Updates to Washington’s Preferred Worker Program

Karen Forner

Washington State’s Department of Labor & Industries has updated incentives for returning injured workers to the job in modified, light duty positions. The Department administers the state’s Workers’ Compensation system directly through its State Fund system and indirectly by monitoring Self-Insured Employers.

In overseeing Washington’s Workers’ Compensation system, the Department emphasizes returning injured workers to work as quickly and safely as possible. To that end, it encourages employers to accommodate an injured worker’s medical restrictions while they are recovering by offering temporary light duty (TLD) opportunities. This keeps workers active and invested in their employment while allowing an employer to benefit from the worker’s productivity while limiting the cost of time-loss compensation (TLC) on the claim.

Returning an injured worker to their original position is the best outcome, but sometimes injury causes permanent impairment that prevents this. In this circumstance, the Department may authorize vocational retraining. Employers should make every effort to avoid this long and expensive process. Fortunately, employers have the option to offer a permanent modified duty position that accommodates a worker’s claim-related restrictions. Even better, the Department incentivizes employers to find such permanent accommodations through its Preferred Worker Program. Employer benefits from making a permanent modified duty job offer with preferred worker certification include:

  1. Waived Accident Fund and Medical Aid Fund premiums
    for the worker for three years for state fund employers.
  2. Costs of any new claims filed by the worker for three
    years are charged to the Second Injury Fund rather than
    the employer’s account, if State Fund.
  3. Reimbursement for 50% of wages up to 66 days or
    $10,000.
  4. Reimbursement for clothing, tools, and equipment.
  5. Possible one-time incentive payment of up to $10,000 if
    worker continuously employed for 12 months.

The clock begins running from the day the Preferred Worker starts work after receiving certification. These benefits can be substantial, particularly if the Preferred Worker suffers a significant further injury that renders him or her totally permanently disabled and eligible for a pension.

Until recently, the Employer of Injury for the claim resulting in Preferred Worker certification was barred from receiving Preferred Worker benefits. This meant very few employers could benefit from the program because other employers did not know if they were hiring Preferred Workers or not. Now, it is easier, but the process can still be complex.

First, the worker’s claim must be open or closed without a final order. This means employers need to move to take advantage of the Program as early in the claim as possible.

Second, the worker must meet criteria for the Program. Generally, the worker must be entitled to a permanent partial disability (PPD) award for their claim and receive permanent work restrictions that prevent return to the job of injury. The restrictions can prevent performance of an essential job duty, restrict the worker to a lighter work category, or make the worker eligible for vocational retraining.

Third, the Preferred Worker Request form must be completed and submitted to the Department. Employers can request Preferred Worker certification for one of their workers with an open claim. The form may be completed by a vocational provider and requires medical evidence that the worker cannot return to the job or injury, that the worker’s permanent restrictions are related to the claim, and that the worker is at or near maximum medical improvement.

Fourth, the employer must offer an appropriate job to the certified Preferred Worker. The job must be consistent with the Preferred Worker’s permanent restrictions and approved by the Worker’s treating provider and a vocational counselor. Copies of the approved job analysis and the accepted job offer must be submitted to the Department. Once the Department receives the necessary paperwork and approves the job, the three-year period begins.

You can hire Preferred Workers who received certification with a different employer, but the Worker must volunteer information about their certification. Inquiries regarding certification status could be considered discriminatory.

The Department’s updates to the Preferred Worker Program reflect its stated priorities in returning an injured worker to a job with their original employer when possible by allowing the employer of injury to benefit. It also makes it easier for workers and employers to get all the available information to get certification for a Preferred Worker and request benefits.