{"id":356,"date":"2013-11-03T17:25:54","date_gmt":"2013-11-03T22:25:54","guid":{"rendered":"https:\/\/roofingmagazine.com\/?p=356"},"modified":"2013-11-03T17:26:28","modified_gmt":"2013-11-03T22:26:28","slug":"south-carolinas-workers-compensation-laws-changed-benefit-injured-employers","status":"publish","type":"post","link":"https:\/\/roofingmagazine.com\/south-carolinas-workers-compensation-laws-changed-benefit-injured-employers\/","title":{"rendered":"South Carolina\u2019s Workers’ Compensation Laws Have Changed to Benefit the Injured and their Employers"},"content":{"rendered":"

Ensuring compliance with workers’ compensation laws is consistently a concern among many states because of the impact noncompliance can have on injured employees and employers who follow the law. Noncompliance with workers\u2019 compensation laws negatively affects those injured on the job, as well as law-abiding employers. Fortunately, the workers\u2019 compensation laws of South Carolina are implemented relatively efficiently and result in more resolved cases for injured workers than many other states. Some recent changes in the state\u2019s laws are designed to make the process more efficient.<\/p>\n

Workers\u2019 compensation insurance provides medical benefits and wage reimbursement for employees who become injured while on the job. The South Carolina Workers\u2019 Compensation Act provides that injured employees are entitled to recover necessary medical treatment, loss of wages during a period of disability, and compensation for permanent disability or disfigurement. There are three types of work-related injuries that can qualify for workers\u2019 compensation payments: physical injuries, mental injuries accompanied by physical injuries and mental injuries with no physical injuries.<\/p>\n

In South Carolina, employees may collect workers\u2019 compensation for all wages and benefits, including those from other employers. This gives South Carolina employees an advantage over neighboring North Carolina employees who may only collect workers\u2019 compensation for wages earned from the specific job on which the injury occurred.<\/p>\n

Who Is An Employee?<\/h4>\n

The South Carolina Workers\u2019 Compensation Act defines \u201cemployee\u201d as \u201cevery person engaged in an employment under any appointment, contract of hire or apprenticeship, express or implied, oral or written \u2026 but excludes a person whose employment is both casual and not in the course of the trade, business, profession, or occupation of his employer \u2026 .\u201d<\/p>\n

Every South Carolina employer and employee is presumed to be covered by the act. Employers covered by the act are required to maintain insurance to cover compensation or provide the South Carolina Workers\u2019 Compensation Commission with proof they have the ability to pay the compensation for an injured employee.<\/p>\n

There are a few exceptions to the workers\u2019 compensation laws, including businesses employing fewer than four employees or having a total annual payroll of less than three thousand dollars in the previous calendar year, regardless of the number of employees. Employers who qualify for exemption may elect to come under the act and may subsequently withdraw with written notice to the Workers\u2019 Compensation Commission.
\n<\/p>\n

The LAC Audit<\/h4>\n

The South Carolina Workers\u2019 Compensation Commission is responsible for administering the state\u2019s workers\u2019 compensation laws. The commission ensures the workers\u2019 compensation system meets employees\u2019 needs and monitors payment by the employer or its insurance provider to injured workers.<\/p>\n

In 2010, the South Carolina Workers\u2019 Compensation Commission was audited by the Legislative Audit Council (LAC) because of a request by members of the state legislature to ensure the program was operating efficiently and effectively. In the 2010 audit, the LAC reviewed the commission\u2019s efforts in enforcing South Carolina\u2019s workers\u2019 compensation laws.<\/p>\n

The LAC\u2019s audit reviewed the commission\u2019s compliance division and its efforts to identify uninsured employers. The compliance division is responsible for finding employers who do not have the requisite workers\u2019 compensation insurance. To identify employers who are not abiding by the workers\u2019 compensation laws, the division compares two databases: a database with employers who employ six to 20 employees and a workers\u2019 compensation database. When these databases locate uninsured employers, compliance officers fine and collect from those employers, bringing more uninsured employers into compliance. Although the division is taking action to find uninsured employers, the audit found their efforts fail to address many of the uninsured because of a shortage of investigating officers employed by the division.<\/p>\n

