Compliance Overview - OSHA Inspections

OSHA Inspections

The Occupational Safety and Health Act (OSH Act) requires employers to provide a safe work environment for their workers. The Occupational Safety and Health Administration (OSHA) is responsible for creating workplace safety standards and enforcing compliance with the OSH Act.

OSHA enforces compliance with the OSH Act by conducting inspections, gathering evidence and imposing penalties on noncompliant employers. OSHA penalties are civil penalties that may result in fines. However, OSHA may refer certain violations to the U.S. Department of Justice for criminal prosecution. Actual penalties imposed on an employer take into consideration the gravity of the violation, the size of the employer’s business, good faith efforts the employer makes to comply with the law and the employer’s compliance history.

This Compliance Overview provides a summary of the OSHA inspection process as well as some tips and reminders that employers should be aware of during an actual inspection.

LINKS AND RESOURCES

  • OSHA enforcement programs website
  • OSHA on-site consultations webpage
  • OSHA recommended practices for safety and health programs webpage

COMPLIANCE OFFICERS

  • Conduct inspections
  • Assign specialists to accompany and assist during an inspection
  • Issue citations for noncompliance
  • Can obtain inspection warrants

TIPS FOR EMPLOYERS

  • Check inspector credentials.
  • Notify management when inspector arrives.
  • Determine the purpose and scope of the inspection.
  • Be prepared to prove compliance.
  • Get a copy of the complaint, if possible.
  • Set ground rules for inspection.
  • Cooperate and be responsive.
  • Take note of what the inspector documents.

EMPLOYERS SUBJECT TO OSHA

Most private sector employers in the United States, the District of Columbia and other U.S. jurisdictions are subject to the OSH Act, either directly or through an OSHA-approved state program. State plans are OSHA-approved job safety and health programs operated by individual states instead of federal OSHA. The OSH Act encourages states to develop and operate their own job safety and health programs. State-run safety and health programs must be at least as effective as the Federal OSHA program.

In general, state and local government employees (public employees) are not subject to the OSH Act. However, public employees may be covered through an approved state program.

OSHA INSPECTIONS

OSHA inspections are conducted by OSHA’s compliance safety and health officers. Compliance officers have authority to:

  • Conduct inspections;
  • Assign specialists to accompany and assist them during an inspection (as appropriate or required);
  • Issue citations for noncompliance;
  • Obtain court-issued inspection warrants; and
  • Issue administrative subpoenas to acquire evidence related to an OSHA inspection or investigation.

Whenever possible, OSHA will assign compliance officers with appropriate security clearances to inspect facilities where materials or processes are classified by the federal government.

Compliance officers are required to obey all employer safety and health rules and practices for the establishment that is being inspected. This includes wearing all required protective equipment and necessary respirators. Compliance officers must also follow restricted access rules until all required precautions have been taken.

Employers can request compliance officers to obtain visitor passes and sign visitor registers. However, compliance officers cannot sign any form or release, nor can they agree to any waiver. This prohibition extends to forms intended to protect trade secret information.

OSHA inspections can last for a few hours or take several days, weeks or even months. All inspections can be divided into three stages, an opening conference, a walk-around and a closing conference.

Inspection Scheduling

OSHA inspections can be either programmed or unprogrammed. Unprogrammed inspections generally take precedence over programmed ones.

Unprogrammed inspections are usually triggered by particular reports. OSHA gives priority to unprogrammed inspections in the following order: imminent dangers, fatalities or catastrophes, and employee complaints and referrals. OSHA may also conduct an unprogrammed follow-up investigation to determine whether previously cited violations have been corrected.

Programmed inspections are scheduled based on neutral and objective criteria. Programmed inspections typically target high-hazard industries, occupations or health substances. OSHA considers various factors when scheduling programmed inspections, including employer incident rates, citation history and employee exposure to toxic substances.

Inspection Notice

The OSH Act prohibits providing employers advance notice of an inspection. Individuals that provide advance notice of an OSHA inspection face criminal charges that may result in a fine of up to $1,000, imprisonment for up to 6 months or both.

However, the OSHA Act also allows OSHA to authorize exceptions to the no-notice requirement in situations where advance notice would:

  • Allow an employer to correct an apparent imminent danger as quickly as possible;
  • Facilitate an inspection outside of a site’s regular hours of operation;
  • Ensure the presence of employer and employee representatives or other appropriate personnel during the inspection; or
  • Enhance the probability of an effective and thorough inspection (such as in investigations for complex fatalities).

When an exception is approved, OSHA will not provide more than a 24-hour notice to affected employers.

Inspection Scope

The scope of an OSHA inspection can be comprehensive or partial. A comprehensive inspection is a complete and thorough inspection of the worksite. During a comprehensive inspection, the compliance officer will evaluate all potentially hazardous areas in the establishment. However, an inspection may be considered comprehensive even though, at the compliance officer’s discretion, not all potentially hazardous conditions or practices are actually inspected.

