Are employees compensated when injured while violating company rules?

By Beth Giebel, Esq.

Employers can be surprised and frustrated to learn that an employee who was injured while violating company safety rules can still receive workers’ compensation benefits.

This isn’t always the case.

In these situations, it is possible to deny liability for an injury on the basis of the “prohibited act” defense, but the employee’s injury must occur as a direct result of a violation of a clearly stated, and consistently enforced, prohibited act, policy or rule.

A Minnesota case illustrates the applicability of this defense.

In Smith v Metro Transit , the employee, a bus driver, was driving his route when a passenger wanted to get off at a non-designated stop. The employee did not feel it was safe, so declined to stop. At the next designated stop, the passenger spat in the employee’s face as he exited the bus. The employee then got off the bus and chased after the passenger. When the employee caught up with the passenger, the passenger shoved the employee, causing him to fall and injure his shoulder.

Employee injured while violating policy

The employer, Metro Transit, had published a bus driver’s guide that established guidelines for dealing with unruly passengers. Their bus drivers were instructed to “avoid physical confrontations wherever possible and were told to refrain from leaving the bus operator’s seat to settle disputes unless it was necessary to do so in self-defense.”

The employee had previously acknowledged these work rules and had been disciplined for violating them.

The compensation judge denied the employee’s claim and found that the injury occurred as a direct result of the employer’s prohibited act. The Minnesota Workers’ Compensation Court of Appeals affirmed the denial of compensation, and reviewed the six factors to consider in determining whether the prohibited act defense would disallow the employee’s claim:

  • Whether the employee knows of the prohibition
  • Whether the prohibition was customarily observed
  • Whether the employer took reasonable steps to enforce the prohibition
  • The reason for the prohibition
  • Whether the performance of the prohibited act was unreasonably dangerous
  • Whether it was reasonably foreseeable by the employer that the expressly prohibited act would occur

Violations of safety standards

Violations of standard safety procedures – such as failure to wear a hard hat or eye protection – do not typically bar compensation if an employee is injured while otherwise performing his or her authorized employment activity.

Failure to abide by safety policies and procedures may provide the basis for disciplinary action against the employee, but the presence or absence of safety equipment does not necessarily give rise to a prohibited act defense.

Depending on the laws in your state, failure to follow safety rules could result in decreased compensation.

For example, in Wisconsin, compensation is decreased by 15 percent if an injury is caused by the employee’s failure to use a safety device – provided in accordance with a statute or with a Wisconsin Department of Workforce Development administrative rule – if the device is adequately maintained and its use is reasonably enforced. Compensation is also reduced if the injury is caused by the employee’s failure to obey a reasonable safety rule adopted and enforced by the

Create a ‘prohibited acts’ policy

Having policies that clearly articulate prohibited practices at the workplace can improve the safety and health of your employees, decrease costs and missed work days, help control your workers’ compensation premium, and send a strong message that may warrant a denial of compensation for certain injuries.

But having a policy is just the first step. Be sure to:

  • Clearly identify prohibited acts
  • Communicate prohibitions to employees
  • Consistently enforce policies
  • Discipline violations of the policies

This will help make your policy as effective as possible in preventing injuries among your employees.

This is not intended to serve as legal advice for individual fact-specific legal cases or as a legal basis for your employment practices.

 

Originally published August 2019; updated August 2025.

Hands-free driving: Safety and the law

A new hands-free driving law went into effect in Iowa on July 1, 2025, highlighting legal aspects of safe driving.

Iowa’s law is similar to those in other states and prohibits drivers from using electronic devices unless the device is in a hands-free setting. The statute bars drivers from holding their phone, which includes:

  • Typing
  • Scrolling
  • Entering GPS coordinates
  • Streaming video
  • Viewing content
  • Making calls unless voice activated

State officials are allowing an initial warning period through the end of 2025.

