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  • A workplace accident can be a life-changing event, both for the person injured and an employer. A serious injury can change someone’s life, which in turn can place your business under the spotlight for both the injured employee’s family and OSHA.

    While you can’t heal someone’s injury after the fact, there are ways that you can definitively respond to workplace injuries to help avoid future accidents and avoid OSHA intervention. Here’s an example of how GMS helped one company avoid OSHA scrutiny and put practices in place to prevent additional workplace injuries.

    Hard hats in place to improve workplace safety for employees. 

    A Swift Reaction to Workplace Safety After a Fall

    The incident in question starts with an employee on top of a loaded flatbed trailer. At some point, the employee fell off the trailer and broke his neck in two places. After falling, the injured employee couldn’t move and laid motionless for roughly 30 minutes before another worker found him. The injured employee was then rushed to the hospital and spent 12 days in the intensive care unit before being moved to the physical therapy unit.

    While the injured employee was being treated, there was more work to be done back at the site of the accident. Within 60 minutes of the accident, a GMS safety coordinator was on the scene to investigate the incident and interview everyone directly involved with the incident. 

    Meanwhile, a claims specialist was in constant communication with the company’s owner, the witness, the injured worker’s spouse, and the safety coordinator. During this time, the claims specialist was able to make sure that the safety coordinator had accurate information for him to proceed with the investigation and create a Standard Operating Procedure (SOP) to make sure that the company didn’t have another employee suffer the same fate.

    Five days after the accident, OSHA sent the company a letter requesting a copy of our investigation. The coordinator emailed the investigation to OSHA along with a list of preventative measures the company was implementing to prevent these types of accidents from happening again. The attached SOP detailed that employees were no longer allowed to climb on loaded trailers. It also included information on a tool employees would now use to tarp the load without having to climb on it. Dates for future trainings were also set to teach employees how to use this tool and prevent future injuries. 

    Within a week of OSHA’s initial request, the organization reviewed the materials and plans GMS put in place and decided not to take any further action. In addition, OSHA didn’t assess any penalties for the accident.

    Take the Right Workplace Safety Precautions to Protect You and Your Employees

    As tragic as the accident was for everyone involved, it could have been much worse for this company. By acting swiftly and decisively, the company now has practices in place to protect more employees from catastrophic injuries. The investigation and new workplace safety practices also helped prevent the company in question avoid additional issues from OSHA.

    With millions of nonfatal workplace injuries occurring every year, it’s crucial to have plans in place to not only keep your employees safe, but also protect your business from OSHA repercussions. 

    Want to make your workplace safer? Contact GMS today about protecting your business.

  • Like any other state, Tennessee has it’s own particular rules when it comes to workers’ compensation. The Volunteer State has specific compliance standards for acquiring coverage. Here’s what small business owners in Tennessee need to know about workers’ compensation.

    A woman filling out a work injury form for a Tennessee employer with workers’ compensation insurance.

    Does My Business Need Workers’ Compensation Insurance?

    The state of Tennessee is strict when it comes to required workers’ compensation coverage. To start, Tennessee law mandates that employers must secure workers’ compensation insurance if they have five or more employees.

    It’s important to note that there is a big distinction between who is considered an employee or an independent contractor. While you may not view certain part-time workers or family members as true employees, the state may count them toward your five-person threshold depending on certain criteria. The differences between employees and independent contractors typically come down to the level of control an employer has over a person. In Tennessee, the state adopted a new 20-factor test that went into effect Jan. 1, 2020 to determine who is legally considered an official employee.

    Exemptions to the five-person minimum

    While five employees is the main threshold for mandatory workers’ compensation insurance, there are exceptions to that rule. The exemptions work both ways, allowing some businesses to work around the five-person count in some instances while lowering the threshold for others.

    In Tennessee, there are a couple of instances where employers need to secure coverage even if they only have a single employee. This one-person threshold applies to all employers in the coal mining or construction service industries unless they are specifically exempt. For example, Tennessee’s Department of Labor & Workforce Development notes that sole proprietors, members of LLCs, and partners “are excluded from the count of employees that determines whether or not an employer is covered by the Tennessee Workers’ Compensation Act.”

    Minimum employee thresholds do not apply to any state and local government agencies, as well as businesses that employ farm laborers or domestic help. However, these entities, along with any other business not required to secure insurance, may purchase coverage at their own discretion. It’s also important to note that any companies that do not have to provide worker’s compensation insurance are not protected against legal action. Injured employees for these companies won’t receive workers’ compensation benefits, but may still file a lawsuit against the employer.

