Small Business Issues:
Workers' Comp
By Lawrence Bivens
Pickett
Council says she happy to pay workers’ comp benefits to employees
who suffer accidents at her company’s toolmaking plant in Lake
Waccamaw. But she’s seen some injuries that occurred under
suspicious circumstances and she fears those claims will cause her
workers’ comp premiums to skyrocket.
In one recent instance, a new hire, who had managed to hide an
existing arm injury under his jacket during the screening process,
filed a fraudulent claim during his first week of work to gain
coverage for the injury. Another time Council’s company wound up
footing the surgical expenses and lost time for an employee with a
pre-existing knee problem that was unrelated to her employment.
“They were just working the system,” says Council, who is vice
president of the century-old company.
Council Tool is clearly not alone in grappling with workers who abuse
a system designed to guarantee some income for workers who are
legitimately injured on the job. And she and many other employers are
becoming concerns that state officials who oversee the state’s
workers’ comp program are making the system easier to abuse.
For example, the North Carolina Industrial Commission recently ruled
in favor of a Gaston County man seeking benefits for injuries suffered
when scaling his employer’s fence in a clumsy attempt to leave work
early. The case is reminiscent of an equally questionable 1984 episode
when an employee was awarded benefits for a knee injury sustained
while clowning with co-workers during a rest break.
“I’m hoping that eventually the worker’s compensation system
will come around and find these types of things unreasonable,” says
H. Randolph “Dolph” Sumner, a Gastonia attorney who is
representing Parkdale Mills in its appeal of the fence-jumping case
(see that story, page 20). “Employers need to be proactive in
expressing outrage about decisions like these.”
What Should You Do?
Particularly disturbing about such cases is that they undermine public
support for a program that’s vital to those who are genuinely hurt
on the job. “It’s very frustrating,” continues Council, who also
is vice-chair of NCCBI’s Small Business Advisory Council. “Because
more often than not, the accidents that happen are legitimate.”
Council Tool, whose workforce fluctuates between 50 and 100, in the
past has called in consultants to help it identify safety hazards at
the plant. Eliminating as many safety hazards as possible is the best
way to keep workers’ comp rates down, the consultants said. But she
now believes the most effective workforce safety solutions are those
developed internally — with the participation of those who know the
company, its machinery and operations best.
“We had been having more recordables (documented incidents of
job-related injuries, even the most minor) than we wanted,” Council
recalls, “cases of foreign particulates in eyes and minor hand
cuts.” But over the past three years, her company has become more
pro-active, establishing a formal system that encourages employees to
take the initiative in minimizing hazards on the job.
Council Tool’s strategy deploys both a carrot and stick. Oral and
written warnings are issued when workers ignore safety rules. On the
other hand, those who succeed in eliminating recordables are rewarded
with cash bonuses of $30 or more. Supervisors who succeed in reducing
unsafe practices can earn as much as $200. Equally important was the
appointment of a compliance officer to take charge of the new program.
That individual — a production supervisor who underwent specialized
training in workplace safety — is also compensated based on results.
Like their larger counterparts, small firms such as Council Tool must
adhere to regulations set forth by the U.S. Occupational Safety and
Health Administration (OSHA). But for them, there is not usually an
in-house safety engineer or industrial hygienist trained in spotting
and resolving potential problems before they lead to accidents,
injuries or fatalities.
“The most pressing safety and health issue facing small businesses
is knowing what to do,” says Worth B. Joyner, head of the state
Department of Labor’s Bureau of Consultative Services, which works
with firms across the state on improving workplace safety. “But in
today’s fast-paced world, small employers are trying to run a
business and make ends meet. They wear many hats — personnel
director, purchasing director, manufacturing manager and quality
control manager. Employee safety director probably seems the easiest
to ignore.”
Joyner suggests that small employers establish a system, similar to
one set up at Council Tool, where safety and health are managed just
as production and quality are. “A good safety and health program
will save the employer money and increase profits,” he says.
Joyner’s bureau offers free consultations to companies, sending
occupational safety and health experts on-site to evaluate facilities
and procedures and recommend improvements. “Our goal is to help
employers manage their own safety and health program for
themselves,” Joyner continues. “It’s like the old saying —
give a starving man a fish and feed him once. But teach him to fish,
and feed him for a lifetime.”
In addition to its consultative program, the Labor Department’s
Occupational Safety and Health Division (OSHNC) offers “awareness”
workshops tailored around the specific needs of North Carolina
businesses. The workshops provide an overview of the OSHNC standards
common to general industry. But also included are specialized programs
for the construction industry. Ninety percent of construction-related
fatalities, for example, boil down to one of just four hazards: falls
from heights, electrocution, crushing injuries such as trench cave-ins
and being struck by material or equipment.
