Tag Archives: Workers’ Compensation

Your Company Needs Affordable Workers’ Compensation Insurance

Whether you call it workers’ compensation insurance or workmans’ comp, affordable workers’ compensation insurance is an essential reality for your company. It is a necessity to protect your employees from unexpected injuries or problems at work. Even a small business needs workers’ compensation insurance once they start hiring employees. A major advantage of working with a PEO is access to quality workers’ compensation insurance plans.

Affordable Workers’ Compensation Insurance = Protecting Employees

workers’ compensation insurance

Affordable Workers’ Compensation Insurance

The best argument for workman’s compensation insurance is the coverage. Even in a low-risk job in a low-risk industry, employees still experience work-related injuries. Slip and fall accidents, physical health problems in work environments, or accidents caused by professional equipment can lead to high-cost medical bills. As an employer, it is important to protect your employees and your bottom line. When injuries occur, workman’s comp insurance helps pay for the cost of medical bills and lost work related to the accident.

By purchasing workers’ compensation insurance to help pay for the costs associated with workplace injuries, your company’s employees will have protection against financial difficulties moving forward. By working with a professional employer organization like Total HR Management, you can access affordable workers’ compensation insurance that makes sense to your company’s bottom line.

State Laws and Affordable Workers’ Compensation Insurance

Many states, including California, now have legal standards associated with worker’s compensation coverage. Your small to mid-sized business must review the state standards and comply with any legal requirements. A professional employer organization can help make this happen. If your company hires an employee, you need coverage. Some exceptions may exist for specific types of positions and the number of employees, but most states require coverage even if there is only a single employee.

Although most state laws provide incentives to purchase affordable workers’ compensation insurance for most small to mid-sized businesses, the primary benefit of coverage can be limited. By working with a PEO, your company can access affordable workers’ compensation insurance that provides the coverage that your business needs. Beyond the minimum, we also make sure that your company and your company’s employees are safe and protected moving forward. The cost of workplace injuries adds up quickly, especially if an individual was injured on the job.

Affordable workers’ compensation insurance helps pay for any costs associated with an injury and prevents individuals from going to a court when injuries occur. Moreover, affordable workers’ compensation insurance pays for the medical bills, death benefits or lost wages associated with the injury. It also prevents a lawsuit because an employee cannot ask for further compensation. It is up to the insurance company to determine whether or not additional compensation is appropriate for the specific injuries of an employee.

Finding Affordable Workers’ Compensation Insurance

A high-risk business like construction will have a much higher cost for workers’ compensation insurance when compared to an office job. A high level of risk combined with a low number of employees only adds to the cost. However, Total HR Management has experience helping companies from a wide range of industries and risk levels access affordable workers’ compensation insurance.

For a small to mid-sized business, a professional employer organization helps to reduce the cost associated with insurance coverage. The affordable workers’ compensation insurance package provided by a PEO offers access to more comprehensive benefits programs and insurance plans. By working with a PEO, an employer also can ensure that the company is complying with any state and federal regulations.

Since PEOs assist with risk management and compliance, a small business is able to identify policies that are appropriate based on the risk level and the type of services that the business provides. Furthermore, PEOs help manage workman’s comp insurance concerns so that a business can focus on growth while still maintaining an appropriate level of coverage.

Total HR Management Can Help

Total HR Management offers the assistance and tools that a company needs to find an affordable workers’ compensation insurance plan. Based on the goals and concerns associated with your unique company and your specific industry, we can help.

If you want to learn more about affordable workers’ compensation insurance plans, please contact Total HR Management today. Please call (800) 975-5128 today to speak with an HR professional.


No Legal Advice Intended: This blog includes information about legal issues and legal questions.  Such materials are for informational purposes only and may not reflect the most current legal developments.  These informational materials are not intended, and should not be taken, as legal advice on any particular set of facts or circumstances. You must not rely on the information on this website as an alternative to legal advice from your attorney or another professional legal services provider.


California Law Updates From 2013

Here are links and information about some of the important California Law Updates from 2013.

This content was previously published as a part of a Total HR’s Client Newsletter.

California Law Updates 2013

No Discrimination against women who breastfeed – AB2386 the definition of sex includes breastfeeding and conditions related to breast feeding.

