employers can take steps to mitigate the dangers and stay safe all winter long.”

Be on your guard for slips and falls all winter long

Staying safe from slips and falls

Employee injuries sustained in falls are costly. The National Institute for Occupational Safety and Health says workers’ compensation and medical costs associated with workplace fall incidents have been estimated at $70 billion annually in the U.S.

Despite the perils of getting around during winter, there are many preventive measures employers can implement to decrease the chance of on-the-job injuries.

  • Make sure gutters and downspouts flow away from walkways to avoid the dangerous freeze-thaw-refreeze cycle
  • Redirect any water flowing on walkways to avoid puddles
  • Treat walkways at high-hazard times and warn employees about potential hazards
  • Manage snow piles near walkways to avoid melting snow refreezing to ice
  • Plow snow below the grade of walkways to minimize downward flow
  • Repair walkways to eliminate uneven surfaces that collect water and ice
  • Designate safe paths of travel to and from building to discourage potentially dangerous shortcuts

The U.S. Occupational Safety and Health Administration (OSHA) reports that trips, slips and falls are the second-most common cause of workplace injury. Also, 20-30 percent of workplace falls result in a moderate or severe injury, including deep bruising, broken bones and concussions.

These incidents can be even more serious. According to the most recent data from the BLS, work-related fatalities due to falls, slips, and trips have increased in recent years:

  • 805 fatalities in 2020
  • 850 fatalities in 2021
  • 865 fatalities in 2022

About 20 percent of all workplace deaths are attributed to slips, trips and falls, per OSHA.

Employers must ensure walking surfaces at the workplace are free of snow and ice, according to OSHA safety standards.

Remind employees about winter hazards using SFM resources

With a few simple precautions, falls on snow and ice resulting in costly injuries can be easily avoided. Employee awareness is key.

“It’s important to keep reminding employees of the risks of winter slips and falls, and how to avoid them, throughout the season,” Wendel said. “We’ve tried to make that easy for employers by offering a variety of different resources.”

Consider some tips from SFM:

These tips and being aware of winter conditions can go a long way toward ensuring a winter spent upright and safe.

“Winter in the Upper Midwest often extends into early spring,” Wendel said. “By taking the necessary precautions and staying vigilant, workers can remain safe.”

 

Originally posted January 2018; updated March 2024.

Can you screen job applicants for prior workers’ compensation claims?

Posted on by Patty Busse

Employers sometimes ask whether they can screen job applicants for prior workers’ compensation claims.

Often, employers simply want information about previous claims in an effort to prevent reinjury. Even if this is the case, asking job candidates about past work injuries, disabilities or medical histories is illegal under the federal Americans with Disabilities Act (ADA).

At the same time, most states have anti-discrimination laws prohibiting such screenings. This includes human rights and fair employment laws in Minnesota, Iowa, Nebraska, South Dakota, Kansas and Wisconsin.

Employer can ask applicants about ability to perform required tasks

While employers are barred from asking applicants about prior workers’ compensation claims, they are permitted to request other types of information.

To begin, a prospective employer can ask in an interview or on a job application whether the applicant can perform the essential functions of the position with or without reasonable accommodation.

The employer can also ask the applicant to undergo a pre-employment physical examination after a conditional job offer has been made, as long as an examination is required of all applicants in the same category and it only tests for essential job-related capabilities.

If you require pre-employment exams in your organization, a written job description can be a valuable tool to the examiner.

Be sure to consult your employment law attorney to ensure your hiring practices comply with the laws in your area.

One final tip: Any records developed as part of the pre-employment process are required to be kept in a separate file from other personnel file information.

For more information, see SFM’s “Screening job applicants for prior workers’ compensation claims” Legal Advisory.

This is not intended to serve as legal advice for individual fact-specific legal cases or as a legal basis for your employment practices.

 

Originally posted May 2019

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