OSHA 201 Note PDF

Types of Bodily Reactions Bodily reactions can be caused solely by stress imposed by free movement of the body or assumption of a strained or unnatural body position. Overexposure is a leading source of injury, caused by prolonged exposure to harmful energy, lack of ener...

Types of Bodily Reactions Bodily reactions can be caused solely by stress imposed by free movement of the body or assumption of a strained or unnatural body position. Overexposure is a leading source of injury, caused by prolonged exposure to harmful energy, lack of energy, or substances. System Causation Theory The focus is on fixing the system, not assigning blame. Discipline is not appropriate if the safety management system has failed employees. Accident Investigation The purpose of an accident investigation is to determine the facts, not to assign blame. A seven-step process for investigating accidents includes: o Securing the accident scene o Documenting the accident scene o Conducting interviews o Developing the sequence of events o Conducting surface and root cause analysis o Determining solutions o Writing the report Characteristics of Accident Investigation At least two competent persons should investigate. Investigators should be properly trained on techniques and procedures. The investigation report should address surface and root causes of accidents. The report should make recommendations to correct hazardous conditions and unsafe work practices. OSHA Recordkeeping The OSHA Form 300 is used to classify work-related injuries and illnesses and to note the extent and severity of each case. OSHA recordkeeping is intended to collect, compile, and analyze uniform and consistent nationwide data on occupational injuries and illnesses. Employers must keep a separate OSHA 300 Log for each establishment that is expected to operate for one year or longer. The OSHA 300A is a summary of work-related injuries and illnesses. Workers' Compensation Workers' compensation is intended to provide medical coverage and compensation for workers who are killed, injured, or made ill at work.  Recordable cases are not always compensable, and vice versa. Injury and Illness Reporting An injury or illness is work-related if an event or exposure in the work environment caused or contributed to the resulting condition, or significantly aggravated a pre-existing injury or illness. Employers must determine if the workplace caused, contributed to, or significantly aggravated an injury or illness. Safety Culture OSHA defines culture as a combination of an organization's attitudes, behaviors, beliefs, values, and ways of doing things. Management Styles Directive Democrat: allows subordinates to participate in the decision-making process but closely supervises employees. Directive Autocrat: makes decisions unilaterally and closely supervises employees. Permissive Democrat: allows employees to participate in the decision-making process and gives subordinates some latitude in carrying out their work. Accident Theories Heinrich's Domino Theory: unsafe act, unsafe condition, social traits, injury, accident Human Factors Theory: accidents are entirely the result of human error. Accident/Incident Theory: additional elements such as ergonomic traps, the decision to err, and system failures. Systems Theory accident causation is a relationship between man, machine systems, and the surroundings. Energy Release Theory: accidents involve the transfer of energy, in large amounts and at rapid rates. Combination Theory: a combination of factors contributes to accidents. Health and Safety Program Audits The three basic methods used to conduct health and safety program audits are document review/verification, employee interviews, and site conditions. The major elements of an effective health and safety program include management commitment, employee involvement, worksite analysis, hazard prevention and control, and health and safety training. ANSI Standards  ANSI standards are developed or revised considering the stakeholders that are impacted by the standard. The seven sections of Z 10 include: o Management Leadership o Employee Participation o Planning o Implementation and Operation o Evaluation o Corrective Action o Management Review Employee Rights and Responsibilities Employees have the right to access their medical records and exposure records. Employees are expected to: o Read the OSHA poster o Follow the employer's safety and health rules and wear required gear and equipment o Follow safe work practices for their job o Report hazardous conditions to a supervisor or safety committee o Report hazardous conditions to OSHA if the employer does not fix them o Expect safety and health on the job without fear of reprisal OSHA Inspections and Process During