“Iowa’s new hands-free law marks a pivotal moment in our fight against distracted driving; it’s an unprecedented opportunity to fundamentally change driver behavior,” Brett Tjepke, chief of the Governor’s Traffic Safety Bureau, said in a press release . “By embracing this change, we can drastically reduce fatalities and serious injuries on our roads, making Iowa safer for everyone.”

Safe driving

Not using a phone while driving is not only the law in many states, it’s also a good safety practice.

The National Highway Traffic Safety Administration (NHTSA) reports that 3,275 people died in distraction-affected crashes in 2023.

While more than 30 states have laws related to driving and cellphone use, companies can take the extra step of addressing the matter in company policy.

SFM provides a sample cellphone policy CompTalk in our resource catalog. The example policy prohibits any use of phones while driving for work, regardless of an employee’s use of hands-free devices. It requires employees pull over and stop before calling, answering, or texting using a cellphone.

Other safe driving resources:

Hands-free laws in other states

Minnesota

Minnesota’s hands-free law went into effect in 2019 .

Accessing or posting on social media, streaming videos, searching a website or otherwise using a phone is prohibited. For repeat offenders, the fine can be $300 or more, including court fees.

Wisconsin

In Wisconsin, its law went into effect in 2017 and is slightly different from those in Iowa and Minnesota:

  • Texting while driving is against the law for all drivers
  • Hand-held or hands-free cell phone use is prohibited for any driver with a probationary license or instruction permit, except to report an emergency
  • No driver may use a hand-held mobile device when driving through a road work zone, except to report an emergency

Conclusion

Safety-conscious employers should review the laws in their state regarding cellphone use and driving, and ensure employees understand the dangers of distracted driving.

Independent contractors and work comp liability

If you hire a subcontractor that lacks the proper workers’ compensation coverage — or doesn’t qualify as an independent contractor — it could put you at risk for liability if a work injury occurs, depending on which state the work is being performed in.

Here are some tips to avoid this situation, where applicable:

  • Confirm that the subcontractor is an independent contractor as defined by your state’s laws
  • If the subcontractor uses employees, ask for a certificate of insurance as proof of workers’ compensation coverage

Subcontractors with no employees can choose whether to purchase workers’ compensation insurance for themselves in most states. If they do have coverage, ask for a certificate of insurance for verification. Note that certificate of insurance verification alone does not qualify a subcontractor as an independent contractor. They still must meet all of the state’s criteria.

If they don’t have coverage: Request a copy of the subcontractor’s independent contractor registration form if applicable in your state. Some states have a registration process for independent contractors, and some don’t. Otherwise, ask for a copy of the subcontractor’s current license.

Note that a contractor registration form alone does not qualify a subcontractor as an independent contractor. You should also:

  • Check to see that the subcontractor is registered with the state as a business entity
  • Request a Certificate of Insurance for General Liability covering the dates the work was performed with limits of at least $300,000

Other considerations

Employers must also be aware of their respective state requirements. Every state is different, but in most cases, for a worker to be considered an independent contractor for workers’ compensation purposes, the worker must have:

  • Control over how the work is performed
  • Ability to realize financial loss or gain based on how a project goes
  • Ownership of equipment to complete the job
  • Compensation on a per-job basis

These are just some basic criteria, and most states have additional requirements beyond these. Get details through your state’s department of labor. For example, the labor departments in Minnesota Wisconsin and Iowa  provide additional information online.

There are also industry-specific considerations. In Minnesota, for example, many job sites require drivers in varying capaci­ties. There is a statute that defines independent contractors in the “trucking and messenger/courier industries,” but those industries are undefined. An operator of a car, truck or van is deemed an employee unless all criteria are present. These include:

  • Owning or leasing the vehicle
  • Being responsible for the maintenance and all related operating costs
  • Being compensated based on the work performed, and not an hourly basis
  • Being substantially responsible for the means and manner of performance
  • Having a written contract specifying the relationship of independent contractor

A general contractor should assume any driver will be deemed an employee unless all of the statutory criteria are met.

