Workers Comp Class Code Changes After Policy is Issued

A new client, has asked me to review their recent final audit, and reclassification by the Workers’ Comp carrier. The policy period is Jan 27, 2013 to 2014, and the client is a small medical device manufacturer.   The Workers’ Comp policy was issued using one class code, 8859, Computer Programmers!  While lower rated class codes are often used on medical device startups while in R&D, 8859 is never one of them. In the process of completing the audit for the period, the auditor from the carrier discovered the...

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Experience Rating in California

The WCIRB develops advisory pure premium rates for workers’ compensation insurance, and rules and regulations with respect to the California Experience Rating Plan,  subject to the approval of the Insurance Commissioner. In conjunction with the ratemaking activities, the WCIRB collects premium, payroll and loss information incurred on all workers’ compensation policies that provide California coverage. The individual data collected for each employer is further compared to other employers in California based on the primary class...

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Exempt vs. Non-Exempt

Extracted from a recent message by Dan Pyne, of Hopkins and Carly, a San Jose based law firm, “Beware of the Payroll Implications of Temporary Shutdowns During Holidays.” In general, employers are obligated to pay exempt employees their full salary during any week in which the exempt employee performs any services. If an exempt employee does not work on a given day for personal reasons (such as vacation, for example), the employer is typically relieved of its obligation to pay the salary on that day. If an exempt employee does...

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Can the Wife of the Owner be Excluded from Workers’ Comp?

The owners of a privately held closed corporation employ their wives in the company.  Since the owners can elect to be excluded from Workers’ Comp, can the wives be excluded also? If the entity were a sole proprietorship or partnership, the answer is yes, wives could be excluded, as could young children who are still living at home. However, a ‘corporation’ has no wives and children, only employees.  As such, wives must be covered. As a ‘solution’ to this issue, wives may be made officers in the company, and...

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The Workers’ Comp Audit

A request for information is received by my client from their Workers’ Comp carrier, a few weeks after the expiration date of their policy. Here is a list of the information we will be reviewing: Detailed description of operations Website address Email address Number of locations Current number of employees Officers/Owners names, State located, duties, stock/ownership % titles and individual payrolls; Need all officers, owners   and stockholders – must equal 100% Federal ID number for each entity Type of entity–if LLC, how...

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A New York State of Workers’ Comp Mind

We stumbled on this requirement of the New York State Workers’ Comp Law, from September of 2007, the following Out-of-State Employers Policy. Full NY Workers’ Compensation Coverage Required An out-of-state employer with an individual or individuals working in New York State is required to have a full NYS workers’ compensation policy if that employer (as defined in the WCL) meets ANY of the following criteria: 1) The employer is working as a contractor/general contractor/subcontractor on a construction project in New York. 2)...

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