Think your employer will cover all the expenses of a workers’ compensation Injury?
Think again.
There’s a mistaken perspective that workers who are injured on the job have all the costs of their injuries covered by the workers' compensation insurance that their employers carry.
A study drawing data from the U.S. Bureau of Labor Statistics (BLS) and the Centers for Disease Control and Prevention (CDC) as well as costs data from the National Council on Compensation Insurance and the Healthcare Cost, found medical and indirect costs of occupational injuries and illnesses are sizable, at least as large as the cost of cancer. Workers’ compensation insurance was noted to cover less than 25 percent of these costs, so all members of society share the burden.
Indemnity payments rarely exceed 70 percent of wages and eliminate the possibility of covering fringe benefits or home production. The contributions of job-related injuries and illnesses to the overall cost of medical care and ill health in the US are greater than generally assumed. (1)
According to a 2015 OSHA report (2), employers only cover a small percentage of the overall costs of workplace injuries through workers' compensation, with the rest borne primarily by injured workers, their families, and taxpayers.
Despite the good intentions behind workers' compensation programs, they have never completely covered the costs of on-the-job injuries – a fact many workers are surprised to hear. Additionally, according to OSHA, over recent years, the gap between the actual costs of employee injuries and what workers' compensation covers has increased.
Many states have changed their workers' compensation systems and have made obtaining benefits more difficult for injured workers. They state that currently, only about 21 percent of the overall costs of on-the-job injuries are actually paid by workers' comp.
OSHA's report shows that about 50 percent of the overall cost is paid out of pocket by injured workers and their families. About 13 percent is paid by private health insurance, with the federal government footing the bill for about 11 percent of the total cost of work-related injuries, and state and local governments paying about five percent.
The most considerable toll by far is the financial hardship faced by injured employees and their families – a toll that, in cases of severe, debilitating injuries, may impact them for the remainder of an injured employee's lifetime.
A recent study found that New Mexico workers who receive workers’ compensation benefits lose an average of 15 percent of the earnings they would have been expected to earn over the 10 years following the injury. Even with workers’ compensation benefits, injured workers’ incomes are, on average, almost $31,000 lower over 10 years than if they had not been injured. This figure does not reflect the even more substantial losses suffered by the many injured workers who never enter the workers’ compensation system.(3)
For workers and their families, economic and non-economic losses because of work-related injuries are inevitable, and some are difficult to measure. These costs have a greater impact on lower-wage workers. For example, following a worker injury, family caregivers must often reduce their own hours of work and wages to care for the injured family member.
For families already struggling to meet basic necessities and set aside some savings, a work injury to a primary wage earner can be especially devastating. The intangible effects are important but impossible to monetize. Workplace injuries can diminish self-esteem and self-confidence, increase stress between spouses, children, and other family members, and strain relations with friends, colleagues, and supervisors. These indirect costs can translate into tangible economic costs, including lower wages. (4)
Robert worked for a Virginia employer that manufactured foam insulation. He climbed on a foam grinder to clean out some material, and the manager accidentally turned on the machine. His right foot was pulled and mangled. Robert has had multiple surgeries and must wear a special boot to walk. After his injury, Robert and his wife Jessica could no longer save money toward a new home. The family lived in a shelter until they found a new apartment, which was mold-ridden and infested with fleas. His wife writes:
“My husband lives with constant chronic pain every day of the week, and he tosses and turns throughout the night. As soon as he wakes up, he has to put on this ‘boot’ to do anything. This boot stays on his foot all day long because he is unable to walk without it on. Before being injured, my husband played basketball or football every single day, and he ran and played outside with our two toddler sons. He was a weightlifter, a fisherman, and a hunter; these are all things he can no longer partake in due to his injuries from work.”
“His life, the way he lived it, was robbed from him, and he will never be the same. We have three children, Evan, who is three-and-a-half, Tristan, who is two-and-a-half, and their new sister Halley, who is three months old; my husband cannot be the kind of father that so many people wish to be due to his injuries. He cannot be the ‘man’ that so many men are not, because of his limitations. We are struggling financially so badly because of this ‘accident’ and the negative effect it has had on his pay.”
Individual workers are not powerless to control workplace injuries. They can significantly reduce their risk of workplace injury by focusing on several key areas: getting proper training, using protective equipment, maintaining a clean and organized work environment, and actively engaging in safety practices. Additionally, paying attention to ergonomics, identifying and reporting hazards, and participating in safety training are crucial.
Here's a more detailed breakdown of what you can do:
Know the specific hazards present in your workplace and how to recognize them. Insist on training that covers safe work procedures, including proper lifting techniques, using tools and equipment, and handling hazardous materials. Be familiar with emergency procedures, including evacuation plans and reporting systems.
Many workers see Personal Protective Equipment (PPE) as a hassle and avoid using them without direct supervision. But PPE can save your life. PPE like safety glasses, hard hats, gloves, and safety shoes should be worn as required and properly maintained. Get trained on how to properly use and maintain them.
A clean and organized workspace reduces tripping hazards and other risks. To prevent accidents, promptly address spills and clear clutter. Adjust your workstations, such as the height of work surfaces and the location of work materials, to minimize physical strain and discomfort.
Report any safety concerns, near misses, or incidents to your supervisor or safety manager. Attend and participate in safety meetings and discussions to enhance your knowledge and promote a strong safety culture. Adhering to safety procedures, even when it might seem inconvenient, is crucial for preventing injuries.
Ask questions and voice concerns about safety. Be aware of how to report accidents or injuries, and do so promptly. A culture of teamwork and communication, where workers support each other's safety efforts, can significantly reduce the risk of accidents.
Conclusion: The True Cost of a Workplace Injury Hits Home
Workplace injuries are more than just statistics—they ripple through the lives of workers and their families in profound and lasting ways. While workers' compensation programs are designed to provide some relief, the reality is that they cover only a fraction of the total financial, emotional, and physical costs. Families often shoulder the heaviest burden, enduring income loss, emotional strain, and life-altering disruptions to their future.
The story of Robert and his family illustrates a painful truth: the impact of a workplace injury can dismantle a family's sense of stability and well-being for years. This isn’t just about the worker—it’s about the spouse who becomes a caregiver, the children who miss out on an engaged parent, and the long-term economic setbacks that threaten a family’s future.
That’s why prevention must be the priority. Injury prevention isn’t just a safety initiative—it’s a family protection strategy. By investing in targeted, effective ergonomics and musculoskeletal disorder (MSD) prevention programs, employers can dramatically reduce injury rates, improve quality of life for their workers, and reduce the hidden costs of injury.
Whether you start small or go all in, taking action now is critical. Don’t wait until another family faces the devastating aftermath of an avoidable injury. Let ErgoScience help you take the first step toward a safer, more sustainable workplace—for everyone’s sake.
Protect your workers. Protect their families. Start with a call to ErgoScience.
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