by David Schek | Sep 8, 2014 | Affordable Care Act, Healthcare Insurance, News, Professional Employer Organization (PEO)
Almost every staffing owner I speak to these days wants to know how the Affordable Care Act (aka ACA –aka Obamacare) will impact their permanent and temporary employees. And of course their bottom line. Given the ongoing complexity of the law, many are considering hiring more administrative staff to educate employees or to retain an employment lawyer just to answer all the questions that will arise on a daily basis starting January 1.
While some companies are reluctantly looking to hire more permanent administrative staff these days to manage Obamacare, I recommend that many companies consider partnering with Professional Employer Organization (PEO) or Administrative Service Organization (ASO) to help them handle the implementation of this new complex law.
Finally, below is Q and A on ACA. This is a good example of an informational document, that while well meaning, seems to raise more questions than it answers. It is a good example why partnering with a PEO or ASO in 2015 – 2016 to help manage the implementation of the ACA makes a lot of sense.
If employees haven’t come to you with questions about the Affordable Care Act’s (ACA) affect on them, get ready … they’re coming. Want to know what they’re going to ask?
In a recent survey to gauge how single-employer plans are being affected by the ACA, the International Foundation of Employee Benefit Plans, a nonprofit research and education organization, asked employers to submit the most common questions their HR and benefits staff have been receiving from employees about the law.
More than 600 employers responded to the query.
Here are the top 10 questions employers were approached with — along with ways you can respond:
- How do the exchanges work? Am I eligible? Are they free? Could I qualify for a subsidy? How does exchange coverage compare to my current coverage?
Answer: The exchanges act as an insurance agent of sorts, allowing employees to shop for plans that meet their needs. And yes, everyone can to use them. But whether or not employees get a subsidy depends upon a number of things — like whether or not you offer them coverage, the level of that coverage and their income.
- How does the law affect me? Do I need to do anything?
Answer: The biggest effect is that individuals are now forced to have insurance or pay a penalty. And if you’re offering them coverage that meets the law’s minimum requirements, they don’t have to do anything.
- What will this cost me? Why are my costs going up?
Answer: Just about the only cost figures you could reasonably present them with are your health plan’s premiums and cost-sharing information. As for why costs are increasing, it’s because the cost to treat people in general is increasing, and insurers are accounting for that.
- Is the company planning to drop coverage?
Answer: Only you can say for sure.
- How will our benefits change? Are the changes because of health reform?
Answer: Chances are your plan underwent some changes over the past year — or you’re planning changes for 2015. Be prepared to explain what they are and the reasons behind them.
- Can my child stay on the plan longer?
Answer: Starting in 2010, the health reform law mandated that plans’ coverage to dependent children be extended until they turn 26. But beyond that, nothing has changed in this area as far as federal law is concerned.
- Do I have to get coverage if I don’t have it now? When will there be an open enrollment opportunity?
Answer: Again, individuals are required by law to obtain health coverage or pay a penalty. The exchanges will open again this November. You’ll also want to be prepared to share your plan’s next open enrollment period begins.
- Will I have an average of 30 hours per week and qualify for benefits in 2015?
Answer: If they don’t qualify for your company-sponsored plan, they can always obtain health coverage on the exchanges in November.
- Are we dropping spousal/dependent coverage?
Answer: Again, by law, dependent children must be allowed to remain on a parent’s plan until age 26. However, employer plans are not required to cover spouses. But be prepared to share whether you will or not.
- How does the law impact the future of the company?
Answer: This is a broad question, and one only you can answer. But if you don’t plan to make any drastic changes as a result of the law, share that with employees. It’ll help put them at ease.
Please feel free to contact me at david@StaffingCompSolutions.com and visit our web site at www.StaffingCompSolutions.com. I will be glad to discuss how a PEO or ASO can help you manage the implementation of this program in a very cost effective manner.
