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OSHA Inspections Reduce Workers’ Compensation Claims, Increase Company Profits

The presence of inspectors from the Occupational Safety and Health Administration at the doorstep is usually a cause for alarm for most Georgia employers.However, that may not be necessary. According to a new analysis, regular inspections by the Occupational Safety and Health Administration helps employers reduce their workers’ compensation claim costs, and may actually improve their bottom lines.

The research was co-authored by professors from Harvard Business School and the Haas School of Business at the University of California-Berkeley and Boston University. The researchers examined a number of workplace safety inspections that were conducted by the California branch of the Occupational Safety and Health Administration, and focused on the impact of these inspections on workers’ compensation claims and costs.

The study, titled Randomized Government Safety Inspections Reduce Worker Injuries with No Detectable Job Loss, found that when the Occupational Safety and Health Administration conducted safety inspections, it actually reduced the number of injuries that occurred in the workplace.Obviously, a reduced number of injuries also led to a reduced cost of workers’ compensation claims.

The analysis also did not find that there was any harm to the company’s profits as a result of these inspections.In fact, the researchers say that frequent inspections by the Occupational Safety and Health Administration could actually help boost a company’s profits, because the company is spending less on work comp claims.

In the analysis, researchers found that in certain high-risk industries in California that had high numbers of workplace injuries, the workplaces that were placed under regular inspections by the federal agency managed to reduce their worker’s compensation claims by approximately 39.4%.These companies also managed to save a staggering 26% on workers compensation costs in the 4 years after the OSHA inspectors came calling.On average, researchers found that companies that had been put through the inspections were able to save as much as $355,000.These would be welcomed dollars to Georgia businesses, many of which are struggling in this down economy.

The Occupational Safety and Health Administration welcomed the results of this research.According to administrator David Michaels, the results of the study mirror the message he has been trying delivering employers.

Employers should be looking closely at the results of the study.As the study indicates, it makes clear business sense for employers to be investing in work place safety, and looking forward to inspections by the Occupational Safety and Health Administration.

The Atlanta workers compensation lawyers at Katz Stepp Wright & Fleming LLC represent persons injured in workplace accidents across the state of Georgia, including Rome, Macon, Savannah, Columbus, and Albany.If you or a loved one has been injured in a workplace accident, call our office today at (404) 240-0400 to speak with an experienced lawyer.