Your agent can help

Lastly, if you need help determining whether a subcontractor is an independent contractor or employee, ask your agent for guidance.

They can help you understand the implications to your workers’ compensation coverage.

Loss prevention insight from the experts

Preventing work injuries can save you money, time and stress, but those aren’t the most important reasons to establish a strong workplace safety program.

“Always remember that at the center of every workers’ compensation claim is a person and an injury can interrupt their life, their family, their hobbies and more,” said SFM Loss Prevention Specialist Mike Fetting. “It’s important not to lose sight of that fact.”

In addition to the impact to the employee, work injuries can lower morale among coworkers and may increase workers’ compensation premiums.

The only controllable item in an organization’s workers’ compensation premium cost is its experience modifier (e-mod), which is directly impacted by claim frequency and severity. When a claim introduces costs, it affects the company’s e-mod for three years.

If your claim history is average among similar types and sizes of businesses, your e-mod will be 1.0. Each claim that results in a cost has the potential to increase your e-mod above 1.0, meaning worse than your peers, which can directly increase the premium amount you pay. The lower your e-mod is, the less you pay in premium.

Hazard assessments and developing controls

Every safety program should include an ongoing process to identify workplace hazards, including anything within the scope of a job duty that could cause physical or mental harm to employees. For example, loud noise levels, wet floors or cracks in the parking lot could all be workplace hazards.

Depending on where employees are working, hazards could exist inside, outside, on a jobsite or even over the road, said SFM Loss Prevention Specialist Dana Mickelson.

Hazards can arise from materials, equipment, tools, or machines used by employees or within the workplace. They can even arise from people such as outside contractors, other employees who create unsafe conditions for others, or supervisors who do not correct issues.

There are several assessment methods that safety and loss prevention leaders can use to identify hazards.

Identify loss history trends: For example, if an organization had 10 injuries last quarter and five are slips and falls from a wet floor, that should be a good indication to focus on slips and falls. Even if there aren’t any trends, employers can still use loss history to determine which jobs or areas to focus on.

Use other records to find risks and hazards to focus on: Examples include inspection reports, data safety sheets and job hazard analysis.

Complete inspections: Inspections can be done by a member of your safety committee, an employee, a supervisor or other leader, or a third party. They should be completed after incidents occur as part of the investigation process. We also recommend performing inspections periodically at different intervals, such as daily, monthly, or annually, depending on the hazard.

Conduct investigations: Injuries and near misses should always be investigated. The steps of an investigation include collecting facts – who, what, when, where and how – and then analyzing the facts to determine the root causes. Once the root causes are identified, decide what corrective actions to take for each root cause.

Have discussions: Ask employees about their safety concerns because they know and understand their job the best. Consider developing a safety committee consisting of different disciplines and departments to discuss hazards. During the discussions, think about potential emergency situations, and routine and non-routine tasks, such as those completed only once a year.

Prioritize the hazards identified

Some hazards will have easy fixes or can be corrected on-the-spot, but if there are several hazards without quick fixes, use a risk matrix to help you prioritize. A risk matrix is a grid where you plot likelihood of occurrence on one axis, and severity on the other.

First, determine the likelihood that an incident or event will occur based on a numeric scale – for example, one represents the lowest likelihood and four is the highest. Then, determine the severity if an incident or event were to occur, with one being low severity and four being catastrophic. For example, if you determine a hazard has a likelihood of three, and a severity of two, that is a medium-high risk hazard and should be given higher priority than the low-risk hazards.

