Workers’ Compensation Rates Continue to Decline

We once again find ourselves heading into a wonderful time of year.  A time which brings about goldening leaves on trees, a discernible chill on the morning breeze, pumpkin spice everything, and new workers’ compensation loss cots and rate sets!  So far 2022 is promising to bring about another wave of rate decreases. 

New York is first out of the gate, approving an overall rate decrease of 6.4% effective 10/1/2021.  The state advises that this loss cost revision reflects the experience of the two most recent policy years, as well as projected trends, benefit level changes, and changes in loss adjustment expenses.

According to the attached 2021 Loss Cost Filing the proposed loss cost change is based on the latest financial data reported by the Rating Board’s member carriers, which includes losses resulting from the COVID­19 pandemic, and was derived by applying Rating Board’s standard ratemaking methodology. The terrorism and catastrophe loss cost provisions have also been updated with this revision. However, no explicit load for the risk of pandemics is included.

Florida followed suite announcing on Friday, 8/27/2021 a proposed overall rate decrease of 4.9%.  If approved, these reduced rates will take effect on 1/1/2022.  This continues the trend of continually dropping rates which Florida has been witnessing since 2016. 

We will continue to monitor this activity and keep you informed as more states propose and approve the 2022 loss costs. 

OSHA Will Not Amend its COVID-19 ETS Despite CDC Guidance

OSHA recently determined it will not be making changes to the healthcare emergency temporary standard (ETS) after reviewing the latest guidance, science and data on COVID-19, and the recently updated CDC face mask guidance. However, OSHA will continue to monitor and assess the need for changes monthly.

OSHA determined that neither the CDC’s guidance on health care settings nor the underlying science and data on COVID-19 in health care settings has materially changed in a way to necessitate changes in the June 10, 2021 ETS.

Revised CDC Guidance

The CDC recently announced updates to its face mask guidelines, recommending that fully vaccinated individuals should wear a mask in public, indoor settings in areas where there is high or substantial COVID-19 transmission, including of the new coronavirus delta variant. Prior to this update, the CDC guidance allowed fully vaccinated individuals to stop wearing a mask in most settings.

OSHA’s Healthcare ETS

Since OSHA has not changed its requirements for the healthcare ETS, the face mask exceptions under the standard still apply. The healthcare ETS covers employers in various health care industries, such as hospitals, nursing homes, assisted living facilities, emergency responders, home health workers and employees in ambulatory care settings where suspected or confirmed COVID-19 patients are treated.

Next Steps

Health care employers should continue to monitor the OSHA website for updates on how changes in COVID-19 transmission affect agency policy and guidance. OSHA will continue to assess the need for changes monthly.

ETS Face Mask Exceptions:

Employees are not required under the healthcare ETS to wear face masks when:

  • They are alone in a room;
  • They are eating & drinking;
  • It is important to see a person’s mouth while communicating;
  • Employees are unable to wear face masks due to a medical necessity or condition; or
  • Use of a face mask presents a hazard to an employee of serious death or injury.

This is Why You Should Double Check Your Cyber Insurance Policy

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Whether a business is in healthcare, accounting, legal, real estate, manufacturing, etc., most of a business’ important assets are digital. (Government municipalities are included too.) To make matters complicated, it’s very common for these digital assets to be stored in various systems and locations, intertwined with a third party’s digital information. With so many opportunities for disaster, steps must be taken to insure this critical information.

Cyber insurance is a new frontier that is rapidly evolving as the industry gets its bearings. Many companies are finding that their current cyber policies have very minimal coverage in case of a cyber breach, and the majority of these policies will not come close to providing the necessary breach coverages to the business or municipality.

When looking at your existing or new cyber policy, it’s important to consider these types of coverages:


As we have come to realize, the idea that security starts and ends with the purchase of a pre-packed firewall is simply misguided

Art Wittman

1. Privacy Breach Notification

Some reports estimate the notification and credit monitoring costs alone are over $100 per record, so if you had 1,000 compromised records, this alone could cost $100,000 or more.

