Tag Archives: Workers’ compensation

Workers’ Comp: What’s My “Mod”?

images(Post by Rick Dacri, April 14, 2016)

When discussing your workers’ compensation premiums, you’ll often hear about the importance of reducing your “mod.” But what is a mod? Your “mod” is your Experience Modification Rating. It is the number used by your insurance company to gauge both the past cost of injuries and the future chance of your risk of additional injuries. The lower the mod, the lower your workers’ comp premiums.

Here is a quick way of looking at it. Ask your insurance carrier what your mod is. If your experience mod is 1.00, you’re doing OK. If it is less than 1.00, that’s great and obviously desirable You’re saving money and running a safe operation. If it is greater than 1.00, you’ve got work to do, as this is costing you.

As an example, if your mod is .90, than you are 10% below your industry standard. If you are at 1.10, you are 10% above the industry standard. In the former case, your premiums will begin to drop. In the latter, you will find you are in a “penalty phase” in you rates will go up.

If you don’t know what your current experience modification rating is, contact your insurance carrier to find out.  If you need help reducing it, call me.

Other Posts you might want to read:

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Workers’ Comp Fraud, The Red Flags

flag(Post written by Rick Dacri, March 16, 2016)

I received a call from a client bemoaning the fact that one of his “problem employees” was now claiming he hurt his back moving a box. The client is sure that it is fraud, because the day prior, this same employee was put on final warning for absenteeism.

Fraudulent workers’ comp claims can run havoc with any manager and company. While the actual amount of fraud in the system is relatively low (1%-5% of claims), it is still quite costly…and they make managers crazy.

Let’s talk about some of the warning signs that you and your supervisors should watch for. Continue reading

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NEW How To Make Managing Easy Webinar Series

This program has been postponed

Answers to

Complex Workplace Issues Managers Struggle With new 2

 Five, 60-Minute Webinars

Begins Wednesday, April 20 @ 2PM ET

Ask any manager what’s the hardest part of their job and you’ll hear the same thing: “Managing People!”

Not the technical aspects of their job, not the budgeting, or even the dealing with customers. It’s the people aspect of it. Managing people is just plain hard.

And it is. You can read a lot of articles and books discussing the theory of management, but when you’re face to face with an employee, theory, fads and the latest gimmicks go flying out the window, so you better really know what to do.

For over 25 years I’ve advised managers and supervisors on what to do and say when faced with an employee. I’ve always provided practical, understandable and uncomplicated techniques designed to deal with the situation, making the job as a manager easier and ultimately making managers better at their jobs. And it works. I know because managers repeatedly tell me I’ve helped. And I even wrote a book about it, which you can get.

I know that when you understand what you have to do, how to do it and what to say (and not say) to your employees, you can ultimately improve overall performance, solve problems, and make your job as a manager easier. And that’s what this webinar series is all about.

  • Manage your people well, and they become happier and more productive.
  • Manage your people poorly, and performance tanks and your life is miserable.

In these 5, information packed webinars, I’ll show you how making a few essential changes and improvements to how you manage will vastly increase your effectiveness as a manager.

The 5 webinars in the “How To Make Managing Easy” series include:

  1. How to Quickly Cut Your Workers’ Compensation Costs April 20 @ 2PM

Includes role of supervisor in controlling cost; 7 steps to reduce W/C costs; spotting & preventing fraud; creating a post-injury response program; managing claims; benefits of light duty; developing a relationship with a medical provider and insurer; getting employees to return to work; and more

 

2.How to Deal with Substance Abuse & Use May 4 @ 2PM

Includes awareness of issue; performance versus diagnosis; medical marijuana; drug testing; reasonable suspicion rules; DOT requirements; drug free policies; role of supervisor; and more

 

3. How to Control Ten Difficult Conversations May 18 @ 2PM

Includes scripts/talking points; 11 steps to stress free conversations; handling emotional employees; topics: absenteeism/tardiness; poor performance; inappropriate dress; insubordination; raise in pay denial; and more

 

4. How to Discipline, Terminate & Win at Unemployment June 2 @2PM

Includes scripts/talking points; differences between discipline, counseling, coaching; lay off vs. firing vs. quitting; airtight documentation; what disqualifies an employee from collecting; how to lose an unemployment claim; what happens at a hearing; and more

5. How To Create a Respectful Work Culture June 15 @ 2PM

Includes the warning signs for discrimination, harassment & bullying; what managers & supervisors must do to foster a respectful culture; how to model respectful behaviors;  scripts/talking points when talking to an alleged victim; requirements under the law; investigating a claim; addressing “he said/she said;” and more

 Here’s what you’ll learn from these 5 webinars:

  • How to quickly spot, understand and manage employee issues
  • How to confront problem employees & resolve tough issues, including attitude, performance and behavior
  • How to provide honest feedback
  • What the words you should use (“the script”) when talking to an employee
  • How to avoid stepping on a legal landmine
  • What systems and polices must you have in place & what should they include
  • What can you expect at an unemployment hearing & how you should respond
  • How to spot and address workers’ compensation fraud
  • How to handle an employee who threatens to sue
  • What to do if you suspect an employee has been drinking
  • And much, much more

Each 60-minute webinar is filled with real life examples and scripts to follow. Prior to each session and right after, you will be able to call or email me with your specific questions and feedback.