Risk matrix: Use a risk matrix to help you prioritize which hazards to address first

Hierarchy of controls

After prioritizing hazards, determine what controls (i.e., corrections) to put in place. There are several options, and some are more effective than others. These options, ranked from most effective to least effective, are:

  • Elimination: Physically remove the hazard
  • Substitution: Replace the hazard
  • Engineering controls: Isolate people from the hazard
  • Administrative controls: Change the way people work
  • Personal protective equipment (PPE): Protect the worker with personal protective equipment

Hierarchy of controls from most effective to least effective: 1) Elimination: Physically remove the hazard. 2) Substitution: Replace the hazard. 3) Engineering controls: Isolate people from the hazard. 4) Administrative controls: Change the way people work. 5) PPE: Protect the worker with Personal Protective Equipment

There will most likely be several controls for each hazard. Some controls will be an immediate fix, and in most cases, you need to determine controls that will result in improved and sustainable corrections.

Finally, implement the controls. Develop a plan to document progress and set accountability. The plan should include the hazard, controls, target due dates, who is responsible for implementation, and a completion date.

Keep in mind that performing assessments and determining and implementing controls is a continual, repeated process.

To learn more about building and maintaining your safety and loss prevention program visit the Safety tab on our website. You can also reach out to your SFM contacts.

 

Originally published September 2022; updated August 2025.

Talking about safety: Techniques for effective safety training and communication

A strong safety culture starts with a high level of safety awareness among your employees. Getting there requires consistent, effective communication between leadership and front-line workers.

When communicating with employees about safety, leaders should start by explaining why it’s important to your organization — that leadership cares about its employees, and your culture is one where coworkers care about each other.

“The employees don’t care how much you know until they know how much you care about them personally,” said SFM Loss Prevention Specialist Steve Lichtenberg. “Lead with passion and build a rapport with the employees.”

Tips for high-impact safety training

Newer employees are at the highest risk for injuries, so it’s important to start providing safety training right away with new employee orientation. After that, plan on regular check-ins and recurring training throughout that first year and continuing during the tenure of their employment.

For ongoing safety training, it can be helpful to create a training topic checklist to follow throughout the year. To get a complete picture of the hazard exposures employees have, the training schedule should include:

  • High hazards
  • Loss trends
  • Near miss and incident-only reporting
  • Compliance

If possible, try to offer training frequently in smaller segments, as employees tend to lose focus over long sessions.

Variety is key with recurring training to keep staff engaged and help boost understanding, and the educational method used to train can have an impact on the effectiveness of each training session, according to SFM Senior Loss Prevention Representative Sara Cooper.

Safety training methods from most to least effective

Our safety professionals ranked common safety training methods from most to least effective in terms of employee understanding and retention. It’s important to note that everyone learns differently, so it’s best to use a variety of the listed methods.

  1. On the job training: Employees first hear, then see, then do
  2. Train the trainer: Being trained to teach someone else
  3. Job shadowing: Learning from a fellow employee
  4. Toolbox talks: Leading short safety talks regularly
  5. Computer-based training: While efficient, employees can’t ask questions
  6. Lecture: Good for relaying a small amount of information to a large group

Techniques for safety conversations

Formal safety training is important, but it’s also important to try to work conversations about safety in throughout the workday. It may take some practice at first, and it pays to be intentional.

SFM Loss Prevention Specialist Mike Fetting recommends a few types of safety conversations to have on a regular basis:

The walk around conversation – In this conversation an employee and supervisor might talk about the employee’s goals and plans for safety. The supervisor could also ask the employee what safety measures the organization does well and what needs improving.

The safety feedback conversation – These can be quick compliments to an employee on a job well done with a follow up question about how the employee made it happen.

The “why I care about safety” conversation – This tends to be very personal. Some examples include an employee’s past work experience, a family member’s safety experience, or simply that the individual cares about their coworkers.

Modified Gemba Walk – Drawing on a Lean management philosophy technique, this conversation starts by visiting an employee at their workstation and trying to learn a task. That can be done by watching them do the work, asking questions about how the task is done, and if a potential hazard is identified, asking the individual why they do the task that way. The idea here is that a safety manager or supervisor can better understand the job and process if they interact with the employee and try to see things from their perspective.

During your conversations, be sure to take the opportunity to learn from your employee.

