by Grant Davis | Business Insurance, Insurance, OSHA
OSHA Drug Testing Memorandum and Incentive Program Rules
The Occupational Safety and Health Administration (OSHA) has issued a memorandum that reinterprets how its 2016 anti-retaliation rule applies to workplace safety incentive programs and drug testing policies. GDI Insurance Agency, Inc. is your source for OSHA compliance program for your business. Contact us today 1-209-634-2929 to Experience the GDI Difference.
Issued on Oct. 11, 2018, the memorandum eases some of the restrictions in OSHA’s previous enforcement guidance on the final rule. In that guidance, OSHA indicated that certain types of programs and policies would likely be considered violations if they involved specified circumstances.
The new OSHA Drug Testing memorandum takes a more permissive approach. It indicates that most types of workplace safety incentive programs and drug testing policies are allowable, as long as employers ensure that they do not discourage or penalize employees for reporting.

Highlights of The OSHA Drug Testing Memorandum
- OSHA’s 2016 final rule does not prohibit workplace safety incentive programs or post-incident drug testing.
- Incentive and testing programs must not discourage employees from reporting work-related injuries.
- Employers should consistently enforce legitimate work rules regardless of any injury reports.

What Actions Do You Need To Take?
Employers should become familiar with OSHA’s new drug testing memorandum and review their safety incentive programs and drug testing policies to ensure compliance.
2018 OSHA Drug Testing Memorandum
On Oct. 11, 2018, OSHA issued a memorandum that replaces any portions of the 2016 guidance that are inconsistent with it. In the 2018 memorandum, OSHA:
- Recognizes that many workplace safety incentive programs and instances of post-incident drug testing are intended to promote workplace safety and health;
- Advises employers that offer incentive programs that they may avoid violations by consistently enforcing legitimate work rules regardless of whether an injury or illness is reported; and
- Establishes that an action taken under a safety incentive program or post-incident drug testing policy does not violate the final rule unless an employer takes the action to penalize an employee for reporting a work-related injury or illness rather than to promote workplace safety and health.
Workplace Safety and Health Incentive Programs

OSHA directly addresses two types of workplace safety incentive programs in the 2018 memorandum.
- The first type of program is one that rewards employees for reporting near misses or hazards, or encourages them to get involved in a safety and health management system. According to OSHA, positive action taken under this type of program is always permissible under the final rule.
- The other type of incentive program is one that is rate-based and focuses on reducing the number of reported injuries and illnesses. This includes programs that reward employees with a prize or bonus at the end of an injury-free month or evaluate managers based on their work unit’s lack of injuries.
According to OSHA, rate-based incentive programs are also permissible under the final rule as long as they are not implemented in a manner that discourages reporting. More specifically, an employer may avoid violating the final rule through a rate-based incentive program by:
- Taking positive steps to create a workplace culture that emphasizes safety, not just rates; and
- Implementing adequate precautions to ensure that employees feel free to report an injury or illness.
In addition, an employer may counterbalance any unintentional deterrent effect of a rate-based incentive program on employee reporting by including elements such as:
- Rewards for identifying unsafe conditions in the workplace;
- An employee training program that reinforces reporting rights and responsibilities, and emphasizes the employer’s policy against retaliation; and
- A mechanism for accurately evaluating employees’ willingness to report injuries and illnesses.
Workplace Drug Testing Policies
The 2018 memorandum states that most instances of post-incident drug testing are permissible under the final rule and includes examples of allowable testing. Drug testing to evaluate the root cause of a workplace incident that harmed or could have harmed employees is one of the examples. This is significant because OSHA’s previous guidance indicated that a drug testing policy would have violated the final rule if it included automatic drug testing of an employee who reports a work-related injury or illness.
The new memorandum clarifies that if an employer chooses to use drug testing to investigate an incident, the employer should test all employees whose conduct could have contributed to the incident, not just employees who reported injuries.
Other examples of permissible drug testing that OSHA lists in the memorandum include:
- Random drug testing;
- Drug testing unrelated to the reporting of a work-related injury or illness;
- Drug testing under a state workers’ compensation law; and
- Drug testing under other federal law, such as a U.S. Department of Transportation rule.
More Information
Contact GDI Insurance Agency, Inc. or visit OSHA’s website for more information regarding safety incentive and post-incident drug testing programs.
