by David Schek | Feb 17, 2015 | Professional Employer Organization (PEO), Workers Comp, Workers' Compensation Insurance
Once an employer has confirmed that an injury arose out of employment, the workers’ comp carrier is supposed to pay the claim and work with employer and claimant to get the worker back to work quickly. Unfortunately this doesn’t always happen, if the injured workers don’t think they’re being treated fairly.
When injured workers think they are not getting the care they need or the benefits to which they are entitled, they call a lawyer. Lawyers can double and triple the cost of any claim and possibly increase the premiums your staffing firm pays. In some states, such as California, the law itself can be so byzantine that a lawyer is almost required. That doesn’t have to be the case with all or even most injuries. Here are some tips to avoid litigation.
- Maintain communication at all times. These are your employees and they are valuable. Check in with them on their case and care, and respond to their concerns and questions.
- Make sure benefits are being paid in a timely fashion and that the worker is getting all approved care including prescriptions paid for.
- Assure the injured worker that he will return to work and discuss how and when that will happen.
The laws regarding medical treatment, benefits and return to work requirements can differ by state. Professional Employer Organizations (PEOs) can keep track of the workers’ comp requirements helping provide a valuable source of information to your injured workers. Please call us for a FREE workers’ compensation quote at 202-302-1212. Or visit us at www.StaffingCompSolutions.com.
All the best
David Schek
President-Work Comp Staffing Solutions
Over 25 Years of Staffing Workers Compensation Experience.
by David Schek | Feb 10, 2015 | Professional Employer Organization (PEO), Workers Comp, Workers' Compensation Insurance
Recently in New Jersey, a family owned staffing company was busted for allegedly misreporting the number of employees in their staffing firm. In this case they underreported to the tune of $30 million. By doing this they failed to pay adequate workers’ comp premiums, leaving their most important asset, their employees, vulnerable. Here is how you can avoid this problem of misclassification.
- At the outset when you add new employees, make sure your employees are properly classified for workers’ comp.
- Monitor those classifications on a regular basis. They can change, which means you may need to pay more premiums.
- If you have multiple offices, keep track of the number of employees each one has. If they’re in multiple states, there may state laws with which you must comply.
Professional Employer Organizations (PEO) can help you keep track of all the legal requirements associated with your employees. Mistakes, even if unintentional, can cost you dearly. Please call us for a FREE workers’ compensation quote at 202-302-1212. Or visit us at www.StaffingCompSolutions.com.
All the best
David Schek
President-Work Comp Staffing Solutions
Over 25 Years of Staffing Workers Compensation Experience.
by David Schek | Feb 2, 2015 | Professional Employer Organization (PEO), Workers Comp, Workers' Compensation Insurance
Workers’ compensation insurance has a long tail. In other words, if one of your employees gets injured, the insurance company must set aside or “reserve” a certain amount of money to cover a workers’ comp claim until it is closed. How an insurance company reserves is a question staffing companies frequently asks me. It matters because a serious injury to one of your employees will require a higher reserve and will probably increase your rates or cause you to be cancelled by the company. Remember it may take a couple of years to settle the claim so while the claim in “open” your rates will be negatively impacted. Here are some factors carriers consider when evaluating claim reserves:
- Fee schedules and ceilings on care. Some states have fee schedules and limits on types of care, such as chiropractic. This tends to make the cost more predictable. Other states do not.
- Permanent and temporary disability and lifetime medical. These are expensive items for which to reserve. Some states are more generous than others for disability and formulas vary. Future medical is affected by a number of factors including age.
- Vocational rehabilitation. Depending on the severity of the injury, some kind of rehabilitation may be required, so an injured worker can return back to work. This requires expenses associated with accommodating the employee in the workplace or assistance in finding new employment.
- By knowing these factors, a professional employer organization (PEO) can give you an estimate on how much an injury will affect your experience modification.
Since Professional Employer Organizations (PEO) tend to work with you as a business partner (versus simply as an account on a profit loss statement) they will work hard with you to keep reserves to a minimum, and get your claims closed as soon as possible.
Please call us for a FREE workers’ compensation quote at 202-302-1212. Or visit us as www.StaffingCompSolutions.com.
All the best
David Schek
President-Work Comp Staffing Solutions
Over 25 Years of Staffing Workers Compensation Experience.
by David Schek | Jan 27, 2015 | Professional Employer Organization (PEO), Workers Comp, Workers' Compensation Insurance
Injuries related to lifting, pushing, pulling and slips and falls are a major source of injuries and comprise many claims. Proper handling ensures that only “real” claims of injured workers receive treatment and benefits. Fraudulent workers compensation claims are reduced and eliminated. Getting your carrier or, better yet, a Professional Employer Organization (PEO) to keep track of and meet the basic requirements will prevent delays and lawsuits. Here are some tips staffing agencies should follow.
- Maintain a checklist of mandatory information to include on a claim and provide it to each claims adjuster
- Interview the employee immediately and thoroughly. Find out how and when the injury occurred. This is important if it’s a strain or sprain and the employee misses work. There may be a pre-existing injury that’s been re-aggravated.
- The staffing agency needs to make all employees aware of their rights and responsibilities under workers’ comp law. Requirements differ by state, and the burden is on the employer to follow the law.
- Keep claim loads manageable. It’s easy for claims adjusters to get overloaded, and that’s when mistakes are made.
Please call us for a FREE workers’ compensation quote at 202-302-1212. Or visit us as www.StaffingCompSolutions.com.
All the best
David Schek
President-Work Comp Staffing Solutions
Over 25 Years of Staffing Workers Compensation Experience.
by David Schek | Jan 20, 2015 | Professional Employer Organization (PEO), Workers Comp, Workers' Compensation Insurance
Although it has been discussed frequently in workers’ comp circles, the cost of using off label drugs to treat workers’ comp injuries is a practice that continues to thrive, despite states attempts to draw attention to it. It’s an industry that continues to cost employers over $1 billion a year. Besides the cost it’s dangerous, especially in pain management. Some drugs intended for Stage four cancer patients are being used to treat back and joint pain with no proof that they provide any benefit. In fact because they’re powerful opioids, they may do more harm by leading to addiction.
Indemnity claims are another cause for concern. While they’re going down in most states, California being the exception, injuries that result in lost wages and permanent disability still cost employers more in higher workers’ comp premiums. In the current economy insurance experts point out that cottage industries are cropping up that get injured workers on disability, as an acceptable alternative to working.
This has serious consequences for staffing as more and more companies rely on temporary employees. Emphasizing safety and managing the costs of workers’ compensation through a traditional workers’ comp carrier, or better yet a professional employer organization (PEO), should be a top priority if these trends continue.
Please call us for a FREE workers’ compensation quote at 202-302-1212. Or visit us as www.StaffingCompSolutions.com.
All the best
David Schek
President-Work Comp Staffing Solutions
Over 25 Years of Staffing Workers Compensation Experience.