2.Data Loss Restoration

Believe it or not, many large insurance carriers have policy exclusions for the replacement and restoration of data, so be very careful in this area when reviewing your policy.

3. Privacy Liability

This covers for the theft or loss of private information related to customers and other third-party information that is in your care.

4. Regulatory and PCI Defense

Many industries are under strict regulatory control, and breaches may result in fines and other penalties from these regulatory agencies.

5. Public Relations

If an enterprise has a breach, the bad press they receive can do significant long term reputational damage and can also be used by competitors to their advantage. This coverage will help hire a public relations firm to mitigate the reputational damage your name brand might incur.

6. Cyber Crime

If your organization is threatened with various cyber threats such as malicious code that will result in financial loss or data loss, this coverage is needed for the reimbursement of the costs associated with these threats.

7. Defense and Settlement costs

A breach affecting a lot of customers may result in lawsuits and financial settlements, so insurance coverage is needed to offset these potentially enormous costs.

8. Consulting and Forensic Fees

If a breach does occur, the upfront investigative process will require a lot of professional expertise and a lot of money, and this specific coverage will offset these significant costs.

9. Business Continuity

If a hack causes your business to lose income, this coverage will reimburse you for these losses.

It takes 20 years to build a brand or company reputation and a few minutes within a cyber incident to ruin it

Stephane Nappo

For a free cyber insurance policy evaluation, contact Libertate Insurance today at 813-367-7574 or email me, James Buscarini at jbuscarini@libertateins.com.

Our professionals are happy to review and discuss your firm’s existing cyber liability insurance policy and the relation to your unique business requirements, needs and cyber coverage. Our goal is to help your PEO and client companies navigate the cyber liability insurance landscape and identify potential vulnerabilities that could be exposed based on your existing technology network and infrastructure. Finally, we want to make sure that in the event of a ransomware attack, business email compromise or phishing expedition your firm has adequate coverage in each of the areas that you might be vulnerable to be targeted in.

CYBER RISKS & LIABILITIES – Penetration Testing Explained

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Keeping workplace technology up and running is vital to any organization’s success. While this task seems feasible, it’s growing harder and harder each year as cybercriminals expand their reach.  It’s not enough to simply protect workplace technology with software and security protocols. It’s also critical for your organization to test the overall effectiveness of these protocols on a regular basis. That’s where penetration testing can help.

Essentially, penetration testing consists of an IT professional mimicking the actions of a malicious cybercriminal to determine whether an organization’s workplace technology possesses any vulnerabilities and can withstand their attack efforts. Conducting a penetration test can help your organization review the effectiveness of workplace cybersecurity measures, identify the most likely avenues for a cyberattack and better understand potential weaknesses.

Review this guidance to learn more about what penetration testing is, the benefits of such testing and best practices for carrying out a successful test within your organization.

What Is Penetration Testing?


Put simply, penetration testing refers to the simulation of an actual cyberattack to analyze an organization’s cybersecurity strengths and weaknesses. This testing usually targets a specific type of workplace technology, such as the organization’s network(s), website, applications, software, security systems or physical assets (e.g., computers and smart devices). Penetration testing can leverage various attack methods, including malware, social engineering, password cracking and network hacking, among others. Generally speaking, penetration testing is often performed by a professional from a contracted IT firm who is not associated with the organization being assessed in any way. This helps the cyberattack simulation seem as authentic as possible. Penetration testing is typically either external or internal in nature. The primary differences between these forms of testing are as follows:

  • External penetration testing requires the IT expert to attack an organization’s external-facing workplace technology from an outside perspective. In most cases, the IT professional won’t even be permitted to enter the organization’s physical establishment during external penetration testing. Rather, they must execute the cyberattack remotely—often from a vehicle or building nearby—to imitate the methods of an actual cybercriminal.
  • Internal penetration testing allows the IT expert to attack an organization’s internal-facing workplace technology from an inside perspective. This form of testing can help the organization understand the amount of damage that an aggrieved employee could potentially inflict through a cyberattack. 

