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July 2017

Jul 07
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Retaliation in the Workplace

By Your Employee Matters

In Smith v. Hy-Vee, Inc., Drew Smith brought sexual harassment and retaliation claims due to conduct caused by Sheri Lynch, a tech cake decorator, who engaged in rude, vulgar, and sexually charged behavior toward Smith, and apparently all the other employees. The court stated that since Lynch did not seem to be “sexually motivated” toward Smith or any of the other employees, but simply out of control with all of them, there was no sexual harassment.

The issue in the case, however, was whether or not Smith had a reasonable belief that it was against the law and if the company retaliated against her because of her complaints. The court ruled that because she had to show the “good faith” nature of her belief, the facts from the underlying claim would be admissible at the retaliation trial. (What lawyers call having to “try a case within the case.”)

This case carries two lessons for employers:

If the crazy facts in this case are even slightly true, how did an employee like Sheri Lynch stay employed at Hy-Vee? Smith stated she reported incidents of harassment to at least 12 different managers and co-workers, making 66 to 101 complaints to management. Interestingly, Hy-Vee denies Smith ever complained. The company claimed that there were a number of incidents in which Smith herself did not act appropriately or questioned the authority of supervisors. She was also written up for making mistakes in cake and bagel orders during her final weeks of employment.

Although rude, vulgar, and obnoxious bosses might not end up generating a harassment or discrimination claim, they easily can trigger a legitimate retaliation case and expensive litigation. (Think about it — thousands of dollars in lawyers’ fees over cakes and bagels.) Remember that when employees bring these underlying complaints, they don’t have to use magic words like “harassment,” “discrimination,” or “retaliation” in order to trigger protection.

Jul 07
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7 Tips to Share Workplace Concerns With Management

By Your Employee Matters

Sharing concerns with your manager at work can be intimidating, but you may need to talk about a difficult project, challenging co-worker, mistake you made, personal problem or other issue. Learn how to share workplace concerns with management in a way that ensures you are heard and doesn’t jeopardize your job.

Consider solutions not just the problem.

Would you like to change an unfair policy, correct a mistake you made or address the annoying personality of a co-worker? In addition to sharing your concern, offer solutions that improve the company and show that you’re a team player.

Prepare yourself.

Before your meeting, write down what you want to say. You can even prepare a cheat sheet to reference during your meeting if necessary.

Time the conversation wisely.

Instead of squeezing in a conversation before a meeting, at the end of the day or when your boss is walking out the door for the weekend, make an appointment. You’ll have your boss’s full attention and improve your chances of getting the issue resolved. Also, if possible, choose a time of day when you both are fresh and able to think clearly and calmly.

Maintain Professionalism

Even if the situation is emotional, do your best to remain professional, focus on facts, stay objective and avoid name calling or blaming others. Take time to calm down and remain non-confrontational and purposeful. Avoid losing your temper, crying, cursing or making personal accusations. You’re there to improve the situation, not throw a fit.

See managers as allies.

While the management team has the authority on the job site, they are also your allies. They want you and the team to succeed, which means they need to hear your concerns, so don’t be afraid to approach them.

Ask the offender to join your meeting.

When you need to discuss a problem with a co-worker or boss, consider asking the person to join your meeting. This way, you can air your grievances in a professional manner with your boss as the mediator and work together to find a mutually satisfying solution.

Be willing to compromise.

You may want to see the situation resolved to your advantage, but be prepared to compromise for the good of the company, its future and your own self development. Remember to look at the situation from your boss’s point of view, too. You may need to accept responsibility for any mistakes you made or agree to make changes in the future so the company will succeed.

Sharing concerns with management is intimidating, but you owe it to yourself and your company to speak up. Use these seven tips to help you successfully share workplace concerns with management.

Jul 07
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Tips For Ride Sharing To Your Job

By Your Employee Matters

Also known as carpooling, ride sharing occurs when two or more commuters share a private vehicle on their drive to work. It gives you several benefits, so learn more about why you should ride share and tips to do it successfully.