Religious dress & grooming practices are a protected class – AB1964 amends the Fair Employment and Housing Act to include religious dress and grooming practices as part of the protection under religion. This includes the wearing or carrying of religious clothing, head or face coverings, jewelry, artifacts, etc. and all forms of head, facial and body hair that are part of the religious observance.

Temporary services employers – AB1744 updates the Labor Code to require temporary services employers to provide the same information required of other employers.

Employers who contract for labor – AB1855 requires employers who contract labor or services with a construction, farm labor, garment, janitorial, security guard, or warehouse contractor to provide copies of the contacts to the Labor Commissioner on request to verify the contracts include sufficient funds to comply with all existing laws and regulations governing the labor or services provided.


California law updates

California Law Updates

Wage Garnishments – AB1775 provides definition to the term “disposable income” and limits the amount of an individual’s weekly disposable earnings that are subject to garnishment to the lesser of 25% of the individual’s weekly disposable earnings or the amount by which the individual’s disposable earnings for the week exceeds 40 times the state minimum hourly wage.

Overtime for salaried employees – AB2103 amends current Labor Code 515 to provide that a salaried, nonexempt employee must be paid for each overtime hour at a rate that is at least 1.5 times the weekly salary divided by no more than 40.

 Workers’ Compensation Reform – SB863 makes wide-ranging changes to CA’s workers’ compensation system, including increased benefits to injured workers and cost-saving efficiencies.

Employees must receive a wage statement – SB1255 amends labor code 226 to deem that an employee suffered injury if employee (1) does not receive a wage statement; or (2) employer fails to provide accurate and complete information on a wage statement and the employee cannot promptly and easily determine the required information.

No discrimination for health insurance coverage of domestic partners – SB757 amends current law by stating that health care service plans and health care insurance companies are required to offer the same coverage to domestic partners, same sex or not, as they would to the spouse of the insured whether the same sex or not.

Total HR Questions & Answers #12 – What If An Employee Fails To File A Workers’ Compensation Claim After Being Hurt On The Job?

In Total HR Questions & Answers, our PEO (professional employer organization) experts provide answers to questions posed by the management teams of our client companies. The goal is to offer human resources guidance and show how a professional employer organization can be of service by providing an experienced resource of knowledge and insight. The twelfth question in this ongoing series asks what should be done when an employee fails to file a workers’ compensation claim after being hurt on the job.

Question About Employee Failing To File Workers’ Compensation

An employee got hurt on the job but has not filed a workers’ compensation claim. Should we tell the employee to file the claim? As an employer, if the employee doesn’t file a claim, do we have to contact our carrier and let them know what happened or can we just let it pass?

Answer About Employee Failing To File Workers’ Compensation

This is a tough question because you can’t force an employee to do anything they don’t want to do. In general, a company is legally required to report injuries to your workers’ compensation carrier, although workers’ compensation rules and the reporting timelines vary by state. When an employee is hurt on the job, you should report the incident to your carrier. This tends to be the case whether or not your employee wants this to happen.

In terms of time limits for filing claims for employees, “state law varies, but each state has time limits within which you must file a workers’ compensation claim. Common time limits are between 30 days and 90 days. In some states, however, the time limit is much longer. For instance, in California, you have one to five years to file your claim (though you have only 30 days to report the claim to your employer).”

workers compensation

Employeess & Workers’ Compensation

As an employer, as opposed to an employee, check with your carrier for their specific requirements on reporting injuries in regards to workers’ compensation claims. Our recommendation is to report the incident sooner rather than later. An employer should allow their carrier to manage the situation from the outset. It tends to be much more advantageous for both you and your employee to report an on-the-job injury than to fail to report it. Even if coverage for the injury is later denied, reporting the injury is the correct initial action to take.

To learn more about workers’ compensation and the responsibilities of your company, please contact Total HR Management for help by calling (800) 975-5128 or emailing our human resources outsourcing experts at


No Legal Advice Intended: This blog includes information about legal issues and legal questions. Such materials are for informational purposes only and may not reflect the most current legal developments. These informational materials are not intended, and should not be taken, as legal advice on any particular set of facts or circumstances. You must not rely on the information on this website as an alternative to legal advice from your attorney or other professional legal services provider.


