Tips for Implementing a Safety Incentive Program

 
How to Run a Safety Incentive Program
 
GEORGE B. DELTA, ESQ
 
 
COUNSEL TO THE
 
How to Run a Safety Incentive Program
 
Safety Programs and the Law
 
Taxes Rules for Incentive Awards
Tax Rules for Safety Incentives
OSHA Hostility – New Incentive Rules
Good and Bad Incentive Program Design
 
How to Run a Safety Incentive Program
 
Defining Safety Incentives for
Tax Purposes
 
“Employee Achievement Awards” are for
Safety and Length of Service Programs
Tax Deductible if Meet Criteria
Award is “Tangible Personal Property” (
i.e.
,
merchandise awards)
Meaningful Presentation – Does Not Amount
to Disguised Compensation
 
How to Run a Safety Incentive Program
 
Tax Rules for All Employee
Achievement Awards
 
Not a Substitute for Cash
Bonuses, Annual Raises
Average Cost Per Employee Must
Be Less Than $400
Award Cannot Be Cash or a Bank-
Issued Gift Card
Awards of “Nominal Value”
Excluded if Written Plan Exists
 
How to Run a Safety Incentive Program
 
Tax Rules for Safety Achievement
Award Incentive Programs
 
Tax Deductible
Until 10% of
Eligible Employees
Receive a Safety
Award, But
 
How to Run a Safety Incentive Program
 
Overtime
 Pay: A Lurking
Hazard in Safety Incentives
 
If Improperly
Structured, Safety
Incentive Awards Can
Create Overtime
Problems
 
How to Run a Safety Incentive Program
 
OSHA’s Hostility Towards
Safety Incentive Programs
 
Despite Considerable Evidence to the
Contrary, the Occupational Safety and
Health Administration (OSHA) Believes
Safety Incentive Programs Might Lead
Employees to Underreport Injuries
 
How to Run a Safety Incentive Program
 
The New OSHA Rules
 
Any Adverse Action Against an Employee
Who Reports a Work-Related Injury or
Illness, Including Withholding a Safety
Award, is a Violation
 
How to Run a Safety Incentive Program
 
The Two Types of Safety Programs
 
1) Rate-Based Safety Incentives
 
Bonus or Prize for Hitting Low or No Injury Rate
Many Would Violate the New OSHA Regulations
OSHA Believes These Programs Will Discourage Injury
Reporting
 
How to Run a Safety Incentive Program
 
The Two Types of Safety Programs
 
2) Behavior-Based Safety Incentives
 
Rewards Employees for Attending Safety Meetings,
Reporting Near Misses, Practicing Safety Behaviors
May Also Reward Employees For Identifying Hazards
and Suggesting Safety Improvements
Compliant With the New OSHA Regulations
 
How to Run a Safety Incentive Program
 
Poor vs. Good Safety Program Design
 
Peer Pressure Can Discourage
Reporting – 
i.e.
, A Rate-Based
Safety Incentive in which the
Whole Team Loses an Award if
One Member Reports an Injury
 
How to Run a Safety Incentive Program
 
Blurred Lines
 
If the Goal is Reducing Workplace Injuries, There Will
Be Some Overlap Between Rate-Based and Behavior-
Based Safety Incentive Programs.
 
Where OSHA Draws That Line is Unclear, However
 
How to Run a Safety Incentive Program
 
To Summarize: Safety Incentives Reduce
Injuries, Save Money, and Improve Morale
 
According to the U.S. Bureau
of Labor Statistics, the total
number of injuries to workers
has been dropping for over a
decade, in large part because
many companies, especially
larger ones, have adopted
safety programs
 
How to Run a Safety Incentive Program
 
GEORGE B. DELTA, ESQ
Counsel to the Incentive Federation, Inc
.
 
805 15
th
 Street, N.W., Suite 100
Washington. DC 20005
(703) 582-7040
gdelta@verizon.net
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Learn how to effectively run a safety incentive program by understanding tax rules, designing good incentive programs, and avoiding pitfalls such as OSHA concerns and overtime pay issues. Discover the importance of tangible awards, eligibility criteria, and employee recognition in creating a successful safety incentive program.


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  1. How to Run a Safety Incentive Program GEORGE B. DELTA, ESQ COUNSEL TO THE

  2. How to Run a Safety Incentive Program Safety Programs and the Law Taxes Rules for Incentive Awards Tax Rules for Safety Incentives OSHA Hostility New Incentive Rules Good and Bad Incentive Program Design

  3. How to Run a Safety Incentive Program Defining Safety Incentives for Tax Purposes Employee Achievement Awards are for Safety and Length of Service Programs Tax Deductible if Meet Criteria Award is Tangible Personal Property (i.e., merchandise awards) Meaningful Presentation Does Not Amount to Disguised Compensation

  4. How to Run a Safety Incentive Program Tax Rules for All Employee Achievement Awards Not a Substitute for Cash Bonuses, Annual Raises Average Cost Per Employee Must Be Less Than $400 Award Cannot Be Cash or a Bank- Issued Gift Card Awards of Nominal Value Excluded if Written Plan Exists

  5. How to Run a Safety Incentive Program Tax Rules for Safety Achievement Award Incentive Programs Tax Deductible Until 10% of Eligible Employees Receive a Safety Award, But

  6. How to Run a Safety Incentive Program Overtime Pay: A Lurking Hazard in Safety Incentives If Improperly Structured, Safety Incentive Awards Can Create Overtime Problems

  7. How to Run a Safety Incentive Program OSHA s Hostility Towards Safety Incentive Programs Despite Considerable Evidence to the Contrary, the Occupational Safety and Health Administration (OSHA) Believes Safety Incentive Programs Might Lead Employees to Underreport Injuries

  8. How to Run a Safety Incentive Program The New OSHA Rules Any Adverse Action Against an Employee Who Reports a Work-Related Injury or Illness, Including Withholding a Safety Award, is a Violation

  9. How to Run a Safety Incentive Program The Two Types of Safety Programs 1) Rate-Based Safety Incentives Bonus or Prize for Hitting Low or No Injury Rate Many Would Violate the New OSHA Regulations OSHA Believes These Programs Will Discourage Injury Reporting

  10. How to Run a Safety Incentive Program The Two Types of Safety Programs 2) Behavior-Based Safety Incentives Rewards Employees for Attending Safety Meetings, Reporting Near Misses, Practicing Safety Behaviors May Also Reward Employees For Identifying Hazards and Suggesting Safety Improvements Compliant With the New OSHA Regulations

  11. How to Run a Safety Incentive Program Poor vs. Good Safety Program Design Peer Pressure Can Discourage Reporting i.e., A Rate-Based Safety Incentive in which the Whole Team Loses an Award if One Member Reports an Injury

  12. How to Run a Safety Incentive Program Blurred Lines If the Goal is Reducing Workplace Injuries, There Will Be Some Overlap Between Rate-Based and Behavior- Based Safety Incentive Programs. Where OSHA Draws That Line is Unclear, However

  13. How to Run a Safety Incentive Program To Summarize: Safety Incentives Reduce Injuries, Save Money, and Improve Morale According to the U.S. Bureau of Labor Statistics, the total number of injuries to workers has been dropping for over a decade, in large part because many companies, especially larger ones, have adopted safety programs

  14. How to Run a Safety Incentive Program GEORGE B. DELTA, ESQ Counsel to the Incentive Federation, Inc. 805 15th Street, N.W., Suite 100 Washington. DC 20005 (703) 582-7040 gdelta@verizon.net

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