[IASHRM] Salary Continuation During Work Comp Related Absence

[Kristi Dawson]

We are looking for some insight into what the common practice among Central IA employers is regarding salary continuation during a work-related absence.

Our practice has been to continue the injured employee's salary under our Short-Term Disability policy for the period of time the injured worker is on leave, off-setting STD with any income the employee receives from work comp. benefits, thus making them "whole".  We are being advised that this is not desirable as it creates a "moral hazard" providing incentive for the employee not to return to work.

Would you be willing to share with us your practices, and why you have chosen to handle salary freeze or salary continuation during work related absences the way you have?