Mgmt 383Mgmt 383

Chapter 15Chapter 15Risk Management and Worker Risk Management and Worker

ProtectionProtection

Spring 2009Spring 2009

Results of Exam IIIResults of Exam III

X = 76.56 (75.11)Rng = 48 - 97Sx = 11.11

Omit the following questions:Version A: #54Version B: #56Version C: #33

Components of Risk ManagementComponents of Risk Management

Risk Management

WorkplaceSafety &Health

HealthWellness

Promotion

Workplace& Worker Protection

Disaster Preparation& Recovery

Planning

Nature of Health, Safety & Nature of Health, Safety & SecuritySecurity

• Health Health - general state of physical, mental, and - general state of physical, mental, and emotional well-being.emotional well-being.• Keeping people free from illness or injury.Keeping people free from illness or injury.• Keeping people free from metal or emotion Keeping people free from metal or emotion

problems.problems.

• SafetySafety - - protectingprotecting the physical well-being of the physical well-being of employees.employees.• Focuses on Focuses on work-relatedwork-related injuries and accidents. injuries and accidents.

• Security Security - - protectingprotecting the employer’s facilities the employer’s facilities and his/her employees while they are at work.and his/her employees while they are at work.

HR Dept’s ResponsibilitiesHR Dept’s Responsibilities

• Coordinates the Health & Safety ProgramCoordinates the Health & Safety Program• Develops Safety Reporting SystemDevelops Safety Reporting System• Provides Accident Investigation ExpertiseProvides Accident Investigation Expertise• Provides Expertise in Accident Prevention Provides Expertise in Accident Prevention • Develops Restricted Access ProceduresDevelops Restricted Access Procedures• Trains Managers in Policies/ProceduresTrains Managers in Policies/Procedures• Trains Managers to Recognize and Deal with Trains Managers to Recognize and Deal with

Dangerous EmployeesDangerous Employees

Managers’ ResponsibilitiesManagers’ Responsibilities

• Monitors Daily Health & Safety in the Monitors Daily Health & Safety in the WorkplaceWorkplace

• Coach Employees on Safety ConsciousnessCoach Employees on Safety Consciousness

• Preliminary Investigation of AccidentsPreliminary Investigation of Accidents

• Observe the Health and Safety Behavior of Observe the Health and Safety Behavior of EmployeesEmployees

• Monitor Workplace for Security ViolationsMonitor Workplace for Security Violations

• Identify Potentially Dangerous EmployeesIdentify Potentially Dangerous Employees

• Recommend Changes as NeededRecommend Changes as Needed

Legal Requirements for Safety Legal Requirements for Safety & Health& Health

• Workers CompensationWorkers Compensation

• ADAADA

• Child LaborChild Labor

• Occupational Safety & Health Occupational Safety & Health ActAct

Workers CompensationWorkers Compensation

• Wisconsin had first workers compensation Wisconsin had first workers compensation law in 1911.law in 1911.

• Objective: to compensate employees for Objective: to compensate employees for injuries sustained injuries sustained on the jobon the job..

Workers CompensationWorkers Compensation

• Costs:Costs:• National average: National average: $19,500$19,500 per claim. per claim.• Costs of claims have risen by 300% since 1985.Costs of claims have risen by 300% since 1985.• Costs can run Costs can run 2-10%2-10% of total payroll expenses. of total payroll expenses.• Major cause for increased workers comp costs: Major cause for increased workers comp costs:

Increased litigation expenses.Increased litigation expenses.

• Fraudulent claims account for an estimated Fraudulent claims account for an estimated 25% of all workers’ comp claims (as much as 25% of all workers’ comp claims (as much as $5B annually).$5B annually).

ADA WarningADA Warning

• If you make accommodations for injured If you make accommodations for injured workers by keeping them in their current workers by keeping them in their current jobs but placing them on jobs but placing them on light dutylight duty, you , you may be undermining the essential functions may be undermining the essential functions of the job as defined under the ADA.of the job as defined under the ADA.

