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Kyle Thompson
April 15, 2011
Masters of Public Administration
University of Alaska, Anchorage
Summary
Problem: Employers failing to provide Workers’
Compensation Insurance
Background: What is Workers’ Compensation
Impact: Why this is important
Research: Industry, region, and area records
Results: Identifying regions, industries, and
communities where employers’ fail
Problem Statement
Compulsory Insurance
Current Efforts
Issues
Impact
Employers’ who fail to insure
jeopardize employee’s safety and security
Background
The Alaska Workers’ Compensation Act
Quick, efficient, fair, and predictable delivery of
benefits to injured workers’
Scope of research
Literature Review
Common frauds associated with Workers’
Compensation Insurance
Employers often fail to purchase workers'
compensation insurance, despite state laws
mandating coverage
Census Bureau
Department of Labor Research and Analysis
Research Methodology
Alaska Division of Workers’ Compensation: Primary
data source identifying uninsured employers
Data codified and reinforced
Data shows frequency of failure to insure by;
Industry
Community
Region
Research Findings
Failure & Size by Industry
Utilities
Mining
Management of Companies and Enterprises
Agriculture, Forestry, Fishing, and Hunting
Educational Services
Information
Finance and Insurance
Real Estate, Rental, and Leasing
Public Administration**
Transportation and Warehousing
Manufacturing
Arts, Entertainment, and Recreation
Professional, Scientific, and Technical Services
Administrative, Support, Waste Management, and Remediation…
Construction
Health Care and Social Assistance
Services
Trade
Accommodation and Food Services
0.00%
Industry Size by % employed 2006-2009
5.00%
10.00%
15.00%
20.00%
% of Failure to Insure WC 2006-January 2011
25.00%
30.00%
Research Findings
Failure to Insure by Area
50
45
Percentage of Failure to Insure
40
35
30
25
20
15
10
5
0
Research Findings
% Failure to Insure & % Employed by Census Borough
50
40
30
20
10
0
% of Failure to Insure WC 2006-January 2011
% Employed 2006-2009 Average
Research Findings
Employees by Area with 0% Failure to Insure
Buffalo Soapstone
Diamond Ridge
Big Delta
Salcha
Yakutat
Two Rivers
Point Hope (Tigara)
Klawock (Klawak)
Hoonah
Y
Emanguk (Emmonak)
Chevak
Hooper Bay
Talkeetna
Cohoe
Metlakatla
Haines
Fritz Creek
Anchor Point
Deltana
Bear Creek (Woodrow)
Dillingham
Kotzebue
Unalaska
Gateway
Nome
307
307
317
317
327
339
348
373
379
387
392
406
469
479
515
646
719
747
764
821
956
1153
1467
1616
1720
1752
0
200
400
600
800
1000
1200
1400
1600
1800
2000
Management Policy Options
Substantial employment, no record of failure to
insure
Nome, Gateway, Unalaska, Kotzebue, Dillingham
Perfect compliance or undetected failure to insure
Option 1
Examination of identified areas and businesses
Industries addressed by relative risk of injury
Efficient use of resources
Management Policy Options
Option 2
Increased education to Alaskan employers &
employees
Incremental educational plan
Stage 1: Review of current materials and venues
Prong 1: Shore up gaps & identify current points of contact
Prong 2: Informing workers’ of their rights & anonymous
reporting
Stage 2: Coordinate with other state agencies
Stage 3: Integration of education and prevention
Conclusion
Greatest Failure Rate
Smaller employers
High density of economic activity
Areas Needing Follow-up
Smaller Areas (Census Area)
Nome, Gateway, Unalaska, Kotzebue, Dillingham
Industries
Accommodation & Food Services, Transportation &
Warehousing, Trade, & Other Services
Regions (Borough)
North Slope, Juneau, Bethel, & Fairbanks
Questions?