    How Do I Make Sure My Business is Covered?

    If you need to – or decide to – secure workers’ compensation coverage, you have three options in Tennessee:

    • Voluntary market plans
    • Tennessee assigned risk plans
    • Self-insurance plans

    Unlike monopolistic states where employers have a single route for acquiring workers’ compensation insurance, Tennessee allows business owners to compare quotes and purchase policies from private companies. If your business has older or higher-risk employees, you can also purchase coverage from Tennessee’s assigned risk plan. This plan is managed by the National Council on Compensation Insurance (NCCI) and gives employers in Tennessee an insurance option if the voluntary market won’t.

    The third option involves employers self-insuring workers’ compensation claims. This route means that an employer assumes the risks associated with providing workers’ compensation to employees. As such, a self-insured employer won’t submit claims to an insurance company or pay fixed premiums. Interested businesses can apply with the Tennessee Department of Labor & Workforce Development to qualify for self-insurance.

    However, this option means that your business is on the hook for the cost of each workers’ compensation claim out-of-pocket as they happen. This arrangement makes self-insurance a high-risk, high-reward approach for smaller businesses without assistance from a Professional Employer Organization or some other organization that can administer such a policy.

    What’s the Best Way to Protect My Business without Extensive Workers’ Comp Costs?

    While there are a few situations where you won’t need to secure workers’ compensation insurance, odds are that you do. Even if you don’t, that insurance can be an important safeguard against legal action in case an accident does occur.

    Of course, this protection does come at a cost. Workers’ compensation rates can be a major drain on your overall bottom line. Fortunately, you have options in Tennessee that allow you to find the best means of workers’ compensation coverage for your business. Even better, you can work with a PEO to not only expand your coverage possibilities but also work to lower your rates through cost containment and loss prevention strategies.

    Certain costs or risk levels can limit options for small companies. As a PEO that represents tens of thousands of employees, GMS can help you tap into Fortune 500-level services, such as better workers’ compensation insurance options and more ways to save on rates. Between expert claims managers and economies of scale, we can help you protect your business at a more reasonable cost.

    Ready to keep your business compliant and take the burden of HR administration off your shoulders? Reach out to our Tennessee office or one of our other locations to talk to one of our experts about how we can help you through risk management and other critical administrative services.

  • Running a business is difficult enough. Keeping track of the Occupational Safety and Health Administration’s regulations makes your job as an employer even more complicated.

    It’s not uncommon for small business owners to not fully understand the OSHA regulations that apply to their business – after all, there are a lot of them. However, noncompliance with OSHA regulations can not only put your employees in potential danger, but also lead to costly penalties that will set your business back financially. 

    An inspector with an OSHA compliance checklist with requirements for small business owners. 

    Who is Covered Under OSHA?

    The general rule of thumb is that if your business has employees, those employees are likely covered by federal OSHA regulations. There are a few exclusions to this, such as people who are self-employed, public sector employees, and family members who work on a farm. 

    Even with those omissions, the vast majority of businesses must meet OSHA safety and health requirements. However, businesses with 10 or fewer employees are defined as partially exempt by OSHA. This partial exemption means excludes these small business from some key responsibilities.

    Another important note is certain states have their own OSHA-approved health and safety plans. OSHA still monitors these state plans, but the state laws take precedence over federal rules. As such, you’ll need to double check your state’s exact regulations to see if they differ from federal OSHA laws. OSHA includes a map with all the active state health and safety plans and contacts on its website.

    OSHA Requirements for Small Business Owners

    Whether your business is partially exempt or not, OSHA affects your company in several ways. Employers have multiple responsibilities to ensure that their business is compliant with OSHA standards. 

    Provide a workplace free from serious recognized hazards

    The first major OSHA requirement for employers is to conform workplace conditions to applicable OSHA standards. These standards mandate that employers should identify and correct any safety and health hazards present in the workplace. If any hazards can be eliminated or reduced through feasible changes in working conditions, then those changes must be made to comply with OSHA standards.

    These dangers can vary greatly depending on the nature of your business. For example, a construction site may require safety measures such as fall protection, guards on machines, and removal of hazardous waste. Meanwhile, adding ergonomic seating may limit health risks in office environments. For an exact list of regulations, please refer to OSHA Standards – 29 CFR.

