Return To Work A Small-Business Perspective

1. Return To WorkA Small-Business Perspective Presented by: Paychex Safety and Loss Control

2. Benefits of a Good Safety Program • Reduction or elimination of injuries • Healthier workforce with reduced absenteeism • Reduction in Workers’ Compensation claims cost and a Reduction of Indirect Injury Expenses • Increased employee productivity and morale An implemented Return to Work Program will help with all of these!

3. What Alternate Duty Isn’t • Make-work – which is real work, something that needs to be done • An excuse to goof off • A task that could re-injure the worker or aggravate an illness

4. Direct Injury Costs • Direct costs – Salary and Actual Workers Compensation premium costs, that cover: • Medical expenses • Employee benefits cost (wage replacement) • Settlement payments (reserves) • Companies pay a set annual premium that increases as your total direct costs increase • Carrier uses the last 3 years injury history to determine new rate • Some policies have deductibles

5. Indirect Injury Costs • Considered in industry to be four times higher than direct costs -- Examples: • Employee replacement cost • Injury investigation of lost time, including dealing with Carrier and preparing reports • Possible OSHA inspection and fines • Incident related equipment down time • Equipment replacement costs • Production down time due to damaged equipment and/or short staffing

6. Indirect Injury Costs (continued…) • Low morale (“company does not care for my well-being” -- “this is an unsafe workplace”) • Impact on employee motivation & productivity • Permanent injury, disfigurement or death of employee – loss of valuable personnel • Possible civil (or criminal) action outside of workers’ compensation • Increased workers’ comp expense for following year • Negative effect on future contracts and community reputation

7. Workers’ Comp Case Analysis II • Tennis Elbow: Manufacturing, Female, 40-50 years old, +15 years with company • +$25,000 after one year, no surgeries • 3 weeks lost-work time • Modified work since injury, unable to perform certain tasks • +$20,000 settlement due to permanent disability

8. Direct/Indirect Injury CostsWhat It Means In Profit Terms • Tennis Elbow (inflammation): • Average Direct Cost: $2,006 • Average Indirect Cost: $9,027 • Estimated Total Cost: $11,033 • Estimated net profit margin at 5 % • The ADDITIONAL sales necessary • Indirect Costs: $180,540 • Total Costs: $220,660 SafetyPay$

9. Return to Work Program • Bringing injured employees with physical limitations back to work -- Why? • Sitting at home are more apt to want to stay home • More apt to look for an attorney if sitting at home • Self-esteem is affected for not being productive • Tend to heal faster when return for modified work • Sends a message to other employees that they will not be able to stay indefinitely under Workers’ Comp and receive a check

10. Return to Work Program • Employer Benefits: • Improves the environment for full recovery • Reduces severity of employee lost time • Provides a form of “work hardening” by re-acclimating the worker to the job

11. Return to Work Program • Employer Benefits: • Encourages prompt notice of incidents • Helps avoid legal complications • Reduces possible false claims • MANAGED DISABILITY LOWERS WORKERS’ COMPENSATION COSTS

12. Safety Program Tools Return to Work Program • Employee Benefits: • Expedites the employee’s return to productive activities • Shifts focus from disabilities to abilities • Increases the employee’s self-esteem and self worth • Provides an improved sense of job security

13. Safety Program Tools Return to Work Program • Employee Benefits: • Shows the value or the employee’s contribution • Allows the employee to maintain contact and rapport with co-workers • Keeps the employee active

14. Policy that Establishes Responsibilities • Owners and/or Senior Management will: • Identify modified work opportunities • Capabilities, requirements, time limitations, duration of availability • Communicate and coordinate about the available work and if such work meets the restrictions required • Supervisors, physicians, worker’s compensation agencies and employees • Monitor employee progress until released to full duty • Employees will: • IMMEDIATELY report all injuriesto their supervisors • Maintain communication with physician and supervision • Comply with work restrictions     

15. Modified Work Process • “Physical Demand Analysis” form used so that work restrictions are clearly documented • Changes to restrictions kept up-to-date • Ensure employee and supervisor are clearly informed of work restrictions • Communicate with physician and insurance agency to ensure restriction changes are accommodated • Changes in address must be communicated • Refusal to work will follow normal HR policy

16. Form 1: To Physician at Time of Injury Date: _________________________________ Employee: _________________________________ To the treating physician: Our employee is presenting himself/herself to you for medical treatment under the Workers’ Compensation protocol for a work-related injury. Our company offers modified duty for all employees injured on the job. This employee has been instructed to return to work immediately after receiving treatment, if medically able. Please complete the attached form identifying any life, physical, or work restrictions that we can accommodate to promote the healing process and allow the employee to continue being productive in their work responsibilities. The reporting and billing information for our workers’ compensation insurance company is listed below for your convenience. Thank you,

17. Physical Demand Analysis Form (part 1)

18. Physical Demand Analysis Form (part 2)

19. Form 2: Temporary Position Offer Date: _______________________________ To: _______________________________ As of this date, we have received medical information from your treating physician and our workers’ compensation provider that you are released to return to work under modified work restrictions. As you know, we have modified duty available. You are instructed to report to work on __________________. Your return to work restrictions may include a reduction in hours, change of job activities or other restrictions. These restrictions have been established by your medical provider and approved by our workers’ compensation company. Your compliance with any restrictions established by your physician will be required. We look forward to having you back to work. Sincerely, Cc: Supervisor Worker’s Compensation Agency, Claims Department Dr. ___________________ (employee’s physician) Atty.__________________ (employee’s attorney, if applicable)

20. Records and Documentation • Confidential information includes: • Letter to Physician at Time of Injury • Physical restriction documents from physician • Return to work communications • Insurance company communications • Attorney letters • First Report of Injury • Employer notes and records • Work history

21. Training and Information • On the-job-training, as needed • All employees informed that a return to work program is available and enforced by company policy

22. Implementation Efforts Positive Effects APPLYING SAFETY IT’S A WIN-WIN SITUATION

23. Questions Paychex Safety And Loss Control

24. Definitions • Physical Demand Analysis: A comprehensive report from the treating physician identifying all life, physical and work restrictions or modification necessary to ensure the continuing healing of the individual while allowing for the individual to engage in appropriate work activities. • Lost Time: Any amount of time away from scheduled work activities due to the work-related injury. The recording of lost time begins the first full day after the injury that the employee is unable to return to work. • Modified Duty: Any restrictions affecting the normal work activities necessary to promote healing while the employee to continue limited work activities. These modifications may include physical limitations, reassignment of work duties or limited amount of time available to work.