June 18, 2020

COVID-19 Claims Excluded from Experience Modification Rating

On June 17, the Insurance Commissioner of California announced his approval of an NCPFC-supported special regulatory filing to make rule changes to the California Workers’ Compensation Uniform Statistical Reporting Plan—1995 (USRP) and the California Workers’ Compensation Experience Rating Plan—1995 (ERP)

The most significant portion of the decision was the approval of the regulations that would exclude COVID-19 claims from a contractor’s experience modification rate (EMR). These proposed regulations were of critical importance in protecting contractors from significant increases in their EMR related to COVID-19 incidents. 

Below is a quick summary of the approved rules:

Exclude COVID-19 Claims from Experience Rating

Claims arising directly from a diagnosis of COVID-19 with an accident date on or after December 1, 2019, will be excluded from the experience rating calculations of individual employers.

Exclude Payments to Employees Who Continue to Be Paid While Not Working

Payments made to employees who were continued to be paid while not engaged in any work activities will be excluded from reportable payroll. This exclusion will apply during the time California’s statewide stay-at-home order is in place, and for up to 30 days thereafter, if the employee continues not to work. 

Allow Assignment of Classification 8810 for Temporary Change in Duties

The temporary assignment of Classification 8810, Clerical Office Employees, will be allowed for employees whose job duties meet the definition of a Clerical Office Employee due to increased work from home. This provision applies while California’s statewide stay-at-home order is in place, and for up to 60 days thereafter, if the employee continues to meet the definition of a Clerical Office Employee. However, it does not apply to the payroll of employees whose payroll is otherwise assignable to a standard classification that specifically includes Clerical Office Employees.

Click here to see a full copy of the decision and order.

If you have any questions, please contact Brooke Fishel, Director of Labor Relations, at (510) 428-9486 or by email at bfishel@alliedtrades.org

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by Brooke Fishel, Director of Labor Relations