Why You Should Participate in Ride Sharing

Ride sharing is actually very beneficial.

    1. Save money. With less wear on your vehicle, your maintenance costs will decrease. You’ll also pay less for gas, tolls, parking and other expenses when you share these costs. Pay less for your auto insurance, too, because you drive fewer miles each year and avoid accidents.
    1. Reduce stress. When you no longer have to deal with traffic, congestion and other commuting stress, you can arrive to work less frazzled and stressed.
    1. Reduce pollution. Do your part to reduce emissions and protect the environment when you share a ride to work.
    1. Save time. Ride sharing gives you access to the high-occupancy vehicle (HOV) lane. It’s usually less crowded and can help you arrive to work earlier and save time.
    1. Create safer roads. With fewer cars on the road, accident risk decreases.
    1. Build friendships as you chat or discuss current events on the way to work.

Ride Sharing Options and Etiquette

There are several ride sharing options for your work commute. You can ask a co-worker, neighbor, family member or friend who lives nearby, drives near your job site and works similar hours to share rides with you.

If you can’t find anyone nearby who wants to ride share, use carpool.com or another ride sharing website to find a commuting partner. You can also pay a bit more for a ride sharing service like Uber or Lyft if you only want to ride share a few times a week or less often.

Remember that you can customize your ride sharing experience to meet your needs. Maybe you ride partway with your neighbor and walk the rest of the way or carpool with a co-worker several times a month.

Once you do agree on ride sharing, decide who’s driving. You may each take turns driving your personal cars or provide money for gas, tolls and other expenses to the regular driver. The meeting place can be your home or a central location.

Keep your ride sharing agreement running smoothly when you follow several etiquette guidelines.

  • Arrive on time.
  • Create a schedule to accommodate vacation days or holidays.
  • Keep the car clean.
  • Agree on off-limit conversation topics or radio stations.
  • Use deodorant but not cologne or perfume.
  • Pay your share as agreed upon.

Ride sharing for work is highly beneficial. Check into this option today as you save time, money and the environment.

Jul 07
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It’s Time to Review Potential Job Hazards

By Workplace Safety

One of the best ways to protect workers in a particular job is to conduct a job hazard analysis.

This simple but powerful technique identifies hazards before they occur, focusing on the relationships among the worker, task, tools and equipment, and the work environment. Once you’ve identified job hazards, you can eliminate or reduce them to an acceptable risk level.

This is a relatively easy task, although it takes time to analyze hazards for each job category and each step in the job. You also have to do some digging into past performance.

Priority should go to jobs with the highest injury or illness rates; the potential to cause severe or disabling injuries or illness through simple human error, complex enough to require written instructions; or that have undergone changes in processes and procedures.

Job hazard analysis involves these steps: 

Involve employees. 

Their unique understanding of the job can be invaluable for finding hazards. Involving employees will help minimize oversights, ensure quality analysis, and get workers to buy in to the solutions because they’ll share ownership in their safety and health program.

Review accident history. 

This includes the workplace record of accidents and occupational illnesses, accident damage that required repair or replacement, and any near misses. These are indicators that existing hazard controls might be inadequate and need more scrutiny.

Conduct a preliminary job review. 

Discuss with employees the hazards they know exist in their work and surroundings. Brainstorm with them for ideas to eliminate or control these perils. Of course, if any hazards pose an immediate danger to an employee’s life or health, take immediate action to protect the worker.

List, rank, and set priorities. 

List jobs with hazards that present unacceptable risks, based on those most likely to occur and with the most severe consequences. Make these jobs your first priority for analysis.

Outline steps or tasks. 

Nearly every job can be broken down into job tasks or steps. When beginning a job hazard analysis, watch the employee perform the job and list each step (it might help to photograph or video the worker performing the job – these visual records can provide handy references when doing a more detailed analysis of the work). Record enough information to describe each job action without getting bogged down in details. Avoid making the breakdown so detailed that it becomes unnecessarily long or so broad that it fails to include basic steps. Review the job steps with the employee to make sure you haven’t omitted anything. Stress that you’re evaluating the job itself, not the employee’s job performance.

