NAVIGATING WORKERS’ COMPENSATION WITH A PEO PARTNER

Navigating workers’ compensation, or workers’ comp, can seem like a complex web for a business or franchise owner to untangle. A valuable benefit for your employees, workers’ compensation is intended to protect those who may be injured or harmed due to job-related duties.

An employee who files a workers’ compensation claim is likely looking to recover wage loss benefits payment for medical bills arising from a work injury or specific loss benefits. The system is designed to provide coverage, regardless of fault. However, this leads to layers of complexity that make administrating workers’ compensation much harder said than done.

Workers’ compensation regulations for coverage and claims vary across state lines. This creates unique challenges for multi-state businesses – or a franchise who is ready to grow beyond its state’s geographic borders and serve clients throughout the nation. Compliance can become a burden, and this can easily become an outlier in a busy manager’s to-do list.

At the same time, annual workers’ comp costs continue to increase across the nation. According to the U.S. Bureau of Labor Statistics, compensation costs for civilian workers increased 4.2 percent for the 12-month period ending in March 2024 and increased 4.8 percent in March 2023. At the same time, costs for private industry workers increased 4.1 percent over the year.

According to the National Council on Compensation Insurance’s (NCCI) Workers Compensation Statistical Plan, the costliest wage loss claims by cause of injury are related to motor vehicle accidents. Other common workers’ compensation claims include slip-and-falls, burns, sprains, trauma and injuries resulting in fractures, crushing or dislocations.

In today’s business environment, these associated costs will continue to rise. That’s why business managers cannot afford to put off planning for workers’ compensation.

WHAT TO KNOW ABOUT WORKERS’ COMPENSATION

Proactive risk management, which can be delegated to a PEO partner like Integrity Employee Leasing, is the key to keeping workers’ compensation costs under control. With so many moving parts and intricate regulations, having a professional on your side can make all the difference in the world.

For example, there are specific restrictions surrounding the timeframe and circumstances in which a claim may be filed. An employee’s injury or illness must be job-related and reported in a timely manner. Additionally, the person must be an employee and not a contractor. And, depending on the state where you do business, there may be additional regulations that govern claims filed against your company.

Sometimes, a claim may be rejected due to certain factors that are not met. Non-coverage may result if the employee was under the influence of drugs or alcohol, fighting, acting recklessly, violating company policies or partaking in illegal activity at the time the injury or illness occurred.

As an employer, you want to consider these possibilities surrounding a possible claim. The best defense for a workers’ compensation claim is keeping clear records of any incident that occurs. But there are also proactive strategies to ensure your company is protected against frivolous cases.

Have you clearly documented your company policies with a written employee handbook? Does your management team know how to handle any type of injury in the workplace, as well as how to report and document the incident appropriately? Hint: The only acceptable answer is “yes.”

INTEGRITY CAN MANAGE WORKERS’ COMPENSATION FOR YOU

Whether you’re a fledgling franchise with dreams of national expansion or already functioning as a multi-state business, a PEO partner can streamline the complexities of workers’ compensation.

For example, an employer must respond to claims in a timely manner. In some states, claims must be reported within days; in others, the filing period spans multiple years. It’s often dependent on the type of injury at hand, with some situations offering more flexibility than others. Tracking and complying with differing local and state regulations is critical for an employer.

Are you confident that you have the right policy in place, with appropriate coverage for your company’s needs and future growth? Not securing proper workers’ compensation insurance for your business can result in steep fines, depending on local and state requirements. It’s especially vital for industries like construction, farming, healthcare, manufacturing, logging, mining and those employing vehicle operators.

With so many moving parts and intricate details, having a professional who can shoulder the burden of workers’ comp can offer immense value. As one of the leading PEOs in the nation, Integrity Employee Leasing often supports its clients with workers’ compensation services in addition to payroll and bookkeeping, human resources and more.

Integrity’s experienced risk management team can conduct an audit to assess your company’s compliance with all applicable regulations. Our experts will make proactive recommendations to reduce and improve your bottom line.

When you partner with Integrity, we’ll handle the whole headache. Our highly trained and knowledgeable team is perfectly positioned to respond to workers’ compensation claims filed against your company. We’ll also monitor and address compliance at an organizational level, keeping you informed of opportunities and new developments.

Why not simplify and streamline such a broad, complex area of business such as workers’ compensation insurance and claims? Your time is far more valuably spent on perfecting your products and services, improving your customer’s experience and planning for future growth and expansion.

To learn more about how Integrity Employee Leasing can help you streamline and protect your business, contact us at 941.625.0623.