Leaders need to pay attention to these workplace health and safety trends - Part 2

5. Weight loss drugs

   The frenzy for weight loss drugs intensified in 2023 and has made its way into the workplace, with employees increasingly asking their employers about coverage for popular drugs, such as Wegovy. The high demand coupled with the obesity epidemic is forcing employers to consider offering these drugs, in addition to bariatric surgery and weight management programs.

   According to the NCCI, claims with an obesity comorbidity have 81 percent higher lost-time costs compared with claims involving non-obese injured workers. While obesity is recognized as a major impediment to recovery, some experts expect the work comp industry to resist drug coverage, while others say the popularity of the drugs will push them into the system. Since the drugs are relatively new, there is uncertainty about the side effects and the long-term effectiveness. Further, the costs are very high and there's concern that once a person stops the drug, they'll gain weight. The side effects and indefinite use are deterrents for payers.

   Takeaway: Obesity is associated with numerous health and safety risks as well as lower productivity. A healthy workforce can't be achieved without addressing the issue, however, there's no roadmap for the best approach. As employee attitudes and demands shift employers should prepare for pressure from employees to provide the drugs and monitor developments carefully. Some organizations are requiring employees to participate in lifestyle modification programs as a prerequisite for coverage and others are placing limits on coverage in terms of either dollars or duration of treatment. Alternative approaches to providing weight loss benefits to employees, including psychology-based weight loss apps like Noom, which is known for its emphasis on behavior change and mental wellness, are also being offered.

6. Climate change

   With 2023 the hottest year on record, risk managers have been compelled to reevaluate heat safety practices for their workforce. These include indoor air quality assessments, ventilation, additional water or rest stations, work schedules, worker training and monitoring, and cooling centers. Federal and state agencies have stepped up enforcement efforts and prevention guidelines.

   In addition to heat, the rising frequency of severe weather events such as wildfires, hurricanes, and flooding have businesses prioritizing climate resilience planning to mitigate the impacts. This process involves assessing vulnerabilities, developing response plans, and investing in infrastructure to withstand climate-related hazards. Recovery workers who are working in hazardous environments and are exposed to heat-related illnesses, carbon monoxide poisoning, mold, fatigue, respiratory issues, slip and fall hazards, unstable structures, and electrical issues need to have proper equipment and training.

   Further, rules mandating that some large companies begin collecting and reporting climate-related data are emerging. A law passed last year in California and regulators are crafting new climate disclosure rules. And, perhaps most significantly, the U.S. Securities and Exchange Commission is expected to release a final version of its climate disclosure regulation.

   Takeaway: Climate-related hazards are real and the rising frequency in unexpected locations means its effects are being felt across many businesses in most industries. Employers need to have robust risk management programs to combat the worsening impact of a warming climate. Climate risks should be considered core business risks and the mitigation part of business strategy.

7. Forever chemicals

   While not new, the adverse health effects of perfluoroalkyl and polyfluoroalkyl substances, also known as PFAS or forever chemicals, are a growing concern in workers comp. While chemical manufacturing workers and firefighters were considered the most at risk, work comp experts say government policy changes and increased publicity are raising concerns in other industries, including construction, automotive, aerospace, and electronics. Although some have called it "the next asbestos," the causal connection between exposure and specific illnesses is less clear and its prevalence in the environment makes it more difficult to show a causal connection. Claim disputes are likely to be costly, as they will focus on the question - was the work exposure enough to connect the illness to the chemicals?

   In addition to growing work comp concerns, employers face increased regulation. The Environmental Protection Agency (EPA) has finalized a rule that will tighten the reporting requirements for facilities that use or release certain types of toxic "forever chemicals." States and the federal government are also moving to restrict or ban the most problematic of the chemicals.

   Takeaway: There's heightened awareness of the adverse effects of PFAS and enhanced safety protocols can help manage the risk. Businesses can take proactive measures such as conducting comprehensive risk evaluations to identify potential PFAS exposures and take preemptive measures to mitigate risks. Be sure that the inventory of all chemicals is kept up-to-date and employees know how to read and understand Safety Data Sheets (SDSs) for each hazardous chemical found on the job. Be able to document that training and proper controls have been implemented. Explore strategies to use safer alternatives to products containing PFAS and set timelines to phase out PFAS exposures.

8. Independent contractors and gig workers

   Ongoing issues in the gig worker economy are the employee or independent contractor debate and the push for more benefits and the battleground is the courts. The new DOL rule (see HR Tip) tightens worker classification standards, making it harder to classify workers as independent contractors, and immediately faced legal challenges.

   Seattle and New York City recently enacted laws designed to bring gig delivery drivers up to minimum wage by changing how workers are paid. They will be compensated on a time and distance basis or at a rate every time they are offered a job, rather than a per trip basis. In addition to taking legal action, gig companies have waged public campaigns against this approach. Other communities and states are watching this closely as they consider worker protection measures. California's top court agreed to hear Castellanos v. California, which will determine whether the 2020 ballot initiative, Prop 22, which allows gig-economy businesses to classify workers as independent contractors upended lawmakers' authority to create worker compensation laws.

   Takeaway: Businesses and worker advocates have clashed over this worker classification dilemma for years, creating legal uncertainty. Whether gig-worker claims come into the workers' comp system will continue to be played out in the courts, regulations, and elections.