Highlights
- Workers’ Compensation is an insurance program that’s mandatory for employers across the United States, except in Texas.
- Proactive measures are essential for minimizing workplace injuries and reducing Workers’ Compensation costs.
- At EPAY, we provide HCM software to help you create a safe work environment, including safety check-ins and managing claim reports. Request a demo to learn how it works!
Rising workers’ compensation costs are among employers’ greatest concerns, especially as “mega claims”—i.e., claims of $2 million or more—continue to skyrocket.
As an employer, you want your workers to be safe on the job. And in the event an employee is injured on the job, you want your workers’ compensation protection to respond.
But you also want that to happen as rarely as possible.
Fortunately, there are steps that you can—and should—take to reduce the risk of workplace accidents, workers’ comp claims, and all related costs.
Understanding Workers’ Compensation Costs
Workers’ compensation is an insurance program that provides financial support to employees injured on the job. While laws vary by state, every state except Texas requires employers to carry mandatory coverage, which typically includes these benefits:
- Medical expenses
- Lost wages
- Permanent disability benefits
- Vocational retraining
- Death benefits
Beyond these direct costs, employers often face significant indirect expenses associated with workplace injuries:
- Investigation of alleged injuries
- The expense of hiring/training replacement employees
- Safety training/development of new safety practices
- Potentially increased workers’ compensation insurance premiums
These all add up quickly!
Best Practices for Handling New Workers’ Compensation Claims
There’s a right way and a wrong way to respond to potential workers’ compensation events. Here are some best practices recommended by legal professionals:
Document Every Workers’ Compensation Incident Immediately
Get a written statement from the employee as soon as possible after an event. This ensures an accurate and timely record of the incident while memories are fresh and minimizes the potential for inconsistencies. Encourage candid accounts by creating a safe environment for the employees to provide their version of events.
Consider Retaining an Independent Accident Investigator
For potentially large workers’ compensation claims, an outside expert can objectively interview witnesses, collect statements, and handle safety investigations, providing valuable insights for the claim.
Consider Obtaining a Medical Canvass Investigation
If there’s reason to suspect a pre-existing condition, a trained investigator can discreetly check with local medical providers to determine if the employee has received treatment for similar injuries.
Obtain Surveillance Video, if Available
If available, analyze footage of the incident to compare it with employee statements and gather objective evidence.
Select a Qualified IME Doctor
An IME (independent medical evaluation) doctor’s opinion significantly impacts the claim outcome. Develop a network of trusted IMEs and ensure they receive all necessary documentation.
Use a Preferred Provider Program, if Allowed
Some states allow employers to create Preferred Provider Programs (PPP) for workers’ compensation medical care, which is helpful in states where employees are given a limited choice of medical providers.
Maintain Open Communication All Around
Communicate regularly with the injured worker (if unrepresented) to keep them informed about the claim process, treatment plans, and return-to-work options. Share all information with your workers’ compensation carrier and defense attorney, and conduct quarterly claim reviews with them to keep everyone aligned and working towards a resolution.
Best Practices for Preventing Workers’ Compensation Claims
Proactive measures are essential for minimizing workplace injuries and reducing associated costs. Here are some key strategies:
Make Employees Accountable for Good Safety Practices
Develop and communicate specific safety practices employees must follow, and incorporate them into performance reviews, disciplinary policies, and employee handbooks. Regularly communicate safety expectations and ensure employees understand their role in maintaining a safe work environment.
Incentivize Safe Behavior
Consider offering employees monetary incentives, such as bonuses and rewards, or sponsoring an enjoyable company activity—a pizza party, anyone? —to celebrate a safe month or quarter.
Encourage Confidentiality Regarding Workers’ Compensation Claims
Workers’ comp settlements can cause an unfortunate ripple effect, so it’s wise to minimize internal chatter about settled claims.
Implement Transitional Duty Programs
Transitional duty is temporary work offered to injured employees before they’re fully recovered. While it should always comply with employee work restrictions, the goal is to ease the injured worker back into the workforce quickly. Studies show that the odds of returning to full employment drop by 50% after a 12-week absence!
Provide Adequate PPE
Personal protective equipment (PPE) is what workers use to help shield them from potential hazards. It could include respirators, gloves, aprons, fall protection, and full-body suits, as well as head, eye and foot protection. Making sure workers have the tools they need to stay safe is a vital component of a proper workplace safety program and a way to help reduce incidents.
Leverage HR Technology
Use integrated HCM (human capital management) solutions to streamline safety processes, track incidents, and identify potential risks. For example, time-tracking systems can incorporate safety check-ins, while HR modules can facilitate claim tracking and analysis.
EPAY HCM’s time-tracking module, for instance, can be programmed to ask employees, “Did you have a safe day?” each time they punch out via a time clock or mobile app. A “no” immediately alerts employers to a potential claim, while a “yes” may later help refute an undocumented claim filed after an employee reported an accident-free day.
In addition, EPAY HCM’s HR module allows employers to track workers’ compensation cases, audit claim reports, track leave management, and more—all of which give employers greater insights and control over claims activity.
Create a Safe Work Environment for your Hourly Workforce with EPAY
While accidents can’t be completely prevented, there’s a series of proactive measures you can take as an employer to create a safer work environment, reduce the frequency and severity of workplace injuries, and ultimately control workers’ compensation costs.
EPAY’s HCM Software provides comprehensive solutions specifically designed for the unique needs of businesses with hourly employees. Our integrated platform offers a suite of tools that can help you effectively manage workers’ compensation claims, including:
- Time and attendance: Our time-tracking module incorporates features like safety check-ins, allowing you to proactively identify potential incidents and address them promptly.
- HR management: Our HR module provides tools for tracking workers’ compensation cases, auditing claim reports, managing leave of absence, and analyzing claim trends to identify areas for improvement.
- Payroll processing: Seamlessly integrate workers’ compensation deductions with your payroll processing for accurate and efficient payroll administration.
Schedule a demo today to learn how EPAY can help you improve your workers’ compensation management and protect your bottom line.
