By decreasing work time lost to job-related injuries and illnesses, Return-to-Work (RTW) programs can reduce your insurance costs (workers' compensation, disability, and medical insurance), strengthen workplace morale, boost productivity, and help protect you against ADAAA litigation.
Ten common mistakes businesses make with RTW programs
- Failure to manage the higher number of employees covered by the ADAAA. An expanded definition of disability has increased the number of employees under the ADA to the point that some attorneys advise against fighting disability claims.
- Insisting on employee release to "full duty" before returning to work. This raises workers' compensation costs and the possibility of the employee not returning to work when medically possible.
- Ignoring co-morbidities. Health issues that complicate or delay an employee's recovery (such as diabetes, obesity, and hypertension) can increase comp claims.
- Failure to commit the necessary budget or resources. The costs of absences and non-compliance with government rules is usually far higher than that of implementing an RTW program.
- Reluctance to set transitional assignments because employees "might get reinjured." It's even riskier to have them stay at home and develop a "disability attitude" that extends the absence and boosts costs.
- Failure to distinguish "light duty" from "transitional work." The ADAAA permits employers to reserve less physically demanding or "light-duty" jobs for those with work-related disabilities — and these jobs should be distinct from transitional tasks.
- Relying on physicians to guide the RTW process. Although physicians are medical experts, they're not always familiar with workplace policies, job demands, and the availability of transitional work.
- Failure to understand overlapping and conflicting laws. The clashing requirements of insurance companies and state and local governments can be a nightmare.
- Inability to focus on the goal. An Integrated Benefits Institute study ranked a focus on the employee's job as the major success factor in successful RTW programs.
- Believing that workers' compensation settlements resolve other liabilities. One size does not fit all.
For program support and specialized coverage options, see Reinsurance Programs and Distributor Program for Metalworking Manufacturing.
If you want to review implementation options with a broker or carrier representative, talk to an agent.
Frequently Asked Questions
What is a Return-to-Work (RTW) program?
An RTW program helps employees resume work after an injury or illness by offering modified duties or schedules designed to match their current abilities while they recover.
How can RTW programs reduce insurance costs?
By shortening time away from work and reducing claim durations, RTW programs often lower workers' compensation and disability payments and associated indirect costs like overtime and training replacements.
When should employers offer transitional work?
Employers should offer transitional work as soon as medical advice allows limited duties that keep the worker engaged and prevent deconditioning or prolonged absence.
Who should coordinate the RTW process?
Coordination typically involves HR, the employer's risk or disability manager, and the treating clinician, with HR ensuring workplace needs and available tasks are aligned with medical restrictions.