More than half of all injured workers have a pre-existing condition, according to one expert. When you have an employee with a permanent impairment who suffers a second injury, you are responsible for compensating only the most recent injury. Many employers fail to realize this, leaving thousands of dollars on the table. More than 20...
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Physician Choice: Whose Right Is it?
When an employee suffers a work-related injury, workers’ compensation law obligates the employer to pay for medical treatment. Who gets to choose the treating physician—and why does it matter? In some states, the employer gets to choose the physician and all medical providers. This is called a full control program. In this type of system,...
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How Insurers Calculate Your Comp Rates
Although workers’ compensation may seem complicated, only two factors affect your workers’ compensation costs: your employees’ job classifications and your experience modification factor. Rating bureaus publish rates for hundreds of different job classifications, shown as rate per $100 of payroll. These rates are based on the relative hazards of each occupation. For example, it costs...
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Employee or Independent Contractor…and Why You Need to Know
Earlier this year, a court ruled that Federal Express drivers should have been classified as employees, when the company had classified them as independent contractors. And the U.S. Department of Labor announced that a five-year investigation in Utah and Arizona yielded $700,000 in back wages, damages, penalties and other guarantees for more than 1,000 construction...
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The Prohibited Acts Doctrine
Under the workers’ compensation bargain, the employer agrees to compensate an employee for any work-related injury or illness…unless the employee was engaged in a “prohibited act” at the time of injury. A prohibited act is an act that the employer expressly prohibits—such as consuming alcohol or using other intoxicants while on the job or on...
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Four Ways Workers Compensation Insurance Differs from Other Insurance
Workers’ compensation insurance differs from other types of insurance in several important ways. No annual or per-claim limits. Most insurance policies have annual and (sometimes) per-claim limits. After the policy pays out its maximum amounts, the insured must pay the difference out of pocket. With workers’ compensation, you might pay a per-claim deductible, but after...
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Retrospective Rating Plans
Retro rating plans have been around for years. How do they work, and do they make sense for your company’s workers’ comp program? With retrospective rating plans (retros), the final workers’ comp premium paid for the policy year is calculated retroactively, based on the actual losses incurred during the year. The retro is actually an...
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When Are Independent Contractors Considered Employees?
Hiring someone on an independent contractor basis has many advantages for employers. But treating workers like independent contractors when they should be classified as employees instead can cause costly problems. Independent contractors have many advantages for employers. Employers can hire them on a per-project basis and let them go when the project is completed. They...
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Covering Forgotten Workers with Workers’ Comp
You might think your workers’ compensation covers all work-related injuries and illnesses. This could prove a costly mistake. In most cases, workers’ compensation will cover work-related injuries and illnesses. But in certain special circumstances—which might apply to your company—the basic workers’ compensation policy will not provide coverage. This could leave your company on the hook...
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Ex-Mods: The Key to Reducing Workers’ Comp Costs
Although workers’ compensation may seem complicated, only two factors affect your workers’ compensation costs: your employees’ job classifications and your experience modification factor (ex mod). Rating bureaus publish rates for hundreds of different job classifications, shown as rate per $100 of payroll. These rates are based on the relative hazards of each occupation. For example,...
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