“Basically, the people who attend our workshops are looking to
identify those rules that are most relevant to their industries,”
explains Lauren Kash, an OSHNC trainer. That means knowing the red
flags that inspectors look for when making the rounds. “Participants
come away from our workshops realizing, perhaps for the first time,
that OSHNC is actually here to help them.”
The 10-hour program is offered in partnership with the North Carolina
Community College System and other host organizations. A nominal fee,
if any at all, is charged by the host site. Workshops are designed for
safety and health professionals, training managers, operations and
plant managers, safety committee members, supervisors, maintenance
personnel and others responsible for writing and implementing OSHNC
standards in the workplace.
At Lenoir Community College’s Small Business Center, attendance at
OSHNC’s workshops is frequently standing room only. “We had close
to a hundred people show up for our workshop on OSHA record-keeping
rules,” says Alice Tingle, the center’s director. “It was
very well-received.” Other OSHNC programs Tingle’s center sponsors
include “Preparing for an OSHA Inspection” and “Elements of an
Effective Health and Safety Program.”
Make Safety a Top Priority
OSHNC also offers workshops that address work-related hazards that may
be less obvious. With much of the economy moving toward service
industries, there is increasing attention placed on ergonomics, the
science of keeping individuals safe, comfortable and productive while
they perform basic tasks. For those engaged in the digital economy,
health risks include discomfort related to poor seating posture and
the affects of ongoing computer use on the eyes.
As many as eight in 10 Americans workers spend all of part of their
day in front of a computer screen, according to the American
Optometric Association (AOA). The group estimates that correcting
computer-related vision problems costs employees, employers and their
health plans $2 billion a year. Further complicating matters is the
tendency of employees to compromise their posture in straining to view
their computer screens, which can lead to shoulder, neck and back
pain.
“It typically boils down to two key things: height and location of
the monitor,” according to David Brodie, director of training and
education at the North Carolina Ergonomics Center in Raleigh. “If
the monitor is too far away, it puts a lot of strain on the eyes.”
The problem can be remedied by adjusting the font size of the screen
text, he suggests. In general, people should be able to read their
screens as easily as they can a book. He also recommends placing the
monitor perpendicular to light sources – windows, for example –
and otherwise minimizing glare on the screen caused by overhead
lights. “Most offices today were designed with lighting for people
who were working with paper,” Brodie says.
Whether they are line workers on the manufacturing floor, clerical
staffers in the back office or high-level managers in the executive
suite, it is vital that all employees be encouraged to make sure work
practices don’t invite illness or injury. It is equally true of
owners, according to Pickett Council, who says there is great value in
setting a good example. “That’s really critical,” she advises.
“If owners see unsafe practices and don’t correct them, that sends
a signal to every employee on the payroll.”
Take
Extra Safety Precautions for Hispanic Workers
The
face of the workforce is changing in North Carolina and so too is its
language. During the 1990s, the state’s Hispanic population surged
by 400 percent, according to the U.S. Census Bureau. That has prompted
new efforts to help Spanish-speaking workers gain a clear
understanding of their rights and responsibilities when it comes to
occupational health and safety.
“Language is certainly a barrier to good workplace safety,” says
Nolo Martinez, director of the Governor’s Office of Hispanic and
Latino Affairs.
Nationwide, Hispanic and Latino workers account for a disproportionate
number of workplace fatalities. Although they represent only 10.7
percent of the workforce, they suffer 13.8 percent of the work-related
deaths, according to the U.S. Department of Labor. While some reason
that the figure is due to the high concentration of such workers in
dangerous occupations like construction, many experts believe the
problem can be addressed by providing better Spanish-language
information, outreach and training.
“There are so many people from Central and South America working
here in so many different industries,” explains Regina Luginbuhl,
chief of the N.C. Department of Labor’s Agricultural Health and
Safety Bureau. “They work in hotels, fast food, agriculture, daycare
— just about everywhere.”
In response to emerging needs, Luginbuhl’s office is now printing
brochures on safety and health in Spanish as well as English. It
currently offers bilingual materials on 13 topics that range from
avoiding heat stroke to safe driving. “We can wait for them to learn
English, but that wait will be costly,” she says.
Translating materials into Spanish is but one challenge. Getting them
into the right hands is yet another. So Luginbuhl and her associates
are distributing their brochures in areas where Hispanics and Latinos
congregate, such as migrant worker camps. While the materials may not
offer answers to every conceivable question, workers at least know
that assistance is available. “At the very least, we have our
toll-free number on the brochure (1-800-NC-LABOR) so they can call us
if they need help,” she says, noting that Spanish-speaking operators
are available.
