Pub. 14 2015-2016 Issue 1

N E W J E R S E Y C O A L I T I O N O F A U T O M O T I V E R E T A I L E R S 25 new jersey auto retailer W W W . N J C A R . O R G average EMR is 1.0. If your dealership EMR is 1.20, you are paying insurance premiums that are generally 20 percent higher than “aver- age”. Conversely, if the EMR is less than 1.0, your premiums should be below the industry average. Financial costs from the injuries occurring in the three years prior to the previous year are just part of calculating the EMR, and the formula does not treat all injuries the same. The frequency of injuries is an important factor. For example, if a company has had one severe injury in the three years, its EMR rate would possibly be lower than a company that had no severe injuries but several minor injuries, as having many small injuries could make it more likely that a major injury will happen in the future. High EMRs can be damaging for a business’s bottom line. We all know that workers’ compensation insurance is expensive. A com- monmisconception is that large swings in the EMR are not possible. Previously, shock losses or large single claims had less of an effect on the EMR; however, changes (e.g., weighting factors) in the formula to calculate the EMR have made it more common to find significant increases fromone policy term to another. If an EMR for a company increases from 1.0 in one year to 1.7 in the next year – that would roughly equate to a 70% increase in the premium! The savings from lowering your EMR can also be significant. For example, if your dealership hadEMRof 1.5 and youwere able to drop it to 1.0, your new premium would be expected to be reduced by a third from your previous premium. These are simplified examples and intended only to provide a rough gauge of how the EMR can affect your premium. We all know these premiums are unique to each facility and can be substantial, but you can use this or a similar gauge to calculate rough differences in expenses and potential sav- ings, which could be a result (in part) of a good safety program and reduced injuries. Implementing a safety program and policies at your dealership can reduce the potential for injuries. Safety programelements commonly include training, inspections, equipmentmaintenance and safeguards, andhousekeeping. Again, having a properly implemented safety pro- gramis not only required byOSHA, it is typically a key component in reducing worker injuries and thereby potentially reducing insurance premiums, which could make your dealership more competitive. UPDATES TO OSHA’S RECORDKEEPING RULE – DEALER- SHIPS NO LONGER EXEMPT OSHA recerntly revised its recordkeeping rule and two key changes will impact automotive retailers: 1 First, the list of industries that are exempt fromthe requirement to routinely keepOSHA injury and illness records has been revised and automobile dealerships are no longer exempt fromthis rule. As of January 1, 2015, automobile dealerships must prepare and maintain records of serious occupational injuries and illnesses using theOSHA 300 Form (Log of Work-Related Injuries and Illnesses) and OSHA 301 Form (Injury and Illness Incident Report). All work-related injuries and illnesses that result in days away from work, restricted work or transfer to another job, loss of consciousness, or medical treatment beyond first aid, must be tracked using these logs as they occur throughout the year. At the end of the calendar year, OSHA Form 300A (Summary of Work-Related Injuries and Illnesses) must be completed and posted in the dealership by February 1 and remain posted for three months. 2 Secondly, the rule expands the list of severe work-related injuries that all covered employers must report to OSHA. The revised rule retains the current requirement to report all work-related fatali- ties within eight hours to OSHA and adds the requirement to report all work-related in-patient hospitalizations, amputations or loss of an eye within 24 hours to OSHA. TheOSHAforms canbe foundat: https://www.osha.gov/recordkeep- ing/RKforms.html. In summary, good safety practices aren’t just a logical idea, they are a key component in reducingworker injuries and lost time and can help your dealership’s competitive edge and bottom line. Scott Hubbard, CHMM, is the Compliance Manager for Environmental Compliance Monitoring, Inc. (ECM), an environmental, health and safety consulting firm. Scott may be reached at (908) 874-0990 or seh-ecm@att.net.