California’s Leader in Insurance and Risk Management

As one of the fastest growing agencies in California, GDI Insurance Agency, Inc. is able to provide its clients with the latest and greatest of what the insurance industry has to offer and much, much more.
We are headquartered in Turlock, CA, with locations across the heart of California’s Central Valley and beyond to provide a local feel to the solutions and services we provide our clients. We pride ourselves on exceeding our client’s expectations in every interaction to make sure that our client’s know how much we value and appreciate their business. Contact us today 1-209-634-2929 for your comprehensive insurance quote!
by Grant Davis | Insurance, OSHA, Risk Management, Workers Compensation
What Are California Employer OSHA Responsibilities?
Navigating California Employer OSHA responsibilities and workplace safety laws and regulations can be overwhelming. You can download our California Employer OSHA Workplace Safety Regulation Manual here! You can use this guide to become familiar with the basics. It will help you build a foundation of knowledge on state expectations for mitigating on-the-job hazards.
By knowing California employer OSHA laws, you can effectively reduce your risk of liability. Though this manual covers many areas, it is not meant to be exhaustive or construed as legal advice. It also may not address all compliance issues with federal, state and local laws. Use the California Workplace Safety Regulations Guide as a reference, but contact GDI Insurance Agency, Inc. at 209-634-2929 or legal counsel to discuss compliance requirements or to ask questions about material covered here.
What Do I Need To Report Under OSHA Regulations?
Occupational illness (any abnormal condition or disorder caused by exposure to environmental factors associated with employment, including acute and chronic illnesses or diseases caused by inhalation, absorption, ingestion or direct contact) and occupational injury (serious injury, illness or death of an employee occurring in his or her place of employment or in direct connection with employment) must be reported under California Employer OSHA regulations.

California Employer OSHA defines “serious injury or illness” as any injury or illness occurring in a place of employment or in connection with any employment that results in:
- Inpatient hospitalization for more than 24 hours (for other than medical observation);
- An employee suffering a loss of any member of the body;
- An employee suffering any serious degree of permanent disfigurement;
- Death;
- Days away from work;
- Restricted work or transfer to another job;
- Medical treatment beyond first aid; or
- Loss of consciousness.
You must also consider a case to meet the general recording criteria if it involves a significant injury or illness diagnosed by a physician or other licensed health care professional even if it does not result in death, days away from work, restricted work or job transfer, medical treatment beyond first aid or loss of consciousness.
Who must file the report?
According to California statute, both employers and attending physicians must report occupational illnesses or injuries to Cal/OSHA. By regulation, reporting duties fall on the employer.
Where should the report be sent?
By statute, reports go to the Division of Labor Statistics and Research section of the Department of Industrial Relations for uninsured employers, and directly to the insurer where applicable for those that are insured. However, by regulation, reports go to the closest Division of Occupational Safety and Health office.
What is the reporting timeframe?
For a significant injury, physicians must file a report with the employer, and the employer must report recordable incidents to the Department of Industrial Relations within five days of receipt of physician’s report.
Employers must immediately report to the nearest District Office of the Division of Occupational Safety and Health any serious injury/illness or death of an employee occurring in a place of employment or in connection with any employment. “Immediately” means as soon as practically possible but not longer than eight hours after the employer knows or with diligent inquiry would have known of the death or serious injury/illness. If the employer can demonstrate that exigent circumstances exist, the time frame for the report may be extended to 24 hours after the incident.
Every workers’ compensation insurer must conduct a review, including a written report as specified below, of the workplace injury and illness prevention program (IIPP)of each of its insureds with an experience modification of 2.0 or greater within six months of the beginning of the initial insurance policy term.
The review must determine whether the insured has implemented all of the required components of the IIPP and evaluate their effectiveness. The training component of the IIPP must be evaluated to determine whether training is provided to line employees, supervisors and upper level management, and effectively imparts the information and skills each of these groups needs to ensure that all of the insured’s specific health and safety issues are fully addressed. The reviewer must also prepare a detailed written report specifying the findings of the review and all recommended changes deemed necessary to make the IIPP effective. The reviewer must be, or work under the direction of, a licensed California professional engineer, certified safety professional or a certified industrial hygienist.
Are there other notable reporting requirements unique to California?
California statute states that physicians attending to injured or ill employees must file a report with the employer or, if insured, with the insurer.