Child Labor (FLSA)Child Labor (FLSA)

• FLSA requires employees to be FLSA requires employees to be >>16 for 16 for unlimited hours.unlimited hours.• Employees in the ages 16 to 17 are only permitted to Employees in the ages 16 to 17 are only permitted to

work in nonhazardous jobswork in nonhazardous jobs

• ““Hazardous” jobs are open only to employees Hazardous” jobs are open only to employees who are who are >> 18. 18.• What is a “hazardous job is determined by the What is a “hazardous job is determined by the

Secretary of Labor.Secretary of Labor.

Examples of Hazardous JobsExamples of Hazardous Jobs

• Manufacturing or storing explosives Manufacturing or storing explosives • Driving a motor vehicle and being an outside helper on a Driving a motor vehicle and being an outside helper on a

motor vehicle motor vehicle • Coal mining Coal mining • Logging and saw milling Logging and saw milling • Power‑driven wood‑working machines Power‑driven wood‑working machines • Exposure to radioactive substances and to ionizing radiations Exposure to radioactive substances and to ionizing radiations • Power‑driven hoisting equipment Power‑driven hoisting equipment • Power‑driven metal‑forming, punching, and shearing Power‑driven metal‑forming, punching, and shearing

machines machines • Mining, other than coal mining Mining, other than coal mining

Examples of Hazardous JobsExamples of Hazardous Jobs

• Meat packing or processing (including power‑driven meat Meat packing or processing (including power‑driven meat slicing machines) slicing machines)

• Power‑driven bakery machinesPower‑driven bakery machines• Power‑driven paper‑products machines Power‑driven paper‑products machines • Manufacturing brick, tile, and related products Manufacturing brick, tile, and related products • Power‑driven circular saws, band saws, and guillotine Power‑driven circular saws, band saws, and guillotine

shears shears • Wrecking, demolition, and ship‑breaking operations Wrecking, demolition, and ship‑breaking operations • Roofing operations Roofing operations • Excavation operationsExcavation operations

Occupational Safety & Health Occupational Safety & Health Act (OSHA)Act (OSHA)

• Covered Employers:Covered Employers:• Engaged in interstate commerce (Engaged in interstate commerce (>> 1 employee1 employee))..• Farmers with Farmers with >> 10 employees. 10 employees.• Federal, State, and local governments.Federal, State, and local governments.

• AgenciesAgencies• Occupational Safety & Health Administration Occupational Safety & Health Administration

(OSHA)(OSHA) enforces the act. enforces the act.• National Institute of Occupational Safety (NIOSH)National Institute of Occupational Safety (NIOSH)

develops safety & health standards.develops safety & health standards.• Occupational Safety and Health RevisionOccupational Safety and Health Revision

Commission (OSHRC)Commission (OSHRC) - dispute handler- dispute handler..

OSHA AuditsOSHA Audits

• Presence of a formal safety/health plan.Presence of a formal safety/health plan.• Documentation of safety and health training.Documentation of safety and health training.• Presence of a hazards communication program.Presence of a hazards communication program.• First aid/CPR training for employees.First aid/CPR training for employees.• Employees trained in personal protective clothing Employees trained in personal protective clothing

(PPE).(PPE).• Accident investigators have been trained.Accident investigators have been trained.• Evidence that the organization has made a good faith Evidence that the organization has made a good faith

effort to improve safety/healtheffort to improve safety/health..

OSHA’s General Duty ClauseOSHA’s General Duty Clause

• Refers to any areas in which no published Refers to any areas in which no published OSHA standards exist.OSHA standards exist.

• Employers have a “general duty” to Employers have a “general duty” to maintain a safe working environmentmaintain a safe working environment..

OSHA Record-Keeping OSHA Record-Keeping RequirementsRequirements

• Who must keep OSHA records:Who must keep OSHA records:

• Organizations with frequent injuries, Organizations with frequent injuries, hospitalizations, and illnesses.hospitalizations, and illnesses.

• Organizations with a work-related death.Organizations with a work-related death.

• Organizations selected by OSHA to Organizations selected by OSHA to participate in its annual labor statistics participate in its annual labor statistics survey.survey.

OSHA Reporting RequirementsOSHA Reporting Requirements

• Record RequirementsRecord Requirements forfor OSHA form 300OSHA form 300 - - occupational injuries, accidents, or fatalities.occupational injuries, accidents, or fatalities.• Injury or illness related deathInjury or illness related death..• Lost time or disabling injuriesLost time or disabling injuries when the when the

following day is missed.following day is missed.• Medical-care injuriesMedical-care injuries if it requires a physician’s if it requires a physician’s

treatment but did not miss work the following treatment but did not miss work the following day.day.

