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The Importance of A Safety Plan As It Relates To Workman's Compensation
The Importance of A Safety Plan As It Relates To Workman's Compensation
Workman’s Compensation
Mandy Sidelinger
Abstract
business’s overall safety plan. Employers are searching for ways to reduce costs
without negatively impacting their workforce or work process. The best way to keep
occurring in the first place. This paper examines the history of Workman’s
Compensation, the legal and governmental implications, and the challenges and
Introduction
doing business in today’s litigious world. Companies must continually analyze the
cost of workers’ compensation as it affects their overall profit margin and question
burden. The desire to save time and money in the manufacturing industry is critical to
the financial security of a business. Preventing injuries without impeding the
Initially proposed to furnish both the employer and the injured employee with a
action for business owners. Fraudulent claims, fear of skyrocketing premiums, and
animosity and workplace stress. There also are shifts toward employees simulating
injury to receive benefits without having to work as normal wage levels, and some
corporations have begun to shy away from providing the compensation benefits to
legitimately injured workers in fear that their insurance premiums will sky-rocket.
Prevention of injury, illness, and disease should be built into all companies’ strategic
Literature Review
There have been previous research studies that reinforce the idea of
company safety plans, all show a strong cause for the most stringent safety
compensation, and disability rights. He portrayed the reality that there are many
imperfections in many company’s systems. This included the idea that employees
have a false sense of how risky their job is, and the amount of influence they actually
have over the amount of risk that is taken. It has also been proven that it can be very
difficult, without proper safety management, to monitor the precautionary steps taken
by employees. Rea’s (1981) research also stated the safety program values in
association with worker’s compensation were displayed in a model proving that even
with safety plans lacking all useful information, worker’s compensation premiums
will still lower and less claims will be made due to a strong focus by all employees on
safety.
John Ruser (1993) also reinforced the significance of injury rate values
impacted by workers’ compensation. He also brought up and proved the point of the
injury severity being affected by workers’ compensation. Ruser’s (1993) research
included econometric models that displayed direct correlation between the amount of
rates. It was stated that Ruser (1993) “found that higher benefits increase the
frequencies of most nonfatal injuries, but reduce the number of fatalities.” This
concludes the flaw of workers’ compensation, that employees have the feeling of
“security” by having such benefits. This in turn leads employees to actually lose sight
training.
Consequences
This research by J. Paul Leigh and John A. Robbins (2004) stated that
limits (PELs) could reduce the number of occupational disease fatalities that are not
studies and estimated the deaths and costs of death in workplace diseases such as job-
related cancer and chronic respiratory disease. These estimates were compared to the
costs and deaths that workers’ compensation had covered. The authors found a
93,000 deaths and up to $23 billion in medical costs that stemmed from job related
diseases were not covered by workers’compensation (Leigh and Robbins 2004). This
correlation shows that although the flaw in the workers’ compensation system does
not always cover work-related disease, these deaths could be reduced by a company’s
industrial health and safety awareness. By proposing training and proper personal
protective equipment, employees could reduce exposure to hazards that could prevent
these diseases.
History
thousands of years prior. The law of Ur issued monetary recompense for definite
injury to workers' “body parts”, including skeletal fractures. The Code of Hammurabi
that dates back to 1750 B.C. also provided for compensation for undeviating
impairments and injuries and. Ancient Greek, Roman, Arab, and Chinese law
provided defined payments for difference parts of the human body (Guyton). As the
Middle Ages feudalistic form of government took hold, the feudal lord was the final
principled the lord, the more humanely and generously the injured serf would be
treated.
spread through Europe based on three principles, which were contributory negligence,
the “fellow servant” rule, and the assumption of risk (Guyton). The employer could
not be held liable if the employee had any responsibility in the resulting injury.
Likewise, if the injury sustained was caused in any way by a fellow employee, the
employer bore no responsibility under the “fellow servant” rule. Finally, if it could be
accepting the job offer, then the employer could not be held responsible since the
worker had assumed the job knowing the dangers that it entailed.