Identify hazards. 

List the hazards you identified in Step 3 (as well as any additional hazards you discovered when observing the employee) with each step or task involved in the job.

Jul 07
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Workers’ Compensation Risks in the Logging Industry

By Workplace Safety

Logging is one of the oldest and most dangerous professions in the United States. Workers are exposed to dozens of potential illnesses and injuries on the ground, in heavy equipment or around a sawmill. Discover the Workers’ Compensation risks in the logging industry as you protect yourself on the job.

Logging Dangers

Employees in the logging industry face dozens of challenges. They typically work in rough terrain outdoors in all kinds of weather conditions around heavy logs and heavy equipment. Accidents can happen easily in these conditions.

Accidents are also common due to falling trees or equipment troubles. The work is hard, too, and can be exhausting, making it easy for employees to let down their guard.

Isolated logging locations can also increase the negative effects of an illness or injury since employees may be far from medical treatment.

Consider these additional risks, too.

  • Being hit by dangling branches or falling logs
  • Falling from trees
  • Chainsaw and axe injuries
  • Tractor or heavy equipment accidents
  • Repetitive strain injuries
  • Uneven terrain that causes fractures, sprains, lower body injuries, lacerations or contusions

Logging Jobs Eligible for Workers’ Compensation Insurance

The logging industry comprises dozens of different jobs in timbering, hauling, processing and manufacturing. In each of these jobs, you’re at risk for injury or illness. Here’s an example of several jobs that are eligible for Workers’ Compensation.

  • Timber excavation
  • Manual or mechanized fallers
  • Buckers
  • Tree climbers
  • Choke setters
  • Rigging slingers and chasers
  • Tractor, loader or other heavy machine operators
  • Log sorters
  • Transporters
  • Debarking crew
  • Planing crew
  • Machine operators
  • Log and chip processors
  • Machine mechanics
  • Lumberyard employees
  • Log graders and scalers
  • Customer service specialists
  • Building material dealers
  • Foremen and crew

How to Prevent Logging Injuries and Illnesses

Even though you’re careful and use proper safety equipment, you can still be injured or become ill on the job. Take these precautions as you prevent logging injuries or illnesses that are eligible for Workers’ Compensation.

Wear safety equipment. Your gear should include a hard hat, sturdy boots with slip-proof soles, appropriate clothing and protective-hearing devices.

Know how to operate equipment whether you’re in charge of a chainsaw or logging truck.

Take ongoing safety training to stay updated on industry safety procedures and practices.

Insist others follow safety procedures. Always point out unsafe practices as you encourage a culture of safety.

Are you Covered?

If you work in the logging industry, you need Workers’ Compensation insurance for loggers. It covers a variety of work-related illnesses and injuries and ensures you receive medical care and income if you’re injured or become ill because of your job. Whether you cut, haul or process logs, make sure your employer carries this valuable coverage as you protect yourself on the job.

Jul 07
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How to Reduce Workers’ Compensation Claims

By Workplace Safety

When it comes to Workers Compensation claims, companies are looking constantly for ways to reduce claims and reduce costs.

Ascribing the cost of Workers Compensation claims to applicable internal departments can encourage supervisors and managers to pay more attention to training and safety programs and more carefully monitor injured employees returning to work. Some companies have even deducted the claim cost from the budget of the ascribed department instead of a general company fund as an additional incentive to curb Workers Compensation costs. Through implementing a few procedures that place Workers Compensation expenses directly on internal departments, employers have more control over prevention and injury management measures that can decrease the severity and frequency of workplace injury. The reduced claims and Workers Compensation premiums add up to a substantial amount of savings.

Safety goals can be met by communicating directly with all potential Workers Compensation employees. Use a claim and injury history to identify high-risk employee groups. Then, on a departmental level, discuss the injury management process with employees. Communication will improve as employees are given a chance to discuss how they feel the job could be performed with less risk of injury. It also gives the employer an opportunity to modify safety procedures or dangers in the work environment, such as faulty equipment or inadequate work protocols that are identified by employees.

