The Municipal Excess Liability Joint Insurance Fund Controlling Workers Compensation and Liability Costs Draft Dated: October 4, 2010 (Elected Officials Municipal version)
Local Government Claims $ millions Workers Comp $200 Liability $150 Total $350
NJ Employee LT Accident Rates Lost Time Accidents by industry per 100 employees Industry LT Case Finance & Insurance 0.3 Wholesale, Retail Trade 2.3 MEL Members 2.6 Manufacturing 2.6 Mining 2.8 Construction 3.1 Transportation 4.0 State Government 4.3 Local Government 4.3 All NJ Employees 2.3
MEL Employee LT Accident Rates Lost Time Accidents per 100 employees 7.00 6.00 5.73 5.01 4.62 5.00 4.00 3.00 2.00 1.00-3.88 3.91 3.90 3.16 3.23 3.29 3.30 2.98 2.90 2.96 2.78 2.60 2.71 3.08 2.50 2.60 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
FATALITIES: 2007-2009 Fire Fighters 4 Police Officers 2 Crossing Guard 1 DPW 1 Sanitation 1 Utility 1
Workers Compensation Claims Cost per Full-Time Employee Medical Indemnity SLI Excess Total 2009 $993 $968 $484 $75 $2,520 2008 896 981 490 94 2,439 2007 938 947 474 77 2,436 2006 765 764 382 94 2,005 2005 702 731 366 68 1,867
Most Plaintiff Oriented Court Systems 1. New Jersey 2. New York 3. Florida 4. Illinois 5. Pennsylvania 6. Missouri 7. Montana 8. Michigan 9. Connecticut 10.California
Employment Practices Liability Ten-Year Closed Claim Study Covered Claims per Employee $400 $350 $354 $300 $250 $247 $200 $150 $126 $161 $132 $128 $100 $74 $113 $128 $112 $50 $0 $26 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
The Legal Feeding Frenzy Even cases with marginal relevance are now being presented by plaintiffs counsel as having substantial settlement value. John J. Farmer Former NJ Attorney General Dean, Rutgers Law School
Recent Cases Nardello v. Voorhees Messina v. Fairlawn Lodato v. Evesham
Changing the Culture
PSE&G Employee LT Accident Rates Lost Time Accidents by industry per 100 employees 1.20 1.00 0.80 0.60 0.40 0.99 0.93 0.85 0.81 0.70 0.62 0.45 0.33 0.20-2000 2001 2002 2003 2004 2005 2006 2007
Changing the Culture Top Down Grass Roots Bottom Up
Video: Changing the Way We Think About Safety
BEST PRACTICES Safety Committee New members Chair rotation Training for the Chair
BEST PRACTICES Monthly Report to the Governing Body Safety Statistics Safety Committee minutes Claim Status Accident Investigations
BEST PRACTICES Safety Training Training record audit On-line training management system
BEST PRACTICES Supervisory Leadership Advanced safety leadership training Daily safety discussion by supervisors and crew leaders
BEST PRACTICES Police Agencies Police agency accreditation Management succession planning
BEST PRACTICES Crossing Guards Medical examinations & training Traffic calming BOE involvement Public awareness campaign
BEST PRACTICES Fire Fighters Candidate Examinations Respirator Screening and Fit Testing Heart Attack Screening
BEST PRACTICES Claims Management Telephone notification to MCO Senior management involvement in accident investigations Frequent contact with the injured employee Transitional duty
BEST PRACTICES Litigation Risk Committee A system of regular inspections Training for employees to identify hazards Procedures for employees and citizens to report hazards Procedures to log all reports and record corrective action
BEST PRACTICES Citizen s Advisory Committee Pedestrian Safety School Crossing Guards Traffic Calming Traffic Hazards Playground Safety Bicycle Safety Organized Sports Safety for Seniors
BEST PRACTICES Employment Practices Update Personnel Policies & Procedures and Employee Handbook Distribute Letter to all Employees concerning Whistle Blower & Complaint Procedure Train managerial/supervisory personnel Offer anti-harassment training to all employees
BEST PRACTICES Promotions Retain outside agency to interview candidates If not civil service, also retain outside agency to conduct written test
LEGISLATION No man's life, liberty or property are safe while our legislature is in session. NY Judge Gideon J. Tucker: 1866
Legislation Sick Leave Injury (SLI) In early 2010, the legislature eliminated SLI for state employees SLI should be repealed for all levels of NJ government
Legislation Legal Fee Cap Awards of $50K or less, the maximum fee should be $50K Awards over $50K, the fee should not exceed the award
Legislation Sidewalks A municipality should not be liable for sidewalks if the community adopts an ordinance requiring the homeowner to maintain the sidewalk
Legislation Weather Immunity The immunity should be extended to all governmental property. The word solely should be changed to primarily.
Legislation Boardwalks A public entity should not be liable for a boardwalk defect if it has an ongoing maintenance program.
Changing the Culture Top Down Grass Roots Bottom Up
Best Practices Seek the advise of your Municipal Attorney before doing something Insist that the Attorney tell you what you should hear, not what you want to hear WATCH WHAT YOU SAY, ESPECIALLY IN EXECUTIVE SESSION AND IN E-MAILS
QUESTIONS