A partial inspection is usually limited to certain potential hazardous areas, operations, conditions or practices at the employer’s establishment. However, at his or her discretion, a compliance officer may expand the scope of a limited inspection. The compliance officer will generally make this decision based on the information he or she gathers during the inspection.

COMPLIANCE OFFICER ARRIVAL

OSHA inspections begin with the compliance officer’s arrival. In general, a compliance officer will arrive for a worksite inspection during the site’s hours of operation. However, OSHA may authorize additional times for an inspection as necessary.

Upon arrival, a compliance officer should present his or her credentials. If necessary, employers can contact their local OSHA office to confirm a compliance officer’s authority to conduct the inspection.

A compliance officer has the right to enter an employer’s premises if he or she has obtained consent from the employer or a warrant ordering the employer to admit the inspector. In either case, employers cannot unreasonably delay an inspection to await for the arrival of the employer representative (inspectors may wait up to one hour to allow an employer representative to arrive from an off-site location).

Tips and Reminders

  • Check inspector credentials.
  • Instruct staff on how to receive inspector.
  • Inform senior management or legal counsel as appropriate.
  • Determine whether you will demand a warrant.

Consent

Employers can consent to admit a compliance officer and perform a worksite inspection. Employers may also provide partial consent, and allow a compliance officer access only to certain areas of their facilities. Compliance officers will make note of any refusals or partial consent and will report it to OSHA. OSHA may take further action against any refusals, including any legal process it may see fit to obtain access to restricted areas.

In sites where multiple employers are present, the compliance officer does not need to obtain consent from all employers present. Consent from just one employer is sufficient to allow the inspector to access the entire worksite.

Warrant

Compliance officers are not required to ask for an employer’s consent when they have a court-issued warrant. The warrant allows the compliance officer access to the employer’s facilities to conduct an inspection.

Employers that do not provide consent have the right to require compliance officers to obtain a warrant before allowing them access to the premises. As a general practice, few employers actually require warrants, though some employers have done so to delay the start of an inspection.

There are, however, some exceptions to the employer’s right to require a warrant. A compliance officer does not need to obtain employer consent or a warrant to access the premises if he or she can establish:

  • The existence of a plain view hazard;
  • That the worksite is an open field or construction site; or
  • The existence of exigent circumstances.

OPENING CONFERENCE

In general, compliance officers will try to make the opening conference brief in order to proceed to the walkaround portion of the inspection as soon as possible. In general, the opening conference is a joint conference,

where both employer and employee representatives participate. However, the compliance officer may hold

separate opening conferences if either employer or employee representatives object to a joint conference.

During the opening conference, compliance officers will discuss with employers:

  • The purpose of the inspection;
  • Any complaints filed against the employer, if applicable;
  • The officers’ right to document evidence (handwritten notes, photos, video and audio recordings);
  • The advantages of immediate abatement and quick fixes;
  • The intended scope of the inspection;
  • A plan for the physical inspection of the worksite;
  • The audit of employee injury and illness records;
  • Referring violations not enforced by OSHA to appropriate agencies;
  • Employer and employee rights during the inspection; and
  • Any plans for conducting a closing conference.

Tips and Reminders

  • Determine the purpose and scope of the inspection.
  • Be prepared to prove compliance.
  • Get a copy of the complaint, if possible.
  • Set ground rules for inspection.
  • Cooperate and be responsive, but DO NOT volunteer information.

As applicable, during the opening conference, employers will also need to present their written certification of hazard assessment and produce a list of on-site chemicals (with their respective maximum intended inventory).

Compliance officers will use these documents to determine the hazards that may be present at the worksite and set initial benchmarks and expectations for the physical inspection of the establishment.

Finally, at their discretion, compliance officers can conduct abbreviated conferences in order to begin the walkaround portion of the inspection as soon as possible. During an abbreviated conference, a compliance officer will present his or her credentials, state the purpose for the visit, explain employee and employer rights, and request the participation of employee and employer representatives. All other elements of the opening conference will then be discussed during the closing conference.

WALK-AROUND

The walk-around is the most important stage of the inspection. Employer and employee representatives have the right to accompany compliance officers during the walk-around stage of the inspection. However, workers at an establishment without a union cannot appoint a union representative to act on their behalf during an OSHA inspection walkaround (see OSHA memo from 2017).

During the walk-around, compliance officers will take notes and document all facts pertinent to violations of the OSH Act. In general, compliance officers will also offer limited assistance (as appropriate) on how to reduce or eliminate workplace hazards.

