This Web-based document was archived by the Minnesota Legislative Reference Library.
DEPARTMENT RESULTS
Department of Labor and Industry  
 
Goal: Assure that benefits are delivered to injured workers quickly, efficiently, and at a reasonable cost to employers

Why is this goal important?
The Minnesota workers’ compensation system represents an agreement between workers and employers to operate a no-fault system for providing benefits to injured workers. The success of the system requires that it be fast, responsive and easy to use. The system must be efficient to assure prompt delivery of services, optimal use of resources and minimal disputes. For the system to be effective: workers, employers and providers need to comply with the law and rules; strong workplace safety programs should set the stage for reduced injuries and illnesses; and workers and employers must be satisfied that the system is responsive, easy to access and fair to all parties.

How will this goal be accomplished?
To achieve the goal of an efficient and effective workers’ compensation system, DLI will:

     * 
 maximize the impact of statutory compliance
           enforcement
;

     *
   develop a culture of quick and effective benefit
           resolution by identifying opportunities where dispute  
           resolution will have the greatest impact;

     *   promote the understanding of the workers'
           compensation system throughout Minnesota's
           workplaces; and

     *
  strengthen and improve the administrative infrastructure
           by: improving our performance measurement
           capabilities;improving existing capabilities and
           strategic management of human resources; and
           improving the efficiency of processes and activities
.

Blue Bullet

What is the department's progress to date?
In 2006, 87 percent of the filed lost-time claims were paid or denied within the statutory 14-day deadline. This is from a base of approximately 29,000 claims. DLI aims to increase statutory compliance to 95 percent by 2010. Comprehensive training and auditing of insurers and self-insured employers, to explain the requirements and to facilitate timely action, have led to improvements.

Blue Bullet

DLI’s dispute resolution process offers a full range of alternative dispute resolution strategies, beginning with a customer assistance approach to dispute prevention and continuing with an informal mediation-arbitration option. The department’s toll-free “hotline” number connects callers to experienced specialists who are able to achieve real-time resolutions using state-of-the-art telecommunication and computer imaging technology. Instant access to the complete imaged file enables specialists to quickly diagnose the source of problems and make the necessary calls to solve them. If a solution is not reached, an informal administrative conference may be scheduled or, if the parties agree, a mediation session may be arranged, which often leads to a full, final and complete claim settlement.

             

The administrative expenses of the system include the operational costs for the DLI Workers’ Compensation Division, Minnesota OSHA, the Workers’ Compensation Court of Appeals and portions of the Department of Commerce and the Office of Administrative Hearings. The system cost reached a peak in 1995 of 4.9 cents per $100 of payroll and dropped to a low of 3.2 cents in 2004 – a 35 percent decline.

             

A survey conducted in 2004 shows that 59 percent of injured workers and 62 percent of employers were satisfied with their overall workers’ compensation experience. The area of greatest concern for employers was insurance costs, whereas injured workers were most concerned about relations with their employer’s insurance company. DLI will conduct this same survey in 2007/2008 to measure our progress.

 

 

Goal: Improve workplace safety and health

Why is this goal important?
Every Minnesota worker has the right to return home safe and healthy each day. Yet each month, approximately 8,700 Minnesota employees are hurt at work and five workers die on the job. The emotional and fiscal impact to families and employers when employees die or are hurt on the job is a threat to the financial stability of families, employers, co-workers and the state as a whole.
                  
Workplace safety is directly addressed through the work of two DLI units that administer the Minnesota Occupational Safety and Health Act (OSHA). The OSHA Compliance unit and Workplace Safety Consultation unit work with employers and employees to reduce the number of fatalities, injuries and illnesses in Minnesota's workplaces.
 

How will this goal be accomplished?
Minnesota OSHA Compliance conducts random and unannounced workplace inspections. It issues citations that require employers with significant violations to pay penalties and correct hazards. Workplace Safety Consultation conducts on-site visits at the request of employers and does not issue penalties, but works with employers to correct hazards. Employers can request this free service to help identify and resolve safety and health problems.

