According to a report by the U.S. House of Representatives’ Committee on Education and Labor, a staggering 69 percent of all workplace injuries and illnesses may not be represented in the Bureau of Labor and Statistics Survey of Occupational Injuries and Illnesses, which many trust as a gauge of the safety of American workplaces. On a corporate level, not reporting or underreporting workplace injuries can have serious ramifications for the organization and the employer, which can include fines, exorbitant and unnecessary, health costs and more.
Research has found that the employer’s behavior, policies and attitude are key determinants in a worker’s decision to report an injury. Not only is it essential that employees are educated on the importance of reporting injuries, it is also important to examine your company policies so you are not inadvertently discouraging reporting. The consequences of underreporting can be severe.
Consequences of Underreporting
The unfortunate trend of injury underreporting can have serious ramifications at both the industry and company level. Widespread underreporting can be quite damaging to workers’ compensation rates on a large scale. Employers may not realize it, but such an underreporting problem may lead to more audits by insurance companies of their clients and higher rates for everyone. Many employers erroneously believe that reporting injuries leads to audits and higher rates.
Underreporting may lead to more audits by insurance companies and higher rates for everyone industry-wide. Many employers believe that reporting injuries leads to audits and higher rates.
At the company level, underreporting injuries can be quite costly for the employer. If it is an OSHA-reportable incident, the employer may face significant fines if it is not properly recorded or reported.
In addition, often when an injury isn’t reported or properly cared for immediately, it worsens and leads to higher health care costs and more lost time. Even if it is never reported as a workplace injury, the employer still loses out on health care costs and productivity.
If it is eventually reported, it becomes much more difficult to prove that it was workplace-related. Additionally, a study reported by the Hartford Financial Services Group found that injuries reported four or five weeks after the incident are 45 percent more expensive than injuries reported within the first week due to increased health costs and possible legal fees, or even a lawsuit, associated with late reporting.
One of the best ways to control workers’ compensation costs is through early reporting and intervention. Not only will it save money in health bills and legal fees, but it will also help to constantly improve your safety program. When there is an injury, consider it an opportunity to examine current safety procedures and decide if there is a suitable change that could be made to prevent similar injuries in the future.
Thus, prompt reporting can be a productive element to your safety program in your quest to always strive for the safest work environment. Rather than accepting a vicious circle where injuries are not reported and thus nothing is done to fix the problem, leading to more injuries, take advantage of injury reporting as a proactive solution to safety.
Reasons for Underreporting
There are several reasons why employees may not report injuries immediately or at all.
Incentive Programs
Many employers have reward or incentive programs to promote their safety initiatives, such as rewards for going a certain number of days without an injury. This can create a negative attitude toward reporting an injury, since doing so could cost that employee, a co-worker or a superior a reward or bonus.
Having incentive programs are a good idea, but a more effective strategy is to reward positive, safe behaviors. This can include reporting a safety hazard, attending a safety meeting or training class or equipment maintenance. Rather than rewarding for days without an injury, reward behaviors that strive to avoid injury, or even reward employees for prompt reporting when an injury occurs.
Fear of Negative Ramifications
Some employees fear that reporting an injury will create an image of them as weak to their co-workers and managers. He or she also may fear that such an image will be a detriment to his or her career.
Dispel this fear by assuring all employees that reporting an injury will have no negative impact on their job, and ensure follow through on all levels of the company. Work to promote a safety culture where prompt injury reporting is encouraged and praised. Injury reporting should never be frowned upon, even subtly or behind closed doors. If employees find out you are angry about a reported injury, he or she is less likely to report an injury in the future.
Some companies have a policy mandating drug testing after any incident whether or not there is evidence of drug use. This deters some employees from reporting injuries as well. Consider making the drug testing conditional depending on the circumstances of the injury and whether there is evidence that drug use was a factor.
For more information about injury reporting or your company’s workers’ compensation and safety programs, please contact Scurich Insurance at 831-661-5697 today.
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Why is job safety and health important?
In 2013, 4,585 employees died from occupational incidents, and there were a staggering 3.0 million total recordable cases of workplace injury and illness.
On average, each of these 3.0 million cases required eight days away from work, which means U.S. employers as a whole paid for millions of days of lost work time. Experts estimate that workplace injuries and illnesses cost U.S. businesses more than $125 billion annually. Effective job safety and health programs not only help reduce worker injuries and illnesses, they save employers money in the long run.
How does OSHA contribute to job safety and health?
The primary goal of the Occupational Safety and Health Administration (OSHA) is to carry out the Occupational Safety and Health Act (OSH Act), which Congress originally passed in 1970. The OSH Act has undergone several amendments and revisions since its inception, but it is still in place “to assure so far as possible every working man and woman in the Nation safe and healthful working conditions and to preserve our human resources.” OSHA contributes to job safety and health by enacting regulations that forward this ideal.
