HOUSE BILL REPORT
HB 2407
BYRepresentatives Vekich and Prentice
Regulating workplace safety bonus programs.
House Committe on Commerce & Labor
Majority Report: Do pass. (7)
Signed by Representatives Vekich, Chair; Cole, Vice Chair; Jones, R. King, Leonard, O'Brien and Prentice.
Minority Report: Do not pass. (3)
Signed by Representatives Smith, Ranking Republican Member; Forner and Wolfe.
House Staff:Chris Cordes (786-7117)
AS REPORTED BY COMMITTEE ON COMMERCE & LABOR JANUARY 30, 1990
BACKGROUND:
A worker injured in a job-related accident is required to report the incident to the worker's employer or supervisor. The employer must report the accident to the Department of Labor and Industries if the worker receives medical treatment or is hospitalized, is disabled from work, or dies as the apparent result of the accident.
The department offers accident prevention and safety consultation services to employers. However, the department has no authority to regulate any safety bonus programs that employers might implement as part of an accident reduction program.
SUMMARY:
Employers must submit a description of safety bonus programs, or changes made in the programs, to the Department of Labor and Industries. Failure to make the required report subjects the employer to a penalty of up to $500.
Safety bonus programs may not include provisions that (1) make the worker's reward contingent on the safety performance of another worker or (2) include a monetary reward in an amount greater than 20 percent of the worker's base wage.
"Safety bonus program" includes any program that rewards workers for a specified safety performance, including cash bonuses, favorable working conditions, or other rewards to workers who report no job-related injuries, but does not include programs limited to establishing scholarship funds to benefit workers' dependents.
Fiscal Note: Requested January 6, 1990.
Effective Date:The bill contains an emergency clause and takes effect immediately.
House Committee ‑ Testified For: Jeff Johnson, Washington State Labor Council; Bob Dilger; Washington State Building and Construction Trades Council; and Brent Knott, Association of Western Pulp and Paper Workers.
House Committee - Testified Against: John Gipson, WTD Industries; Frank Gerloff, Longview Federated Aluminum Council; Jerry Ginter, Simpson; Clif Finch, Association of Washington Business; and Melanie Stewart, Washington Self-Insurers Association.
House Committee - Testimony For: Giving workers cash prizes does not reduce accidents. In most cases, the worker is not in control of the cause of an accident. But peer pressure because of a group prize can result in the non- reporting of accidents. Ideally, all safety bonus programs should be prohibited. Some industries have stopped safety bonus programs. The answer to safety in the workplace is more education in safety and health issues, particularly in the public schools.
House Committee - Testimony Against: Restricting safety bonus programs will hamper safety efforts. Employers often find it difficult to enforce safety rules. Peer review encourages safe workplace practices. Production bonuses need to be accompanied by safety incentives to ensure that production increases are implemented safely. Education is part of the safety program, but bonus programs reinforce safety. It is not in the employer's interest to discourage accident reporting, because only by investigating the accident can the employer plan preventive measures.