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Accidents happen, even when employers take reasonable steps to keep their employees safe on the job. That’s why knowing what to do and what not do after a work-related injury is important because it will save the employer a lot of frustration and expense.An accident waiting to happen. An industrial worker using a cell phone in a warehouse or factory walks in front of a forklift as it comes around a blind corner.

At NJBIA’s seminar “Workers Compensation from Soup to Nuts” on Thursday employers learned the ins and outs of workers compensation insurance, how to reduce the frequency of claims by creating a safer workplace, and how to navigate the requirements of the various federal and state laws governing a leave of absence for an injured employee.

Kathleen Burghardt, Esq., the administrator and supervising attorney of NJM Insurance Group’s Worker Compensation Legal Department, urged employers to set up programs that allow injured employees receiving medical treatment the opportunity to return to light-duty work, if they are physically able, instead of having them stay home and collect short-term temporary disability benefits.

“Any temporary disability that you do pay as a result of a workers compensation accident will go into your experience rating,” Burghardt said, noting these ratings identify higher risk policyholders and impact premiums. “Whenever you can bring someone back on light duty, it’s a good idea.”

Workers who file for temporary disability benefits receive 70 percent of their average weekly wage up to a maximum $921 a week. That $921 figure represents 70 percent of the state average weekly wage ($1,228.25), and injured workers who normally earn more than that amount still max out at $921.

Attorney Michael Shadiack, who chairs the Labor and Employment Practice Group at Connell Foley LLP, said employers must understand that a medical leave of absence and wage replacement benefits during that leave of absence are two separate “railroad tracks” that shouldn’t be confused.

“Workers Comp doesn’t grant any employee leave from work; it is a benefit, a tremendous benefit, but it doesn’t grant an employee leave,” Shadiack said. “Do you know who grants the employee leave? You do as the employer by putting in place one of the (employment) laws that applies.”

Knowing how to effectively manage an employee’s leave of absence using company policies and applicable federal and state laws is key, Shadiack said.

For companies with 50 or more employees, the Federal Family and Medical Leave Act (FMLA), comes into play if the employee with a serious health condition has worked for the employer for at least 12 months and worked at least 1,250 hours during that time period. An employee who has only worked for a business for a three months, for example, would not be covered by the FLMA, he said.

FMLA requires employers to provide an unpaid leave of up to 12 weeks for a variety of reasons, including the health of the employee who has been hurt on the job. The employer must return the employee to the same or substantially equivalent position at the end of the FMLA leave and is required to maintain the employee’s health insurance while the employee is out.

Whenever an employee requests FMLA leave, the employer has five days to provide him or her with a “Notice of Eligibility and Rights and Responsibilities Form WH-381 and Medical Certificate Forms WH-380-E or WH-380-F, Shadiack said.

“You control the leave process, the employee has to cooperate” by returning the forms within 15 days, Shadiack said. If the employee fails to comply within 15 days, the employer can send a Warning of Failure to Provide Notice letter to the employee and eventually terminate the employee.

Employers with less than 50 employees who are not covered by the FMLA should consider company policies and the provisions of the Americans with Disabilities Act (ADA), as an alternative basis for granting a leave of absence, he said. The ADA applies to all private employers with 15 or more employees and can require an employer to grant medical leave as a “reasonable accommodation” if the leave would not impose an undue hardship on the employer.

The New Jersey Family Leave Act (FLA) does not apply to leaves due to an employee’s own serious health condition, only to serious health condition of a family member, Shadiack said.

However, the New Jersey Law Against Discrimination can require an employer to grant medical leave under certain circumstances, as a reasonable accommodation, if it would not impose an undue hardship on the employer, Shadiack said.

 

9 responses to “Take Control of Your Workers Comp and Employee Leave Programs”

  1. That’s good to know that you can get 70% of your weekly wage when you get workers compensation. That way you could have a way to still pay the bills when you can’t work because of an injury. That’s good to know that you can have a max of $921 dollars as well, which would still be enough.

  2. Latimer says:

    Great post …fully agree with all your points, particularly managing an employee’s leave of absence using company policies.

  3. I liked that you explained that workers compensation will sometimes allow for injured employees to return to light work duty instead of just staying home. I would imagine that this would better help the company have their needs met and give you employee some money. I would consider returning to work for light duty if I ever got injured on the job.

  4. I thought it was great when you said that you should understand what to do and what not to do after a workplace injury. My brother works for a construction company that handles large projects. It might be important for him to understand his worker’s compensation benefits in case he is injured.

  5. It’s interesting that if you file for temporary benefits, you get 70% of your weekly wages. That’s way higher than I expected! My dad has recently been injured during his work so I’m helping him with research. I’ll have to tell him the good news!

  6. I never knew that workers who file for temporary disability benefits receive 70% of their average weekly wage. My husband and I are thinking about starting a small company and have started thinking about aspects like workers compensation and employee leave. We want to be sure we follow all the guidelines and have proper insurance set up in case of emergencies. Hoepfully we can find a great workers compensation insurance provider in our area!

  7. Mindy Jollie says:

    I like that Shadiack pointed out that worker’s comp doesn’t guarantee an employee leave. I would imagine that having someone to represent you if something goes wrong with your worker’s comp is important to avoid issues like that. My brother recently got injured in his knee at his job, and he’s having to deal with making a worker’s comp claim. I’ll have to make sure he has representation if he needs it.

  8. I appreciate you explaining that workers comp is a benefit that isn’t the same as a leave of absence. My son wants to start a new construction company soon and is trying to find out all the best ways he can provide a great place to work for his employees. I will pass this information over to him as he decides what his best options are.

  9. Ellie Davis says:

    It’s interesting to know that a company with 50 or more employees can take advantage of the Federal Family and Medical Leave Act if the employee has a health condition. My husband owns a company that is growing circumstantially, and he is looking for advice about workers compensation insurance. I will pass this information to him to see if it helps him understand the process.

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