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  • Workplace safety oversights can be expensive mistakes for employers. When an injury occurs and a claim is made, the Bureau of Workers’ Compensation (BWC) will come down hard on an offending business if they determine it is at fault. Depending on the situation, employers may also find themselves dealing with a VSSR, another violation that can lead to additional penalties.

    Image of saftey equipment. Learn what a VSSR is and how it can cost your business.

    What Exactly is a VSSR?

    As you may have guessed by the title of this post, VSSR stands for “violation of a specific safety requirement.” The list of safety requirements is outlined in the Ohio Administrative Code and are used to help determine injury claims through the Bureau of Workers’ Compensation (BWC).

    According to the BWC, “the Ohio Revised Code (ORC) states it is the responsibility of every employer in Ohio to provide a safe workplace and adhere to all safety rules.” If an employer is not adhering to one of the listed safety requirements, they could be hit with a VSSR. The existence of this VSSR could mean that the injured employee would be eligible for additional compensation through their BWC claim.

    Does Outsourcing HR Functions Mean You Lose Control of Your Business?

    How Does the BWC Determine if a VSSR Occurred?

    There are a few requirements that must be met before the BWC determines that  an injury was the result of a VSSR. In order to collect an additional compensatory award, the injured worker must prove the following:

    • That the safety requirement(s) was both specific and applicable
    • That the employer was not in compliance with the safety requirement(s) when the accident occurred
    • That the non-compliance with the requirement(s) directly contributed to the injury

    The BWC will then turn to their safety violations investigation unit (SVIU), to proceed with the investigation. An impartial investigator will notify everyone involved in the claim and contact the separate parties. After they gather all the facts, which includes a site inspection, interviews, and related documents, the investigator will file a report with his or her findings in the BWC claim before the Industrial Commission of Ohio (IC) has a hearing on the matter.

    Keep in mind that the ORC does not place all the responsibility on the employer. Workers are also expected to properly use safety equipment provided by the employer as well. If they don’t, then the BWC may not find the employer at fault for the injury.

    What are the Penalties Associated with a VSSR?

    If the IC deicides that an employer is at fault for a VSSR, it’s going to cost that company quite a bit. The IC will grant the injured worker an additional monetary award, which the BWC states can range anywhere “from 15 to 50 percent of the maximum allowable weekly compensation rate granted to the injured worker.”

    Multiple VSSRs can also become a costly problem. If a company has been charged with two or more VSSRs within a 24-month period, the IC can impose an additional penalty of up to $50,000.

    What Can My Business Do About VSSRs?

    It’s important to crack down on any potential violations. Make sure that you’re adhering to safety requirements and creating a safer working environment for you and your employees.

    Of course, this is easier said than done, especially if you’re not an expert on risk management and don’t have the time to become one. A Professional Employer Organization can provide your business with expert risk management services and strategies that can help you create a safer workplace and limit your risk for workers’ compensation claims. Contact us today to talk to one of our experts about how we can help you make your business a safer place.

  • A culture of workplace safety not only helps protect you and your employees from avoidable accidents, it can also benefit your business financially. Costs associated with workers’ compensation rates can add up over time, but preventative measures can help businesses save their hard-earned money.

    One place that has seen the benefits of reduced fees is North Carolina. Business Insurance reported that two states announced workers’ compensation rate reductions in 2019, led by a 17.2 percent drop for the Tar Heel State. What could have caused this and how does it affect small business owners? Here’s what you need to know.

    An injured employee filling out a claim for a small business dealing with high worker’s compensation claims.

    What Does the Rate Decrease Mean for Small Businesses Owners in North Carolina?

    There’s nothing uniquely different about North Carolina’s workers’ compensation laws, so that isn’t the reason why the state’s decrease in rates is markedly higher than others. Instead, the first takeaway from the announced rate decrease is that businesses in North Carolina have focused on better implementations of safety programs and procedures in the past year. As Business Insurance notes, employers are reporting fewer claims overall and that the claims are less severe on average than in the past.

