FORMULAS For CALCULATING RATES1 PDF

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FORMULAS for CALCULATING RATES

OSHA Recordable Incident Rate


Lost Time Case Rate
Lost Work Day Rate (LWD)
DART Rate (Days Away/Restricted or Job Transfer Rate)
Severity Rate

USEFUL DEFINITIONS

OSHA RECORDABLE INCIDENT RATE - a mathematical calculation that describes


the number of employees per 100 full-time employees that have been involved in a
recordable injury or illness.

TOTAL INCIDENT RATE – a mathematical calculation that describes the number of


recordable incident per 100 full-time employees in any given time frame.

LOST TIME CASE RATE – a mathematical calculation that describes the number of
lost time cases per 100 full-time employees in any given time frame.

LOST WORKDAY RATE – a mathematical calculation that describes the number of


lost workdays per 100 full-time employees in any given time frame.

SEVERITY RATE – a mathematical calculation that describes the number of lost days
experienced as compared to the number of incidents experienced.

DART RATE - a mathematical calculation that describes the number of recordable


incidents per 100 full time employees that resulted in lost or restricted days or job
transfer due to work related injuries or illnesses.

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INCIDENT RATE(S) USES

Incident rates, of various types, are used throughout industry. Rates are indications only
of past performance (lagging indicators) and are not indications of what will happen in
the future performance of the company (leading indicators). Incident rates have been
standardized, so that OSHA and other regulatory agencies can compare statistically
significant data, and determine where industries may need additional program assistance.
OSHA uses the recordable incident rates to determine where different classifications of
companies (manufacturing, food processing, textiles, machine shops, etc.) compare to
each other with regard to past safety performance. Although OSHA could potentially use
this data for enforcement action, unless incident rates are consistently high for a small
company over a number of years, they will not normally target particular industries or
companies for enforcement action.

OSHA has established specific mathematic calculations that enable any company to
report their recordable incident rates, lost time rates, and severity rates, so that they are
comparable across any industry or group. The standard base rate for the calculations is
based on a rate of 200,000 labor hours. This number (200,000) equates to 100 employees,
who work 40 hours per week, and who work 50 weeks per year. Using this standardized
base rate, any company can calculate their rate(s) and get a percentage per 100
employees.

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CALCULATIONS

OSHA Recordable Incident Rate

The OSHA Recordable Incident Rate (or Incident Rate) is calculated by multiplying the
number of recordable cases by 200,000, and then dividing that number by the number of
labor hours at the company.

Number of OSHA Recordable Cases X 200,000


IR = -----------------------------------------------------------
Number of Employee labor hours worked

Rate Calculation Example - a company has 17 full-time employees and 3 part-time


employees that each work 20 hours per week. This equates to 28,400 labor hours each year.
If the company experienced 2 recordable injuries, then the formula works like this:
2 x 200,000 400,000
IR = --------------- IR = ---------- IR = 14.08
28,400 28,400

What is now known is that for every 100 employees, 14.08 employees have been involved in
a recordable injury or illness. Please note that smaller companies that experience recordable
incidents will most likely have high incident rates, or the incident rates will fluctuate
significantly from year to year. This is because of the small number of employees (and hence
the lower number of labor hours worked) at the company. Calculations are more meaningful
at larger companies that have a higher labor hour count.
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Lost Time Case Rate (LTC)

The Lost Time Case Rate is a similar calculation, only it uses the number of cases that
contained lost work days. The calculation is made by multiplying the number of incidents
that were lost time cases by 200,000 and then dividing that by the employee labor hours at
the company.

Number of Lost Time Cases x 200,000


LTC Rate = -----------------------------------------------------
Number of Employee Labor Hours Worked

Rate Calculation Example--assume that one of two recordable cases had lost work days
associated with the incident. The calculations would look like this:

1 x 200,000 200,000
LTC Rate = ---------------- LTC Rate = ---------- LTC Rate = 7.04
28,400 28,400

What is now known is that for every 100 employees, 7.04 employees have suffered lost time
because of a work related injury or illness.

DART Rate (Days Away/Restricted or Job Transfer Rate)

The DART rate is relatively new to industry. This rate is calculated by adding up the
number of incidents that had one or more Lost Days, one or more Restricted Days or that
resulted in an employee transferring to a different job within the company, and
multiplying that number by 200,000, then dividing that number by the number of
employee labor hours at the company.

Total Number of DART incidents x 200,000


DART Rate = -----------------------------------------------------
Number of Employee Labor Hours Worked

Rate Calculation Example - assume that one of two recordable incidents resulted in limited
or restricted work activity that necessitated a job transfer to a different position in the
company. The first was a broken leg that had only lost time associated with it (no
restriction or transfer). The calculations would look like this:

2 x 200,000 400,000
DART Rate = ---------------- DART Rate = ------------- DART Rate = 14.08
28,400 28,400

What is now known is that for every 100 employees, 14.08 incidents resulted in
lost or restricted days or job transfer due to work related injuries or illnesses.
Severity Rate (SR)

The severity rate is a calculation that gives a company an average of the number of lost
days per recordable incident. Please note, that very few companies use the severity rate as
a calculation, as it only provides an average. The calculation is made by dividing the total
number of lost workdays by the total number of recordable incidents.

Total number lost workdays


SR = ---------------------------------------------
Total number of recordable incidents

Rate Calculation Example – assume there were 5 lost workdays and two recordable
incidents. The severity rate calculation would look like this:
5
SR = -------- SR = 2.5
2
What is now known is that for every recordable incident at the company, an average of
2.5 days will be lost due to those work related injuries and illnesses.

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