What Are California Employer OSHA Recordkeeping Requirements
Are employers required to keep record of all incidents resulting in occupational injury and/or illness? Yes
OSHA 300 Form required where applicable?
*Cal/OSHA Form 300 may be used instead of federal form? Yes*
OSHA 300A Form required where applicable?
*Cal/OSHA Form 300A may be used instead of federal form? Yes*
What are the Cal/OSHA requirements for determining whether an injury is recordable
Requirements are the same as the federal standards.
How long do employers have to keep these records?
Length of recordkeeping standards are the same as the federal standards.
Are there other notable recordkeeping requirements unique to California?
If employees, employee representatives or former employees want current or filed copies of any Cal/OSHA records, the employer must provide them by the next business day. If records for multi-establishment firms are stored in a central location, the employer must provide the phone number and address of the location where the documents are stored. There must be a staff member available during normal business hours to provide copies of the documents stored in the central location.
California OSHA Notice Posting Requirements
What workplace posters must employers in California post?
In addition to federal posting requirements and industry-specific requirements from the Industrial Welfare Commission, California employers must display the following workplace posters:
- Industrial Welfare Commission (IWC) Wage Orders
- State Minimum Wage
- Payday Notice
- Safety and Health Protection on the Job
- Emergency Phone Numbers
- Notice to Employees – Injuries Caused by Work
- Notice of Workers’ Compensation Carrier and Coverage
- Whistleblower Protections
- No Smoking
- Farm Labor Contractor Statement of Pay Rates (farm labor contractors only)
- Prevailing Wage Rate Determinations (public works awarding bodies and contractors only)
- Access to Medical and Exposure Records (employers using hazardous or toxic substances only)
- Operating Rules for Industrial Trucks (only employers operating forklifts and other industrial trucks or tow tractors)
What signage is required in areas where smoking is prohibited by law?
Entrances of smoke-free buildings must have a sign reading “No Smoking” or “Smoking is prohibited except in designated areas.”
Do employers have to post their citations illustrating violation of Cal/OSHA or other state labor laws?
California employers are required to post Cal/OSHA orders to take action, and they also must post citations and notices indicating an inspection occurred and resulted in no violations. These postings must remain for three days or until violations are corrected, whichever is longer.
Are there any other notable posting requirements unique to California?
Employers must post a sign at the location where any asbestos-related work is to take place stating “Danger – Asbestos. Cancer and Lung Hazard. Keep Out.” Employers in certain additional industries may have special posting requirements.
California’s Leader in Insurance and Risk Management
As one of the fastest growing agencies in California, GDI Insurance Agency, Inc. is able to provide its clients with the latest and greatest of what the insurance industry has to offer and much, much more.
With locations across the heart of California’s Central Valley and beyond to provide a local feel to the solutions and services we provide our clients. We pride ourselves on exceeding our client’s expectations in every interaction to make sure that our client’s know how much we value and appreciate their business. Contact us today 1-209-634-2929 for your comprehensive business insurance quote!
by Grant Davis | Insurance, OSHA, Risk Management, Safety Tips, Workers Compensation
Safety & Health Recordkeeping
No operation can be successful without adequate safety and health recordkeeping, which enables you to learn from past experience and make corrections for future operations. Records of accidents, work-related injuries, illnesses and property losses serve as a valuable purpose.
Under Cal/OSHA recordkeeping requirements, all information on accidents is gathered and stored. Upon review, causes can be identified and control procedures instituted to prevent the illness or injury from recurring. Keep in mind that any inspection of your workplace may require you to demonstrate the effectiveness of your program.
Download Our Full Guide to Developing a Workplace Injury and Illness Prevention Program!

Injury & Illness Records
Injury and illness recordkeeping requirements under Cal/OSHA require a minimum amount of paperwork.
These records give you one measure for evaluating the success of your safety and health activities: success would generally mean a reduction or elimination of employee injuries or illnesses during a calendar year.
Five important steps are required by the Cal/OSHA recordkeeping system:
- Each employer (unless exempt by size or industry) must record each fatality, injury or illness that is work-related, is a new case, or meets one or more of the general recording criteria specified in Title 8, Section 14300.
- Record each injury or illness on the Cal/OSHA Log of Occupational Work Related Injuries and Illnesses (Form 300) according to its instructions.