A common problem related to workplace injuries is a lack of prompt reporting. Too often supervisors don’t appropriately acknowledge workplace accidents. The hope is that the incident will not result in time off of work or medical expenses. However, putting an initial injury off and not reporting it immediately often actually results in increased costs. Managers and supervisors need to know that they aren’t saving money when they don’t report injuries immediately. One study of more than 50,000 temporary total disability and permanent partial disability claims showed:

Injuries reported one to two weeks following the incident were 18% more expensive than those reported within a week of the incident.

Injuries reported three to four weeks after the incident were 30% more expensive than those reported within a week of the incident.

Injuries reported after four weeks of the incident were 45% more expensive than those reported within a week of the incident.

Showing supervisors and managers statistics such as these will help to ensure timely injury reporting, especially if Workers Compensation costs will be coming out of the departmental budget. Although the goal is prevention of workplace injury, once an employee has been injured, the objective should turn to a timely and safe return to work. This can best be achieved if both employer and employee share a desire to obtain the most effective care, which will help to expedite recovery and a safe return to the job.

Since each department is faced with the claim cost coming out of their own budget, managers and supervisors can take a more active role in assisting injured employees returning to work. For example, instead of the usual claim adjuster or attorney contacting the injured employee, the company concern can be conveyed through the department head(s). One last element is fraudulent claims. Although deliberate fraudulent claims are a rarity, they do exist. These fraudulent claims will be much more difficult to file when Workers Compensation costs are analyzed departmentally.

Accidents are going to happen. There simply isn’t a way to prevent all accidents and eliminate all claims. But, it is realistic to reduce the frequency and severity of workplace injuries by making the department responsible directly, whether by penalty or by reward, for a safe work environment.

Jul 07
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Workers’ Compensation Risks for Mechanics

By Workplace Safety

As a mechanic, you spend your workdays fixing cars, trucks and a variety of machines. While the job is different every day, it’s also risky. Workers’ Compensation for mechanics is an important insurance product that provides medical care and financial support if you’re injured or become ill because of your job.

Workers’ Compensation Mechanics Risks

Mechanics face numerous risks on the job every day. In fact, this job is one of the most dangerous careers in the United States.

Falls and Slips

Oil, gas and other fluids make shop floors slippery, and it’s easy to trip over parts or tools on the ground. Falls and slips could easily cause a fracture, sprain or other injury.

Being Struck by a Tool or Vehicle Part

Over one in four accidents occur when something like a dropped tool or loose part strikes you as you work. These accidents could cause a concussion, sprain or other injury.

Burns

If the vehicle you work on is hot or you change hot fluids, you risk a serious burn.

Cuts

Operating manual or power tools is essential as you disassemble and assemble vehicles, but if you’re cut, the resulting laceration could require stitches or result in a more serious injury.

Getting Caught in Equipment

Moving tires and engines pose a serious risk for mechanics. You could be injured or disabled.

Falling Objects

Even though you secure a vehicle on a jack, lift or rack, it could fall off and pin you underneath, causing a serious injury or disability.

Strain

Overexertion from repetitive lifting or other repetitive movements can cause carpal tunnel or arm, wrist, elbow, back or leg strain. Lifting heavy objects, sitting or standing in one position for a long time or bending over might also cause strain.

Toxic Exposure

Chemicals, gasoline additives and other chemicals can cause long-term illnesses like respiratory disease or cancer when you’re exposed to them over time. Lead is another risk that causes anemia, kidney disease and other illnesses.

What Does Workers’ Compensation for Mechanics Cover?

Workers’ Compensation covers expenses related to injuries or illnesses you receive on the job. It can pay for medical treatment, a portion of lost wages or education and job training.

How to Prevent Workers’ Compensation Risks for Mechanics

While you can’t prevent every injury or illness on the job, you can take several precautions.

