COVID-19 & Workers' Compensation
MRLA Sponsor Article: MRL Fund
Provided by: RPS Regency - MRL Fund, Joe Clifford
On March 10, 2020, the Michigan Department of Health and Human Services identified the first two presumptive-positive cases of COVID-19 in Michigan. Since that date, most industries in Michigan have been severely impacted, with the hospitality industry being at the forefront of this economic crisis. To help in managing this pandemic, your Association website is continuously updated with industry specific resources from the CDC and other reputable sources. This information can be reached at: www.mrla.org/coronavirus
Is COVID-19 covered by workers’ compensation?
Probably not in most cases, although we encourage all members to submit those claims and allow the claims adjudication process to gather and review all the information for a final determination.
The Workers’ Compensation Act excludes claims that are attributed to an “ordinary disease of life.” An ordinary disease of life is one in which the public could be generally exposed to outside of their employment. In addition, COVID-19 is not “characteristic of and peculiar to the business” of any employer. However, some industries such as health care may be impacted differently. If you are uncertain whether to file a claim, you’ll want to contact your carrier to review.
Premium Calculations - is furloughed payroll included?
Each insurance carrier will determine whether to charge premium for the payroll of furloughed employees. The member owned Michigan Restaurant and Lodging (MRL) Fund recognizes that circumstances around COVID-19 are extraordinary and warrant a new class code change to address the issue. As a result, the MRL Fund has created a new class code, 0012, for furloughed employees who remain on payroll. In order to take advantage of this class code, the Fund requires its members to maintain separate payroll records for furloughed employees. If properly noted, it will reduce their workers’ compensation costs.
Do premium payments need to be made during the shut-down?
Each insurance carrier will approach this issue differently. The MRL Fund reached out to its members in mid-March and informed them that payment requirements were suspended as long as stay-at-home orders remained in place. As a member-owned program, the MRL Fund has the financial strength and ability to allow for this member support. Once the restrictions are lifted, the Fund expects to adjust payroll estimates of members to reflect reduced staffing levels and establish new payment amounts.
On March 10, 2020, the Michigan Department of Health and Human Services identified the first two presumptive-positive cases of COVID-19 in Michigan. Since that date, most industries in Michigan have been severely impacted, with the hospitality industry being at the forefront of this economic crisis. To help in managing this pandemic, your Association website is continuously updated with industry specific resources from the CDC and other reputable sources. This information can be reached at: www.mrla.org/coronavirus
Is COVID-19 covered by workers’ compensation?
Probably not in most cases, although we encourage all members to submit those claims and allow the claims adjudication process to gather and review all the information for a final determination.
The Workers’ Compensation Act excludes claims that are attributed to an “ordinary disease of life.” An ordinary disease of life is one in which the public could be generally exposed to outside of their employment. In addition, COVID-19 is not “characteristic of and peculiar to the business” of any employer. However, some industries such as health care may be impacted differently. If you are uncertain whether to file a claim, you’ll want to contact your carrier to review.
Premium Calculations - is furloughed payroll included?
Each insurance carrier will determine whether to charge premium for the payroll of furloughed employees. The member owned Michigan Restaurant and Lodging (MRL) Fund recognizes that circumstances around COVID-19 are extraordinary and warrant a new class code change to address the issue. As a result, the MRL Fund has created a new class code, 0012, for furloughed employees who remain on payroll. In order to take advantage of this class code, the Fund requires its members to maintain separate payroll records for furloughed employees. If properly noted, it will reduce their workers’ compensation costs.
Do premium payments need to be made during the shut-down?
Each insurance carrier will approach this issue differently. The MRL Fund reached out to its members in mid-March and informed them that payment requirements were suspended as long as stay-at-home orders remained in place. As a member-owned program, the MRL Fund has the financial strength and ability to allow for this member support. Once the restrictions are lifted, the Fund expects to adjust payroll estimates of members to reflect reduced staffing levels and establish new payment amounts.
What should we do to prepare our workplace and employees for reopening?
Loss control and safety measures will be crucial to your ability to safely and effectively return to business and maintain your operational status. Certain insurance carriers may provide you some assistance.
The MRL Fund has a fully-staffed team of loss control professionals who will be working directly with its 2,000+ member participants. This support will help members implement the needed procedures to meet all the mandates and safety measures required to effectively operate their businesses. In addition, during this stay-at-home period, the Fund’s safety resources are being extended to all members of the MRLA Association. This outreach support will be provided by phone, email, online videos, and through web-based training.
Where should an employer direct an injured employee for treatment?
Employees with non-life-threatening injuries can often get the care they need from any location, as more carriers have access to medical treatment online from a smartphone, tablet, or computer. Telemedicine utilizes licensed medical providers experienced in occupational health, and gives injured workers the option to access non-emergency medical treatment 24 hours a day with no need to visit a medical facility or spend time in a waiting room. This approach also allows distancing of the employee and provider, which is very helpful when dealing with potential COVID-19 claims.
The MRL Fund has a newly created online telemedicine portal that is accessed through its website at www.mrlfund.org. This link allows a Fund member to set up an employer account and then direct their employees to use the online visit capabilities. In most cases, telemedicine services lead to a quicker return to work and better outcome for the claim overall.
Loss control and safety measures will be crucial to your ability to safely and effectively return to business and maintain your operational status. Certain insurance carriers may provide you some assistance.
The MRL Fund has a fully-staffed team of loss control professionals who will be working directly with its 2,000+ member participants. This support will help members implement the needed procedures to meet all the mandates and safety measures required to effectively operate their businesses. In addition, during this stay-at-home period, the Fund’s safety resources are being extended to all members of the MRLA Association. This outreach support will be provided by phone, email, online videos, and through web-based training.
Where should an employer direct an injured employee for treatment?
Employees with non-life-threatening injuries can often get the care they need from any location, as more carriers have access to medical treatment online from a smartphone, tablet, or computer. Telemedicine utilizes licensed medical providers experienced in occupational health, and gives injured workers the option to access non-emergency medical treatment 24 hours a day with no need to visit a medical facility or spend time in a waiting room. This approach also allows distancing of the employee and provider, which is very helpful when dealing with potential COVID-19 claims.
The MRL Fund has a newly created online telemedicine portal that is accessed through its website at www.mrlfund.org. This link allows a Fund member to set up an employer account and then direct their employees to use the online visit capabilities. In most cases, telemedicine services lead to a quicker return to work and better outcome for the claim overall.
