# Workers’ Compensation Basics for Plumbers



## PlumbingZone (Feb 10, 2016)

Workers’ compensation is an insurance policy that provides financial and medical help to anyone who is injured or becomes sick while on your payroll. 

It's the oldest social insurance program in the country, having been adopted in most states in the beginning of the 20th century – basically a legal compromise between workers and business owners when it comes to employees who become sick or injured on the job. Employees will receive prompt medical care with no cost to themselves and will even have some money coming in if they're off work for an extended time. In return, the business is protected from any lawsuit resulting from the injuries or illness.

Who is Covered?

Virtually everyone who does any type of labor for your company is covered under workers’ compensation laws. This includes:

•	Salaried employees
•	Hourly employees
•	Interns
•	Temporary workers
•	Subcontractors​
Available Benefits

Two basic types of benefits exist: cash payments and medical benefits. Cash payments are only paid after the first seven days off work, unless the time off equals more than 14 days. In this case, the amount earned for the first seven days would be paid, as well. The amount of cash given is a percentage of the workers’ weekly wage, not including overtime.

Medical benefits apply to all injured or ill workers, beginning from the first day they are away from the job. They cover all medical expenses related to the original injury or illness that originated on the job. 

The health care provider must be one authorized by the Workers Compensation Board, except in cases of emergency. Included are diagnostic tests such as MRIs, X-rays, blood tests or any other diagnostic tools needed for thorough medical care and treatment. The benefit also covers any needed medication or follow-up visits required by the attending physician.

Return to Work

It's to your advantage to establish a set of standards for returning to work. Employees who come back to work before they're fully recovered are more likely to re-injure themselves in the coming days. 

Also, workers who are only working at a percentage of their peak level will affect your work schedule and quality. Creating a policy of requiring full recovery before returning is the best for all involved. 

This should be emphasized in all employee handbooks, at beginning orientation and whenever an employee applies for workers’ compensation. Urging an employee to get back to work as soon as possible is almost always a bad idea, no matter how short-handed he leaves your team. Allow your worker time to recover to ensure he comes back 100 percent ready and able to do a full day's work.

Cost Cutting

The best investment you can make in prevention of workers’ compensation claims is to train employees and supervisors in safety and accident prevention. An employee who's seriously injured becomes less and less likely to return to work the longer he's out on compensation. 

In order to keep your trained plumbing team in place without having to train new recruits, preventing injuries before they happen is the best policy. Make safety training a featured part of new employee orientation and emphasize safe practices on the job at all time.

Disputes

The majority of workers’ compensation claims are settled with no problems or questions, but occasionally an argument may arise as to where or when the injury actually occurred or how the employee got sick. 

In case of disputes like this, your state's workers’ compensation board will hold a hearing to determine the validity of the claim. Each state's procedure is different, but in general each side will have to present proof such as time cards or signed statements to prove when the injury happened and whether or not the employee was on the job at the time. 

Dispute resolution can include an arbitrator for compromise regulation or might more resemble a court procedure, depending on your state. 

Do I Need Workers’ Compensation Insurance?

Most states require all employers to carry workers’ compensation insurance. The few who don't require the companies to self-insure with an elaborate set of regulations to ensure each worker is covered. 

Failure to provide workers’ compensation insurance can result in hefty fines, loss of business or worse. Even small companies with only one employee or companies that only hire temporary workers have to pay for insurance for their workers.

In some states, all insurance companies are required to offer and administrate workers’ compensation insurance, while in others it's an option rather than mandatory. Your state workers’ compensation board can advise you on the laws in your state and the procedures for acquiring your company's insurance policy.


----------



## plumberkc (Jun 23, 2011)

Did you post an intro?


----------



## Admin (Jan 4, 2010)

plumberkc said:


> Did you post an intro?


It's an admin account. 

I posted an announcement about the new section for articles here. 
http://www.plumbingzone.com/f49/new-featured-articles-topics-forum-58690/


----------



## ShtRnsdownhill (Jan 13, 2016)

plumberkc said:


> Did you post an intro?


:laughing::laughing::laughing::laughing::laughing::laughing::laughing::laughing:.....................
on a serious note..the illegals you pick up at home depot for a days work know the system very well..even though they are illegal in the country, they are still covered my workers comp...so they work a day or week with you then create an injury while working for you and collect workers comp...one private workers comp company had so many claims they where not aloud to renew policies, so New York State insurance fund took over most workers comp policies here..I have seen a few businesses( not plumbing) get pinched with some huge fines for playing games with not putting workers on there comp policy till they had an injury, except the state looks back on payroll and they will interview other employees as to when the person started working for you..then the state can audit your books to see what else they can find...its the 5 gallon ky moment....


----------



## cjtheplumber (Mar 9, 2012)

What I want to know is how do we keep the cost down on this insurance?


----------



## justme (Jul 4, 2012)

cjtheplumber said:


> What I want to know is how do we keep the cost down on this insurance?