- Prepare an Injury and Illness Incident Report (Form 301), or equivalent.
- Annually review and certify the Cal/OSHA Form 300 and post the Summary of Work-Related Injuries and Illnesses (Form 300A) no later than February 1 and keep it posted where employees can see it until April 30.
- Maintain the last five years of these records in your files.NOTE: Additional information on recordkeeping can be found on the Internet at: www.californiaosha.info or www.dir.ca.gov/DOSH
During the year, regularly review these records to see where your injuries and illnesses are occurring. Look for any patterns or repeat situations. These records can help you identify hazardous areas in your workplace and pinpoint where immediate corrective action is needed.
Since the basic Cal/OSHA records are for reportable injuries and illnesses only, you might expand your system to include all incidents relating to workplace safety and health, even those where no injury or illness resulted. Such information can assist you in pinpointing unsafe acts, conditions or procedures.
Exposure Records
Injury and illness records may not be the only records you need to maintain. Cal/ OSHA standards concerning toxic substances and hazardous exposures require records of employee exposure to these substances and sources, physical examination reports, employment records, and other information.
Employers using any regulated carcinogens have additional reporting and recordkeeping requirements. See Title 8 of the California Code of Regulations for details.
Documentation of Your Activities
Essential records, including those legally required for workers’ compensation, insurance audits and government inspections must be maintained for as long as required.
For most employers, Cal/OSHA standards also require that you keep records of steps taken to establish and maintain your Injury and Illness Prevention Program. They must include:
- Records of scheduled and periodic inspections as required by the standard to identify unsafe conditions and work practices. The documentation must include the name of the person(s) conducting the inspection, the unsafe conditions and work practices identified, and the action taken to correct the unsafe conditions and work practices. The records are to be maintained for at least one year. However, employers with fewer than 10 employees may elect to maintain the inspection records only until the hazard is corrected.
- Documentation of safety and health training required by standards for each employee. The documentation must specifically include employee name or other identifier, training dates, type(s) of training and the name of the training provider. These records must also be kept for at least one year, except that training records of employees who have worked for less than one year for the employer need not be retained beyond the term of employment if they are provided to the employee upon termination of employment.
Also, employers with fewer than 10 employees can substantially comply with the documentation provision by maintaining a log of instructions provided to the employee with respect to the hazards unique to the employees’ job assignment when first hired or assigned new duties. Some relief from documentation is available for employers with fewer than 20 employees who are working in industries that are on the Department of Industrial Relations (DIR’s) designated list of low-hazard industries, and for employers with fewer than 20 employees who are not on DlR’s list of high-hazard industries and who have a Workers’ Compensation Experience Modification Rate of 1.1 or less.
For these industries, written documentation of the Injury and Illness Prevention Program may be limited to:
- Written documentation of the identity of the person or persons with authority and responsibility for implementing the program;
- Written documentation of scheduled periodic inspections to identify unsafe conditions and work practices; and
- Written documentation of training and instruction.
Keeping such records fulfills your responsibilities under General Industry Safety Order 3203. It also affords an efficient means to review your current safety and health activities for better control of your operations and to plan future improvements.
California’s Leader in Insurance and Risk Management

As one of the fastest growing agencies in California, GDI Insurance Agency, Inc. is able to provide its clients with the latest and greatest of what the insurance industry has to offer and much, much more.
With locations across the heart of California’s Central Valley and beyond to provide a local feel to the solutions and services we provide our clients. We pride ourselves on exceeding our client’s expectations in every interaction to make sure that our client’s know how much we value and appreciate their business. Contact us today 1-209-634-2929 for your comprehensive California workers compensation insurance quote!
by Grant Davis | Business Insurance, GDI Insurance, Insurance, OSHA, Workers Compensation
Safety Communications and Your Injury and Illness Prevention Program
In California every employer has a legal obligation to provide and maintain a safe and healthful workplace for employees, according to the California Occupational Safety and Health Act of 1973. As of 1991, a written, effective Injury and Illness Prevention (IIP) Program is required for every California employer. Safety Communications plays a big role in this requirement.
Your GDI Insurance Agency, Inc Broker can help you create and keep your IIP Program free of charge. We then will coordinate this plan with your OSHA compliant safety program, which your GDI Insurance Agency Broker will also help you create, manage and implement free of charge.
These programs, besides being required, if used correctly with the help of your GDI broker will help you keep the cost of your workers compensation insurance and modification factor down.