    Another potential explanation could involve the growth of non-manual-labor-intensive jobs. These jobs are less prone to workplace injuries, so an increase of employees in these fields relative to other industries naturally lowers the average number of claims.

    Of course, the 17.2 percent rate drop doesn’t mean that business owners can simply enjoy the statewide trend and rest on their laurels. Since every business can deal with different insurance carriers, industries, and other factors; that drop likely represents an average decrease and not a guaranteed rate drop. In that case, it’s possible that your business could see an increase in rates despite the statewide trend. To combat this, you’ll want to take some of the same measures that helped North Carolina achieve such notable rate drops.

    What Can Small Business Owners Can Do to Lower Their Workers’ Compensation Rates?

    There are several ways that you can help protect your business and limit the chances of claims. One of the most notable methods to do this is through safety programs. A successful workplace safety program can help employees avoid dangerous situations, as well as provide some additional benefits for your business. Another way to help lower worker’s compensation rates is to conduct risk assessments. These assessments can identify potential areas where your business is non-compliant with OSHA laws. In addition, they can highlight other areas that are technically fine in terms of safety codes but could still be improved.

    Creating a safer work environment isn’t the only way to help lower worker’s compensation claims. You can also take a proactive approach to claim management. If an employee has an incident that results in a back injury, it’s important to go through the proper process to show that your business took all the right steps, such as filing the first report of injury and helping the employee find an appropriate doctor. After that, a good return-to-work plan can help the employee ease back into their responsibilities without negatively affecting their injury.

    It’s also important to note that not all worker’s compensation claims are legitimate. Instances of fraudulent claims are uncommon—ABC News notes that worker’s compensation fraud accounts for roughly one or two percent of cases—but the costs associated with them can increase your rates if gone unnoticed. If you think that a claim may be fraudulent, you can work with claims management experts to investigate the situation and make sure that your business is protected in another way.

    How a PEO Can Help You Manage Worker’s Compensation Claims

    Proper worker’s compensation claim management is important, but it also requires a lot of work in an area that you may not have the time or expertise to properly handle. As a Professional Employer Organization, GMS has experts in locations across the country who can help you take the right measures to help lower your rates and protect your business.

    If you own a business in North Carolina, our Charlotte branch can work with you to protect your company and its employees. If you’re not based in the Tar Heel State, don’t worry—we have locations across the country that can assist with risk management, outsourcing payroll, benefits administration, and other key HR functions. Contact GMS today to talk to one of our experts about how we can help your business prepare for the future.

  • What do you do when a worker gets injured on the job? It’s important to make sure your employees are protected in the case of a job-related injury, while also making sure that your business is protected. 

    Every company is susceptible to workplace injuries. In 2017, the U.S. Bureau of Labor Statistics reported about 2.8 million nonfatal workplace injuries, ranging from slips, trips, and falls to muscle strains.

    As an employer, finding ways to contain costs in all areas of your business are crucial, but there is a fine line between saving money and ensuring the health and recovery of your employees in these situations. One way to set yourself up for the best possible result of a workers’ compensation claim is to utilize a nurse case manager.

     A nurse case manager can help reduce the cost of worker’s compensation claims.

    Role of a Nurse Case Manager in Workers Compensation

    A nurse case manager helps address the medical needs of your employee, while keeping open communication between all parties involved. According to mPower by Mitchell, a group of technology leaders and insurance industry experts, “Engaging a nurse case manager on a claim can save an average of $6,100 in medical and indemnity costs, resulting in an 8:1 ROI.” 

