ORA Health and Safety Panel Presentation on Reducing Operational Costs through Smart Safety Procedures - Feb. 18, 2013

Monday, February 18, 2013
9:00 a.m.– 11:30 a.m.

Examine Common & Uncommon Cost Drivers
Associated with Foodservice Safety
Agenda
 Case Studies:
1) Clanken Pubs:
 Injury issues: Slips, Trips, Falls, Cuts, Lacerations & Punctures, Burns,
Workplace Violence
2) Huntington Family Café:
 Injury Issues: Ergonomics/Lifting; Cuts, Slips, Trips, Falls, Scalds & Chemical
Burns
3) Busy Friday Night Pizza Bar:
 Injury issues: Drivers, Glass Cuts, Knife Cuts (Back of the House: Dish tank;
Front of the House: Prep)
 ServSafe: New Products & Training Options Overview

Panel of Experts
 Legal: Keith Pryatel, Kastner, Westman & Wilkins
 Managed Care Organization: Ron Lucki, CareWorks
 Safety: Joe Wellman & Brad Hunt, RiskControl360°
 Workers Comp Safety & Hygiene: Mike Marr, BWC
 Human Resources: Kimberly Kocak, C&A Business Services
 Drug Testing/Background Checks: Aaron Brown, Secure Check
/ ZeroChaos
 Research: Doug Wiegand,
National Institute for Occupational Safety & Health

When a 1,000 things pile up, it‟s easy to overlook the importance of
health & safety issues – that‟s dangerous!
The Health & Safety section of the ORA’s website helps you stay on
top of concerns, offering solutions to today‟s restaurant, food, and
alcohol safety issues.
www.ohiorestaurant.org/healthandsafety
 Restaurant Safety
 Food Safety
 Alcohol Safety
Health and Safety

 Owner knows that his company has had an increase in injuries
over the past few years, especially in 2010.
 Evidence is also indicated by the pubs‟ Experience
Modification Rate of 1.70
 Additional Information:
Number of
Locations
Total [Actual]
Losses (TML)
Total Limited
Losses Annual Sales
2 $121,680 $32,101 $18,146,741
Manual
Classification
Description
Annual
Payroll
Estimated
Premium
9084 Bar, Lounge, or Tavern $1,940,712 $90,485
8742
Outside Salesperson, Collectors or
Messengers
$119,672 $653
8810 Clerical Office Employees $37,064 $140

 “BAR”, “LOUNGE” OR
“TAVERN”
 Principal receipts derived from
the sale of alcoholic beverages
 Assigned to a risk engaged in
operations described by another
classification, unless the operations
subject to Code 9084 are conducted
as a separate and distinct business.
 Established by the National Council on
Compensation Insurance (NCCI)

 “SALESPERSONS”,
“COLLECTORS”, OR
“MESSENGERS”
(BANK RUNNERS)
This classification is also
assigned to employees who
perform these duties away
from the employer's premises.

 “CLERICAL OFFICE
EMPLOYEES”
Subject to the Standard
Exception Manual Rule.
 Clerks, Cashiers,
& Clerical Office
Employees.

 Owner states there have been a large number of
employees who have suffered from cuts.
 He assumed that this is his largest contributor to overall
Workers‟ Compensation costs.
 Owner insists there is no need to track or trend incidents.
 “Exempt from OSHA Recordkeeping Requirements”.
 Supervisors have informed him that they have needed to
send one employee home.
Multiple (2-3) times for appearing to be under the influence of
drugs/alcohol.
Three claims have been filed by this individual.
Owner states that there is not currently any Drug/Alcohol Policy in
place.
 “Testing is not conducted because of associated costs.”
 Owner also uncertain what supplementary methods can be
utilized to ensure workers are not inebriated on-the-job.

Slips, Trips and Falls
Struck By, Caught-Between
Cuts, Lacerations & Punctures
Ergonomics & Lifting
Techniques
Physical & Chemical Burns
Workplace Violence

 Injury-Cost Analysis
 “Slips, Trips, & Falls” and “Struck By, Caught-Between” injury categories each
outweighed incidences of “Cuts, Lacerations, & Punctures”.
 90% of Falls, including the [maxed out claim] incident that the owner felt was due to employee
intoxication, involved falling down stairs at Clanken Pubs‟ older facility.
 Falls down stairs make up 93% of Category Costs.
 “Struck By, Caught-Between” injuries were second largest injury category
 Entail loose items falling from shelves or employees being struck by carts.
 40% of instances (2/5), 84% of costs
 Impacts from kitchen door swing
 Small Workplace Violence Claim is stated as resulting from a patron attacking a worker.
 Questioning revealed that safety training is limited
 Primarily, only postings of some equipment procedures.
 New hire orientation is “sometimes” conducted
 Never documented, verified for comprehension or tracked.
 No [OSHA-specific] safety programs and/or procedures are in place.
 Employee Turnover Rate is approximately 20% percent annually.
 Owner says he is unfamiliar with policies in place;
 Supervisors elicited offer conflicting statements regarding components
 Example: Disciplinary Policy

