If you are a company or an enterprise with a large worker population – you may have small pockets of workers that are putting your company at large financial risk.
How can you identify these possible landmines, and what can you do about them? In an exclusive talk given by our CEO — Brad Talwar lays out a roadmap to avoid those mines and keep your company’s risks minimized.
Click the video below to see Brad’s talk about High-Risk / High-Hazard Payroll services. We’ve also included a transcript below.
Hi everyone, my name is Brad Talwar I’m founder and CEO of Talentburst and I’m here today to talk about the High-Hazard Payroll Industry.
If your Head of Procurement, VP or Head of Talent Acquisition or Human Resources in a Fortune 1000 or Fortune 500 company, the first thing you have to ask yourself is:
“Is your enterprise at risk from a worker’s compensation standpoint?”
Do you have worker populations within your organization that can be injured? Do you have workers that are working within a lab environment, or a supply chain, or a warehouse? Or if there’s any kind of assembly line, furnaces, speciality chemicals, possibly toxic chemicals, toxic wastes, acids? -Do they have any exposure to blood in a lab environment, exposure to animals, handling animals, or exposure to blood borne pathogens?
These are the questions you should be asking yourself because if the answer is yes then your enterprise or Fortune 1000 company is definitely at risk.
The High-Hazard Payroll industry is a very niche industry. What happens typically in this industry is that there is always a small worker population that is often hidden within your entire enterprise. If this worker population is exposed to any of these hazards such as blood-borne pathogens or toxic chemicals, there will be worker’s compensation claims. Those claims can amount to thousand of dollars, hundreds of thousands of dollars or millions of dollars in certain cases.
In that event, your going to get buried with claims and have to deal with insurance companies that sometimes may not approve those claims. In which case you can have OSHA or The Department of Labor auditing or working closely with you to pay out those claims that can be very, very large.
I’ve worked in this space for the last 10 years, and it’s riddled with land mines. My first and most important suggestion to you is to look at your entire worker population, work with the heads of different departments, maybe supply chains, maybe assembly lines, maybe labs – if you can identify those worker populations then the first thing you need to do is make sure they are properly coded on your insurance policy and endorsed on your policy with the right NCCI codes.
The NCCI is the National Council for Compensation Insurance. You should work closely with them, and if your not working closely with them there are several 3rd party companies that can recommend what different codes should be endorsed on your worker’s compensation policy.
If you aren’t working with a 3rd party coding agency, you may want to look at a company that specializes in High-Hazard Payroll or High-Risk Payroll that actually do this for a living and work with you and hold your hand through the process.
The next landmine that a lot of people get stuck in is the claims process. You really do need to make sure that you have a documented claims process, right from intake through processing through resolution. If that’s not done, your Mod rating on your insurance is going to skyrocket. That is something your CFO or CEO of your company is not going to like—especially if you are publicly traded.
The mod rating is going to impact your insurance premium for your entire enterprise. So if you have 10,000 workers, 50,000 workers, or 100,00 workers – that premium is going to be applicable to the entire enterprise.
Once again, you really should lean on a 3rd party claims resolution company or a High-Hazard Payroll company that has worked with the claims processing right form the get to, from start to finish.
Another landmine in this piece of the industry is if some 1099 workers are claiming Worker’s Compensation insurance or file for a claim with your company or with your insurance carrier – that can be another huge problem because they shouldn’t be filing for a claim on your policy because they are 1099 – which can lead to further issues of correct or incorrect classifications of 1099. And then these misclassifications are typically triggers for audits with the Department of Labor and OSHA.
Most of these pockets of workers that are going to be risky are hidden within your high-speed assembly lines, people that typically handle pressurized gasses, toxic chemicals, or work in some kind of healthcare or lab environment. Look within these sectors and groups, and you’ll see if your enterprise is at risk.
Want to talk to the experts about High Risk / High Hazard Payroll? TalentBurst is the leader in the industry. Contact us today!