Those injured during the Industrial Revolution had few alternatives other than
attempting to deal directly with the employer. If that failed, the other available option
was to pursue a civil lawsuit that very infrequently weighed in on behalf of the
employee. As the compensation laws in Europe took hold, the United States followed
suit with the first workers' compensation laws in 1908, which applied solely to the
federal workforce (Jie). Then in 1911, Wisconsin became the first state to establish a
comparable legislation. The fundamental concept of this system was to guarantee that
an injured worker would receive prompt and adequate medical case as well as just
compensation for lost wages. Under this system the employer liability would be
limited. These laws gave assurance to not only workers but also employers that their
of the new found protection of the employees; which arose from the fact employers
had a vested financial interested in their workers. Any injured employees caused
workers' compensation premiums to spike, which caused employers to truly be forced
Governmental Impact
since its initiation until the Congress passed the Occupational Safety and Health Act
in 1970 and the American with Disabilities Act in 1990. The Occupational Safety
and Health Act of 1970 was primarily created to protect workers from incidents that
Safety and Health, Occupational Safety and Health Administration, and the Bureau of
Labor Statistics, worked together to initiate this process. The National Institute for
Occupational Safety and Health (NIOSH) conducts health and safety research,
provides educational tools for workers, and creates recommendations for the best
safety practices for particular industries. The Occupational Safety and Health
Administration, OSHA, is the enforcer of regulations for safety and health in the work
environment. The Bureau of Labor Statistics, BLS, tracks data connected to employee
American with Disabilities Act took was enacted in 1990. The Americans with
governments, other agencies and labor unions from discriminating against people
accommodations for disabled employees and disabled individuals may take legal
action if they are later wrongfully terminated because of the debilitating injury
(Adams).
Managers overall agree that reducing the severity and frequency of workplace
incidents in a key result of a well-defined safety plan. These numbers are definite and
are easy to measure using correlative models. However, managers can come to a
One problem in this case is the views of so many different experts with so
avoidance.
Many corporations find this problem in their efforts to create a unified “sense
of safety.” Such as, a mandated safety program cannot 100% ensure that there will be
no incidences. With large corporations with many locations, it can be hard to ensure
that all managers follow a well-thought out training program without some variation.
two or three years can reduce a company's workers' comp and general liability
involved happens in the work environment. Sometimes lawsuits can still arise out of
workers’ compensation cases. The two main types of settlements are “Stipulated
Finding and Award”, in which an agreement is reached without a judge but has the
same results as a courtroom trial, and “Compromise and Release” which can
statutory compensation law that states the amount and form of compensation an
injured employee is entitled to. The problem is that employers can actually buy
insurance against that statute Secondly; the statute offers a “set amount” based on
because an employer could say that no light duty could exist for that worker and state
the worker is not able to fulfill duties. This can force employees seeking
is, or completely faking an injury all together. The cost of investigating the incident as
well off-site monitoring of the “injured” employee, can become an additional cost to
the employer.
A comprehensive safety plan can not only prevent injuries in the workplace
compensation insurance holders can change the base rates derived from numerous
factors. The most integral factor is the employer's safety history. The cost of the
accidents have had lower costs, the future costs can be expected to also be lower. This
leads to lower premium rates charges to the companies. This portrays the economic
workplace are noted. As accidents decrease this leads to improved employee and
employer morale and ultimately overall productivity increases. This leads to a win-
by emphasizing the use of safety procedures and proper equipment. There are a
are likely to occur when the equipment does not have optimal operation or when
workers use equipment in which they are not accurately trained to run. Equipment
safety procedures should be instituted in the work environment not only to keep the
may be able to detect potential problems in advance thereby avoiding down time for
repairs and possible employee injury from improperly working equipment. This can
be followed up with a preventative maintenance plan that allows for the testing of
basis as well as periodic testing while the equipment is in full operation (Adams).
gear, durable footwear such as steel-toed boots, eye protection, and gloves are
examples of personal protective equipment that are essential to safeguard workers and
prevent on the job accidents. Adamantly ensuring that workers that use any type of
equipment wear PPE when running the machine they are trained on, filing PPE under
employees are working with equipment in the work environment, they should be
wearing PPE and be properly inspected as to if they are adequately “dressed” on any
extreme occasions.
company’s commitment to the safety plan. Clearly posted notices in break rooms and
common areas notifying employees that personal protective equipment are necessary
consider providing the gear for their employees. This shows that upper management
equipment can be label or color-coded to match the printed detailed safety procedure.
There should also be procedures in place for the proper disposal of hazardous and
waste materials.
Along with a written accident plan, employees need to be taught to respond
emergency exits, and the location and proper use of first aid kits. Instruction in safety
procedures should not be limited to new hires. Ongoing educational planning and
long-term training plans ensure that safety remains foremost in the minds of
employees, supervisors, and management teams. The end result is more cohesive
work environments that promote a philosophy of safety and helps the company
qualify for safety discount programs that help employers provide a safe workplace
package.
Employee education and training must include an orientation plan for new hires as
well as continued training for those who have completed their probationary periods.