In addition to these testing formats, there are also two distinct types of penetration tests. How much information an organization provides the IT professional prior to the cyberattack simulation will determine the penetration test type. Specifically:

  • An open-box test occurs when the IT expert is given some details regarding the organization’s workplace technology or cybersecurity protocols before launching the attack.
  • A closed-box test occurs when the IT expert is provided with no details other than the organization’s name before conducting the attack.

Ultimately, the penetration testing format and type should be selected based on the particular workplace technology elements or cybersecurity measures that an organization is looking to evaluate.


Benefits of Penetration Testing

Penetration testing can offer numerous advantages to your organization, including:

  • Improved cybersecurity evaluations—By simulating realistic cyberattack situations, penetration testing can help your organization more accurately evaluate its varying security strengths and weaknesses—as well as reveal the true costs and of any security concerns.
  • Greater detection of potential vulnerabilities—If any of your workplace technology or other cybersecurity protocols fail during a penetration test, you will have a clearer picture of where your organization is most vulnerable. You can then use this information to rectify any security gaps or invest further in certain cyber initiatives.
  • Increased compliance capabilities—In some sectors, organizations are legally required to engage in penetration testing. For example, the Payment Card Industry Data Security Standard calls for organizations that accept or process payment transactions to execute routine penetration tests. As such, conducting these tests may help your organization remain compliant and uphold sector-specific expectations.
  • Bolstered cybersecurity awareness—Mimicking real-life cyberattack circumstances will highlight the value of having effective prevention measures in place for your employees, thus encouraging them to prioritize workplace cybersecurity protocols.

Penetration Testing Best Practices

Consider these top tips for executing a successful penetration test within your organization:

  • Establish goals. It’s crucial for you to decide what your organization’s goals are regarding the penetration test. In particular, be sure to ask:
  • What is my organization looking to gain or better understand from penetration testing?
  • Which cybersecurity threats and trends are currently most prevalent within my organization or industry? How can these threats and trends be applied to the penetration test?
  • What specific workplace technology elements or cybersecurity protocols will the penetration test target?
  • Select a trusted IT professional. Consult an experienced IT expert to assist your organization with the penetration test. Make sure to share your organization’s goals with the IT professional to help them understand how to best execute the test.
  • Have a plan. Before beginning the penetration test, work with the IT expert to create an appropriate plan. This plan should outline:
  • The general testing timeframe
  • Who will be made aware of the test
  • The test type and format
  • Which regulatory requirements (if any) must be satisfied through the test
  • The boundaries of the test (e.g., which cyberattack simulations can be utilized and what workplace technology can be targeted)
  • Document and review the results. Take detailed notes as the penetration test occurs and review test results with the IT expert. Look closely at which cybersecurity tactics were successful during the attack simulation and which measures fell short, as well as the consequences of these shortcomings. Ask the IT professional for suggestions on how to rectify security gaps properly.
  • Make changes as needed. Based on penetration test results, make any necessary adjustments to workplace technology or cybersecurity protocols. This may entail updating security software or revising workplace policies.
  • Follow a schedule. Conduct penetration testing at least once every year, as well as after implementing any new workplace technology.

If you are a Risk Manager or Principal of a PEO and want to learn how you could help protect your client company’s interests through our affordable Master Cyber Liability program, eMail James Buscarini, Fl License #A036520 at jbuscarini@libertateins.com to find out more. The Master Cyber program is written through Axis, an A rated carrier, 250K in coverage, no underwriting, and a revenue generator!

Food For Thought Friday: Employee Retention and Attracting New Talent

Our hopes with this Friday post is to tantalize a different aspect of our business brains! We’re pulling together a few interesting pointers on employee retention and attracting new talent.

