Additional Case 12.2
Tri-State Shipping employs 45 workers. They ship commodities across the country. Until recently, they had only legally required benefits, but business has become very profitable and they can now offer their employees more benefits.
The average age of their employees is 50. Most employees have been there for more than 20 years, and the company prides itself on keeping workers. The majority of the jobs require heavy lifting or the operation of heavy equipment for loading and unloading trucks, trains, etc. Their workers' compensation tax has been running about 5% per year. They are in one of the lowest workers' compensation tax rate states, but TSS has had a lot of injuries. The lifting required and type of equipment used tends to result in a lot of sprained backs, mashed fingers, or bruised muscles. When workers are injured, they tend to heal quickly and return to work quickly.
Despite its reputation for keeping workers, the dock supervisor recently fired a 21-year old employee who had been with TSS for 12 months. Even though everyone liked him, the young man just couldn't learn his job.
-Refer to Additional Case 12.2.Which of the following would be the best way to lower the firm's workers' compensation costs?
A) Auditing all employee claims
B) Mandating employee drug tests
C) Placing injured workers on modified duty
D) Emphasizing safe working procedures

Question

Quizplus · Accepted Answer

Emphasizing safe working procedures would be the best way to lower the firm's workers' compensation costs. This would involve training employees to lift safely and operate heavy equipment correctly, as well as enforcing safety procedures in the workplace. By preventing injuries from happening in the first place, the company can reduce the number of workers' compensation claims and lower its costs. Auditing employee claims or mandating drug tests may help prevent fraud or identify drug use, but it would not necessarily reduce the number of injuries. Placing injured workers on modified duty may reduce the cost of their workers' compensation claim, but it does not address the root cause of the injury or prevent future incidents.

Additional Case 12.2 Tri-State Shipping Employs 45 Workers. They Ship Commodities Across the Commodities