Safety Communications
Your Injury and Illness Prevention Program must include a system for safety communications with employees – in a form readily understandable by all affected employees – on matters relating to occupational safety and health, including provisions designed to encourage employees to inform the employer of hazards at the worksite without fear of reprisal.
- While this section does not require employers to establish labor-management safety and health committees, it is an option you should consider. If you choose to do so, remember that employers who elect to use a labor-management safety and health committee to comply with the safety communications requirements are presumed to be in substantial compliance if the committee: Meets regularly but not less than quarterly.
- Prepares and makes available to affected employees written records of the safety and health issues discussed at the committee meetings, and maintained for review by the Division upon request.
- Review results of the periodic scheduled worksite inspections.
- Reviews investigations of occupational accidents and causes of incidents resulting in occupational injury, occupational illness or exposure to hazardous substances, and where appropriate, submits suggestions to management for the prevention of future incidents.
- Reviews investigations of alleged hazardous conditions brought to the attention of any committee member. When determined necessary by the committee, it may conduct its own inspection and investigation to assist in remedial solutions.
- Submits recommendations to assist in the evaluation of employee safety suggestions.
- Upon request of the Division, verifies abatement action taken by the employer to abate citations issued by the Division.
If your employees are not represented by an agreement with an organized labor union, and part of your employee population is unionized, the establishment of labor management committees is considerably more complicated. You should request clarification from the Cal/OSHA Consultation Service.
If you elect not to use labor management safety and health committees, be prepared to formalize and document your required system for communicating with employees.
Here are some helpful tips on complying with this difficult section:
- Your communication system must be in a form that is “readily understandable by all affected employees.” This means you should be prepared to communicate with employees in a language they can understand, and if an employee cannot read in any language, you must communicate with him/her orally in a language that is “readily understandable.” Your communication system must be “designed to encourage employees to inform the employer of hazards at the workplace without fear of reprisal.” It must be a two-way system of communication.
- Schedule general employee meetings at which safety is freely and openly discussed by those present. Such, meetings should be regular, scheduled and announced to all employees so that maximum employee attendance can be achieved. Remember to do this for all shifts. Many employers find it cost effective to hold such meetings at shift-change time, with a brief overlap of schedules to accomplish the meetings. If properly planned, effective safety meetings can be held in a 15- to 20-minute time frame. Concentrate on:Occupational accident and injury history at your own worksite, with possible comparisons to other locations in your company.Feedback from the employee group.Guest speakers from your worker’s compensation insurance carrier or other agencies concerned with safety.- Brief audio-visual materials that relate to your industry.
– Control of the meetings.
– Stress that the purpose of the meeting is safety.
– Members of management should attend this meeting.
- Training programs are excellent vehicles for communicating with employees.
- Posters and bulletins can be very effective ways of communicating with employees. Useful materials can be obtained from Cal/OSHA, your workers’ compensation insurance carrier, the National Safety Council or other commercial and public service agencies.
- Newsletters or similar publications devoted to safety are also very effective communication devices. If you cannot devote resources to an entire publication, make safety a featured item in every issue of your company newsletter.
- A safety suggestion box can be used by employees, anonymously if desired, to communicate their concerns to management.
- Publish a brief company safety policy or statement informing all employees that safety is a priority issue with management, and urge employees to actively participate in the program for the common good of all concerned. (Model policy, statements are found in Appendix A.)
- Communicate your concerns about safety to all levels of management.
- Document all communication efforts, as you will be required to demonstrate that a system of effective communication is in place.
Safety Planning, Rules & Work Procedures
Planning for safety and health is an important part of every business decision, including purchasing, engineering, changes in work processes, and planning for emergencies. Your safety and health planning are effective when your workplace has:
- Rules written to apply to everyone and addressing areas such as personal protective equipment, appropriate clothing, expected behavior, and emergency procedures. You and your employees should periodically review and update all rules and procedures to make sure they reflect present conditions. Rules and procedures should be written for new exposures when they are introduced into the workplace.
- Safe and healthful work practices developed for each specific job.
- Discipline or reward procedures to help assure that safety rules and work procedures are put into practice and enforced. Reward or positive reinforcement procedures such as bonus, incentive or employee recognition programs should provide positive motivation for compliance with safety rules and procedures.
