Request a call Login

  • Recent events have cast a glaring spotlight on the consequences of overlooking workplace safety. The U.S. Occupational Safety and Health Administration (OSHA) cited a Georgia-based chemical manufacturer, Chemical Products Corp., following a tragic incident that unfortunately took the life of an employee who had only been on the job for two months.

    The incident, involving fatal chemical and thermal burns from hot sludge after the opening of an air intake valve, not only resulted in the loss of a valued team member but also caused severe injuries to another worker. Shockingly, this was not an isolated case, as another employee suffered chemical burns just 25 days later.

    The Cost Of Ignoring Safety Measures

    OSHA’s citation outlined five serious violations against Chemical Products Corp., highlighting the company’s failure to implement essential safety precautions designed to shield workers from such hazards. The proposed penalties of $55,403 shed light on the real cost of neglecting safety protocols.

    Protecting Your Employees Is Non-Negotiable

    As a business owner, the safety and well-being of your team should be non-negotiable. These incidents are a stark reminder of the potential consequences of overlooking safety measures. Beyond the ethical imperative, investing in workplace safety procedures is an investment in the very foundation of your business – your employees.

    The Crucial Role Of Comprehensive Safety Procedures

    Establishing and strictly adhering to comprehensive safety procedures isn’t just a legal requirement; it’s a fundamental necessity. Proper training, hazard assessments, and the implementation of safety protocols are imperative to prevent tragic incidents such as those witnessed at Chemical Products Corp.

    Proactive Steps For A Secure Workplace

    As a responsible business owner, take proactive steps to ensure a secure workplace. Regular safety audits, employee training sessions, and a culture prioritizing safety can significantly reduce the risk of accidents and injuries.

    Avoiding Tragedy

    In the wake of this incident, the need for comprehensive workplace safety measures couldn’t be more evident. Small business owners often juggle multiple responsibilities, and ensuring stringent safety protocols might seem daunting. However, when you partner with a professional employer organization (PEO), you gain access to expertise, resources, and guidance to navigate the intricate landscape of workplace safety. PEOs like GMS offer tailored solutions, from comprehensive safety training to proactive risk assessments, all aimed at fortifying your business against potential hazards. They provide the support needed to create a culture of safety, minimizing risks and ensuring that tragic incidents like the one at Chemical Products Corp. never occur.

    GMS’ safety team can help business owners take a proactive approach to workplace safety through various services. These strategies include the following:

    • Jobsite inspections
    • Accident and injury investigations
    • Training
    • Job hazard analysis (JHA) and standard operating procedures (SOP)
    • OSHA inspection and citation assistance 
    • Onsite consulting

    Don’t wait for a crisis to prioritize safety – partner with GMS today to safeguard your business and employees. Contact us today to learn more. 

  • In a recent development, the New Jersey Commissioner of Banking and Insurance has approved a 3.9% decrease in rates and rating values tied to workers’ compensation insurance for new and renewal policies. This significant shift, set to take effect on January 1st, 2024, is grounded in the latest financial and statistical data reported to the state Rating Bureau. What’s intriguing is how this change echoes the impact of the COVID-19 pandemic within the workers’ compensation realm.

    The commissioner’s statement highlights the far-reaching implications of the pandemic, influencing health and the financial landscape of insurance. It’s a pivotal moment for businesses in New Jersey, with this rate adjustment offering a glimmer of relief and opportunity. However, beneath this rate adjustment lies other crucial alterations directly impacting employers and employees involved in workers’ compensation claims.

    Data-Driven Changes

    Starting January 1st, 2024, there will be noticeable adjustments in the structure of weekly benefits tied to workers’ compensation. The maximum weekly benefit for most injury types (excluding permanent partial disabilities) will increase to $1,131 from the previous $1,099. Simultaneously, the minimum weekly benefit will increase to $302 from its previous mark of $293. These changes, set to come into effect at the start of the new year, signify a concerted effort to align compensation more effectively with prevailing economic conditions.

    Weekly Benefit Adjustments

    The notable increase in maximum and minimum weekly benefits signals a step towards enhancing compensation for workers in New Jersey. It’s an opportunity for businesses to reevaluate their existing workers’ compensation policies to ensure they align with these revised benefit structures. Understanding and adapting to these changes will be pivotal in guaranteeing fair and adequate coverage for employees, offering a level of financial security in the event of work-related injuries.