    Part of these changes often include ensuring that employees have the proper tools and equipment to complete their jobs safely. You must provide the correct personal protective equipment (PPE), such as gloves, eye protection, and more. Any tools and equipment must be properly maintained. Furthermore, it’s a small business employer’s responsibility to provide safe tools and equipment – employees should not be required to provide their own PPE aside from everyday clothing and items.

    Give employees the information necessary to protect themselves

    Another key OSHA requirement for small business owners is to provide employees freedom in their right to information. As an employer, you are expected to provide your workers with a few different forms of information.

    • On-site OSHA poster
    • Hazardous chemical details
    • Employee training

    On-site OSHA poster

    Every workplace has OSHA poster requirements for small businesses and large businesses alike. Regardless of company size, each business should have an OSHA or state-plan compliant poster on premises. Employers are required to display this poster in a prominent place so that employees can review their rights under OSHA law. An approved OSHA “It’s the Law” workplace poster is available for free online.

    Hazardous chemical details

    Any hazardous chemical containers must be properly labeled. These labels should not only identify the hazardous substance, but also include appropriate warnings. You should also keep Safety Data Sheets (SDSs) for every substance that your employees may encounter. These SDSs must be readily available to workers so that they can review them and learn about the chemicals, their effects, exposure prevention, and emergency treatment.

    Employee training

    OSHA requires employers to train employees about potential dangers and what they can do to stay safe on the job. Per OSHA rules, there are four different topics that should be addressed during employee training procedures.

    • Hazardous substance training. This training should include how to read SDSs and what to do when handling any incidents. 
    • Blood-borne pathogen training. Any employees who may be exposed to blood-borne pathogens during regular duty should be trained about how to deal with blood-borne pathogens in case of an emergency.
    • Emergency situation training. Employees should be trained on what to do in emergency situations, such as how to exit the building. 
    • OSHA inspector training. Employees should be trained on what to do if an OSHA inspector ever visits your workplace.

    Employers must communicate training in a language and vocabulary workers can understand. The method of communication depends on how many employees you have. Businesses with 10 or fewer employees can orally communicate a training plan to meet OSHA standards. Businesses with more than 10 employees must share a written plan that is kept in the workplace and available for employees to review at all times.

    Recordkeeping requirements

    Depending on the size of your business, OSHA may require you to keep records of serious work-related injuries and illnesses. Every accident should be recorded in the OSHA 300 log available online. Employers do not need to record minor injuries that only require first aid. Instead, employers should record the following injuries and illnesses listed by OSHA.

    • Any work-related fatality
    • Any work-related injury or illness that results in loss of consciousness, days away from work, restricted work, or transfer to another job
    • Any work-related injury or illness requiring medical treatment beyond first aid
    • Any work-related diagnosed case of cancer, chronic irreversible diseases, fractured or cracked bones or teeth, and punctured eardrums
    • Special recording for work-related cases involving, needlesticks and sharps injuries, medical removal, hearing loss, and tuberculosis

    It’s also important to note that recordkeeping is another area affected by partial exemption. Businesses with 10 or fewer employees do not need to maintain OSHA injury and illness records unless OSHA or the U.S. Bureau of Labor Statistics specifically instructs them to in writing. Employers in certain low-hazard industries are also exempt from this requirement.

    Reporting requirements

    OSHA is going to want to know about serious accidents or illnesses that occur at your workplace. These reporting requirements change depending on the severity of the issue. To start, employers are required to record any minor accidents and illnesses in the OSHA 300 log within seven days. 

    More serious incidents require added urgency and reporting measures. Workplace accidents that result in at least one death or send three or more employees to the hospital must be reported within eight hours. Meanwhile, employers must report work-related inpatient hospitalizations, amputations, and eye loss within 24 hours. For these types of incidents, you can report to OSHA through the following means:

    Once an incident occurs, you must post OSHA citations either at or near the work area involved. These citations should stay posted for at least three working days or until the violation is corrected (whichever is longer).

    Whistleblower protection

    OSHA will crack down hard on any employers who discriminate against employees who file complaints alleging OSHA violations. The Whistleblower Protection Program disallows employers from taking adverse actions against employees who engage in protected activities. These actions include, but are not limited to:

    • Firings or layoffs
    • Demotions
    • Denial of overtime or promotion
    • Reduction of pay or hours
    • Intimidation or harassment
    • Denial of benefits

    Potential OSHA Violations for Noncompliance

    While there are several different criteria to maintain OSHA small business compliance, not all violations are viewed in the same light. There are four different types of OSHA violations, each of which have distinct penalties.