Total Cost? $125 for each individual webinar or $500 for all five, a $125 savings (20% off).

Clients of Dacri & Associates enjoy an additional 10% off. Not a bad investment for something that will dramatically make a difference in how you manage.

And yes, you can sign up for 1 or 2 or all 5 webinars if you want.

I hope you’ll join us.

Each webinar will be limited to the first 25 who sign up. They will be approximately 60 minutes in length.

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To register, call me at 207-229-5954 or email me at rick@dacri.com.

Rick Dacri Photo

Rick Dacri

 Rick

President

Dacri & Associates, LLC

207-229-5954 (Cell)

rick@dacri.com

www.dacri.com

 

P.S. Can’t make it to the live sessions? No problem, go ahead and sign up anyway. I will be recording (audio and visual) each session and each registrant will receive a link to the recording within 24 hours after the session is over.

P.P.S. Be one of the first three to sign up and I’ll send you a copy of my book Uncomplicating Management.How To Make Managing Easy

Uncomplicating Management

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Workers’ Compensation Record Retention

Posted by Rick Dacri, May 14, 2014

imagesThis question came in from one of my HR HelpLine clients in Massachusetts.

Question: How long must I retain workers compensation records for employees?

Expert Advice: Here is the information that I can share with you on record retention for Workers Compensation documents. It looks like 3 years is the rule from both an FMLA and a Workers Compensation perspective. As a best practice employers typically keep any documentation for a current employee as long as the employee remains an active employee irrespective of the three year requirement.

Medical History Items and Forms: One to Three Years
(Recommendation: Keep all medical records at least three years.)

Results of employment-related medical exam.

· Proof of compliance with government mandated tests, vaccinations.
· Copies of health-benefit enrollment forms.
· Workers’ Compensation claim records and injury reports.
· Physician statements for sick absences.
· Drug test results.
· Medical documentation for FMLA and ADA, including initial requests and compliance data.
· Acknowledgement of location of Workers’
· Compensation Board.
· Emergency medical information.
(Note: Keep OSHA records for five years after an accident, or job tenure plus thirty years if the individual is exposed to toxic substances.)

FMLA

§ 825.500 Recordkeeping requirements

(b) No particular order or form of records is required. These regulations establish no requirement that any employer revise its computerized payroll or personnel records systems to comply. However, employers must keep the records specified by these regulations for no less than three years and make them available for inspection, copying, and transcription by representatives of the Department of Labor upon request. The records may be maintained and preserved on microfilm or other basic source document of an automated data processing memory provided that adequate projection or viewing equipment is available, that the reproductions are clear and identifiable by date or pay period, and that extensions or transcriptions of the information required herein can be and are made available upon request. Records kept in computer form must be made available for transcription or copying.

There wasn’t any specific time frame from a Massachusetts stand point for retaining records but Continue reading

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Avoiding Legal Pitfalls (Webinar)

hammer1(This webinar, which you can listen to now, was presented by Rick Dacri, originally on September 17, 2013)

Managing people effectively is a major challenge for every manager. In this webinar, you will learn how to address 5 critical performance and compliance issues faced by nearly all managers—giving you the confidence and knowledge to immediately apply these new skills.

Specifically, you will learn

  1. How to hire right
  2. How to control and reduce workers’ compensation costs
  3. How to deal with alcohol & drugs in the workplace
  4. How to prevent FMLA abuse

This webinar will last approximately 60 minutes. To watch and listen, click webinar.

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Simple Formula For Increasing Sales and Profits

images(Posted by Rick Dacri and originally published in the York County Coast Star)

Watching people connect in the workplace will tell you a lot about a company. In over 25 yeas in business, I have found that by observing how people interact, one quickly understands how a company operates, its effectiveness and its level of employee engagement.

One of the perks of being a management consultant is the opportunity to visit literally hundreds of different organizations. I always try to arrive at scheduled appointments early. The condition of the facility, the initial greeting by the receptionist, and the interplay of employees provide me a wealth of information about the organization’s culture. Am I greeted with a smile or am I another intrusion? Are employees talking with one another, engaged and animated or disinterested and frustrated? Is the “feel” of the organization warm or cold?

You can get that same read in a restaurant. My wife and I frequent the many fine area establishments. We both watch for how we are treated by the host and our server. The chef can make a fabulous meal, but it is the host and server that make the experience—and they will determine whether or not we return. We expect a smile; a cheerful and helpful attitude; quick and knowledgeable responses to questions and requests; and a willingness to do whatever it takes to make our experience positive. When that happens we return – frequently. And we also tell our friends.  Engaged workers engage their customers and engaged customers buy.

