Risk & Business Magazine Spectrum Insurance Fall 2019 | Page 4

WORKERS'
COMPENSATION & THE
AGING WORKFORCE
BY: EIVIND OLAND,
INSURANCE COUNSELOR
& ADVISOR
O
lder Americans continue
to delay their retirement
or re-enter the workforce
to supplement their
income. According to the
Bureau of Labor Statistics, the number
of workers between the ages of 55 and
64 is estimated to climb to 29.3 million
by 2020 and make up almost 18 percent
of the labor force. This increase in
older workers introduces the need to
understand the risks associated with
this age group and, as a result, effectively
manage their potentially costly workers’
compensation claims.
THE CHALLENGES
One of the main challenges associated
with older employees is the impact
that they can potentially have on your
organization’s workers’ compensation
costs. These costs come largely from the
growth of employees with pre-existing
and age-related medical conditions, as
well as chronic illness. This is resulting
in a much more difficult and time-
consuming process to prevent and treat
work-related injuries.
For many employers, workers’
compensation claims are growing at a rate
faster than most other costs. Claims for
back injuries, knee injuries, stress, and
4
cumulative trauma disorder continue to
increase as the proportion of aging workers
grows. Addressing the challenge of meeting
the needs of aging workers will not only
decrease workers’ compensation claims but
it can also have a positive effect on both
workplace safety and health care costs.
IT’S TRUE THAT
ACCIDENTS WILL
ALWAYS OCCUR IN
THE WORKPLACE,
BUT THE MAJORITY
OF WORKERS’
COMPENSATION
CLAIMS ARE NOT
ACCIDENTAL.
Rather, they are preventable. And many
of these claims simply occur because
the employee is not physically capable of
performing the duties associated with
the position in a safe manner. This is
especially common with aging workers
due to many of them having pre-existing
injuries or chronic conditions.
CONTROLLING COSTS
While many states’ fair employment acts
prohibit employers from questioning
potential candidates about disabilities
or previous injuries, you can help control
your workers’ compensation costs by
determining if potential employees can
safely perform job duties needed for the
position. Assess candidates’ abilities by
doing the following:
• Have a local medical clinic
provide pre-employment physical
examinations and pre-employment
physical abilities testing to
candidates.
• Invite the clinic’s medical director
and those conducting pre-
employment testing to your facility
so they can better understand the
nature and exertion level needed to
perform the duties of each position.
• Create clear, specific, and accurate
job descriptions to help potential
candidates determine if the physical
strain of the position would be too
much.
• Provide these job descriptions to the
physicians who perform the fit-for-
duty exams to help them better assess
candidates’ physical limitations and