The OSH Act requires compliance officers to maintain the confidentiality of employer trade secrets. Compliance officers should only document evidence involving trade secrets if necessary. Compliance officers must mark trade secret evidence as, “Confidential – Trade Secret,” and keep it separate from other evidence. Compliance officers that violate these requirements are subject to criminal sanctions and removal from office.

Tips and Reminders

  • Inspections may last several days. Plan accordingly.
  • Require inspectors to comply with establishment safety rules.
  • Take note of what the inspector documents.
  • DO NOT stage events or accidents.
  • DO NOT destroy or tamper with evidence.

CLOSING CONFERENCE

As with the opening conference, unless an objection exists, the closing conference is generally a joint conference. However, the closing conference may be conducted in person or over the phone. The inspection and citation process will move forward regardless of whether employers decide to participate in the closing conference.

The compliance officer will document all materials he or she provides to the employer during the closing conference as well as any discussions that took place. Discussion topics for the closing conference may include:

  • Employer rights and responsibilities
  • The strengths and weaknesses of the employer’s safety and health system
  • The existence of any apparent violations and other issues found during the inspection
  • Any plans for subsequent conferences, meetings and discussions

The closing conference is not the time for employers to debate or argue possible citations with the compliance officer. Employers should take sufficient time during the closing conference to understand the inspector’s findings and any possible consequences. Employers should also discuss any abatements completed during the inspection or any plans to correct issues in the near future.

During this conference, employers should also request copies of recorded materials and sample analysis summaries. Finally, employers should take time to discuss their right (and the process they must follow) to appeal any possible citations.


Risk Insights - Attracting and Retaining Commercial Drivers

Commercial fleets need to maintain a workforce of loyal, qualified drivers in order to succeed. But recently, increased demand for freight volume has highlighted an ongoing driver shortage that’s left many motor carriers operating under capacity.

In order to ensure that your business is attracting and retaining talented drivers, you need to evaluate how the shortage may be affecting you and the steps you can take to make your workplace appealing.

What’s Contributing to the Shortage?

The first step when attracting or retaining drivers should be to understand the underlying causes of the driver shortage:

  • Wages—According to the National Transportation Institute, drivers’ wages have lagged behind both inflation and minimum wage increases. Since 2006, for-hire drivers have seen wage increases of 6 percent compared to a 17 percent increase for private fleet drivers. However, inflation and the minimum wage have increased by 18 and 40 percent over that same period, respectively.
  • Age—The average age for a commercial driver is 55, according to the Bureau of Labor Statistics. More drivers are retiring every day, and a federal law that prohibits drivers under the age of 21 from obtaining intrastate commercial driving licenses makes it difficult to attract younger replacements before they enter another industry.
  • Lifestyle—Commercial drivers often operate over long hours without breaks and are frequently away from home. Many motor carriers also assign new drivers to long or isolated routes, which can make open positions unappealing to prospects.
  • Growing economy—As the U.S. economy continues to grow, increased demand from retailers has led to record demand for trucking capacity, putting a strain on available drivers.

In-house Adjustments to Attract Drivers

Before you consider changing your pay models or workplace benefits, there may be some operational changes you can review to attract or retain drivers:

  • Offer flexible scheduling. Many prospective drivers are afraid of being away from home for long periods of time, and giving them the option to work closer to home can make your business more appealing.
  • Consider new fleet management procedures or technology to help reduce your drivers’ average length of haul. Although you want to keep your drivers on the road frequently to increase your capacity, reducing the average length of haul can help drivers improve their health and manage the balance between their work and home lives.
  • Adjust training programs to target other departments or industries. Prospective drivers may be intimidated by the amount of experience or legal requirements needed to obtain a commercial driver license. Simply adjusting your training programs can help your business integrate drivers from outside the industry.


Increased demand for freight volume has highlighted an ongoing driver shortage that’s left many motor carriers operating under capacity.


Wage Considerations

One of the most effective ways to appeal to drivers is to increase wages. Although this can be done by simply giving drivers a set raise or bonus, there are alternative payment models and other considerations to keep in mind:

  • Bonuses—Many carriers now offer staggered bonuses that incentivize retention, such as $10,000 bonus that’s split into payments after a driver has worked for 30 days, 90 days and six months. However, some experts believe that these bonuses may also cause drivers to leave once they’ve collected all of their payments.
  • Hourly pay—Drivers aren’t frequently paid by the hour because it’s hard to prove when they’re on duty. But now, tracking technology like GPS and electronic logging devices can make it easy for carriers to know when their drivers are on the job.
  • Flexible models–Many businesses have started to incorporate multiple pay models into their operations to accommodate drivers. For example, drivers who are paid by the mile earn very little when slowed by traffic or unloading. Now, tracking devices can detect legitimate delays and switch to a different pay model during that time in order to make long or congested routes more appealing.

