New legislation that goes into effect in Ohio on Sept. 23 will amend the state’s rules on Workers’ Compensation benefits to address injuries that occur while an individual is working from home. Signed into law in June, House Bill 447 adds exclusions and guidelines for injuries sustained by at-home employees, Property Casualty 360 recently reported.
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Workers’ Compensation claims involving remote employees have long presented challenges because it can be difficult to determine whether an injury occurred in the course of employment. Ohio’s new law appears intended to narrow that scope by providing clearer standards for when work-from-home injuries are eligible for Workers’ Compensation benefits.
The new law is reportedly the first of its kind and comes at a time when working at home is increasingly sought-after by job applicants. Given how common remote work has become, it is surprising this type of legislation has not come up sooner, said Morgan McCoy, Underwriter, Workers’ Compensation, Burns & Wilcox, Charleston, South Carolina.
“I am surprised it has taken this long,” he said, adding that other states may be watching Ohio and eventually introduce their own eligibility parameters for work-at-home injuries. “There is going to be a lot more working from home in the future not only because of COVID, but that is just the direction we are headed in.”
Companies could see more at-home injury claims as remote work continues
The number of individuals working from home has risen sharply during the pandemic. New U.S. Census Bureau data, released Sept. 15, showed that the number of remote workers tripled between 2019 to 2021, jumping from 5.7% to 17.9%. The highest rate was found in Washington, D.C., where 48.3% of workers had remote positions. In addition, about 58% of Americans reported having the opportunity to work from home at least one day per week, according to the American Opportunity Survey released in June by McKinsey & Company.
Workers’ Compensation Insurance, which employers are required to carry in most states, can cover injured workers’ medical expenses and a portion of their wages while they are unable to work. Death benefits are also available. While Ohio’s new law appears to be the first to specifically address work-at-home injuries, each state has its own guidelines for Workers’ Compensation eligibility.
I am surprised it has taken this long [for rules on work-at-home injuries]. There is going to be a lot more working from home in the future not only because of COVID, but that is just the direction we are headed in.
Workers’ Compensation laws are interpreted differently from state to state. Some jurisdictions take a broader approach to compensability, while others apply more restrictive standards, creating different underwriting environments and insurance costs.
In 2018, a man in Germany was allowed to file a claim under his employer’s insurance after falling down the stairs on his way from his bed to his home office, according to NPR. That sort of ruling would not be likely to happen in the U.S., sources told Boston news station WBUR in January in a report on the “legally gray area” of work-from-home injuries.
With more employers allowing full- or part-time remote work arrangements, companies could see a greater proportion of claims resulting from injuries sustained at home. While comprehensive trend data remains limited, the growth in remote work has increased the potential for work-at-home injury claims.
Whether these incidents are covered by Workers’ Compensation Insurance depends on state law and the specific circumstances surrounding the injury. In 2019, for example, a Florida court ruled that a work-at-home employee who was injured after tripping over her dog in her kitchen was not eligible for Workers’ Compensation, Law.com reported.
It will be interesting to see how they will do the claim investigations. Each carrier will have their own stance on it and how to handle it.
The investigation process may also vary for work-at-home injuries, McCoy said. “It will be interesting to see how they will do the claim investigations,” he said. “Each carrier will have their own stance on it and how to handle it.”
Back and neck strain among potential work-at-home hazards
In 2020, 2.7 million non-fatal workplace injuries and illnesses were reported in the U.S. — a decrease of 5.7% compared to 2019, according to the U.S. Bureau of Labor Statistics. The incidence of claims was the same or reduced in all industries except for the health care and social assistance industry, which saw a 40.1% increase in injuries and illnesses.
Unlike industries such as construction and agriculture, which are considered among the most hazardous occupations, clerical positions are generally viewed as lower risk from a Workers’ Compensation standpoint. Because remote work is often clerical in nature, these roles typically fall into lower-rated Workers’ Compensation classifications.
Still, this type of work is not risk-free. Potential injuries in office settings can include back pain, carpal tunnel syndrome, strains, sprains, falls and other incidents that may lead to Workers’ Compensation claims.
Similar injuries can occur in home offices, where environments may not be designed with workplace safety in mind. This can create additional questions regarding hazards, injury prevention and whether a particular incident is sufficiently connected to an employee’s work duties to qualify for coverage.
Even using non-ergonomic home furniture for work could mean a greater risk of injuries, McCoy said. “That can definitely make a huge difference,” he said. “[Having the right equipment] is a big part of it.”
In August of 2020, an analysis on remote work published in the International Journal of Environmental Research and Public Health found that most at-home workers in the study reported a worsening of neck pain. The results also suggested that musculoskeletal disorders related to working at home may reduce job satisfaction, the authors noted.
Improper workstation setups can contribute to posture-related injuries, musculoskeletal disorders and other physical ailments associated with long periods of desk work.
Ensuring safety for work-at-home employees
According to the Centers for Disease Control and Prevention, musculoskeletal disorders are associated with high costs to employers due to missing work and lost productivity, medical expenses, and Workers’ Compensation costs. Considering the risk of these conditions and other injuries, companies should make sure their remote workers have a safe home-office environment.
Employers should establish workplace safety best practices for remote employees and ensure those guidelines are consistently followed. Regularly reviewing and updating employee handbooks and safety policies can help organizations address evolving workplace arrangements and expectations.
Some companies may choose to review a remote worker’s home office setup before work begins. Employers may also implement additional safety standards or request documentation to help ensure remote workspaces meet company expectations.
An employee’s at-home video monitoring system could also come into play in the event of a claim, McCoy said. “I have a Nest camera in my office, so if I got hurt, I could actually prove it,” he said. “You may see carriers starting to ask for that to help their claims run more smoothly.”
Employers should also be careful about any recreational programs they offer, like virtual exercise sessions or team-building activities, as these could come with a higher risk of injuries, McCoy said. “If they had a morning yoga session and it was during work hours, and someone got injured, that could be a Workers’ Compensation claim,” he said.
Employers should clearly communicate that recreational activities and wellness programs are voluntary.
Workers’ Compensation Insurance carriers often offer a variety of safety resources, including free webinars or training sessions, McCoy pointed out. Employers should take advantage of these offerings, he said. “There are a lot of little perks that carriers spend a lot of money on to help cut down on claims,” he said. “It is nice to be able to offer that to the employer.”
Companies seeking out Workers’ Compensation Insurance should ask about these extra benefits. Employers shopping for Workers’ Compensation Insurance may also want to ask about risk management resources, safety training programs and other value-added services offered by carriers. These resources are often designed to help reduce workplace injuries and claims.
Employers can also consider providing ergonomic office equipment and encouraging employees to take regular breaks and stretch throughout the day. Investments in employee safety can help reduce injuries, improve productivity and limit Workers’ Compensation losses over time.
