AGRITRUST OF GEORGIA2020 REGIONAL SEMINAR – A LIVE WEBINAR

WELCOME TO THE FIRST AGRITRUST OF GEORGIA

LIVE WEBINAR ON WAYS TO SAVE $$$

AgriTrust of Georgia - Board of Trustees

Chairman

E. Raybon Anderson, Bulloch Fertilizer Co. Inc., Statesboro

Vice Chairman

Wayne Christian, Christian Family LLLP, Dublin

Cader Cox, III, Riverview Plantation Inc. & Plantation Precooler, Inc., Camilla

Tyler Johnson, Tyler Johnson Enterprises, Inc. DBA Smith Farm Supply, Warrenton

Becky Kilby, Southern Pride & Heritage Produce Inc., Tifton

Ben Lancaster, Jr., Crystal Farms Inc., Chestnut Mountain

Randall Morris, Morris Enterprises, Inc. DBA Morris Farms, Uvalda

Van F. Murphy, Van Murphy Farms, Quitman

Bonnie Sutherland Wilson, Sutherland’s Foodservice, Inc., Forest Park

SPEAKERS

A WELCOME from AgriTrust of Georgia

Chairman E. Raybon Anderson

Eddie Kinnard

President & Fund Pool Manager

AgriTrust of Georgia

3001 Monroe Hwy, Suite 700A

Bogart, GA 30622

Tash Van Dora

The Van Dora Law Firm, LLC

21 Vickery Street

Hartwell, GA 30643

Jimmy Doolittle

Senior Claims Representative

Georgia Administrative Services

1775 Spectrum Drive, Suite 100

Lawrenceville, GA 30043

WELCOME!!! FROM

CHAIRMAN RAYBON ANDERSON

AGRITRUST OF GEORGIA2020 REGIONAL SEMINAR – A LIVE WEBINAR

• Drug Testing

• Independent Contractor or Employee?

• Claims Reporting 101

• Light-Duty Job Offer and WC-240a/ WC-240

• State Board of Workers’ Compensation Petition for Medical Treatment(b)

(WC-PMT(b))

• Claims Settlements

• Various Ways To SAVE $$$ with AgriTrust Premium Credits

DRUG TESTING

• The Four Times to Drug Test

• Should All Employees Involved in the Accident Be

Tested?

• Drug Testing Time Constraints

• What if Employee Refuses a Drug Test?

• How Drug Testing Can $AVE Money

THE FOUR TIMES TO DRUG TEST

1. Pre-Hire

2. Random

3. Reasonable Suspicion

4. Post-Accident

SHOULD ALL EMPLOYEES INVOLVEDIN ACCIDENT BE DRUG TESTED?

YES –Test ALL Involved!!• Helpful in determining why an accident occurred

• May expose a dangerous employee

• Possibly encourages less on-the-job drug use

DRUG TESTING – TIME CONSTRAINTS

• Whenever a worker gets injured, it is imperative that a

drug/alcohol test is administered as soon as possible.

• If an employee tests positive for alcohol (.08 or greater)

within 3 hours of the accident, then there is a legal

presumption that the claimant is NOT entitled to workers’

compensation benefits.

DRUG TESTING – TIME CONSTRAINTS CONTINUED

• If an employee tests positive for other controlled substances

within 8 hours of the accident, then there is a legal

presumption that the claimant is NOT entitled to workers’

compensation benefits

• If a drug test is performed more than 8 hours after the

accident, it is still evidence but does not give the presumption

of non-compensability.

WHAT IF EMPLOYEE REFUSESA DRUG TEST?

• Drug testing is very important as it may help the employer/insurer deny a

claim, even when it may have been a compensable claim.

• If the worker tests positive or unjustifiably refuses a drug test, the burden

of proof switches to the claimant, and there is a rebuttable presumption that

they must overcome to prove that the injuries were not caused by the

drugs/alcohol in their system.

A refusal of the drug test is the SAME as a positive drug screen.

HOW CAN DRUG TESTING $AVE MONEY?

Let’s look at an example of how

Drug Testing Can $AVE MONEY!

These scenarios have been calculated using NCCI

Experience Modification (Mod) worksheets

FUND MEMBER – ABC

Estimated Annual Premium $21,081.00

Experience Mod 0.99

SCENARIO

A worker takes a bad fall and has multiple injuries that result in $100,000.00 in

medical bills (after being fee scheduled).

Injured worker will be out of work for four months (16 weeks) before returning

to work.

