Analyzing the Cost Benefits of Modified Work under Workers’ Compensation (Part-1)

Analyzing the Cost Benefits of Modified Work under Workers’ Compensation (Part-1)

It is a challenging situation for movers when it comes to dealing with workers’ compensation. A common question raised by them is what they could do if an employee has a doctor’s note for work restrictions for modification of work.

The answer to this challenge is that employers are not mandated for the modification of the work schedule or offer lighter duty to some employee for workers’ compensation. At the same time, the employee is not required for accepting the modified work.

However, an employer must be aware of the effects and cost benefits associated with not providing modified work and if the employee doesn’t accept the adapted work.

The main reason employers provide modified work against workers’ compensation is to keep down the experience rating of their organization’s workers’ compensation. This further helps in reducing the growth in the future premiums. If the carrier pays directly to the employee, they will not make the temporary disability payments, thus growing the experience on claims. It is possible to offer modified work so long the offered work falls within the work restrictions of the employee and that the employee is not entirely disabled.

Employers are not obliged for modifying the current job, develop some similar job or offer a job to the liking of the employee. When the employer offers modified work to the employee and he/she refuses doing it, the workers’ compensation carrier may deny the temporary disability payments to the employee.

When the employer provides modified work to an employee under worker’s compensation, it is essential to pay minimum 85% of the normal pay to that employee. The pay will also work as a form of incentive for accepting the modified work because the regular disability benefits offer only 60% of the normal pay rate.