    Group Management Services (GMS) understands the importance of having a nurse case manager who is closely involved in moving claims forward while focusing on your employee’s health and recovery. Here’s how our in-house nurse case manage can reduce costs:

     

    GMS In-House Nurse Case Manager Others
    Provides prompt medical review of complicated industrial injuries Take a “wait and see” approach
    Fast tracks claims on Day One to an in-house case manager dedicated toward a positive claim resolution Employees are misinformed by unqualified outside sources
    Spots “transitional duty opportunities” for a swift return to work Incur replacement labor costs
    Reduces likelihood of attorney involvement Open themselves up to “Ambulance Chasers”
    Focus on improving morale and encouraging positive outcomes for all parties Poor company morale leading to “copycat” claims
    Collaborates team approach in working hand-in-hand with GMS claim examiners Potential for errors in paperwork without a qualified professional
    Corresponds with medical personnel to improve efficiency of treatment in identifying all work-related conditions Delayed care drives costs and increases frustration
    Controls medical tests and coordinates care to improve Late diagnosis can lead to less efficient treatment and delayed recovery
    Identifies red flags for fraud and potential Rx abuse Increased costs and opiate addiction risks
     
    As you can see, when you have someone closely involved to moving the claim forward and focusing on your employee’s health and recovery, everyone wins. Helmsman Management Services, a subsidiary of Liberty Mutual Insurance, compiled the injury data from over 40,000 claims and found that claims involving a nurse case manager had:
    • 16 percent lower future medical costs
    • 15 percent lower overall claim costs
    • 12 percent faster claims resolution
    In addition to cost savings, when you partner with GMS for workers’ compensation claims management, you’ll be able to leave the details to us. GMS will oversee the process of claims management and work closely with carriers to ensure your best interests are always at the forefront. We’ll help with claims investigation, claims certification, hearing representation, and merit rate predictions, so you can keep the focus on growing your business.
     

    More Than a Risk Management Company

    An in-house nurse case manager is just one of the ways GMS can help save you time and money when it comes to the administrative functions of running your business and managing your employees. When you partner with GMS, our experts can assure you have everything covered when it comes to payroll, human resources, risk management, and employee benefits. Contact us today to learn more. 

  • Broken bones, muscle strains, burns, cuts, and lacerations—injuries at work happen all too frequently. According to the National Safety Council, a worker is injured on the job every seven seconds.

    Does your organization have a workers’ compensation strategy? As a small or mid-size business, you might think you have it under control and can brush it under the rug until the unfortunate happens. Or, perhaps the very fear of “what if” keeps you up at all hours of the night.

    Either way, business owners have a lot to lose when they don’t have the resources to properly handle a workers’ compensation claim. See what you can learn from these two real-life stories involving workers’ compensation claims below.

     Construction worker suffers a workers’ compensation injury.

    [more]

    Names have been changed to protect identities.

     

    The Case of the Missing Workers’ Compensation Policy

    Mary was the owner of a security camera company. She had been in business for 29 years, and one employee named Jack had been with the company for 25 of those years. Jack drank, consuming a daily liquid diet of whiskey and beer.

    One day, he was 20 feet up on a ladder, putting together a security camera at a school during recess. His shakes from alcohol withdrawal caused him to lose control of the ladder and fall, breaking both of his arms.

    An ambulance transported Jack to the hospital where they tested his blood. The first time, his test results detected MRSA. The second time, the doctors found both cocaine and marijuana in his system.

    Jack filed a workers’ compensation claim, but Mary wasn’t worried. She figured that between the drinking and illicit substances found in her employee’s blood, she could go to court without representation and the judge would easily rule in her favor.

    Unfortunately for Mary, that wasn’t the case. Mary didn’t have an employee handbook. She simply never had time to put any real policies in place. When the judge asked about Mary’s post-accident policy, her makeshift handbook of sorts was found unacceptable. 

    The workers’ compensation claim cost Mary $85,000. On top of that, Mary had to pay Jack 14 months of unemployment.

    Let that sink in. The real kicker, though, is Jack then sued Mary for $5,000 for not having rules or an employee handbook to protect him.

    Workplace injuries used to keep Mary up at night. Fast-forward six years later, and that’s no longer the case. Mary sought the expertise and protection of Group Management Services and was quickly onboarded with a risk and safety team to create policies and offer protection should the unfortunate happen again. As a business owner, she now says she sleeps better at night knowing GMS is protecting her business.