When considering raises, bonuses or other pay models, keep in mind that your drivers’ wages could impact your liability or workers’ compensation rates. Contact us at 920-921-5921 for more help addressing your specific concerns.

Workplace Benefits

Another way to make your business appealing to talented drivers is to offer a competitive benefits package and create a positive work environment. Besides 401(k) investment matching and comprehensive medical coverage, you should consider the following:

  • Paid time off to allow drivers to visit home or take a break while still making an income
  • In-house programs that reward successful drivers with priority at service stations, pay bonuses or new equipment
  • New equipment and vehicles to make drivers’ day-to-day operations easier and attract tech-savvy applicants

Additionally, an emphasis on respect can help your business attract and retain drivers. Experts believe that drivers may be turned away from the transportation industry due to a perceived lack of respect for the long hours they put into their jobs. Make sure to show drivers they’re respected by paying attention to their feedback, recognizing their accomplishments and staying involved in their personal and professional lives.

Finding Consistent Success

The driver shortage isn’t going away anytime soon, and you need to constantly review your operations to ensure you’re attracting and retaining a talented workforce. Get in touch with Hierl Insurance Inc. today for more resources on driver training, legal requirements and transportation-specific news.


OSHA Cornerstones - Second Quarter 2018

In this Issue

OSHA Delays Beryllium Rule Enforcement

The agency also clarified requirements for the construction and shipyard industries.

Majority of Establishments Failed to Submit 2016 Electronic Reporting Data

A delayed compliance date and confusion about exemptions caused many establishments to fail to report 2017 data electronically.

OSHA Releases Two New Fact Sheets on Electricity Safety

These new resources can help protect employees who frequently work around electricity and downed power lines.

OSHA Delays Beryllium Rule and Clarifies Requirements for Construction and Shipyards

Although OSHA’s final rule on beryllium exposure in the general, construction and shipyard industries became effective on May 20, 2017, the agency recently announced that it will delay enforcement until May 11, 2018. OSHA also announced that some of the rule’s requirements will vary between the three affected industries.

Beryllium is a toxic metal that’s commonly found in machine parts, electronics and aircraft. The metal is a known carcinogen and can also cause respiratory problems, skin disease and many other adverse health effects. For these reasons, OSHA has lowered the exposure limits for employers in the general, construction and shipyard industries:

  • The permissible exposure limit (PEL) of an eight-hour average has been lowered to 0.2 micrograms per cubic meter of air (μg/m3). The previous PEL was 2.0 μg/m3, a limit that OSHA found to pose a significant health hazard to employees.
  • The short-term exposure limit (STEL) over a 15-minute period has been lowered to 2.0 μg/m3.

Although the new beryllium rule contains additional requirements, OSHA will only require the construction and shipyard industries to follow the new PEL and STEL. The agency stated that employees in these industries don’t frequently work near dangerous amounts of beryllium and are protected by the safety requirements found in other OSHA standards.

General industry employers must follow these additional beryllium control methods:

  • Provide exposure assessment to employees who are reasonably expected to be exposed to beryllium.
  • Establish, maintain and distinguish work areas that may contain dangerous amounts of beryllium.
  • Create and regularly update a written beryllium exposure plan.
  • Provide adequate respiratory protection and other personal protective equipment to employees who work near beryllium.
  • Train employees on beryllium hazards and control methods.
  • Maintain work areas that contain beryllium and—under certain conditions— establish facilities for employees to wash and change out of contaminated clothing or equipment.

For more information on the new rule, call us at 920-921-5921 and ask to see our Compliance Bulletin on beryllium exposure.

Majority of Establishments Failed to Submit 2016 Electronic Reporting Data

According to a new report from Bloomberg Environment, a majority of the establishments that were required to submit 2016 injury and illness data under OSHA’s electronic reporting rule failed to do so. OSHA expected to receive about 350,000 reports, but the agency only received just over 150,000.

The final date to submit 2016 injury and illness reports was Dec. 31, 2017, but this date was delayed a number of times as OSHA worked to build its Injury Tracking Application and improve its cyber security. Bloomberg also attributes the large number of missing reports to confusion about exemptions, as OSHA received over 60,000 reports from exempt establishments.

Under the rule, the following establishments must submit data electronically:

  • Establishments with 250 or more employees that are required to keep injury and illness records must submit OSHA Forms 300, 300A and 301.
  • Establishments with 20 to 249 employees that work in industries with historically high rates of occupational injuries and illnesses must submit OSHA Form 300A.

The final date to submit 2017 injury and illness data electronically is July 1, 2018. Beginning in 2019, data from the previous calendar year must be submitted by March 2 annually.

OSHA Releases Two New Fact Sheets on Electricity Safety

OSHA has released two electricity fact sheets in order to protect employees who frequently work with electricity and power lines. According to the Electrical Safety Foundation International, electricity causes over 150 fatalities and 1,500 injuries in U.S. workplaces every year.

