Loading...
HomeMy WebLinkAboutMMIA News & Views Summer 2003 News and ~:~.: M°ntanaMunicipallnsuranceAutho~?' tqews Summer Issue 2003 PLAYC. Rd [ 1 ND I N S P E ~ ! IONS - ~ :-'~: --..:~-'~- By A l~ Hulse, Risk M~ager W~, ~r is finally h~c, ~d ~ ~r ~mcs 2 ~5 ~ ~ ~'~ A 5 ! ~ ~ F ~ N G "A ~ ~e in ~ use of ~ ~ phyS. ~e we ~ me~ we ~so m~t r~e ~t ~ 3 ( ~ ~ )~ S qr 't } R N E R mage increases, m t~ do~ yo~ ~ 5 :: '~' ' ~r ,~:~ ~,; '~ ~ ~ ( ~owl~ge, we must d~se a ~y to - ~:d ~E,~ INTERN PROGraM ~e ~ ways to manage ~S e~e : p~ ~d phy~: }:~,~:~'* * C~k for ~t~fi~ clo~ e~le~nt ~ ~h ~ Up~ ~P~Y~&: ~'~ as o~n S-hooks. · C~k ~e ~ play~ * C~ for p~c~ cms~ ~d ~ng po~ts or e~osed ~ for ~eom de~ ~d ~. m~g p~s, · C~ for ~ss~g ~ash ~epm~es ~d ~p~ ~ * Che~ for ~p ~, smh as e~os~ foo~gs on ~t m ~. ~cho~ d~ ~ r~, m~ or ~y o~r · Che~ for damage (i,e. ~y brok~ or ~ng emmm~ obs~cles in ~e p~y ~a. co.omni) to eq~pment ~ o~r pl~go~d fmms tamed ~ v~sm or we~. For ex.pie, · Che~ ~ eq~pment ~d o~ pl~g~d fmms for &eck for ~y bm~n or raising handrails, ~t, ~, cra~s, ~ ~t~ ~ ~ a~fion to ~&~ls, protecti~ b~ers, and for damage to pos~ble comsion w~ ~s mine in con~ fences, benches or si~ on the pl~und ~ ~ ~o~d. ~ffac~g: · C~k for ~ble ~o~g ofeq~pm~t. · C~ for ~ent ~t does not ~ve a~q~te S~ pro~ve ~mg ~der ~d ~o~d it ~d for · Ch~k for ~y loose or worn come.g, coving or ~g m~ ~t ~ d~e~orat~ or w~hed f~e~g ~w~ ~ces. For a~y. em~e, che~ the S-hoo~ at · Check loose ~acing mat~s for for~ objects or bo~ ~ ~ ~e~g '~ · Che~ loose s~g ~t~s for ~m~om ~d ~on points on flcmble ~duced d~, ~ ~eci~ a~enfion to h~ me climbing d~ces for w~. ~ ~ as those ~r ~ngs ~d s~de ~t * Che~ ~ m~ng p~s ~ch ~om. be~ ~gers for we~. · Ch~k ~ ~pment ~d o~ pl~o~d f~ for · Che~ for ob~acles in ~pm~t ~ zones. ~y b~o~ w~ my ~e emerged. Dr~age Sy~ems: · C~k for s~ ~ts, ~ers, ~d edges ~or * C~ en~ play ~a for ~ge probl~, ~ple, c~ ~ sides ~ s~g ~a~ of slide sp~i~ a~n~on to h~ use ~e~ ~ch as tho~ chines for ~h~ or rough edges cau~ by ~r ~gs ~d ~i& e~t re,om. · ~ C~ for prot~om ~d proje~ons, p~oun~ g~ used. Became ~ t~, we need to t~e · Che~ for ~ssing or d~aged prot~ve ~ps or to i~e~ ~d ~t~n these ~em veu ~ously. Ink,om plugs, shoed t~e pl~e really ~ ~ ~ mon~. At a ~ PLAYGROUND IN SPECTION S volunteers, their social security numbers, and appropriate class continued fnun page 1 codes. If we don't have the correct and proper documentation you should be looking at your playgrounds every week of ail individuals to be covered, it could result in claims being and, depending upon the amount of usage a playground denied. gets, it may be more appropriate to inspect at various times Audits have received a bad name. Most of ns face during the week or even daily, them with dread, but in reality an audit is a chance to set things If you have questions or would like to further discuss right. They may even save you money in the long mn. We will your playground inspection program please give me a call at 1- strive to make our Workers' Comp Compliance Audit painless 800435-3089. and effective. If you have questions on this procedure, please call MMIA ~ (800)635-3089. WHYAM I BEING "AUDITED"? By Lisa L. Rolan, Chief Financial Officer~ ~ ~H Montana Municipal Insurance Authority (MMIA) provides many of our {~ members with Worker's Compensation - '~QY~ R SHORTCUTS Insurance. We strive to maintain the '9 >~1~ best coverage at the lowest possible ~ rates. To achieve this goal, IVlMIA must~~ Drug and Alcohol Training ensure it is properly informed of the x~-~ ~ By Dan Wlckens, Employment Practices Specialist essential statistics necessary to actuarially [~.,/~l!ll~}~r'n~ base rates and coverage. Recently the MMIA has received numemas Your premiums are based on actual g~oss payroll and questions on how to conduct/review/enhance drug and the job class distribution of that payroll. These standards are alcohol testing policies. In addition to the samples we set by law. In order to confirm the actual gross payroll and may have available, them are a number of good resources position classifications, we must do an audit, that can help you stay up to date on the laws/roles Audits axe standard procedure throughout the surrounding drug and alcohol testing in Montana. Below insurance indusay as a means to ensure a policyholder pays the is a list containing both points of contact within the state correct premium. They are an integral part of any Workers' and federal government, as well as a list of all the timg Compensation system and are necessary to ensure the lowest testing consortiums that are located in Montana: allowable rate is used. Our