Employee Safety for Staffing Companies & PEOs

Course Objectives

Best practices for Staffing Companies & PEOs

Learn to reduce injuries, illnesses, and workers’ compensation costs Improve communication between staffing organizations and host companiesUnderstand OSHA requirements for safety and health, legal issues, and OSHA recordkeeping

Course Objectives (continued)Best practices for Staffing Companies & PEOs

Understand NCCI classifications Evaluate safety of host/client

Differences between PEO and staffing company (legal, ownership, and responsibilities)Available resources

Course Sections

1. Definitions 2. Loss Control Best Practices 3. Legal

Part 1Definitions

TerminologyContract worker- Provides a specific

service to a company which must include supervision and assumes more responsibilities than a staffing company.

Staffing- Skilled/unskilled workers sent out under client/host regulations, host watches over worker, manages time/task, may or may not want to hire full-time

Associate is preferable to “temp worker.”

Terminology (continued)

Onsite- Temporary worker administration at host/client site although the actual task/work performed for the host is supervised by the host company.

Host company is defined as the company that utilizes temporary workers.

Staffing company is preferred to “temp agency.”

PROFESSIONAL EMPLOYER ORGANIZATION

Provide integrated services to manage critical human resource responsibilities and employer riskEstablish and maintain an employer relationship with the employees at the client’s work siteContractually assume certain employer rights, responsibilities and risk

Staffing Employment Agency

BWC defines “as an employer who is in business of employing individuals for the purpose of utilizing the services of the individuals for a temporary period”

Example: BWC contracts with a staffing agency to hire a temporary employee to fill a vacant position

Similarities of PEOs & Staffing Companies

Specific requirements are spelled out in a contractMight have additional benefits for employees

401K heath insurance

Similarities (continued)

Responsibilities Local, state and federal taxesEmployment taxes

WC coverage Provided to employees by the temporary staffing companyMay be provided by PEO

Part 2Loss Control Best Practices

Client Risk AssessmentJob DescriptionsProhibited Jobs

Before Placement AssessmentLoss Prevention Management

Loss Control best Practices (continued)

Injury Reduction StrategiesClaims ManagementSafety QuestionnaireDrug Testing

Client Risk Assessment

Written procedures for new client:

Details expectations of the client/employer relationshipSegregation of responsibilities and authority

Client Risk Assessment (continued)

WC carrier pre-approval or documentation of notice (sent to carrier of Staffing Company/PEO)Specific job classification- descriptionsIndustries/jobs that will not be included in agreement (restricted jobs)

Job Description

Good Job Description includes:

Example tasksPPE requirementsSafety requirements (e.g. attend safety orientation)Exclusions (e.g. no operation of press brake)Additional hazards (e.g. confined spaces)

Possible Prohibited Jobs/Industries

Unsupervised JobsRoofingTrenchingHazardous wasteBiological wasteOccupied domicilesFoundry (pours)

Prohibited jobs can be determined by either the PEO/Staffing Agency or its Insurance Carrier.

Before Placement – Assess ClientSafety Training – “OSHA Alliance”Safety ReviewsJob Description/Prohibited JobsOSHA Establishment Search

www.OSHA.govStatisticsInspection DataEnter Company NameState

Client Risk Assessment

Assessment of client’s WC history

Description of business operationList of states (operating)Copy of 3-yr loss run (minimum)OSHA reportsCopy of existing safety manual(s)

Client Risk Assessment (continued)

Payroll by class code, tax and/or payroll reportsSite assessment of all locations with high hazard exposureEvaluate frequency/severity of claims

Loss Prevention Management – Injury Reduction Strategies

Comply with Loss Prevention Requirements:

Written policies/procedures that must be followed by clientDocumentation of compliance and action taken for non-compliance of clientSafety “needs assessment” conducted with all new clients

Loss Prevention Management – Injury Reduction Strategies (continued)

Provide some type of loss prevention services Have loss prevention services available for clientPeriodic review of client compliance issues• Action plan?

Claims Management

Timely notification of all incidents & injuries

Set deadlines for notification • Example: 24/48 hrs after

incident

Provide standard forms for all clients• Have client complete during

notification of injury

Claims Management (continued)

Initial contact with injured workers who miss at least 3 days; then set up regular contact when IW misses more than 7 daysHave experienced claims manager regularly review all open claims:

Ensure proper managementTreatment plan in place (RTW, rehab, physical therapy, etc.)

Claims Management (continued)Conduct accident investigations

Serious injuries/deathRepetitive incidents

Periodic reviews with clientRegarding loss runs or claims analysisMinimum: annuallyBest practice: monthlyMake available periodic loss runs/comparison report

Claims Management (continued)

Establish goals with each claim • Work with client to achieve set goals

Address employee complaintsConduct post-agreement safety questionnaire

Possible Safety Questionnaire

1. What safety training did you receive by the host employer prior to starting job?

2. Are you required to wear any personal protective equipment? If so, was it provided?

Possible Safety Questionnaire (continued)

3. Are you currently performing the job functions as described to you by our staff?

4. Do you feel that there are any unsafe aspects or hazards associated with your job? If so, please explain.

Drug Testing

Minimum of a DFWP Level 1 programPre-employment testingReasonable suspicion of drug usagePost-accident

PROGRAM MUST BE CONSISTENTLY APPLIED!

Part 3Legal Issues

Workers’ CompensationViolation of a Specific Safety Requirement (VSSR) Manual ClassificationsMedical SurveillanceSafety Training

Legal Issues (continued)

Personal Protective Equipment (PPE)OSHA Requirements

RecordkeepingFines

Other Considerations

Workers’ Compensation

Who is responsible for Workers’ Compensation?

Host Employer? Staffing Employer?PEO?

Staffing employer/PEO-hire the employee that is being utilized by the host employer

VSSR

Who will be responsible for a VSSR?

The host employer will be the employer of record in regards to VSSR filing.

Manual Numbers

Why does the Staffing Agency/PEO need the host employer’s manual number(s)?

BWC legal requirement Proper manual claim assignment Payroll reporting BWC ratemaking Service fee determination

OSHA Requirements

To whom do the following OSHA requirements apply?

RecordkeepingFinesMedical surveillanceSafety Training (General and

Specific)

Recordkeeping

Whoever provides day-to-day supervision of the employee is responsible for recordkeeping.

Fines

Fines may be levied to the host employer and/or staffing agency/PEO depending on the circumstances.

Medical Surveillance

When medical surveillance or monitoring is necessary, the host employer must offer and perform this requirement.

Medical Surveillance (continued)

The staffing agency/PEO must ensure that the records of the required medical surveillance or evaluations are maintained in accordance with the appropriate OSHA standards.

Safety Training

What is the general rule for generic training?

The staffing agency/PEOs are

expected to provide some generic training.

Safety Training (continued)

Who is responsible for site specific training?

The host employer must still certify that the required training has been provided "when the employee has demonstrated proficiency [to the employer] in the work practices involved."

Safety Training (continued)

General – Choice (soon to be Alliance)

1. Safe lifting practices 2. Ergonomics 3. Personal protective equipment4. Electrical safety5. Machine guarding6. Fall hazards and protection7. Chemical hazard communication

PPE

Who is responsible for PPE? Host employer is responsible for

providing PPE for site-specific hazards to which employees may be exposed.

PPE can be a contractional issue between the host employer and staffing agency/PEO, but enforcement is the responsibility of the host employer.

Other Legal Considerations

What other Legal Consideration must be considered?

Intentional Tort

Third Party Liability(subrogation)

Criminal Liability

Questions?