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Orange County Human Resource. Department
208 South Cameron Street
Post Office Box 8181
Hillsborough, NC 27278
TO: Laura Blackmon, County Manager
Michael McGinnis, Human Resource Director
FROM: Annette M. Moore, Policy and Compliance Officer
RE: Worker's Compensation Administrative Rules and Regulations
Date: June 16, 2008
Tel (919) 245-2550
Fax (919) 644-3009
www.co.orange.nc.us
At the June 26, 2007 Board of County Commissioners meeting, the Board approved a revised
Section 1.0 of Article TV of the Personnel Ordinance regarding worker's compensation. The
revision directed the County Manager to develop Rules and Regulations consistent with the North
Carolina Worker's Compensation Act to provide the staff with guidance necessary to comply with
both the Act and the Orange County Personnel Ordinance.
As you are aware prior to the Board's initial review of the Worker's Compensation Rules and
Regulation, on November 13, 2007, the draft rules were reviewed by the County Manager, County
Attorney, Department Directors, and appropriate staff members. After receiving input from the
Board, Staff received additional questions and comments from Department Directors and others on
the Worker's Compensation Rules and Regulations. To respond to those questions, additional
meeting were held to ensure that the language was clear, other points of view were taken into
consideration and that best practices were used in developing the Worker's Compensation Rules and
Regulations. After those meetings, the initial document was modified to incorporate suggested
changes, comments and best practices. Meetings were then again held to discuss the resulting
documents and the procedures necessary for carrying out the Rules and Regulations.
These Administrative Rules and Regulations that have been developed are consistent with the
language in the North Carolina Workers Compensation Act and best practices. In addition, they will
to provide guidance to supervisors and employees to carry out the revision to Article IV, Section 1.0
of the Orange County Personnel Ordinance. With the Manager's approval, the Administrative
Rules and Regulation will be ready for implementation
As part of this process you may also recall that we are required to inform the Board of the
implementation of or substantive changes to the Rules and Regulations to ensure that they are
consistent with the actions of the Board. See Orange County Personnel Ordinance Article I, Section
7.0. I am requesting that we place a copy of the Worker's Compensation Leave Administrative
Rules and Regulation on the Board's Agenda so that we may comply with the Boards request prior
to implementing these Rules and Regulation. Let me know if you have any additional questions:
An Epual Opportunity/Affirmative Action Employer
Orange County Personnel Rules and Regulations Manual Effective Date: 7/1/ 2008
Worker's Compensation
I. ORDINANCE
In accordance with the provisions of the North Carolina Workers' Compensation Act, Orange
County will provide for employees protected under the Act who by accident suffer personal
injury or occupational disease arising out of and in the course of their employment with the
County. (See NCGS 97-1, et. seq., The North Carolina Workers' Compensation Act) The
County Manager will promulgate rules and regulations consistent with the North Carolina
Worker's Compensation Act necessary to carry out the provisions of this Article. See Orange
County Personnel Ordinance, Article IV, Section 1.0, adopted June 26, 2007.
II. AUTHORITY
The purpose of this rule is to implement and give effect to Article IV, Section 1.0 of the Orange
County Personnel Ordinance, Workers' Compensation. (See also NCGS 97-1, et seq. and 04
NCAC 10 et seq.) These Administrative Rules and Procedures provide for consistent application
of the Ordinance to ensure that Orange County employees who receive a compensable injury
under the Workers' Compensation Act while on the job are provided a swift and certain remedy
for their injury and to ensure limited and determinate liability for the County.
III. RULE
The Orange County Workers' Compensation section of the Personnel Ordinance provides
employees, who are injured on the job as a result of compensable accident under the Workers'
Compensation Act, medical benefits, disability compensation, and leave for employees who lose
time from work as a result~of their injury. When an employee receives a compensable injury, as
defined in G.S. 97-2(6), the employee must go on workers' compensation leave and receive
workers' compensation weekly benefits after the waiting period, required by G.S. 97-28, in
accordance with these Administrative Rules and Regulations.
IV. ADMII~TISTRATIVE RULES AND REGULATIONS
A. Worker's Compensation Administration
1. Covered Employees -Ail Orange County employees, as defined in G.S.
97-2(2), engaged in employment with the County are covered under the
North Carolina Workers' Compensation Act and these Administrative
Rules and Procedures. This includes all permanent, provisional,
temporary, time-limited, and part-time employees, officers and elected
officials.
2. Benefits -Any employee who suffers an accidental injury or an
occupational disease, within the meaning of the Workers' Compensation
Act, arising out of or during the course of their employment is entitled to
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Orange County Personnel Rules and Regulations Manual Effective Date: 7/1/ 2008
receive benefits as provided by the Act, and in accordance with these
rules.
a: An employee is entitled to medical benefits and compensation for
time lost from work and any disability that results from the injury.
b. Time missed from work will be paid in accordance with the
provisions of the Workers' Compensation Act. Currently, the
weekly compensation to be paid is equal to 66 2/3 of the
employee's average weekly earnings up to a maximum established
by the North Carolina Industrial Commission each year.