David Schek
President
StaffingCompSolutions.com
American Staffing Association Member
ASA Exhibitor 2014 Conference Booth 1123
California Staffing Association Member
StaffingCompSolutions.com—- Workers Compensation Specialists and Staffing Business Consultants For Over 25 Years.
by David Schek | Jul 9, 2014 | News, Staffing Company, Workers Comp, Workers' Compensation Insurance
Workers compensation rates are continuing to increase this year, but at a slower rate than 2013, according to an analysis released this week by Moody’s Investors Service Inc.
Rate firming is expected to slow to 5.5% this year, down from 8% in 2013, Moody’s said in Monday’s report. Still, this year’s rate increases are expected to remain “sufficiently above loss-ratio inflation” of about 2%, allowing an underwriting profit for 2014.
“However, our rate surveys suggest a reversal in risk appetite for WC in 2014, with carriers seeking to retain profitable accounts and competing for new business, which will dampen the pace of rate increases,” the report reads.
Moody’s expects that workers comp insurers will have a combined ratio of 98% in 2014 and 96% in 2015 if current industry trends continue, including rate increases and a reduction in taking on unprofitable accounts. That’s compared with a combined ratio of 103% in 2013.
Reserves for workers comp insurers “appear about break-even to modestly deficient for the industry,” Moody’s said. The use of predictive modeling in workers comp could lead to more stable loss reserve estimates in the future as the comp industry accepts such technology on a wider scale, according to the analysis.
This trend of moderating rates seems to indicate that if you are a staffing company with very few and small losses, there are a variety of workers compensation program options available. If your are like most staffing companies, workers compensation will continue to be a challenge and rates will probably rise again in 2015.
Please contact me at david@StaffingCompSolutions.com and visit our web site at www.StaffingCompSolutions.com for a FREE workers compensation quote.
All the best
David Schek
President
StaffingCompSolutions.com
American Staffing Association Member
ASA Exhibitor 2014 Conference Booth 1123
California Staffing Association Member
StaffingCompSolutions.com—- Workers Compensation Specialists and Staffing Business Consultants For Over 25 Years.
by David Schek | Jul 1, 2014 | News, Warehouse Safety, Workers Comp, Workers' Compensation Insurance
Careful planning and a dedication to safety are top priorities for keeping warehouse workers injury-free. Here is your no-slip, no-trip, ergonomically correct guide to warehouse safety.
Where most warehouse visitors simply see shelves, pallets, and boxes, Dixie Brock sees danger. In fact, Brock glimpses danger wherever she looks.
It’s not that she is easily frightened or overly cautious. Brock sees danger because it is a key part of her job as national safety and workers compensation manager for APL Logistics, an Oakland, Calif.-based transportation services provider that manages more than 100 warehouses worldwide.
“I constantly analyze accidents,” Brock says. “I study them, search for causes, and try to find ways to prevent them.”
More warehouse operators need to think like Brock, says Gary Gagliardi, vice president of Safety Resources, a safety consulting firm located in Indianapolis. While companies tend to focus their safety efforts on manufacturing sites and transport vehicles, warehouses also require attention, he says.
Yet, when it comes to warehouse safety, employees and management often tug in different directions. “Workers concentrate on going home with their fingers and toes intact,” Gagliardi says.
“Managers are also concerned about safety, but they focus more on where the company is headed, and how profitable it can be.”
To make sure that a warehouse is both safe and efficient, managers and workers need to pull together to spot dangerous practices and plan ways to eliminate threats.
“Companies need a culture of safety,” says Gagliardi. “Creating a safe work environment requires a good deal of effort, but it brings benefits to both workers and management.”
ADDING INSULT TO INJURY
Warehouse mishaps tend to be less severe than most manufacturing- and transportation-related accidents. Yet a series of relatively minor incidents can still seriously injure employees and lead to lost productivity, higher insurance bills, and government fines.