Small businesses continue struggling to retain and attract team members. Did COVID really unleash a population of, “I don’t really want to work!”? Quite possibly, but here are some thoughts on how to incentivize your assets, your work force.

One size NEVER fits all, tailor benefits offerings in a way that attracts and retains the best employees. Start this process is by surveying existing and potential employees. Ask your team what types of benefits would interest them the most. Use this data to make better benefits decisions. Business owners put substantial energy and time into these plans, why not create Boutique Style and customize a plan that excites your employees!

While each workforce will have unique needs and interests, there are some commonalities seen among small business employees. Here are six of the most popular benefits that small businesses are using to attract and retain employees.

First Up is the dreaded but, “Oh So Necessary” Health Care Coverage. Good health coverage is important but also expensive! This will likely be an important benefit to your employees with families or those further along in their years of experience. Some employees need a plan to cover same sex spouses. Consider doubling down on health coverage rather than picking up expenses for ancillary benefits that may not be of interest to the majority of your team. Going to work every day knowing that your employer cares about your health and the health of those important to you could be a game changer in the candidate pool.

Leave benefits vary by workplace, but typically include paid time off (PTO), vacation days and sick time. These types of leave usually come with specific use requirements. For employers looking to attract and retain employees, expanding these benefits could be a great leverage tool. This may include allowing faster PTO accrual, providing more sick days or allowing for flexible scheduling. Implement a remote work policy for those employees that can handle it. Let them know that they have earned your trust and are valued enough to allow them to work efficiently and effectively at home.

The third incentive on our list is the always exciting, Performance Bonus. Employees want to be recognized for their hard work. Failing to do so can lower morale and affect retention. Introducing performance bonuses as an employee benefit can be a way to combat this. Performance bonuses will vary, but the general idea is to compensate employees in some way for a job well done. How this looks in practice will depend on the employer. For instance, employees might receive incentives such as gift cards, cash, additional PTO or other perks, depending on their achievement. However, before implementing such bonuses, employers should ensure compliance with any applicable workplace laws regarding employee compensation.

Financial security is very important to employees, and that sentiment grows as employees near retirement age. It’s also top of mind for those struggling financially thanks to the COVID-19 pandemic. Employees invest their time and energy into their work. As a tradeoff, many employees want their employers to invest in their retirements in return for years of service. Offering a 401(k) with contribution matching can be a powerful attraction and retention tool, as it demonstrates an employer’s investment in their workers in the long term. 

Surveys suggest employees have been putting off job changes during the COVID-19 pandemic, meaning a wave of turnover may be coming soon. Employers may want to think proactively about ways to keep employees around. In other words, when it comes to top performers, employers should be reluctant to let these employees go. That’s where professional development comes in. YES! Some employees are driven by more than just compensation! Generally, this involves cross-training employees on other positions or otherwise preparing them to take on additional responsibilities. This helps provide the employee with more growth opportunities while still keeping them within the business. Offering such development opportunities also signals to prospective employees that a workplace has upward mobility and is willing to help workers along with their career goals—two factors that can weigh heavily in recruiting conversations. This one will actually work well for your business; cross-training provides security in your foundation and non reliance on any one individual for any one function.

Last up! Wellness is a hot topic these days, and employees are looking more and more for employers who take wellness seriously. This can be especially true in the wake of the COVID-19 pandemic, where health consequences are interwoven with everyday decisions. In fact, through the lens of the pandemic, ignoring wellness initiatives may be interpreted as ignoring overall health—something employers obviously want to avoid.  

Different workplaces will offer different wellness benefits, but the purpose of any of them is generally to increase employees’ overall well-being. For instance, benefits may include mental health counseling, healthy breakroom snacks, gym memberships, fitness trackers, yoga sessions or other perks. When it comes down to it, employees want to feel like their employers care about them as individuals. This means prioritizing well-being.

