Staffing Firms Could Feel The Impact From Changes In State Workers’ Comp Systems

Staffing firms may have to adjust to several changes in state workers’ comp systems. If a bill passes in Tennessee, it would be the third state along with Texas and Oklahoma to allow employers to set up their own workers’ comp programs. Attorneys are challenging Oklahoma’s opt-out law, which only took effect last year. Tennessee’s law would allow an employee to file a lawsuit. Both Connecticut and Arizona are debating bills that would cover emotional and mental distress and post-traumatic stress disorder.

If these bills pass, staffing firms will need to pay careful attention to how they will affect the cost of their workers’ comp coverage and the kinds of risks they take on. Arizona’s PTSD bill only applies to police and firefighters, but it could set a precedent for other types PTSD in the workplace. Connecticut’s bill targets employees with emotional fallout from “extreme workplace violence.” It will not only increase costs for staffing firms, temporary employees who suffer from this distress will likely require special accommodations.

Should these laws come to fruition, a Professional Employer Organization (PEO), can sort out the tangled web of workers’ comp rules and regulations. 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.

Professional Employer Organizations Are Still The Best Option for Staffing Firms

Staffing firms have many options for their workers’ comp insurance including direct carriers, state funds large deductible policies, and professional employer organizations (PEOs). It’s been noted in the industry that a large deductible policy or guaranteed loss program is preferable, but that is frequently not the case.

If you don’t have a “mature” staffing company with a dedicated risk management program and a chief financial officer in the back office to determine how much risk you can take, a PEO is a much better option. Workers’ comp insurance is one of the biggest expenses a staffing company has, and claims can be costly in time and money. PEOs have low deductibles and are affordable.

As more employers use temporary employees, there are small staffing firms popping up to pick of the slack in key areas. And a dedicated back office to ascertain risk and a strong balance sheet is usually not something they have. PEOs can handle all the staffing firm back office functions associated with workers’ comp requirements, until they can wrap their arms around the business. Once they’re in a stronger financial situation, they can consider other options.

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.

Too Many Lawyers Can Increase Your Premiums

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.

Misclassifying Your Employees Can Affect You Big Time

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.

Work Comp Reserves Can Affect Your Rates

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.

Claims Handling: A Crucial Part of Reducing Your Workers’ Compensation Bill

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.