ora health and safety panel presentation on reducing operational costs through smart safety...

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Safety Case Studies: Panel of Experts Examining Safety Practices that

Drive Increasing Costs

Monday, February 18, 20139:00 a.m.– 11:30 a.m.

Laura Morrison, Director, Member Services & IT

Ohio Restaurant Association

Phone: (866) 331-6424 E-mail: lmorrison@ohiorestaurant.org

Examine Common & Uncommon Cost Drivers Associated with Foodservice Safety

Agenda Case Studies:

1) Clanken Pubs: Injury issues: Slips, Trips, Falls, Cuts, Lacerations & Punctures, Burns, Workplace Violence

2) Huntington Family Café: Injury Issues: Ergonomics/Lifting; Cuts, Slips, Trips, Falls, Scalds & Chemical Burns

3) Busy Friday Night Pizza Bar: Injury issues: Drivers, Glass Cuts, Knife Cuts (Back of the House: Dish tank; Front of the House: Prep)

ServSafe: New Products & Training Options Overview

Panel of Experts

Legal: Keith Pryatel, Kastner, Westman & Wilkins

Managed Care Organization: Ron Lucki, CareWorks

Safety: Joe Wellman & Brad Hunt, RiskControl360°

Workers Comp Safety & Hygiene: Mike Marr, BWC

Human Resources: Kimberly Kocak, C&A Business Services

Drug Testing/Background Checks: Aaron Brown, Secure Check / ZeroChaos

Research: Doug Wiegand, National Institute for Occupational Safety & Health

When a 1,000 things pile up, it’s easy to overlook the importance of health & safety issues – that’s dangerous!

The Health & Safety section of the ORA’s website helps you stay on top of concerns, offering solutions to today’s restaurant, food, and alcohol safety issues.

www.ohiorestaurant.org/healthandsafety

Restaurant Safety Food Safety Alcohol Safety

Health and Safety

Clanken Pubs(Fine Dining Franchise)

Case Study #1

Background Owner knows that his company has had an increase in injuries

over the past few years, especially in 2010. Evidence is also indicated by the pubs’ Experience

Modification Rate of 1.70

Additional Information:Number of Locations

Total [Actual] Losses (TML)

Total Limited Losses Annual Sales

2 $121,680 $32,101 $18,146,741

ManualClassification

DescriptionAnnual Payroll

Estimated Premium

9084 Bar, Lounge, or Tavern $1,940,712 $90,485

8742Outside Salesperson, Collectors or

Messengers$119,672 $653

8810 Clerical Office Employees $37,064 $140

Worker Manual Classification Code: 9084

“BAR”, “LOUNGE” OR “TAVERN” Principal receipts derived from

the sale of alcoholic beverages Assigned to a risk engaged in

operations described by another classification, unless the operations

subject to Code 9084 are conducted as a separate and distinct business.

Established by the National Council on Compensation Insurance (NCCI)

Worker Manual Classification Code: 8742 “SALESPERSONS”, “COLLECTORS”, OR

“MESSENGERS” (BANK RUNNERS)This classification is also

assigned to employees who perform these duties away

from the employer's premises.

Worker Manual Classification Code: 8810

“CLERICAL OFFICE EMPLOYEES”Subject to the Standard Exception Manual Rule. Clerks, Cashiers,

& Clerical Office Employees.

Employer-Perceived Problems Owner states there have been a large number of

employees who have suffered from cuts. He assumed that this is his largest contributor to overall

Workers’ Compensation costs.

Owner insists there is no need to track or trend incidents. “Exempt from OSHA Recordkeeping Requirements”.

Supervisors have informed him that they have needed to send one employee home.

Multiple (2-3) times for appearing to be under the influence of drugs/alcohol.

Three claims have been filed by this individual.

Owner states that there is not currently any Drug/Alcohol Policy in place.

