On May 1st, 2020 the New York Compensation Insurance Rating Board (NYCIRB) announced that employers who are paying employees sidelined by the COVID-19 pandemic will pay a less-expensive rate for Workers’ Compensation insurance.
A new classification has been established for these employees called “Telecommuter Reassigned Employees” and Code 8873. The rate for this new class mirrors the Clerical Office rate.
This classification is specifically for employees who, during stay-at-home order (and future stay-at-home orders), are reassigned to either (a) not perform any work duties (idle), or (b) perform clerical work duties at home. The loss cost rate for Classification 8873 will mirror the rate for Classification 8810 (clerical office employees). This provision is applicable at the start of New York’s stay-at-home order and for up to 30 days after its conclusion. It is available for audited payroll from 3/16/2020 and later as well as new and renewal policies with effective dates from 5/1/2020 – 12/1/2020.
Employer’s must maintain a proper payroll distribution of wages for the employees who have been reassigned as described above. It is required that these payroll records should be kept separate.
If you have further questions or concerns, please contact your Commercial Lines Account Manager.