“The primary injuries occurring in a warehouse stem from lifting, straining, and turning,” says Joel Anderson, president and CEO of the International Warehouse Logistics Association, a non-profit organization based in Des Plaines, Ill., that represents more than 500 third-party warehouse and logistics service providers.
Similarly, APL reports these top three injury categories at its warehouses:
- Slips, trips, and falls.
- Ergonomic-related pains such as lifting, reaching, pulling, and pushing.
- Material handling incidents such as dropped boxes and forklift accidents.
Although not particularly severe, warehouse accidents are numerous—the warehousing and storage industry experiences nearly 15,000 injuries and illnesses each year, according to the U.S. Bureau of Labor Statistics.
To keep a lid on accidents, warehouse operators should stress worker training and establish safety best practices, says Bob Shaunnessey, executive director of the Warehousing Education and Research Council (WERC), an Oak Brook, Ill.-based organization dedicated to warehouse management and its role in the supply chain.
For most warehouses, forming a safety committee is the first step toward implementing enhanced safety procedures.
A safety committee’s members are usually selected from specific organizational groups—including warehouse floor workers, shift supervisors, and department managers. This approach gives everyone a voice, but keeps the committee’s size to an effective number of participants.
“Safety committees are a common practice,” says Shaunnessey. “In most cases, when management supports the committee, workers are likely to gain a safe work environment.”
Safety committees should not be confused with safety meetings. A safety meeting usually includes all floor employees, as well as a management representative, to ensure that key issues are addressed.
“Typically, a safety committee is an effective safety management tool for large employers, and safety meetings are effective for small employers,” notes Shaunnessey.
OSHA’S IMPACT
One pivotal player in warehouse safety is the U.S. Department of Labor’s Occupational Safety and Health Administration (OSHA), the federal agency responsible for ensuring safe workplaces.
OSHA exists to make sure businesses that do not take safety seriously won’t imperil their employees. Many warehouse operators take a skeptical view of OSHA, believing they can maintain a safe working environment without government oversight.
Warehouse operators that maintain a safe workplace generally have little to fear from OSHA, says Alex Sierra, health, safety, and environmental manager for Fluor Constructors, the construction arm of Irving, Texas-based engineering, procurement, construction, and maintenance service company Fluor.
“Warehouse managers need to realize that investing in OSHA compliance, and safety in general, is a smart move,” says Sierra. “The average cost of a recordable injury in the United States is $35,000, according to the U.S. Department of Labor. This expense directly impacts a company’s bottom line, as well as workers’ compensation and productivity costs.”
The best way to avoid becoming entangled with OSHA is by not attracting attention to your organization.
“If companies report recurring accidents, or other problems that attract OSHA’s attention, they are usually inspected,” Shaunnessey says. “During an inspection, OSHA may find unsafe practices and require the employer to correct them. If inspectors find egregious safety violations, they often impose fines.”
Warehouse operators who comply with OSHA safety guidelines don’t have much to worry about, says Gagliardi of Safety Resources.
“Generally, unless a ‘red flag’ pops up, OSHA does not have the manpower or the time to inspect a lot of warehouses,” he explains.
SAFETY SAVINGS
An emphasis on safety can generate cost savings—both direct and indirect. Warehouse operators who take the time to analyze their safety training and practices can reap financial benefits, says Patrick Floyd, senior executive vice president of operations for Total Logistic Control (TLC), a third-party logistics provider headquartered in Zeeland, Mich.
TLC, which operates 83 distribution centers nationwide, implemented a comprehensive safety plan that generated fast and measurable results.
“TLC reduced its recordable incident rate from 11.5 in 2000 to 3.63 in 2006,” notes Floyd. “This helped reduce workers’ compensation costs from $2.53 per man-hour to 30 cents per man-hour.”
The 3PL also makes safety an essential responsibility of its facility managers, office managers, and other supervisory personnel.