exparience has shown there is oftan Federal Motor Carrier Safety A~lminlstrafion: a good deal of variability in the premium process and that The FMCSA can provide guidance on the most current reviewing the numbers may uncover a federal regulations as they pertain to commercial driver substantial over / or under / payment of~ licenses (CDL's) and the drug/alcohol testing required for pren~ums' I ~-~'-~ employeeswithaCDL. Thei~numbe~is: 449-5305. What records are needed for an audit? ~ Montana Department of Transportation In order to conduct the audit, Employee Safety Unit: Because the federal government we will need to see the payroll register has developed drug and alcohol testing guidelines, the for a specific selected quarter. For State of Montuna did not need to reinvent the wheel. example, if we are auditing 3~d quarter Montana has used the federal regulations to create its of 2002/03 fiscal year we would need to own drug and alcohol testing program which is referred to look at all payroll records for the months of as Policy 3-0132, (or simply the State of Montana Drag Janua~, February, and March. For the specified quarter, this and Alcohol testing policy). You can get information on would also include your 941Federal Quarterly tax form, State or copies of this policy from the program specla/ists in the Unemployment Insurance forms and the quarterly report form MDT's human resource department. The current MDT that is returned to IVlMIA with your payment. We will also need specialists are David Udey at 444-7285, or Ray Eby at 444- to look at job descriptions of certain positions chosen at 7673. random from the pa.wall records to ensure they are classified Information can also be gathered from drag/ correctly, alcohol testing consoniums, hospitals and clinics that Payroll is the key element in detenmrdng the premium >rovide testing services for cities/towns across the state, to be charged for the Workers' Compensation premium. The There are too many to mention here, but ifycu have most common error we find, is declaring overtime in the questions pertaining to these or other possible resources, reporting. The extra pay for overtime shall be excluded from the >lease feel free to contact me at (800) 635-3089 or at pa.woll on which premium is paid. Another common error is the dwickens~.~jnmia.net. reporting ofvoluntears. Each city must maintain a list of all CEO'S CORNER EG1SLA FIX E SESSION AN D COURT By Robert Worthington, D E CIS I O N S CHANG E W O RI< E RS* C O MP. CEO By Chuck Edquest, Workers' Comp Unit Supervisor The Montana Municipal Insurance During this last legislative session, the Montana Authority (lvlM/A) and the Legislature enacted changes in Local Government Center of Montana State University the Workers' Compensation Act that will increase benefits (Center) were recently to injured workers. A notified they arejdint awardees of a grant from the recent Montana Supreme : Public Entity Risk Institute Court decision insures these benefit increases will : (PERI). PERI was created to apply to workers with help public, private and nonprofit organizations improve occupational diseases as their practice of risk management, disaster management and well. Here are some of the details: enwmnmental liability management. PERI supports the development and delivery of education and training by · These statutory changes are effective July 1, 2003, but other organizations, serves as a resource center and apply only to claims with a date of injury or onset of clearing house, and operates a grant and research program occupational diseaSe after that date. that provides funding for a wide range of risk management · The waiting period to receive wage loss benefits is programs and projects. reduced from 5 days or 40 hours to 4 days or 32 hours The grant monies will assist the MMIA and the of lost wages. Center in funding the development. The immediate o purpose of the project is to educate municipal mayors in Maximum partial disability benefits are increased from 350 weeks to 375 weeks. Montana on the roles, responsibilities, legal limitations and ,, Workers who are permanently and totally disabled will exposures of elected service in municipal government be entitled to unlimited annual cost of living increases Particular emphasis will be placed upon the procedural and wlfich are tied to the percentage increase in the States legal requirements imposed by Montana's unusually average weekly wage. Previously there was a limit of demanding laws, human resource management issues in the no more than 10 annual increases and while the local government