Improved Worker Safety Can Lead to Reduced Worker Compensation Costs DOUG NEFZGER IASBO PRESIDENT MELISSA FETTKETHER IASBO PRESIDENT- ELECT

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1 Improved Worker Safety Can Lead to Reduced Worker Compensation Costs DOUG NEFZGER IASBO PRESIDENT MELISSA FETTKETHER IASBO PRESIDENT- ELECT

2 Workman s Compensation Insurance Workers Compensation Insurance was the first form of social insurance to develop widely in the United States. It is designed to provide cash benefits and medical care when employees suffer work-related injuries or illnesses and survivor benefits to the dependents of workers whose deaths result from a work-related incident In exchange for receiving benefits, workers who receive workers compensation are generally not allowed to bring a tort suit against their employers for damages of any kind.

3 Workman s Compensation Insurance The Federal government was the first to establish a workers compensation program, covering its civilian employees with an act that was passed in 1908 to provide benefits for workers engaged in hazardous work. The remaining Federal workforce was covered in 1916.

4 Workman s Compensation Insurance The Workers Compensation Act is a part of Iowa Code (Chapters 85, 85A and 85B) designed to provide certain benefits to employees who receive injury, occupational disease or occupational hearing loss arising out of and during the course of their employment. Benefits are payable regardless of fault and are the exclusive remedy of the employee against the employer. Every employer subject to this chapter chapters 85, 85A, 85B and 86 of the Code of Iowa, unless relieved from the requirements imposed in this chapter and Chapters 85, 85A, 85B and 86 shall insure the employers liability.. (Ch. 87.1)

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6 Workman s Compensation Insurance An employer subject to this chapter and chapters 85, 85A, 85B and 86 of the Code of Iowa shall not engage in business without first obtaining insurance covering compensation benefits or obtaining relief from insurance as provided in this chapter. A person who willfully and knowingly violates this section is guilty of a class D felony. (Ch A) Any contract of employment, relief benefit, or insurance, or other device whereby the employee is required to pay any premium or premiums for insurance against the compensation provided for in this chapter, shall be null and void; and any employer withholding from the wages of any employee any amount for the purpose of paying any such premium shall be guilty of a simple misdemeanor. (Ch )

7 Workman s Compensation Insurance The latest available data reports that workers compensation benefits rose by 1.3 percent to $61.9 billion in 2012, while employer costs rose by 6.9 percent to $83.2 billion. Over the last 30 years, medical benefits have accounted for an increasing share of total benefits, from 33% in 1984 to nearly 50% in Nationwide, medical benefits were $30.8 billion (49.8% of the total) and cash benefits were $31.0 billion in Nationwide, the average employer cost is $1.32 for each $100 of covered wages Source: National Academy of Social Insurance

8 How is you premium determined? It s important to understand and monitor your experience modification because it has a direct correlation to how much you pay in Workers Compensation Premiums. The lower your Experience Mod (also known as mod factor ), the less you pay in premiums. But to be able to use your Mod Factor to effectively control costs, you must first understand how it works. In a nutshell, your Experience Modification compares your workers compensation claims experience to other employers of similar size operating in the same type of business over a set period of time (usually three years).

9 How is you premium determined? Premiums are determined based on the wages paid to employees in specific work classifications Most Iowa schools will have the following classifications 7380 Drivers NOC (school bus drivers) 8868 School: Professional employees & clerical (teachers, administrators, para-educators, secretaries, etc.) 9101 School: All other employees (food service, custodial, building maintenance, building grounds, bus garage mechanics, etc.) Total wages of the three classifications above times the rate for each category = Total Manual Premium Drivers NOC wages x class rate $ 42,360 School: Professional employee wages x class rate $142,262 School: All other employees wages x class rate $174,080 Cedar Falls Total Manual Premium $358,702

10 How is you premium determined? Cedar Falls Total Manual Premium $ 358,702 Employers Liability Increased Limit Factors $ 2,870 Increased limits over required minimums Experience Modification (0.68) $(115,703) Adj. of annual premium based on 3 year avg. Schedule Rating Factor $( 36,880) Individual state rating premium/discount Premium Discount $( 18,391) Most often based on volume of policy Expense Constant $ 260 Amount paid to State Terrorism $ 6,429 Federal mandated coverage Catastrophe $ 3,214 Net Cedar Falls CSD Workers Comp. Premium $ 200,501

