What are the Advantages and Disadvantages of Salary Continuation
What is Salary Continuation?
Salary continuation allows an employer to pay an employee their full wages after a worker's comp claim. In order to initiate this salary continuation, the employer and employee must agree on the terms of the leave and fill out a form through the Ohio BWC. There are advantages and disadvantages with salary continuation for both the employer and the employee, and it is always best to consult with a third-party administrator before committing to the agreement.
What Are The Advantages Of Salary Continuation?
The best thing about salary continuation is that it expresses that the employer cares about the employee. They want their employee to be better as soon as possible, but while they are recovering, they shouldn't have to stress about money.
Another advantage to salary continuation is that the BWC might not be able to pay the employee their full wages whereas, with this agreement from the employer, they can receive their whole wage for that time.
The employer does not have to use salary continuation all the time. They can choose when they want to use it in cases when the claim is big enough, or the time off is long enough. Basically, the employer can use it whenever it works best for them and the employee.
Salary continuation also helps the employer stay in contact with their employee while they are out. This is beneficial so that the employer can know how the person is recovering and when they be able to return to work.
What Are The Disadvantages Of Salary Continuation?
One disadvantage of salary continuation is that some people are very comfortable sitting at home getting paid their full wages so they will be less inclined to go back to work as soon as they can.
Most third-party administrators and employers in group retro will abuse this because it could potentially help their refunds be better. When salary continuation is used in such a way and not set in the right culture at a company, it is misused.
Regardless, salary continuation for more than four weeks is really being misused.
Consult With Spooner About Your Potential Salary Continuation
An employer isn't necessarily the one who should be making this decision. A third-party administrator, such as Spooner, should always be doing an actuarial analysis of whether salary continuations are a good option or not for every claim. This way, the employer knows that they are making the right decision for their company's well-being including the specific employee and themselves.
If you are an Ohio employer who is working with a worker's comp claim and you are considering salary continuation for your employee, contact Spooner to make sure this is the best choice for both your company and your employee.