setting, financial management and increases were tied to the increase in the average budgeting responsibilities of the mayor and a comprehensive review of risk management concepts and weekly wage they were limited to no more than 3% per best practices, year. Thepurpose of the project is to reduce risk · There have been a series of decisions by the Montana exposure and the resulting loss cost for Montana's Supreme Court having to do with independent municipal governments, contractors. If you do hire an independent contractor, you can no longer rely on the independent contractor The focus audience for the project is the 129 exemption issued by the Montana Department of Labor municipal mayOrs, especially the 3545 mayors of the and Industry to determine status as an independent medium and small communities who are elected every odd contractor. numbered year. The initial 2-day program will be held in · The Workers' Compensation Act defines an February 2004 in Bozeman with a follow-up 2-day program independent contractor as follows: in early 2005. There will be no cost to the attendees for the program other than theft' individual travel costs. Center (1) An "independent contractor" is one who renders ~ Dffector Jane Jelinski MMIA and CEO Bob Worthington, service in the course of an occupation and: are pleased with the opportunity to develop an educational (a) has been and will continue to be flee from control program that will focus on the needs and demands of or direction over the performance of the services, both under the contract and in fact; and Montana's mayors. Mayors are expected to attend this very important training opportunityin February 2004. (b) is engaged in an independently established trade, occupation, profession, or business. Commumlies who will be electing mayors in the fall of (2) An individual performing services for 2003 are asked to ifform the candidates of this pending remuneration is considered to be an employee under program and e~coumge attendance, this chapter unless the requirements of subsection (1) When details of tbe program become available, the ii are met. information will be distributed. Look for announcements, ff According to the court, it is the duty of the "employer" you have any questions contact either Bob Worthington at ~wor thington~mmia.net / 800 635-3089 or Jane Jelinski at to make an ihitiai good faith inqui~ of the worker to determine janejelinski~montana.edu / (406) 994-6694. that he or she does, in fact, meet the control and independently established bus.ess te~s before the employer employs he wurke~ as ~ independent contra~or. ~e worker does not meet the tests, the worker is ~ employ~ ~d not an independent cunUactur. Thee Wurkers' Comp changes are sig~cant and will im~ct ~A ci~, your coverage, and potentially yo~ pre.urns. ~you have questions, please conma the ~A Workers~ Compe~afiun U~t ~ (800) 635-3089. MARK SH~VES SUMMER TIME BLUES BIOGRAPHY By Tana d~ Rygg, Liability Claims AdjFster · Treasurer oflvlMIA Board of Directors. With the warm weather comes a host of exposures that seem to appear only thtring the balmy sununer months. One of · On the MMIA Board for four years. the most frequent areas of exposure is the maintenance of City · Current City Administrator for City of Hamilton. owned parks and boulevards. · Premous life, 20 year military career with the U. S. Army. When mowing a city park or boulevard, there are steps Relired in 1997 rank of Lieutenant Colonel. you can take to minimize the potential for damage or injury to · Member of the Bitterroot Valley Kiwams Club (currently surrounding property or individuals. When weed eating near serving as Presidetu-Elect). busy streets or congested areas, try to maintain these areas · Very proud husband of wife Peggy and very proud father when traffic volume is lower. Be aware of the location of cars inof seven children. Adam (20) has finished 2~ year at the United parking lots and make sure that vehicles are not getting sprayed States Merchant Marine Academy; Bryan (18) has finished his by debris from mowers and trimmers. In areas where rocks and first year of college at the University of Alaska at Fairbanks; debris are likely, do an inspection to locate any hazardous Laura (17) and Paul (15) have just finished their junior and material that could cause damage. Instruct employees to notify f~eshraan years at Hamilton High School; Steven (13 ) has just their supervisor of any potential hazards seen in the course of finished 8~ grade at the Hamilton Middle School; and Matt (11) 'maintenance, even flit and Sam (9) have completed 4u' and 3fa grades