Most employers are required to carry state or private workers’ compensation insurance to provide benefits for an employee who experiences a work-related injury or illness. Workers’ Compensation insurance is meant to protect both employees and employers from unexpected out-of-pocket expenses and losses. Benefits may include compensation for medical treatments, funeral expenses, lost wages, and disability payments.
When an employee is injured on the job and files a workers’ compensation claim, it’s essential for employers to handle the situation with care and in full compliance with the law. Well-intentioned decisions can be misinterpreted as discriminatory if they aren’t handled properly. Even the appearance of retaliating against an employee because of a workers’ compensation claim can open your business up to serious legal risks.
5 Things to Avoid with an Employee Who Has an Active Worker’s Compensation Claim
In addition to damaging morale, failing to handle workers’ compensation claims properly can put your business at risk of an expensive lawsuit. This is because workers have a right to file for benefits after a workplace injury, and employers have a legal obligation to treat them fairly and without retaliation. To help you stay compliant with workers’ compensation laws and avoid potential legal issues, here are five examples of workers’ compensation discrimination that can lead to lawsuits against an employer.
- Firing an employee while they have an open workers’ compensation claim.
Terminating an employee for filing or having a pending workers’ comp claim can be seen as retaliatory and is illegal in many states.
- Refusing to rehire or accommodate an injured worker after recovery.
If an employee is medically cleared to return to work with or without reasonable accommodations, refusing to reinstate them may be considered discrimination.
- Reducing hours or demoting an employee after filing a claim.
Intentionally cutting hours, reassigning to a less desirable position, or demoting the worker as a result of their injury or claim can be grounds for retaliation claims.
- Harassing or retaliating against a worker with a claim.
Mocking, isolating, or otherwise harassing an employee because they filed a claim or are on modified duty can constitute discrimination and may lead to a hostile work environment claim.
- Discouraging employees from filing workers’ comp claims or threatening consequences.
Telling employees they’ll be punished, lose hours, or face termination for filing a claim violates workers’ rights and can lead to legal action.
How to Create a Safe Workplace and Stay Compliant with Workers’ Compensation Regulations
One of the most important ways employers can protect themselves and their employees is to create a safe working environment. A safe work environment reduces the risk of work-related injuries and illnesses, which can prevent workers’ compensation claims. Here are several ways employers can create a safe workplace and stay compliant with workers’ compensation regulations:
- Offer Safety & Emergency Preparedness Training
Training your employees on how to stay safe on the job and what to do in case of an emergency, not only reduces their risk of injury, but can also decrease workers’ compensation claims.
- Review Your Workers’ Compensation Policy
Conducting an annual review of your workers’ compensation policy is important to ensure that it is still meeting the needs of your business and satisfies legal requirements in your state.
- Post a Notice of Compliance
Posting a notice of compliance with workers’ compensation laws can provide employees with the information they need to share with health care providers if an accident occurs.
- Conduct Safety Inspections
Safety inspections are an opportunity to identify and fix safety hazards in your workplace before they cause an accident. According to OSHA, workplace safety inspections should be completed every six months.
- Provide Personal Protective Equipment (PPE)
Provide all required and recommended PPE for your industry, and train employees on how to use it to help prevent injuries.
- Encourage Early Reporting
Encourage and facilitate early reporting of any injuries or illnesses that do occur as faster treatment can sometimes prevent more serious injuries.
If an injury occurs:
- Respond Appropriately
Managers should be trained to respond appropriately to a workplace injury. Less serious injuries may be treatable with items from a first-aid kit, while an ambulance may need to be called for more severe injuries.
- Comply with Workers’ Compensation Board Requests
When a workplace illness or injury is reported, the state’s workers’ compensation board may contact your business for information about the employee and your account of their injury or illness. It’s important to provide the board with accurate information in a timely manner to prevent delays in claim processing.
- Report the Injury
In some states, employers must file a “report of injury” if their injured worker requires medical care beyond first aid or if they need more than two treatments from a doctor. All employers are required to notify OSHA when an employee is killed on the job or suffers a work-related hospitalization, amputation, or loss of an eye.
Employers May Face Penalties for Not Following Workers’ Compensation Rules
If your state requires workers’ compensation insurance and your business fails to secure it, or you’re accused of committing workers’ compensation fraud, or discrimination; your business could face serious consequences, including:
- Fines: The state decides how much you’ll pay for not having workers’ compensation coverage, and the longer you go without coverage, the more you could owe.
- Criminal charges: You could be charged with a crime for not providing your employees with the insurance they’re legally owed.
- Lawsuits seeking compensation for losses: If a worker gets hurt or sick on the job, and you do not have appropriate worker’s compensation insurance, they could sue you to recover damages for their injuries.
- Discrimination lawsuits: If an employee believes they have been discriminated against after filing a workers’ compensation claim, you could face an employment discrimination lawsuit.
Seay HR Can Help with Compliance
Seay HR provides a broad range of HR services designed to support your business’s growth and ensure compliance with all state and federal employer regulations. From wage and hour analysis to conflict resolution, and more, our team is here to help you in every aspect of human resources so you can get on with running your business.
Contact us today to learn more about how we can help protect your business by ensuring compliance with all worker’s compensation regulations.
Please note: This article is for informational purposes only and does not constitute legal or professional advice. Seay Management Consultants makes no representations or warranties, express or implied, regarding the accuracy, completeness, or applicability of the information contained herein.
Seay Management Consultants disclaims all liability for any actions taken or not taken based on the information in this article. Readers are solely responsible for their own interpretation and use of this information.