Injured worker makes $750.00/week, so weekly benefits will be $500.00/week.

Impact on Experience Mod:

Since the drug test conducted was positive for marijuana and meth and AgriTrust

paid the $5,000.00 initial medical treatment, the Experience Mod would only

increase from 0.99 to 1.02. This would be a Medical-Only claim.

If NO DRUG TEST had been conducted, AgriTrust would have paid $100,000.00

in medical bills and $8,000.00 in indemnity benefits. In this scenario, with this

Lost-Time claim, the Experience Mod would increase from 0.99 to 1.44!

The injured worker was drug tested, and test results were positive for

marijuana and meth. In this instance, AgriTrust denied the claim and

only paid for the initial medical treatment which is $5,000.00 (fee

scheduled amount).

SUMMARY OF $AVING$

DRUG TESTED (Positive Results) NO DRUG TEST CONDUCTED

Fund Member Premium: $21,081.00 Fund Member Premium: $21,081.00

Experience Mod (before accident): 0.99 Experience Mod (before accident): 0.99

Experience Mod Increase (post-accident): 1.02 Experience Mod Increase (post-accident): 1.44

Difference of Mod Increase: 1.02 - 0.99 = 0.03 Difference of Mod Increase: 1.44 - 0.99 = 0.45

Premium Increase: $21,081.00 x 0.03 = $632.00 Premium Increase: $21,081.00 x .045 = $9,487.00

This is why post-accident drug testing is so important

AND how it can and does $AVE money!

INDEPENDENT CONTRACTOR OR EMPLOYEE?

Independent Contractor

• Worker sets his own schedule

• Worker has agreement to begin work on the 1st and work every day until the 15th of the month

• Worker brings his own employees and tells them how and when to do their jobs

• Worker also does his work for other employers

Employee

• Worker comes to work as

employer schedules

• Worker wears a uniform

supplied by employer

• Employer supplies tools to

worker

• Employer takes out taxes

from worker’s paycheck

THINGS ARE NOT ALWAYS AS THEY SEEM

EMPLOYEE STATUS – EXAMPLE ONE

Durham Land Co. v. Kilgore, 56 Ga. App. 785, 194 S.E.2d (1937).

Employer leased a coal mine and equipment to a “contractor” who was the immediate superior of

Claimant, and the “contractor” agreed to mine the coal and deliver the coal to Employer at a

stipulated price per ton and, there was a contract that intended to create an employer-independent

contractor relationship.

However, Employer assumed and did exercise the right to fix the rate of pay, hours of labor, power of

discharge, and the working conditions of the employees of “contractor,” through contracts with the

miner’s union (which claimant and all other employee’s belonged). They also kept books, paid the

miners, and furnished the pay roll.

Court found that, despite the terms of the contract, the real agreement and understanding of the parties was that the employer was to have control over the manner and means of doing the work, and as such, an Employer-Employee relationship was found.

EMPLOYEE STATUS – EXAMPLE TWO

Georgia Power Co. v. Safford, 171 Ga. App. 387, 319 S.E.2d 537 (1984).

Claimant was hired to make houses more energy efficient. He had a contract that had no end date, and that provided for payment by the hour by Employer. It was also found that the contract allowed Employer to terminate the contract and that Employer was responsible for providing necessary materials.

Court found that based on those facts, an Employer-Employee relationship existed.

INDEPENDENT CONTRACTOR STATUSEXAMPLE ONE

Coastal Timberlands, Inc. v. Brown, 141 Ga. App. 800, 234 S.E.2d 373 (1977).

Employer instructed Claimant as to boundaries of the tract from

which timber was to be removed, told him when they wanted

hardwood rather than other types of timber, and to which

lumber yard the timber was to be delivered. Employer also let

Claimant have one of its saws.

Claimant was free to cut or not cut as he chose, paid his own employees, furnished his own equipment other than the saw he borrowed from Employer, used his own truck, paid for his gas and operating expenses, and was free to cut and sell timber from property other than that which he had contracted with Employer to cut. He was paid by the unit according to its agreement, made no deduction for social security taxes, and never treated him as an employee. Claimant described himself as “self-employed” when he was admitted to the hospital following his injury.

Court found this to be an employer-independent contractor relationship.

INDEPENDENT CONTRACTOR STATUS

EXAMPLE TWO

Simpkins v. Unigard Mut. Ins. Co., 130 Ga. App. 535, 203 S.E.2d 742 (1974).

Employer orally agreed with Claimant to do the cornice work and installation of

siding on a building being constructed. Employer agreed to pay a specific amount

per foot to run the cornice work and $22 per square for siding.

