Hospitality Industry Risk Management Update: “Work Comp Control Can Prevent Employees from Early Check-Out”

We recently read an account of a 48-year-old female who had two complete knee replacements and got hired as a housekeeper.backinjuries-620x330 Within the first three months, she injured her bad knee, and the cost of her workers’ comp claim will be in the tens of thousands of dollars. If this employee had received a pre-placement screening prior to her hiring, the doctor may have recommended her for a different position

According to a recent study by the National Institute of Health (NIH), hotel workers have higher rates of occupational injury and illness compared with workers in other service industries, particularly in the area of musculoskeletal disorders. So is it any wonder why so many hotel employers are throwing up their arms in surrender every time they see their workers’ compensation premiums soar out of control? Many employers treat those premiums with a “there’s nothing I can do about it” mentality when there actually is something that can be done.

The starting point is always your experience mod, or the numbers that dictate what you will pay in premiums, based on your industry. Fifty percent of all experience modifiers are incorrect, and 80 percent of all experience modifiers are mismanaged. You need to understand the importance of managing and reducing your experience modifier—it’s not just a number. Taking a passive or nonchalant attitude can cost you plenty. And this can happen in a number of ways: misclassifications, incorrect payroll audits, recovery at work programs that are weak or in some cases non-existent, and an overall lack of an established safety culture.

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