    Permanent Partial Disabilities

    For claims related to permanent partial disabilities, the revised weekly benefit range presents a more comprehensive approach. With adjustments to the weekly benefits range varying from $302 to $1,131, contingent upon the duration and severity of the disability, this change represents a more nuanced approach to addressing the varying needs of individuals with long-term or partial disabilities. Businesses must understand these benefit ranges to adequately support employees with specific needs.

    Partner With A Professional Employer Organization (PEO)

    Ultimately, the approval of rate changes and benefit adjustments represents a balancing act between protecting the interests of employers and employees. Embracing these changes with a proactive stance will empower businesses to navigate the shifting workers’ compensation landscape, ensuring comprehensive coverage and compliance. Consider partnering with a professional employer organization (PEO). Amidst these changes in workers’ compensation regulations in New Jersey, a PEO like GMS handles HR-related tasks, including managing workers’ compensation claims, ensuring compliance with evolving regulations, and offering tailored solutions to mitigate risks. Partnering with GMS can empower New Jersey business owners to navigate these changes seamlessly, allowing them to focus on their core operations while ensuring their employees receive comprehensive support and coverage. Contact us today to learn more.

  • To protect workers and revolutionize workplace safety, California Governor Gavin Newsom recently signed Senate Bill 553, a groundbreaking law requiring employers to adopt comprehensive workplace violence prevention plans. These plans will help maintain records of threats or incidents of workplace violence and ensure that workers receive effective training to handle each situation. This marks a significant milestone in ensuring the safety of employees in a wide range of industries.

    A Broader Approach To Workplace Safety

    California’s new workplace violence prevention law, which extends its requirements to nearly all employers, represents a significant leap forward in ensuring the safety of employees. While specific industries such as health care have already established workplace violence prevention standards, this law broadens the scope, providing protections to workers in various sectors.

    Key Elements Of The Workplace Violence Prevention Plan

    One of the foundations of this new legislation is the requirement for employers to establish a written workplace violence prevention plan. This plan should encompass several elements, including:

    1. Designating a responsible person for implementing the program 
    2. Procedures for reporting and responding to workplace violence incidents
    3. Ensuring non-retaliation against employees who report such incidents
    4. Providing means for employees to report incidents or concerns without fear of reprisal
    5. Methods to alert employees about the presence, location, and nature of workplace violence emergencies
    6. Evacuation or sheltering plans appropriate to the work site 
    7. Processes for investigating employee concerns and informing employees of the investigation results
    8. Employee involvement in developing and implementing the violence prevention plan 
    9. Periodic reviews and revisions of the plan as needed

    The Power Of Training

    Another crucial aspect of the law is the requirement for employers to train workers on “red-flag behaviors” and strategies for de-escalating potentially volatile solutions. This training empowers employees to recognize warning signs and appropriately defuse conflicts before they escalate into violence.

    Keeping Detailed Records

    Beginning on July 1st, 2024, employers must log all reports of violence or threats and document their actions in response to these incidents. The log must not contain any personally identifiable information to safeguard employees’ privacy. These records must be maintained for at least five years and made available to the California Division of Occupational Safety and Health (Cal/OSHA) upon request. Employers can face fines if they do not keep the log properly.

    Trends And Prevention

    Maintaining these records is not just about compliance but also about improving long-term violence prevention efforts. By keeping track of incidents and responses, California employers will have an opportunity to identify trends within their organizations, allowing them to develop more effective violence prevention strategies.

    Protecting Employee Identities

    To encourage reporting without fear of retaliation, a provision in the law allows a supervisor or union representative to apply for a temporary restraining order on behalf of an employee without revealing the employee’s name in the report. This provision is set to take effect on January 1st, 2025, and aims to provide a more secure channel for reporting credible threats.

    Exemptions And High-Risk Industries

    The new law does not apply to employers already covered by California’s existing workplace violence prevention standard for the health care industry, telecommuting employees working from a location of their own choice, and worksites with fewer than 10 employees that are not accessible to the public. High-risk industries are more vulnerable to workplace violence and include the following:

    • Health care
    • Late-night convenience stores
    • Taxi services
    • Ride-hailing companies
    • Customer service offices

    Establishments serving alcohol, including restaurants, bars, and casinos, also face a higher risk, according to the U.S. Occupational Safety and Health Administration (OSHA).

    Workplace Violence Statistics

    Workplace violence is a pressing issue that this law seeks to address. In 2020, there were 392 workplace homicides and 37,060 nonfatal injuries in the workplace resulting from intentional harm by another person, as reported by the U.S. Bureau of Labor Statistics (BLS). These incidents occurred across various industries, making the need for comprehensive prevention measures evident.

