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Tim Kessel – Worksite Modification ConsultantPreferred Worker Program

Brian Nease - Worksite Modification ConsultantPreferred Worker Program

Proposed Rules Projected to be effective 1/1/2017

EAIP and PWP Oregon’s Return to Work Programs

Benefits with Proposed Changes

The Workers’ Compensation Division will soon publish a number of revised administrative rules:

• OAR 436-050, Employer/Insurer Coverage Responsibility

• OAR 436-060, Claims Administration

• OAR 436-105, Employer-at-Injury Program

• OAR 436-110, Preferred Worker Program

• OAR 436-120, Vocational Assistance to Injured Workers

• As we review the rule changes today, please keep in mind that the division has not adopted final rules, and that we are still reviewing and considering testimony received at the public hearing of Oct. 24, as well as written input. Based on the testimony, the division may make changes to the proposed rules. We expect to publish final rules by the end of November, and all of the rules will go into effect on Jan. 1.

• If you do not currently receive rulemaking notices, you may subscribe to “Email updates” on the Workers’ Compensation Division’s homepage. If you have difficulties subscribing or have questions about the rulemaking process, please contact the division’s rules coordinator, Fred Bruyns, 503-947-7717.

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Preview

• Employer at Injury Program (EAIP) & Preferred Worker Program(PWP) Benefits with Proposed Changes

Return to work programs

How are the programs funded?

• Workers’ Benefit Fund (WBF).

• Oregon workers and employers currently pay 3.3 cents per hour.

• As of January 1, 2017, 2.8 cents per hour.

Employer-At-Injury Program

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General Changes to the Rules• Housekeeping

• Definitions

• Request for reconsideration

Employer-At-Injury Program

EAIP is designed to encourage re-employment of qualified Oregon workers who incur injury-caused limitations from an on-the-job injury

Employer-At-Injury Program

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Return to work programs

How is EAIP designed?

• Available when the claim is open

• Speeds return-to-work

• Lowers claim costs

• Keeps workers working and productive

Employer-At-Injury Program

When are you notified about EAIP by your Insurance Carrier?

• Upon acceptance or reopening of a claim; and

• Within five days of a worker's first release for work after claim opening unless the release is for regular work

• Required notification language

Employer-At-Injury Program

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Employer at Injury Program

Insurer responsibilities

Assist the employer to:

• Obtain medical releases

• Identify transitional work

• Process wage subsidy requests

• Make worksite modification purchases

• Make EAIP purchases

• Request reimbursement from WCD

Employer-At-Injury Program

What Starts the Employer-at- Injury Program?

• 436-105-0500 (5) Medical releases.

Employer-At-Injury Program

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436-105-0500(6) Required documentation.

a. Worker’s claim file

b. Medical releases

c. Documentation of the transitional work

d. Payroll Records

Employer-At-Injury Program

Employer at Injury Program

Employer Must:

• Maintain Oregon workers’ compensation insurance coverage

• Be the employer-at-injury

• Employ an eligible worker.

Employer-At-Injury Program

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Employer at Injury Program

Worker Must:

• Have a claim for an Oregon workers’ compensation injury or occupational disease claim at the time of the Employer-at-Injury Program

• Not be covered by the Injured Inmate Law

Employer-At-Injury Program

What benefits are available?Wage subsidy – 45% of gross wages for transitional work:

• Limited to 66 work days within a 24-consecutive month period

• May not start or end with paid leave

• Paid leave cannot exceed hourly restrictions

Employer-At-Injury Program

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EAIP Purchases

Clothing -

$400

Tools & Equipment – combined with

worksite modification for a total of

$5,000

Extended Warranties that are in addition

to the standard or manufacturer’s

warranty are not reimbursable

Tuition, books, and fees -

$1,000

Employer-At-Injury Program

Worksite Modification� Up to $5,000 (combined with the Tools and

Equipment category) for altering a worksite (rent, purchase, modify, or supplement)

� Must be ordered during EAIP

� Reimbursable if employer purchased in good faith and worker refuses to return to work

Employer-At-Injury Program

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Worksite Modification (continued)� Property of the employer

� Insurer determines appropriate worksite modification for worker

� Must link the modification to the accepted conditions

� Insurer documents reason for approval

Employer-At-Injury Program

Worksite modification Examples

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Worksite modification

Worksite modification

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When does eligibility end?• Claim is closed

• Worker or employer are no longer eligible

• Sanctions issued against employer

• Preferred Worker Benefits are started

• Insurer can end EAIP at any time while claim is open or when PWP benefits are accessed

The Employer-at-Injury Program

Suggestions for successful EAIP use:• Identify EAIP jobs before the program is needed

• Encourage the use of EAIP benefits to offset costs (e.g., use wage subsidy reimbursement to hire a temp to help with lost productivity)

• Use EAIP reimbursements to purchase safety equipment for the employer’s RTW programs

The Employer-at-Injury Program

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The Preferred Worker Program

Assisting eligible injured workers return to work

Who are Preferred Workers?A person is designated a preferred worker because he or she has some measure of permanent work restrictions due to an accepted workers compensation claim that prevents return to their job at injury.