“Testing is not conducted because of associated costs.” Owner also uncertain what supplementary methods can be

utilized to ensure workers are not inebriated on-the-job.

Incident Types

Slips, Trips and Falls

Struck By, Caught-Between

Cuts, Lacerations & Punctures

Ergonomics & Lifting Techniques

Physical & Chemical Burns

Workplace Violence

Investigation Injury-Cost Analysis

“Slips, Trips, & Falls” and “Struck By, Caught-Between” injury categories each

outweighed incidences of “Cuts, Lacerations, & Punctures”. 90% of Falls, including the [maxed out claim] incident that the owner felt was due to employee

intoxication, involved falling down stairs at Clanken Pubs’ older facility. Falls down stairs make up 93% of Category Costs.

“Struck By, Caught-Between” injuries were second largest injury category Entail loose items falling from shelves or employees being struck by carts.

40% of instances (2/5), 84% of costs Impacts from kitchen door swing

Small Workplace Violence Claim is stated as resulting from a patron attacking a worker. Questioning revealed that safety training is limited

Primarily, only postings of some equipment procedures. New hire orientation is “sometimes” conducted

Never documented, verified for comprehension or tracked. No [OSHA-specific] safety programs and/or procedures are in place. Employee Turnover Rate is approximately 20% percent annually. Owner says he is unfamiliar with policies in place;

Supervisors elicited offer conflicting statements regarding components Example: Disciplinary Policy

Incidents Cause Total Claims Cost

Slips, Trips and Falls 10 $69,229

Struck By, Caught-Between 5 $40,440

Cuts, Lacerations & Punctures 8 $9,368

Ergonomics & Lifting Techniques 4 $1,669

Physical & Chemical Burns 2 $814

Workplace Violence 1 $161

Total Number of Claims (TML) 30 $121,680

Based off ofa ‘rolling’ 4-year period(2008-2011) 2013 Policy

Year Experience Period

Based on DataProvided by : CareWorks

Consultants, Incorporated (CCI)

Ohio Bureau of Workers’ Compensation (BWC)

Total Numberof Claims Total

Modified Losses

Cultural

Internal Process & Practices

Leadership Engagement & Training

Employee Accountability

Own your culture, it starts at the top

Understanding, consistency and accountability

Leadership, training for owners/managers

Engage your employees & hold them

accountable

C & A Business Services 614-323-9955 www.cabenefitsgrp.com

Importance / Affect of implementing a drug test policy. Pre-Employment Post Accident

U.S. Dept. of Labor shows 11.2% of food prep, wait staff and bartenders are current illicit drug users. How many employees do you have that fall under this

category?

No policy or testing conducted because of associated test costs.

Drug Test Policy

The Small Business Administration conducted a study and identified the average cost per drug abuser to their employer is $7,000 annually.

FactorsProductivity – 33 to 50% less productiveAbsenteeism – 3 weeks or more per year, tardy 3

times more than non-usersAccidents – 3 to 4 times more likely to have an

accident, 5 times more likely to file a workers compensation claim

Medical Claims – file 300% more costly medical claims

Lab Based Drug Test = $35-$50

You do the math.

Drug Test Policy

Purpose of OSHA’s recordkeeping requirements are not meant to be a burden for employers, they were developed to help employers track trends. Procedures for accident reporting. Why to investigate accidents.

BWC has a Drug Free Safety Program (DFSP) because of the number of claims resulting from workers were under the influence.

BWC’s Safety & Hygiene Services available for all employers at no additional charge. Safety, Industrial Hygiene and Ergonomist.

Attribution of the causes of injuries Chance vs. “person” causes vs. latent causes Look at the whole picture.

Injury logs can help identify trends and problem areas. Exploring and documenting near-misses

Thorough walk-through Identify trip/slip/fall hazards Employee involvement for continuous improvement.

What types of controls can be implemented? Ongoing monitoring and review to ensure controls are effective.