    The Benefits Of A PEO

    The new California law on workplace violence prevention has opened a path to a safer and more secure future for employees. However, navigating this path successfully requires expertise and guidance, which is where professional employer organizations (PEOs) like GMS can shine. These seasoned professionals specialize in navigating the intricacies of labor regulations, offering tailored solutions to meet the demands of this legislation. As a business owner, when you partner with a PEO, you’re unlocking the full potential of your workforce, fostering a culture of safety and well-being. In this era of change and progress, the collaboration between California’s law and PEOs creates a simpler, safer, and stronger tomorrow for business owners. Contact us today to learn more.

  • In a move that has been long-awaited by workers and advocates across New York, Governor Kathy Hochul has taken a decisive step to improve the lives of injured workers. She signed into law a bill that will not only increase the minimum weekly workers’ compensation benefit but also revolutionize the way these benefits are calculated, ensuring a fairer and more just system.

    A Boost In Workers’ Compensation Benefits

    The heart of this groundbreaking reform is the significant increase in the minimum weekly permanent and temporary partial disability benefits. As it stands, the minimum weekly benefit has remained stagnant since May 2013 at $150. However, with the signing of S1161/A2034, these benefits will see a remarkable transformation. In 2024, the minimum weekly benefit will rise to $275, providing immediate relief to workers who have long felt the weight of inadequate compensation.

    But that’s not all; the bill doesn’t stop at a one-time increase. In 2025, it will continue its upward trajectory, reaching $325 per week. These changes are not just about numbers; they’re about improving the lives of workers who depend on these benefits to make ends meet when faced with an injury.

    A Fairer And More Equitable Future

    The most transformative aspect of this reform is the indexing of minimum weekly benefits to the state’s average weekly wage, ensuring fair compensation for all injured workers. Beginning in 2026, these benefits will be linked directly to the state’s average weekly wage, the same metric used to adjust the maximum benefit.

    Under this new system, the minimum weekly benefit will be set at one-fifth of the average wage. This means that if an injured worker’s earnings fall below the threshold, they will receive full wages as compensation for their covered injury. This change is a game-changer for those who, in the past, were left with inadequate compensation due to lower incomes.

    This new law is a testament to the power of advocacy and the determination to create a more equitable society. It acknowledges the fundamental principle that every worker, regardless of their income, deserves fair compensation when faced with a work-related injury. Governor Hochul’s signature on this bill marks a historic moment for New York and a brighter future for its injured workers.

    Navigate The Future Of New York Labor Laws With GMS

    In light of these progressive changes in workers’ compensation benefits, the landscape of employment in New York is evolving rapidly. For businesses, this presents an excellent opportunity to demonstrate their commitment to their employees’ well-being while also staying compliant with the latest regulations. Partnering with a professional employer organization (PEO) like GMS is the key to confidently navigating these changes.

    PEOs offer guidance on navigating the intricacies of these new laws and provide tailored solutions to ensure your business is fully compliant. Partnering with us allows you to focus on what you do best – growing your business – while we handle the complexities of compliance, ultimately fostering a more productive, happier, and secure work environment for your employees. When you partner with us, we’ll lead the way by helping you embrace the future of workplace fairness. Contact us to learn more.

  • The safety and well-being of workers are paramount in any industry, but it’s especially crucial in high-risk sectors such as construction. However, recent incidents have highlighted the need for stricter adherence to safety standards. In this regard, the U.S. Occupational Safety and Health Administration (OSHA) has taken stern action against Houston-based Sonny Steel Erectors Inc. for exposing their workers to serious hazards by neglecting to provide proper fall protection systems.

    The Case Of Sonny Steel Erectors Inc.

    Earlier this year, OSHA inspectors discovered a situation at a steel building construction site in Cypress, Texas. Sonny Steel Erectors Inc. employees were found to be working at elevated heights without the necessary fall protection. Consequently, OSHA cited the company for one serious violation, one willful violation, and one repeat violation. The severity of these violations is compounded by the fact that the company had previously been cited for similar safety breaches in 2019, 2020, and 2022. Moreover, a deeper investigation revealed that the contractor had failed to address hazards associated with violations dating back to 2011. As a result of these violations, OSHA proposed penalties totaling $266,416.

    The Importance Of Proper Fall Protection And Training

    The incident involving Sonny Steel Erectors Inc. highlights the importance of comprehensive fall protection systems and adequate training for workers engaged in construction activities. The following are key reasons why prioritizing fall protection and training is essential:

    Worker safety 

    The most compelling reason for implementing proper fall protection measures and training is to ensure the safety of construction workers. Falls from elevated heights are one of the leading causes of serious injuries and fatalities in the construction industry. By providing appropriate fall protection equipment and training, employers can significantly reduce the risk of accidents and protect their workforce from harm.

