As a Loss Control Consultant for a WC Insurance company, I see a varity of safety incentive programs. As metioned in other replies you have to avoid setting-up you program that employees do not report injuries. I see two ways of doing it: 1) have employees eligable for it till they are eligable for salary compensation in wc and when you see employees limping, rubbing, etc., ask why. 2) as others have metioned make it behivor based. Attending safety meeting, training, etc. making safety suggustions

While I agree with all previous replies to be proactive and preventive there is also a Cal/OSHA reason. Per Cal/OSHA regulations both the hiring employer and the controlling employer can be help accountable and be fined. Your OSHA may not have this rule, but what starts in California often end up in many more states.