Cause Total Claims Cost
Slips, Trips and Falls
10
$69,229
Struck By, Caught-Between
5
$40,440
Cuts, Lacerations & Punctures 8 $9,368
Ergonomics & Lifting Techniques
4 $1,669
Physical & Chemical Burns 2 $814
Workplace Violence 1 $161
Total Number of Claims (TML) 30 $121,680
 Based off of
a „rolling‟ 4-
year period
(2008-2011)
 2013 Policy
Year Experience
Period
 Based on Data
Provided by :
 CareWorks
Consultants,
Incorporated
(CCI)
 Ohio Bureau
of Workers‟
Compensation
(BWC)
 Total Number
of Claims
 Total
Modified
Losses

 Cultural
 Internal Process &
Practices
 Leadership
Engagement &
Training
 Employee
Accountability
 Own your culture, it starts at
the top
 Understanding, consistency
and accountability
 Leadership, training
for owners/managers
 Engage your employees &
hold them accountable
C & A Business Services 614-323-9955
www.cabenefitsgrp.com

 Importance / Affect of implementing a drug test policy.
 Pre-Employment
 Post Accident
 U.S. Dept. of Labor shows 11.2% of food prep, wait
staff and bartenders are current illicit drug users.
How many employees do you have that fall under this
category?
 No policy or testing conducted because of
associated test costs.
Drug Test Policy

 The Small Business Administration conducted a study and
identified the average cost per drug abuser to their employer is
$7,000 annually.
Factors
Productivity – 33 to 50% less productive
Absenteeism – 3 weeks or more per year, tardy 3
times more than non-users
Accidents – 3 to 4 times more likely to have an
accident, 5 times more likely to file a workers
compensation claim
Medical Claims – file 300% more costly medical claims
 Lab Based Drug Test = $35-$50
You do the math.
Drug Test Policy

 Purpose of OSHA‟s recordkeeping requirements are not meant to be
a burden for employers, they were developed to help employers
track trends.
 Procedures for accident reporting.
 Why to investigate accidents.
 BWC has a Drug Free Safety Program (DFSP) because of the
number of claims resulting from workers were under the influence.
 BWC‟s Safety & Hygiene Services available for all employers at no
additional charge.
 Safety, Industrial Hygiene and Ergonomist.

 Attribution of the causes of injuries
 Chance vs. “person” causes vs. latent causes
 Look at the whole picture.
 Injury logs can help identify trends and problem areas.
 Exploring and documenting near-misses
 Thorough walk-through
 Identify trip/slip/fall hazards
 Employee involvement for continuous improvement.
 What types of controls can be implemented?
 Ongoing monitoring and review to ensure controls are effective.

Most Effective / Protective
Elimination
Substitution
Engineering Controls
Administrative Controls
Personal Protective Equipment

 Prescription Drugs account for 19% of Workers‟
Compensation medical costs.
 Ohio Bureau of Workers‟ Compensation-Screening
prescriptions unrelated and ensuring relevancy.
 MCOs initiate Drug Utilization Reviews(2012).
 CareWorks Pharmaceutical Reviews (2006).

 Workplace Violence ($161)
 OSHA emphasis on retail
 What have you done and what “effort” can you show?
 “Serious” $7,000/per violation
 Size
 History
 Good faith (written programs)
 “Willful” $70,000/per violation
 Clanken Pubs - older facility & employee falls
Keith L. Pryatel
kpryatel@kwwlaborlaw.com

Absences
Workers’
Compensation
VSSR
Occupational Safety & Health
“Serious”
Occupational Safety & Health “Willful”
Ohio Intentional Tort
Occupational Safety & Health Criminal
24
Workplace Injury Costs and Exposure

 Not Knowing What Problems Exist
 Injury Tracking & Trending
 Misunderstanding of Incident Parameters
 Frequency - Severity
Cuts, Lacerations, & Punctures vs. Slips, Trips
and Falls
 Associated Cost(s)
 ORA / RC360 Workplace Safety
Training Guide – free to ORA members