    Legal compliance

    OSHA regulations mandate that employers must provide a safe working environment for their employees. This includes implementing fall protection systems when workers are exposed to potential fall hazards. Failure to comply with these regulations endangers workers and exposes the company to substantial penalties, as demonstrated in the case of Sonny Steel Erectors Inc.

    Enhanced productivity

    Ensuring proper fall protection and training isn’t just about meeting regulatory requirements; it can also improve productivity. When workers feel safe and confident in their work environment, they are more focused and motivated, resulting in increased efficiency and quality of work.

    Reputation and client trust

    Companies with a strong commitment to worker safety and compliance tend to build a positive reputation within the industry. Clients are more likely to trust and hire contractors who prioritize safety, leading to enhanced business opportunities and long-term partnerships.

    Long-term cost savings

    While investing in fall protection systems and training may seem like an added expense, it pales compared to the potential costs associated with workplace accidents. Injuries can result in medical expenses, workers’ compensation claims, legal fees, project delays, and damage to equipment. Companies can avoid these substantial costs by preventing accidents through proper safety measures.

    Collaborate With PEOs For Optimal Protection

    In the dynamic landscape of the construction industry, ensuring the safety of workers through robust fall protection measures and comprehensive training is an ethical necessity and a strategic advantage. Businesses looking to fortify their commitment to worker safety can turn to professional employer organizations (PEOs) for invaluable support. PEOs like Group Management Services (GMS) specialize in managing various aspects of human resources, including safety compliance. Partnering with GMS can empower construction companies to navigate the intricacies of OSHA regulations, develop tailored safety protocols, and provide up-to-date training to their workforce.

    By leveraging the expertise of a GMS, businesses can not only enhance their safety standards but also streamline operations, reduce risks, and foster a culture of diligence that resonates throughout their organizations. As we contemplate the incident involving Sonny Steel Erectors Inc., let us remember that a PEO can be an indispensable ally in the quest for workplace safety, ultimately safeguarding lives and the future of businesses in the construction industry. Contact us today to learn more.

  • JZ Exteriors and Repairs LLC, a roofing contractor in Illinois, recently received citations from the U.S. Occupational Safety and Health Administration (OSHA). The company received the citation because it failed to protect its workers from falling hazards. In addition to this citation, the company already had existing unpaid penalties of $31,163 for workplace safety violations.

    Diving Deeper Into The Citations

    OSHA inspectors identified the following issues:

    Lack of fall protection and training

    During their inspection, OSHA inspectors observed six roofers removing asphalt shingles from a commercial building at heights of up to 12 feet without any fall protection measures in place. The company failed to provide proper training in using fall protection equipment.

    Absence of accident prevention programs 

    JZ Exteriors and Repairs LLC did not have an accident prevention program in place, which is essential for ensuring workplace safety.

    Inadequate hazard inspections

    The company lacked a competent individual responsible for inspecting worksites for potential hazards, which is crucial for identifying and addressing safety risks. 

    In addition to these issues, the company also failed to use ladders properly, de-energize circuits, thereby exposing workers to electrical hazards, and did not have a fire extinguisher readily available for emergencies. 

    As a result of these violations, OSHA cited JZ Exteriors and Repairs LLC for five repeats, four serious, and one other-than-serious violation. The total penalties imposed amounted to $66,711. The company now has 15 business days to take the following actions:

    • Comply with the citations and penalties 
    • Request an informal conference with OSHA’s area director to discuss the findings
    • Contest the finding before the independent Occupational Safety and Health Review Commission 

    A Business Owner’s Worst Nightmare 

    Experiencing citations and hefty penalties from OSHA can be a business owner’s worst nightmare. The consequences not only include financial burdens but also reputational damage and potential harm to workers. However, there is a solution that can help prevent such nightmares from occurring within your business – partnering with a professional employer organization (PEO). A PEO like GMS specializes in managing various aspects of HR, including workplace safety compliance. You can ensure that you have a robust safety program in place, proper training for employees, and regular hazard inspections. 

    In addition, our safety experts provide guidance on OSHA regulations, helping business owners stay ahead of potential violations and maintain a safe working environment. Don’t let your business face the same fate as JZ Exteriors and Repairs LLC. Consider the proactive approach of partnering with GMS to protect your workers and your business from potential nightmares. Contact us today to learn more. 

