Moore: Light-Duty Return-to-Work Issues

Friday, October 29, 2021 | 0

I attended and took notes on a National Workers' Compensation and Disability Conference breakout session in Las Vegas concerning light-duty return to work.   This was a good basic session from two national employers. One of the challenges, as we all know, is each state is unto itself in workers' comp, including light-duty return to work after a job injury.

James Moore

This session involved a ton of forms. I recommended obtaining the slides. They are free and open to the general public. You may run out of time. I am not sure how long they will be up on the website.

The session description:

During the COVID pandemic, light-duty work for injured workers has been a challenge for many employers. In this session, you’ll learn strategies to locate light-duty work within your organization and review alternative light-duty options you can bring on-site. You will also pick up the tools to write a successful return-to-work policy that incorporates on-site and off-site transitional light-duty opportunities. Roto Rooter, a large national plumbing company, will review how their company struggled with RTW and the changes they implemented internally to accommodate almost 99% of their field employees' work restrictions. Presenters will share case studies showing the impact early RTW has on your workers’ compensation premiums.

I liked the angle that the presenters had. They both had to deal with multiple states, likely all 50.

Light-duty issues

There is a 0% chance of returning someone to work after they have been out for two years or longer. I agree with that one totally. I think the needle has moved closer to 18 months nowadays.

Both presenters covered the 1.0 mod conundrum. If you have above a 1.0 mod, you may be left out of bidding on many projects. Governmental organization risk managers look at mods very extensively. The contractor may want you to add them on as an additional insured.

Some of the great light-duty RTW recommendations were:

• Include on-site and off-site alternatives.
• Specify the duration.
• Ability to change job aspects.
• Specifics on temporary light-duty assignment.
• Return-to-work committee.
• A sample light-duty RTW policy is in the slides.
• Job analysis, formerly called Job Bank.

The one unique area the presenters covered involved on-site or off-site light-duty work for nonprofit organizations. The light-duty offer letter cannot be general; it must be specific.

The states that require physician approval include Colorado, Georgia, North Carolina, Oregon and Washington.

Do not forget the Centers for Disease Control and Prevention's requirements in the job letter.

A nationwide comparison of reserves:

• $4,568.93 with light-duty RTW job.
• $21,625.50 without.

Those two numbers were startling. I had performed two massive studies between claims without a return-to-work program and with an RTW program including light duty.  Employers with RTW programs cut their reserves by 75%. Dividing out the two numbers above comes close to that figure.

I wrote the Six Keys to Workers' Comp Savings manual in the 1990s. Some things never change.

This blog post is provided by James Moore, AIC, MBA, ChFC, ARM, and is republished with permission from J&L Risk Management Consultants. Visit the full website at www.cutcompcosts.com.