The NYCIRB instituted a new rule that will affect all 85 construction class codes in The New York State Workman Compensation Manual. This new ruling could have the effect of placing an employers’ entire payroll in the highest rated class code at a specific job or location.
By way of brief background, currently, multiple classifications are permitted for each operation within a single job or location, provided separate payroll records are maintained. The addition of the phrase” all operations to completion” to the classification phraseologies will clarify that all operations from the beginning to the end of the project are not eligible for payroll separation at a single job or location.
Effective January 1, 2018, the New York State Department of Financial Services approved the filing made by the New York State Compensation Rating Board to amend the New York Workers Compensation and Employers Liability manual for the purposes of clarifying application of the Manual Rule IV D.7, which relates to the separation of payroll for contracting employers, by adding the wording “All Operations to Completion” to all 85 contracting classification phraseologies.
This will mean that if you do not prepare your contracts correctly, the insurance company auditor can place all payrolls in the highest rated code.
We are happy to discuss with you on how to avoid this premium increasing landmine.