Here are some of the topics included in the first new fact sheet, which can provide tips for engineers, electricians and other employees who work with electricity:

  • Generators
  • Power lines
  • Extension cords
  • Equipment
  • Electrical incidents

The second fact sheet focuses on downed electrical wires and can help employees involved in recovery efforts following disasters and severe weather events.

Protecting employees from electrical hazards not only keeps your business productive, it can also save you from costly OSHA citations. The agency’s electrical wiring method standard is one of the top 10 most frequently cited standards nearly every year.

For resources that can help safeguard your business against electrical hazards, contact us today.


Manufacturing Risk Advisor - May/June 2018

Mixed Reaction to New Steel and Aluminum Tariffs

The Trump administration recently announced a 25 percent tariff on steel and 10 percent tariff on aluminum in order to discourage imports of these materials. The administration also stated that the tariffs are part of an effort to increase jobs and protect U.S. businesses from foreign competition.

While the tariffs were established to help U.S. businesses, manufacturing experts believe that they may increase the price of new products and that sales will likely decrease as these costs are passed onto consumers. Although the tariffs only apply to imported materials, many U.S. steel and aluminum producers have raised prices in order to account for increased demand.

The Commerce Department also announced an exclusions process for the tariffs. However, businesses must first prove that they’re unable to obtain the materials from domestic sources.

For more information on the manufacturing industry, call us at 920-921-5921 today.

How Blockchain Technology Can Improve Supply Chains

Manufacturers need to rely on a consistent supply chain in order to operate. However, a lack of transparency between vendors and the use of separate management systems often leads to confusion, delays and lost business.

To solve these problems, many businesses have turned to blockchain technology—a platform that works by recording a separate record, or “block,” every time a supply chain progresses. This record is then encrypted and used to verify all subsequent blocks, which prevents any alterations to records.

Here are some of the potential benefits of a blockchain recordkeeping system:

  • Flexible scalability—Blockchain systems can be used internally to track projects and other workflows. Multiple organizations can share the platform to organize large-scale operations.
  • Security—Records that use blockchain are encrypted, verified and shared between all users. As a result, blockchain is very secure against tampering and cyber attacks.
  • Transparency—Advanced sensors and other tracking technology can update blockchain records to give businesses an ongoing view of a supply chain without fear of human error or biased reporting.
  • Innovation—New services are beginning to automate complex systems like contractual obligations, employee security credentials and personal data protection using blockchain technology.
  • Detailed analytics—Businesses can track individual products to gather important information at any time, such as the origin of a dysfunctional product or a food item’s expiration date.


Trucking Risk Advisor - May 2018

ELD Enforcement Contributes to Rising Freight Rates

Electronic logging device (ELD) enforcement has contributed to rapidly growing freight rates, according to a report from transportation information firm DAT Solutions. The firm found that 3 percent of surveyed truckers planned to retire instead of comply with the ELD rule, which was a large factor in a 7 percent drop in year-over-year trucking capacity.

Although the ELD rule came into effect at the end of 2017, the Department of Transportation only began enforcement of the rule on April 1, 2018. ELDs automatically track a driver’s compliance with federal hours-of-service limits, and drivers who don’t use the devices must stop driving until one is installed.

While freight rates in April are generally lower following the end of the first quarter, DAT Solutions’ report found that rates have increased as motor carriers struggle to account for a shortage of skilled drivers.

Call us at 920-921-5921 for more information on trends in the trucking industry.

New Technology May Replace Mirrors With Camera-based Systems

Although sideview mirrors allow drivers to stay aware of surrounding traffic, the large devices offer limited viewing angles and create drag that lowers fuel economy. As a result, some technology companies are advocating for the use of camera-based systems to improve safety and lower operating costs.

Prototype camera systems feature multiple, internally wired cameras that provide drivers with multiple views of adjacent lanes, the blind spot in front of a truck’s hood and the ground on each side of the vehicle. The cameras themselves also include a number of safety features:

  • Redundant systems to reduce the chances of a malfunction
  • Low-light visibility options
  • Heated glass to prevent the buildup of ice and frost
  • Special coatings that resist rain and moisture

Camera systems can improve a heavy-duty truck’s fuel economy by approximately 2.5 percent and lead to over $1,300 in annual fuel savings. The systems can also lead to savings by reducing crashes, as traditional mirrors are limited by large blind spots, glares, night visibility and adverse weather.

The FMCSA is currently accepting public comments on an exemption for the MirrorEye camera system, which has been used in Europe since 2016. For more information, visit the FMCSA’s notice in the Federal Register.