Hierarchy of Controls

Most Effective / Protective

Elimination

Substitution

Engineering Controls

Administrative Controls

Personal Protective Equipment

Narcotics in Workers’ Compensation Claims

Prescription Drugs account for 19% of Workers’ Compensation medical costs.

Ohio Bureau of Workers’ Compensation-Screening prescriptions unrelated and ensuring relevancy.

MCOs initiate Drug Utilization Reviews(2012).

CareWorks Pharmaceutical Reviews (2006).

Workplace Violence ($161) OSHA emphasis on retail What have you done and what “effort” can you show?

“Serious” $7,000/per violation Size History Good faith (written programs)

“Willful” $70,000/per violation Clanken Pubs - older facility & employee falls

What are the OSHA Costs?

Keith L. Pryatelkpryatel@kwwlaborlaw.com

24

Absences

Workers’ Compensation

VSSR

Occupational Safety & Health “Serious”

Occupational Safety & Health “Willful”

Ohio Intentional Tort

Occupational Safety & Health Criminal

Workplace Injury Costs and Exposure

Not Knowing What Problems Exist

Injury Tracking & Trending

Misunderstanding of Incident Parameters

Frequency - Severity

Cuts, Lacerations, & Punctures vs. Slips, Trips

and Falls

Associated Cost(s)

ORA / RC360° Workplace Safety

Training Guide – free to ORA members

Premium Impact of Injury Cost: Slips, Trips, and FallsIf all injuries caused by Slips, Trips, and Falls had not occurred between 2008 and 2011, the 2013 policy year EMR and premium projection would be as follows:Estimated EMR = 1.16Estimated 2013 Premium Projection = $62,946Potential Annual Premium Savings = $28,332

Premium Impact of Injury Cost: Struck By, Caught-BetweenIf all injuries caused by Struck By, Caught-Between had not occurred between 2008 and 2011, the 2013 policy year EMR and premium projection would be as follows:Estimated EMR = 0.84Estimated 2013 Premium Projection = $46,303Potential Annual Premium Savings = $44,975

Traditional Group Rating Qualification and SavingsBy avoiding the premium impacts of Slips, Trips, & Falls, Struck By, Caught-Between qualification for a Traditional Group Rating Program may have been possible. Based on the data from CareWorks Consultants, the following EMR, premium and savings could possibly have been realized. Estimated EMR = 0.56Estimated Group Discount = 44%Potential Annual Premium Savings = $59,960

Return on Investment

Huntington Family Cafe(Fine Dining Franchise)

Case Study #2

Background Regional manager is aware that over 40 injuries have

occurred in the café’s “4-year rolling period”. Their Experience Modification Rate is known to be 1.38.

Additional Information:

Number of Locations

Total Modified LossesTotal Limited

LossesAnnual Sales

7 $53,801 $21,304 $17,443,102

Manual Classification

Description Annual PayrollEstimated Premium

9082 Restaurant $2,417,443 $66,866.84

9084 Bar, Lounge, or Tavern $5,210 $198.22

Worker Manual Classification Code: 9082

“RESTAURANT” Includes musicians

& entertainers. Restaurants operated

by a hotel or motel to be separately rated as “Code 9058”.

Other Manual Classification: 9084

Employer-Perceived Problems Regional Manager was uncertain exactly why WC costs were so high

It is known that there has been a substantial amount of injuries between 2008 and 2011

A very large claim involved a female worker stacking frozen fruits & vegetables on shelving

Back injury resulted in the organization exceeding Maximum Value:

$37,500Lumbar Disc DisplacementRegional Manager recognizes that this event contributed greatly to

Huntington Family Café’s current situation, but said, “I don’t understand why the incident occurred. There is a [‘Back Safety’] Computer-Based Training that all employees have to take.”

Improper Ergonomics & Lifting Techniques

Cuts, Lacerations & Punctures

Slips, Trips & Falls

Scalds & Chemical Burns

Incident Types

Investigation Employee who had ergonomic accident with the company for 4 years.