    Had Mary worked with GMS from the start, she would have been equipped with an employee handbook featuring a workplace injury policy that would’ve protected her from her employee’s alcohol consumption and drug use. She also would have had a human resources, safety, and legal team behind her to handle the claim efficiently and successfully in court.

    Mary is just one story of the millions of workers’ compensation cases that happen each year throughout the U.S. However, not all workers’ compensation cases are quite as horrific.

     

    The Case of the Fraudulent Workers’ Compensation Claim

    Sam headed a construction group that his family had owned for over 60 years. The company had been passed down through generations, and Sam worked hard to protect the business.

    One Saturday, an employee named Tom was working at one of the construction sites and fell 15 feet through an opening in the ceiling. He went to the hospital and stayed overnight.

    Meanwhile, Sam notified his risk manager at GMS right away and she worked with him over the weekend to report it to the Occupational Safety and Health Administration (OSHA). 

    By Monday, a field case manager at GMS met with Tom to gather his medical documentation. Together, the risk manager, field case manager, and legal team at GMS worked with Tom to sort out the facts of the case. They put together an investigation to uncover what actually happened during the time of the alleged accident, interviewing several witnesses.

    Six hours later, GMS got to the bottom of the case. One of the witnesses reported that Tom intentionally fell through the ceiling in hopes of putting the money he would earn from the workers’ compensation claim toward an “early retirement.” 

    As a result, Tom’s workers’ compensation claim was denied. GMS is now preparing to take it to hearing, armed with enough evidence to report the claim to the Bureau of Workers’ Compensation (BWC) fraud unit and open a fraudulent case claim.

    Thanks to the quick action, constant communication, and solid teamwork, this workers’ compensation claim was handled efficiently and successfully, and Sam was able to protect his family business.

    Lower Your Workers’ Compensation Claims

    If you spend a lot of time—or not enough time—trying to find ways to lower workers’ compensation costs and keep your business safe, a professional employer organization (PEO) might be a good fit for you.

    Group Management Services is a PEO that provides cost containment and loss prevention strategies to help lower workers’ compensation claims. When you partner with GMS for workers’ compensation claims management, you’re getting more than just a cost savings; you’re also getting a partner that oversees the process of claims management and works closely with insurance carriers to ensure that your best interests are always at the forefront. 

    In addition, GMS provides comprehensive risk management, human resources, payroll, and benefits services to help your business run smoothly.

    Put your mind at ease. Contact GMS today to talk with one of our experts to see how we can make your business simpler, safer, and stronger.

  • It’s already difficult to manage payroll for a small business, but it can get even trickier if you have employees who work out of state. Whether you have remote employees, live near a border, or have any other reason for an employee to complete their work in a different state, there are certain rules set by the Department of Labor (DOL) and other federal and state agencies that you need to follow when handling payroll for those workers.

    A map of the U.S. for out-of-state employees with certain payroll requirements.

    Who is Considered an Out-of-State Employee?

    Identifying an out-of-state employee is pretty simple – it’s an individual whose primary work is completed outside of the state where your business is registered. However, the tax implications of out-of-state employees aren’t quite so simple.

    An employee’s resident state is where that person makes their permanent home. On the flip side, a nonresident state is any state where that employee commutes to or spends some time in for work. While it may be easy to assume that out-of-state employees live and work remotely in their resident state, that’s not necessarily the case. Any of the following workers count as an out-of-state employee.

    • Someone who lives and works in a state outside of your business’ registered state
    • Someone who lives in the same state as your business, but travels to and works in another
    • Someone who lives outside of your business’ state, but travels to a separate state and works there

    For example, let’s say your business is registered in Ohio and you have an employee who lives and works remotely in Florida. That individual is an out-of-state employee. However, let’s pretend that the employee lives right by the Ohio border and rents office space in the Buckeye state. In this case, the employee would technically be an in-state employee since he or she completes his or her primary work in Ohio, despite it not being the resident state. There’s also the case that if your employee lives in Ohio, but travels to and works in Michigan, that person is an out-of-state employee. 