Risk Insights - Understanding Total Cost of Risk

Risk exists everywhere in business. One of the biggest mistakes that companies make is assuming that the cost of risk only involves their insurance premiums paid, retained losses and administrative costs. However, the total cost of risk encompasses much more than that.

While a risk management program can be an effective method for controlling risk, the resources used by the program may not be addressing all the risks faced by the business. One way to discover all of the risks facing your business—including the ones that might not be seen, considered or addressed in your risk management program—is to examine the total cost of risk (TCOR).

TCOR is the total cost of the items that businesses are responsible for, such as insurance premiums, retained losses in the form of deductibles and uninsured losses, indirect costs of claims and administrative costs, and other factors that can include the following:

  • Transaction costs
  • Loss of reputation
  • Loss of market share
  • Overtime
  • Additional training
  • Product loss
  • Production decrease
  • Claims reporting and investigation
  • Fines

Over time, an idea of an organization’s TCOR can provide a form of measurement for assessing how its risk-related costs are changing, relative to the overall growth rate of the business.

Why is Knowledge of TCOR Important?

If your business is only focusing on insurance premiums as your way of quantifying risk, you may be missing costs that you have more control over. For example, premiums may be the least controllable costs, as insurance rates are determined by outside forces such as weather-related events, the stock market, interest rates and the insurance marketplace.

Furthermore, the benefit of decreasing premiums is negated if an organization sees an increase in indirect costs of claims and administrative costs. True cost reduction is most impacted by lowering indirect costs, which can cost more than the actual claim itself. TCOR helps identify those costs.


Understanding your TCOR and your ranking helps identify areas where your organization can save money.


How Does TCOR Work?

TCOR is measured per $1,000 of revenue. By measuring TCOR against revenue, you can measure the progress that your safety and risk management programs make in reducing internal costs throughout the years.

Benefits of Knowing Your TCOR

When business owners accurately measure TCOR, they tend to possess the motivation to invest into a more effective risk management effort, which can provide a significant rate of return. Many business owners use TCOR to realize the following benefits:

  • Increased productivity, profitability and efficiency
  • Reduced costs across the entire business, not just reduced insurance premiums

A better idea of any inconsistencies in the organization’s risk management approach

Tips for Utilizing TCOR

Consider the following tips when evaluating TCOR for your organization:

  • Use a basic framework to break down costs into component categories such as insurance premiums, service provider costs, risk transfer costs and safety department expenses.
  • Identify existing costs for each risk category, expressed as a percentage of overall company revenues.
  • Establish targets for each category for future years.
  • Remember that it’s not just about premiums. TCOR also includes self-insured losses, internal administrative fees and outside vendor fees.
  • Work on one area of TCOR at a time. This helps expose weaknesses in other areas of your risk management program and helps identify problem areas that need attention.
  • Consider all components of TCOR proportionally, and examine how they’re operating in conjunction with each other. If losses are low and premiums are high, there may be a need to reduce annual premiums and retain more predictable losses.
  • Be patient. Don’t expect immediate cost savings. Be prepared to invest in risk management tools that can deliver financial benefits over time.

Contact Hierl Insurance Inc. for a TCOR evaluation and resources that can help you lower your TCOR and improve your bottom line.


Covered Establishments in All States Must Now Submit OSHA Electronic Reports

HIGHLIGHTS

·      The electronic reporting rule now applies to all affected establishments, including establishments in states with OSHA-approved plans.

·      It does not matter whether the state has ratified the electronic reporting requirements.

·      The OSHA ITA is currently available and accepting reports on OSHA 300A forms with 2017 data.

IMPORTANT DATES

December 31, 2017

Due date for first OSHA electronic reports through ITA (submit 2016 data)

July 1, 2018

Due date for second OSHA electronic reports through ITA (submit 2017 data)

OVERVIEW

On April 30, 2018, the Occupational Safety and Health Administration (OSHA) announced it will require all establishments affected by the electronic reporting rule to submit their 2017 data to OSHA by July 1, 2018.

This announcement clarifies the requirement for establishments in states with an OSHA-approved plan. These establishments must submit electronic reports, regardless of whether the state has ratified or incorporated the electronic reporting rule into its OSHA state plan.

ACTION STEPS

Establishments in all states, including those with an OSHA-approved state plan, should prepare to submit electronic reports by July 1, 2018. Affected establishments can accomplish this by:

  • Becoming familiar with the requirements in the electronic reporting rule; and
  • Transitioning their OSHA records to an electronic format approved by the Injury Tracking Application (ITA)

OSHA Electronic Reporting

OSHA’s electronic reporting rule was issued in 2016. The rule requires establishments to report data from their injury and illness records to OSHA electronically if they:

  • Are already required to create and maintain OSHA injury and illness records and have 250 or more employees;
  • Have between 20 and 249 employees and belong to a high-risk industry; or
  • Receive a specific request from OSHA to create, maintain and submit electronic records, even if they would otherwise be exempt from OSHA recordkeeping requirements.