  • Always secure vehicles.
  • Wear safety equipment.
  • Use proper lifting techniques.
  • Employ tools when lifting heavy objects.
  • Keep the shop clean.
  • Take frequent breaks.

The Workers’ Compensation risk for mechanics is high. Protect yourself as you work and make sure your employer carries the right Workers’ Compensation insurance in case you’re injured or become ill on the job.

Jul 07
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How Accidents and Lawsuits Can Be Costly

By Construction Insurance Bulletin

Risk management experts, safety experts, accountants, actuaries, and other professionals make the distinction between direct and indirect costs of accidents, lawsuits, and so forth.

For example, the cost of turnover in the HR That Works Turnover Cost Calculator includes the direct costs (such as paying for a Help Wanted ad) and indirect costs (such not growing the business due to lack of manpower). Two of the most commonly insured employee risks are those for work-related injuries and employment practice claims. This means that the direct costs associated with a Work Comp injury are those related to medical expenses and expense reimbursement, which the Workers Compensation carrier usually pays.

We usually recommend that our clients pay the compensatory portion of the claim because if they don’t, the insurance company will pay it and then get their money back by increasing your experience modifier over the next three years. In a sense, they don’t pay these claims, they finance them. In addition to the increase in the experience modifier (MOD) and cost of future insurance, there are also indirect costs:

  • Damage to property (building, tools, machinery, etc.)
  • Emergency supplies, cost
  • Possible media exposure/brand change
  • Investigation time, claim management time
  • Affect on employee morale
  • Overtime, costs of replacing employee
  • Increased experience modifier
  • Damage to client relations if accident is “on site”
  • Injury to third parties
  • Additional legal fees

Of course, these ratios depend on the type of claim or injury, type of business, days lost from work, and so forth. When it comes to an employment practices claim, direct costs are for attorney fees, litigation costs and any settlement or verdict payout. The indirect costs include: Loss of employee morale, damaged customer and client relations, copycat claims, loss of knowledge base, training, and experience.

The risk management literature offers a wide range expert opinion on the range of direct to indirect costs. Only one out of seemingly dozens of surveys identifies indirect costs as lower than a 1:1 ratio to the direct costs. Some go as high as 20 times the direct costs (for example, when an expensive piece of machinery is destroyed in the process).

Based on my personal experience and that of experts I agree with, we can safely assume at least a 1:1 ratio in most circumstances. For example, you might have to pay out $50,000 to settle the lawsuit, plus another $50,000 to replace the employee! Unfortunately, these indirect costs are often uninsurable, and in many cases dwarf the insurable costs in a given risk scenario. Interestingly, the indirect cost ratio has been diminishing as medical and legal expenses continue to soar.

These ratios also depend on such factors as:

  • Type of claim/injury
  • Type of business
  • Claim value
  • Days lost from work
  • Legal jurisdiction
  • Management response
Jul 07
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What You Need To Know About Construction Bonds

By Construction Insurance Bulletin

In the construction industry, construction bonds are an important part of the bidding process. As a contractor, here’s what you need to know about construction bonds.

What are Construction Bonds?

Construction bonds are a product that guarantees the contractor will complete the job according to the project contract. Typically, they’re required by governments for public jobs and by general contractors and private entities that bid projects to subcontractors.

Your construction bond, also called a bond line, is a pre-approved dollar amount. You’ll have a bond limit per job and an aggregate limit for all the contracts you have at one time. When you bid on a job, it counts against your bond line even if you don’t win the contract.

Types of Construction Bonds

You’ll need a variety of construction bonds depending on the project.