- A written plan for emergency situations. Your plan must include a list of emergencies that could arise and a
set of procedures in response to each situation. Some emergency procedures, such as those covering medical emergencies or fire evacuation, are mandated by Cal/OSHA regulations.
- If you have operations involving hazardous substances, procedures or processes, you must designate emergency response teams to be specifically trained and equipped to handle possible imminent hazards.
Safety & Health Training
Training is one of the most important elements of any IIP Program. It allows employees to learn their jobs properly, brings new ideas into the workplace, reinforces existing ideas and practices and puts your program into action.
Your employees benefit from safety and health training, including safety communications, through fewer work-related injuries and illnesses and reduced stress and worry caused by exposure to hazards.
You benefit from reduced workplace injuries and illnesses, increased productivity, lower costs, higher profits and a more cohesive and dependable work force.
An effective IIP Program includes training for both supervisors and employees. Training for both is required by Cal/OSHA safety orders.
You may need outside professionals to help you develop and conduct your required training program. Help is available from the Cal/ OSHA Consultation Service, your workers’ compensation insurance carrier, private consultants and vendor representatives.
Outside trainers should be considered temporary. Eventually you will need your own in-house training capabilities so you can provide training that is timely and specific to the needs of your workplace and your employees.
To be effective and also meet Cal/OSHA requirements, your training program needs to:
- Let your supervisors know:
o They are key figures responsible for establishment and success of your Injury and Illness Prevention Program.
o The importance of establishing and maintaining safe and healthful working conditions.
o They are responsible for being familiar with safety and health hazards to which their employees are exposed, how to recognize them, the potential effects these hazards have on the employees, and rules, procedures and work practices for controlling exposure to those hazards.
o How to convey this information to employees by setting good examples, instructing them, making sure they fully understand and follow safe procedures.
o How to investigate accidents and take corrective and preventive action.
- Let your employees know:
o The success of the company’s Injury and Illness Prevention Program depends on their actions as well as yours.
o The safe work procedures required for their jobs and how these procedures protect them against exposure.
o When personal protective equipment is required or needed, how to use it and maintain it in good condition.
o What to do if emergencies occur in the workplace.
Keeping Your Employees Informed
An effective IIP Program requires proper job performance by everyone in the workplace. As the employer, you must ensure that all employees are knowledgeable about the materials and equipment they are working with, what known hazards are present and how they are controlled.
Each employee needs to understand that:
- No employee is expected to undertake a job until he/she has received instructions on how to do it properly and safely, and is authorized to perform the job.
- No employees should undertake a job that appears to be unsafe.
- No employee should use chemicals without fully understanding their toxic properties and without the knowledge required to work with them safely.
- Mechanical safeguards must always be in place and kept in place.
- Employees are to report to a superior or designated individual all unsafe conditions encountered during work.
- Any work-related injury or illness suffered, however slight, must be reported to management at once.
- Personal protective equipment must be used when and where required, and properly maintained.
Your supervisors must recognize that they are the primary safety trainers in your organization. Encourage and help them by providing supervisory training. Many community colleges offer management training courses at little or no cost.
You as the employer are required under Cal/ OSHA standards to establish and carry out a formal training program. A professional training person, an outside consultant or your supervisors may provide injury and illness prevention training to your employees.
This program must, at a minimum, provide training and instruction:
- To all employees when your program is first established.
- To all new employees.
- To all employees given new job assignments for which training has not been previously received.
- Whenever new substances, processes, procedures or equipment are introduced to the workplace and present a new hazard.
- Whenever you or your supervisors are made aware of a new or previously unrecognized hazard.
- For all supervisors to assure they are familiar with the safety and health hazards to which employees under their immediate direction and control may be exposed.

California’s Leader in Insurance and Risk Management
As one of the fastest growing agencies in California, GDI Insurance Agency, Inc. is able to provide its clients with the latest and greatest of what the insurance industry has to offer and much, much more.
Experience the GDI Insurance Agency, Inc. Difference
With locations across the heart of California’s Central Valley and beyond to provide a local feel to the solutions and services we provide our clients. We pride ourselves on exceeding our client’s expectations in every interaction to make sure that our client’s know how much we value and appreciate their business.