Trained on some lifting techniques at new hire orientation and consisted of a few PowerPoint slides identifying proper mechanics

There is no formal program related to Hazard Communications.

Personal Protective Equipment not addressed by any program elements.

Café is unfamiliar with PPE Hazard Analyses, Job Hazard Analyses, etc.

The organization is curious about Workers’ Compensation Fraud. Facebook photos indicate that employee has been participating in activities involving

rigorous skeletal movements. Employee recently moved from home to a new location; some co-workers, who

helped her with the moving process, were shocked to see her lift heavy items. One shift supervisor sees her working out at the local YMCA on a regular basis.

He also states, “Ironically, this incident occurred shortly after we denied her request to be a server. There is a belief among staff that it may be a ‘retaliatory’ claim! Would camera footage or any other evidence hold up in court?”

Investigation (cont.) Employer is interested in any studies or training materials available.

They are not affiliated with any employer associations or programs.

Would like to establish better training mechanisms.

Questions asked about the hiring of employees Do restaurants have to hire or keep employees who are physically unable to complete

basic work activities, for example lifting? Are there ways to identify if hires already have injuries/illnesses that put themselves or

other workers in danger?” Question stems from a probable sprain that caused an employee to spill hot soup on

a fellow employee.

Confusion exists about some experience data. The café does not serve any alcoholic beverages at any of their (7) sites. Another inquiry made about alcohol is whether or not corporate can concretely dictate if

this location [visited] has a better Drug & Alcohol Policy. The Regional Manager and

many other employees feel that new hires and individuals that have been involved in

prior accidents are returning to work under the influence. However, corporate ruling does

not allow the site to conduct individual pre-hire, post-accident, return-to-work testing.

“Probable cause/suspicion may be part of the program.”

Cause Total Claims Cost

Improper Ergonomics & Lifting Techniques

1 $37,500

Cuts, Lacerations, & Punctures

18 $6,794

Slips, Trips, & Falls 11 $5,364

Scalds & Chemical Burns 15 $4,143

Total Number of Claims (TML)

45 $53,801

Incidents

Is there such a thing as an employee “retaliatory” claim?The immunity trade-off in OhioOhio Rev. Code § 4123.90

Fraud is differentBWC remediesPrivate investigatorSocial networksEmployee statements

Keith L. Pryatelkpryatel@kwwlaborlaw.com

Options for limiting lifting, multiple employees to complete task, mechanical equipment to lift heavy items, safety grants to assist with buying equipment.

Making sure that training is specific to the companies needs and conduct refresher training.

BWC has a “Fraud Department that can investigate possible fraud issues. (Fraud vs. Abuse)

BWC classes both at training sites and online, “Restaurant and Food Services Safety Workshop”.

Safety does not end with training

Must check for employee understanding

Have employees demonstrate safe behaviors

Practice with feedback as part of training

Integrate behavior-based safety coaching into the culture

Management commitment and employee involvement

Peer observation and feedback

Ongoing monitoring and review

Behavior Safe At-Risk

Load appropriate?

Back straight?

Use legs?

Hold load close to body?

Shoulders and hips aligned?

TOTAL

Critical Behavior Checklist: Lifting

Total Safe Behaviors/Total Safe + At-Risk Behaviors X 100 = % Safe

C & A Business Services 614-323-9955 www.cabenefitsgrp.com

Training

Proper hiring and job descriptions

Culture

Understanding Adult Learners: Video with no follow-up and enforcement is not effective

Clear job descriptions that include the physical requirements of employees

Consistency of HR Practices, enforcing safety as a daily practice and Corporate Values: all locations

Regional Managers need to gain a better understanding of policies that are in place. Make employees aware as well.

Corporate resistant to pre-employment, post-accident, return to work drug testing.

