In the landscape of workers' compensation, New Hampshire's Second Injury Fund stands out as a significant provision for employers. This innovative program is designed to encourage hiring workers with pre-existing impairments by offering a way to limit compensation costs in specific situations. Here's what employers need to know about this fund and how it can impact their business.
What is the Second Injury Fund?
The Second Injury Fund in New Hampshire is a unique mechanism that helps employers manage the potential extra costs associated with workers who have pre-existing impairments. If an employee with a known impairment suffers a workplace injury, resulting in more significant disability than it would for a non-impaired worker, the Fund steps in. This approach levels the playing field, ensuring employers are not dissuaded from hiring workers with disabilities due to fear of higher compensation costs.
The Importance of the Fund
The core intent of the Second Injury Fund is twofold:
Equalization of Compensation Costs: It aims to equalize the compensation costs for impaired and non-impaired workers, making the employment of impaired workers more appealing and fairer.
Employment Opportunity for Impaired Workers: Removing financial disincentives opens up more employment opportunities for individuals with disabilities, ensuring they aren’t unfairly excluded from the workforce.
Key Steps for Employers
Employers play a crucial role in this process. Here’s what they need to do:
1. Documentation at the Time of Hire: When you hire an employee or as soon as you become aware of their impairment, make a written note of it. This documentation is crucial and can take various forms, such as a physical examination report, a memo in the personnel file, interview notes, or a letter from a rehabilitation counselor. The critical elements of this documentation should include the following:
The information must be recorded in writing.
The record should clearly identify the employer, employee, and the record's creation date.
It must detail the worker's impairment and the limitations it imposes.
2. Future Claims and Reimbursement: If the impaired worker later suffers a severe disability due to a work-related injury, your insurance company will initiate a claim with the Second Injury Fund. They will ask you for a copy of the impairment record. If this record is unavailable, the claim may not be eligible for reimbursement from the Fund.
The Bottom Line
New Hampshire's Second Injury Fund is a powerful tool for employers, balancing the scales in the employment of impaired workers. By adequately documenting an employee's pre-existing impairment, employers can safeguard themselves against increased compensation costs and contribute to a more inclusive workplace. It's a win-win situation, promoting diversity in the workforce while managing financial risks effectively.
