Return-to-Work Controlling the hidden costs of workplace injuries Disclaimer: These safety materials, resources and PowerPoint ® presentations are not intended to replace your company's health and safety policies or to substitute for specific state and federal standards. We do not guarantee the absolute accuracy of the material contained within these resources. Please refer to applicable state and federal standards for regulatory compliance. 1

Two Ways to Increase Profits 1. Increase sales 2. Reduce costs Return-to-work can help reduce costs associated with workplace injuries 2

What is Return-to-Work?  Written policy  Team effort  Part of the benefits package 3

What’s in it for Employers?  Maintain productivity  Avoid paying overtime, finding temporary help or hiring someone new  Control claim costs 4

Base premium  Payroll x rate  Does not include experience modifier (E-mod) Key Terms 5

Experience modifier (E-mod)  Adjustment in premium to reflect loss experience  Actual Losses (Anytime Drillers) / Expected Losses (all drillers) = E-Mod Key Terms 6

Accidents and the Bottom Line PayrollRateBase premium E-modFinal premium Company A$1,000,000$11.19$111, (debit)$134,280 Company B$1,000,000$11.19$111, (credit)$89,520 7

Accidents and the Bottom Line CompanyBase premium E-modFinal premium Projected 5-year cost X$100,0001.0$100,000$500,000 Y$100,0000.8$80,000$400,000 Z$100,0002.0$200,000$1,000,000 8

 Therapy  Experience and continued value  Positive reinforcement  Financial health What’s in it for Injured Workers? 9

Key Terms Average weekly wage (AWW)  Weekly wages earned during the 13 weeks immediately before work-related injury or illness  Used to calculate workers’ compensation benefits 10

Key Terms Temporary income benefits (TIBs)TIBs  Replace 70%* of injured workers’ lost wages  State law sets minimum and maximum amounts *If employee earned less than $8.50 per hour before injury, TIBs replace 75% of lost wages for first 26 weeks 11

Key Terms Modified duty  Alternative productive work injured employees can do while they recover  Must comply with doctor’s restrictions 12

Financial Benefits for Injured Workers Scenario 1  Injured worker does not return to work  AWW = $1,000  Total financial benefit (TIBs) = $700 ($1,000 x 70%) 13

Financial Benefits for Injured Workers Scenario 2  Injured worker returns to modified duty  Earns half his or her AWW ($500)  TIBS = $350 ($500 x 70%)  Total financial benefit = $850 ($500 + $350) 14

Financial Benefits for Injured Workers In scenario 2:  Injured worker earned $150 more than he or she would have without returning to work  Employer got $500 worth of work from injured worker  Insurance carrier paid $350 in TIBs 15

Average Weekly Wage (AWW) Injured worker modified duty earnings TIBsInjured worker total weekly comp/pay Weekly employer benefit in terms of work from employee 6-week employer (cost)/savings Weekly carrier loss 6-week carrier loss A $360$0$252 $0($1,512)$252$1,512 B $360$180$126$306$180$1,080$126$756 C $1,000$0$700 $0($4,200)$700$4,200 D $1,000$500$350$850$500$3,000$350$2,100 E $1,753$0$750 Max $750$0($4,500)$750$4,500 F $1,753$877$613$1,490$877$5,262$613$3,678 16

 Employer retains a valued employee  Injured worker earns more money, retains job skills and gets physical therapy  Insurance carrier pays less in benefits (lower losses) Everybody Wins With Return-to-Work 17

Steps in Return-to-Work Process Preinjury:  Step 1. Put it in writing  Step 2. Assess job tasks  Step 3. Identify modified duties 18

Steps in Return-to-Work Process Post-injury:  Step 4. Communicate  Step 5. Make bona fide offer of employment 19

Step 1: Put it in Writing  Write a policy statement  Outline the steps  Get it in employees’ hands 20

Step 2: Assess Job Tasks  Document activities involved in each task  Include physical demands  Note time spent on each task 21

Download Download Form 22

Resources Sample physical demands task assessment for:  Vac truck driver Vac truck driver  Roustabout Roustabout  Lease construction Lease construction 23

Vac Truck Driver 24

Roustabout 25

Lease Construction 26

Step 3: Identify Modified Duties  Identify tasks injured workers can do to help team  Ask employees to help  Make it meaningful 27

Step 4: Communicate With Doctor  DWC Form-74, Description of Injured Employee’s Employment  DWC Form-73, Work Status Report 28

Download Download DWC Form-74 29

Download Download DWC Form-73 30

Step 5: Make a Bona Fide Offer  Must be in writing  Must comply with DWC Rule 129.6DWC Rule  What if worker’s restrictions change? 31

Download Download checklist 32

Download Download sample bona fide offer of employment letter 33

Download Download and submit DWC Form-6 when the employee’s wages change 34

Resources  Return-to-Work Kit Return-to-Work Kit  TDI return-to-work resources TDI return-to-work resources Return to table of contents Go to next presentation 35