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WCB Procedures

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Egregious conduct - Archived Jan 24, 2024

Procedure summary

Published On

Jan 17, 2024
Purpose

To determine if a worker's suspension or termination from modified work is due to the worker's egregious conduct and whether benefits should be adjusted or suspended as a result.

Description

The decision maker contacts the employer and worker to gather information (and evidence, if applicable) about the worker's conduct that resulted in the suspension or termination of modified work.

The decision maker reviews the information collected and determines whether the Egregious Conduct policy applies. Their decision is reviewed and approved by WCB senior management. Once approved, the decision maker contacts the employer and worker to communicate the decision and any recommendations made. The decision is also documented in a letter sent to the employer and worker.

Key information

Egregious conduct is defined as conduct that is “flagrantly bad” or “staggeringly bad, or obviously wrong, beyond any reasonable degree.”

Egregious conduct does not include all bad or wrong behaviour; termination for cause may be appropriate disciplinary action but is not in and of itself proof of egregious conduct. To trigger financial consequences the worker’s conduct must meet the definition of egregious conduct.

The following are examples of behaviours that could be considered egregious conduct:

  • A breach of an employer or professional safety standard, rule, or policy
  • Violence (including aggressive or threatening behaviour)
  • Sexual harassment or assault involving coercion, threats or violence
  • Deliberate and aggressive destruction of property belonging to the employer, coworkers, or customers
  • Fraud or embezzlement.

The egregious conduct policy is effective January 1, 2021 and applies to all claims, regardless of the date of accident, when egregious conduct results in modified work being suspended or terminated on or after January 1, 2021. When an employer suspends or terminates modified work because of the worker's egregious conduct, benefits are paid as if the worker continued working. In all cases, the worker must be performing modified duties at the time of the egregious behaviour for egregious conduct to be considered.

If the employer terminated the worker and an investigation into the possibility of egregious conduct is required, WCB will place the worker on full wage loss benefits, as required by Section 56(14). Once an egregious conduct decision has been made which confirms the employer withdrew or terminated modified work because of the worker’s egregious conduct, Section 56 (14) does not apply. WCB pays benefits in accordance with Section 56(13)(a), as if the worker was continuing to work.

Notes:

  • WCB will consider any other relevant information brought forward.
  • If the employer temporarily suspends the worker as part of an employer's normal disciplinary processPolicy 04-05, Part II, Application 4, Question 8. [PDF, 0.24MB], the temporary suspension is not considered a withdrawal of modified work.
  • WCB egregious conduct decisions are related only to the application of Policy 04-05 [PDF, 0.19MB] and Section 56 (15.1) [PDF], and do not affect the employer’s ability to set its own company policies or its right to discipline its workers for actions that are contrary to those policies.
  • WCB decision makers also make duty to cooperate decisions when making egregious conduct decisions.

Detailed business procedure

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1. Contact the employer to discuss the claim and gather relevant information

Call the employer to explore why the modified work was suspended or terminated. If the employer is alleging egregious conduct, be sure to obtain all information needed to determine whether the worker's conduct was egregious.

Request any documentation available regarding the conduct, the employer’s disciplinary process and the suspension or termination. Gather a detailed timeline of events to help determine if modified work was performed and if egregious conduct is a factor to consider.

Educate the employer about the egregious conduct policyPolicy 04-05, Part II, Application 4. [PDF, 0.24MB] and investigation process. Explain:

  • That egregious conduct does not apply if the worker was not performing modified duties at the time of the behaviour.
  • That egregious conduct does not include all bad or wrong behaviour; termination for cause may be appropriate disciplinary action but is not in and of itself proof of egregious conduct.
  • That financial consequences to the worker are only triggered if their conduct meets the definition of egregious conduct.Conduct that is “flagrantly bad” or “staggeringly bad, or obviously wrong, beyond any reasonable degree.
  • What benefits to the worker may be impacted if the conduct is considered egregious.