ORA / RC360° Workplace Safety Training Guide

Premium Impact of Injury Cost: Improper Ergonomics & Lifting TechniquesIf all injuries caused by Improper Ergonomics & Lifting Techniques had not occurred between 2008 and 2011, the 2013 policy year EMR and premium projection would be as follows:Estimated EMR = 0.94Estimated 2013 Premium Projection = $46,529Potential Annual Premium Savings = $20,536

Premium Impact of Injury Cost: Cuts, Lacerations, & PuncturesIf all injuries caused by Struck By, Cuts, Lacerations, & Punctures had not occurred between 2008 and 2011, the 2013 policy year EMR and premium projection would be as follows:Estimated EMR=.86Estimated 2013 Premium Projection = $42,755Potential Annual Premium Savings = $24,310

Traditional Group Rating Qualification and SavingsBy avoiding the premium impacts of Ergonomics & Lifting Techniques, Struck By, Cuts, Lacerations, & Punctures qualification for a Traditional Group Rating Program may have been possible. Based on the data from CareWorks Consultants, the following EMR, premium and savings could possibly have been realized. Estimated EMR= 0.54Estimated Group Discount = 46%Potential Annual Premium Savings = $39,529

Return on Investment

Local Friday Night Pizza & Wings Bar(Need for Resources Outsourcing)

Case Study #3

Background Current owner always wanted to have a pizza place.

Graduate of business school.

Work experience at a local [favorite] pizza pub. Saved up enough to purchase the, already established, facility

Worker Manual Classification Code: 7380 Delivery Driver

9082

8810

Employer-Perceived Problems Operation’s Workers’ Compensation EMR is well over 1.0

Claims history of the business is littered with accidents. Owner has little experience dealing with these types of

incidents, since his past experiences are in the kitchen.

Purchase was a package deal: Main bar/restaurant 2 carry-out locations (delivery drivers staffed)

Day-to-day operations were foreign to owner.

Recognition that culture needs improvement. Pushback from existing staff. Employees fear that new ownership & management will

change all aspects of the way business is conducted.

Incidents

Drivers

Cut By Glass

Cut When Cutting Bread

Cut When Cutting Meat

Cut When Cutting Vegetable

Cut When Cutting on Plate

Cut When Cutting Onions

Cut When Cutting Lettuce

Cut By Cleaning

Knowledge deficiency related to risk management structuring. Supervisors feel they no longer have input in plan & procedure

implementation Two have already quit.

Employees express that feeling extremely rushed is a normal occurrence.

Many hazards are present.Personal Protective Equipment, that is not readily available, is admittedly

not used.Training is deficient in almost all regards.Delivery drivers perceived to be the issue when the owner worked at the

restaurant as a peer.Driver hiring (HR focus) overshadowing the most frequent claims –

knife sticksManagement & ownership personnel interviewed frequently

expressed that these injuries were attributable to chance (“just bad luck”).

Investigation

Equipment, known to be improper for the job or damaged, is left out for

usage. Appliances are assumed to cause risks, due to employees using

improper procedures, or deficiencies related to hardware.Owner understands insufficient programs, policies, & procedures are to

blame but is unaware of available resources and/or how to best

implement change.Knives, not the right size or type for the job, are occasionally all that are

available. Instead of using box cutters, employees will use knives Counter/wall racks & storage blocks not present; knives stored

improperly.

Investigation (cont.)

Incidents

Cause Total Claims

Drivers 15

Cut By Glass 30

Cut When Cutting Bread 8

Cut When Cutting Meat 11

Cut When Cutting Vegetable 8

Cut When Cutting Plate 3

Cut When Cutting Onion 4

Cut When Cutting Lettuce 2

Cut By Cleaning 2

Total Number of Claims (TML) 83

C & A Business Services 614-323-9955 www.cabenefitsgrp.com

ChangeManagementStrategies

“Change Management” is a strategy that will take an organization from its current state to a new desired state. “Change Management” should be a written plan that is measureable and involves the staff

This can be a great opportunity to involve the current staff and set up proper hiring for future staffing

Keith L. Pryatelkpryatel@kwwlaborlaw.com

Acquisitions

Employee hirings

Legal albatrosses

Suggested solutions

Background Checks, including Motor Vehicle Report, for delivery drivers.