11 How is you premium determined? Cedar Falls Total Manual Premium $ 358,702 Employers Liability Increased Limit Factors $ 2,870 Increased limits over required minimums Experience Modification (1.00) $ 0 Adj. of annual premium based on 3 year avg. Schedule Rating Factor $( 36,880) Individual state rating premium/discount Premium Discount $( 18,391) Most often based on volume of policy Expense Constant $ 260 Amount paid to State Terrorism $ 6,429 Federal mandated coverage Catastrophe $ 3,214 Net Cedar Falls CSD Workers Comp. Premium $ 316,204 Difference in premium = $115,703

12 Poll Question What is your District s Experience Modification Factor I do not know my District s Experience Modification Factor Less than 1.00 Between 1.00 and 1.10 Greater than 1.10 Photo courtesy of IASB Safety Group Insurance Program

13 Do you know your Experience Modification Factor? Fy16 Iowa Schools Workman s Compensation Mod. Factor (294 Schools) avg. Data courtesy IASB Safety Group Insurance Program

14 History of Cedar Falls CSD Experience Modification Fiscal Year Manual Premium Mod Factor Modified Premium Additional Cost or (Savings) Fy 2007 $ 177,368 x 1.46 = $ 258,957 $ 81,589 Fy 2008 $ 239,961 x 1.33 = $ 319,148 $ 79,187 Fy 2009 $ 239,599 x 1.12 = $ 268,351 $ 28,752 Fy 2010 $ 227,489 x 1.07 = $ 243,413 $ 15,924 Fy 2011 $ 262,460 x 0.85 = $ 223,091 $ (39,369) Fy 2012 $ 289,215 x 0.79 = $ 228,480 $ (60,735) Fy 2013 $ 318,492 x 0.71 = $ 226,129 $ (92,363) Fy 2014 $ 364,849 x 0.67 = $ 244,449 $ (120,400) Fy 2015 $ 391,454 x 0.67 = $ 262,274 $ (129,180) Fy 2016 $ 361,542 x 0.68 = $ 245,849 $ (115,693) Modified premium comparison only. Rating Factor and premium discounts not included. $115,693 savings equates to $ Management Fund tax rate savings!

15 History of Valley CSD Experience Modification Fiscal Year Manual Premium Mod Factor Modified Premium Additional Cost or (Savings) Fy 2007 $ 21,765 x 0.92 = $ 20,024 $ (1,741) Fy 2008 $ 26,608 x 0.91 = $ 24,213 $ (2,395) Fy 2009 $ 27,349 x 0.88 = $ 24,067 $ (3,282) Fy 2010 $ 23,873 x 0.93 = $ 22,202 $ (1,671) Fy 2011 $ 27,546 x 0.91 = $ 25,067 $ (2,479) Fy 2012 $ 31,449 x 0.92 = $ 28,933 $ (2,516) Fy 2013 $ 34,889 x 1.11 = $ 38,727 $ 3,838 Fy 2014 $ 37,340 x 1.10 = $ 41,074 $ 3,734 Fy 2015 $ 37,033 x 1.01 = $ 37,403 $ 370 Fy 2016 $ 32,448 x 0.98 = $ 31,799 $ (649)

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18 Workplace Safety The least expensive workers compensation claim is the claim that never happened. Impacts to reduce claims include: Development of a safety committee Workplace/job assessment Implementation of appropriate safety practices Use of appropriate safety equipment Development of job duty physical requirements

19 Safety Begins With You! What is the Board and Administrations commitment to a safe workplace? Have you established a culture of safety and safe work expectations? Have you implemented and enforced best practices and training for workplace safety? Begin by considering the formation of a safety committee Committee membership Tasks of the committee

20 Job Descriptions Review all job descriptions within the District on a regular basis Job duties and/or functions may change Include physical requirements and working conditions within the job description Make a pre-employment physical tied to the specific job description a part of your hiring practice