Claimant was injured after only two days and had his step-son complete the work

for him. When the work was completed, Claimant submitted a statement for the

entire job and directed that two checks be issued, one for the work his stepson had

done, and the other for the work he had done.

Employer furnished the material and had the right to choose the kind of siding that he desired.

Employer did not have the right to control the time, manner or method of executing the work but had the right only to require certain results. He did not have the right to require Claimant to remove work that had been performed if he did not like it and have it done again in accordance with new instructions. Nor did he have the right to hire additional men to speed up the job he had contracted for Claimant to perform.

Employer testified that “The only thing I am concerned with is the end product, how the men put it up I don’t care so long as it looks right after it’s finished.” He also had the right to terminate the contract at any time if he became dissatisfied with the quality of the work.

Claimant had control over who he hired and how he completed his work. No income tax or social security was withheld from paychecks.

Court found this to be an employer-independent contractor relationship.

INDEPENDENT CONTRACTOR OR EMPLOYEE?

• Look at method of payment

• Length of employment

• Selection of materials and tools

• Control of hours

• Ability to hire and fire

• CONTROL of ALL details – who has it?

INDEPENDENT CONTRACTOR OR

EMPLOYEE? HOW DOES THIS $AVE MONEY?

Who Has Coverage?

• If Fund member hires an independent contractor, Fund member

is not responsible

• If employee, AgriTrust would pick up this payroll amount at audit

• Get a copy of certificate of insurance to verify coverage

CLAIMS REPORTING 101

• Take care of the employee first.

• Obtain facts about the accident/injury.

• Report claim to GAS within

24-48 hours with a WC-1.

• Make sure injured worker is drug tested.

• Refer to the laminated reporting poster,

When An On-The-Job Injury Occurs,

provided by AgriTrust.

WHEN AN ON-THE-JOB INJURY OCCURSCLAIMS POSTER AND VEHICLE CARD

• 2-sided Vehicle Cards are also

available

• Fit in vehicle glove box

• Both are available in Spanish too

• Claims Posters and Vehicle Cards

at available from AgriTrust – just

contact the AgriTrust office

EMPLOYER’S FIRST REPORT OF INJURY OR OCCUPATIONAL DISEASE (WC-1) FORM IS REQUIRED

• Claim must be reported using a SBWC Form WC-1

• ACORD Form OR Supervisors Report are not

acceptable forms to use when reporting a claim

SBWC Form WC-1

First Report of Injury

WHERE CAN I FIND THE WC-1 FORM?

The WC-1 First Report of Injury can be found:

• Members Resource Manual

• Renewal Packet you receive at the end of the year

• GA State Board of Workers’ Compensation website under Forms:

https://sbwc.georgia.gov/forms/board-forms

• AgriTrust of Georgia Website

• Email or Call Jimmy Doolittle! jdoolittle@georgia-admin.com or 678/325-2696

LIGHT-DUTY JOB OFFER AND WC-240A/ WC-240

RETURNING TO WORK

The goal of the workers’ compensation

system is to return the injured worker

to the job (workforce).

LIGHT-DUTY JOB OFFER

• Helps to suspend income benefits.

• State Board of Workers’ Compensation Form Notice To Employee Of Offer

Of Suitable Employment (WC-240) process.

• By having a light-duty job available for the claimant/employee, it puts the

responsibility back to the claimant/employee to either return to work or

risk having benefits suspended. Employee must work one full day (8 hours

or one regularly scheduled shift). If the next day employee calls saying they

cannot perform the job, the employer/insurer shall immediately reinstate

wage benefits. We then will request a hearing to determine if employee put

forth a good-faith effort in returning to work.

• Limits the total exposure of the claim from 400

weeks to 350 weeks.

• Gives employer/insurer substantial leverage in

any settlement negotiations. Leverage is

essential in settlement mediation negotiations

(for our problem children), and light-duty helps

with leverage.