an OSHA inspection, the employer must: o Be advised by the compliance officer of the reason for the inspection o Require identification of the OSHA compliance officer o Accompany the compliance officer on the inspection o Ensure confidentiality of trade secrets observed by the OSHA compliance officer Inspections are based on the following priorities: o Imminent danger situations o Catastrophes and fatal accidents o Employee complaints o Programmed high-hazard inspections o Follow-up inspections OSHA Citations The Area Director will send citations via certified mail. The employer must post the citation for 3 days or until the violation has been abated, whichever is longer. OSHA recordkeeping regulations require employers to keep records of work-related fatalities, injuries, and illnesses. Misuse and Foreseeability  In cases of misuse, the courts use a test of "foreseeability" to determine whether a misuse reasonably could have been anticipated. A supplier is responsible for risks they introduce, and may be liable for modifications introduced by a user. Liability and Records A manufacturer or seller can minimize liability in various ways, including: o Defending in design, manufacturing, packaging, and the marketplace o Using attorneys to defend in court o Using engineers to prevent lawsuits Records and reports include: o Incident reports o Training records o Exposures and conditions records o Equipment testing and maintenance records Job Safety Analysis and Risk Assessment Job Safety Analysis (JSA) breaks a job into basic steps and identifies hazards associated with each step. JSA prescribes controls for each hazard. Gross Hazard Analysis is a rough assessment of risks involved in performing a task, used in early stages of accident investigation. The bathtub curve shows the typical failure rate of a product over time. Fault tolerance has no relation to when the system will fail. Probability and Statistics Series Reliability: R = R1 × R2 × … × Rn, where failure of any individual component results in the entire system failing. Parallel Reliability: Rsystem = 1 – {(1 − R1)(1 − R2)…(1 − Rn)}, where one individual component can fail and the system will still be functional. Probability of Failure (System) Pf = (1 − Ps) Human Behavior and Error Argyris: Employees treated like children and/or adults will act like such. Heinrich's 3 "E's" of safety: Engineering, Education, Enforcement. Conflict theory: Leveling, where boss doesn't make all decisions. Incongruence theory: Mature workers desire independence. Drucker: Management by Objectives (MBO). Management and Leadership  Span of Control: The number of employees reporting to one manager should be limited, with a recommended ratio of 1 supervisor per 5 direct reports. Likert scale: Measures attitude preference and subjective reaction. Classifying Failure Impacts Failure impacts can be classified into four categories: o Catastrophic o Critical o Marginal o Negligible Health and Safety Performance Elements of an effective accountability system include: o Established standards o Resources o A measurement system o Consequences o Application Traditional measurements of safety performance, such as TCIRs and DARTs, have limited or no use in predicting future incidents. Effective health and safety goals and objectives should follow the SMART acronym: Specific, Measurable, Attainable, Realistic/Relevant, and Time-bound. Continuous improvement must be built into any sustainable system. OSHA Overview The Occupational Safety and Health Administration (OSHA) was created within the Department of Labor OSHA's primary responsibilities include: o Encouraging employers and employees to reduce workplace hazards and implement new or improve existing safety and health standards o Providing research in occupational safety and health and developing innovative ways to deal with occupational safety and health problems o Establishing separate but dependent responsibilities and rights for employers and employees for achieving better safety and health conditions o Maintaining a reporting and record-keeping system to monitor job-related injuries and illnesses o Developing mandatory job safety and health standards and enforcing them effectively Coverage under the OSH Act All private sector employers with one or more workers in all 50 states and US territories are governed under the OSH Act  OSHA regulations do not apply to: o Public sector employers (municipal, county, state, or federal government agencies) o Self-employed individuals o Family members operating a farm o Domestic household workers OSHA Rules and Regulations OSHA required a warrant to enter the workplace to conduct an inspection (OSHA rule 5- 3, Marshall VS Barlow) Horizontal standards apply to general industries, such as