The electronic reporting rule applies to establishments, not employers. An employer may have several worksites or establishments. In these situations, some establishments may be affected while others are not.

To determine whether an establishment is affected, employers must determine each establishment’s peak employment during the calendar year. During this determination, employers must count every individual that worked at that establishment, regardless of whether he or she worked full-time, part-time, or was a temporary or seasonal worker.

OSHA-approved State Plans

The final rule required OSHA-approved state plans to adopt the electronic rule or “substantially identical” requirements within six months of the final rule’s publication date.

This means that OSHA-approved state plans have the authority to adopt reporting requirements that go above and beyond what is required by the federal rule. For this reason, establishments located in OSHA-approved state plan jurisdictions should consult with their local OSHA offices to make sure they are satisfying all electronic reporting requirements.

The OSHA-approved state plans shown on this map have not yet adopted the requirement to submit injury and illness reports electronically.

As a result, establishments in these states were not required to submit their 2016 data through the reporting website in 2017. However, OSHA has now clarified that they must submit their 2017 data in 2018.

All Employers
California

Maryland

Minnesota

South Carolina

Utah

Washington

Wyoming

Public Employers
Illinois

Maine

New Jersey

New York


Eliminate Electronic Distractions from the Workplace

It is a generally accepted fact that the use of cellphones and other electronic devices while driving present a distraction that greatly increases the chance for an accident. Unfortunately, what too many people fail to take into consideration is how distracting these devices can be in other situations.

In an industry of moving machinery and equipment, manufacturing workers are especially susceptible to workplace injury. They need to be alert at all times, as even the smallest slip-up can cause an accident. Not only can an inattentive worker injure themselves but their carelessness can also endanger others. In this type of work environment it is easy to see the importance of minimizing the potential distractions faced by your employees.

Cellphones

Whether it’s talking or texting, cellphone use takes the employees focus off their task. While handheld use compounds the problem, even using a hands-free device does not allow for full concentration. Studies indicate that the act of talking on the phone is distracting regardless of whether the user is physically holding the device or not. It is the conversation itself that takes an employee’s focus off their work and surroundings.

While some employees may need to use a work cellphone as part of their job, it is best to place restrictions on when and where those phones can be used. Personal cellphones should not be allowed on the manufacturing floor at all, as even the momentary distraction of a call or message alert can potentially lead to an accident. Employees should not have phones on their person during work hours unless they are on a break from their duties and are in a designated break area.

Attentive, focused employees are essential to creating a safe work environment. To reduce the chance for employee injury, it is important to keep the workplace free of distractions, such as cellphones and mp3 players.

Mp3 and Other Music Players

There are a variety of audio cues that alert workers to what is happening around them. Unfortunately, when an employee’s hearing is impaired by music, a shout from a coworker, an odd sound from a malfunctioning machine or the backup alarm on a truck or forklift can be easily missed. Besides limiting the worker’s ability to hear what is going on around them, there is also the potential distraction of operating the device. When adjusting volume or switching songs, not only is the employee’s hearing impaired, but they are also visually engaged with the device. This greatly decreases the worker’s awareness of his or her surroundings.

Potential Hearing Loss

In a manufacturing setting it is not uncommon for there to be high noise levels that require proper ear protection to prevent hearing loss. The use of cellphones, hands-free devices and headphones can interfere with an employee’s proper use of protective equipment. Even though such devices may cover the ear, most are not meant to provide hearing protection.

In fact, in noisy situations, devices that administer sound directly into the ear increase dangerous levels of noise exposure as employees turn up volume levels to drown out background noise. The combination of these noise exposures greatly increases the rate of hearing loss, which in turn increases the chance for occupational hearing loss claims.

Electronics Usage Policy

Attentive, focused employees are essential to creating a safe work environment, which is why it is important to eliminate possible distractions. Prohibiting employee use of personal electronic devices can aid in reducing workplace accidents. To clearly state your company’s rules on when and where usage is restricted, institute an electronics usage policy. Once instituted, train your employees in the policy requirements and make sure restrictions are diligently enforced.


The days of employers ignoring the opioid crisis are over

How can employers help reduce the risk of the opioid crisis? The CDC estimates prescription opioid misuse in the U.S. cost $78.5 billion per year. Read on to learn more.


Productivity, medical claims, work injuries, and the company’s bottom line — what do these things all have in common? They are all being drastically affected by the effects of substance abuse. The opioid crisis that is running rampant across the United States is having an impact on employees at every level.

As an employer, what do you need to know to support your employees and reduce the risk of this national crisis?