  • Due to unidentified risks, 77% of companies faced operational mishaps within the last five years alone. Even with extensive safety measures and planning, accidents still happen, and unforeseen events could have catastrophic consequences for your employees and business. The source of a threat can come anywhere – from legal liabilities to accidents in the workplace and everything in between. That is why risk management is an essential component of any successful business strategy.

    By developing a robust risk management plan, you can mitigate these hazards and ensure you and your employees have appropriate training and are well-prepared to handle any unexpected challenges that may arise. As a small business owner, understanding the fundamentals of risk management is crucial to achieving your goals and keeping your employees safe.

    What Is Risk Management?

    Risk management involves identifying, assessing, and prioritizing potential risks that could negatively impact a company’s operations, reputation, or financial stability. It consists of evaluating the likelihood and impact of those risks and taking steps to mitigate or avoid them.

    In the United States, millions of workers suffer from serious job-related injuries every year, according to the Occupational Safety and Health Administration (OSHA), resulting in lost productivity, workers’ compensation claims, and increased insurance rates. Risk management is a proactive approach that works to prevent these types of accidents by identifying hazards and implementing strategies to minimize the likelihood of damage occurring and protect your employees.

    Understanding Workers’ Compensation 

    Workers’ compensation is a type of insurance that benefits employees who are injured or become ill due to their job. The goal of workers’ compensation is to ensure employees receive the medical care they need and receive compensation for lost wages.

    An employee must have been injured or become ill while on the job to be eligible for workers’ compensation benefits which include injuries that occur while traveling for work or attending a work-related event. Employees eligible for workers’ compensation benefits are entitled to receive benefits regardless of who was at fault for the injury. Additionally, you must report workplace injuries to your insurance carrier and provide the injured employee with the necessary paperwork to file a claim.

    Different types of workers’ compensation claims include medical care, lost wages, and disability benefits. Medical care benefits cover the cost of medical treatment related to the injury or illness. Lost wage benefits provide a portion of the employee’s regular wages while they cannot work due to the injury. Disability benefits provide ongoing financial support for employees who cannot return to work due to a permanent disability.
    Injuries covered by workers’ compensation can include everything from slips and falls to repetitive motion injuries. It’s essential that you have a clear understanding of the types of damages protected by workers’ compensation and ensure your employees are aware of their rights.

    While navigating the workers’ compensation claims process can be complex, there are practical steps employees can take to ensure they receive the benefits they are entitled to. These steps include reporting injuries promptly, seeking medical attention, and working with an experienced workers’ compensation organization. You should have a straightforward process in place for reporting workplace injuries and work closely with your insurance carrier to ensure that claims are processed efficiently.

    Workers’ Rights To A Safe Workplace

    Workplace safety is a critical issue that affects employees’ health, productivity, and overall well-being, and it’s your legal responsibility as their employer to comply with OSHA guidelines. Failure to comply with safety regulations can result in severe consequences, including fines, penalties, and legal action.

    The OSHA guidelines outline the minimum safety requirements that you must meet to ensure a safe working environment. These guidelines cover a range of issues, including hazard communication, personal protective equipment, machine guarding, and electrical safety. You must provide safety training and equipment to your employees and maintain records of workplace injuries and illnesses.

    Workers have the right to a safe working environment and can take steps to report safety violations in their workplace by filing a complaint with OSHA or their state’s workplace safety agency. Employees cannot be retaliated against for reporting safety violations.

    OSHA enforces these regulations through inspections and investigations of workplace safety violations. Employers found to be in violation of safety regulations can face significant fines and penalties. A serious violation can result in a fine of up to $15,625, while a willful violation can result in a fine of up to $156,259. In addition to financial penalties, employers may also face legal action and negative publicity for failing to provide a safe working environment.

    Violations include failure to provide proper safety equipment, inadequate training, and failure to maintain machinery and equipment. These violations can lead to severe injuries and even fatalities. For example, an employer who fails to provide proper fall protection equipment to employees working at heights can face serious consequences if an employee falls and suffers a fatal injury.
    However, you can take practical steps to ensure you meet safety requirements and avoid fines. These steps include conducting regular safety audits, providing proper safety training and equipment, and maintaining accurate workplace injuries and illnesses records. You can also consult with workplace safety experts to stay up-to-date on the latest safety regulations and best practices.

    Workplace Safety Strategies 

    There are a variety of workplace risks that can threaten your employees, including falls, chemical exposure, and electrical hazards. Failing to take the appropriate precautions can turn the workplace into a dangerous threat for your employees and a potentially devastating financial expense.

