A little while ago, I was contacted by a company who was paying a higher than average assessment rate. Upon review of the company’s claims history, I discovered that the WHSCC had, in error, assigned some costly claims to their account that should have been charged to another company they had previously owned but had ceased operations. The outcome resulted in skewed/inflated claims costs and increased assessments for their new company.

We were successful in having the costs removed and transferred to the old company and also requested the WHSCC retroactively recalculate the assessment rate of the active company resulting in a substantially lower rate, both retroactively and going forward. It provided our client with a substantial refund of thousands of dollars in overpaid premiums. The recalculated lower rate on a go forward basis permitted our client to be more competitive in his own industry.

We then requested the WHSCC pay interest on the retroactive amounts paid to the company and were denied forcing us to take the request to the external appeal process, the Workplace Health Safety & Compensation Review Division (WHSCRD) and were successful in arguing the client’s case. WHSCRD determined the employer was indeed entitled to interest on monies owed, and the WHSCC were ordered to pay.

Very few employers understand how the appeals process works as statistics tell us employer participation is very low and unfortunately, decisions rendered have a significant impact on employers.  We often complain about decisions, but seldom put a voice to it largely due to the fact that they are uncertain as to how to prepare or represent themselves in the appeal. Many view the process as intimidating as they do not have a firm grasp on workers’ compensation legislation or policies. Often they know the decision is wrong, but do not know how to prepare a case or where to turn for help.

Employers are major stake holders in the workers’ compensation system so don’t be afraid to question when something does not look right. You may be right!

How can this be possible?

DMC works with approximately 150 employers in Newfoundland and Labrador and I can assure you, none of our clients left any money on the table at the WHSCC.

If you are one of those companies, you need to be pay closer attention to your assessment notices. You are already paying the WHSCC a lot of money as Newfoundland and Labrador’s average assessment rates are 21% higher than the average rate in Atlantic Canada.

To find out if your company left any refunds unclaimed, you need to review your assessment invoice as there is a little box about ¾ ways down the page that will advise you if you forfeited the refund and how much it is.

By simply calling the phone number listed on the assessment notice and asking “why”, you could be pleasantly surprised. Reasons for forfeiting may be as simple as not completing a form correctly or missing a question. There is too much at stake not to give it a second glance. If you are uncertain, call me.

Before the new PRIME system came into play, refunds were applied to the base rate automatically. Unfortunately, to qualify for experience refunds under the new PRIME system, employers have to complete the necessary paperwork.

Evidently, employers lack an understanding of how the PRIME system works. Surely, they would not willingly leave their hard earned money at the WHSCC.

If during a review of your assessment, you notice that your company has forfeited your PRIME refund, you need to call and ensure the refund was forfeited and request the reason why in writing as you do have the option to appeal. It is alarming to me that the WHSCC would render a decision regarding an employers’ entitlement to a refund and not inform the employer of their legislative right to appeal the decision.

How does one get away with this?

Dallas Mercer

Employer Advocate & Owner of DMC

Employers in NL should have received or be receiving their Assessment notices now. Please take the time to look carefully at this document as your entitlement to refunds is written in the little box underneath your assessment information.

We have experienced on multiple occasions situations where clients have been advised by the WHSCC that they do not qualify for refunds, when in fact they do qualify. It may simply state that you have forfeited your refund of x amount of dollars. We had one this week where it stated that the employer had forfeited $96,000.00. It was an error, but I had to call to get it rectified.

We have been given limited explanations as to why this is occurring, but I wonder if it would have been corrected had we not questioned what was going on?

Please do not take their information at face value. You need to call and ensure the refund was forfeited and request the reason why in writing as you do have

the option to appeal. It is alarming to me that the WHSCC would render a decision regarding an employers’ entitlement to a refund and not give the employer their legislative right to appeal the decision.

How does one get away with this?

The Provincial Government announced last fall that they had amended the Occupational Health and Safety (OH&S) Regulations. What was once 189 sections had now expanded to over 500 sections leaving employers overwhelmed and confused as to how it affects their business. This overhaul was long overdue, but some think employers do not have enough notice to prepare.