    In general, an employee whose primary work is not in your business’ state is essentially an out-of-state worker. This makes it important to ask your employer where they perform the majority of their work – the answer will play a big role come tax time.

    Key Differences When Handling Payroll for Out-of-State Employees

    Once you’ve identified which of your employees qualify as out-of-state workers, it’s time to handle your payroll. When it comes to out-of-state employees, there are three big steps you need to take.

    Register with any necessary state tax agencies

    While your business is already registered in your home state, that’s not enough for employees in other states. You’ll need to register your business with the tax agency of every state where any official employees complete their primary work, whether that’s one additional state or several. 

    You’ll also need to check with that tax agency to see if you’ll also need to register with that state’s labor and unemployment agency. If not, that state government may come calling at some point, and they won’t be pleased.

    Follow the local laws of applicable states

    While you may understand all of your state’s laws regarding payroll policies, outside regulations can create a whole new challenge. There are several different pay and labor laws that can impact your out-of-state employees’ paychecks. As such, it’s important to make sure you look into several different areas to see if you need to modify your payroll.

    Minimum wage

    If you have out-of-state employees who make minimum wage, you’ll need to make sure that you don’t just follow your own state’s rate. For example, an out-of-state employee who works in Michigan is entitled to $9.65 an hour, so that person won’t be pleased if you pay them at Ohio’s $8.70 rate.

    Certain states also have special rules aside from flat rates or have plans to escalate rates over time. South Carolina has no state minimum wage law, but employers that fall under the Fair Labor Standards Act are required to use the federal rate of $7.25. New Jersey plans to increase its rate each year until it hits $15 per hour in 2026. If you have an employee in another state, you’ll need to pay close attention to the DOL’s updated list of minimum wage laws to make sure you don’t miss a special rule or accidentally get caught paying an old rate.

    Pay frequency

    Depending on where your employee works, he or she may have a different payday than the workers in your state. Certain states have set requirements on how often you should pay employees, while others give owners leeway into setting paydays, whether it’s weekly, monthly, or some other option. The DOL tracks each state’s payday requirements, including if employers need to provide written notice or seek permission for certain pay periods.

    Overtime

    There are states that simply observe the federal overtime rules, but others apply their own laws that can add an extra wrinkle to your payroll. Some states like California have daily overtime laws that kick in when employees work more than 12 hours in a day. Others may set different weekly hour requirements. In general, the DOL notes that if state and federal rules conflict with each other “the employee is entitled to overtime according to the higher standard.” Regardless, you’ll want to check with any applicable state labor office to get a definitive answer on your obligations.

    Workers’ compensation and disability insurance

    Like the other considerations, you’ll need to check with your employee’s state to see if it has any notable differences in purchasing workers’ compensation. Texas is the only state where workers’ compensation is optional, but other states can have some disparities from your local requirements. Some states, such as Ohio, require you to purchase insurance from a monopolistic state fund. Other states ramp up the penalties for not carrying workers’ compensation. Either way, check in with the official state organization to make sure your out-of-state employees are covered.

    There are also some locations that add some payroll requirements for disability insurance. Five total states require you to withhold state disability insurance from paychecks, which means you need to factor that into your calculations if you have an employee who works in the following places.

    • California
    • Hawaii
    • New Jersey
    • New York
    • Hawaii

    Paycheck delivery

    While the Fair Labor Standards Act (FLSA) requires that employers keep accurate records of every employee’s hours and wages, it does not require you to provide those employees with pay stubs. However, certain states have different standards for how employers need to deliver pay information. Depending on location, states may:

    • Have no requirements about providing pay information statements to employees.
    • Require employers to provide or furnish a statement of pay information that each employee can at least access electronically. The majority of states fall under this group.
    • Require employers to provide written or printed pay statements and give employees the ability to print electronic statements.
    • Give employees a chance to opt out of a paperless pay program and receive paper pay stubs.
    • Allow employees to opt-in to a paperless pay system if an employer wishes to offer one.