    Workplace safety involves identifying potential hazards in the area of operation and implementing measures to prevent accidents and injuries. Safety audits must occur regularly to find the best strategies to mitigate risks. This can include:

    • Providing employees with personal protective equipment (PPE)
    • Employee safety training on equipment and emergency drills
    • Implementing safety protocols for working with high-risk materials
    • Developing a comprehensive risk management plan that outlines potential risks and mitigation strategies
    • Working closely with insurance carriers to ensure that claims are processed efficiently

    Ensuring a safe work environment is an ongoing process that requires high levels of attention to protect your employees and minimize the financial impact of workplace incidents.

    Ongoing Risk Management

    Unfortunately, risk management is not a “one and done” type of process but requires continuous monitoring and revisions to your plan. It’s critical that you consistently reevaluate risks; proactive and preventive measures will benefit your business in the long term through:

    Identifying new risks: Business environments are constantly changing, and unknown challenges can emerge at any time. Ongoing monitoring and reviewing risks can help you identify new threats as they arise, allowing you to take proactive steps to mitigate them.

    Ensuring compliance: Laws and regulations related to risk management can change over time. Continued monitoring and reviewing of risks can help you ensure that you comply with any new laws or regulations pertaining to risk management, preventing legal issues and financial penalties.

    Improving decision-making: Ongoing risk monitoring and reviewing can provide you with valuable data and insights that can inform decision-making. This can help you make more informed decisions related to risk management, such as whether to invest in additional risk reduction measures or transfer risks to another party.

    Protecting the business’s reputation: Constant monitoring and reviewing risks can help you identify potential reputational risks before they become significant. You can take proactive steps to protect your reputation and maintain the trust of your customers and stakeholders.

    Minimizing financial losses: Effective risk management can help you reduce the economic impact of potential risks. For example, insurance coverage can help mitigate the financial impact of a natural disaster or other unexpected event.

    Enhancing stakeholder confidence: A risk management plan can enhance stakeholder confidence in your business by demonstrating you’re taking proactive steps to manage potential risks.

    Your Risk Management Plan

    Effective risk management means controlling future outcomes by acting proactively rather than reactively. Ultimately, by understanding the basics of risk management and implementing effective strategies, you can protect your business against potential risks and ensure its long-term success.

    The comprehensive process of risk planning combined with the ongoing need to monitor new and evolving risks is no easy task, especially when you’re already responsible for running the business itself. But you don’t need to do it alone; let us help you!

    Our extensive risk management services and experienced analysts help you stay ahead of risks associated with everything from workers’ compensation to workplace hazards. We build you a strategic risk management plan customized to your business. Additionally, we offer onsite consulting, job site inspections, training services, and OSHA inspection assistance so you no longer have to worry about potentially devastating accidents burdening your business. To find out which services will best benefit you and your business, contact us today!

  • As a small business owner in Ohio, you understand the importance of a well-functioning workforce for the success of your business. Your employees are the backbone of your business operations, ensuring your daily tasks run smoothly and the overall growth of your business. Running a small business comes with numerous responsibilities, one being properly navigating workers’ compensation. Though insurance programs aim to protect employees in case of work-related injuries or illnesses, what if there was an invisible threat within your business, silently draining your resources and jeopardizing your hard-earned success? If you’re unfamiliar, an alarming issue plagues businesses, especially in Ohio – workers’ compensation fraud.

    Detecting warning signs of workers’ compensation fraud is crucial for small business owners in Ohio to safeguard their interests and maintain a fair and safe work environment. Continue reading to explore critical indicators that can help you identify potential fraud.

    What Is Workers’ Compensation Fraud? 

    Let’s start with the basics – what is workers’ compensation fraud? Workers’ compensation fraud occurs when someone willfully makes a false statement or conceals information to receive workers’ compensation benefits or prevents an individual from receiving benefits to which they might be entitled. It’s more than just an employee exaggerating their medical condition or working while supposedly disabled. While these things occur within the workplace, employers are committing fraud by underreporting their payrolls to receive lower premiums, and health care providers are billing for services they’ve never performed. This can take various forms, ranging from exaggerated claims to staged accidents, ultimately leaving businesses burdened with inflated insurance premiums, legal situations, and a compromised work environment.

    However, states have different criteria for workers’ compensation fraud. Specifically in Ohio, an injured employee who does one of the following is considered to have committed fraud:

    • Receive workers’ compensation benefits the employee is not entitled to get
    • Enters into an argument for conspiracy to defraud the state Bureau of Worker’s Compensation or a self-insuring employer by making false claims for disability benefits
    • Makes false or misleading statements with the purpose of securing goods and services under the workers’ compensation act
    • Alters, falsifies, destroys, conceals, or removes documents necessary to establish the validity of a claim or needed to establish the nature of goods and services for which reimbursement is requested

    According to the Ohio Bureau of Workers’ Compensation, in Ohio alone, an estimated $80 to $320 million in fraudulent medical and compensation payments are made each year.

