A Tip for Controlling Workers’ Compensation Costs

Off-site Transitional Duty Programs

A valuable tool for controlling workers’ compensation costs for an employer is the implementation of an effective transitional duty program. Without this piece, employers can struggle to manage workplace injuries, and workers’ compensation claims are more likely to spiral out of control. For this reason, many organizations have adopted transitional duty programs and created job task banks to allow for the accommodation of a variety of work restrictions.

But what if you don’t have work that falls within the prescribed work restrictions for an employee injured on the job? Many companies face unique challenges, such as limited transitional duty options, remote employees and language barriers. For situations like these, off-site transitional duty programs are a viable option, as they offer an injured employee meaningful work during their recovery period at off-site locations.

Many insurance carriers have a network of prequalified not-for-profit organizations and volunteer sites available to assist employers in offering meaningful work to injured employees when circumstances may not otherwise allow transitional duty within the workplace.

What are the benefits of off-site transitional duty?

  • Reduces or eliminates the number of lost workdays and helps the employee recover more quickly than if they would have been off of work.
  • Eliminates the financial disruption of the employee, as the employer pays their normal wages during the placement, resulting in no indemnity payment on the workers’ compensation claim.
  • Potentially lowers an employer’s experience modification factor by applying the experience rating adjustment on medical-only claims, resulting in a 70% reduction in the overall claim cost (for participating states).
  • Reduces legal risks, as studies have shown that employees actively engaged in return to work programs are much less likely to seek legal counsel.
  • Reduces deconditioning and assists employees in maintaining strength and endurance during their recovery period for a safer gradual return to regular job functions.
  • Provides possible tax incentives.

How To Implement

If, after meeting with supervisors and managers to identify adequate transitional tasks, there is a realization that there are limited options, consult with Morris & Reynolds Insurance. We can help you implement a comprehensive return to work program that will protect your bottom line, while still providing your employees with appropriate care.

We hope you found this article helpful and informative. Please do not hesitate to contact us should you have any questions. We are always here to help.