3. Employee's Responsibility -Responsibility for claiming compensation is
on the injured employee.
a. An employee must provide notification of an accident to their
Department Director, their Department Director's designee,
supervisor and the Human Resource Department immediately, or
as soon as practicable thereafter, but no later than 30 days after the
occurrence of the accident or death; and
b. Employees or their representatives should contact the employee's
supervisor at least once a week, if the injured employee's condition
allows, this can be done by telephone or in person as the supervisor
requires (employees released to light duty who do not have an
assignment, must contact their supervisor weekly as designated by
the supervisor);
c. File a claim through the North Carolina Industrial Commission
within two years from the date of injury or knowledge thereof. See
www.comp.state.nc.us/ncic/pages/forml8a/pdf; and
d. It is the responsibility of the injured employee to maintain contact
with their supervisor at least once a week, if the injured condition
allows.
4. Department's Responsibility -The department is responsible for:
a. Ensuring that the Workers' Compensation policy and these rules
and procedures are communicated to employees; and
b. Filing an accident report in the Human Resource Department
within 24 hours of the time of the accident, or as soon thereafter as
practicable. (Workers' Compensation Form 19, Employers Report
of Injury to an Employee, See
http://www.comp.state.nc.us%ncic/pales/forml9.pdf); and
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Orange County Personnel Rules and Regulations Manual Effective Date: 7/1/ 2008 (/
c. Maintaining contact with the injured employee by establishing
with the employee a designated time and manner of reporting, if
the injury allows; this may be accomplished by, but not limited to,
such things as meetings by telephone or email or in person.
5. Human Resource Department Responsibility -The County, through the
Human Resource Department, is responsible for administering the
workers' compensation program. The Human Resource Department is
responsible for:
a. Designating a Workers Compensation Administrator to be
responsible for ensuring processing and monitoring of claims; and
b. Reporting an injury to the North Carolina Industrial Commission
within five days from knowledge of any claim that results in more
than aone-day absence from work or if medical expenses exceed
the reportable amount established by the Industrial Commission.
c. Effectively communicating the Worker's Compensation Policy and
these rules and regulations to employees and supervisors.
6. Return to Work -
a. An employee, who has been released by the treating physician to
return to work after experiencing awork-related injury or illness,
has three possible return to work situations. The Human Resource
Department shall develop a structured Return to Work Program to
address each of these situations.
i. The Employee has Reached Maximum Improvement and is
Released to Return to Work - When a employee has
reached maximum improvement and has been released to
return to work by their treating physician, the department
shall return the employee to the same position or one of
like seniority, status and pay as that held prior to workers'
compensation leave.
ii. Has Not Reached Maximum Medical Improvement but is
Ready to Return to Limited Duty -When an employee has
not reached maximum medical improvement and is ready
to return to limited work duty with approval of the treating
physician, but retains some disability which prevents
successful performance in the original position, the County
shall, if available, provide work reassignment suitable to
the employee's capacity which is productive and
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Orange County Personnel Rules and Regulations Manual Effective Date: 7/1/ 2008
advantageous to the employee and the County. This work
assignment shall:
Be a temporary assignment; and
2. Not exceed 90 days without approval from the
Human Resource Department.
iii. Has reached Maximum Medical Improvement but has a
Disability -When an employee has reached maximum
medical improvement and has been released to return to
work by the treating physician, but has received a disability
which prohibits employment in the previous position, the
County shall:
1. Attempt to place the employee in another position
(with an appointment similar to that held prior to
the injury) that is suitable to the employee's
capacity and is productive and advantageous to both
the employee and the County.
2. During the work placement efforts, the employee
shall be appointed to the frrst suitable vacancy that
occurs;
3. If the employee accepts a position in a lower pay
grade than the pre-injury position, the employee's
pay must be adjusted, as appropriate within the
range of the lower pay grade.
4. If a position is not available that is suitable to the
employee's capacity, the employee shall continue
on workers' compensation leave until work
placement or separation.
5. Work placement efforts may be in the form of
referral to internal vacancies, other state or
municipal government vacancy listings, third party
reemployment services, vocational rehabilitation,
etc.
6. Placement efforts do not preclude separating an
employee on workers' compensation benefits, if it is
determiried that the position that the employee
currently fill is a "critical" position. Separation
may occur at anytime in accordance with the
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Orange County Personnel Rules and Regulations Manual Effective Date: 7/1/ 2008 C._./
Orange County Personnel Ordinance, Article IX -
Separation.
b. Certification Required. Prior to returning to work, a Physician's
Certification will be required to determine an employee's fitness to
return to work.
c. Refusal of Suitable Employment - If an employee who has been
on workers' compensation leave, has reached maximum medical
improvement and is released by the treating physician to return to
work and refuses suitable employment in keeping with the
employee's capacity, the County shall request stop payment of the
workers' compensation benefits and implement dismissal
procedures.
7. Retaliatory Employment Discrimination Act (REDA) GS 95-240 et. seq. -
No employee shall be discriminated or retaliated against because the
employee in good faith filed or threaten to file a workers' compensation
claim.
