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TRANSITIONAL DUTY EMPLOYMENT

Learn about Transitional Duty Employment: a process aiding injured employees in safe return to work, reducing costs & making compensation more effective. Case studies from Louisiana highlight its benefits.

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TRANSITIONAL DUTY EMPLOYMENT

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  1. TRANSITIONAL DUTY EMPLOYMENT A RETURN-TO-WORK CONCEPT FOR WORKERS’ COMPENSATION COST CONTAINMENT

  2. Transitional Duty Employment A process that facilitates returning injured employees back into the workforce in a safe and timely manner after a work-related injury.

  3. Transitional Duty Employment Injured employees are returned to work • to perform meaningful, productive work and • within safe parameters of his or her physical capabilities.

  4. Goal of Transitional Duty Employment Offer temporary transitional employment options that fit the injured employee’s specific capabilities.

  5. Objectives of Transitional Duty Employment • Manage workplace injuries. • Temporarily modify the employee’s job description to accommodate physical restrictions identified by the treating physician. • Reduce workers’ compensation costs. • Make workers’ compensation more effective.

  6. State of Louisiana • Approximately 89,000 employees. • 4400 active workers’ compensation claims. • 960 of these paid compensation benefits on regular basis. • $55 mil spent on workers’ compensation. • Money comes directly from agency budgets.

  7. State of LouisianaPrior to 1999 Injured workers cannot return to work unless they can perform full duty. Civil Service won’t allow injured workers to return to work unless they are at 100% full duty.

  8. State of Louisiana ORM had to get legislative authority just to write a policy on return to work.

  9. State of Louisiana To make the legislative argument, ORM first worked a pilot program of Transitional Duty Employment at Pinecrest Developmental Center. A vocational rehabilitation counselor helped Pinecrest develop a transitional duty employment policy. The pilot was worked for one year.

  10. State of Louisiana Pinecrest was selected for the pilot program because: • They had the highest volume of workers’ compensation lost time claims. • They had the highest workers’ compensation premiums.

  11. State of Louisiana Before the pilot program… Pinecrest employees accepted the fact that they would not be allowed to return to work on any type of modified duty once released by the treating physician.

  12. State of Louisiana After the pilot was worked, Pinecrest employees were allowed to return to work, limited duty.

  13. State of Louisiana In the first six (6) months of the transitional duty pilot, Pinecrest saw a 15% reduction of its monthly indemnity pay-out.

  14. State of Louisiana At the end of one year of the transitional duty pilot, Pinecrest saw a 36% reduction of its indemnity pay-out.

  15. Statutory Authority for TDE R. S. 23:1547 In 1999, the legislature passed Senate bill 689 which gives ORM the authority to develop and administer a transitional duty program for State employees.

  16. Case Study INJURED WORKER

  17. Case Study Injured Worker got hurt on the job. • She received conservative treatment with Dr. Mild for 2 months. • Now Dr. Mild feels like Injured Worker can do something. • Dr. Mild releases Injured Worker to return to work except… she can’t lift over 25 pounds.

  18. Case Study Injured Worker is so happy she can go back to work.

  19. Case Study Injured Worker’s supervisor does not allow her to return to work because she is not released to return to work full duty.

  20. Case Study Injured Worker just doesn’t know what to do…

  21. Case Study Injured Worker gives the bad news to her adjuster: “Keep sending me my checks!” Develops renewed interest in: Dr. Phil The Biggest Loser Casino Gaming

  22. Case Study Because Injured Worker is not allowed to work, restricted duty -- Compensation benefits continue to be paid.

  23. Case Study Injured Worker’s doctor doesn’t see what the big deal is. As her doctor, he knows Injured Worker can work.

  24. Case Study Injured Worker doesn’t see what the big deal is either, she knows she can work. She can do everything her job requires her to do except the lifting.

  25. Case Study Sadly enough, Injured Worker’s supervisor doesn’t see what the big deal is, either. After all, Injured Worker is being paid workers’ comp benefits anyway, right? What’s the big deal?!

  26. Case Study The big deal is: • Workers’ compensation benefits continue until the injured worker returns to work, or • The injured worker is released to return to work regular duties by a treating physician.

  27. THE ECONOMICS OF RETURN TO WORK

  28. The Economics of Return to Work A claim for a health care worker who hurts her back lifting a patient will cost the employer $5,150 with a return to work program. Without a return to work program the same claim will cost $29,250. This is a 72% difference.

  29. The Economics of Return to Work • If Injured Worker is unable to return to her previous work earning the same wages or • If she is unable to earn 90% or greater of her pre-injury wage... R. S. 23:1226 requires Injured Worker’s employer to provide rehabilitative services: Job placement Retraining

  30. The Economics of Return to Work Rehabilitation of injured workers automatically adds $5,000 - $7,500 to value of a claim. Benefits continue to be paid during the rehabilitation process.

  31. The Economics of Return to Work At the end of the rehabilitation process, if the injured worker is unable to earn wages equal to 90% or greater of pre-injury wage, she is entitled to supplemental earnings benefits or SEB.

  32. The Economics of Return to Work SEB is based on 66 2/3% of the difference between: • the pre-injury wage and • what the employee is now capable of earning.

  33. The Economics of Return to Work While this reduces benefits, benefits are still being paid.

  34. The Economics of Return to Work As long as an injured worker is off work, indemnity and medical benefits continue to be paid. These affect premiums.

  35. The Economics of Return to Work If the claim is settled, another $30,000 – $50,000 is added to value of the claim.

  36. The Economics of Return to Work If a claim is settled, in most cases, consideration must now to be given to a Medicare Set Aside which will significantly increase the settlement amount.

  37. Transitional Duty Employment The only way to stop indemnity payments altogether …

  38. Transitional Duty Employment Return injured workers to work with the employer of injury on transitional duty.

  39. BENEFITS OF RETURN TO WORK To the Employer

  40. Benefits of Return to Work • Keep workers’ compensation costs down. • Productivity increases and human resources are used to the maximum extent. • Manage impact of workers’ compensation claims on premiums. • Reduce the fiscal impact of workplace absences.

  41. Benefits of Return to Work • Wage costs for substitute employees are saved. • Work delays and business interruption are eliminated when an experienced employee returns to work. • Creates goodwill and positive image with the public and employees.

  42. Benefits of Return to Work When an injured worker is sitting home watching Dr. Phil …

  43. Benefits of Return to Work A commercial comes on that says: “Have you been hurt on the job? Call me, I’m a lawyer, I can help. I can get you top $$ for your claim.”

  44. Benefits of Return to Work This is how he does it and employers help the injured worker’s attorney by not returning injured workers back to work light duty.

  45. Benefits of Return to Work Transitional Duty Light Duty Restricted Duty Modified Duty Temporary Assignment of Duties.

  46. Benefits of Return to Work Whatever you call it, justget ‘em back to work!

  47. Benefits of Return to Work Transitional Duty Employment is an absolute must for keeping workers’ compensation costs down.

  48. Think About It Would you like for your employee to sit here?

  49. Think About It Or here?

  50. Benefits of Return to Work When an employee is sitting home collecting a comp check -

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