Minnesota's OSHA programs established a five-year strategic plan starting in 2004 with the following goals:

     *   reduce occupational hazards through enforcement inspections and on-site consultation
           visits;

     *
   promote a safety and health culture through compliance assistance, outreach,
           cooperative programs, and strong leadership; and

     *
  strengthen and improve its infrastructure.

Minnesota OSHA focuses efforts on employers in a set of emphasis industries. Minnesota OSHA responds to information requests and provides outreach throughout the state. Minnesota OSHA has established voluntary cooperative agreements and partnerships to facilitate employer and employee involvement to improve workplace safety and health.

Construction safety is a major focus for inspection, consultation and outreach efforts. The majority of planned safety inspections were conducted at construction worksites. Construction safety breakfasts are organized to disseminate new safety and health information to the industry. Minnesota OSHA and Associated General Contractors of Minnesota agreed to a major construction safety-initiative -- Construction Health and Safety Excellence (CHASE) Minnesota -- in 2003. The partnership charter acknowledges the importance of providing a safe, healthful work environment in construction and seeks a working relationship that creates mutual trust and respect among all parties, including project owners and construction workers, invoiced in the construction process.

Blue Bullet         

The MNSTAR and MNSHARP programs administered by the Workplace Safety Consultation recognize companies where managers and employees work together to develop safety and health management systems that go beyond basic compliance with all applicable OSHA standards.  This results in immediate and long-term prevention of job-related injuries and illnesses. Currently, there are 22 employers enrolled in MNSTAR, which is modeled after the federal OSHA Voluntary Protection Program. MNSHARP offers safety recognition for small employers, with 29 employers currently enrolled. Key elements of these programs include: management leadership and employee involvement; a worksite analysis; systems that identify and control workplace hazards; and a plan for employee safety and health training and education. Incentives for participant companies include safety consultation assistance, public recognition, and exemption from Minnesota OSHA Compliance scheduled inspections. Workplace Safety Consultation also provides assistance toward workplace violence prevention and logger safety.
 

Blue Bullet

Minnesota OSHA works with trade associations to establish partnerships. The goal is to work together with employers and employees to help develop a strong commitment to safety and health. Upon achieving certain safety and health performance expectations, participants are provided recognition, penalty credits and, in some cases, exemption from Minnesota OSHA Compliance scheduled inspections.

The Safety Grant Program awards up to $10,000 to qualifying employers for projects designed to reduce the risk of injury and illness to workers. Priority is given to industrial employers or locations where jobs have been lost or are jeopardized because of problems related to safety or health shortcomings.
 

What is the department's progress to date?
     *   OSHA Compliance visited 2,593 establishments and identified 4,968 hazards during the
           Oct. 2005-Sept. 2006 period.

     *   Workplace Safety Consultation conducted 946 initial safety and health worksite visits
           and held 332 training interventions during the Oct. 2005-Sept. 2006 period. The visits
           identified hazards that would have resulted in $4.0 million in OSHA violation penalties.

     *
   Five construction safety breakfasts were held during 2006, with 532 construction
           managers and supervisors in attendance, a 9 percent increase from the previous year.

     *
  The number of people attending OSHA training increased from about 14,000 in 2000 to
           over 25,000 in 2006.

     *
  Workplace injury and illness rates decreased from 6.8 per 100 full-time equivalent 
           workers in 2000 to 5.1 per 100 full-time equivalent workers in 2005, a 25 percent
           decline.

 
Goal: Efficiently and effectively promote safe and healthy work and living spaces in Minnesota

Why is this goal important?
Building codes are designed to save lives, reduce injuries and protect the health of people in their everyday lives, at work, at home and in the buildings they frequent. By reducing risk and making buildings safe we prevent the undue economic loss that disaster, injury, loss of life and property present.

