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OSHA Releases Updated Workplace Safety and Health Voluntary Practices

To help medium and smaller-size businesses initiate effective safety and health programs, the Occupational Safety and Health Administration today released Recommended Practices for Safety and Health Programs, an update of its 1989 guidelines, reflecting changes in the economy, workplaces, and evolving safety and health issues. The recommendations feature a new section on multi-employer workplaces and a greater emphasis on continuous improvement, OSHA said.

“Since OSHA’s original guidelines were published more than 25 years ago, employers and employees have gained a lot of experience in how to use safety and health programs to systematically prevent injuries and illnesses in the workplace,” Dr. David Michaels, assistant secretary of labor for occupational safety and health said in a statement. “We know that working together to implement these programs will help prevent injuries and illnesses, and also make businesses more sustainable.”
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The recommendations include seven core elements for a safety and health program:

• Management leadership
• Worker participation
• Hazard identification and assessment
• Hazard prevention and control
• Education and training
• Program evaluation and improvement
• Communication and coordination for host employers, contractors and staffing agencies

Implementing recommended practices brings benefits to businesses that include healthier employees, fewer injuries and, ultimately, lower workers compensation costs:

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  • Preventing workplace injuries and illnesses
  • Improving compliance with laws and regulations
  • Reducing costs, including reductions in workers compensation premiums
  • Engaging workers
  • Enhancing their social responsibility goals
  • Increasing productivity and enhancing overall business operations

Because management leadership is an important part of the equation, OSHA recommends that business owners, managers, and supervisors:

  • Make worker safety and health a core organizational value.
  • Be fully committed to eliminating hazards, protecting workers, and continuously improving workplace safety and health.
  • Provide sufficient resources to implement and maintain the safety and health program.
  • Visibly demonstrate and communicate their safety and health commitment to workers and others.
  • Set an example through their own actions.

To establish a program, OSHA said organizations need to create a written policy signed by top management that describes the organization’s commitment to safety and health. By creating specific goals and objectives, management sets expectations for the company’s managers, supervisors and workers. The goals and objectives should focus on specific actions that will improve workplace safety and health, OSHA said.

Aug. P&C Rate Holds at Minus 1%; Auto, Transportation Up

The U.S. property and casualty composite rate for August was stable at minus 1%, the same as July, MarketScout reported. By industry classification, manufacturing, habitational and energy each moderated 1% , while all otherBarometer industry classifications remained unchanged.

“While the month to month composite rate is stable, there is clear movement in commercial auto and transportation accounts with each showing a year over year rate increase of plus 3%,” said Richard Kerr, CEO of MarketScout. “Insurers have decided it is time for commercial auto and transportation accounts to start paying up.”

By coverage, commercial property, workers compensation and professional liability each moderated 1% in August—to minus 1% for property, minus 1% for workers compensation and flat for professional liability. Commercial auto rates went up to plus 3%, while all other coverages remained unchanged, MarketScout said.

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By account size the only adjustment was for accounts with more than million premium, which adjusted from down 3% in July to down 2% in August.

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Employer Accountability Targeted by Osha and DOJ

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OSHA and the Department of Justice (DOJ) formally agreed to team their investigations and prosecute worker endangerment violations on Dec. 17, 2015. While the agencies have worked together in the past, this is now a formal arrangement which employers should be very concerned about, especially those with something to hide. Facing OSHA is bad enough, but it’s a walk in the park compared to tangling with the Department of Justice.

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“On an average day in America, 13 workers die on the job, thousands are injured, and 150 succumb to diseases they obtained from exposure to carcinogens and other toxic and hazardous substances while they worked,” said Deputy Attorney General Sally Quillian Yates in a memo sent to all 93 U.S. Attorneys across the country. “Given the troubling statistics on workplace deaths and injuries, the Department of Justice is redoubling its efforts to hold accountable those who unlawfully jeopardize workers’ health and safety.”

Deputy Yates urged federal prosecutors to work with the DOJ in pursuing worker endangerment violations. The worker safety statutes provide only for misdemeanor penalties. Prosecutors, however, are now encouraged to consider utilizing Title 18 and environmental offenses, which often occur in conjunction with worker safety crimes, to enhance penalties and increase deterrence. Title 18 of the United States Code is the criminal and penal code of the federal government, dealing with federal crimes and criminal procedure.

This cooperation could lead to hefty fines and prison terms for employers and individuals convicted of violating a number of related laws.

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For example, the owner of a roofing company may go to prison for up to 25 years in connection with the death of one of his workers who fell off of a roof. Not only did the worker not have the required fall protection equipment, but the owner then lied to OSHA inspectors.

James McCullagh, owner of James J. McCullagh Roofing Inc. of Philadelphia, pleaded guilty in federal court to six charges in connection with the death of Mark Smith in June 2013. Smith fell 45 feet from a roof bracket scaffold while repairing the roof of a church in Philadelphia.

McCullagh pleaded guilty to one count of willfully violating an OSHA regulation causing death to an employee (failing to provide fall protection equipment) and four counts of making false statements. He admitted lying to investigators that he had provided safety gear and harnesses to his employees when, in fact, he hadn’t.

