Staying Safe Will Save You Money

Workers and families bear brunt of the cost of workplace injuries.

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It’s a common refrain, “We’re all responsible for safety.” But when it comes time to pay the bill for a workplace injury, most of the responsibility falls to the injured worker. 

That’s according to a new report from OSHA, Adding Inequality to Injury: The Costs of Failing to Protect Workers on the Job. “For many, a workplace injury or illness means the end of the American dream and the beginning of a nightmare,” says Dr. David Michaels, assistant secretary of labor for Occupational Safety and Health. 

According to the report, injured workers, their families and taxpayer-supported programs pick up most of the tab. “Changes in state-based workers’ compensation insurance programs have made it increasingly difficult for injured workers to receive the full benefits (including adequate wage-replacement payments and coverage for medical expenses) to which they are entitled,” the report states. 

Fewer than 40 percent of eligible workers even apply for workers’ compensation. Studies show fewer than 50 percent of those suffering work-related amputations in Massachusetts received any workers’ compensation benefits; just one-third in California. 

Who bears the cost of worker injuries*?

Employees and families – 50 percent

Workers’ compensation – 21 percent

Private health insurance – 13 percent

Federal government – 11 percent

State and local government – 5 percent

*Lost wages and medical costs for injuries and illnesses 

Those with illnesses get even less, with up to 97 percent receiving no compensation. “Most cases of work-related chronic disease are never diagnosed as work-related,” the report says. “Even when a proper diagnosis is made, a worker who is eligible for benefits under Medicare, Medicaid, veterans’ benefits or private insurers is more likely to take that route and avoid the barriers to obtaining benefits through the workers’ compensation system.” 

The trend continues for years after an injury. A New Mexico study found those who received workers’ compensation earned 15 percent less over the next 10 years. Caregivers also often have to reduce their own work hours to care for a disabled family member, the report says. “For working families already struggling to meet basic necessities and set aside some savings, a work injury to a primary wage earner can be especially devastating.” 

There are also concerns over the growing trend of having more contractors and temporary employees working on project sites. If several firms employ workers at the same site, and employers do not actively collaborate to ensure safe workplaces, all workers at the site may be at a higher risk of injury. OSHA says it often cites employers for endangering employees of other companies working at the same job site. 

Misclassifying employees as independent contractors is also an issue for OSHA, since they are not covered by the general duty clause of providing a safe workplace, and companies don’t have to pay workers’ compensation premiums for them. That not only shifts the cost to the workers, their families and tax-funded programs, but affects other employers, according to the report. “These honest employers are put at a disadvantage, having to compete with scofflaws who ignore safety and health requirements, and shirk paying taxes, benefits and insurance premiums.” 

More than 3 million workers suffer serious injuries every year. In 2013, the last year for which full data is available, workplace accidents killed 4,405 people, an average of 12 deaths per day. 

Preventing those injuries is the most effective solution, according to OSHA’s report. “This would spare workers and their families from needless hardship and suffering, as well as the loss of income and benefits associated with these conditions. At the same time, it is vitally important that state-based workers’ compensation programs take steps to eliminate roadblocks that prevent workers with compensable injuries or illnesses from receiving the full compensation to which they are entitled.”



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