“Our managers’ annual key performance indicators are based upon how well their facilities comply with OSHA, safety, and process improvement,” Floyd says. “They cannot ignore safety concerns. If they do, it affects their performance as a leader and it affects their compensation.”
To keep safety top of mind for employees, training needs to touch on all key areas that affect warehouse safety, notes Brock. APL, for instance, offers separate programs on topics including slips and falls, forklift operation, heat exhaustion, ergonomics, and hazardous materials.
“Safety is not separate from what warehouse employees do every day,” she says. “Safety is a key aspect of how they do their job, and that’s the mindset they must have.
Please contact me at david@StaffingCompSolutions.com for a workers compensation quote and visit us at www.StaffingCompSolutions.com
All the best
David Schek
President
StaffingCompSolutions.com
American Staffing Association Member
ASA Exhibitor for Annual 2014 Conference
California Staffing Association Member
by David Schek | Feb 24, 2014 | News, Staffing Company, Workers Comp, Workers' Compensation Insurance
There has been a lot of news recently about the Federal and various State Governments increasing the minimum wage to between $8.50 to $10.10. What I rarely hear discussed is that this increase will also raise employers (total payroll tax burden) and workers compensation rates; since workers compensation is based on the hourly wage paid.
For example the increased minimum wage will increase workers compensation costs through higher indemnity payments. This is another reason your workers compensation rates WILL continue to increase over the next few years.
So what can a staffing owner do?
Make the discussion of increasing labor costs a regular topic with clients. I have found that staffing owners that rarely discuss how their labor cost inputs are increasing ( with their clients,) are usually the ones that find themselves with their backs against the financial wall much of the time.
The bottom Line— Maintaining adequate gross profits will be a moving target for the foreseeable future.
Please let me know how you feel about this topic? I really enjoy hearing from you about all staffing company issues.
And when you need to look for a new workers compensation solution please contact me at davidstaffing@gmail.com and visit our web site at www.StaffingCompSolutions.com
All the best
David Schek
President
StaffingCompSolutions.com
American Staffing Association Member
California Staffing Association Member
Exclusive PEO Broker for the United States Staffing Association
StaffingCompSolutions.com—- Workers Compensation Specialists and Staffing Business Consultants For Over 20 Years.
by David Schek | Feb 10, 2014 | News, Workers Comp, Workers' Compensation Insurance
First the good news, your clients workers compensation rates are going up. Now the bad news, workers compensation rates are increasing faster for staffing companies, and most insurance companies are less eager to underwrite staffing policies than they were in 2013.
Many of the staffing owners I speak with each week, tell me that they feel they are in a workers compensation vice that is driving them “insane.” For example, even if they can get a direct /private policy, rates are still high, deposits are large and increasing, and they awake each day feeling they are one accident away from getting terminated by their carrier.
Here is a good article with helpful suggestions to deal with the “workers compensation insanity” you may be feeling.
— http://ehstoday.com/safety-leadership/dealing-insurance-insanity-2014?goback=%2Egde_110114_member_5836877657001705474
The article suggests that you use best practices for managing your workers compensation in order to decrease your “insane feelings.” You should consider:
a) doing thorough due diligence when hiring employees.
b) conducting comprehensive training programs,
c) making sure that injured workers return to work as soon as possible, and
d) maintaining great communication with the injured workers at all times.
In this challenging environment you need to consider all the various work comp options to keep their rates low. For example, many owners in the last 24 months have found Professional Employer Organizations to be great partners that will reduce the stress and insanity of workers compensation.
Please feel free to contact me for a workers compensation quote at davidstaffing@gmail.com and visit our web site at www.StaffingCompSolutions.com
All the best
David Schek
President
StaffingCompSolutions.com
American Staffing Association Member
California Staffing Association Member
Exclusive PEO Broker for the United States Staffing Association
StaffingCompSolutions.com—- Workers Compensation Specialists and Staffing Business Consultants For Over 20 Years.