Gallop recently released their annual poll on employee engagement (2013 State of the American Workplace Report) and the results are not good. Only 30% of the approximately 100 million people in America who hold full time jobs are inspired and engaged at work; 20% are actively disengaged; and half are not engaged at all. In other words, 7 in 10 workers are either simply showing up or are actively sabotaging their companies. It gets worse. Only 41% of employees feel they know what their company stands for and what makes it different from the competition. And of these workers, “Millennials”, those born between 1980 and 1994, are likely to quit their jobs in the next 12 months if the economy continues to improve. Finally, service workers, those employees with the most direct contact with the customer, are the least engaged of all workers. Imagine – customer service reps, bank tellers, sales clerks, wait staff, call center reps – those individuals who have the greatest daily customer contact, those employees upon whom employers depend to take care of the customer; the very face of the organization, are the least engaged. Remember, disengaged workers directly impact the company’s bottom line. The CEO may set the goals and direction of the business, but it is these workers who determine whether it reaches them or not.

The news is not all bad. While the national statistics are damning, organizations are not condemned to follow. Great organizations have engaged workers, but they must first have engaged managers and supervisors. Studies show that without them, a committed workforce is nearly impossible.

Great managers create engaged workers and when that occurs, organizations enjoy significantly higher productivity, profitability, customer satisfaction, less turnover and absenteeism, and even fewer on-the-job accidents. Gallop even found that organizations with an average of 9.3 engaged employees to every actively disengaged employee experienced 147% higher earnings per share compared to their competition. You can take that to the bank, literally.

The best organizations are lead by and with strong managers who demand excellence from their staff. These managers set high standards and mirror it in their own behavior. Successful organizations hold their managers accountable for their department and staff’s performance. Every employee, manager and non-manager must buy into the company’s philosophy or they must go. The evidence is clear. When all employees are willing to do whatever is takes to make the company successful; embrace the direction of the firm; and value their customers, then success follows. And it all hinges on good management. It is that simple.

The formula for success is not complicated. It may take hard work to achieve and investment in their people, but the benefits are huge.

Customers know. Whether they’re shopping at the local store, purchasing a car, ordering dinner or calling customer service, they quickly realize the level of engagement by the employee with whom they interact. That singular exchange will often determine whether they buy or not and whether they’ll ever return to buy again. Organizations will likely have engaged customers when they have strong management and engaged workers, and engaged workers means higher sales and greater profits.

Other posts you may want to read (click to read):

  1. Where Has Company Loyalty Gone?
  2. Costly Turnover Can be Controlled
  3. Employees Providing Great Customer Service?

If you want to know more about how I can help you, click here: Dacri & Associates, LLC

 

 

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EPLI: Quick Hits In Employment Practices Liability Insurance

images(This guest post was written By Scott Simmonds, CPCU, ARM; July 18, 2013)

Hopefully your insurance agent has talked to you about employment practices liability insurance (EPLI). It’s the insurance protection against the financial consequences of job applicants, employees, and former employees who bring suit for discrimination, harassment, wrongful termination, failure to hire, and other workplace torts.

Here’s a partial list of issues your insurance agent may not have told you:

Dollar Limits of Coverage – The coverage limit usually includes the cost of defense. So, as you pay your attorney, the policy uses up the limit of coverage available to pay any award or settlement. Limits are also expressed as an aggregate for the total of all claims in a year. Buy enough insurance.

Sharing Limits – Having EPLI with your directors and officers insurance may be convenient.  It may not be a good idea though. Your directors will not want to hear that EPLI claims have eaten away at the limits available for D&O claims.  Ask your insurance agent if your policy separates claims for D&O and EPLI into separate “buckets” of coverage.

Low Deductibles – Low deductibles cost you premium dollars. Get quotes for higher deductibles to help pay for higher limits of coverage.

Definition of Harassment – Some policies still only cover “Sexual Harassment.” What about harassment based on race, ethnicity, disability. The policy should provide coverage for harassment, including sexual harassment.

Retaliation – Be sure your policy includes coverage for suits alleging that you have retaliated against an employee.

Choice of Attorney – Do you pick your attorney or does your insurance company? Using their attorney may be cheaper.  Is it what you want though?

Common Exclusions – Like all insurance policies there are exclusions:

-Workers’ compensation claims

-ERISA actions

-Employment wage disputes (Fair Labor Standards Act)

-Unemployment Insurance

-Disability benefits law

-National Labor Relations Act

-Occupational Safety and Health Act

Several insurers are now offering low-cost EPLI insurance as part of the workers’ compensation policy.  Talk with your insurance agent.  Is it time for a detailed review of your insurance?

Need more information about EPLI, contact Scott Simmonds.  Scott is an unbiased insurance consultant who offers insurance advice and coverage reviews without the conflict of insurance sales and commission payments.

Other posts you may want to read:

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