fire prevention/protection Vertical standards apply to particular industries, such as construction safety Employer Rights and Responsibilities Examine workplace conditions to ensure compliance with applicable standards Minimize or reduce hazards Use color codes, posters, labels, or signs to warn employees of potential hazards Provide training required by applicable OSHA standards Keep OSHA-required records If a company has 10 or fewer employees, it is not required to keep OSHA injury and illness records unless informed in writing by OSHA or the BLS OSHA Recordkeeping System The Log of Work-Related Injuries and Illnesses (OSHA Form 300) is used to classify work-related injuries and illnesses and note the extent and severity of each case OSHA recordkeeping system is intended to collect, compile, and analyze uniform and consistent nationwide data on occupational injuries and illnesses The system is used for inspection targeting, performance measurement, standards development, resource allocation, Voluntary Protection Program (VPP) eligibility, and low-hazard industry exemptions Workers' Compensation Intended primarily to provide medical coverage and compensation for workers who are killed, injured, or made ill at work Varies in coverage from one state to another Recordable cases are not always compensable, and vice versa Behavior Theory (Behavior-Based Safety) Intervention Identification of internal factors Motivation to behave in the desired manner  Focus on the positive consequences of appropriate behavior Application of the scientific method Integration of information Planned interventions A BBS program should consist of: o Common goals of employee and managerial involvement in the process o Definition of what is expected (clear definitions of target behaviors derived from safety assessments) o Observational data collection (safety sampling) o Decisions about how best to proceed based on those data o Feedback to associates being observed o Review Cost-Benefit Analysis Conducted to determine the return on investment to a company from the original investment of training costs Helps organizations decide whether it is worth spending time, money, and energy on certain resources ROI (Return on Investment) is calculated as (COST ÷ INVESTMENT) X 100 = % ROI Payback period is also calculated to determine how quickly the investment will pay for itself Insurance and Liability Types of insurance: private insurance policies or self-insured benefits Self-insured companies must create a large reserve fund to ensure claims will be paid Premiums for workers' compensation insurance are based on employee payroll Third-party lawsuits may be filed by employees against manufacturers of machines or products that caused the injury Theories of liability include: o Warranty o Negligence o Strict liability Charts and Graphs PERT Chart (Program Evaluation and Review Technique chart): a line diagram incorporating key tasks and key relationships in a 'flow' to show progress, interdependencies, and critical paths Hazard Analysis Techniques HAZOP: used at the design stage to identify deviations in design, using specific terms like more/less/no flow, study, and table/logic diagrams.  Preliminary Hazard Analysis (PHA): qualitative study to identify potentially hazardous components within a system during the design phase, results summarized in tables or logic diagrams. Functional Hazard Analysis (FHA): a deductive "top-down" technique. "What-if" analysis: an informal method to evaluate hypothetical situations and their consequences. Management Oversight and Risk Tree (MORT): a logic tree to identify total risk inherent in the system, arising from operational/management inadequacies. Zonal: a geographical inspection of hardware. System Analysis Techniques Systems Hazard Analysis (SHA): identifies physical and functional incompatibilities between adjacent, interconnected, and interacting elements. Critical Incident Techniques (CIT): individuals are interviewed about accidents, near misses, and hazardous conditions. Event Tree Analysis (ETA): a forward analysis beginning with an initiating event to find consequences, evaluating the success or failure of a system. Cause & Effect Diagram (Fishbone or Ishikawa): a deductive technique to identify influencing factors leading to a particular outcome. Fishbone analysis: six Ms - manpower, methods, metrics, machines, materials, and minutes. Safety Management 3 "E"s of safety: Engineering, Education, Enforcement (Hienrich). Conflict theory: Leveling - boss doesn't make all the decisions. Incongruence theory: mature workers desire independence. Drucker: MBO (Management by Objectives). Span of Control: a limited number of employees reporting to one manager, recommended ratio of 1 supervisor per 5 direct