• Not requiredNot required for for minor injuriesminor injuries requiring requiring first-aid and no lost timefirst-aid and no lost time

OSHA InspectionsOSHA Inspections

• Marshal v. Barlow’s, Inc.Marshal v. Barlow’s, Inc. permits employers to permits employers to refuse entry to OSHA compliance officers.refuse entry to OSHA compliance officers.• However OSHA can get a search warrant from any federal However OSHA can get a search warrant from any federal

district court without probable causedistrict court without probable cause..

• Will also want to inspect safety records to insure that they are Will also want to inspect safety records to insure that they are being maintained.being maintained.

• A company representative may follow the A company representative may follow the compliance officer during the inspection.compliance officer during the inspection.

OSHA Citations and ViolationsOSHA Citations and Violations• The The FiveFive OSHA Citations: OSHA Citations:

• Imminent DangerImminent Danger

• SeriousSerious

• Other Than SeriousOther Than Serious

• De MinimusDe Minimus

• Willful and RepeatedWillful and Repeated

OSHA Citations and ViolationsOSHA Citations and Violations

• Imminent DangerImminent Danger - - if not corrected if not corrected immediately, death or serious bodily harm is likely immediately, death or serious bodily harm is likely to occur. [Unsafe scaffolding]to occur. [Unsafe scaffolding]

• SeriousSerious - - condition could probably cause death or condition could probably cause death or serious bodily harmserious bodily harm. . [Failure to have a hand guard [Failure to have a hand guard on a metal press].on a metal press].

• Such citations could result in a maximum penalty Such citations could result in a maximum penalty of up to $7,000 for each violation. of up to $7,000 for each violation.

OSHA Citations and ViolationsOSHA Citations and Violations

• Other Than SeriousOther Than Serious - - could adversely affect could adversely affect employees’ health or safety but employees’ health or safety but wouldwould notnot cause cause death or serious bodily harm [Extension cord death or serious bodily harm [Extension cord across the floor]across the floor]

• De MinimusDe Minimus - not likely to directly endanger - not likely to directly endanger employees safety or health [no door on toilet stalls, employees safety or health [no door on toilet stalls, e.g.]e.g.]

OSHA Citations and ViolationsOSHA Citations and Violations

• Willful and RepeatedWillful and Repeated -- employer has been employer has been warned of an unsafe condition and has not warned of an unsafe condition and has not corrected the violation [6 months imprisonment if corrected the violation [6 months imprisonment if death occurs]death occurs]

• A willful citation might have a maximum amount of A willful citation might have a maximum amount of $70,000 per violation. $70,000 per violation.

• Repeat citations also have a maximum penalty amount Repeat citations also have a maximum penalty amount of $70,000 per violation. of $70,000 per violation.

OSHA Hazards CommunicationOSHA Hazards Communication

• Process Safety Management (PSM) Process Safety Management (PSM) standards have been established for standards have been established for hazardous chemicalshazardous chemicals• Requires employees to notify employees of Requires employees to notify employees of

their presence.their presence.• Information on hazardous substances must be Information on hazardous substances must be

made available in a material safety data (MSD) made available in a material safety data (MSD) sheet.sheet.

Safety Management ComponentsSafety Management Components

• Organization Commitment (must be supported by Organization Commitment (must be supported by management)management)

• Safety Policies Discipline and RecordkeepingSafety Policies Discipline and Recordkeeping• Safety Training and CommunicationSafety Training and Communication• Participation by Employees (Safety Committees)Participation by Employees (Safety Committees)• Inspection Investigation, and Evaluation of Safety Inspection Investigation, and Evaluation of Safety

EffortsEfforts

Engineering Approach to Engineering Approach to Safety and HealthSafety and Health

• Designing physical work settings.Designing physical work settings.

• Temperature considerations.Temperature considerations.

• Light levels.Light levels.

• Enough work space.Enough work space.

• Materials used.Materials used.

• Noise levels.Noise levels.

• ADA accommodations.ADA accommodations.

