Since 2001, total lost wages due to federal employees' workers' compensation claims have totaled approximately $17 billion. In 2007, approximately 46,500 federal employees were out of work due to work-related injuries. This not only has direct costs, as noted, but also indirect costs in terms of the loss of valuable, experienced workers contributing to agencies' missions.

While the federal government continues to focus on improving the safety and health of its employees, the main mechanism for measuring this focus is the Safety, Health and Return to Employment (SHARE) initiative. This initiative, begun by President Bush in 2004, was recently extended through 2009. The initiative focuses on several areas: the timely filing of workers' compensation claims, the reduction of work-related injuries (especially those involving lost time from work), and the prompt return to some level of employment when lost-time injuries occur.

As this initiative progresses, the challenges become more complex. The Labor Department has consistently improved on these fronts, most notably in the timely filing of claims. In 2007, the Department filed timely claims 97.1 percent of the time, and, thus far in 2008, claims have been timely filed 98.6 percent of the time. In addition, our total and lost-time case rates have reduced each year since SHARE's inception.

What this presents, then, is a management challenge. When you have addressed the larger issues that are present in the safety and health arena, how do you continue to make improvements in injury and cost management?

In 2001, the DOL implemented the Safety and Health Information Management System (SHIMS), a web-based online injury and illness reporting system. SHIMS' automatic transmission of claims to the Office of Workers' Compensation Programs (OWCP) is directly responsible for the striking timeliness of claim reporting in the Department. In addition, SHIMS provides reporting and case management tools, allowing the Department's workers' compensation management team to promptly assist injured workers throughout their recoveries and return to work. A recent upgrade to the system also introduced a safety management feature, including ways for employees and safety officers to report unsafe or unhealthful conditions, a means to track accident review boards as future preventative measures, and a way to monitor workplace safety inspections. All of these have assisted in preventing future injuries.

A final challenge in the area of federal workers' compensation management is the continued management of older cases on agency's workers' compensation rolls. Often, these cases involve employees who were injured many years prior, who have had severe injuries and extended workplace absences. It is critical that we maintain a relationship with these employees so that they continue to feel part of the federal workforce and remain ready for a return to employment when medically able. A recent return-to-work effort in the Department aimed to re-establish contact with these employees and their medical providers and to express to each the Department's policy wherein all possible accommodations are made to return any able employee to work. We have had several success stories in this arena, including part-time telework for those with the most stringent work restrictions. These focused efforts have resulted in a direct savings in workers' compensation costs for the Department, which were down more than nine percent from 2006 to 2007.

The challenges in federal workers' compensation management continue. However, with close case management and improved management systems, we are making strides that look out for our employees and save taxpayers money.

Patrick Pizzella was nominated for Assistant Secretary for Administration and Management at the Department of Labor by President Bush on April 25, 2001 and confirmed by the U. S. Senate on May 9, 2001. As Assistant Secretary of Labor, Pizzella serves as the principal advisor to the Secretary of Labor in the administration and management programs of the Department and as the Department's chief information officer and chief human capital officer. He may be reached at Pizzella.patrick@dol.gov.

Special Reports /

Controlling Federal Workers&#039; Comp Costs: A Case Study

Related Stories

Recommended For You

Controlling Federal Workers' Comp Costs: A Case Study