SBWC FORM – JOB ANALYSIS (WC-240A)

EMPLOYER PLAYS HUGE ROLL HERE

• Two-page form may be filed with the WC-240 by employer/insurer

• Provides detailed job description when notifying an employee of suitable employment to his/her impaired condition

• Shall provide it to the employee and his/her attorney at least 10 days prior to the date the injured worker is scheduled to return to work

• Attach this form with WC-240 form and file as an attachment to form WC-2, Notice of Payment or Suspension of Benefits, when unilaterally suspending income benefits

SBWC FORM JOB ANALYSIS

(WC-240A)

SBWC FORM - NOTICE TO EMPLOYEE OF OFFER OF SUITABLE EMPLOYMENT (WC-240) PROCESS

• Notifies the injured worker of an offer of employment suitable

to his/her impaired condition

• Provide to injured worker and attorney at least 10 days prior

to date the employee is scheduled to return to work

• Attach SBWC form WC-240 to SBWC form WC-2, Notice of

Payment or Suspension of Benefits, when unilaterally suspending

income benefits

SBWC FORM NOTICE TO EMPLOYEE OF

OFFER OF SUITABLE EMPLOYMENT

(WC-240)

LIGHT-DUTY JOB OFFER

HOW THIS $AVE$ MONEY…..

EXAMPLE (date of injury January 1, 2020):

• Claimant is drawing $675/week (maximum compensation rate under present law)

• After 6 months (26 weeks), claimant is released to light-duty work

• A WC-104 form is filed – states that after 52 weeks, benefits will be reduced to

$450/week (maximum temporary partial disability benefits)

• From July 1, 2020 (6 months after accident when claimant was returned to light-

duty work) to July 1, 2021(52 weeks), the claimant draws 52 weeks x $675/week,

totaling $35,100.00

• Because a WC-104 form, Notice to Employee of

Medical Release to Return to Work with

Restrictions or Limitations, was filed, maximum

exposure changed to 350 weeks from January 1,

2020 date of injury.

• Maximum exposure without a WC-104 would be

$675/week x 400 weeks = $270,000.00.

• Maximum exposure with a WC-104 would be

350 weeks total

$AVING$Light-Duty Work

Temporary Partial Disability

No Light-Duty

Total Disability

350 weeks of indemnity benefits 400 weeks of indemnity benefits

78 weeks x $675.00 (max.) = $52,650.00 400 weeks x $675.00 (max.) = $270,000.00

272 weeks x $450.00 (max.) = $122,400.00 Full 400 weeks at maximum of $675.00/week

Total Indemnity Paid = $175,050.00 Total Indemnity Paid - $270,000.00

At least a $94,950.00 savings because of light-duty work (or more if injured

worker released to full-duty work before the 350 weeks)

STATE BOARD OF WORKERS’COMPENSATION PETITION FORMEDICAL TREATMENT(B) (WC-PMT(B))

PETITION FOR MEDICAL TREATMENT(B)

(WC-PMT(B))

Employer/insurer can now petition the State Board of

Workers’ Compensation for a conference call with a Board

Administrative Law Judge during which the

employee/claimant must “show cause” why an order should

not be issued directing the employee/claimant to attend an

appointment with an authorized treating physician.

This form will be used when an

employee/claimant is not attending

medical appointments to attempt to

obtain a Board order directing

employee/claimant to attend the

appointment or face a suspension of benefits.

Previously, if an employee/claimant was refusing

to comply with medical treatment,

employer/insurer had to file a motion or request

a hearing to instruct employee/claimant to

comply with their medical care. The PMT(b)

form has streamlined the process.

PMT(b) form is not to be used when an

employee/claimant misses an Independent

Medical Examination (IME) – a motion must

be filed.

SBWC FORM WC-PMT(B)

CLAIMS SETTLEMENTS

• Two Types of Settlements

• Why Settle a Claim?

• How to Value a Case for Settlement Mediation

• Cost If Not Settled – Catastrophic vs. Non-

Catastrophic Cases

• Is a PPD Rating the Same as a Settlement?

THE TWO TYPES OF SETTLEMENTS

1. Bona Fide Dispute Settlement

2. No-Liability Settlement

Almost every settlement will include a separate General

Release of All Claims and a Resignation and Agreement

not to reapply….Employer CANNOT RE-HIRE employee

after settlement.

WHY SETTLE A CLAIM?

Claims are not like wine – they don’t get

better with age!

Settlement of a claim provides permanent

closure for the employer and the Fund

HOW IS A SETTLEMENT VALUED AT MEDIATION?

• Future medical costs

• Future weekly indemnity benefits

•Both reduced to present value

•Disability rating under workers’ compensation laws

•Pain and suffering are NOT included

COST IF CLAIM IS NOT SETTLED

CATASTROPHIC CLAIM

• Lifetime medical and

indemnity benefits

NON-CATASTROPHIC CLAIM

• 400 weeks medical/possible

• 400 weeks indemnity

DO THE MATH…..