First, you need to educate yourself on the facts. According to the National Institute on Drug Abuse, every day, more than 115 people in the U.S. die after overdosing on opioids. It is not just the deadly heroin/fentanyl combination that we have been hearing about in the news, sources of opioid addiction include prescription pain relievers such as hydrocodone, oxycodone, oxymorphone, morphine, codeine, and other prescribed substances.

See also: A look at how the opioid crisis has affected people with employer coverage

The Center for Disease Control and Prevention estimates prescription opioid misuse in the U.S. cost $78.5 billion per year; affecting medical spend, productivity, and law enforcement supervision.

Substance abuse does not discriminate on any demographic, however if your business is construction, entertainment, recreation, or food service, the National Safety Council found your employees are twice as likelyas the national average to have substance abuse disorders.

Secondly, you need to take action. The most important thing an employer can do is to have a proactive plan in place to help your employees live a healthy lifestyle. It is easy to get in the habit of saying “that does not happen here,” but the reality is substance abuse can — and does — happen anywhere.

Solving the opioid crisis won’t happen overnight, but here are some steps to take to build a better relationship with your employees and quite possibly help someone overcome a substance abuse problem.

Train your staff. Explain what resources are available to help them help your employees. If you have an employee assistance program in place, leverage it, and have the information easily available so any employee can access the information at any time. This will help lower the fear barrier for employees who are not ready to ask someone they know for help. If you do not have the right resources in place today there are many programs available, and it is important that you adopt one that will fit your culture and help employees be high performers.

See also: Employers take steps to address opioid crisis

Show employees you care. Look for signs and symptoms that an employee might have a problem with substance abuse. Make sure supervisors, managers, and team leaders are aware of these signs and what actions they should take. Have an open door policy, and make sure your employees feel they can ask for assistance when they need it. It is important to know how to handle sensitive, often painful, discussions in a professional and action-oriented manner. It is essential that you have the right steps in place to ensure leadership is aligned with the organization’s strategy on how best to help your at-risk population.

Be transparent. Have clear policies in place that promote a drug-free workplace. Consider expanding your drug testing panel to include opioids.

Share the savings. Consider sharing the dollars a successful well-being program will save your organization’s bottom line through lower prescription drug costs and less lost productivity due to illness and time away from work.

See also: Taking A Page From Pharma’s Playbook To Fight The Opioid Crisis

If your organization is struggling with how to successfully address the challenges of substance abuse and opioid addiction, seek out employee benefit consultants to help you develop a strategy for success. Like anyone with an addiction, there is no shame in asking for help.

SOURCE: Panning, C (7 September 2018) "The days of employers ignoring the opioid crisis are over" (Web Blog Post). Retrieved from https://www.benefitnews.com/opinion/employers-cannot-ignoring-the-opioid-crisis?feed=00000152-a2fb-d118-ab57-b3ff6e310000


Construction Risk Advisor: September 2018

Industry Overspending $177 Billion Per Year

The average time construction professionals in the U.S. spend on avoidable issues like conflict resolution, rework and looking for project data costs the industry over $177 billion annually, according to a new report.

The participants surveyed for the report said they spend 65 percent of their time on “optimal” activities like communicating with stakeholders and optimizing resources that keep projects on track. They spend the remaining 35 percent of their time on “nonoptimal” tasks like hunting down project information, resolving conflicts and dealing with mistakes that require rework. That amounts to almost two full working days lost per person each week.

Some of the reasons for the nonoptimal costs include poor communication, constrained access to data, incorrect data and the lack of an easy way to share data with stakeholders. Another possible reason is that more than 80 percent of the survey’s respondents said they don’t use mobile devices to collaborate and access project data, despite the fact that mobile devices could help them work more efficiently.

Newsletter Provided by: Hierl's Property & Casualty Experts

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States Say Contractors Must Guarantee Wages

Maryland’s General Contractor Liability for Unpaid Wages Act becomes effective on Oct. 1, making private contractors for prime construction projects in the state financially responsible for unpaid wages of subcontractor employees. And unless the reason for nonpayment is related to a legitimate dispute, general contractors could be held responsible for up to three times the amount owed, plus attorney fees.

California and Oregon also enacted similar laws earlier this year. In California, general contractors are now liable for the unpaid wages of any employee who furnishes labor to or through them, plus unpaid benefits and interest.

Oregon’s wage protection law creates liability for the general contractor only if the worker’s subcontractor employer has not yet been paid in full.

Mitigating The Risk

In order to reduce the risk of general contractors having to pay their subcontractors’ employee wages, some industry experts are recommending that subcontractors provide their own payment bonds.

Opponents of the recent laws argue that it could be difficult for subcontractors on rocky financial ground to meet bond underwriting requirements. And since large projects could require several new bonds per job, overall project costs could increase significantly. Plus, if subcontractors don’t pay up, prime contractors will have to pay twice for the same labor.