Title 29 of the Code of Federal Regulations (CFR), Parts 1902-1990, houses all the OSHA standards, though OSHA also allows states to enact occupational safety and health laws of their own under federally-approved plans. State-run programs are at least as strict, and sometimes more so, than federal standards. This ensures a minimum standard of job safety and health that all employers must follow to protect employees.
Are all employees covered by the OSH Act?
The OSH Act covers all employees except public employees in state and local governments and those who are self-employed. Public employees in state and local governments are covered by their state’s OSHA-approved plan, if applicable.
Federal employees are covered under the OSH Act’s federal employee occupational safety and health programs, which are outlined in 29 CFR Part 1960. United States Postal Service employees, however, are subject to the same OSH Act coverage provisions as those in the private sector.
Other federal agencies that have issued requirements affecting job safety or health include the Mine Safety and Health Administration (MSHA) and some agencies of the Department of Transportation (DOT), including the Federal Motor Carrier Safety Administration (FMCSA). Employees in these industries are subject to their respective regulations.
Additionally, businesses in the retail, service, finance, insurance and real estate sectors that are classified as low-hazard are exempt from most OSHA requirements, as are small businesses with 10 or fewer employees. Exceptions are discussed in 29 CFR Part 1904, which also explains which OSHA regulations exempt employers are still required to follow.
What are your responsibilities as an employer?
If you are an employer covered by the OSH Act, you must provide your employees with jobs and a place of employment free from recognized hazards that are causing, or are likely to cause, death or serious physical harm. You must also comply with the OSHA statutory requirements, standards and regulations that require you to:
- Provide well-maintained tools and equipment, including appropriate personal protective equipment (PPE)
- Provide medical assistance and guidance for employees sustaining workplace injuries/illnesses
- Provide required OSHA training
- Report accidents that result in fatalities to OSHA within eight hours
- Report accidents that result in the hospitalization of three or more employees to OSHA within eight hours
- Keep records of work-related accidents, injuries, illnesses and their causes
- Post annual injury/illness summaries for the required period of time
What are your rights as an employer?
When working with OSHA, you may do the following:
- Request identification from OSHA compliance officers
- Request an inspection warrant
- Receive a reason for inspection from compliance officers
- Have an opening and closing conference with compliance officers
- Accompany compliance officers on inspections
- Request an informal conference after an inspection
- File a notice of contest to citations or proposed penalties
- Apply for a variance from a standard’s requirements under certain circumstances
- Be assured of the confidentiality of trade secrets
- Submit a written request to the National Institute for Occupational Safety and Health (NIOSH) for information on potentially toxic substances in your workplace
What are employees’ responsibilities?
All employees are obligated to help prevent exposure to workplace safety and health hazards by becoming familiar with and adhering to all applicable OSHA requirements.
What are employees’ rights?
With regards to OSHA regulations, employees have the right, among other actions, to:
- Review employer-provided OSHA standards, regulations and requirements
- Request information from the employer on emergency procedures
- Receive adequate, OSHA-required safety and health training on toxic substances and emergency action plan(s)
- Ask the OSHA area director to investigate hazardous conditions or violations of standards in the workplace
- Have his or her name withheld from the employer when filing a complaint with OSHA
- Know what actions OSHA took as a result of the employee’s complaint and have an informal review of any decision not to inspect or issue a citation
- Have an employee representative accompany the OSHA compliance officer on inspections
- Observe monitoring and measuring of toxic substances or harmful physical agents and review related records (including medical records)
- Review the Log of Work-Related Injuries and Illnesses (OSHA 300 Form), if applicable, at a reasonable time
- Request a closing discussion following an inspection
- Object a citation’s set abatement period
- Seek safe and healthful working conditions without your employer retaliation
Why is OSHA important to your business?
OSHA plays a key role in making your facility a safe, healthy place to work. Beyond providing the tools and guidance to work toward an injury- and illness-free workplace, OSHA is important in identifying businesses that are not committed to safety. Employers that do not carefully follow OSHA regulations often face hundreds of thousands, if not millions, of dollars in fines.
How can you get more information on safety and health?
OSHA provides free publications, standards, technical assistance and compliance tools to help you understand the nuances of the regulations. OSHA’s website also offers extensive assistance by way of workplace consultation, voluntary protection programs, grants, strategic partnerships, state plans, training and education to guide you in your quest for workplace safety. To learn more about OSHA and the critical elements of a successful safety and health management system in your workplace, visit www.osha.gov.
This document is an introductory guideline. It does not address all potential compliance issues with OSHA standards. It is not meant to be exhaustive or construed as legal advice. Contact your licensed commercial property and casualty representative at Scurich Insurance or legal counsel to address applicable compliance requirements. © 2009-2012, 2015 Zywave, Inc. All rights reserved.