Premium Impact of Injury Cost: Slips, Trips, and Falls
If all injuries caused by Slips, Trips, and Falls had not occurred between 2008 and 2011,
the 2013 policy year EMR and premium projection would be as follows:
Estimated EMR = 1.16
Estimated 2013 Premium Projection = $62,946
Potential Annual Premium Savings = $28,332
Premium Impact of Injury Cost: Struck By, Caught-Between
If all injuries caused by Struck By, Caught-Between had not occurred between 2008 and
2011, the 2013 policy year EMR and premium projection would be as follows:
Traditional Group Rating Qualification and Savings
By avoiding the premium impacts of Slips, Trips, & Falls, Struck By, Caught-Between
qualification for a Traditional Group Rating Program may have been possible. Based on
the data from CareWorks Consultants, the following EMR, premium and savings could
possibly have been realized.
Estimated Group Discount = 44%
Return on Investment

 Regional manager is aware that over 40 injuries have
occurred in the café‟s “4-year rolling period”.
 Their Experience Modification Rate is known to be 1.38.
 Additional Information:
Number of
Locations
Total Modified Losses
Total Limited
Losses
Annual Sales
7 $53,801 $21,304 $17,443,102
Manual
Classification
Description Annual Payroll
Estimated
Premium
9082 Restaurant $2,417,443 $66,866.84
9084 Bar, Lounge, or Tavern $5,210 $198.22

 “RESTAURANT”
 Includes musicians
& entertainers.
 Restaurants operated
by a hotel or motel to
be separately rated as
“Code 9058”.
Other Manual Classification:
 9084

 Regional Manager was uncertain exactly why WC costs were so high
It is known that there has been a substantial amount of injuries
between 2008 and 2011
A very large claim involved a female worker
stacking frozen fruits & vegetables on shelving
Back injury resulted in the organization exceeding
Maximum Value:
$37,500
Lumbar Disc Displacement
Regional Manager recognizes that this event contributed greatly to
Huntington Family Café‟s current situation, but said, “I don‟t
understand why the incident occurred. There is a [„Back Safety‟]
Computer-Based Training that all employees have to take.”

 Improper Ergonomics
& Lifting Techniques
 Cuts, Lacerations
& Punctures
 Slips, Trips & Falls
 Scalds & Chemical
Burns

 Employee who had ergonomic accident with the company for 4 years.
 Trained on some lifting techniques at new hire orientation and consisted of a few
PowerPoint slides identifying proper mechanics
 There is no formal program related to Hazard Communications.
 Personal Protective Equipment not addressed by any program elements.
 Café is unfamiliar with PPE Hazard Analyses, Job Hazard Analyses, etc.
 The organization is curious about Workers‟ Compensation Fraud.
 Facebook photos indicate that employee has been participating in activities involving
rigorous skeletal movements.
 Employee recently moved from home to a new location; some co-workers, who
helped her with the moving process, were shocked to see her lift heavy items.
 One shift supervisor sees her working out at the local YMCA on a regular basis.
He also states, “Ironically, this incident occurred shortly after we denied her
request to be a server. There is a belief among staff that it may be a
„retaliatory‟ claim! Would camera footage or any other evidence hold up in
court?”

 Employer is interested in any studies or training materials available.
 They are not affiliated with any employer associations or programs.
 Would like to establish better training mechanisms.
 Questions asked about the hiring of employees
 Do restaurants have to hire or keep employees who are physically unable to
complete basic work activities, for example lifting?
 Are there ways to identify if hires already have injuries/illnesses that put themselves
or other workers in danger?”
 Question stems from a probable sprain that caused an employee to spill hot
soup on a fellow employee.
 Confusion exists about some experience data.
 The café does not serve any alcoholic beverages at any of their (7) sites.
 Another inquiry made about alcohol is whether or not corporate can concretely
dictate if this location [visited] has a better Drug & Alcohol Policy. The Regional
Manager and many other employees feel that new hires and individuals that have
been involved in prior accidents are returning to work under the influence. However,
corporate ruling does not allow the site to conduct individual pre-hire, post-accident,
return-to-work testing. “Probable cause/suspicion may be part of the program.”

Cause Total Claims Cost
Improper Ergonomics &
Lifting Techniques
1 $37,500
Cuts, Lacerations, &
Punctures
18 $6,794
Slips, Trips, & Falls 11 $5,364
Scalds & Chemical Burns 15 $4,143
Total Number of Claims
(TML)
45 $53,801

 Is there such a thing as an employee “retaliatory” claim?
The immunity trade-off in Ohio
Ohio Rev. Code 4123.90
 Fraud is different
BWC remedies
Private investigator
Social networks
Employee statements
Keith L. Pryatel

 Options for limiting lifting, multiple employees to complete
task, mechanical equipment to lift heavy items, safety grants
to assist with buying equipment.
 Making sure that training is specific to the companies needs
and conduct refresher training.
 BWC has a “Fraud Department that can investigate possible
fraud issues.
(Fraud vs. Abuse)
 BWC classes both at training sites and online, “Restaurant
and Food Services Safety Workshop”.