    1. Bid Bond – Guarantees the accuracy of your bid and that you can secure a performance and payment bond from the bonding company if you win the contract
    1. Performance Bond – Guarantees you’ll perform the work as outlined in the job contract
    1. Payment Bond – Guarantees that the suppliers, subcontractors and laborers you hire will be reimbursed if you go bankrupt before you pay them
    1. Maintenance Bond– Guarantees your work for a certain time after the job is completed
    1. Supply Bond – Guarantees your suppliers will deliver the promised supplies, materials and equipment outlined in their purchase orders
    1. Subdivision Bond – Guarantees you will follow local specifications as you build or renovate public structures in subdivisions
    1. Site Improvement Bond – Guarantees you will complete certain improvements such as renovations to older structures or updates to existing properties
    1. Contractor License Bond – Guarantees you will follow contractor regulations and licensing laws (this is technically a license and permit bond but is often considered a construction bond because it’s so common)

How to Increase Your Construction Bonds Limit

When you have a high construction bonds limit, you can bid on bigger and more jobs. Use these tips to increase your limit.

    1. Bid on small jobs. – Bid on and successfully complete small projects to build your reputation and improve your chances of getting higher construction bonds in the future.
    1. Complete your contracts. – Every time you complete a contract successfully, you establish a track record that can influence a bonding company to increase your bond limit.
    1. Improve your financial standing. – Hire a construction CPA to prepare financial records that show sufficient working capital, equity, cash flow and profit for your business.

Construction bonds ensure you complete the job properly. They’re an important part of your construction business, so understand what they are as you build your career.

Jul 07
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Safety When Handling Construction Materials

By Construction Insurance Bulletin

In October 2010, a construction worker in Pennsylvania was crushed to death by a section of a steel plate. The month before, a worker in Houston died when a pallet carrying a one-ton load struck him. In Maryland, two bar joists fell off a stack of joists on a flatbed truck, killing a worker.

The U.S. Occupational Safety and Health Administration reports that material handling accidents account for hundreds of thousands of injuries each year on construction sites. Safe material handling practices can prevent much needless suffering and also save contractors and their insurance companies millions of dollars in medical and disability benefit costs. These practices involve three distinct areas: Safe handling, safe storage and disposal.

Safe handling of construction materials involves several measures, including: 

Properly securing all materials that are stored in tiers. Pipes, steel beams, poles and other heavy materials can slide or tilt if they are not stacked and blocked adequately, allowing them to potentially fall on workers.

Keeping combustible and flammable materials in fire-resistant containers.

Determining and prominently posting the maximum safe load limits of floors where materials are stored, and taking care not to exceed those limits.

Maintaining clear and sound aisles and passageways for moving materials.

Constructing ramps or graded walkways between work areas on different levels to make accidents and spills less likely.

Improperly stored material can shift or topple over, causing potentially serious injuries. 

Sound storage practices required by OSHA include:

Stacking bricks in piles no more than seven feet high, with every layer above four feet tapered back two inches for every foot. While masonry blocks can be stacked in taller piles, but contractors should also taper the piles above the six foot mark.

Limiting stacks of lumber to 20 feet high (16 feet if workers will handle lumber without machines) in stable piles on level sills that provide good support. Prior to stacking, remove all used nails.

Keeping materials more than six feet from hoistways.

Not storing materials in floor openings.

Storing materials more than 10 feet from an exterior wall that is shorter than the top of the pile.

Not storing materials on scaffolds or runways unless the contractor is about to use them. 

In the hurry to get the job done, workers often dispose of construction debris in unsafe ways, such as tossing pieces of lumber off the side of the building. This risks injury to anyone standing below.

Contractors should follow these guidelines for proper waste disposal: 

Remove all scrap, especially combustible materials, as it accumulates instead of letting it pile up. However, do not remove it until workers are certain that the people working over their heads are finished tossing it to the ground.

Use an enclosed chute to drop debris from the higher points of the building.

Barricade areas where workers will drop debris without using a chute.

Use separate containers for materials covered with oil or flammable liquids. 

An insurance company’s loss control department may have resources available to assist contractors with improving material handling. Those who want this help should check with their agents to arrange a meeting. Sound material handling practices help prevent injuries, fines and penalties, and reduce workers’ compensation costs. They will also enhance the employer’s reputation with potential employees. Putting these safeguards into place makes both moral and practical sense.

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