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For the unprepared, workers’ compensation (WC) issues can be both confusing and costly. Fortunately for employers, there are ways to actively engage WC issues to influence their outcomes.
Through management controls and active involvement in the WC process, your organization can effectively influence related costs. To do so you will have to establish a number of your own processes that guide decision making throughout your organization.
By developing a cohesive workers’ compensation process, you can play an active role in reducing related costs.
Areas requiring WC management can be divided into three main categories. These categories include facets that may range from the simple to the complex, but as a whole, address vital issues that can negatively influence WC costs in your company.
Workplace Safety Means Fewer Claims
Simply put, reducing claims reduces costs. Establishing a safety-minded culture throughout every level of your company is essential to keeping workers injury free. However, establishing such a culture isn’t an overnight solution. To be successful, an ongoing commitment to safety must be made. Such a commitment must be supported by management and given the necessary resources to succeed.
Developing comprehensive safety policies for employees builds a firm foundation for your safety culture to grow. Such policies also encourage OSHA compliance, further improving your safety efforts while helping you avoid costly fines.
Mitigate Loss After an Injury
Unfortunately, even with all the right programs in place, it is still possible for accidents to happen. When a workplace incident occurs how you respond can greatly influence the outcome of the claim. Prompt claim reporting is essential to keeping costs down.
It is also important to have a designated injury management coordinator, someone who can supervise open claims and work with both employees and medical personnel to facilitate the timely recovery.
The longer an employee is out of work the more expensive their claim will be. Return-to-work programs that allow injured employees to come back to work at a limited capacity during the recovery process, are one of the most effective tools business owners have to reduce the severity of a claim.
Managing Your Mod
Insurers use what is known as an experience modification factor, or mod, to calculate the premiums you pay for workers’ compensation coverage. By managing your exposures and promoting safety it is possible to manage your mod and decrease your premium rates.
Like a good safety program, controlling your mod is an ongoing process. To reap the benefits of lower premiums you will have to keep in regular contact with your insurance provider to ensure they have the most accurate data to use in their calculations.
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Knowing what to expect from an OSHA inspection can make the experience less stressful. Here is a brief overview:
Arrival
An inspector arrives at your facility during normal business hours, unless you are contacted prior to the visit. The inspector shows you his or her credentials issued by the U.S. Department of Labor, which authorize the inspection.
Preliminary Conference
The inspector tells you why OSHA selected your company, explains why the inspection is taking place, and reviews with you the standards which apply to your industry. You must then select an employee to accompany the officer during the inspection. Having an assigned guide selected prior to an inspection will help make the inspection process more efficient and will also help avoid unnecessary delays.
Tour
The officer will then inspect your workplace. The agenda for the inspection and its length is at the discretion of the officer, although most compliance officers cause as little interruption to your workday as possible.
During the inspection: The officer will investigate working conditions and ask questions of employees. He or she may take photographs or record instrument readings relating to safety and health hazards, take environmental samples, request files recording deaths, injuries, and illnesses, or instances of possible exposure to toxic solutions or harmful agents.
If the officer points out an easily correctable hazard—like a puddle of oil on a walkway—correct it right away to demonstrate your concern and your cooperation. Your action may or may not avoid an official notation.
Closing Conference
The officer will discuss findings, identifying any possible violations. Penalties cannot be discussed at this conference since only the OSHA area director sets penalties. Later, the officer will file a report with the area director. Any citations or penalties will be delivered to you via certified mail.
Inspections are stressful situations. But if you have done your homework, inspected your company regularly and taken steps to eliminate hazards, you have greatly increased the possibility of a good review.
Even if you never are officially inspected, self-evaluations may prevent accidents that will save you frustrating downtime, costly overtime, workers’ compensation claim costs, or even a potential lawsuit.
Are you prepared for an OSHA visit? If not, call Tony Scurich at 831-661-5697 to learn more about self-inspections and OSHA inspection criteria.
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A hot topic today in the manufacturing industry is nanotechnology, which is the control of matter on a molecular scale between one and 100 nanometers. This intricate methodology involves processing tiny materials to produce nanoparticles or nanomaterials.
To give a measure as to how small the building blocks are in these materials, a nanometer is about 50,000 times smaller than the width of a human hair and 10 times smaller than the size of a typical, single germ.
Today, the National Institute for Occupational Safety and Health (NIOSH) reports that new consumer products manufactured using nanotechnology are coming on the market at the rate of about three or four per week.
While nanotechnology is an exciting new field, it also may pose potentially serious for workers who handle nanoparticles. Keep safety and prevention in mind to protect your workers and your company.
Nanoparticles are already used in paints, car parts, eyeglasses, cosmetics, tennis racquets and clothing, and their use is expected to increase in the near future.