Many OSHA standards explicitly require management to train employees and inform
them of the safety and health concerns surrounding their job. There are also OSHA
regulations that state the employer’s responsibility is to limit certain job assignments
specifically to employees who are “certified.” This generally refers to the fact that
these employees have had special training either on the job site or outside of the
integral part of every workplace’s safety and health program to protect workers from
their jobs in an efficient and safe manner. As equipment and processes become more
complex, the hazards associated with them become more multifaceted also. To maintain
stability in the workplace, risk factors must be minimized and employees must be
protected. One example shown below is to prepare a complete safety manual. Safety of
operations.
SAFETY POLICY
COMPANY
Title: Safety Program
Effected: All Effective Date: 11/2/2010
Approved By: Approved Date: 11/2/2010
health and safety risks arising from work activities. This responsibility for the
health and safety is not compromised by production or any other issues. This
injuries, illnesses, and near - misses. Reasonable practical measures are taken
employees on all Health and Safety issues. This communication includes, but
• COMPANY strives to maintain full compliance with all safety and health
process effectiveness and take pro-active steps to detect and correct any
are competent in the work related activates they are engaged in. All employees
are encouraged to take reasonable care for the health and safety of him /
herself, and fellow employees. All individuals are encouraged to report any
• COMPANY takes appropriate steps to plan for, and protect our employees in
the COMPANY safety program will result in appropriate actions being taken.
These actions may include but are not limited to disciplinary actions.
2.0 GENERAL
2.1 Definitions:
2.2 References:
2.3 Forms:
2.3.1 None
3.0 PROCEDURE
work place.
industry average.
3.1.3 Investigate record and report all workplace injuries / illnesses and
and other follow up activities. Corrective Actions may include but are
3.2.1 COMPANY’s Safety Program also aims to promote the safety and health
3.2.2 Systems such as Job Safety Analysis’s (JSA) s will be utilized to review
existing job tasks, equipment and workplace condition so that hazards are
all employees and their concerns are heard and addressed by Site
Management.
continual improvement activities within each location include, but are not
address the safety issues that have occurred and / or been detected.
3.4.1 Each location ensures that the health and safety regulations applicable to our
emergency. This protection extends to visitors and affected members of the general
b) Develops a system that the presence, identity, and affiliation of all visitors
d) Takes reasonable steps to minimize any adverse safety and health impacts
serious magnitude. Any COMPANY employee who engages in such conduct as stated
above maybe subject discipline and / or dismissal. Any visitor / individual who
COMPANY may inform the police or other law enforcement agencies if there is a
violence.
SAFETY PROCEDURE
COMPANY
Title: Injury & Illness Reporting
Effected: All Effective Date: 11/2/10
Approved By: Approved Date: 11/2/10
1.0 PURPOSE
To define the system for reporting Injuries and Illness to appropriate Site
employee/s throughout all stages medical treatment and their return to work. This
procedure applies to all employees, contractors and visitors while they are on
COMPANY property.
2.0 GENERAL
2.1 Definitions:
any existing injury in a person in the course of doing work that requires
first aid or medical treatment and to which job performance may have
2.1.3 Near Miss- A ‘near miss’ is an incident that although it did not
2.2 References:
3.0 PROCEDURE
911 and/or the appropriate number listed on the Emergency Call Flow
3.3.4 If worker has been deemed unfit or fit for suitable or modified
Conclusions
there were 5,488 workplace fatalities in the United States. The top workplace
regardless of fault, to aid in the compensatory relief of medical expenses and lost
wages, but often the cost to the employer is such that it makes the ‘cost’ of doing
business too high. The best way to avoid workplace accidents and decrease
avoid hazards, and protect employees, every organization must prepare a complete
healthy environment for both the employer and employees as well as serving as a
Adams, Shawn. 2008. "Costs drive safety training needs: workers' comp, OSHA and
indirect costs of accidents shed light on a company's safety training needs –
Agenda Safety & Security". HR Magazine.
Chadwick, Donna. 2009. “Workman’s Compensation Should not be Driving You Out
of Business” Fabricating & Metalworking (2009)
Jie, Ma Wen. 2008. “The History of Workers' Compensation Laws.” Iowa Orthop
J. 2008;
Leigh, J. Paul and John A. Robbins. 2003. “Occupational Disease and Workers'
Compensation: Coverage, Costs, and Consequences .” The Milbank
Quarterly, Vol. 82, No. 4 (2004), 689-721.
Rea, Samuel A., Jr. 1981. "Workmen's Compensation and Occupational Safety Under
Thomas, Bill. 2008. “Job Site Safety Programs Reduce Injuries, Save Money”.
Nation’s Building News.