21 CEDAR FALLS COMMUNITY SCHOOLS JOB DESCRIPTION JOB TITLE: CLASSIFICATION: REPORTS TO: CLEANING CUSTODIAN I Asst. Supervisor of Buildings & Grounds FLSA STATUS: Exempt X Non-Exempt STATUS X Full Time Part Time X Hourly Salary DATE REVISED: October 2007 BASIC FUNCTION: The job of Cleaning Custodian is for the purpose of providing housekeeping and maintenance to indoor and outdoor facilities at a standard that will insure a safe, attractive, efficient and clean environment for the students of the Cedar Falls Community Schools. Incumbent may be required to assist other crafts as requested. ESSENTIAL FUNCTIONS: Empties trash receptacles in assigned area daily. Cleans and sanitizes all receptacles as necessary. Removes trash from building and place in dumpsters outside of building. Dust mops tiled floors daily. Sweeps up debris. Spot mops resilient floors in classrooms and hallways as needed. Wet mops/auto-scrubs entire floor when necessary. Operates auto-scrubber with floor restorer weekly in halls and corridors. Burnishes floors when necessary. Vacuums carpets and entry mats throughout assigned area regularly. Cleans whiteboards/chalkboards daily as well as rails. Cleans and polishes all sinks in assigned area daily using cleansers and sanitizers. Cleans and sanitizes fixtures in all restrooms in assigned area daily including toilets, stall partitions, sinks, urinals, faucets, flush valves, dispensers and vents. Sanitizes restrooms floors daily. Replenishes paper towels and toilet tissue as needed. Clean and sanitize water fountains daily. Empties pencil sharpeners daily. Dusts window ledges and surfaces weekly. Washes desktops and removes graffiti as needed. Spot cleans windows and door glass daily. Changes light bulbs as necessary and wipes out lens covers. Performs all tasks related to summer cleaning which includes but not limited to; stripping floor wax, shampooing carpets, cleaning building furniture, washing walls,, windows and blinds, recoating floors with wax and polishing of floors. Sets up or assists with setup and tear down for extra building functions Secures building doors and windows in assigned area. Substitute in the absence of Lead Custodian or Head Custodian if required. Other duties as assigned. QUALIFICATIONS: In order to perform this job successfully, an individual must be able to perform each essential duty in a satisfactory manner. The requirements listed below are representative of the knowledge, skill, and/or ability required. Experience Required: High School diploma or general education degree (GED) and one year of job related experience in general housekeeping maintenance or related field. Skills to operate hand and powered equipment used in housekeeping maintenance along with other custodial functions and perform basic math to calculate measurements, quantities, etc

22 Knowledge of methods and use of materials, tools and equipment used in general housekeeping maintenance functions while applying standards for safe use of equipment. Ability to stand/walk or sit/ride for prolonged periods and frequently climb, stoop, kneel, crouch, crawl, push/pull and reach with arms. The employee must be able to talk/hear effectively, work independently with minimal supervision, perform a variety of tasks, understand and carry out oral and written instructions. Significant physical abilities include lifting/carrying/pushing/pulling, reaching/handling/fingering, near visual acuity/depth perception. Licenses, Certifications, Bonding, and or Testing Required: Valid Iowa Driver s License. Completion of orientation period. LANGUAGE SKILLS: Ability to read and interpret documents such as safety rules, operating and maintenance instructions, and procedure manuals. REASONING ABILITY: Ability to apply common sense understanding to carry out instructions furnished in written, oral or diagram form. Must be able to demonstrate good judgment in decision making and a desire to seek proper counsel when in doubt. PHYSICAL REQUIREMENTS: 1. In an eight-hour day employee may: a. Stand/Walk { } None { } 1-4 hrs { } 4-6 hrs {x} 6-8 hrs b. Sit { } None { } 1-3 hrs { } 3-5 hrs {x} 5-8 hrs c. Drive { } None {x } 1-3 hrs { } 3-5 hrs { } 5-8 hrs 2. Employee may use hands for repetitive: {x} Single Grasping {x} Pushing & Pulling {x} Fine Manipulation 3. Employee may use feet for repetitive movement as in operating foot controls: {x} Yes { } No 4. Employee may need to: a. Bend {x} Frequently { } Occasionally { } Not at all b. Squat {x} Frequently { } Occasionally { } Not at all c. Climb Stairs {x} Frequently { } Occasionally { } Not at all d. Lift {x} Frequently { } Occasionally { } Not at all 5. Lifting: { } Sedentary Work: Lift or move 10 pounds occasionally with frequent sitting and occasional standing/walking. { } Light Work: Lift or move 20 pounds occasionally with occasional sitting and frequent standing/walking. { } Medium Work: Lift or move 50 pounds occasionally, 25 pounds frequently with occasional sitting and frequent standing/walking. { } Medium Heavy Work: Lift or move 75 pounds occasionally, 35 pounds frequently with occasional sitting and frequent standing/walking. {x} Heavy Work: Lift or move 100 pounds occasionally, 50 pounds frequently with occasional sitting and frequent standing/walking. 6. Environmental Exposure: {x} May be exposed to sun, rain, wind, snow {x} May be exposed to extreme heat or cold {x} May be exposed to confined spaces {x} May be exposed to heights of more than 6 feet {x} May be exposed to dust & dirt {x} May be exposed to chemically treated fluids The statements contained herein describe the scope of the responsibility and essential functions of this position, but should not be considered to be an all-inclusive listing of work requirements. Individuals may perform other duties as assigned. Nothing in this job description restricts management s right to assign or reassign duties and responsibilities to this job at any time. Signature of Supervisor: Date: Signature of Employee: Date:

