FY 24-26 ADOPTED BUDGET

Workers ’ Compensation

770.8220

Division Description The City's Human Resources Division serves as the City's Workers ’ Compensation Program (the Program) Manager and is responsible for managing the Program and the Third - Party Administrator (TPA), who handles the day - to - day workers ’ compensation claim administration. The Human Resources Team coordinates all aspects of the Program with the TPA, which includes reporting of injuries; providing lost time and salary information; training for managers, supervisors, and other employees; early return to work programs; claimant service evaluations; and maintenance of the City's medical, exposures, and workers' compensation claims files. The City of Morgan Hill is currently a member of the Local Agency Workers ’ Compensation Excess Joint Powers Authority (LAWCX) for the purpose of obtaining and pooling excess workers' compensation coverage. Under this arrangement, the City maintains a self insured retention of $250,000 of each claim and excess coverage with statutory limits, up to $5 million. FY 2022 - 23 and 2023 - 24 Accomplishments • Continued to offer ergonomic evaluations to new employees and to employees who changed workstations. • Met quarterly with TPA to review open claims including ascertaining status and to develop appropriate action plans. • For FY 2022 - 23, successfully resolved and closed 18 open indemnity claims. • For FY 2023 - 24, as of April 9, 2024, successfully resolved and closed eight open indemnity claims. • For FY 2022 - 23 saw a decrease in the total number of claims reported from 16 to 10, as well as a decrease in severity of these new claims. • For FY 2022 - 23 there was a decrease in the average number of lost days on new claims from 100 days to 21 days.

310 INTERNAL SERVICE FUNDS/MISCELLANEOUS PROGRAMS