    In addition to paystubs, states can have differing rules on when you need to provide an employee’s final paycheck when he or she leaves or is terminated. As such, you’ll want to look up those terms if an out-of-state employee is no longer with your company.

    Withhold taxes based on your employee’s work location

    In addition to workers’ compensation, overtime, and other key considerations, withholding taxes plays a major part in managing payroll. Depending on where employees work, you may need to withhold state and local income taxes from their paychecks if it’s required in your employee’s city or county. 

    As you’d expect, your withholding responsibilities depend on where your employee works. Seven states don’t have income taxes or only have them on dividend and interest income. As such, you wouldn’t need to withhold income taxes for an out-of-state employee who works in Florida or any of the other six states. As a bonus, you also won’t need to register with the tax agencies for states where you don’t withhold income tax.

    There are also 16 states that require employers to withhold local taxes in addition to income taxes. As such, you’ll need to research and withhold both taxes from paycheck based on that state’s rates.

    Reciprocal states

    If that doesn’t sound tricky enough, some states have tax reciprocity. Essentially, reciprocal states have agreements in place with other specific states that allow employers to withhold taxes based on the state of residence instead of where an employee works. As such, an employee can give you a reciprocal withholding certificate if they wish to request you withhold taxes for their home state instead of the work state if both locations have an agreement in place.

    Here’s a breakdown of existing reciprocal tax agreements, listed by an employee’s home state in bold. (Note: People who work in the District of Columbia can live in any state) 

    • Illinois – Iowa, Kentucky, Michigan, Wisconsin
    • Indiana – Kentucky, Michigan, Ohio, Pennsylvania
    • Iowa – Illinois
    • Kentucky – Illinois, Indiana, Michigan, Ohio, Wisconsin, West Virginia
    • Maryland – District of Columbia, Kentucky, Maryland, Pennsylvania, West Virginia
    • Michigan – Illinois, Indiana, Kentucky, Minnesota, Ohio, Wisconsin
    • Minnesota – Michigan, North Dakota
    • Montana – North Dakota
    • New Jersey – Pennsylvania
    • North Dakota – Minnesota, Montana
    • Pennsylvania – Indiana, Maryland, New Jersey, Ohio, Virginia, West Virginia
    • Ohio – Indiana, Kentucky, Michigan, Pennsylvania, West Virginia
    • Virginia – District of Columbia, Kentucky, Maryland, Pennsylvania, West Virginia
    • Wisconsin – Illinois, Indiana, Kentucky, Michigan
    • West Virginia – Kentucky, Maryland, Ohio, Pennsylvania 

    Feeling Overwhelmed? Simplify Your Payroll with GMS

    Whether you need to plan for out-of-state employees or simply need to manage payroll for your in-state office, the process is a lot of hard work. There’s also the issue that even after investing a lot of time in payroll, a simple mistake or two can lead to upset employees and non-compliance issues with various federal and state agencies.

    If you’re fed up with the time and stress involved with managing payroll, GMS can help. As a PEO, our experts can manage your company’s payroll, decreasing your workload and liabilities so you can focus on growing your business instead of calculating paycheck deductions.

    Ready to free up your calendar while streamlining critical HR functions? Contact us today to talk to one of our experts about your company’s HR needs.

  • 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.

  • Like it or not, remote work is here to stay. In 2023, 12.7% of full-time employees were remote, and 28.2% were in a hybrid model, and those numbers are expected to increase in the coming years. With 98% of workers wanting to work remotely at least part of the time, all industries, specifically more remote-friendly roles and sectors such as administration and staffing, should expect a continued push for remote work. As the landscape of work continues to evolve, it’s crucial for employers to stay informed.