    • Willful violations. Any violations that OSHA deems were intentionally and knowingly committed by an employer with plain indifference to the law. Penalties for willful violations can range from $5,000 up to $70,000 for each offense.
    • Serious violations. These violations occur when an employer knew, or should have known, about a hazard that would likely lead to death or serious physical harm. Serious violations can lead to penalties of up to $7,000.
    • Other-than-serious violations. These violations are also tied to the safety and health of employees, but the hazard in question probably wouldn’t lead to death or serious physical harm. Other-than-serious violations can result in penalties of up to $7,000.
    • Repeated violations. A business that commits violations that are similar to past offenses are committing repeated violations. OSHA can penalize businesses up to $70,000 for every repeated violation.

    Prevent OSHA Small Business Issues with Proactive Risk Management

    Workplace hazards are a major problem for any small business. Workplace injuries and illnesses can not only impact the wellbeing of your employees, but also cause OSHA to visit your business. Fortunately, there are ways you can mitigate, or even avoid, OSHA  inspections and penalties.

    At GMS, we help business owners take control of workplace safety through proactive risk management. Our team works with you to provide onsite consulting, training, and jobsite inspections to identify potential problem areas and help your small business stay compliant with OSHA regulations. We’re also there to handle key investigations and deal with OSHA on your behalf in case an incident ever does occur.

    Need a partner that can help your small business stay ahead of risks and avoid costly penalties? Contact GMS today about how we can save you time, money, and plenty of headaches by helping you take control of critical HR functions.

  • If you own a small business, there’s a good chance you need to carry workers’ compensation insurance to cover any work-related injuries or illnesses. Requirements for workers’ compensation coverage vary by state, with some states requiring businesses with as few as one or two employees to carry workers’ compensation insurance. Applicable companies that don’t comply will face penalties ranging from fines to criminal charges.

    Of course, carrying workers’ compensation insurance has some financial challenges as well. Between premiums and other factors, managing workers’ compensation has a direct impact on your business’ bottom line. Let’s break down how workers’ compensation affects your business and what you can do to lower your financial burden.

    An employee using safety training to reduce workers’ comp costs and claims for small businesses.

     

    How Much Does Workers Comp Cost?

    Workplace accidents and illnesses are costly, but those costs can come in different forms. There are two main ways that affect how much workers’ compensation costs.

    • Your workers’ compensation premiums
    • Hidden costs

    Workers’ compensation premiums

    The most well-known cost related to workers’ compensation are workers’ comp insurance premiums. Your base workers’ compensation premiums are heavily dependent on your business. There are three main factors that impacts your premium.

    • Class codes
    • Experience modification rate
    • Total payroll

    Your classification code identifies the business type and estimated cost of your workers’ compensation rate. Meanwhile, your experience modification rate – also known as an ex mod or an EMR – is a number that represents how your business compares to other businesses with similar employee classifications. A mod below one means your business has a good history of claims and will lower your base rate. In general, more claims or more severe claims will raise your EMR.

    These numbers are used to determine your base workers’ compensation rate. That rate is then applied against your payroll to determine how much you owe in workers’ compensation premiums. 

     

    The hidden costs of workers’ compensation

    While it’s easy to see how much your workers’ comp premiums cost your business, it’s harder to identify other potential for losses. There are two potential issues that can end up costing your business in the long run.

    • Lost work
    • Employee costs

    Depending on the nature of your business, your EMR can prevent you from making money. For example, a construction company with an EMR that’s too high may not be allowed to bid for certain jobs. As such, you may end up losing out on a great opportunity because your claims history scares off potential clients.

    Another potential issue is that workplace accidents and illnesses directly impact your employees. If your employees feel unsafe or that their health and wellbeing isn’t a priority, they can become unhappy at work. That disenchantment can make them less productive or leave for different opportunities. Either situation can directly impact your bottom line.

     

    How to Reduce Your Workers’ Comp Costs

    There are two key strategies that you can use to not only lower your workers’ compensation premiums, but also mitigate the hidden costs you may face in the future.