PERMANENT PARTIAL DISABILITY (PPD) RATING VS. SETTLEMENT

•Another benefit the employee is due

•Settlement brings permanent closure to

the claim

COST OF SETTLEMENTS – A CASE STUDY

• Laborer fell approximately 30 feet off a bridge where he was working and hit the ground (the water).

• He suffered severe internal injuries of the kidney and intestines. He also suffered broken pelvis, leg, shoulder and arm. Injuries resulted in a one-month hospital stay. He was barely able to walk after his recovery.

• Medical bills approached 2 million dollars.

• His case clearly catastrophic – lifetime benefits at approximately $500.00/week. (Claimant was around 30 years old with a life expectancy of approximately 40 years.)

• Claimant tested positive for marijuana (but defense was going to be difficult to prove).

SETTLEMENT CASE STUDY – CONTINUED

LEVERAGE AND NEGOTIATION

• Leverage – positive drug screen. Employer was

able to cast enough doubt on the case that the

claimant’s attorney wanted to settle (and get

paid).

•Negotiation – had to take place as the hospital

wanted its 2 million.

CASE STUDY - OUTCOME

• Claimant’s attorney was able to convince hospital to take

$250,000.00 or receive $0.00 as claim was not compensable

(positive for marijuana)

• Employer’s settlement offer - $500,000.00

• Injured worker received $250,000.00

• Employer dodged a 3 million payout, saving 2.5 million!

VARIOUS WAYS TO $AVE MONEY

WITH AGRITRUST PREMIUM CREDITS

•Per-Claim Deductibles

•Drug Testing

•Regional Seminars

•Quarterly Conference Calls

•Quarterly Safety Initiatives

•Ginner’s Safety Roundtables

PER-CLAIM DEDUCTIBLES

Per-Claim Deductible Premium Discount

$100.00 .6%

$200.00 1.0%

$300.00 1.4%

$400.00 1.7%

$500.00 2.1%

$1,000.00 3.4%

$1,500.00 4.5%

$2,000.00 5.4%

$2,500.00 6.3%

DRUG TESTING

• 7½% Credit – Certification in the State Board of Workers’ Compensation “Drug-Free Workplace” Program.

• 5% Credit – All employees, full-time, part-time, seasonal or otherwise, shall be drug/alcohol tested at least once during a calendar year. This drug/alcohol testing can be done based on a pre-employment, random, post-accident and/or reasonable suspicion basis.

• 3% Credit – Pre-employment, post-accident and reasonable suspicion drug/alcohol

testing.

• 1% Credit – Post-accident and reasonable suspicion drug/alcohol testing.

REGIONAL SEMINARS

Audited Premium Amount Seminar Credit

$0 - $5,000 $50.00

$5,001 - $10,000 $100.00

$10,001 - $15,000 $150.00

$15,001 - $25,000 $200.00

$25,001 - $50,000 $250.00

$50,001 & Up $300.00

QUARTERLY CONFERENCE CALLS

Audited Premium Amount Credit per Call (Affidavit)

(minimum of 2 calls/year)

$0 - $5,000 $25.00

$5,001 - $10,000 $50.00

$10,001 - $15,000 $75.00

$15,001 - $25,000 $100.00

$25,001 & Up $125.00

QUARTERLY SAFETY INITIATIVE

• Promotes employee safety

• Monthly Safety Alert and Safety Mentality information is provided by

AgriTrust for training purposes

• Fund members have access to dozens of safety videos through Midlands

Management Corporation

• Submit Entry Form for every training session/meeting

• One winner will be selected quarterly and can win up to $2,000.00

GINNER’S SAFETY ROUNDTABLES

A motion was made by AgriTrust of Georgia Trustee Ben Lancaster,

seconded by Trustee Becky Kilby and unanimously passed by all approving to

increase the premium credit for companies attending the Ginners’ Safety

Roundtables to:

• $100.00 per attendee up to 5 attendees

• $50.00 per attendee from 6 to12 attendees

• Total premium savings for a cotton gin could be up to $850.00

• Effective in 2020

GINNERS’ SAFETY ROUNDTABLES

The 2020 Ginner’s Safety Roundtable will be video

recorded and made available to all cotton gins.

The gins can present the information to their

employees and earn premium credit as verified by

affidavit submission.

THANK YOU FOR CHOOSINGAGRITRUST OF GEORGIA

P.O. BOX 167, WATKINSVILLE, GA 30677

678/753-0016 • TOLL FREE 855/753-0016

FAX 678/753-0056

WWW.AGRITRUST.BIZ