HomeMy WebLinkAboutAgenda - 06-26-2007-4nORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: June 26, 2007
Action Agenda
Item No. ~' I'1
SUBJECT: Proposed Revision to Personnel Ordinance -Article VI, Section 1.0 Worker's
Compensation Leave
DEPARTMENT: Personnel/Purchasing PUBLIC HEARING: (Y/N) No
ATTACHMENT(S):
Comparative Analysis
Proposed Ordinance Amendment
Article IV, Section 1.0
INFORMATION CONTACT:
Rod Visser, Acting Personnel Director,
919-245-2552
Annette Moore, Policy and Compliance
Officer, 919-245-2317
Pam Jones, Purchasing & Central
Services Director, 919-245-2652
PURPOSE: To consider a proposed revision to of the Orange County Personnel Ordinance,
Article IV, Section 1.0 Worker's Compensation Leave.
BACKGROUND: During the past decade, Orange County has experienced a pattern of
substantial increases in the County's annual premiums for worker's compensation insurance.
Consistent with the advice from the County's insurance provider, the Manager's Recommended
2007-08 Budget includes an appropriation of approximately $1 million to address the County's
workers' compensation premiums.
The County's insurer has urged County staff to examine its current policies and practices related
to administration of its workers' compensation program to ascertain if there are reasonable
measures the County could undertake to reduce the costs incurred by the County in a typical
year. For example, the North Carolina Workers' Compensation Act (NCGS 97-1, Et. Seq.)
requires employers to provide employees who miss more than seven days of work under a
validated workers' compensation claim with weekly compensation equal to sixty-six and two-
thirds percent (66 2/3 %) of their average weekly wages. Orange County's practice has been to
pay injured employees 100 percent of their salary: (See attach comparative analysis of the
compensation requirements under the Workers' Compensation Act as compared to
compensation now being paid by Orange County and the additional cost to the County of that
practice.) These provisions and this potential change was recently discussed at one of the
Board's budget work sessions.
While the existing Article IV, Section 1.0 of the Personnel Ordinance does not provide for
Orange County's current practice of paying 100% of an injured employee weekly wages, it does
allow for practices to evolve over time that are not consistent with the North Carolina Workers'
Compensation Act or the will of the Board. The proposed revisions would allow the County
Manager the administrative flexibility to carry out the will of the Board through the development
of rules and regulations that are consistent with local, state and federal law and in this particular
case consistent with the North Carolina Workers Compensation Act, employee's rights under
the Act and would provide reasonable measures to, in the future, reduce County costs. The
Manager would bring back to the Board for its review the rules and regulations necessary to
carry out this section of the Ordinance.
FINANCIAL IMPACT: Orange County costs for worker's compensation premiums for 2007-08
are expected to be over $1 million. The proposed changes to the Personnel Ordinance and to
County practice could lead to savings in future fiscal year premiums.
RECOMMENDATION(S): The Manager recommends that the Board approve the proposed
Personnel Ordinance revisions, and authorize the Manager to develop rules and regulations to
carry out this section of the Personnel Ordinance.
Comparative Analysis
The basic requirements of the North Carolina Industrial Commission are that:
• Employers ensure employees injured on the job receive medical treatment without cost to
the injured employee;
• Employees are paid 66 2/3 of their weekly wages for all time lost beyond seven days
• Treating providers follow the direction of the Claims Manager (e.g., Sedgwick CMS)
• Employers do not retaliate against employees who have filed a WC claim
Orange County practices have evolved so that we provide much greater benefits to injured
workers than most other local governments. The chart below compares the federal and state
requirements with Orange County's practices.
State/Federal Orange County Additional Cost to
Re uirements Count
66 2/3 payment for time 100% of salary paid 33 1/3% of salary
lost due to injury, untaxed as salary
(State Industrial
Commission)
Social Security 6.26% of salary
benefits paid by
employee and Orange
Coun
Unemployment
Insurance taxes paid
on employee's
sa/a ?
Retirement benefits 4.88% of salary
paid by both
employee and
em to er
Medicare taxes 1.45% of salary
401 k contribution $50/month
12 weeks of coverage Health insurance $405.64-
required by federal premiums for length $827.50/month if
regulations-- Family and of absence time loss extends
Medical Leave Act. be and 12 weeks
Dental insurance $24.30/month
premiums
Vacation, sick, Varies
personal and petty
leave accrues
Orange County Personnel Ordinance Issue Date: August 22, ~"
2005
Article IV
Employee Benefits
1.0 Worker's Compensation Leave
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.
Article IV -Page 3