If the employer terminated the worker and an investigation into the possibility of egregious conduct is required, WCB will place the worker on full wage loss benefits, as required by Section 56(14).

If the employer temporarily suspends the worker, confirm that the suspension is part of the employer's normal disciplinary process. If the suspension is part of the employer's normal disciplinary process, the temporary suspension is not considered a withdrawal of modified work. Benefits are paid as if the worker participated in the modified work. Refer to Policy 04-05, Part II, Application 4, Question 8.

In cases where modified work was not offered before a suspension or the worker was not performing modified work at the time of the egregious behaviour, go to the Duty to Cooperate procedure to determine entitlement to benefits.

Once an egregious conduct decision has been made which confirms the employer withdrew or terminated modified work because of the worker’s egregious conduct, Section 56 (14) does not apply. WCB pays benefits in accordance with Section 56(13)(a), as if the worker was continuing to work.

Administrative tasks

Add a file note (Cooperation/Egregious Conduct) documenting the discussion, and reference any supporting documentation provided by the employer.

Egregious Conduct Info Required (IN063F)

Duty to Cooperate

2. Contact the worker to discuss the claim and gather relevant information

Call the worker to explore their perspective of why their modified work was suspended or terminated.

Educate the worker about the egregious conduct policyPolicy 04-05, Part II, Application 4. [PDF, 0.24MB] and investigation process.
Explain:

  • That egregious conduct does not apply if the worker was not performing modified duties at the time of the behaviour.
  • That egregious conduct does not include all bad or wrong behaviour; termination for cause may be appropriate disciplinary action but is not in and of itself proof of egregious conduct.
  • That financial consequences to the worker are only triggered if their conduct meets the definition of egregious conduct.Conduct that is “flagrantly bad” or “staggeringly bad, or obviously wrong, beyond any reasonable degree.
  • What benefits to the worker may be impacted if the conduct is considered egregious.

Review the information obtained from the employer and ask whether the worker agrees with this information, has other information to provide, or has any concerns. Gather any supporting documentation from the worker.

Administrative tasks

Add a file note (Cooperation/Egregious Conduct) documenting the discussion and reference any supporting documentation provided by the worker.

3. Complete the investigation and make a recommendation

Review the claim and determine whether sufficient information has been gathered to make a decision. If additional information is needed from the employer send the appropriate letter. Confirm wage loss benefits continue to be paid to the worker during the investigation period.Refer to the Key Information section for information.

Once the investigation is concluded document the details of the investigation in the egregious conduct fact summary template. Request that a supervisor review all relevant information provided and if approved submit it to the director and Associate Vice President for review.

The supervisor will add a file note indicating whether further information is required or if the recommendation is approved. If the supervisor:

  • Indicates further information is required, go to the next step.
  • Agrees with the recommendation they will submit it to the director(s).

The director and/or Associate Vice President will meet with the supervisor and decision maker to review the claim and ensure all information has been considered prior to applying the egregious conduct policy.

Following the discussion with the director(s) the supervisor will add a file note documenting the outcome of the meeting. If the file note indicates that:

  • Further information is required, go to the next step.
  • The egregious conduct recommendation has been approved, go to Step 5.

Administrative tasks

Egregious Conduct Investigation (IN063F)

Complete the Egregious Conduct Fact Summary Template and send it to the claim.

Add a file note (Cooperation/Egregious Conduct) documenting the recommendation and send to the supervisor for review.

Note: Supervisors send an email to the Director of Operations & Innovation and the Associate Vice President Operations requesting they review the egregious conduct recommendation.

4. Review and action the recommendation(s)

Call the worker and employer and discuss the additional information requested by the supervisor or director(s) review.

Once completed, return to Step 3 to send the claim back to the supervisor or director(s) for review and approval.

Administrative tasks

Add a file note (Cooperation/Egregious Conduct) documenting the discussion.