Building codes in the U.S. have made the U.S. the safest place in the world in which to survive an earthquake. The Loma Prieta earthquake in 1989, for example, took 67 lives and caused an estimated $6-10 billion damage in the San Francisco region, while a similar-sized earthquake in Armenia took 25,000-30,000 lives in 1988 and turned many cities and villages into wastelands that persist today. While Minnesota is not an active seismic area, we have tornadoes, snow loads, floods and a cold climate. Building codes in Minnesota address these critical areas and more.

It is particularly important to verify proper code compliance during construction of "institutional" buildings where the ability of the occupants to provide for their own safety is very difficult. These include public schools, hospitals, nursing homes, and correctional facilities. Because of the higher risk associated with housing these types of people together and the complexity of the regulations governing construction, the legislature has conferred this responsibility onto agency staff.

The types of areas regulated by the Building Code for these and all building types constructed in Minnesota addresses minimum construction standards for:

     · structural stability
     · fire protection
     · safe exiting
     · energy conservation
     · durability
     · accessibility
     · water and sewage services
     · electrical systems
     · mechanical systems
     · high pressure piping
 

How will this goal be accomplished?
The Construction Codes and Licensing Division (CCLD) is a newly-formed division of DLI with a mission to assure quality construction, operation and maintenance of structures and their related systems (plumbing, heating, electricity, etc.) in Minnesota. The division is a consolidation of the Building Codes and Standards Division of the Department of Administration, the Plumbing and Engineering Unit of the Department of Health, the Board of Electricity, the Residential Contractors' Licensing Unit of the Department of Commerce and the Boiler and High-Pressure Piping Unit of DLI. The consolidation is resulting in streamlined state processes for code regulation, construction licensing, and industry compliance monitoring and allows design professionals, contractors and other construction industry parties to interact with a single entity regarding state building regulations.

The division administers the licensing of building professionals and contracting firms, helping to create safer, more qualified practitioners, which results in higher-quality construction and fewer consumer complaints. The division also provides training to construction professionals and contractors to keep practitioners current in the construction codes and to keep Minnesota a safe place to live and work.
 

What is the department's progress to date?
     *   Licensing of over 100,000 construction-related specialists. These licenses include
           electrical, plumbing, boiler, high pressure piping, residential contractors, remodelers,
           roofers, building officials and accessibility specialists.

     *   Providing high quality construction code education and training for over 7,000 industry
           professionals. Classes focus on all code subject matter including energy, mechanical,
           plumbing, boiler, electrical, manufactured structures, accessibility, structural, general
           construction and fire safety. The primary audiences for these classes are architects,
           engineers, code officials, contractors, material suppliers and students preparing for a
           career in the construction industry.

     *   Conducting over 3,000 plan reviews for plumbing systems and major construction plans
           for facilities that are state-owned, -funded or -licensed, including school district projects
           over $100,000. In order to
           keep the delay of state
           facility construction to a
           minimum and to assist in
           getting them ready for
           occupancy in as short as
           time as possible,
           particularly with our
           shortened construction
           season, the division
           offers services to
           keep the plan review
           process as brief and
           efficient as possible. In
           accordance with a legislative requirement, all plan reviews must be completed within the
           30 days of receiving a completed application. The division takes that a step further by
           imposing a standard of completing reviews within 21 days.

     *   Conducting approximately 400,000 separate inspections on 200,000 separate
           installations annually. The division is working to identify common aspects of the
           inspection programs for boilers, pressure vessels, boats for hire, and hobby boilers;
           elevators and escalators; high pressure piping installations; and electrical installation to
           develop platforms that take advantage of the commonalities in inspections, licensing and
           other department activities.

     *   During 2007, the CCLD will perform recertification inspections of over 2,000 bleachers,
           in accordance with Minnesota's Bleacher Safety Act. The goal is to eliminate bleacher
           failures through good inspections, responsiveness to complaints and bleacher safety
           education.

The CCLD is exploring technology upgrades that will allow the division to further streamline its processes and improve service delivery to the construction industry. The licensing function is a top priority and where service delivery improvements will be the most beneficial.
 

Last update on 07/27/2007