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Important Update: Workers’ Compensation Premium Relief

In these unsettled times many employers are paying employees that are not currently working, or working in a different capacity due to the COVID-19 pandemic. Thanks to a new ruling, there is premium relief on the way. The New York Workers’ Compensation Insurance Rating Board has approved a rate reduction for employees who are collecting their regular pay, but they are not performing their regular job duties.
Specifically, there is a new classification for employees who have been reassigned due to the New York’s stay-at-home order related to the COVID-19 pandemic to:
  • Not perform any work duties
  • Perform clerical work duties at home
They will have their associated payroll reassigned to classification code 8873, Telecommuter Reassigned Employees. In most cases, this new classification will result in substantial savings. The change is applicable from the start of the NY stay-at-home order and for up to 30 days after its expiration.
The reassigned payroll will apply new and renewal policies effective May 1, 2020 as well as to all in-force policies as of March 16, 2020. This is a new development and Austin & Co., Inc. will keep you informed of next steps. It would be prudent for all employers to track the payroll that is assignable to these reclassified employees to help with audit and billing steps.
If you have any questions about your insurance program during these challenging times, please contact us.