The Impact of Return-to-Work Programs on Loss Time Wages and Workplace Recovery

Written by Cheryl Gulasa

It’s no secret that loss time wages pose a significant challenge for employers in the U.S. When employees are unable to return to work due to injuries, the financial and operational strain can weigh heavily on businesses. Return to work initiatives have emerged as a promising solution to this problem, by facilitating modified work opportunities for recovering employees.

UNDERSTANDING LOSS TIME WAGES

Loss time wages occur when an employee is unable to perform their job duties due to injury or illness, resulting in lost income and increased costs for the employer. These expenses can escalate quickly, leading to higher insurance premiums and strained relationships between workers and management. To mitigate these issues, proactive measures are essential.

HOW DO RETURN TO WORK INITIATIVES ADDRESS THIS ISSUE?

Return to Work Initiatives operate under the workers' compensation framework and aim to reduce indemnity costs while finding innovative ways to promote employee reintegration. These initiatives rely on a structured approach to determining the suitability of modified work. The key steps in the process are:

• Assessment of Employee Needs: When an employee is injured, an assessment is conducted to evaluate their physical capabilities and limitations. This assessment considers medical recommendations and focuses on what tasks the employee can safely perform.

• Collaboration with Employers: The initiative promotes open communication between medical professionals and employers. By discussing available modified duties, employers can understand how to accommodate their employees effectively.

• Implementation of Modified Roles: Once suitable tasks are identified, employers can develop modified roles that fit within their operational needs. For example, we had a case where an employer indicated that modified duty was unavailable, RTW initiated contact within three business days to further review options. They collaborated with the employer to identify appropriate sedentary tasks for a Purchasing Assistant role. Within 10 business days, the employee was able to return to modified duty, creating requisitions, entering data, counting inventory, and filing paperwork. This modified duty continued successfully until the employee received a release to full duty from their treating physician.

• Ongoing Monitoring and Support: Regular check-ins and adjustments are crucial to ensure the employee's comfort and progress. This support system fosters a positive work environment and enhances the likelihood of a full return to regular duties.

A WIN-WIN SCENARIO

These initiatives offer numerous benefits for both employers and employees. For employers, one of the most significant advantages is cost savings. By reducing indemnity costs associated with lost time wages, companies can lower their workers' compensation insurance premiums. This financial relief can have a substantial impact on overall operational costs. Additionally, engaging employees in modified roles helps maintain productivity levels, minimizing disruptions to operations during recovery periods.

For employees, reintegrating into meaningful work has been shown to expedite recovery times in some cases. Contributing to the workplace, even in a limited capacity, helps provide a sense of purpose and normalcy during a challenging time. For both, these initiatives require open transparent communication between employee and employer. This engagement has been shown to foster trust and collaboration leading to a strong workplace culture. Additionally, open communication is an excellent mitigator of fraud in worker’s compensation – ensuring prompt, accurate and regularly recorded documentation throughout the recovery process.