When an employee suffers an injury on the job, they are entitled to filing a workers’ compensation claim and receiving subsequent benefits. This also applies if this employee is temporarily contracted through a staffing agency. In general, both permanent and contracted employees file a claim the same way.
One variance, however, is that temporary workers must notify the contracted worker and their staffing agency of the injury. The most important difference is that even though the contracted employer needs to be notified, temporary workers file claims directly against their staffing agency. Of course, this doesn’t mean client companies are automatically without liability. A temporary staffing agency and their client company both serve as employers, meaning they both are responsible for protecting employees.
The life cycle of a temporary employee workers’ compensation claim can look very different depending on the factors and jurisdiction involved. However, there are 3 universal actions that must be taken to ensure employers achieve the best possible outcome.
- Report the claim as quickly as possible. By minimizing the time it takes to engage the insurance carrier and their team of expert, the better potential the outcome as carrier experts can guide injured workers through the workers compensation system. Notification needs to include both the client company and the staffing agency.
- A best practice within the industry is to require accident investigations to be performed by both the client and the staffing agency. Even near miss reviews can uncover opportunities to improve safety. A robust accident investigation practice will lead to a safer workplace.
- Deploy, Deploy, Deploy. After an accident has happened it’s time to deploy your carrier’s cost reduction strategies. Partnering with an aggressive claim management minded carrier will lead to lower loss values, lower experience mods, and in turn lower premiums. Strategies can vary by jurisdiction, but modified duty, pharmacy programs, carrier reviewed physician panels are a few strategies that have proven to result in lower incurred values.
The world of workers’ compensation can feel overwhelming and complex to injured workers, especially in the realm of staffing agencies. PEC serves as an alternative option to traditional workers’ compensation insurance and is tailored to the specific needs of the staffing industry.