D&D Clients,
Please read the following information as it pertains to potential changes in California Workers’ Compensation rating for COVID-19. We will keep you updated when the formal decisions have been made. Due to these potential changes, it is very important to maintain detailed and accurate payroll records for any COVID-19 related payroll and/or temporary changes in employee duties as outlined below.
The Workers’ Compensation Insurance Rating Bureau of California (WCIRB) has submitted a special regulatory filing for July 1, 2020 to the California Insurance Commissioner. This filing contains proposals to address the coronavirus disease 2019 (COVID-19) pandemic, including amendments to the California Workers’ Compensation Uniform Statistical Reporting Plan—1995 and California Workers’ Compensation Experience Rating Plan—1995 to:
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, would be excluded from the experience rating calculations of individual employers. Since the occurrence or non-occurrence of COVID-19 workers’ compensation claims incurred by an employer is unlikely to be a strong predictor of that employer’s future workers’ compensation claim costs, the inclusion of such claims in an experience modification calculation would not meet the intended goal of experience rating.
Exclude Payments to Employees Who Continue to Be Paid While Not Working
Payments made to employees who are continuing to be paid while not engaged in any work activities would be excluded from reportable payroll. This exclusion would apply while California’s statewide stay-at-home order is in place and for up to 30 days thereafter if the employee continues not to work. Excluding this payroll recognizes the extraordinary circumstances resulting from the stay-at-home order and the fact that employees not engaged in work activities have virtually no work-related exposure.
Allow Assignment of Classification 8810 for Temporary Change in Duties
The temporary assignment of Classification 8810, Clerical Office Employees, would be allowed for employees whose job duties meet the definition of a Clerical Office Employee. This provision would apply 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, but does not apply to the payroll of employees whose payroll is otherwise assignable to a standard classification that specifically includes Clerical Office Employees.
The California Department of Insurance (CDI) has announced that it will hold a public hearing on May 18, 2020 to consider the WCIRB’s July 1, 2020 Special Regulatory Filing.
The hearing will be held via telephonic participation:
Monday, May 18, 2020 at 10:00 AM PT
Toll-free telephone number: 844-767-5679
Access code: 927364
People are invited to submit written comments on the proposed regulations during the public comment period, which ends on Monday, May 18, 2020 at 5:00 PM PT. Direct all written comments to:
Brentley Yim, Attorney
California Department of Insurance
1901 Harrison St., 4th Floor
Oakland, CA 94612
Telephone: 415-538-4113
RSVP is requested though not necessary to attend the hearing. Please RSVP by Thursday, May 14, 2020. Email
brentley.yim@insurance.ca.gov
with your name, your organization, your contact information and the email address for each attendee.
Below are links to a recorded WCIRB webinar and presentation discussing these filing topics.
