Employers have to stop giving so much of their hard earned money to Workers’ Compensation!

It’s that time of year when workers’ compensation sends their annual assessment invoices in the mail. If you’re like many employers, you open it, cuss a few times and add it to the pile of ‘invoices to pay or send for processing’. A few weeks later, that dreaded invoice resurfaces for signature, you say a few derogatory comments and write a cheque.

Unfortunately, companies give little thought to their workers’ compensation assessment costs. It’s time employers smartened up and started asking questions. Have you questioned whether or not you are in the right rate code and if the assigned rate is in line with your work activity? If there are penalties, how were they calculated and why? What are the claims costs and why are they so high.

As an employer you should be taking a more proactive role in questioning your workers’ compensation costs. The workers’ compensation system is funded 100% by you, the employer and you do have the control to do something about your costs.

For example, recently, DMC was contacted by a local company who were paying a higher than average assessment rate. An investigation revealed this company had previously owned and registered two businesses with the WHSCC, both were assigned separate firm numbers and each assessed using a different rate. The business with the higher assessment rate ceased operations and the account for th

at business was suspended. We found that the WHSCC had, in error, assigned some costly claims to the existing, operating company, that should have been charged to the suspe

nded company resulting in skewed/inflated claims costs and increased assessments. DMC requested the WHSCC retroactively recalculate the assessment rate of the active company and our client received substantial refunds totaling thousands of dollars plus interest.

It is quite common to uncover costs that were charged in error to companies. Unfortunately, the workers’ compensation system is very intimidating and if you don’t know what to look for, you end up leaving money in WHSCC coffers that belongs in your pocket.

Did you know that since the inception of the PRIME Practice Incentive program in NL, employers have left millions of dollars on the table at the Commission in refunds, in large part due to a lack of understanding of how the system works? How is that possible? I wouldn’t sleep at night if I knew I left money at the Commission.

Come on employers…wake up and take control. With Newfoundland and Labrador having the highest assessment rates in the Country, how can you expect to compete on a level playing field?

If you don’t understand the System, either ask questions to learn how it works or find someone who does.