Drug test and physical for all employee's before hiring and any other time you feel there is a need , continuous safety program and stay on all your employees to be safe and not to do anything that is dangerous without the proper safety protocols and equipment in place. OSHA 10 and 30 training is highly recommended, properly trained to operate all equipment you offer or is necessary. Safety is very expensive but injuries are a lot more costly. I would rather spend the money on the safety aspect than have to make a phone call to one of my employee's wives saying there was an accident and they're gone.


----------



## BOBBYTUCSON (Feb 8, 2013)

im a oms, would i benefit from getting workers comp on myself ?


----------



## Phat Cat (Apr 1, 2009)

justme said:


> Drug test and physical for all employee's before hiring and any other time you feel there is a need , continuous safety program and stay on all your employees to be safe and not to do anything that is dangerous without the proper safety protocols and equipment in place. OSHA 10 and 30 training is highly recommended, properly trained to operate all equipment you offer or is necessary. Safety is very expensive but injuries are a lot more costly. I would rather spend the money on the safety aspect than have to make a phone call to one of my employee's wives saying there was an accident and they're gone.


All good points. One thing you cannot control is the dishonest new employee looking to make an accident happen, nor what other companies do. Our rate has gone up because our "industry classification" had more claims. :furious:


----------



## Master Mark (Aug 14, 2009)

Phat Cat said:


> All good points. One thing you cannot control is the dishonest new employee looking to make an accident happen, nor what other companies do. Our rate has gone up because our "industry classification" had more claims. :furious:



we had that happen to us with some skumbag years ago who got his ass kicked in a bar fight then limped into work and faked a ladder accident on a construction site and claimed he dis-located his shoulder .....

he milked the system for all he could get,,,, shoulder operation, months off work ect ect......
He even tried to claim that our ladders were not up to code and it was our fault ect ect...


he finally went too far and found a doctor who would write him extra pain meds which he was selling and got caught....

.and that ended that.:laughing:.


----------



## wharfrat (Nov 1, 2014)

We bought a guy a new hip. 8 months later he returned to work. 2 months later he quit.


----------



## Plumbus (Aug 4, 2008)

A subcontractor is only covered by those foolish or inexperienced enough not to get the sub's certification of insurance.


----------



## justme (Jul 4, 2012)

Great point Plumbus, we have a 9 page subcontractors packet that they have to fill out and provide all insurance plus add us as a rider on their insurance policy before I will use them. The packet has a contract that lays out our terms and the sub must list their hourly rates and such, plus the packet covers general liability and auto liability also not just workmens comp.


----------



## PLUMBER_BILL (Oct 23, 2009)

*work comp claim*

*A hardware retailer hired a new man. The job description was to remove tiles on the 2nd floor which were obsolete and take them to the lower level where they were to be discarded. After 1/2 hour on the job the new employee was injured. The following is the report submitted by the employee as to how the accident happened.*

*"Thinking I could save time on my new job I rigged a beam on the roof of the building, on this beam I fastened a pulley. Through the pulley I put a rope. I went to the yard below and tied a barrel to the rope. I pulled on the rope and the barrel went to the 2nd floor. I tied the rope to a tree. I then went back to the 2nd floor and filled the barrel with tiles. When the barrel was full I went down and untied the rope from the tree. Unknown to me the barrel weighed more than I did. I was jerked off the ground. So as not to fall I held on to the rope. Halfway up, I met the barrel coming down. I received a severe blow to my left shoulder, continuing up I banged my head on the beam, my fingers were pinched in the pulley. When the barrel hit the ground it broke open spilling the tiles on the ground. I now weighed more than the barrel. On the way down I met the barrel coming up. I received severe lacerations to my shins. When I hit the ground I landed on the tiles receiving severe cuts and contusions. At this point I must have become confused and let go of the rope. The barrel came down striking me on the head, and I woke up in the hospital."*

*I respectfully request Workmen's Compensation Insurance. *
*
*


----------



## Plumbus (Aug 4, 2008)

As Bill so aptly illustrates, new employees also need training and supervision.


----------



## Plumber (Jan 18, 2009)

BOBBYTUCSON said:


> im a oms, would i benefit from getting workers comp on myself ?


Yes and no. If you don't have a financial cushion (savings, medical insurance, etc), it helps covers bills and pays for time missed at work. I've had it at least 50% of the time. I don't have it now because I'm good, but during the Great Not-A-Depression Recession, I sure had it all the time. 

My state requires I report my own hours at 160 hours/month at $2.00 per hour, which is cheap for all they offer.


----------



## plbgbiz (Aug 27, 2010)

BOBBYTUCSON said:


> im a oms, would i benefit from getting workers comp on myself ?


You might find that an overall personal disability policy to be better. There is no perfect answer though. It all boils down to where you feel you and your family are at the most risk and how best to offset that risk. The worker's comp only cover's you if you can prove it happened while working. And the cost for an owner to be covered is sometimes pretty high.


----------