Remember, you do not need to implement all of these suggestions. Survey your team, understand what is important to them, contact your benefits provider or PEO and start customizing your benefits package.

Thinking about a PEO and how your small business can benefit, Libertate Insurance can help.

White House Issues Ransomware Prevention Guidance to Businesses

In a recent letter addressed to corporate executives and business leaders, the White House emphasized that
bolstering the nation’s resilience against cyberattacks is a main priority for President Joe Biden’s administration.
Specifically, as ransomware attacks continue to rise in both cost and frequency throughout the country, the
federal government is urging businesses to take this evolving cyber threat seriously.

These attacks—which entail a cybercriminal deploying malicious software to compromise a business’s network or
sensitive data and demand a large payment be made before restoring this technology or information—have
quickly become a growing concern across industry lines. In fact, the latest research provides that ransomware
attacks have increased by nearly 150% in the past year alone, with the median ransom payment demand
totaling $178,000 and the average overall loss from such an attack exceeding $1 million.

While the White House has begun working with both domestic and international partners on various strategies to
prevent ransomware attacks, the Biden administration is also encouraging businesses to play their part in
minimizing this rising cyber concern. Rather than viewing ransomware attacks as a minor cyber risk, the federal
government is instructing businesses to view these attacks as a significant exposure—one with the potential to
wreak havoc on their key operations.

As such, the Biden administration is recommending that businesses convene with their senior leadership teams
to review their ransomware exposures and implement these top cybersecurity measures:


  • Utilize the federal government’s best practices. Businesses should be sure to incorporate the best
    practices outlined in the Biden administration’s Executive Order on Improving the Nation’s Cybersecurity. This
    includes the following practices:
    o Implementing multi-factor (MFT) authentication on all workplace technology
    o Leveraging endpoint detection and response tools to identify and deter suspicious network activity
    o Encrypting sensitive data to make it less accessible to cybercriminals
    o Developing a trusted and skilled workplace cybersecurity team
  • Ensure an effective incident response plan. All businesses should have cyber incident response plans in
    place. These plans outline proper response protocols and offer steps for minimizing potential damages during
    cyberattacks. Businesses should make sure to include several ransomware attack scenarios within their
    response plans and routinely test these scenarios with their cybersecurity teams. Based on test results,
    businesses should revise their response plans accordingly.
  • Conduct frequent data backups. In addition to the federal government’s best practices, businesses should
    also prioritize securely backing up all sensitive data, images and other important files on a regular basis.
    Conducting such backups can help businesses remain operational and continue to access crucial data in the
    event that any workplace technology is compromised in a ransomware attack. Data backups should remain
    offline (not connected to key business networks) and be routinely tested.
  • Keep critical networks separated. In order to keep ransomware attacks from fully disrupting their operations, businesses should attempt to segment their various workplace networks (e.g., sales production, and corporate) from one another rather than having a unified network. Access to each network should be restricted to those who use them to conduct their job tasks. Networks should only allow internet access as needed. That way, businesses can avoid becoming completely compromised by single-network ransomware attacks and continue performing critical functions.

  • Maintain updated security software. To help safeguard workplace technology from ransomware threats,
    businesses should equip their systems and devices with adequate security software—such as antivirus
    programs, firmware protections and firewalls. Further, this software must be regularly updated to remain
    effective. That being said, businesses should also consider utilizing centralized patch management systems to
    keep security software on a consistent update schedule.
  • Review workplace cyber security protocols. Apart from testing their response plans, businesses should
    also regularly assess whether their existing workplace cybersecurity policies, procedures and software are
    sufficient in protecting against current risks—such as ransomware threats. In particular, businesses should
    consider using a third-party penetration tester to review their ransomware defense tactics and overall
    cybersecurity capabilities. Businesses should work with their trusted cybersecurity teams and IT experts to
    make workplace adjustments as needed (e.g., updating policies or purchasing new security software).

