Samuel Hale Launches PEO Using ADR Carve-Out

Tuesday, January 14, 2020 | 0

Samuel Hale announced the launch of a professional employer organization program in California using an alternative dispute resolution process it says “can save over 50% on overall claims costs.”

Mike DiManno

Workers’ compensation savings from the Patriot program can also help employers reduce their experience rating modifications, the company said. Samuel Hale said it welcomes businesses of all sizes struggling with high X-mods or claims costs, and said the program is ideal for employers in light industrial temp staffing, warehousing and restaurant industries.

“ADR accelerates the claims process and supports an employer's ability to manage the overall costs of their workers' compensation program,” Samuel Hale said in October. “This process advocates for the employee while expediting medical treatment and mitigating litigation liability.”

Carve-out programs allow employers and unions to create alternatives to the workers’ compensation system through a collective bargaining agreement, according to the website for the Division of Workers’ Compensation. The administrative director approves all carve-out programs.

In 2016, the division approved a carve-out agreement under Labor Code Section 3201.7 between Vforce Skilled Trades LLC and United Food and Commercial Workers International Union 8. The division’s website lists Samuel Hale LLC as the employer for the agreement.

The agreement spells out the requirements for the program, including the process to resolve disputed claims, which starts with an ombudsman, proceeds to mediation and, if necessary, arbitration.

In a separate statement released in October, Samuel Hale said its carve-out program has reduced comp costs by 50% to 80% in the light industrial, manufacturing and staffing industries.

“The program is highly effective for accounts that are struggling with cumulative trauma claims, large reserves and post-termination litigation,” Samuel Hale CEO and founder Mike DiManno said.

DiManno is also the president of Vforce Skilled Trades.