The LAC\u2019s audit also reviewed contested and appealed workers\u2019 compensation cases to be sure they complied with the law. The audit determined the contested and appealed cases were complete and timely filed in compliance with state laws.<\/p>\n

The LAC\u2019s 2010 audit made minor recommendations for improvement of the commission for the benefit of employees injured on the job, which brought about changes within the commission. A full report of the 2010 LAC audit can be found on the Legislative Audit Council\u2019s website<\/a>.<\/p>\n

Compliance Issues within the Construction Industry<\/h4>\n

Many employers fail to comply with the South Carolina Workers\u2019 Compensation Act by falsifying relevant information regarding their employees. A significant percentage of uninsured claims occur within South Carolina\u2019s construction industry because higher tier and general contractors are often uninsured. These employers frequently assert they have no employees or do not have the mandatory number of employees to subject them to the act, claiming they operate mostly through subcontractors. However, these employers frequently have dozens of employees.
\n
\nEmployers who evade their responsibilities to purchase workers\u2019 compensation insurance or who intentionally misclassify employees create a premium shortfall. When an insufficient amount of premium is collected to pay claims, rate increases are triggered and inequities rise among subcontractors. Some contractors who falsify their information are able to underbid competitors who are paying fair market rates for workers\u2019 compensation insurance. Bringing these employers into compliance with the act should lower the cost of workers\u2019 compensation insurance in South Carolina.<\/p>\n

Recent Changes<\/h4>\n

The last time the South Carolina legislature spent substantial time reforming South Carolina\u2019s workers\u2019 compensation law was 2007. When the 2007 Workers\u2019 Compensation Reform Act was passed, it called for the closure of the Second Injury Fund (SIF), which was originally designed to help pay for benefits for those who came to the job with preexisting injuries. Employers have paid into this fund for decades. When previously injured employees were subsequently injured, benefits for the new injury would be paid from the SIF. As a result, employers would no longer be deterred to hire those who had previously been injured because benefits for the second injury would not come directly from employers\u2019 policies.<\/p>\n

Because the Americans with Disabilities Act outlawed disability discrimination, use of the fund as an incentive for employers to hire previously disabled employees was considered unnecessary. SIF was phased out in July 2013 and no longer accepts reimbursement claims for injuries that occurred after July 1, 2008.<\/p>\n

According to the LAC, the phasing out of the SIF provides savings through the gradual elimination of administrative costs. These costs include the SIF\u2019s operating costs, which average $1.6 million annually, and costs to handle SIF claims. Recovery agencies charge fees ranging from 7 to 15 percent of reimbursements to assist in identifying and submitting claims to the SIF. According to some estimates, South Carolina insurance carriers and self-insurers spent between $7 million and $11 million in fiscal year 2005-06 for recovery agency fees.<\/p>\n

The South Carolina Uninsured Employers\u2019 Fund (UEF) was phased out along with the SIF. This fund existed to pay the medical bills and claims of injured workers whose employers did not carry the requisite workers\u2019 compensation coverage. The 2007 reform legislation provides for the transfer of the UEF\u2019s obligations to the State Accident Fund on July 1, 2013. The LAC audit shows phasing out the SIF and the UEF programs should lead to long-term savings.<\/p>\n

Furthermore, the commission recently implemented new requirements for workers\u2019 compensation cases. Effective June 28, 2013, new mediation regulations were published in the South Carolina State Register. These mediation regulations require certain cases to go to a mediator for dispute resolution without a hearing. According to the commission, the new requirement gives parties an opportunity to resolve disputes in a timely and cost-effective manner.<\/p>\n

Although compliance with workers\u2019 compensation laws continues to be a major concern, particularly in the construction industry, South Carolina has addressed many issues in an attempt to benefit employees injured on the job and employers who carry the requisite insurance. South Carolina businesses and employees should stay tuned to see how the recent changes in the law unfold.<\/p>\n

Stay Up to Date about South Carolina\u2019s Workers\u2019 Comp Laws. <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Ensuring compliance with workers’ compensation laws is consistently a concern among many states because of the impact noncompliance can have on injured employees and employers…<\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[22,21],"tags":[193,192,186,191,194,195,159,190,196,189],"jetpack_publicize_connections":[],"yoast_head":"\nSouth Carolina\u2019s Workers' Compensation Laws Have Changed to Benefit the Injured and their Employers - 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