However, researchers and employers are not without doubts about this revolutionary technology. Concerns about the impact of nanomaterials and nanoparticles on the environment and on workers’ and consumers’ health have surfaced in the past five years.
Nanotechnology Hazards in the Workplace
The biggest risk in using nanotechnology in the production of materials is that nanoparticles are so small that they can assume different physical, electrical or magnetic properties than they normally would as larger particles. According to the American Society of Safety Engineers, nanoparticles also have a greater ratio of surface area to mass, and thus they have a higher level of reactivity, combustibility and absorption capacity.
The concern in all these areas is that when ingested, inhaled or even exposed to skin, scientists are not sure how the tiny particles will react with the body systems. What is known is that if they get into the body in any way, the particles are small enough to permeate through tissue.
Some evidence suggests that nanoparticles in the body create free oxygen radicals, which are atoms, molecules or ions with unpaired electrons and an open shell configuration. These particles are more likely to bond in unwanted side reactions, leading to cell damage and possibly cancer.
Situations that present significant (and potentially very harmful) exposures to your employees include:
- Working with nanomaterials without proper protection
- Pouring or mixing nanomaterials
- Working with nanomaterials when there is a high degree of agitation, like in extreme heat
- Generating nanoparticles in the gas phase
- Handling nanoparticles that are powders
- Maintenance of equipment used to produce or fabricate nanomaterials
- Cleaning of any dust collection systems.
Protect Your Employees
Researchers are also unsure if the current standards of ventilation and filtration systems will be 100 percent effective when working with nanoparticles because of their extremely small size. Because of the tremendous usefulness and prevalence of nanotechnology, combined with scientists’ uncertainty of its effects, many compare this development to asbestos and the government control of its use in the 1980s. The European Union’s Occupational Health and Safety agency issued a report citing nanoparticles as the number one emerging risk to workers. So what can your business do to protect workers from harm?
- Require special protective clothing for your employees. Research indicates that nanoparticles can probably penetrate traditional knit clothing. Ironically, clothing weaved using nanotechnology to prevent the entrance of minute particles could prove to be the most effective.
- Require all employees to wear eye protection even when not working directly with nanoparticles or nanomaterials. The particles tend to behave like gasses, settling more slowly than other particles and dispersing widely while also re-suspending easily.
- Restrict consumption of food and drinks to non-work areas. Nanoparticles could be just as harmful if ingested as if they are inhaled due to their ability to permeate through organs and into the bloodstream.
- Provide shower and locker room facilities for all employees, and require workers to shower and change clothing when leaving their work area. Be active in preventing the spread of nanoparticles outside the workplace.
- Educate your employees. Give them the latest information on nanotechnology news and trends so they are aware of the dangers and are sure to use extra precautions.
- Reduce unnecessary exposure. Limit the number of employees working with or around nanoparticles by using safe handling procedures or a closed system when working with high volumes of nanoparticles.
Looking Ahead
Nanotechnology could be a huge opportunity for growth in your industry. The American Society of Safety Engineers predicts that by 2019, 50 percent of all products produced will be influenced by nanotechnology, which will provide jobs for more than 1 million workers. In the future, nanotechnology will likely give rise to items that help prevent risk or danger in the workplace, such as noise absorption materials, fire retardants, advanced ventilation control and quick, efficient cleanup of pollutants and hazards.
However, the future could also hold health problems for workers exposed to nanotechnology, and lawsuits for companies who did not do enough to protect employees. Because the health hazards are so uncertain, you should create your safety and protective policies on the side of extra caution to protect both your employees and your company.
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If an employee is away, restricted or transferred for an extended period of time, follow these guidelines for completing the OSHA 300 form:
- Enter an estimate of the days the employee will be away.
- Begin counting days on the day after the injury occurred or the illness began, and update this number when you know the actual number of days.
- The count of days away from work ends on the date the physician or other licensed health care professional recommends that the employee return to work, whether or not the employee returns earlier or later than that date.
- When there is no physician recommendation, enter the actual number of days the employee is off work.
- Include weekend days, holidays, vacation days or other days off in the number of days recorded if the employee would not have been able to work on those days due to a work-related injury or illness.
- When the number of calendar days away from work or days of job transfer or restriction is greater than 180, enter 180 in the “Total Days Away” column.
- If an employee leaves the company for a reason unrelated to the injury or illness, stop counting days away from work or restriction/job transfer.
- If an employee leaves the company because of the injury or illness, estimate the total number of days away or days of restriction/job transfer and enter that estimate.
- Log the number of days away only on the 300 Log for the year in which the incident occurred.
- If the employee is still away from work because of the injury or illness when you prepare the annual summary, estimate the total number of calendar days you expect the employee to be away from work, use this number to calculate the total for the annual summary and then update the initial log entry later when the day count is known or reaches the 180-day cap.
- Never split the number of days between years and enter two amounts for two different years. Only record each injury or illness once.
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