reports. Reliability and Fault Tolerance Series Reliability: R = R1 × R2 × … × Rn, where a failure of any individual component results in the entire system failing. Parallel Reliability: Rsystem = 1 – {(1 − R1)(1 − R2)…(1 − Rn)}, where one individual component can fail and the system will still be functional. Probability of Failure (System): Pf = (1 − Ps). Probability and Statistics Machine A produces 25% of parts, B produces 35%, and C produces 40%, with respective defect rates of 0.05, 0.04, and 0.02. Probability of A producing a defect: 25 × 0.05 = 1.25, or A/total failure. Accident Analysis Domino theory: accident as a series of related occurrences leading to a final event that results in injury or illness, eliminating any one of those actions or events breaks the chain and prevents the future accident. Heinrich's domino theory: 88% of accidents are caused by unsafe acts, 10% by unsafe conditions, and 2% unavoidable (88UA:10UC:2). Multiple Cause Theory: accidents are the result of a series of random related or unrelated actions that interact to cause the accident, eliminating one accident event does not necessarily prevent future accidents. Causal factors: hazardous conditions, unsafe behaviors, and system weaknesses. Classification and Measurement Classifying failure impacts: catastrophic, critical, marginal, and negligible. Likert scale: measures attitude preference and subjective reaction. Hazard Analysis Techniques HAZOP: used at the design stage to identify deviations in design, using specific terms like more/less/no flow, study, and table/logic diagrams. Preliminary Hazard Analysis (PHA): qualitative study to identify potentially hazardous components within a system during the design phase, results summarized in tables or logic diagrams. Functional Hazard Analysis (FHA): a deductive "top-down" technique. "What-if" analysis: an informal method to evaluate hypothetical situations and their consequences. Management Oversight and Risk Tree (MORT): a logic tree to identify total risk inherent in the system, arising from operational/management inadequacies. Zonal: a geographical inspection of hardware. System Analysis Techniques Systems Hazard Analysis (SHA): identifies physical and functional incompatibilities between adjacent, interconnected, and interacting elements. Critical Incident Techniques (CIT): individuals are interviewed about accidents, near misses, and hazardous conditions. Event Tree Analysis (ETA): a forward analysis beginning with an initiating event to find consequences, evaluating the success or failure of a system. Cause & Effect Diagram (Fishbone or Ishikawa): a deductive technique to identify influencing factors leading to a particular outcome. Fishbone analysis: six Ms - manpower, methods, metrics, machines, materials, and minutes. Safety Management  3 "E"s of safety: Engineering, Education, Enforcement (Hienrich). Conflict theory: Leveling - boss doesn't make all the decisions. Incongruence theory: mature workers desire independence. Drucker: MBO (Management by Objectives). Span of Control: a limited number of employees reporting to one manager, recommended ratio of 1 supervisor per 5 direct reports. Reliability and Fault Tolerance Series Reliability: R = R1 × R2 × … × Rn, where a failure of any individual component results in the entire system failing. Parallel Reliability: Rsystem = 1 – {(1 − R1)(1 − R2)…(1 − Rn)}, where one individual component can fail and the system will still be functional. Probability of Failure (System): Pf = (1 − Ps). Probability and Statistics Machine A produces 25% of parts, B produces 35%, and C produces 40%, with respective defect rates of 0.05, 0.04, and 0.02. Probability of A producing a defect: 25 × 0.05 = 1.25, or A/total failure. Accident Analysis Domino theory: accident as a series of related occurrences leading to a final event that results in injury or illness, eliminating any one of those actions or events breaks the chain and prevents the future accident. Heinrich's domino theory: 88% of accidents are caused by unsafe acts, 10% by unsafe conditions, and 2% unavoidable (88UA:10UC:2). Multiple Cause Theory: accidents are the result of a series of random related or unrelated actions that interact to cause the accident, eliminating one accident event does not necessarily prevent future accidents. Causal factors: hazardous conditions, unsafe behaviors, and system weaknesses. Classification and Measurement Classifying failure impacts: catastrophic, critical, marginal, and negligible. Likert scale: measures attitude preference and subjective reaction. Hazard Analysis Techniques HAZOP: used at the design stage to identify deviations in design, using specific terms like more/less/no flow, study, and table/logic diagrams. Preliminary Hazard Analysis (PHA): qualitative study to identify potentially hazardous components within a system during the design phase, results summarized in tables or logic diagrams. Functional Hazard Analysis (FHA): a deductive "top-down" technique.  "What-if" analysis: an informal method to evaluate hypothetical situations and their consequences. Management Oversight and Risk Tree (MORT): a logic tree to identify total risk inherent in the system, arising from operational/management inadequacies. Zonal: a geographical inspection of hardware. System Analysis Techniques Systems Hazard Analysis (SHA): identifies physical and functional incompatibilities between adjacent, interconnected, and interacting elements. Critical Incident Techniques (CIT): individuals are interviewed about accidents, near misses, and hazardous conditions. Event Tree Analysis (ETA): a forward analysis beginning with an initiating event to find consequences, evaluating the success or failure of a system. Cause & Effect Diagram (Fishbone or Ishikawa): a deductive technique to identify influencing factors leading to a particular outcome. Fishbone analysis: six Ms - manpower, methods, metrics, machines, materials, and minutes. Safety Management 3 "E"s of safety: Engineering, Education, Enforcement (Hienrich). Conflict theory: Leveling - boss doesn't make all the decisions. Incongruence theory: mature workers desire independence. Drucker: MBO (Management by Objectives). Span of Control: a limited number of employees reporting to one manager, recommended ratio of 1 supervisor per 5 direct reports. Reliability and Fault Tolerance Series Reliability: R = R1 × R2 × … × Rn, where a failure of any individual component results in the entire system failing. Parallel Reliability: Rsystem = 1 – {(1 − R1)(1 − R2)…(1 − Rn)}, where one individual component can fail and the system will still be functional. Probability of Failure (System): Pf = (1 − Ps). Probability and Statistics Machine A produces 25% of parts, B produces 35%, and C produces 40%, with respective defect rates of 0.05, 0.04, and 0.02. Probability of A producing a defect: 25 × 0.05 = 1.25, or A/total failure. Accident Analysis  Domino theory: accident as a series of related occurrences leading to a final event that results in injury or illness, eliminating any one of those actions or events breaks the chain and prevents the future accident. Heinrich's domino theory: 88% of accidents are caused by unsafe acts, 10% by unsafe conditions, and 2% unavoidable (88UA:10UC:2). Multiple Cause Theory: accidents are the result of a series of random related or unrelated actions that interact to cause the accident, eliminating one accident event does not necessarily prevent future accidents. Causal factors: hazardous conditions, unsafe behaviors, and system weaknesses. Classification and Measurement Classifying failure impacts: catastrophic, critical, marginal, and negligible. Likert scale: measures attitude preference and subjective reaction. Systems Theory Interdisciplinary framework to investigate or describe any group of objects that work together to produce a result Studies complex systems in nature, society, and science Chaos Theory Field of study in mathematics, physics, and philosophy Examines behavior of dynamical systems that are highly sensitive to initial conditions Sensitive to initial conditions is referred to as the butterfly effect Future behavior is fully determined by initial conditions Human Factors Theory Accidents are entirely a result of human error Causes include overload, inappropriate worker response, and inappropriate activities Examples: performing a task without sufficient training Heinrich's Domino Theory Personal injury only occurs as a result of a hazard Hazards exist due to the fault of careless persons or poorly designed equipment 2% of all accidents are unavoidable Accident/Incident Theory Extension of human factors theory with the possibility of system failure Includes the possibility of system failure Epidemiological Theory Focuses on industrial hygiene and the relationship between environmental factors and disease William Haddon's Energy Theory Accidents and injuries involve the transfer of energy Multiple Factor Theories 4 Ms: man, machine, media, and management Examples: man (recklessness, nervousness), machine (poorly designed equipment), media (environmental factors), management (system failure) Management Styles Directive Autocrat: makes decisions unilaterally and closely supervises employees Examples: controlling, may work well in dangerous work environments where control is paramount to safety OSHA Regulations Reporting requirements: o Work-related fatalities within 8 hours o In-patient hospitalizations, amputations, or eye loss within 24 hours Record-keeping requirements: o Maintain records at the worksite for at least 5 years o Use OSHA 300 Log to record work-related injuries and illnesses o Report events electronically on OSHA's Electronic Submission website Employee Participation Employees should be given an opportunity to provide input on safety and health products, procedures, and training Examples: testing products, conducting research, and making recommendations Safety Recognition Programs Safety Committee: o Comprised of management and employee representatives o Meets at least monthly o Addresses safety and health issues o Records and posts minutes of meetings o Involves employees in problem-solving  o Documents action taken and posts on bulletin boards Change Analysis (Management of Change) Best practice to ensure safety, health, and environmental risks are controlled when making changes Conducted by competent persons to identify hazards and potential hazards Changes in worksite layout, materials, process technology, and inspection, audit, and maintenance require review Accident Analysis Identifies surface causes (behaviors and conditions) and underlying root causes (system weaknesses) that contributed to an accident Domino theory: accident as a series of related occurrences that lead to a final event Heinrich's domino theory: 88% of accidents caused by unsafe acts, 10% by unsafe conditions, and 2% unavoidable Multiple Cause Theory: accidents result from a series of random related or unrelated actions that interact Communication Styles Passive Communication: avoiding expressing opinions or feelings, protecting rights, and identifying and meeting needs Aggressive Communication: expressing feelings and opinions in a way that violates others' rights Contingency Planning Identify potential events that might disrupt business operations, such as accidents, emergencies, disasters, and threats Develop a plan to minimize the impact of these events and return to normal operations as quickly as possible Review and update the plan regularly, at least annually Management Theories Likert's theory: participation at all levels BHR theory: worker productivity and supervisor control are inversely proportional Herzberg's motivation theory: no details provided McGregor's theory: no details provided The Deming Cycle: Plan, Do, Check, Act Peter Drucker's Management by Objectives: agree upon objectives to ensure management and employees are on the same page W. Edwards Deming's Total Quality Management: focus on continuous improvement to increase quality while decreasing costs OSHA Regulations OSHA 300 Log: record work-related injuries and illnesses OSHA 300A: summary of work-related injuries and illnesses OSHA Form 301 or equivalent: injury and illness incident report Record within 7 days: enter each recordable injury or illness on the OSHA 300 Log and OSHA Form 301 or equivalent within 7 calendar days Determining recordable injuries or illnesses: consider an injury or illness recordable if it results in death, days away from work, restricted work, medical treatment beyond first aid, or loss of consciousness Safety Culture OSHA's definition of culture: a combination of attitudes, behaviors, beliefs, values, and ways of doing things Tort: harm done but not covered under the contract Exclusive remedy: prohibits injured employees from suing their employer if they are receiving workers' comp benefits No-fault concept: premium is determined by payroll, class rate, experience modification, and other factors Workers' Compensation Two types of workers' compensation laws: compulsory and elective Objectives of workers' compensation laws: replace lost income, provide medical treatment, relieve public and private charities, encourage employer interest in accident reduction, restore earning capacity, and encourage open investigation of accidents Hazard Analysis JHA/JSA: analysis by task HAZOP: used in design stage to identify deviations of design Preliminary hazard analysis (PHA): initial effort to identify potentially hazardous components in a system during design phase Functional Hazard Analysis (FHA): deductive, "top-down" technique Technique for Human Error Rate Prediction (THERP): calculates probability of human errors What-if analysis: informal method of evaluating hypothetical situations and their consequences Management Oversight and Risk Tree (MORT): logic tree to identify total risk inherent in the system Zonal: geographical inspection of hardware Systems Hazard Analysis (SHA): identifies physical and functional incompatibilities between adjacent, interconnected, and interacting elements Critical Incident Techniques (CIT): individuals are interviewed about accidents, near misses, and hazardous conditions  Event Tree Analysis (ETA): forward analysis beginning with initiating event to