Pre-Employment, Post-Accident, Return-to-Work Drug Testing for all employees.

Classes BWC offers to help employers better understand the

workers compensation system; “Controlling Cost through Claims Management” “Controlling Workers’ Compensation Cost” “Developing a Safety & Health Management System” Effective Safety Teams”

BWC offers special discount programs when employers get into

trouble because of claims.

Destination Excellence; DFSP, ISSP, TWP, OCP & Safety Council

incentives.

Consult managers and employees to get their impressions of the problem areas and ideas / areas for improvement.

When people contribute to a safety effort, their ownership and commitment to safety increase.

Perception of management / owner’s total buy-in for safety practices and procedures increases employees’ participation.

Appropriate Equipment:

During inspection(s), the following devices were repetitively not available or

improperly used: Cut Resistant Gloves

Lettuce Cutters

Onion Slicers

Appropriate Knife Selections

Personal Protective Equipment Need for appropriate cut-resistant gloves often overlooked

Of restaurants surveyed, injuries commonly occurred while cutting or handling

vegetables, meat, cheese, bread and while handling glassware & plates. The

RiskControl360° survey noted that cutting garnishes, cleaning the facility and

opening boxes with a knife were causes of cuts. When on-site safety program evaluations were performed and employees were questioned, they

concurred. Upper management & supervision, when unaware of deficiencies, usually agreed

with these findings when claims were discussed & equipment assessments conducted.

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Manager Training: ServSafe Manager

Available - English/Spanish/ Chinese/Korean/French Canadian/ Japanese/Large Print

◦ Classroom 8 hours – full semester

◦ Online Course: 6 - 8 hours 90 days to complete

Course Overview 6E Focus on Prevention 90 Question Secure Exam 5 Year / National

Employee Training: ServSafe Ohio Food HandlerAvailable - English/Spanish

Classroom 1-3 hours

Online Course: 90 minutes 60 days to complete Fully accredited ANSI

Course Overview 5 Key Areas (Personal Hygiene /

Controlling Time and Temp / Cross-Contamination / Cleaning and Sanitizing / Job-Specific Guidelines)

40 question exam Certificate of completion

Instructor/Proctor Overview Certified Instructor (Active ServSafe Certification Required) Teach ServSafe Food Safety Manager training. Access online instructor resources and information.

Registered Proctor (No ServSafe Certification Required) Responsible for the secure administration of the ServSafe Food

Protection Manager Certification Exam. Schedule online and print exams. Maintain confidentiality of exam content. Follow the standards outlined in the

ServSafe Examination Administration Handbook and the Performance Agreement. 

ServSafe Allergen™

Partnering with FARE (formerly FAAN) to create comprehensive online training program. Scheduled to launch in May 2013 Focuses on employee and manager training

Identifies common food allergens and symptoms. Teaches prevention and contamination control. Tests knowledge/learning through online format. Utilizes a simple, interactive online format. Grants a certificate of completion (upon passing the exam).

National Restaurant Association Contacts

Tony Pupillo – Sales Manager, National Restaurant Association

Regional Manager, Great Lakes

apupillo@restaurant.org

(312) 261-5329 – Direct

General Inquiries – Service Center

Service Center

servicecenter@restaurant.org

(800) 765-2122, ext. 6703

Business Hours: Monday-Friday

9:30 a.m. – 7:30 p.m. Eastern

Look for future Restaurant Education Series events at www.ohiorestaurant.org, select “Education & Events”

Today at 12:30 pm: “Health Care Law: Next Steps for Restaurateurs” seminar; this room, E-172

Thank you Panelists and Attendees!