As the year wraps up, it’s essential for employers to review and refresh their workers' compensation compliance practices. An end-of-year checklist is an effective way to ensure you’re up-to-date with regulatory requirements, mitigating risk and setting your business up for success in the new year. Here’s a practical guide to help employers maintain compliance and manage their workers’ compensation program efficiently.

Review Policy Details and Coverage Levels

• Ensure Adequate Coverage: Check that your workers’ compensation insurance coverage is appropriate for the current employee headcount and any changes in job roles.
• Update Job Classifications: Misclassification of roles can lead to under- or over-insurance, which affects both compliance and premiums. Confirm that each position is categorized accurately.
• Confirm Minimum Policy Requirements: Regulatory requirements can vary by state, so double-check that your policy meets state-specific mandates.

Audit Payroll and Claims Data

• Conduct a Payroll Review: Payroll adjustments made throughout the year can impact premium calculations. Make sure your payroll records are accurate to avoid end-of-year premium surprises.
• Review Claims History: Go over this year’s workers' compensation claims to spot any patterns or recurring incidents. A thorough review can reveal underlying issues that need attention.
• Verify Claims Data Accuracy: Inaccurate data can lead to potential penalties. Confirm the accuracy of all reports, noting any corrections that need to be made.

 Revisit Safety Programs and Training

• Assess Safety Protocols: Regularly updating safety guidelines based on current risks and industry standards is essential. Ensure all protocols align with OSHA and other regulatory bodies.
• Provide Refresher Training: Organize safety refresher courses to ensure employees are aware of the latest practices and policies. Document all training sessions for compliance verification.
• Address High-Risk Areas: Identify any job functions with a high incidence of injury and implement targeted safety measures to reduce risk.

Update Documentation and Recordkeeping

• Organize Your Records: Ensure that all workers' compensation records, including injury reports and claim forms, are up-to-date and accessible. Proper documentation is crucial for audits and regulatory inspections.
• Check Retention Periods: Workers' compensation records often have specific retention requirements. Verify that you’re holding onto documents for the legally mandated period.
• Update Employee Files: Make sure that any changes in employee status, role, or training are properly recorded and documented.

Check Compliance with State and Federal Regulations

• Review State-Specific Compliance Requirements: Each state has unique requirements for workers' compensation. Review updates from your state’s Department of Labor to stay compliant.
• Verify OSHA Reporting Compliance: OSHA requires certain businesses to keep a record of injuries and illnesses. Verify that your reporting meets OSHA’s standards and deadlines.
• Stay Informed on Regulatory Changes: End-of-year is a great time to catch up on any new regulations or changes to existing laws, which might affect your workers’ compensation responsibilities.

Plan for the Upcoming Year

• Evaluate Policy Renewals: If your workers' compensation policy is up for renewal, use this opportunity to review coverage and negotiate terms.
• Identify Areas for Improvement: Use the end-of-year review to set goals for reducing workplace incidents, improving safety training, and addressing any ongoing compliance challenges.
• Budget for Workers' Compensation: Allocate resources for any anticipated adjustments in workers' compensation insurance costs, training programs, or safety improvements.

Engage with Your Workers’ Compensation Provider

• Request a Year-End Consultation: Schedule a meeting with your workers' compensation provider or advisor to review your policy, discuss claims, and identify areas for cost savings.
• Leverage Risk Management Resources: Many providers offer free resources, training, and tools to help employers stay compliant and reduce incidents. Take advantage of these offerings to strengthen your program.

At IPMG, we’re committed to helping you stay on top of your workers' compensation compliance and reduce risks as the year draws to a close. Our dedicated team offers comprehensive support, from coverage assessments to tailored risk management resources that help protect your business and employees. By partnering with IPMG, you can confidently address these checklist items, ensuring a streamlined, compliant start to the new year.

Ready to get started? Contact our team at info@ipmg.com.