“When it comes to safety conversations with employees, listening more and talking less can sometimes be the best approach,” Fetting said.

Encourage employee feedback

Communication is a two-way street and getting feedback from employees at all levels of the company is an important part of an effective safety program. Encouraging safety feedback starts with trust. Employees need confidence in leadership to act on feedback they provide, and they need to trust their coworkers to speak up when they observe safety concerns.

Safety leaders can encourage employee feedback by:

  • Promoting hazard reporting
  • Implementing near miss reporting
  • Adding a suggestion box for indirect feedback
  • Making it safe to speak up (no negative repercussions for reporting hazards or unsafe behaviors)

Once an employee provides feedback, follow up in several ways:

  • Thank the employee for their feedback and acknowledge their concern
  • Work to understand the situation better by going back to the employee and getting more information
  • Investigate quickly
  • Provide timely assessments or answers for every report or suggestion, regardless of whether you were able to make changes
  • Share any safety changes made with the company by email or newsletter and celebrate the successful use of the reporting process
  • Reward the employee for their effort

Safety training and communication play a fundamental role in a successful loss prevention program. To get safety resources and learn more about building a loss prevention program visit the Safety page or reach out to your SFM loss prevention representative.

Top seven workplace safety tips

Want to make your workplace safer, but unsure where to start? Or maybe you want to be sure you have all the basics covered before you delve deeper in a certain area.

Either way, these seven essentials, identified by SFM’s loss prevention staff, will help make your organization a safer place to work.

1. Know the hazards

To reduce your risk of work-related injury or illness, you must first know the particular hazards of your job or workplace.

Help identify hazards by downloading this free workplace safety analysis checklist . You can also learn about risks by analyzing all workplace injuries to find the root causes and asking your staff for input.

2. Reduce workplace stress

Job stress has been linked to health problems, higher health care costs, increased risk of workplace accidents and more. Take steps to prevent stress from interfering with employees’ productivity, health and well-being with these strategies to reduce stress in the workplace.

3. Get up and move

Encourage employees to take breaks and move around regularly throughout the day. Simply working in small breaks for movement can make a big difference in combating the dangers of staying in a static position all day long.

4. Pay attention to ergonomics

Use ergonomically designed furniture and equipment , and rearrange work areas to maintain a neutral posture and keep everything within easy reach.

5. Use safe lifting techniques

Use four safe moves when picking up and carrying heavy loads: Lift from a position of power, keep the load close to your body, use a staggered stance and don’t twist.

And watch the weight — the National Institute for Occupational Safety and Health recommends limiting manual lifting to a maximum of 35 pounds for the average person. Check out more safe lifting techniques or our lifting safety video  to see the technique in action.

6. Ensure employees wear personal protective equipment

Personal Protective Equipment (PPE) can dramatically reduce risk of injury if worn correctly. Examples of PPE include gear such as earplugs, hard hats, safety goggles, gloves, full-face masks and safety shoes.

7. Encourage employees to speak up

Ask for input from employees often, and ensure everyone feels comfortable bringing safety hazards to their supervisors’ attention. Employees should feel that their concerns are being heard and acted upon by company leaders.

Workplace safety matters to every industry

When we think about workplace safety, images of construction workers hanging off skyscrapers or power line technicians in cherry pickers often pop into our heads, but there are hazards in any workplace — even office environments.

According to the National Safety Council , the top three causes of workplace injuries accounting for at least one day away from work from 2021-22 were:

  • Overexertion in lifting (such as a strain or sprain caused by lifting something too heavy)
  • Contact with an object or equipment (being hit by something)
  • Slips, trips and falls

While some injuries might be unlikely in an office or other relatively low-risk environment, certainly a slip-and-fall or lifting injury is possible anywhere.

Reducing hazards as much as possible and training employees about the risks can go a long way toward prevention. SFM offers a number of free resources to prevent indoor slips and fallswinter slips and falls and lifting injuries.

 

Originally published June 2017; updated August 2025.

 

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