at Grantsdale doesn't pertain to their ' department. When damage ~:.: :: ~? Elementary. We pretty well keep all schools in Hamilton covered. does occur, make sure the '" ' ' COMMENTS property owner is ; ' :i . Four years ago when I became a member of the MMIA notified if possible, and Board of Directors, I thought, what have I got myself into? One submit a claim for MMIA : ~ handling. , "~ of my flint meetings was the Actuarial Report. I thought to Another frequent myself, no one said I had to have a PI:ID to serve on this board. source of summer liability ' Well, fortunately, I have learned that I don't. What I have also claims originates from city owned golf courses. Golf course learned is that the MMIA Board of Directors and MMIA staffis liability research has been completed by MMIA general counsel one dedicated group of people that are very concerned with the and here are just a few of the facts they uncovered: A sign welfare of the Cities and Towns they serve. The MMIA Board posted in the course parking lot warning patrons of the risk of of Direetors continually monitors the coverage Cities and Towns parking in the area can reduce or eliminate liability. Measures receive and the costs associated with that coverage. Remember, taken, such as netting around the driving range, trees planted we are you! along public right of ways and tee boxes that are designed to hit away from public property and tight of ways can be factors in ~'~' ," ;~,' PROGRAM eliminating negligence on the part of the ci .ty. While one MM[.:x- j;~ z~ S A 5 ~ 5'1M L' R,.. ~ L },~ claimant suggested testing all p~trons prior to letting them golf,By John Craig, Property Program Manage? the cities are not reqnlred to take such unreasonable steps to prevent damage. As Alan Hnlse, our MMIA Risk Manager can This surmner/fall MMdA will host ~ attest, even the most seasoned golfer makes a bad shot now three interns working with staff to i~- and again, complete numerous documentation and ~~1" In conclusion, the best defense to any claim is a good data collections projects. The interns come.,~_,.?~_'~2~ offense. Take reasonable steps to reduce the potential of to us from Carroll College as part of a '.~ summer liability, exposures. We'll chat again this winter when wesummer/fall study program. They will work, "~ '~-: discuss snow removal and the finer points of sanding operations. REVIEWING THE FAMILY agency of the United States, a State, or a political MEDICAL LEAVE ACT subdivision ora State, or any interstate governmental By Dan ~ckens ' ' agency, tate ~s further defined m Section 3(c) of the Human Resources Officer : ..... : , FLSA to include any State of the United States, the -:: District of Columbia, or any Territory or possession of I was recently asked by an : ~' ~ the United States. Simply put: a state is a single employer; a insightful City Clerk flail cities and county is a single employer; and a city/town is a single towns were viewed the same in the eyes of employer. the law. Coincidentally, the city she lived in was approaching 50 So does this mean that every public agency is covered employees; this instantly made me think of the Fanmly Medical by the FMLA? This appears to be the case, but in order to Leave Act of 1993 (FMI,A). As with all laws, it is useful from know exactly what "covered" means, it's necessary to dig time to time to go back and refresh your memory on the subject, deeper. The FMLA fists two distinct things that must happen so I did ~ little bit of homework to see how this would impact herbefore an employee may be entitled to FMLA leave. First, the commumty, employee must work for a covered employer. Second, the The FMLA holds a special place in my heart. Aside employee must be eligible for the leave. In order to be eligible from being quite lengthy, its wording is anything but clear. In for leave, an employee must meet the following criteria: order to break down how cities and towns comply with the · The employee must have been employed for at least 12 FMLA, it is first necessary to know who (what type of employer) months by the employer is alfected by it. We find this in 29 CFR 825, subpart a. ° The employee must have worked at least 1250 houss An ~'employer" under FMLAincludes any "public- during that previous 12 month period. agency," as defined in section 3 (x) of the Fair Labor Standards ,, The employer must have at least 50 employees working Act, 29 U.S.C. 203(x). Section 3(x) oftbe FLSA defines" blic within 75 miles oftbe designated worksite. pu agency" as the government of the United States; the This is where the wording of the law