Contact us today 1-209-634-2929 for your comprehensive workers compensation insurance quote!
by Grant Davis | Cost Reduction, Insurance, OSHA, Workers Compensation
Why Have a Workplace Injury and Illness Prevention Program (IIP)
Taking risks is a part of running a business, particularly for small business owners. You take risks in product development, marketing and advertising in order to stay competitive. Some risks are just not worth the gamble. One of these is risking the safety and health of those who work for you. This is one reason why you need to have a workplace injury and illness prevention program in place.
ACCIDENTS COST MONEY
Safety organizations, states, small business owners and major corporations alike now realize that the actual cost of a lost workday injury is substantial. For every dollar you spend on the direct costs of a worker’s injury or illness, you will spend much more to cover the indirect and hidden costs.
Consider what one lost workday injury would cost you in terms of:
- Productive time lost by an injured employee;
- Productive time lost by employees and supervisors attending the accident victim;
- Clean up and start up of operations interrupted by the accident;
- Time to hire or to retrain other individuals to replace the injured worker until his/her return;
- Time and cost for repair or replacement of any damaged equipment or materials;
- Cost of continuing all or part of the employee’s wages, in addition to compensation;
- Reduced morale among your employees, and perhaps lower efficiency; increased workers’ compensation insurance rates; and
- Cost of completing paperwork generated by the incident.
CONTROLLING LOSSES
If you would like to reduce the costs and risks associated with workplace injuries and illnesses, you need to address safety and health right along with production.
Setting up an Illness and Injury Prevention Program helps you do this. In developing the program, you identify what has to be done to promote the safety and health of your employees and worksite, and you outline policies and procedures to achieve your safety and health goals.
CAL/OSHA IIP PROGRAM
In California, every employer is required by law (Labor Code Section) to provide a safe and healthful workplace for employees. Title 8 (T8) of the California Code of Regulations (CCR), requires every California employer to have an effective Injury and Illness Prevention Program in writing that must be in accord with T8 CCR Section 3203 of the General Industry Safety Orders.
Additional requirements in the following T8 CCR Safety Order Sections address specific industries:
- Construction—Section 1509;
- Petroleum—Sections 6507, 6508, 6509, 6760, 6761, 6762;
- Ship Building, Ship Repairing, Ship Breaking—Section 8350; and
- Tunnels—Section 8406.
WHAT IS AN IIP PROGRAM?
Your IIP Program must be a written plan that includes procedures and is put into practice.
These elements are required:
- Management commitment/assignment of responsibilities;
- Safety communications system with employees;
- System for assuring employee compliance with safe work practices;
- Scheduled inspections/evaluation system;
- Accident investigation;
- Procedures for correcting unsafe/ unhealthy conditions;
- Safety and health training and instruction; and
- Recordkeeping and documentation.
MANAGEMENT COMMITMENT/ASSIGNMENT OF RESPONSIBILITIES
Your commitment to safety and health shows in every decision you make and every action you take. Your employees will respond to that commitment.
The person or persons with the authority and responsibility for your safety and health program must be identified and given management’s full support. You can demonstrate your commitment through your personal concern for employee safety and health and by the priority you place on these issues.
If you want maximum production and quality, you need to control potential workplace hazards and correct hazardous conditions or practices as they occur or are recognized.
You must commit yourself and your company by building an effective Injury and Illness Prevention Program and integrating it into your entire operation.
This commitment must be backed by strong organizational policies, procedures, incentives, and disciplinary actions as necessary to ensure employee compliance with safe and healthful work practices.
They should include:
- Establishment of workplace objectives for accident and illness prevention, like those you establish for other business functions such as sales or production, e.g., “ten percent fewer injuries next year” or “reduce down-time due to poorly maintained equipment.”
- Emphasis on your staff’s safety and health responsibilities and recognition by your supervisors and employees that they are accountable. Advise your management staff that they will be held accountable for the safety record of the employees working under them, and then back it up with firm action.
- A means for encouraging employees to report unsafe conditions with assurance that management will take action.
- Allocation of company resources (financial, material and personnel) for:
o Identifying and controlling hazards in new and existing operations and processes.
o Installing engineering controls.
o Purchasing personal protective equipment.
o Promoting and training employees in safety and health.
- Setting a good example. If, for instance, you require hard hats to be worn in a specific area, then you and other management must wear a hard hat in that area.
If you and your management team do not support and participate in the program, you are doomed to failure from the start. It is especially important for plant supervisors and field superintendents to set a good example.