McCullagh also admitted to telling an OSHA inspector he had seen his employees in harnesses and tied off earlier on the day Smith fell to his death. McCullagh pleaded guilty to one count of obstruction of justice for instructing workers to tell OSHA investigators that they had safety equipment when they did not. He was sentenced in March 2016 to 10 months in prison as well a one year of supervised release and a $510 special assessment.

“No penalty can bring back the life of this employee,” said OSHA chief David Michaels, “but the outcome, in this case, will send a clear message that when employers blatantly and willfully ignore worker safety and health responsibilities, resulting in death or serious injury to workers, or lie to or obstruct OSHA investigators, we will pursue enforcement to the fullest extent of the law, including criminal prosecution.”

While criminal prosecution in worker fatalities is still a rarity, the likelihood of charges being brought increases when there is suspicion of lying to OSHA or other federal officials.

This partnership has been brewing for a while, as the Justice Department has tried to use the nation’s tougher environmental statutes to bring stronger prosecutions of workplace safety violations by focusing on companies that put workers in danger.

OSHA has placed emphasis on criminal enforcement of workplace safety violations recently by referring more cases to the Department of Justice and U.S. Attorneys offices for criminal prosecution. They referred or assisted with the criminal prosecution of 27 cases in fiscal year 2014—the highest ever in OSHA history.

What can an employer do to avoid the double team? They first need a strong offense by recognizing that under the OSHA Act, they are responsible for providing a safe and healthful workplace. Second, they must know that OSHA’s mission is to assure safe and healthful workplaces by setting and enforcing standards. They also provide training, outreach, education and assistance.

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OSHA inspections can be conducted without advance notice, on-site or by phone by highly trained compliance officers. Their priorities are imminent danger; catastrophes and fatalities; worker complaints; targeted inspections due to high injury or illness rates; and severe violators as well as follow-up inspections.

One of the errors many employers make is waiting too long to put an effective program in place. They risk a huge fine, being placed on the Severe Violators Enforcement list, or even jail. Before OSHA shows up, companies need to establish good safety and health programs with four essential elements:

  • Management Commitments and Employee Involvement. The manager or management team must lead the way by setting policy, assigning and supporting responsibility, setting an example and involving employees.
  • Worksite Analysis. The worksite is continually analyzed to identify all existing and potential hazards.
  • Hazard Prevention and Control. Methods to prevent or control existing or potential hazards are put in place and maintained.
  • Training for Employees, Supervisors and Managers. Managers, supervisors, and employees are trained to understand and deal with worksite hazards.

“Every worker has the right to come home safely. While most employers try to do the right thing, we know that strong sanctions are the best tool to ensure that low road employers comply with the law and protect workers lives,” said Assistant Secretary for Occupational Safety and Health Dr. David Michaels. “More frequent and effective prosecution of these crimes will send a strong message to those employers who fail to provide a safe workplace for their employees.

We look forward to working with the Department of Justice to enforce these life-saving rules when employers violate workplace safety, workers’ health and environmental regulations.”

That’s why it is important to have a living, targeted safety program, versus one copied from another employer or one quickly downloaded from a website. OSHA inspectors can quickly determine if a program is real or just a binder on a shelf.

Given the formal partnership with OSHA, the Justice Department’s renewed focus on prosecuting individuals, company executives, managers, and supervisors for workplace safety violations, organizations should note the enhanced risks, and implement measures to stay in the clear and keep their workers safe.

P&C Rates Drop 2% in May

The rate index for property and casualty risks was down 2% in May, the same as was seen in April, MarketScout reported.

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Accounts of more than $250,000 were priced more aggressively in May, at minus 3% compared to minus 2% in April.

“The market was stable in May with small movements in coverage, industry, and size classifications,” MarketScout CEO Richard Kerr said. “As we have seen in the past, larger premium accounts were priced more aggressively. Overall, the composite rate was down 2% in May, matching the rate for April.”

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According to the Insurance Information Institute:

A dominant factor in the P/C insurance cycle is intense competition within the industry. Premium rates drop as insurance companies compete vigorously to increase market share. As the market softens to the point that profits diminish or vanish completely, the capital needed to underwrite new business is depleted.

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In the up phase of the cycle, competition is less intense, underwriting standards become more stringent, the supply of insurance is limited due to the depletion of capital and, as a result, premiums rise. The prospect of higher profits draws more capital into the marketplace, leading to more competition and the inevitable down phase of the cycle.

By coverage classification, rates for property, business interruption, professional, auto, directors and officers, and surety all moderated 1% compared to April. Crime coverage increased from flat to plus 1%.

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Industry classifications are examined to determine rate movement as measured when grouping accounts according to their SIC, or Standard Industrial Classification codes, MarketScout said.

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SIC codes are four-digit numerical codes assigned by the U.S. government to business establishments to identify their primary business, according to SICcode.com.

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The SIC codes are then incorporated into seven different segments. The only changes in rates in May versus April were in habitational, which moderated from minus 3% to minus 2%; and energy, which was priced slightly more aggressively at minus 3% compared to minus 2%. All other industry classifications were unchanged compared to April, MarketScout said.