Safety Incentive Programs

HRmama · July 2002

We have had significant increases lately in our Workers' Compensation Experience Ratings and thus our insurance premiums. One of the options management wants to consider is an incentive program whereby employees are offered additional vacation hours for each quarter that their work site is accident-free. They are also interested in setting it up in a manner that these hours (but not hours accrued prior to the employee's voluntary participation in this program) can be docked for violations of company safety rules and possibly for injuries at that particular site. I have reviewed the postings related to incentive programs in TX specifically. Does anyone have any further insight into offering an incentive program such as this in TN, TX, IN, MO, MS, or AL?

Theresa Gegen TX · July 2002

In Texas I wouldn't do it. Many plaintiffs lawyers will use that type of safety incentive program as evidence of worker's comp. discrimination (for example, the company discouraged employees from reporting work place injuries due to rising rates ergo the company has it in for employees who report work place injuries).

There are probably some better ways to go -- for example increase safety training. Do some job and injury analysis to avoid further injuries. Etc.

Before embarking on any program like this, you need to talk to employment lawyers in each of the states to see if these types of programs have liability attached.

Good LucK.

sanniam · July 2002

I work out of IN and have spent many years in safety prior to entering HR. The problem you will have with the program that you describe is that it will encourage people NOT to report injuries. There will be a tremendous amount of peer pressure to not report so that everyone doesn't lose their paid time. Ideally, an incentive plan should reward an individual employee for being accident free.

I also agree with the other posting, and would be concerned about possible allegations of w/c retaliation if people lose a benefit due to an injury.

Don D · July 2002

In MS there are many companies that do and many that don't. We've toyed with it and it seems meaningless and an administration nightmare. The Safety Director in this city at Delphi/Packard, a very large automobile parts mfg and supplier, told our group in a meeting a few months ago, "We will not incent employees to do what they should do in the first place". He said that is an industry standard; however, I don't know the validity of that. Anyway, we currently don't have any rewards program for safety, other than allowing people to keep their jobs if they don't violate our safety standards.

Safety Incentive Programs

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