5. Communicate the decision

When the worker's conduct was determined to be:

  • Egregious, contact the worker and employer to discuss the decision and the impact to benefits and services. Advise the employer or worker if they met or did not meet duty to cooperate.
  • Not egregious, contact the worker and employer to explain the decision, ensuring they understand the basis for the decision and why it does not meet the egregious conduct policy. Advise the employer or worker if they did or did not meet duty to cooperate.

Once an egregious conduct decision has been made which confirms the employer withdrew or terminated modified work because of the worker’s egregious conduct, WCB pays benefits in accordance with Section 56(13)(a), as if the worker was continuing to work. Wage loss benefits paid to the worker during the investigation period will be deleted and the resulting overpayment will be forgiven.

Administrative tasks

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Add file notes (Cooperation/Egregious Conduct) documenting the decision and discussions with the worker and employer. An additional Egregious Conduct fact summary sheet is not required.

Follow the Duty to Cooperate [PDF, 0.17MB] procedure to make a D2C decision.

6. Implement the decision

Draft the Egregious Conduct decision letter and obtain the necessary approval prior to sending it.

  • Not egregious, and the worker is:
    • Cooperating with their medical or re-employment plan, continue to manage the claim.
    • Not cooperating with their medical plan or re-employment plan, go to Duty to Cooperate [PDF, 0.17MB].
  • Egregious and the worker is:
    • Cooperating with their medical or re-employment plan, send the Egregious Conduct Decision letter explaining the change in their benefits and continue to manage the claim.
    • Not cooperating with their medical or re-employment plan:
      1. Determine if the worker has permanent work restrictions or is likely to have permanent work restrictions had they participated in the recommended treatment.
      2. Send the Egregious Conduct Decision letter explaining the change in their benefits.
      3. If the worker has confirmed permanent work restrictions obtain approval for a new temporary partial disability benefit. If permanent work restrictions are not yet confirmed, the claim can be inactivated until the worker advises that they will participate in the services necessary to confirm permanent work restrictions.

Notes:

  • Although the worker may not be eligible for wage loss benefits, the worker continues to be eligible for medical aid and any other appropriate benefits. In all cases, WCB monitors the worker’s recovery and adjusts benefits as necessary.
  • The egregious conduct provision in the Workers’ Compensation Act appliesSee Section 56(15.1) for more details. only to temporary disability benefits and does not affect benefit eligibility if the injury results in permanent disability. If the worker has permanent restrictions, they are entitled to benefits that flow from that decision (that is, re-employment benefits and services).

Administrative tasks

Send an email to the Director of Operations & Innovation and the Associate Vice President Operations asking them to review the draft letter. Once the directors approve the letter, send a copy to the employer and worker.

Egregious Conduct – Decision (IN063E) letter

Follow the:

  • Duty to Cooperate [PDF, 0.17MB] procedure to determine the applicable change in benefits
  • Re-employment procedure to obtain approval for a new temporary partial disability benefit.

Complete the ‘Duty to Cooperate/Egregious Conduct’ screen.

Send the decision through the appropriate levels of authority for approval by selecting ‘Complete’. For more information refer to the Duty to Cooperate/Egregious Conduct help page.

Re-employment Services

Notes:

  • Claims determined to have:
    • Met the egregious conduct policy require the exception to be 'accepted' up to the director level.
    • Not met the egregious conduct policy will be 'not accepted' at the supervisor level with there being documentation to support the appropriate level of authority (director) was obtained.
  • A covering supervisor cannot approve an exception for egregious conduct having been met. If it is necessary to have the exception approved in the supervisor's absence, the director will need to approve it.

Supporting references

Policies

  • 04-05, Part II, Application 4; Temporary Modified Work Programs
  • 05-01, Part II, Application 1; Overpayment Recovery

Workers’ Compensation Act

Applicable sections

  • 54 – Reduction or suspension of compensation
  • 56 (13a)(14)(15.1) – Compensation for disability

General Regulation

Applicable sections

Related Legislation

Applicable sections


Procedure history

December 13, 2022 - January 16, 2024
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