IE Work Design: Productivity and Safety Dr. Andris Freivalds Class #28

IE Specific Provisions 1)Waiting period 2)% wages covered 3)Maximum period covered 4)Notice given quickly Most cases settled directly, quickly Tradeoff!!

IE Company’s Goal - ↓ Costs Correct classification Conduct payroll audit Use a deductible Check your mod ratio Change risk pool Implement a safety program Get workers back quickly Medical management

IE Other Workers Comp Issues 3 rd party liability Proposed changes –Disparity between states –Compulsory coverage for all –Reciprocity –Occupational diseases (non-accident) –Minimum total benefits –Survivor benefits –Choice of physician

IE OSHA - Why Needed? 14,000 workplace deaths/year 2.5 million workers disabled/year 300,000 new occupation disorders/year An accident every 19 seconds! State laws poorly enforced State budgets very low

IE OSHA Occupational Safety & Health Act AKA: Williams-Steiger Act, Dec. 19, 1970 Purpose: –To reduce occupational injuries and deaths –“To assure safe and healthy working conditions for working men and women” Occupational Safety & Health Administration

IE OSHAct Objectives: Encourage employers to ↓ hazards Establish training programs Monitor job-related injuries through reporting Provide research facilities & funds Establish mandatory standards Establish an enforcement program Provide for and monitor state programs

IE States Rights & Responsibilities OSHA passed to reform inadequate state laws However states can still maintain control State plan must be more effective If not, OSHA takes precedence California, North Carolina have state plans and are trend setters Pennsylvania does not have state plan

IE Employer Responsibilities General Duty Clause (preamble) “Shall furnish to each of his employees employment and a place of employment which are free from recognized hazards that are causing or are likely to cause death or serious physical harm to his employees” Comply with OSHA standards Record of work-related injuries (Form 300) Notify employees of OSHA legal provisions Cannot discriminate against employees who file complaint

IE Employee Responsibilities Follow company rules and regulations Read OSHA posters Comply with OSHA standards Use PPE Report hazards Report injuries

IE Employee Rights Complain about safety/health hazards File grievances Participate in workplace safety committees Participate in OSHA inspections Receive safety training Anonymously request OSHA inspection Be informed of OSHA info, new standards Be told of exposure to hazardous materials

IE OSHA Administration (DOL) Technical Support Compliance Assistance Health & Safety Standards

IE Other Agencies National Institute for Occupational Safety and Health (NIOSH) (Director=John Howard) –Dept. of Health, Human Services –Education, research, new standards –Mine Safety & Health Administration Occupational Safety & Health Review Commission (OSHRC) –Quasi-judicial board of 3 judges –Appointed by President –Reviews contested cases, adjudicates fines

IE Inspections To ensure compliance with standards Priorities: –Imminent danger or investigation of fatality or catastrophic event (must be reported in 48 hrs) –Valid complaint received from employee –High-hazard industries –Follow-up inspections –General inspections

IE Inspection Procedures Entry – during normal working hours –Can be unannounced, presents credentials –But employer may deny, then search warrant –No entry during strike Opening conference – management, union Walk around – also 300 logs Closing conference – discuss hazards, penalties, right to appeal

IE Violations Imminent danger – death or serious injury Serious violation – probability of above, employer should have known Nonserious violation – perhaps some injury (not serious), employer didn’t know De minimis – no direct relationship to standards or safety/health Willful/repeated violation – employer knowingly or intentionally violated act, made no effort to correct, repeated

IE Penalties (per instance) ViolationMax Penalty De minimisnone Non-serious$7,000 Serious$7,000 Imminent dangerShutdown Failure to correct$7,000/day Failure to post info$7,000/act Failure to report death (>48 h)$7,000

IE Penalties (Willful/repeat) ViolationMax Penalty Willful, no death$70,000 Willful, repeat, no death$10,000, 6 months jail Willful, repeat, death$20,000, 1 yr jail Warns company$1,000, 6 months jail Gives false information$10,000, 6 months jail

IE Most Frequent OSHA Citations 29 CFRStandardSubject# HazComWritten program2, HazComTraining1, Mach guardMethods (lack of)1, Fall protectionUnprotected sides1, Head protectionHelmets (lack of)1, RecordkeepingOSHA logs1, Abrasive wheelsGuards (lack of)1, Safety trainingWorker instruction1, First AidDrench facilities1,010

IE Leading Work-Related Diseases Occupational lung diseases Musculoskeletal injuries Occupational cancers Severe traumatic injuries Cardiovascular diseases Reproductive disorders Neurotoxic disorders Noise induced hearing loss Dermatological conditions Psychological disorders

IE Penalty Reduction Size of business –1-25 employees → 60% – employees → 40% – employees → 20% Good faith → 20% Good record → 10%