ErgonomicsErgonomics

• Ergonomics Ergonomics - designing work environments that - designing work environments that consider the physiological and psychological well-consider the physiological and psychological well-being of experienced employees.being of experienced employees.• Designs for video display terminals.Designs for video display terminals.• Computer keyboards.Computer keyboards.• Office chairs that reduce back strain or fatigueOffice chairs that reduce back strain or fatigue• Focuses on reducing cumulative trauma and Focuses on reducing cumulative trauma and

repetitive stress.repetitive stress.

Cumulative Trauma Disorders Cumulative Trauma Disorders (CTD)(CTD)

• Cumulative Trauma Disorders (CTD) Cumulative Trauma Disorders (CTD) in in juries to the muscle and skeletal systems due juries to the muscle and skeletal systems due to workers’ repetitive use of the same muscle to workers’ repetitive use of the same muscle to perform work tasks.to perform work tasks.• Carpal tunnel syndrome is the most widely known Carpal tunnel syndrome is the most widely known

form.form.• The meat processing industry has the highest The meat processing industry has the highest

incidents of CTD per employee.incidents of CTD per employee.

Health Issues in the WorkplaceHealth Issues in the Workplace• AIDSAIDS

• Covered under ADA.Covered under ADA.• Guidance offered under OSHA’s Guidance offered under OSHA’s

bloodborne pathogens standards.bloodborne pathogens standards.

• Smoking at WorkSmoking at Work• Smoke-free workplacesSmoke-free workplaces• Smoking cessation workshopsSmoking cessation workshops• Note:Note: New York’s State Court of Appeals has New York’s State Court of Appeals has

ruled that workers who become ill due to “second ruled that workers who become ill due to “second hand smoke” are eligible for worker’s hand smoke” are eligible for worker’s compensation.compensation.

Health Issues in the WorkplaceHealth Issues in the Workplace• ObesityObesity

• Approximately two-thirds of US adults are Approximately two-thirds of US adults are obese.obese.

• Economic costs to employers due to health Economic costs to employers due to health insurance claims:insurance claims:

• Doctor visits Doctor visits • DiabetesDiabetes• High blood pressureHigh blood pressure

• Additionally lost days of work result from Additionally lost days of work result from unhealthy workersunhealthy workers

• Incentives for wellness and fitness programs.Incentives for wellness and fitness programs.

Air Quality IssuesAir Quality Issues

• Sick Building SyndromeSick Building Syndrome - a creation of - a creation of the EPA.the EPA.• Acute health problems or discomfort that appear Acute health problems or discomfort that appear

to be linked to employees’ time in the building.to be linked to employees’ time in the building.• Lack of ventilation.Lack of ventilation.• Fumes from:Fumes from:

• CarpetsCarpets• Copy machinesCopy machines• AdhesivesAdhesives• Molds and fungiMolds and fungi

Substance AbuseSubstance Abuse

• Substance AbuseSubstance Abuse• Alcohol and drug abuse are defined as disabilities Alcohol and drug abuse are defined as disabilities

under 45 C.F.R. § 84-3 (J)(2)(I).under 45 C.F.R. § 84-3 (J)(2)(I).• Illegal alcohol and drug abuse is not a disability.Illegal alcohol and drug abuse is not a disability.• In the case of alcohol and drug rehabilitation In the case of alcohol and drug rehabilitation

accommodation may have to be made.accommodation may have to be made.

• Drug Free Work Place Act of 1988Drug Free Work Place Act of 1988 - federal - federal contractors and subcontractors must maintain drug-contractors and subcontractors must maintain drug-free work environments.free work environments.

• Inform employees of drug-free policies.Inform employees of drug-free policies.• Outline actions taken against violatorsOutline actions taken against violators• Establish awareness programs.Establish awareness programs.

Substance AbuseSubstance Abuse

• Types of Drug TestsTypes of Drug Tests• Urinalysis – Urinalysis – generally accurate and well accepted.generally accurate and well accepted.• Blood tests – Blood tests – generally accurate and well accepted.generally accurate and well accepted.• Radioimmunoassy of HairRadioimmunoassy of Hair – one strain of hair – one strain of hair

provides a 90-day profile.provides a 90-day profile.• Faking is more difficult than urinalysis.Faking is more difficult than urinalysis.