For additional risk management guidance and insurance solutions email me James Buscarini, PCA at jbuscarini@libertateins.com or call me at 813.367.7574.

The Week in Review

We hope you had time this week to review some great posts by Paul Hughes and James Buscarini. 

On Tuesday, James shared with us some great tips on how smaller employers can attract and retain talent when competing with larger firms.  Check out his post on 6 Benefits to Attract and Retain Small Business Employees.    

On Thursday, Paul reminded us of the ongoing trends which are playing out in the realm of cyber Insurance.  According to content sourced from AM Best, we are witnessing an increase in both frequency of events as well as average cost per event in the cyber space.  This trend will, no doubt, bring about not only marked increases in cyber insurance premiums, but more rigorous requirements in cyber security by carriers willing to continue offering products in this space.  For full details, check out his post Annual Growth of Cyber Claims is Double Growth of Cyber Premiums.  

On this day, June 11th in 1776 the Continental Congress created a committee to draft a Declaration of Independence with Thomas Jefferson, John Adams, Benjamin Franklin, Roger Sherman, and Robert R. Livingston as members.  Thomas Jefferson primarily penned the original draft which was dived into five sections, including an introduction, a preamble, a body (divided into two sections) and a conclusion.  While the body of the document outlined a list of grievances against the British crown, the preamble includes its most famous passage: “We hold these truths to be self-evident; that all men are created equal; that they are endowed by their Creator with certain inalienable rights; that among these are life, liberty and the pursuit of happiness; that to secure these rights, governments are instituted among men, deriving their just powers from the consent of the governed.”

The Continental Congress reconvened on July 1.  The process of consideration and revision of Jefferson’s declaration continued on July 3 and into the late morning of July 4, during which Congress deleted and revised some one-fifth of its text. The delegates made no changes to that key preamble, however, and the basic document remained Jefferson’s words. Congress officially adopted the Declaration of Independence later on the Fourth of July (though most historians now accept that the document was not signed until August 2).

What would Thomas Jefferson think of our cyber insurance woes of today?

Happy Friday everyone!! 

Disciplining or Terminating Employees With Open Workers’ Compensation Claims

Can an employer discipline or terminate an employee who has an open workers’ compensation claim? This is a common question that many employers ask. The answer depends on which state the company is located in, why the employee is being disciplined or terminated and the nature of the workers’ compensation claim. Let’s look at an example.

Say an employee is insubordinate to their supervisor, and this issue has occurred more than once. While the employee has been reprimanded, they continue to disobey company policies or procedures. However, the employee has an open workers’ compensation claim from an occupational injury. As a result, the employer may question whether they can continue to discipline or terminate the employee due to poor behavior.

Review this article to learn more about when an employer can discipline or terminate employees with open workers’ compensation claims.

What Is an Open Workers’ Compensation Claim?

In general, an open workers’ compensation claim can mean that an occupational injury or illness is currently being treated, benefits are still being paid, rehabilitation is in process or the employee has not yet reached maximum medical improvement.

Workers’ compensation claims can stay open for several years, depending on how severe the injury or illness was and what the treatment for that ailment entails.  

If an employee’s claim is still open, this generally means that the claim is still active in the workers’ compensation system.

When Can an Employer Discipline or Terminate?

While employers cannot retaliate against their employees for filing workers’ compensation claims, this does not mean that they are unable to discipline or terminate an employee who has an open claim. There are various reasons as to why an employer could discipline or terminate an employee. For example, an employer could potentially be permitted to discipline or terminate an employee with an open workers’ compensation claim in these circumstances:

  • After obtaining permanent restrictions, the employee can no longer complete the job tasks that were initially assigned to them.
  • Company-wide layoffs are necessary.
  • Leading up to their injury or illness, the employee had poor work performance, and this issue was properly documented.