find consequences Cause & Effect Diagram (Fishbone) or Ishikawa: deductive, quality improvement technique Health and Safety Performance Elements of an effective accountability system: established standards, resources, measurement system, consequences, and application Problems with traditional measurements of safety performance: underreporting, events are a matter of chance, injury rates are no indication of severity or potential severity, and employees may stay off work for reasons unrelated to the severity of the event Elements of an effective health and safety performance management system: policy, organizing, planning and implementing, measuring performance, reviewing performance, and auditing Effective measurement system: designed to indicate where you currently are and measure progress towards goals and objectives SMART goals and objectives: specific, measurable, attainable, realistic, and time-bound Three dimensions of measurement: compliance, deployment, and capability of the system to achieve specific and measurable goals and objectives Continuous improvement: essential for any sustainable system Value of leading indicators: engages employees and supervisors in the safety program Safety Program Auditing Purpose: identify hazards, prevent illnesses and injuries, and determine progress towards overall goals and objectives of the health and safety program Employer Responsibilities Employers must keep records of work-related fatalities, injuries, and illnesses that meet specific recording criteria Criteria include death, days away from work, restricted work or transfer, medical treatment beyond first aid, loss of consciousness, significant injury or illness diagnosed by a physician, and others Records must also be kept for work-related needlestick injuries, medical removals, hearing tests, and tuberculosis exposure Management of Change Procedures Technical basis for the change Impact of the change on safety, health, and local environments Necessary time period to implement the change Management approval procedures for the change Changes should be documented and dated  Employees and contractors should be trained if their job tasks will be affected by a change OSHA Document Retention Accident OSHA 300 log and 300A: 5 years LOTO training records: length of employment PPE records: until the employee is no longer employed Noise Exposure records: minimum of 2 years and audiometric test records for the duration of employment Bloodborne Pathogens records: duration of employment plus 30 years Permit-Required Confined Spaces records: minimum of 1 year Training records: 3 years from the date of training Critical Path Method (CPM) A technique for planning the most efficient way to achieve a given objective Determines the activities and events required and shows how they relate to each other in time Cost of Lost (COL) COL = (PM) x ($volume of business) For recovery, PM is profit margin COL = (PM) x (#unit sold) x (unit price) Federal Emergency Management Agency (FEMA) Responsible for preparedness, mitigation, relief, and response activities for natural, artificial, and nuclear emergencies History of Workers’ Compensation Common Law Defenses: o Assumption of Risk: if a person voluntarily assumes a risk and is injured, they cannot be indemnified for the losses o Contributory Negligence: if an employer can claim that an employee acted carelessly, they may not be liable for the injury o Fellow Servant Rule: an employer is not liable for an employee's injury if caused by a co-worker's actions Insurance and Premiums Self-insured companies must create a large reserve fund to ensure claims will be paid Premiums are based on employee payroll: 1per1 per 1per100 of payroll, with average costs around 2.00per2.00 per 2.00per100 of payroll Third-Party Lawsuits An employee may sue the manufacturer of a machine or product that caused the injury An employee may sue another employer on a multiemployer job site or another organization or individual involved in the injury-causing accident Theories of Liability Warranty: a manufacturer or seller is not liable for all injuries that may result from a product Negligence: includes acts of omission or commission Strict Liability: a manufacturer or seller is liable for injuries caused by a defective product Reducing Liability Risks A manufacturer or seller can minimize liability by: o Designing and manufacturing products safely o Providing adequate warnings and instructions o Conducting regular inspections and maintenance o Defending against lawsuits with attorneys and engineers Job Safety Analysis (JSA) Breaks a job into basic steps and identifies hazards associated with each step Prescribes controls for each hazard A chart listing these steps, hazards, and accident prevention programs