Tips to Avoid Work-Place Injuries

Depending on what industry you work in, you will be worried about different types of work-place injuries. For example, if you primarily do clerical work then you are probably worried more about ergonomics or back strain from lifting office supplies; if you work as a nurse you might be worried about getting pricked by a needle; and if you work as a construction worker you may be worried about falling from a roof, scaffolding, or type of machinery.  

In addition to the tips below, your broker or workers’ compensation insurance carrier would also be able to provide you with industry-specific safety pamphlets and tips to hand out to your employees.

Tips for Employees (http://www.workers-comp-news.com/preventing.php)

• While working at a computer, sit with your knees at a 90- to 120-degree angle. Using an angled foot rest can help reduce back strain.
• Make sure your chair fits correctly and is ergonomically designed.
• When lifting heavy or awkward items, life with your knees not with your back. Always bend your hips and knees and squat to pick a heavy object while keeping your back straight and holding the object close to your body.
• Don't twist your body while lifting.
• If you must sit for long periods, take frequent breaks to stretch.
• Exercise regularly, focusing on strength and flexibility.
• Change tools and/or equipment. For example, use tools with extension handles that let you stand up rather than stooping.
• To reduce the amount of overhead work you must do, use a lift to raise yourself so you are closer to the work.
• When you pick up or set down a load, don't reach more than 10 inches away from your body.
• Lift any load using a solid two-handed grip
• Use ergonomically designed tools that are designed to fit the hand and body and the job.
• Avoid overexertion. Many injuries at work occur when employees are tired or strained. Don't overdo it because you could suffer an injury. Instead, give your body and your mind time to rest and recover.
• Report any unsafe conditions immediately to a supervisor. If your employer doesn't do anything to fix the hazardous condition, take your concerns to the Occupational Safety and Health Administration (OSHA) or another government agency.

Tips for Employers (http://www.workers-comp-news.com/preventing.php)

• Adopt and enforce safety procedures. OSHA requires employers to follow certain safety procedures, but companies should also develop additional safety rules for their workplaces and their employees.
• Provide adequate safety training for workers and review safety policies with employees on a regular basis.
• Ensure that spills and other potential hazards are cleaned up immediately.
• Do not allow employees to continue working if they are tired or in danger of overexertion because this is a clear recipe for accidents and injuries.
• Ensure that anyone who is operating power equipment or handling hazardous materials has received adequate training on how to use these tools and materials. It's also important that employees know what to do in an emergency.
• Involve employees in the creation of health and safety policies. In addition, listen to workers concerns about unsafe conditions and potentially hazardous processes.
• Correct employees and supervisors who are not following safety procedures
• Create a safety checklist that includes all potential hazards in your workplace.
• Understand the role that ergonomics can play in preventing workplace injuries and reducing repetitive motion disorders.

What is a certificate of insurance (COI) and why am I being asked to provide one?

A certificate of insurance is a document issued by an insurance company/broker that is used to verify the existence of insurance coverage under specific conditions granted to listed individuals. More specifically, the document lists the effective date of the policy, the type of insurance coverage purchased, and the types and dollar amount of applicable liability (Definition from Investopedia).

If you are being contracted to perform a job (i.e. construction, plumbing, etc.) you may be asked to provide a certificate of insurance. This will prove to your client that you are covered in the event of an incident or claim. Depending on the type of job you are providing, the client will ask for proof of various policies. The two most common policies that are required are General Liability Insurance and Workers’ Compensation Insurance. Proof of General Liability will show that you are insured in case any damages arise from the work you provided to the client. The client is interested in Workers’ Compensation insurance in case any of your employees are hurt on the job on their property.

In addition to a certificate of insurance, you may also be asked for various endorsements including Additional Insured (AI), Waiver of Subrogation, Loss Payee, just to name a few. Additional Insured endorsements are the most common; a client may ask to be “named as additional insured”. This means that the company you are working for will be covered in the event of a claim occurring from your work. Insurance carriers can either provide a Blanket Additional Insured endorsement, which covers any client noted on a certificate of insurance, or a Specific Additional Insured endorsement, which will name the specific company on the endorsement itself.

Are PEO’s Financially Beneficial for Small and Mid-sized Businesses?

In today’s economy everyone is focused on price vs. value and getting the most of their money; A decade ago, PEO’s were more focused on their HR services than the pricing. PEO’s have had to adapt to this change and have found a way to make programs much more affordable.

Here is an explanation of what a PEO actually is and what it can offer:

A PEO offers a bundled program that may include payroll processing, workers compensation insurance, complete HR services, payroll tax collecting and reporting, group health insurance, risk management, and comprehensive legal compliance. To utilize a PEO program, the PEO must process your payroll and provide your workers compensation insurance, all other services (as listed above) can be used at your discretion.  

You are probably thinking to yourself, how can a PEO be competitive in today’s market with all of these extra services provided? That is a great question because traditionally a business is only going to endure costs for what is required or necessary. Surprisingly enough, PEO’s can provide a wide variety of these combined services for less or equal to the premium you pay for workers compensation alone. These programs come in handy for mid-sized companies who have employees who are focused on processing payroll and providing HR services when they can be utilized in other departments that may be more vital to your business.

Another great perk you get with a PEO program is you have NO AUDITS at the end of the year. Since you are processing your payroll with the same company that is providing you your workers compensation insurance, you are paying as you go so there is no need for an audit. This takes away the added stress of owing more money at the end of the year. PEO’s generally do not charge down payments or deposit as well! A PEO program stands by the fact that they can truly allow the client/business to focus on what they do best which is the trade they specialize in and allows the PEO to take care of the rest.

Employee vs. Independent Contractor

Do I have to pay Workers Comp if they are properly classified as a 1099?

As most business owners know, they can hire people in two ways, either as an independent contractor (otherwise known as a 1099) or as an employee.

Employers oftentimes improperly classify their employees as independent contractors for financial benefits such as dodging payroll taxes, avoiding minimum wage requirements, overtime, or rest break rules, and by avoiding reimbursing expenses for performing certain jobs. One of the most common reasons employers label a worker as an Independent Contractor instead of an employee is to avoid covering an employee under “workers’ compensation insurance”. How a worker is classified determines the employer’s responsibility under the Fair Labor Standards Act. Due to the rising misuse of classifying workers as independent contractors, the IRS has stepped up the enforcement of the Fair Labor Standards Act and have developed a 20 point test to determine an employment relationship vs. an independent contractor relationship. Follow this link to review the 20 factors on how to evaluate your worker and their classification.

There is no set definition of the term “independent contractor” but here are some points that might help you distinguish what type of worker you have:

-       Independent Contractors are considered to be self-employed and subject to “self employment taxes.”

-       Independent Contractors control the manner and means by which contracted services, products, or results are achieved. The more control a company has over an employee and how their work is performed, the more likely the workers are employees, not independent contractors.

Here are some factors to consider when comparing a 1099 to an employee (given from the Department of Industrial Relations):

1. Whether the person performing services is engaged in an occupation or business distinct from that of the principal

2. Whether or not the work is a part of the regular business of the principal/alleged employer

3. Whether the principal or the worker supplies the instrumentality, tools, and the work space

4. The alleged employee’s investment in the equipment or materials required by his or her task or his or her employment of helpers

5. Whether the service rendered requires a special skill

6. The kind of occupation, with reference to whether, in the locality, the work is usually done under the direction of the principal or by a specialist without supervision

7. The alleged employee’s opportunity for profit or loss depending on his or her managerial skill

8. The length of time for which the services are to be performed

9. The degree of permanence of the working relationship
10. The method of payment, whether by time or by the job
 

Do I owe workers compensation premium on independent contractors?

This question can be answered on a case by case basis; it depends on the situation of the worker’s employment and the job that is being performed.

Most carriers will ask for proof of workers compensation from the independent contractor. If the 1099 does not have any employees then they are not required to have workers compensation insurance. In that case the carrier will ask for proof of payment or paycheck stubs from two or more other sources of income.  If you have provided proper documentation and both the IRS and your insurance carrier deems your worker as an independent contractor then that worker does not need to be included on your workers compensation coverage.

Be sure to check with an insurance broker on how your current workers compensation carrier classifies independent contractors. If your carrier deems your 1099 as an employee, they will bill you premium on every cent you paid to the worker for the length the policy was active.

Here is another web site to help guide you in the right direction.

http://www.irs.gov/newsroom/article/0,,id=173423,00.html

Or if you have any further questions and would like to speak with someone directly, contact us at (818) 735-7600.

Workers Comp Audits and 1099’s

Workers Compensation insurance companies are always out to collect premium on your 1099’s. Make sure to keep an eye out on a few key things, listed below. 

• 1099 Independent Contractors must have at least two sources of income other than your business. 
• 1099’s should have their own General Liability Insurance Policy.
• They also must carrying their own license to perform the service (if applicable). 

If you can prove that all three of the above items are applicable to each of your 1099 independent contractors during the annual audit, it will be a breeze. 

If have any questions regarding an audit or if you need assistance with your business insurance workers compensation audit, please feel free to contact us at 818-735-7600