 Safety does not end with training
 Must check for employee understanding
 Have employees demonstrate safe behaviors
 Practice with feedback as part of training
 Integrate behavior-based safety coaching into the culture
 Management commitment and employee involvement
 Peer observation and feedback
 Ongoing monitoring and review

Behavior Safe At-Risk
Load appropriate?
Back straight?
Use legs?
Hold load close to body?
Shoulders and hips aligned?
TOTAL
Total Safe Behaviors/Total Safe + At-Risk Behaviors X 100 = % Safe

 Training
 Proper hiring and job
descriptions
 Culture
 Understanding Adult Learners:
Video with no follow-up and
enforcement is not effective
 Clear job descriptions that
include the physical
requirements of employees
 Consistency of HR Practices,
enforcing safety as a daily
practice and Corporate
Values: all locations

Regional Managers need to gain a better understanding of
policies that are in place. Make employees aware as well.
Corporate resistant to pre-employment, post-accident, return to
work drug testing.

ORA / RC360 Workplace Safety Training Guide

Premium Impact of Injury Cost: Improper Ergonomics & Lifting Techniques
If all injuries caused by Improper Ergonomics & Lifting Techniques had not occurred between
2008 and 2011, the 2013 policy year EMR and premium projection would be as follows:
Premium Impact of Injury Cost: Cuts, Lacerations, & Punctures
If all injuries caused by Struck By, Cuts, Lacerations, & Punctures had not occurred
between 2008 and 2011, the 2013 policy year EMR and premium projection would be as
follows:
Estimated EMR=.86
Traditional Group Rating Qualification and Savings
By avoiding the premium impacts of Ergonomics & Lifting Techniques, Struck By, Cuts,
Lacerations, & Punctures qualification for a Traditional Group Rating Program may have
been possible. Based on the data from CareWorks Consultants, the following EMR,
premium and savings could possibly have been realized.
Estimated EMR= 0.54
Estimated Group Discount = 46%
Return on Investment

(Need for Resources Outsourcing)

 Current owner always wanted to have a pizza place.
 Graduate of business school.
 Work experience at a local [favorite] pizza pub.
 Saved up enough to purchase the, already established, facility

 Operation‟s Workers‟ Compensation EMR is well over 1.0
 Claims history of the business is littered with accidents.
 Owner has little experience dealing with these types of
incidents, since his past experiences are in the kitchen.
 Purchase was a package deal:
 Main bar/restaurant
 2 carry-out locations (delivery drivers staffed)
 Day-to-day operations were foreign to owner.
 Recognition that culture needs improvement.
 Pushback from existing staff.
 Employees fear that new ownership & management will
change all aspects of the way business is conducted.

 Drivers
 Cut By Glass
 Cut When Cutting Bread
 Cut When Cutting Meat
 Cut When Cutting Vegetable
 Cut When Cutting on Plate
 Cut When Cutting Onions
 Cut When Cutting Lettuce
 Cut By Cleaning

Knowledge deficiency related to risk management structuring.
Supervisors feel they no longer have input in plan & procedure
implementation
Two have already quit.
Employees express that feeling extremely rushed is a normal occurrence.
Many hazards are present.
Personal Protective Equipment, that is not readily available, is admittedly
not used.
Training is deficient in almost all regards.
Delivery drivers perceived to be the issue when the owner worked at the
restaurant as a peer.
Driver hiring (HR focus) overshadowing the most frequent claims –
knife sticks
Management & ownership personnel interviewed frequently
expressed that these injuries were attributable to chance (“just bad
luck”).

Equipment, known to be improper for the job or damaged, is left out for
usage.
Appliances are assumed to cause risks, due to employees using
improper procedures, or deficiencies related to hardware.
Owner understands insufficient programs, policies, & procedures are to
blame but is unaware of available resources and/or how to best
implement change.
Knives, not the right size or type for the job, are occasionally all that are
available.
Instead of using box cutters, employees will use knives
Counter/wall racks & storage blocks not present; knives stored
improperly.

