In Indiana, an employee is not eligible for lost wages due to a work related accident until after they have been off for seven days. That seems pretty straightforward. An employee injured on Friday would be eligible for payment of lost wages only if they missed the entire next week.
While that is correct, there are many nuances that come into play. For example, weekend days count in the calculation. If an employee misses Friday, then Saturday and Sunday count as missed days. If an employee works Friday, Saturday and Sunday DO NOT count as missed days.
That's a key issue if we are trying to keep from paying for lost wages. If an employee has to miss work due to an injury, try to make it not be on Friday. Many injuries requiring medical treatment will require follow up. However, with the use of a good alternative duty program, it won't require missed work other than doctor appointments. Work with your employee, the physicians, and your insurance carrier to make sure those appointments aren't on Friday.
In all of this, communication is key. Make sure the employees knows he isn't being penalized or taken advantage of in any way. By providing him an alternative duty job, you are allowing him to be around his co workers and friends and stay in a normal routine, which may aid in healing. By being in on Friday, he is helping the company, but also getting the chance to socialize with co workers about weekend plans. The same goes for Monday. Try to have them at work on Monday too. I also suggest paying them for the days they have to go to the doctor, and having them report to work afterwards to update you on their status.
Even a serious injury, requiring surgery could result in no "paid lost work days." Most surgeries anymore are one day stays. While it isn't feasible in every case, I could see an employee being at work the day after an outpatient surgery. In no way am I mandating an employee comes in the day after surgery, or attempting to endanger their health. If circumstances require, they need to stay home. But again, in many cases, they can recuperate while fulfilling some function to the company.
When an employee is working in a light duty capacity, they don't have to be paid at their normal rate. They can be, if you so choose. However, the pay can fit the job they are doing. If it dips below the 66 2/3% wage replacement they would receive under workers' compensation, then the difference is paid to them by the carrier.
In that scenario, we would lose the benefit of the 70% medical cost reduction. But at that point, we are now saving lost wages from being included in the experience modification. So a worker earning $52,000 a year would get $667 a week in lost wages payments. If you pay them $10/hour to work 30 hours while recuperating, then you would cut $300 out of that payment. That reduces the impact on your mod by 50% and the employee receives the same money.
There might even be a case to be made that they will recuperate faster and better by being in the company of employees and friends, doing some light work instead of sitting on the couch, and desiring to get back to their normal job.
In our final segment, we are going to talk about large reserves and their impact on the mod sheet.
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