Employers cam pbtain the brochures free, along with 11 X 17 inch
posters with the same information in both Spanish and English, by
calling the toll-free number above. The posters also can be downloaded
free of charge at www.nclabor.com/pubs/htm#Posters.
While North Carolina is ahead of the curve when it comes to looking
after the safety of non-English-speaking workers — Luginbuhl’s
unit has been translating materials since 1992 — the U.S. government
has been slower in catching on. But recently, the U.S. Department of
Labor announced an ambitious program to address the occupational
health needs of this rapidly growing population. The initiative
includes establishing an Hispanic Worker Task Force, creation of a
national 1-800 number for Spanish speakers, compilation of a national
clearinghouse of Spanish-language training materials and building a
database of Spanish-speaking OSHA experts.
Another goal of the new efforts, which were unveiled by Labor
Secretary Elaine Chao in early April, is to encourage local law
enforcement and emergency response authorities to report work-related
injuries to OSHA. That may help address another challenge the
government faces: the reluctance of Hispanic and Latino workers to
report unsafe workplaces conditions out of fear of deportation. OSHA
materials, for example, routinely state that it keeps the identity of
its informants confidential. As well, U.S. occupational health and
safety laws provide “whistleblower” protections that forbid
employers from discharging workers who file OSHA complaints. -- Lawrence
Bivins
Follow
This Four-Point Plan to Maximize Worker Safety
When
it comes to maintaining a safe work environment, small businesses have
a number of advantages compared to larger firms — mainly lower
employee turnover and closer day-to-day contact with their workers and
worksites. Also helpful is OSHA’s Handbook for Small Business,
available by calling OSHA Publications at 202-693-1888. The 75-page
handbook may also be downloaded at www.osha.gov/SmallBusiness/OSHAPub.html.
OSHA recommends that small firms adopt a four-point program:
A visible commitment from management. If owners and managers
appear unconcerned about preventing employee injury and illness, it is
likely others in the operation will share that indifference. Employers
should demonstrate at all times their personal concern for the health
and safety of their workers, and be mindful that their own actions set
an example for others.
“I catch a lot of ribbing for wearing my steel-toed boots when I’m
on the floor,” says Pickett Council, an executive with Council Tool
Company and vice chairman of NCCBI’s Small Business Advisory
Committee, “but everyone in the plant has to wear them.” Goggles
and earplugs are also standard issue, she says.
Employee involvement is critical, and management can showcase their
seriousness by involving workers in planning and executing workplace
safety measures. Consider forming a joint employee-management safety
committee that can start a program and sustain interest in it. For
very small workforces, rotate committee members so that eventually all
employees can play an active role.
Worksite analysis. Small firms have access to a variety of
government resources that can help them examine workplace processes
and detect hidden hazards. “We do far more than just come out and
present information,” explains Lauren Kash, a trainer with the N.C.
Department of Labor’s Occupation Health and Safety Division, which
provides free customized training for small businesses. “We really
dig through the books and get to the rules that are most relevant to
the people attending.” Private consultants also provide such
services.
OSHA recommends looking over accident records from the past several
years to identify patterns. Learn how to effectively investigate
incidences of work-related accidents and illnesses. Care should be
taken to ensure that new procedures don’t end up creating new
problems.
u Hazard prevention and control. Once potential problems are
identified, employers should put in place a system for eliminating and
minimizing any hazards. Government and private consultants can also
assist with that. Establish procedures for each job and make sure
employees understand them. Ensure also that employees know how and
when to use personal protective equipment. Such gear should be
inspected regularly, with all maintenance logged. Perform emergency
drills often enough so that everyone is prepared when a fire or
natural disaster occurs. “Hurricane preparedness is something we
take seriously,” says Council, whose Columbus County firm sits near
the coast.
OSHA recommends having an emergency medical procedure for handling
injuries, transporting ill or injured workers, and notifying medical
facilities. Post emergency telephone numbers in prominent locations.
Consider retaining a local physician or occupational health nurse on a
part-time or as-needed basis to advise the company on medical and
first-aid planning.
Training for employees, supervisors and managers. Effectively
preventing accidents in the workplace means achieving proper job
performance from everyone. “We encourage both managers and employees
to attend our programs,” says Alice Tingle, director of the Small
Business Center at Lenoir Community College, which regularly sponsors
OHSA workshops. “I think it’s vital that both be involved.”
Employees must be knowledgeable about the materials and equipment they
work with, including any hazards. They should be encouraged to speak
up when they feel they’ve been inadequately trained on a certain
procedure to safely undertake it. Have a system for evaluating
employees’ knowledge of procedures and equipment. Pay close
attention to new hires and workers moving to new jobs within the
company. OSHA data indicate they are the most likely to be hurt.
— Lawrence Bivins
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