• Cannot detect recent drug use (not good for accident Cannot detect recent drug use (not good for accident investigationsinvestigations

• Fitness-for–DutyFitness-for–Duty - tests usually hand and eye - tests usually hand and eye coordination sobriety tests to insure safe coordination sobriety tests to insure safe performance of machinery/vehicles.performance of machinery/vehicles.

Emotional/Mental HealthEmotional/Mental Health

• Stress – only excessive stress that effects Stress – only excessive stress that effects employee’s ability to function normally.employee’s ability to function normally.• Covered under Workers Comp in MA.Covered under Workers Comp in MA.

• Wellness programs and employee Wellness programs and employee assistance programs (EAP) are means to assistance programs (EAP) are means to preclude or identify stress-related emotional preclude or identify stress-related emotional and health problems.and health problems.

Wellness ProgramsWellness Programs

• Emerging employer responses to health Emerging employer responses to health concerns.concerns.• Wellness programsWellness programs

• ScreeningsScreenings

• Exercise programsExercise programs

• Education programs(weight control, stress Education programs(weight control, stress reduction)reduction)

• Skills programs (CPR, first-aid)Skills programs (CPR, first-aid)

SecuritySecurity

• Increased concern over workplace Increased concern over workplace violenceviolence..• Employees are 18 times more likely to be killed Employees are 18 times more likely to be killed

during a workplace robbery than by a disgruntled during a workplace robbery than by a disgruntled coworker!coworker!

• About 70% of workplace killings involve high risk About 70% of workplace killings involve high risk jobs: jobs: law enforcement, taxi drivers, convenience law enforcement, taxi drivers, convenience store clerksstore clerks..

• Only 20% of workplace murders involve Only 20% of workplace murders involve someone the employee knew (former coworker, someone the employee knew (former coworker, spouse, domestic partner, customer, employee).spouse, domestic partner, customer, employee).

SecuritySecurity• Profile of potentially violent employeesProfile of potentially violent employees..

• History of aggressionHistory of aggression

• Exhibits frustrationExhibits frustration

• LonerLoner

• Handles stress poorlyHandles stress poorly

• Temper/angerTemper/anger

• Work is their sole major activityWork is their sole major activity

• Watch handling of workers fired for making threats.Watch handling of workers fired for making threats.• Postal worker recovered $75,000 (plus back pay) for Postal worker recovered $75,000 (plus back pay) for

work-related stress under the ADA after being terminated work-related stress under the ADA after being terminated for threatening supervisor. for threatening supervisor. Lussier v. RunyonLussier v. Runyon, 1994 U.S. , 1994 U.S. Dist. LEXIS 4668 (D.C. Me. 1994)Dist. LEXIS 4668 (D.C. Me. 1994)

SecuritySecurity

• Security AuditSecurity Audit (Vulnerability analysis) (Vulnerability analysis) assesses potential security problems.assesses potential security problems.• Surrounding neighborhoodSurrounding neighborhood• Lighting in parking lotsLighting in parking lots• Location of emergency response servicesLocation of emergency response services• Current security capabilitiesCurrent security capabilities• Disaster plansDisaster plans

• Controlled AreasControlled Areas

• Computer securityComputer security

Employee Screening & SelectionEmployee Screening & Selection

• Employee Screening & Selection (job-Employee Screening & Selection (job-related) security issues:related) security issues:• Psychological testingPsychological testing• Reference checksReference checks• Background investigationsBackground investigations

• Quality of Security PersonnelQuality of Security Personnel

Disaster Preparation and Disaster Preparation and Recovery PlanningRecovery Planning

• Disaster Planning is required by FEMADisaster Planning is required by FEMA• Organizational AssessmentOrganizational Assessment – determines how – determines how

various disaster may affect operations various disaster may affect operations (earthquake, weather, terrorist attack).(earthquake, weather, terrorist attack).

• Human Impact PlanningHuman Impact Planning – communication – communication with employees during the crisis (contact lists).with employees during the crisis (contact lists).

• Disaster TrainingDisaster Training• First Aid/CPRFirst Aid/CPR• Hazardous material containmentHazardous material containment• Employee contact methodsEmployee contact methods• Organizational restoration efforts.Organizational restoration efforts.