The cost of doing business with the WSIB has increased following new polices introduced effective December 1, 2010. Both employers and workers will find escalating costs for not cooperating with early and safe return-to-work programs. This is in response to concerns about the WSIB’s $12 billion unfunded liability (UFL) as raised in the 2009 Auditor General’s report. A Funding Review together with a modest 2 per cent increase to the average premium rates for both 2011 and 2012 have been introduced. The government of Ontario is supporting these initiatives by proposing legislation that would require the WSIB to be a fully funded system. It is suggested that so doing will make sure the UFL is eliminated, thereby ensuring the future financial security of the WSIB.
Policy Changes
Non-cooperation fines/penalties are applied when the WSIB is convinced “on a balance of probabilities” that a workplace party, either the employer or the worker, had knowledge of his or her obligation, had the capability to carry it out, and did not carry it out.
For a worker, an initial penalty reduces the worker’s wage loss benefits by 50% and is confirmed in writing. If the worker’s non-cooperation continues beyond the 14th calendar day following the date the written notice comes into effect, the WSIB suspends the worker’s wage loss benefits completely. Where a worker is on a Work Transition program plan (Labour Market Re-Entry), the plan may be discontinued entirely.
Similarly, for an employer found in non-cooperation an initial penalty of 50% of the cost of the wage loss benefits to the worker is applied to the Accident Cost Statement with such penalty confirmed in writing. If the non-co-operation continues beyond the 14th calendar day following the date that the written notice comes into effect, the WSIB levies a further penalty of 100% of the cost of the wage loss benefits payable to the worker, plus 100% of any costs associated with providing Work Transition services to the worker.
Additional re-employment obligations of the employer for the worker remains until the earlier of the second anniversary of the date of injury, or one year after the worker is medically able to perform the essential duties of his or her pre-injury employment, or the date on which the worker reaches 65 years of age. An employer facing re-employment fines / penalties will have those applied effective from the date the re-employment obligation was breached.
If an employer breaches both a co-operation and re-employment obligation in the same claim, the WSIB will apply a single penalty. The WSIB will choose the penalty which will most likely lead to a positive return-to-work outcome for the worker.
The cost of non-cooperation with WSIB for return-to-work initiatives by either the worker or the employer is significant.
Links
More information on changes since December 1, 2010 may be found in the WSIB’s Operational Policy Manual pages at:
Information on the Funding Review by Professor Harry Arthurs through his meetings with worker and employer groups, together with general public updates, questions and/or comments, is available online in a website dedicated to the Funding Review at: