The OSHA incident rate calculates how frequently employees are injured at a specific firm in comparison to its competitors.
The U.S. Occupational Safety and Health Administration (OSHA) is the agency charged with enforcing and monitoring compliance of federal workplace safety regulations. A method OSHA employs to measure compliance with these regulations is the calculation of the workplace injury incidence rate. This rate measures how frequently workplace injuries occur at a specific company. The calculation uses data compiled by the Bureau of Labor Statistics (BLS) to measure the safety of a company's workplace in comparison to peers of similar size.
Non-Fatal Injuries and Days Lost
The BLS gives employers forms to complete that allow them to calculate the OSHA incidence rate. These forms include calculating the number of non-fatal injuries or illnesses that occur on the job site, as well as the days lost due to those injuries. The calculation of days lost can include both days when the employee was away from work and in recovery, and days in which the employee's injuries forced a transfer or restrictions in job duties.
Total Hours Worked
Employers must also calculate the total hours worked by all employees. The calculation for "hours worked" does not include vacation days, sick days, parental leave or other forms of paid leave. For non-hourly employees, such as commission-based sales staff, salaried employees or drivers who get paid by the mile, employers can estimate their hours. These estimates can be based on their scheduled hours, or use the baseline figure of eight hours a day. Employers can use their BLS or OSHA forms to determine the hours worked if they have completed their forms, or they can use payroll records if the government forms are not available.
Calculating OSHA Incidence Rate
The calculation of the OSHA incidence rate
(Incidents X 200,000) / Total Hours Worked = Incidence rate
The 200,000 figure comes from multiplying 40 hours a week by 50 weeks a yea_r for _100 employees:
40 hours/week x 50 weeks/year = 2,000 hours/year/employee
2,000 hours/year/employee x 100 employees = 200,000 hours/year
Incidence Rate Example
Suppose ABC Construction Company has 300 full-time employees. Those employees suffered 15 non-fatal injuries during 2014. The incidence rate is calculated as:
(15 x 200,000)/600,000 = 3,000,000/600,000 = 5.0
By comparison, XYZ Construction Company has 400 full-time employees. Those employees suffered 18 non-fatal injuries in the same year. The incidence rate is calculated as:
(18 x 200,000)/800,000 = 3,600,000/800,000 = 4.5
Although XYZ had more injuries, ABC had a higher incidence rate.