Proactive Steps For Great Holiday Parties For Employees

holiday parties

Safe & Smart Holiday Parties

Holiday parties are great, but they come with risks as well. Total HR would like to provide you with some steps on how to reduce liability at events like holiday parties. Companies schedule and plan holiday parties with the best of intentions in order to reward their employees, boost morale and encourage team spirit. But, unfortunately these gatherings, especially when alcohol is served, can turn into an environment for unwanted employee conduct. Given such legal risks, employers should take proactive steps to lessen their litigation liability.

Proactive Steps for Safe Holiday Parties

  • It is always suggested that holiday parties are held off-site at restaurants or banquet rooms, which offer an environment with the least amount of company liability.
  • Have in place comprehensive, written anti-harassment policies, clearly stated in employee handbooks and publicize that policy prior to any holiday parties.
  • Send a memo reminding employees to act responsibly at the party, clearly expressing a lack of tolerance for inappropriate behavior.
  • Enforce the workplace dress code at the party to avoid any inappropriate or suggestive attire.
  • Make attendance at holiday parties voluntary, and do not suggest that attendance will benefit a person’s standing within the company.
  • If alcohol is served, set a tone of moderation in advance through interoffice memos, emails, meetings, inserts into paychecks or other communications, and stress that excessive alcohol consumption will not be tolerated.
  • Limit the number of drinks or the length of time during which alcohol will be served, and provide substantial non-alcoholic alternatives.

Additionally, it is not an open and shut case that holiday parties are not considered “work related activities” for workers comp and other claims – case law and legal decisions seem to have gone both ways. This is another good reason why alcohol consumption should be monitored, to lower the risk of accidents and injuries. Again, it is not uncommon for holiday parties to be held in this setting and there are typically few incidents.

Be on the lookout and avoid risks, even the most minor ones!

Your safety and the success of your holiday party depends on it!

Inflation In Workers’ Compensation Market Motivates Total HR To Shop For Lower Rates And Better Prices

Total HR Management partners with top notch insurance brokers in order to continually negotiate with insurance carriers for lower rates and better prices in relation to Workers’ Compensation coverage for our client companies. Shifts in the California Workers’ Compensation market are leading to significant rate increases for California business owners.  As the marketplace changes, Total HR’s broker partners keep close watch and take quick action to ensure the best for our clients before inflation and price increases have hardened in the marketplace.



Workers' Compenation & Human Resources

As a direct result, Total HR’s workers compensation insurance broker partners are aggressively negotiating with Workers’ Compensation carriers to lower rates and provide the best prices for our clients. In addition, Total HR has several programs in place designed to immediately lower current and future client company’s Workers’ Compensation rates and save money over the long haul.

Recently, there was a recommendation from the WCIRB (The Workers’ Compensation Insurance Rating Bureau of California) that all insurance carriers adjust rates higher in order to raise the reserves available in the general fund.  In addition, multiple insurance carriers are leaving the market, creating an increase in price pressures due to less competition and the overall tightening of the marketplace.

Before delving into the statistical details of what is happening in the California market, let’s take a moment to educate you on how Workers’ Compensation valuation and profits are calculated. Here are some essential points —

  • Trade Combined Ratio (TCR) is an Insurance Carrier’s Profitability Formula of Expenses and Losses.
  • Profitability exists if TCR is less than 100, a number that represents the overall percentage.
  • The Greatest Impact on Trade Combined Ratios is losses in the previous calendar year.
  • From 1998 to 2003, the TCR exceeded 100.
  • From 2004 to 2007, the TCR fell below 100.
  • Latest profitability trends based on the formula indicate 100+ TCR in the coming year.





HR Benefits & Workers' Compensation

In 2009, carriers reported a loss ratio of 74.6% as incurred losses reached $6.85 billion. That loss ratio is up 11.5 points over 2008. The total incurred loss reached 75% after insurance carriers boosted reserves by $38 million last year. In light of the loss of profitability and decreases in the overall market, the result has been significant inflation in Workers’ Compensation costs. The consequence is a tightening of the marketplace, leading to new financial pressures for companies doing business in a challenging economic climate.

Total HR continues to work diligently with our broker partners to find the very best in favorable underwriting qualifications for the Workers’ Compensation packages offered to our client companies. By addressing immediately such changes in the economic climate, Total HR provides the very best in human resources services to our clients, improving both profitability and productivity.


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