WORKERS COMPENSATION DIVISION March 2018 Christine Wojdyla Compliance Officer Employer Training Workers compensation basics What to do before an injury occurs What to do when an injury occurs or is reported Benefits provided What is/is not covered by workers compensation Employer do s and don ts 1
Workers Compensation Basics A no fault system Provides benefits for work related injuries or illnesses Covers conditions caused or aggravated by employment activities Benefits paid by the insurer (insurance company or selfinsured employer) Waiting period 3 calendar days What To Do Before An Injury Occurs Check all equipment; maintain a safe workplace Develop procedures for reporting injuries Know the filing requirements in Minnesota 2
What To Do Before An Injury Occurs Know the name, phone number, and address of your insurer Keep good records; provide written job descriptions Handle disciplinary problems as they occur Develop return to work strategies What To Do Before An Injury Occurs Display the workers compensation poster. 3
What To Do Before An Injury Occurs Know where to find the First Report of Injury form and how to fill it out 4
What To Do When An Injury Occurs or Is Reported Provide prompt medical care, if needed Do not wait for medical reports before filing the claim Stay in contact with the injured worker What To Do When An Injury Occurs or Is Reported Fill out the First Report of Injury (FROI); give a copy to the employee File the FROI with the insurer within 10 days from the first day of lost time or date you were notified of the injury/lost time, whichever is latest 5
First Report of Injury January DOI FDLT Date of Notice What To Do When An Injury Occurs or Is Reported January DOI FDLT Date of Notice 10th Day 6
What To Do When An Injury Occurs or Is Reported Give the employee a copy of the information sheet 7
What To Do When An Injury Occurs or Is Reported Investigate the facts and take action to prevent future incidents Monitor the insurer s actions; communicate with the adjuster What To Do When An Injury Occurs or Is Reported Implement return to work strategies Call the Department of Labor and Industry with questions 8
Wage Information Comp rates are based on two thirds of the employee s average gross weekly wage at the time of injury and are subject to maximum and minimum amounts. Include overtime earnings if they are regular or frequent throughout the year. Request a 26 week wage history for irregularly scheduled and/or part time employees. Wage Information Include wages from all employers if the employee has more than one job on the date of injury. 9
Benefits Provided by Workers Compensation in Benefits Provided by Workers Compensation in Minnesota Minnesota Wage Loss Benefits Temporary Total Disability (TTD) Temporary Partial Disability (TPD) Permanent Total Disability (PTD) Time loss usually should be authorized by doctor Benefits Provided by Workers Compensation in Minnesota Permanent Partial Disability % of whole body ratings payable after TTD ends 10
Benefits Provided by Workers Compensation in Minnesota Dependency Benefits payable to spouse, children, dependent parents and other partial dependents if no dependents, $60,000 paid to the estate Benefits Provided by Workers Compensation in Minnesota Medical Costs 100% coverage includes prescriptions and reasonable mileage Rehabilitation Costs (if necessary) return to work assistance 11
Accident Cost Analysis Direct Accident Costs Medical Treatment Costs and Miscellaneous Expenses Indemnity Costs Accident Cost Analysis Indirect Accident Costs Time lost by other employees (hourly rate x number of employees affected) Time lost by supervisor(s) (investigations, resetting up, transportation, etc.) Cost of spoiled product Cost of lost production time Cost of overtime to make up scheduled production Cost of retraining new employee (include personal costs, advertising, etc.) 12
Accident Cost Analysis Indirect Accident Costs (continued) Cost of guarding, repairing, or replacing equipment (include maintenance labor costs if done in house) Cost of continued benefits to injured employee. Cost of retraining returning employee Cost of reduced production of returning employee Management costs (time spent investigating accident, accompanying insurer or OSHA inspectors, etc.) Cost of fines (OSHA, etc.) Miscellaneous costs May an employer pay small medical bills? NO unless the employer has been approved by the Minnesota Department of Commerce to selfinsure for workers compensation benefits. 13
Other Options to Control Costs Instead of paying small medical bills directly in contravention of the insurance policy, the employer may: purchase a deductible policy become self-insured through approval by the Minnesota Department of Commerce control losses and costs through an aggressive safety and disability management program NOTE: Small businesses can join together as a group to self-insure their workers' compensation liability. Employer Do s purchase Workers Compensation insurance make sure premiums are paid on time display the Minnesota Workers Compensation poster 14
Employer Do s prepare ahead of time just in case an injury is reported know the name, phone number, and address of your insurer communicate injury reporting procedures to all employees Employer Do s treat employees as you would like to be treated plan ahead for return to work strategies stay in touch with the employee after the injury occurs 15
Employer Do s file First Reports of Injury properly call the Department of Labor and Industry if you have any questions/problems Employer Don ts refuse to file a claim even if you doubt the validity ask the employee to fill out the First Report of Injury wait for a medical report before filing the claim with the insurer 16
Employer Don ts pay medical bills on your own ignore requests for information from the insurer or state forget to put safety first ignore employee disciplinary problems Please contact the Department of Labor and Industry with any questions or concerns By Phone: 1 (800) 342 5354 On the Web: http://www.dli.mn.gov For official forms, helpful information, and links to the workers compensation statutes and rules 17