B. Use of Leave Time by Employee on Worker Compensation Leave
1. Leave on the Day of Injury - No leave shall be charged to the injured
employee on the day of the injury if the treating physician instructs the
employee not to return to work in either permanent duty or restricted duty.
The employee will be required to present a written statement, upon
request, to the Department Director or supervisor from the treating
physician indicating that the employee is not to return to work in either a
permanent or restricted duty capacity.
2. Additional Leave - If additional leave time is required, after the seven (7)
day waiting period required by G.S. 97-27, the employee must go on
workers' compensation leave and receive the workers' compensation
weekly benefit.
a. An employee may choose one of the waiting period options listed
below: Once an election is made it may not be rescinded during
the duration of the claim:
i. Option 1: Elect to take compensatory, sick or vacation leave
during the required waiting period and then go on workers'
compensation leave and begin drawing weekly benefits.
ii. Option 2: Elect to go on workers' compensation leave with
no pay for the required waiting period and then begin drawing
weekly benefits.
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b. If time lost extends beyond the specified twenty-one (21) days of
disability period, the workers' compensation weekly benefit shall
be paid from the day 1 of disability forward. If this occurs and the
employee elected Option 1 listed above, then no adjustment will be
made to the employee leave balance for those workdays.
3. Use of Partial Leave - In Option 1 or 2 above, after the employee has gone
on workers' compensation leave, the weekly benefit nzay be supplemented
by use of partial compensatory, sick or vacation leave, earned prior to the
injury. This will be done by calculating the employee's average weekly
wage multiplied by 33 1/3 (approximately 13.33 hours). This wrli provide
a total income approximately equal to the employee's take-home or net
pay. Compensatory leave must be exhausted prior to using sick or
vacation leave.
4. Overtime Compensation Leave -Overtime Compensation Leave accrued
prior to the injury, if applied within the timeframe specified in the Orange
County Overtime Compensation Policy, may be used during the 7-day
waiting period. Overtime Compensation Leave must be used before sick
or vacation leave.
5. How to Pay Partial Leave - If an employee has earned leave or
compensatory time and chooses to use it while drawing the weekly
benefit, it shall be paid on a temporary payroll at the employee's hourly
rate of pay, subject to state and federal withholding taxes and Social
Security, but not subject to retirement withholdings, the same as other
temporary pay.
6. No Leave Required for Follow Up Medical Visits - An employee who
returns to work and is required to attend medical or therapy appointments
during regularly scheduled work hours to reach maximum medical
improvement, shall provide the supervisor with notice of the
appointments, but is not required to take leave from work for required
treatment. Paid time away from work will be limited to reasonable time
for treatment and travel; excess time will be charged as personal leave,
petty leave, vacation leave, sick leave or leave without pay.
7. Personal, Vacation and Sick Leave Credits -While on workers'
compensation leave, the employee shall continue to accumulate personal,
vacation and sick leave to be credited to the employee's account for use
upon return to permanent duty.
Leave Paid if Employee Does Not Return - If an employee does not return
to permanent duty from workers' compensation leave, both accumulated
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Orange County Personnel Rules and Regulations Manual Effective Date: 7/1/ 2008
or unused vacation leave accrued at the time of the injury, and not
subsequently used to supplement weekly benefit, shall be paid out in a
lump sum payment; however, in no event shall the lump sum payment
exceed a maximum of 240 hours. The employee will not receive any
compensation for unused petty, personal or sick leave.
9. Health Insurance -While on workers' compensation leave, an employee
shall continue to be covered under the County's health insurance program
as if in a paid status.
a. The County will pay monthly health insurance premiums for the
employee; the employee will be billed directly for dependent care
premiums and must pay the Orange County Finance Department
directly for the cost of the premiums.
b. Employees who use partial vacation or sick leave may elect to pay
for dependant care premiums through payroll deduction. If the
amount of the premium exceeds the amount of pay, then the
employee will be billed for the difference between the payroll
deduction and the cost of the premium by the Finance Department
and the employee must remit the cost of the premium to the
Finance Department.
c. If employee separated prior to remitting payment of the premium,
payment will deducted from any remaining money owed to the
employee.
10. Retirement Service Credit- While on workers' compensation leave an
employee does not receive retirement credit. As a member of the Local
Government Employees Retirement System, an employee may elect to
purchase credits for the period of time on an approved workers'
compensation leave of absence. The employee may request information
from the Local Government Employees Retirement System about this
process.
11. County Service Credit and Pay Status -While on workers' compensation
leave, the employee shall continue to receive total county service credit.
12. Longevity Pay -While on workers' compensation leave, an employee will
continue to receive longevity credit. Employees who are eligible for
longevity pay shall receive their annual payment when they return to
work.
13. Reinstatement Salary -Upon reinstatement, an employee's salary shall be
computed based on the last salary received by the employee plus any
Board of County Commissioner adjustments or increases to salary to
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Orange County Personnel Rules and Regulations Manual Effective Date: 7/1/ 2008
which the employee is entitled; however, this does not include any
increase for performance. Any performance increase which would have
been given had the employee been at work may be included in the
reinstatement salary if the employee has worked more than six months
within the timeframe for evaluation of performance, or it may be given on
any payment date following reinstatement.
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