    Technological advances have made it easier for employers to provide work-from-home privileges to employees. However, this increase in remote and hybrid roles raises an important question: How does workers’ compensation apply to employers who work from home? Whether your employees are temporarily working from home or are full-time telecommuters, it’s your responsibility to understand exactly how workers’ compensation applies to remote employees and what steps you should take to protect yourself and your workers.

    Are Remote Employees Eligible For Workers’ Compensation?

    In short, yes. Even if your employers work from home or some other remote location, they are covered under workers’ compensation. A work-related injury is compensable under workers’ compensation regardless of where the injury occurs. In general, the courts found that hazards in a remote employee’s home also count as a work hazard if that person completes their duties in that space. This means employers are still responsible for providing a safe work environment, even if that environment is not on company property. However, workers’ compensation is designed to protect both employers and employees in these situations.

    It’s essential to understand that not every injury or illness suffered in a work-from-home space is automatically considered work-related. To be eligible for workers’ compensation, a remote employee must experience an injury or illness that “arises out of and in the course of employment,” which refers to the employee’s actions and the timing of the injury. These two details are crucial because remote employees must demonstrate that their injury or illness occurred while acting in their employers’ interests. Having a clear understanding of these criteria will empower you and your employees to confidently navigate the workers’ compensation process.

    Carpal tunnel syndrome is an easy example of an injury that could happen at home and would be covered by workers’ compensation. Repetitive injuries, brought on by excessive typing, occur in many desk workers, whether in the office or at home. Though you can offer ergonomic desk equipment to limit the chance of this happening, it does not guarantee the prevention of this syndrome. Therefore, workers’ compensation would still apply.

    How Can I Limit Workers’ Compensation Liability For Remote Employees?

    While you can’t monitor employees who work from home as closely, you can still take measures to limit work-related injuries and protect your business. This process begins by creating and implementing a detailed at-home work policy outlining remote work expectations. This policy should include general expectations and reporting procedures and offer safety guidelines for a home office or designated work area.

    Moreover, you can limit your liability through the following:

    • Defining core work hours and specific job duties for each employee: By providing your team with an established role, you ensure that every employee is equipped with the necessary training and knowledge, minimizing the likelihood of errors or accidents that could result in injuries. Setting core hours also aids in safeguarding against employee burnout and the risks associated with overworking.
    • Providing training on ergonomic workstations and safety measures: This involves training your team on workstations that can promote good posture, reduce strain, and enhance overall well-being. In addition, it includes educating them on essential safety practices to prevent workplace-related injuries, specifically in a home environment. In most cases, injuries from slips, trips, and falls at home are covered in workers’ compensation, so stay vigilant and train your team.
    • Conducting periodic home office checks: When appropriate, reviewing an employee’s remote office can help identify and eliminate work area safety hazards. This doesn’t mean barging into an employee’s home unannounced; instead, it should be offered as a safety initiative employees can opt into.
    • Setting fixed meal and rest periods: Establish fixed meals and breaks outside of core hours, specifically for telecommuters. If an incident does occur, these defined hours can help determine whether an injury was “in the course of” employment.
    • Requiring homeowner’s or renter’s insurance: Most employees will already have this but making it a requirement for remote privileges can help cover any potential equipment damage or liability if anything happens in their home. Be sure to review said insurance to ensure all contingencies are covered.

    It’s also important to note that states can have differing laws about what constitutes a work-related injury. These laws can shift over time, so try to keep up to date with your state’s rules and regulations to help keep your workers safe and protect your business against improper claims.

    Employee Safety With GMS

    Every year, U.S. businesses suffer the consequences of workplace injuries. Not only do these injuries result in lost time, but safety violations can and will lead to costly fines. Ensure your team has the tools they need to succeed while creating a culture of safety. Professional employer organizations (PEOs), like GMS, can help you take a proactive approach to workplace safety.

    Want to take the appropriate steps to stay current on labor regulations and protect your business? Contact GMS today to talk to one of our experts about professional risk management and other workplace safety issues.

  • 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.