    Detecting Warning Signs Of Fraud

    According to the National Insurance Crime Bureau, one in 10 small business owners fears employees will fake an injury, and one in five owners do not know how to identify workers’ compensation scams. Understanding the warning signs to prevent these concerns and protect your business is critical. Let’s dive into these warning signs.

    Delayed reporting:

    If an employee consistently delays reporting an injury or accident, it could be a red flag. Fraudulent individuals may wait to report the incident to avoid scrutiny or make it seem like the injury occurred at work when it didn’t.

    Inconsistent descriptions:

    Employees involved in fraud may provide inconsistent or vague descriptions of the accident or injury. They might struggle to recall specific details or change their story when questioned. Inconsistencies between their statements and witness accounts or medical reports should raise suspicion.

    Having no witnesses:

    Legitimate workplace accidents often have witnesses who can support the injured employee’s account. However, employees involved in fraud may avoid involving witnesses or claim that no one else was present when the incident occurred.

    Late claims:

    Fraudulent claims often occur on Monday mornings or are reported late on Fridays. This timing is strategic, as it allows fraudsters to make it seem like the injury happened at work, even if it occurred outside of working hours or over the weekend.

    Lack of cooperation:

    Employees engaged in fraudulent activities may lack cooperation during the investigation process. They may be evasive, unresponsive, or hesitant to provide additional information. Genuine claimants are usually cooperative and willing to assist in the investigation.

    Conflicting medical reports:

    When reviewing medical reports, pay attention to any inconsistencies or discrepancies between the reported injury and the employee’s statements. Fraudulent individuals may exaggerate symptoms or provide misleading information supporting fraudulent claims.

    History of suspicious claims:

    Keep track of employees with a history of suspicious or frequent workers’ compensation claims. If an employee repeatedly files claims for minor incidents or has a high number of claims compared to their peers, it could indicate potential fraud.

    Lifestyle inconsistencies:

    Be mindful of any lifestyle inconsistencies or activities contradicting the claimed injury’s severity. For instance, an employee with a severe back injury claiming complete disability but regularly engaging in physically demanding activities outside of work raises suspicion. “It’s important for employers to know who their employees are and participate in good hiring practices. Knowing what your employees do for extracurricular activities (sports, groups, personal circumstances, and more) can always help investigate a claim,” emphasized Dani Terry, GMS’ Workers’ Compensation Claims Specialist Manager.

    Remember, it’s crucial to approach these warning signs with care and conduct a thorough investigation before making any conclusions. If you suspect workers’ compensation fraud, consult legal professionals and work closely with your insurance provider to gather the necessary evidence.

    Combatting Workers’ Compensation Fraud With A PEO

    Being aware of these warning signs of workers’ compensation fraud is essential for small business owners in Ohio to protect their businesses and maintain a fair working environment. By diligently recognizing these red flags, you can proactively address potential fraud, safeguard your employees’ well-being, and maintain the integrity of your workers’ compensation program.

    However, navigating the complexities of workers’ compensation can be challenging for small businesses. Fortunately, a professional employer organization (PEO) like GMS can help! We provide small business owners with comprehensive HR solutions, including workers’ compensation administration, claims management, and fraud prevention strategies. Partnering with us allows business owners to tap into expert knowledge, gain access to resources, and ensure compliance with Ohio Workers’ compensation regulations. You can finally focus on growing your business while having peace of mind knowing that your workers’ compensation program is effectively managed and protected against fraud.

    Dani added, “At GMS, we take the concerns from our employers very seriously regarding employees’ potentially filing a fraudulent workers’ compensation claim. Some of the immediate red flags that are common when dealing with a potential fraudulent case include the following:

    • Unwillingness to cooperate with employers and/or answer questions related to the circumstances surrounding the injury
    • Doctor shopping when they are released to return to work
    • Copycat claims
    • Filing a claim after paid time off (PTO) is denied
    • Alleged injury occurred right after clocking in on Monday morning

    If you ever feel that a situation is not right, do not be afraid to speak up. When you partner with GMS, you have a designated claims specialist that is there to help you.”

    GMS experts are here to protect your business. Contact us today to learn more!

