Business Travel News - December 15, 2008 - (Page 12) FORUM Travel Policy Restrictions Can’t Ignore Corporate Liability Calamitous economic times, coupled with the rising cost of business travel, have impelled many corporations to adopt more restrictive travel policies. Among the changes being implemented are requiring employees to schedule outbound and return flights on the same day—this to avoid the cost of a hotel stay—and requiring employees to rent cars and drive themselves to and from the airport rather than utilizing black car service. Such cost-cutting measures make for longer and more exhausting travel days, with the attendant risk to travelers who may find themselves behind the wheel of a car at the end of a 14-hour workday. These changes in corporate travel policies and the recent enactment in the United Kingdom of the Corporate Manslaughter and Corporate Homicide Act focused renewed attention on the duty of care owed by U.S.-based companies to employees who travel, an employer’s potential exposure if an employee sustains an injury while on a business trip and the worker’s compensation in the United States. U.S. worker’s compensation statutes focus on two straightforward inquiries: Was the injured party an employee and did his or her injury or death occur in the course of employment? If both questions are answered affirmatively, the injured employee is entitled to a worker’s compensation award. If an employee is covered by worker’s compensation, then the employee is barred from pursuing any other legal action against the employer, subject to limited exceptions. Worker’s compensation statutes guarantee recovery to an injured employee or the survivors of a deceased employee, as long as the incident occurred “in the course of employment.” The key inquiry is whether the employee was performing a work-related duty when the accident occurred, a determination made by considering the circumstances surrounding the injury. It is inconsequential whether the employee or employer could have prevented the accident. Fault is not relevant. To ensure the viability of the worker’s compensation system, a ERIC WONG state may require employers to purchase private worker’s compensation insurance, make contributions to a state worker’s compensation fund or self-insure. In New Jersey, for example, employers must purchase worker’s compensation insurance or otherwise be eligible for state-regulated self-insurance. An employer who fails to insure can be liable for criminal and civil penalties and lose its shelter against further lawsuits by its employees. The New Jersey legislature has created an “Uninsured Employer’s Fund,” which makes worker’s compensation payments when the employer is not insured or, if a self-insured company, has defaulted on compensation payments due an employee. Under worker’s compensation statutes, there are often two components to an employer’s liability to an injured employee. First, the employee is compensated for the loss of future wages caused by the injury based upon a statutory schedule that takes into account the nature and seriousness of the injury. Second, many states also require employers to cover the medical expenses incurred by the employee. This system results in smaller compensation awards than could typically be realized in a personal injury action, in the absence of a worker’s compensation statute. The trade-off struck by worker’s compensation statutes is certainty of recovery for the employee and limitation of exposure for the employer. The U.S. worker’s compensation system should not be construed as less protective of employees or more tolerant of inappropriate practices or policies adopted by employers than the U.K. system. The premiums paid by a company for worker’s compensation insurance are likely experience-based. That, and the cost to a company when an employee misses work to due an injury, provides ample financial incentives for a U.S.-based employer to take steps to minimize worker’s compensation claims. Moreover, Laurence Smith Partner Wolff & Samson PC conduct giving rise to a worker’s compensation claim may subject a U.S.-based company to governmental fines or other regulatory action under statutes, such as the Occupational Safety and Health Act of 1970. Whether operating under the U.K. or U.S. regulatory framework, a company is well advised to be prudent in adopting or changing policies that affect its travelers. ■ Price, Service, Quality: Pick Any Two For Travel Supplier Relationship Management The corporate travel industry has seen a significant change in travel procurement, dating back to the decline and eventual elimination of airline commissions. When airline commissions were at their peak, the focus was on the percentage of the rebate travel agencies offered, with little regard for service or the quality of the associated travel products. As our industry made the inevitable leap to “pay for service,” the travel agencies quickly rebranded themselves as travel management companies and strategic sourcing began to take more control of the travel purchasing experience who read from scripted inprocess. Some of the challenges seen in dex cards. applying standard sourcing disciplines No matter how you view business were due to the mistaken belief that travel, at the end of the day it’s a serv“travel is just anothice industry with er commodity” and varying levels of savings could be services, multiple achieved by selectdistribution chanCEO & Chairman ing the lowest-cost nels and prices that Partnership Travel Consulting provider. We’ve change by the day seen evidence of and sometimes by this shortsighted approach when reser- the minute. Travel is a highly emotionvations were moved to “low-cost reser- al subject for employees—after all, it’s vations centers,” which translated to human cargo that the buyer is packContinued on page 13 offshore agents with minimal industry Andy Menkes 12 Monday, December 15, 2008 www.BTNonline.com Business Travel News http://www.BTNonline.com
Table of Contents Feed for the Digital Edition of Business Travel News - December 15, 2008 Business Travel News - December 15, 2008 Contents Inside Track Profiles In Travel Mgmt Forum Aviation Lodging Ground Transportation Travel Management Meetings Today Washington Wire Business Travel News - December 15, 2008 Business Travel News - December 15, 2008 - Business Travel News - December 15, 2008 (Page 1) Business Travel News - December 15, 2008 - Business Travel News - December 15, 2008 (Page 2) Business Travel News - December 15, 2008 - Contents (Page 3) Business Travel News - December 15, 2008 - Inside Track (Page 4) Business Travel News - December 15, 2008 - Inside Track (Page 5) Business Travel News - December 15, 2008 - Profiles In Travel Mgmt (Page 6) Business Travel News - December 15, 2008 - Profiles In Travel Mgmt (Page 7) Business Travel News - December 15, 2008 - Profiles In Travel Mgmt (Page 8) Business Travel News - December 15, 2008 - Profiles In Travel Mgmt (Page 9) Business Travel News - December 15, 2008 - Forum (Page 10) Business Travel News - December 15, 2008 - Forum (Page 11) Business Travel News - December 15, 2008 - Forum (Page 12) Business Travel News - December 15, 2008 - Forum (Page 13) Business Travel News - December 15, 2008 - Aviation (Page 14) Business Travel News - December 15, 2008 - Aviation (Page 15) Business Travel News - December 15, 2008 - Lodging (Page 16) Business Travel News - December 15, 2008 - Lodging (Page 17) Business Travel News - December 15, 2008 - Ground Transportation (Page 18) Business Travel News - December 15, 2008 - Ground Transportation (Page 19) Business Travel News - December 15, 2008 - Travel Management (Page 20) Business Travel News - December 15, 2008 - Meetings Today (Page 21) Business Travel News - December 15, 2008 - Meetings Today (Page 22) Business Travel News - December 15, 2008 - Meetings Today (Page 23) Business Travel News - December 15, 2008 - Meetings Today (Page 24) Business Travel News - December 15, 2008 - Meetings Today (Page 25) Business Travel News - December 15, 2008 - Washington Wire (Page 26) Business Travel News - December 15, 2008 - Washington Wire (Page 27) Business Travel News - December 15, 2008 - Washington Wire (Page 28)
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