However, it’s important to remember that employers must have detailed documentation and be consistent in their practices with all employees. In addition, employers must ensure that they are not violating any other laws when disciplining or terminating an employee. After all, just because there is no issue with workers’ compensation laws, does not mean there won’t be any compliance concerns related to disability regulations or other fair employment standards.

Documentation Is Key

In most states, it’s illegal to discipline or terminate an employee because the employee filed a workers’ compensation claim. This is considered retaliation, and employees are protected from this practice under workers’ compensation laws. By terminating an employee for filing a workers’ compensation claim, an employer could open themselves up to serious litigation issues. Employers can end up paying significant compensatory and punitive damages for retaliation claims.

But what happens when an employee’s behavior or attitude creates work performance issues? For example, an employee may fail to complete assigned work within the required time, be insubordinate to a supervisor or show up late to work—thus showcasing a poor work performance. As soon as these issues occur, the employer should start documenting them. This provides a foundation for the employer, helping them justify disciplinary action or termination—even if the employee has an open workers’ compensation claim.

However, suppose an employer only starts documenting issues after an employee makes a workers’ compensation claim, even though the behavior had already been occurring before the claim happened. In that case, it could seem as though the behavior became a problem only because of the workers’ compensation claim.

If an employee’s performance issues began after an injury or illness and during the open workers’ compensation claim, it should be noted in the employee’s personnel file with detailed notes. From there, the employer should complete a full investigation into what occurred. This way, the employer will have sufficient documentation in the event that the employee files a lawsuit against them for being disciplined or terminated during the course of an open claim.

Employers should also be consistent in their disciplinary and termination practices. If there’s no consistency, discrimination or wrongful termination claims could arise against the employer. It’s important that—when an employer is considering whether to discipline or terminate an employee—they follow these measures:

  • Document the employee’s misconduct.
  • Thoroughly investigate the misconduct.
  • Obtain witness statements (if applicable).
  • Record any disciplinary actions that the employee received, or provide reasons as to why no discipline was required.
  • Record the reason for the employee’s termination (including any documentation regarding a probationary period).

Documenting the situation with very detailed notes could help an employer defend themselves against any wrongful termination or discrimination claims that may occur.

Is it Retaliation?

Employer actions that could potentially be deemed unlawful retaliation when made against an employee with an open workers’ compensation claim include:

  • Changing the employee’s job tasks, even though the employee is still able to perform them
  • Changing the employee’s work schedule
  • Demoting the employee
  • Reducing the employee’s hours

If an employer is deemed to have wrongfully retaliated against an employee, they can be liable for various penalties, such as fines or—in severe cases—jail time.

What Happens to the Workers’ Compensation Claim if the Employee Is Terminated?

If an employee who has an open workers’ compensation claim is terminated, the claim will continue to stay open. The employer will still be responsible for the coverage of the employee’s occupational injury or illness—unless the insurance carrier, a state agency or a court determines otherwise.

It is usually in an employer’s best interest to keep an employee who has an open claim working. Doing so allows the employer to directly communicate with the employee, closely monitor the employee’s medical treatment progress and have more input as to what the employee is doing in recovery.

Employees who have been terminated, on the other hand, tend to be very hard to reach—which makes the employer’s task of following up with them that much more complicated. What’s more, an employer does not have the same kind of direct access to a terminated employee as they would have to an employee who continues working. This access can be helpful for monitoring the employee’s healing process and holding the employee accountable for following proper medical restrictions. If an employee is terminated and then hired by another company, it will become extremely difficult to make sure the employee follows their restrictions.

In any case, employers need to weigh the pros and cons of termination versus keeping an employee working. For instance, not terminating an insubordinate employee simply because they have an open workers’ compensation claim may end up being costlier than any potential retaliation claim that the employer could otherwise face for the termination itself. Each situation is different, but employers should always keep in mind that consistency is key when determining what kind of circumstances or employee actions may warrant termination.

Contact us today with any questions about workers’ compensation insurance.