can get confusing. government of a State or political subdivision of a State; or an The following statement is taken directly from the U.S. Department of Labor's website: "All public agencies are covered SUMMER INTERN PROGRAM by FMLA regardless of the number continued from page 4 of employees; they are not subject learn and be graded on their performance in our workplacE. Ln to the coverage threshold of 50 addition to earning education credits the interns will be exposed employees carried on the payroll to a practical work environment where they can deal with real each day for 20 or more weeks in a work situations and learn first hand how municipal insurance is yea~. However, employees ofpubtic done. As part of this sharing, MMIA will have an excellent agencies must meet all of the resource to apply toward those many projects we've been requirements of eligibility, moving to the bottom of our pile for years. Everyone wins here. including the requirement that the Mama Denneby comes to us from Texas and is employer (e.g., State) employ 50 majoring in Political Science and Business. She wants to employees at the worksite or become a US Ambassador someday but for now will negotiate within 75 miles." the insurance issues of Montana Mumcipalifies. She will be This means that every public employer is coveredby working primarily on Property Insurance issues dealing with the FMLA, but being covered in and of itself is not enough to valuation, vehicles, and C.O.EE. (the specific and often missing guarantee that employees will be able to take FMLA leave. In data on your property schedules), order for an employee to be eligible for actual FMLA leave, Ai Matsuoka is a Carroll exchange student from Japan. their employer must employ 50 or more As a BUSiness major she hopes to learn how US business is individuals within 75 miles of the conducted and gain insight into fiLrther financial and cultural designated worksite. Your exchange in her futem. Ai will be working with the MMIA municipality must satisfy both the Workers' Comp Unit to research file archives and capture much coverage and the eligibility : needed settlement data. requirement in order for your : ~ Hiroyuki Miyauchi is also from Japan and will join us employees to tahe leave. in September. Hiro hopes to some day become a politician in his It is simple to see how this country, but knows he must first learn about how business could be very confusing, yet it is extremely important to works world wide. His experiences with computer programming understand exactly what is being commamcated when you have for a multinetional electronics company in Japan show his a discussion about the FMLA with your employees. It is also commitment to achievement. This work ethic will aid MlVflA in possible that a municipality with under 50 employees may establishing new ways to efficiently capture and save data. choose to grant the leave anyway, but they are not required by Many of you will hear from these interns with requests law to do so. If you have questions pertaining to this or other for infor~nation. Please work closely with them as their projects aspects of the FMLA, please feel free to contact me at (800) 635- are very important to us and to them. 3089 or at dwickens@numa.net. ~[I~] lA I U,S. Postage PAID PO Box 6669 Permit #221 Helena MT fi9604-6669 Helena, MT BOARD OF DIRECTORS Kathy Denke. ................ Chah', Cit7 of Thompson Falls Paal Lmve. ...................... ~ice Chair, City of Bozeman Maxtene Mahlum. ............. Secretary, City of Wolf Point Mark Shri~s. ..................... Treasurer, City of H~milton Larry Bondemd.. ............................... Ci~ of Shelby ........... ==:;::AUTO*'~.~DIGIT 590 Bob McCarthy. .................. .Butte-Silver Bow Couat~ Clerk-Treasurer Joe Menicucci. .................................... Oty of Belgrade City of Laurel PO BOX 10 Jim Nagent. ........................................... ~ efMissoula LAUREL MT 59044-0010 Cai Oraw ............................................ City of Sidney 1,1,1,1,1,,11,,,,I,,I,1,,111,,,11,,,,,,1111,,,,,,1111,,,,11,,I Coleen Bal~alini. ...................... ; ....... Cit~ of Great Fail~ Rick Harden. ......................................... City of Billlags Tim ~ ..................................... City of Helen a l~ed ~ ..................................... City of l~nlispell JIJLY OCTOBER 4 HOLIDAY 1-3 MONTANA LE AGUE OF CITIES AND TOWNS ANNUAL CONFERENCE, 15 WORKERS ~OMPENSATIO, BILLINGS PREMIUM DUE t-~ GOVERNOR S~ONFERENC ON .~'ORKERS CO~ .IPENSATION, WES I.J,~BILIT5 AND PROPLR~ i~O ~dlD OF DIRECTOR'S ME~ ~ lNG,