23 Job Descriptions Who should review/modify job descriptions? Direct supervisors Administrator or School Business Official Input from employees in the particular job Determine physical requirements of the position Use same format for all job descriptions within the District Start out small Big task to review all job descriptions Begin with one employee group, one description at a time

24 Designated Physician Consider switching to a District designated physician for all workmen compensation medical issues as well as for your preemployment functional testing Functional testing will test applicants to determine if they meet the physical needs of the particular job for which they have applied Not all positions within your District may require a preemployment functional test. Make sure your offer of employment is subject to passing any pre-employment functional tests Cost of pre-employment functional tests is usually the responsibility of the District.

25 Designated Physician A designated physician is a great benefit when working with employees who are injured on the job. Employee is cared for by a physician who understands the needs and operational requirements of the District District has all employees see the same physician for greater continuity and consistency of care Insurance carrier may offer a discount for establishing a designated physician program

26 Safety/Workers Compensation If an employee is injured on the job Make sure they notify the appropriate person Building secretary, administrator or supervisor no exceptions If medical assistance is needed Call ambulance if necessary If not, send employee to the District s designated physician If after school hours, designate the nearest hospital emergency room or urgent care clinic Make sure all injured employees fill out the First Report of Injury within 24 hrs. of event

27 Worker Safety Hold training sessions and continually discuss safety in the workplace i.e.: safety session included in annual required training Worker right-to-know Blood borne pathogens notifications/reminders Train/encourage employees to report safety concerns Liquids on floors Ice/Snow on sidewalks Loose steps/railings/etc.

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31 Photos courtesy of IASB Safety Group Insurance Program

32 Check List Here are a few things you can do to be more proactive when it comes to lowering your Experience Mod: Contact your agent to verify your Experience Mod is accurate. You might be paying more (or less) than you should due to incorrect or incomplete data. Remember that the Experience Mod is influenced more by small, frequent losses than by large, infrequent ones. So the fewer losses you have, the better. Create a sound safety program and think of ways you can be proactive about injury prevention. Create or improve an effective return to work program to help lower your Experience Modification Factor. Designated Physician Program All injuries requiring medical attention to same doctor or clinic

33 Check List Report injuries promptly. Studies reveal that prompt injury reporting reduces the cost of claims. Implement a first report of injury report Recommend reporting with 24 hours of injury Be firm on the timeline Implement an active claims management program to manage outstanding reserves and focus on efficiently resolving open claims. Work with your Workers Compensation Insurance carrier Take advantage of programs and assistance your insurance carrier can provide

34 Insurance Carrier Assistance Ask your insurance carrier if they can help you with Ergonomics (office, custodian, food service, building and grounds, maintenance) Slip, trip and fall assessments School-wide hazard control assessment Accident investigation assistance Safety committee assistance Traffic flow analysis Security assessments Crisis management assistance Severe weather emergency sheltering Indoor air quality measurements Mold investigations Fleet services In-service safety training

35 Photos courtesy of IASB Safety Group Insurance Program

36 Insurance Carrier Assistance Ask your insurance carrier if they can help you with con t: Online school-focused safety resources Equipment Operation & Efficiency Guides Tech Sheets Safety talks Online training for employees Safe Schools online training Training videos Written safety program templates Safety signs and posters Forms

37 Check List Train Principals, supervisors and/or managers how to manage injured employees. These employees play a key role in managing the injury and recovery process. When there s a good relationship between the injured employee and the supervisor, chances are you ll get better results. Practice due diligence during the hiring process. Hiring an employee who is not fit for the essential functions of the job will increase the risk of an injury. Review your current job descriptions Description of required tasks including: Percentage of time walking, pushing, standing, etc. Lifting of items including max weight of item and how often Safety equipment required Include requirement that new employees must passing a preemployment physical screening examination before beginning work

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39 Team Effort As you can see, worker safety is a team effort. The benefits of a pro-active, long term committed approach will build Employee trust Parent and community trust Financial savings Doug Nefzger Cedar Falls CSD Melissa Fettkether Valley CSD

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