Depending on the industry that you are working in, these amendments could have a big effect on how you are currently carrying out your business. NL Government Services enforces OH&S and inspectors have broad powers to inspect any workplace; investigate any potentially hazardous situation, critical injury, fatality and work refusal; order compliance with the Act and regulations; stop unsafe work from being performed; and initiate prosecutions.

As a result of the legislation, Occupational Health and Safety inspectors are now visiting more workplaces before injuries occur, focusing resources where they are most needed. In other words, to avoid trouble later, they are looking for it now so I recommend employers pay close attention to the new legislation.

Regarding enforcement, low risk violations of the new OH&S regulations will be imposed January 1, 2010.  High risk violations came into force September 1st, 2009 with the usual; written directives and potential stop work orders; and include any activity, process, or environment that can potentially cause serious injury. Examples would include fall arrest, confined space entry, guarding machines, etc.

The implementation of the new regulations also makes it more important than ever for employers to be aware of current CSA Standards as the number of CSA standards referenced in the regulations has increased significantly. In particular, the standards pertaining to Personal Protective Equipment (PPE) including foot protection, prescription safety glasses and face protection, which are now CSA approved. Prescription safety glasses also have to meet the requirements of American National Standards Institute (ANSI). You can verify equipment is CSA or ANSI approved by locating the stamp or logo on equipment.

The new regulations also highlight revisions to respiratory protection (i.e. respirators, supplied air and self contained breathing apparatus (SCBA)) in the workplace. If your workplace currently carries this type of equipment in-house now, you will be required to develop and implement a “Respiratory Protection Program” in accordance with the CSA Standard Z94.4 “Selection, Use and Care of Respirators.”

I caution you that failure to comply may result in an OH&S officer issuing written directives, stop work orders and possibly fines and charges. This can seriously impact on your ability to compete for Government contracts and may affect the bottom line and reputation of a company staying in business.

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.

 The Workers’ compensation system in Canada is based on five basic principles known as the “Meredith Principles”

• No-fault compensation: Workplace injuries are compensated regardless of fault. The worker and employer waive the right to sue. There is no argument over responsibility or liability for an injury. Fault becomes irrelevant, and providing compensation becomes the focus.
• Collective liability: The total cost of the compensation system is shared by all employers. All employers contribute to a common fund. Financial liability becomes their collective responsibility.
• Security of payment: A fund is established to guarantee that compensation monies will be available. Injured workers are assured of prompt compensation and future benefits.
• Exclusive jurisdiction: All compensation claims are directed solely to the compensation board. The Board is the decision-maker and final authority for all claims. Nor is the Board bound by legal precedent; it has the power and authority to judge each case on its individual merits.
• Independent board: The governing board is both autonomous and non-political. The Board is financially independent of government or any special interest group. The administration of the system is focused on the needs of its employer and labour clients, providing service with efficiency and impartiality.

Although these principles apply across Canada, each province’s workers’ compensation system is provincially regulated. It works as an insurance system. The more you use it, the more it costs. All incorporated entities operating in Newfoundland and Labrador (NL) must register with the WHSCC. Coverage is mandatory for all workers, including owners, directors, or managers. A non incorporated entity in not required to register if the only workers are the proprietor or partners. However, as soon as a worker is hired or sub-contracts work, they must register. There are some exclusion’s, so check with your individual province for further details.

The system provides insurance benefits to a worker or the worker’s dependents for injury, disability, or disease contracted by the worker arising out of and in the course of their employment. In NL, the system is funded 100% by employers. Chances are if you’re on this website, you’re an employer who’s looking for a way to lower your workers’ compensation costs.  Provincial workers’ compensation legislation varies greatly and they change frequently, so make sure to check the policies for information specific to your province. If an employee is injured on the job, they are entitled to payment of: 

• Medical bills
• Hospital bills
• Lost wages
• Rehabilitation
• Medications
• Mileage to/from medical providers (depending on location)
• Permanency, scarring, scarring or residual loss of earning capacity
• Labour Market Re-Entry

Stay tuned as I endeavour to help you weave your way through the complex mosaic of Workers’ Compensation.