Uncompensated consequences of workplace injuries and illness: Long-term disability and early termination

ProblemCosts related to early retirement, termination, or long-term disability could fall outside workers’ compensation (WC).MethodStatistical models examined early retirement, long-term disability status, or early termination related to WC claims.ResultsThe WC-associated early-termination rate ratio was 1.20 (95% CI = 1.14–1.28) for hourly nonunion employees, 1.05 (95% C I= 0.97–1.13) for hourly union employees, and 3.43 (95% CI = 3.11–3.79) for salaried nonunion employees. In the manufacturing-durable sector the WC-associated rate ratio was 1.58 (95% CI = 1.42–1.76) for hourly nonunion employees and 1.23 (95% CI = 1.10–1.38) for union hourly employees. In contrast, in transportation–utilities–communications, the rate ratio was 0.52 (95% CI = 0.46–0.59) for hourly nonunion and 1.22 (95% CI = 1.08–1.38) for union hourly employees.DiscussionUncompensated costs of workplace injuries and illnesses may result from adverse events previously compensated by WC. In some workplaces reduced termination rates with prior WC suggests added costs to employers.SummaryConditions leading to WC claims have cost implications related to early — or delayed — removal from the workforce.Impact on industryAdditional costs from work-related injury or illness that are not covered by workers compensation may result from the effect of continuing impairment on the subsequent early termination (or prolonging) of employment. These costs would accrue to both employers and employees and are not generally included in global estimates of the burden of workplace injuries and illnesses.

► It is well-known that medical costs and lost wages from workplace injuries and illnesses are not fully compensated.
► Another consequence of these injuries or illnesses that can result in inadequate compensation could be long-term disability or early termination of employment.
► This study observed an association between prior workers compensation claims and the incidence rate of long-term disability or early termination.
► Depending on the employers and employee status, such as hourly vs. salaried or union membership, this association could go in either direction.