    • Have a safety culture
    • Claims management

    Have a safety culture 

    It’s no surprise that the best way to reduce workers’ compensation costs is to reduce or avoid injuries that lead to claims. The best way to reduce workers’ compensation claims is to embrace a culture of workplace safety.

    Proper education and training is an extremely effective way to reduce your rates. By limiting the number of claims – as well as the severity of injuries – you will lower your workers’ compensation costs over time. However, that process can only begin by committing to a couple of key practices.

    • Risk assessments
    • Safety training

    Risk assessments

    It’s hard to prevent issues if you don’t know what causes them. Risk assessments are designed to identify any hazards that put people in the workplace in potential danger. According to the American Society of Safety Professionals, this process involves an examination of several factors.

    • Tangible and intangible sources of risk
    • Threats and opportunities
    • Causes and events
    • Consequences and their impact on objectives
    • Limitations of knowledge and reliability of information
    • Vulnerabilities and capabilities
    • Changes in external and internal context
    • Indicators of emerging risks
    • Time-related factors
    • Biases, assumptions, and beliefs of those involved

    Assessing these potential hazards allows your business to not only fix existing issues, but also take measures to limit future problems as well. Those changes will make your workplace a safer place and in the event that OSHA knocks on your door that you’re doing what you can to protect the people at your workplace.

     

    Safety training

    While assessing and addressing risks is one step toward developing a culture of safety, training is another. Proper training and safety measures can be the difference between some nasty bruises and fatality. That’s why it’s critical to train all your employees on the following.

    • Safety and health policies, goals, and procedures
    • Functions of the safety program
    • Proper contacts for any questions or concerns about the program
    • How to report hazards, injuries, illnesses, and close calls/near misses
    • What to do in an emergency

    Claims management

    In an ideal world, no business would ever need to manage any claims. The reality of the situation is that there’s always a possibility that someone will have an accident. When that happens, the way you respond can help lower your workers’ compensation costs in the future.

    While safety programs and other preventative measures can mitigate the number and severity of these accidents, it’s essential to properly manage any claims that do arise at your workplace. That’s why it’s important to focus on a few vital best practices.

    • Timely reporting (not to exceed 24 hours from injury/accident)
    • Post-accident investigations
    • Return-to-work programs

    Timely reporting

    The quicker you report an accident, the better. Prompt claims management allows you to handle any incidents right away. 

    According to the National Council on Compensation Insurance, delayed injury reporting can increase your claim costs by up to 51 percent. There are a couple of reasons for this increase. For example, the injured individual may seek medical attention that goes toward the workers’ compensation claim. That treatment may have been deemed unnecessary if the claim had been reported and handled from the beginning. By reporting and managing the claim early, you can control any extra costs that will complicate the situation.

     

    Post-accident investigation

    Once an accident occurs, it’s critical to investigate the situation and take any appropriate action. This investigation should include the following objectives.

    • Identify the root cause of the injury.
    • Aid in mitigating all jobsite hazards.
    • Assist clients in the development of an internal incident investigation process.
    • Interview witnesses, photograph scenes, and gather vital information.
    • Generate a written investigation report for documentation.
    • Recommend corrective actions to prevent future accidents/injuries.

    Taking these actions help your business in a couple of different ways. First, it helps you solve existing issues and limit accidents in the future. By changing your culture and having a solid foundation regarding safety, your business will be prepared if and when OSHA knocks on your door.

     

    Return-to-work programs

    The cost of accidents can extend far beyond OSHA intervention. Return to work programs allow you to make sure that any injured employees get the care they need and know that you have their best interests in mind.

    The goal of a return-to-work program is to keep injured employees engaged and help them return to their roles as quickly as possible. It’s not uncommon for injured employees to feel detached from the company while on leave. With a return-to-work program, nurse case managers can keep employees involved and make them feel like they’re still a part of the business. With this level of care and attention, employees are less likely to sue, more likely to come back quicker, and can stay involved in the day-to-day safety culture.

     

    Reduce Workplace Injuries Through Education, Training, and Claims Management

    Prevention and claims management is your best tool when it comes to reducing your workers’ compensation costs. However, it’s hard to develop a culture of workplace safety without some assistance. 

    When you need to control your workers’ compensation costs, GMS can help. When you partner with GMS, you’re also getting a partner that can help you reduce claims and oversee the claims management process. Contact GMS today to talk to our team about how we can help you reduce your workers’ compensation costs.