As previously mentioned, you may need to consult with an attorney in order to get more detailed legal advice. I am not a law professional, but through my insurance education and during some legal classes I took during the course of obtaining my Business Management degree, I do know that courts will typically sympathize with the employee, rather than the employer in a claim case where there has been question as to whether someone is a true independent contractor or an employee.

I also received some feedback, specifically some info below from Aaron Henry in a portion of an email that was sent to me that may be of interest:

“MBO Partners – drew my attention to your blog yesterday on IC’s and the possible need for their employers to carry coverage, even if they are paying employees as 1099 contractors.  I don’t know if you are familiar with PER’s, which contract with clients to allow them to service their Independent Contractor’s as W-2 employees instead of 1099 employees – and also offer insurance, health and retirement benefits.  My client’s site is www.mbopartners.com.  They are reaching out right now to freelancers in the entertainment industry (and work already with a number of Fortune 500 companies)”.

Thanks Aaron for the information!

I personally am familiar with PEOs, they provide similar services as the above. I agree with Aaron that this could be of help to those of you who wish to treat your independent contractors as employees.

Some main culprits relating to workers comp claims are back pain and carpal tunnel.

Back pain can be caused by a variety of issues:

• Excess weight and poor muscle tone
• Herniated or slipped discs
• Muscle strains and spasms
• Osteoarthritis; slow cartilage deterioration due to excessive use, injury or aging
• Osteoporosis; a calcium deficiency in the bones
• Sciatica; pressure on a nerve root in the lower back
• Stress

Like back pain, carpal tunnel syndrome is often the result of a combination of factors. Per my research the disorder may be due to a congenital predisposition, HOWEVER, other contributing factors that may be preventable in the workplace include trauma or injury to the wrist that cause swelling, work stress; repeated use of vibrating hand tools or at a computer keyboard and mouse. Because there is little clinical data to prove whether repetitive and forceful movements of the hand and wrist during work activities can cause carpal tunnel syndrome, all an employer can do to help their employees will be preventative.

You may now be wondering, so what the heck does Aging and Obesity have to do with back pain, and carpal tunnel? Well, for both ailments, workers can do on-the-job conditioning, perform brief occasional stretching exercises, take frequent brief rest breaks (even 60 seconds helps), use ergonomic equipment to promote correct posture and force improved muscle tone. Employers can develop programs in ergonomics, but they can also promote weight loss, cardio fitness and muscle tone which in turn will help to decrease claims relating to back pain and other ailments caused by aging and obesity.

I am no expert on ergonomics, so employers should utilize resources provided by your workers comp carrier to help create these preventative programs.

Coming soon, The State Fund is offering free seminars to employers:

Aging in the Workplace

America’s workforce is getting increasingly older. People are working longer due to difficult economic conditions.

You Will Learn:

• The effects of aging on your workers
• Simple ergonomic changes you can make
• The benefits of hiring and retaining the older worker

Obesity in the Workplace

There is an epidemic of obesity in America today. The workforce can be affected by medical and weight-related issues.

You Will Learn:

• Factors contributing to obesity in American adults
• Medical complications of obesity
• Ergonomics and weight-related issues for the worker
• Weight as a factor in determining duration of disability
• Weight loss treatment – Who pays?

Seminars are offered such as the one in Riverside on February 17, 2010.

Registration and complimentary continental breakfast begins at 8:30 a.m

State Fund Regional Office, 6301 Day Street, Riverside, CA 92507

Visit www.scif.com for on line registration and more dates/locations

• Make safety a common goal, having safety and training programs in place shows your employees you care about their welfare as well as helping to keep insurance costs down so that employee payroll has room to go up.
• Avoid the risk of cancellation after “audit” or inspection by giving an honest representation up front of what your employees do in their occupation.
• Make sure your employees know how to lift properly and use all necessary safety equipment, such as goggles, gloves and respirators when necessary.
• Consult with OSHA or visit www.osha.gov and utilize the California State Compensation Insurance Fund site www.scif.com/safety for more safety tips as excellent free resources.
• If possible invest a small percentage (even less than 1% is a great) in safety training or employee time to have regular safety meetings.

Your loss control actions as an employer go a long way toward showing your employees you care, and saving your company’s future dollars. By accessing the OSHA and State Fund sites above, you’ll have a plethora of worker training materials such as fact sheets, checklists, and other educational resources that are available online and can be printed to distribute to workers participating in workplace injury and illness prevention programs. Because a number of factors go into determining your annual premium, it is important to take control of what you can. In addition to safety and prevention, other factors that can positively affect your workers comp premiums are possible special underwriting adjustments such as use of a certified health care organization, and any special group programs you may be eligible for.

Since factors such as your company’s past history of work related injuries (known as your experience modification), your payroll, and classifications are fixed by your type of operation, company size and past claims, it is essential that you take control of what you can. Rates can vary from carrier to carrier and if you have a good track record, or are starting a new business with employees in low risk classifications, we have many Workers Comp markets to solicit quotes from on your behalf. For employers who are in high risk classifications, have had significant past losses, or have started a new business in a type of operation deemed to be higher risk without prior “workers comp experience” we can certainly provide you with a quote, but our markets will be more limited.