The State of Oregon Workers’ Compensation Department has issued over 20,000 Preferred Worker cards since 2000. This is a lifetime

benefit and does not expire.

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Preferred Worker Eligibility

Key Point

Work restrictions prevent Preferred Workers from returning to their job at injury. They do not prevent them from working or take away the Skills, Knowledge, andExperience they can bring to an employer.

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What does it mean to be a Preferred Worker….

Benefits and incentives to help you return to work.

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A Preferred Worker is prepared to do the job

Clothing

Clothing benefit to

assure that the worker

has the necessary

work clothes

Tools and Equipment

Provides the tools and

equipment that an

employer requires their

workers to possess.

Training

Funding for training and certifications to give the preferred

worker the skills to get

the job done.

Other possible assistance

Moving

Union DuesRepairs

Occupational Certifications

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A Preferred Worker can lower Employer costs and risk

Premium ExemptionAn employer does not

pay worker’s comp premiums or premium

assessments on a preferred worker for

three years.

Claims cost reimbursement

Protects the employer from the costs of a new

claim if the preferred worker has a new

injury during the three year exemption period.

Wage Subsidy

50% of wages may be

reimbursed for 6 months.

Example:

Full time concrete worker paid $15/hour.

Insurance premium $6.43/ $100 wages

$31,200 = $2006 per year x 3 years

equals

$6018

Wage subsidy$15/hr. x 160hrs =

$2400 x 6 months x 50%

equals

$7200

$13218 saved!

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Helping business grow

Worksite Creation

Funding to create a worksite when a

Preferred Worker is hired into a new

position.

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NCCI

A low cost workers compensation policy for employers who only have a preferred

worker as their employee(s)

www.ncci.com

Great for new or very small businesses!

Assure the worker can do the job

Worksite Modification

Tools, equipment, and worksite redesign needed to overcome injury-caused limitations so the preferred worker can do the job.

Modification results in a safer, more productive workplace for all employees

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Building Material company on the Oregon Coast

In 2013 a building material company hired a Preferred Worker to load material for customers in their lumber yard. The worker offered them

a wage subsidy as part of their hire. Worksite modification purchased a used forklift to allow worker to load materials within his

lift restrictions. As the lumber yard is a few blocks away from the main building, they requested worksite creation to purchase a cash

register system so that he could cash people out at the yard.

Putting it all together:

Benefits used:

Worksite Creation - $3675

Worksite Modification - $5900

Clothing - $400

Wage Subsidy - $5900

Benefits can be requested for 3 years from hire date for a job or date of eligibility, whichever is later.

The employer has been in touch over the years to discuss potentially adding new job duties and accessing the training benefit as well as an

additional creation use as the worker moves up.

Putting it all together:

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Placement Benefit

$1000 lifetime for upfront services such as: Interview practice

Resume writing

Online applications

Skills assessment

Job Development

A Preferred Worker is given the following to assist with obtaining a job

Placement Benefit

$500 for placement in a job

$500 if job lasts 30 or continuous more days

3 uses of each of the following:

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Who is eligible to provide placement services?

Placement assistance requested by a preferred worker and provided by a certified vocational counselor or any public or

private agency that provides placement services.

Rule 436-110-0345 (2)(i) states:

What other assistance is available?

The Preferred Worker Program posts jobs for employers who are looking specifically for Preferred Workers.

For more info, contact us at 800- 445-3948

Oregon Office of Vocational Rehabilitation Services (VR)

VR assists individuals with disabilities to get and keep a job that matches their skills, interests and abilities.

Preferred Workers are eligible for the free services of VR

VR offices are located throughout Oregon.

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For more info, contact us at 800- 445-3948

Be sure to check our Facebook page for job postings and other employment related information. State of Oregon – Preferred Worker Program

For more information:

Brian Nease

Worksite Modification Consultant

1-800-445-3948 x7574

brian.a.nease@oregon.gov

www.oregonpwp.com

Facebook: State of Oregon – Preferred Worker Program