  • Workers’ compensation is a crucial aspect of the employment system that protects employees who are injured or have fallen ill while performing their job duties. It provides medical expenses, lost wages, and rehabilitation costs to employees who are injured or become ill at their job. It also pays death benefits to families of employees who are killed on the job. Each state mandates the coverage, and the wage and medical benefits vary by state.

    Unfortunately, many misconceptions about workers’ compensation can prevent workers from receiving the support they need. In this blog, we’ll discuss some of the most common misconceptions about workers’ compensation and how to avoid them.

    Misconception #1: Workers’ compensation is only for workplace injuries

    One of the most common misconceptions about workers’ compensation is that it only covers injuries that occur on the job site. In reality, workers’ compensation can cover various work-related injuries and illnesses, including those outside the workplace. For example, if an employee is injured while attending a work-related event or traveling for work, they may be eligible for workers’ compensation benefits.

    Misconception #2: Workers’ compensation is only for severe injuries 

    Another common misconception is that workers’ compensation is only for severe injuries that result in long-term disability or death. However, workers’ compensation can also cover minor injuries that require medical attention, such as sprains or strains. In fact, employees must report even minor injuries to their employer and seek medical attention, as these injuries can worsen over time and lead to more serious health problems.

    Misconception #3: You can’t receive workers’ compensation if the accident was your fault

    Some employees may hesitate to file a workers’ compensation claim if they believe the accident was their fault. However, workers’ compensation is a no-fault system, meaning employees can receive benefits regardless of who caused the accident. As long as the injury occurred while the employee performed work-related duties, they may be eligible for workers’ compensation benefits.

    Misconception #4: Workers’ compensation is too difficult to navigate

    Navigating the workers’ compensation system can seem overwhelming; however, resources are available to help employees understand their rights and file a claim. Employees must familiarize themselves with their company’s workers’ compensation policies and procedures and seek help if needed.

    Have You Considered Utilizing A PEO? 

    At GMS, we understand how challenging workers’ compensation can be while you’re trying to grow your business. Since we’re a professional employer organization (PEO), we provide small businesses with the peace of mind they need when it comes to workers’ compensation. By partnering with us, small business owners can avoid common workers’ compensation pitfalls and protect their businesses from the financial and legal repercussions of workplace injuries. You can now focus on running and growing your business, knowing you have the expertise and resources to manage your workers’ compensation needs. Don’t let these misconceptions about workers’ compensation hold your business back – partner with GMS today and take the first step toward a simpler, safer, and strong business.

  • The California Division of Occupational Safety and Health Standards Board (Cal/OSHA) published an official draft of an indoor health illness prevention standard. While heat illness regulations are already applicable to outdoor workers, this new regulation strictly applies to employees working indoors when the temperature reaches at least 82 degrees.

    Understanding The Proposed Regulation 

    Under this draft version, business owners must have written heat illness prevention plans. The plan would be necessary to include the following:

    • Access to water
    • Cool-down spots
    • Acclimatization for newly assigned workers
    • Emergency response procedures 
    • Control measures to minimize the risk of heat illness

    Heat illness is a severe medical condition resulting from the body’s inability to cope with a particular heat load, including heat cramps, exhaustion, and heat strokes. There are 67,512 emergency department visits yearly due to heat in the U.S. In addition, 702 heat-related deaths occur each year. What will you do to protect your workers?

    Nick Clark, GMS’ Safety Manager, emphasized, “As a business owner in California, it’s essential to prioritize indoor heat illness prevention in the workplace. With temperatures rising across the state, you must take extra precautions to ensure your employees’ safety and well-being. Heat-related illnesses such as heat exhaustion and heat stroke can be severe and, in some cases, even fatal. To prevent these illnesses, you should provide cool and shaded areas for workers to take frequent breaks and access to plenty of water. You should also schedule physically demanding work during the cooler parts of the day and provide appropriate protective clothing. By implementing heat illness prevention measures, employers can protect their employees and improve productivity, reducing the risk of heat-related accidents.”

    This proposed indoor heat illness regulation is currently in the 45-day comment period, and the Cal/OSHA Standards Board will hold a public hearing on the proposed regulation on May 18th, 2023.

    Partner With GMS

    While we wait to hear if this will become a law in California, consider partnering with GMS to ensure the safety of your workers. We work with thousands of businesses and help them comply with all regulations and laws. When you partner with us, we update your employee handbook to reflect the necessary changes. In addition, our team of safety experts will come out to examine your facility to ensure you have complied with the law. Whether you need help creating cool-down spots for your employees or writing a proper emergency response procedure, we do it all. Contact us today.