Workers

1
Workers Compensation Insurance Under a
Collective Bargaining Agreement

• DWC
• Educational Conference
• Los Angeles Feb 24, 2005
• Oakland March 1, 2005

(An Alternative Workers Compensation Insurance
System)
2
California Labor Code

• Section 3201.5 of the Labor Code became law in
  1994. Section 3201.7 was added in 2004. The
  sections are customarily referred to as
  alternative dispute resolution (ADR) or
  construction carve-out programs.

3

• The law allows Contractors to enter into an
  agreement with a bona fide organized labor
  collective bargaining unions in order to provide
  a system for the delivery of workers
  compensation benefits to employees of union
  employers. This agreed upon system is separate
  and distinctive from traditional system, in that
  the workers compensation court is only available
  as an appellate vehicle and is not a trial
  component.

4

• The law has six basic requirements
• An alternative dispute resolution system
  consisting of ombudsman, mediation and
  arbitration
• An agreed upon list of exclusive providers of
  medical service
• An agreed upon list of qualified medical
  evaluators
• Joint labor management safety committees
• A light duty, modified job return-to-work program
• An agreed upon list of providers of vocational
  rehabilitation services

5
Union Agreements for Workers Compensation
Insurance

• Collectively Bargained Workers Compensation
  Programs are also known as ADR Carve-Out
  Programs
• Insurance provided by commercial insurance
  companies to union employers who, as part of
  their collectively bargained agreement with the
  union, have elected to create their own
  alternative dispute resolution process designed
  to eliminate cost drivers associated with the
  adversarial and litigious statutory system.
  Self-insured union employers may also participate.

6
Union Agreements for Workers Compensation
Insurance

• Goals and Objectives of a Collectively Bargained
  Workers Compensation Insurance Program
• Improve benefit delivery
• Promote labor-management cooperation
• Reduce Workers Compensation claim costs
• Reduce employers costs
• Promote safety
• Create more jobs for union members

7

• Components of a Collectively Bargained Workers
  Compensation Insurance Program
• ADR agreement, Ombudsperson, Mediation, and
  Arbitration
• Agreed list of exclusive medical providers
• Joint labor/management oversight committee
• Commitment to workplace safety
• Early return to work program
• Agreed list of vocational rehabilitation providers

8
Alternative to Statutory Workers Compensation
9
Workers CompensationClaims Process
Alternative Dispute Resolution
10

• Benefits of a Collectively Bargained Workers
  Compensation Insurance Program
• Reduced litigation
• Reduce loss costs
• Shorter claim cycle times
• Faster return to work
• Better medical care

11
Alternative Workers Compensation
Source California Workers Compensation
Institute (March, 2003)
12
Alternative Workers Compensation
Source PointSure Insurance Services/2003
13
Alternative Workers Compensation
Source PointSure Insurance Services/2003
14
Alternative Workers Compensation
Source PointSure Insurance Services/2003
15
Alternative Workers Compensation
Source PointSure Insurance Services/2003