If you and your management team do not support and participate in the program, you are doomed to failure from the start. It is especially important for plant supervisors and field superintendents to set a good example.
GDI Insurance Agency, Inc. IIP Program

GDI Insurance Agency, Inc. has created a “Guide To Developing Your Injury and Illness Prevention Program” manual to describe the employer’s responsibilities in establishing, implementing and maintaining an IIP Program. It also outlines steps that can be taken to develop an effective Program that helps assure the safety and health of employees while on the job.
Your GDI Insurance Agency, Inc Broker can help you create and keep your IIP Program free of charge. We then will coordinate this plan with your OSHA compliant safety program, which your GDI Insurance Agency Broker will also help you create, manage and implement free of charge.
These programs besides being required, if used correctly with the help of your GDI broker will help you keep the cost of your workers compensation insurance and modification factor down.
Contact us today at 1-888-991-2929!
by Grant Davis | Construction, GDI Insurance, Insurance, OSHA, Risk Management, Safety Tips
Keep Your Construction Site Safe with Ground Faults Protection
According to the National Institute of Safety and Health, the most frequently cited Occupational Safety and Health Administration (OSHA) electrical violation is improper grounding of equipment or circuits. This is especially troubling for construction managers in light of the fact that construction workers suffer more electrical burns and fatal electrical injuries than workers in all other industries combined. Each incident carries significant costs in terms of lost time and resources and increases the employer’s risk of costly lawsuits. The most unfortunate aspect of this threat is that many of these accidents could have been prevented with the implementation of proper ground fault protection practices.
GDI Insurance Agency, Inc. provides California contractors insurance solutions specifically-tailored for construction businesses.
We include the following for our clients:
OSHA Regulations

OSHA requires employers to provide at least one of the following:
- Ground fault circuit interrupters (GFCIs) on construction sites for receptacle outlets in use and not part of the permanent wiring of the building or structure
- A scheduled and recorded Assured Equipment Grounding Conductor Program (AEGCP), covering all cord sets, receptacles not part of the permanent wiring of the building, and equipment connected by cord and plug

About GFCIs
Grounding a tool or electrical system involves creating a low-resistance electrical path that connects to the earth. A ground-fault occurs in a tool or electrical system when there is a break in this low-resistance grounding path. The electrical current may then take an alternative path to the ground through the user, resulting in serious injuries or death. GFCIs automatically limit or stop the flow of current in the event of a ground fault, overload or short circuit in the wiring system. They operate by monitoring the amount of current going into electric equipment and the amount of current flowing out along the circuit conductors. If the difference exceeds 5 milliamperes, the device automatically shuts off the power to prevent injury.
About AEGCPs
The OSHA-approved alternative to using GFCIs on a construction site is an AEGCP, which is a regimented system for testing electrical tools and extension cords to assure their proper ground fault protection. If an AEGCP is used in place of GFCIs for ground fault protection, the following minimum requirements apply:
- Keep a written description of the program at the jobsite. Outline specific procedures for the required equipment inspections, tests and test schedule, and make them available to OSHA and to affected persons upon demand.
- Designate one or more competent persons to implement the program. OSHA defines a competent person as someone who is qualified to identify hazards and authorized to take prompt corrective measures.
- Visually inspect all cord sets, attachment caps, plugs and receptacles, and any equipment connected by cord and plug, before use each day. If you see any external damage—such as deformed or missing pins, or damaged insulation—or discover internal damage, take the equipment out of use until it is repaired.
- Perform two OSHA-required tests on all electrical equipment, a continuity test, and a terminal connection test. These tests are required under the following circumstances:
- Before first use
- After any repairs, and before placing back in service
- After suspected damage, and before returning to use
- Every 3 months
- Maintain a written record of the required tests, identifying all equipment that passed the test and the last date it was tested (or the testing interval). Like the program description, make it available to OSHA inspectors and affected persons upon demand.
Using GFCIs in Conjunction with AEGCPs
Although OSHA permits the use of an AEGCP in lieu of GFCIs, it would be a mistake to view the choice as strictly an either/or proposition. The best course of action is to use GFCIs in conjunction with an Assured Equipment Grounding Conductor Program. Taking this step will not eliminate the possibility of a costly electrical accident on the worksite, but it will significantly reduce the risk of injury or death due to ground faults.
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