Cause Total Claims
Drivers 15
Cut By Glass 30
Cut When Cutting Bread 8
Cut When Cutting Meat 11
Cut When Cutting Vegetable 8
Cut When Cutting Plate 3
Cut When Cutting Onion 4
Cut When Cutting Lettuce 2
Cut By Cleaning 2
Total Number of Claims (TML) 83

Change
Management
Strategies
 “Change Management” is a
strategy that will take an
organization from its current
state to a new desired state.
“Change Management” should
be a written plan that is
measureable and involves the
staff
 This can be a great opportunity
to involve the current staff and
set up proper hiring for future
staffing

Keith L. Pryatel
 Acquisitions
 Employee hirings
 Legal albatrosses
 Suggested solutions

Background Checks, including Motor Vehicle
Report, for delivery drivers.
Pre-Employment, Post-Accident, Return-to-Work
Drug Testing for all employees.

 Classes BWC offers to help employers better understand the
workers compensation system;
“Controlling Cost through Claims Management”
“Controlling Workers‟ Compensation Cost”
“Developing a Safety & Health Management System”
 Effective Safety Teams”
 BWC offers special discount programs when employers get into
trouble because of claims.
 Destination Excellence; DFSP, ISSP, TWP, OCP & Safety Council
incentives.

 Consult managers and employees to get their impressions of the
problem areas and ideas / areas for improvement.
 When people contribute to a safety effort, their ownership and
commitment to safety increase.
 Perception of management / owner‟s total buy-in for safety practices
and procedures increases employees‟ participation.

Appropriate Equipment:
 During inspection(s), the following devices were repetitively not available or
improperly used:
 Cut Resistant Gloves
 Lettuce Cutters
 Onion Slicers
 Appropriate Knife Selections
 Personal Protective Equipment
 Need for appropriate cut-resistant gloves often overlooked
 Of restaurants surveyed, injuries commonly occurred while cutting or handling
vegetables, meat, cheese, bread and while handling glassware & plates. The
RiskControl360 survey noted that cutting garnishes, cleaning the facility and
opening boxes with a knife were causes of cuts.
 When on-site safety program evaluations were performed and employees were questioned, they
concurred. Upper management & supervision, when unaware of deficiencies, usually agreed
with these findings when claims were discussed & equipment assessments conducted.

 Available - English/Spanish/
Chinese/Korean/French Canadian/
Japanese/Large Print
◦ Classroom
 8 hours – full semester
◦ Online Course:
 6 - 8 hours
 90 days to complete
 Course Overview
 6E Focus on Prevention
 90 Question Secure Exam
 5 Year / National

Available - English/Spanish
Classroom
 1-3 hours
 Online Course:
 90 minutes
 60 days to complete
 Fully accredited ANSI
Course Overview
 5 Key Areas (Personal Hygiene /
Controlling Time and Temp / Cross-
Contamination / Cleaning and Sanitizing /
Job-Specific Guidelines)
 40 question exam
 Certificate of completion

 Certified Instructor (Active ServSafe Certification Required)
 Teach ServSafe Food Safety Manager training.
 Access online instructor resources and information.
 Registered Proctor (No ServSafe Certification Required)
 Responsible for the secure administration of the ServSafe Food
Protection Manager Certification Exam.
 Schedule online and print exams.
 Maintain confidentiality of exam content.
 Follow the standards outlined in the ServSafe Examination
Administration Handbook and the Performance Agreement.

 Partnering with FARE (formerly FAAN) to create
comprehensive online training program.
 Scheduled to launch in May 2013
 Focuses on employee and manager training
 Identifies common food allergens and symptoms.
 Teaches prevention and contamination control.
 Tests knowledge/learning through online format.
 Utilizes a simple, interactive online format.
 Grants a certificate of completion (upon passing the exam).

Tony Pupillo – Sales Manager, National
Restaurant Association
Regional Manager, Great Lakes
apupillo@restaurant.org
(312) 261-5329 – Direct
General Inquiries – Service Center
Service Center
servicecenter@restaurant.org
(800) 765-2122, ext. 6703
Business Hours: Monday-Friday
9:30 a.m. – 7:30 p.m. Eastern

Look for future Restaurant Education Series events at
www.ohiorestaurant.org, select “Education & Events”
Today at 12:30 pm: “Health Care Law: Next Steps for
Restaurateurs” seminar; this room, E-172
Thank you Panelists and Attendees!

ORA Health and Safety Panel Presentation on Reducing Operational Costs through Smart Safety Procedures - Feb. 18, 2013

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ORA Health and Safety Panel Presentation on Reducing Operational Costs through Smart Safety Procedures - Feb. 18, 2013

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