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.

David Brockmann  
Area Vice President / Director Construction Services
mobile: 518.330.1743  |  direct: 518.533.6898

David has over 13 years of experience in the professional insurance brokerage and underwriting community, with expertise ranging from some of the most reputable General Contractor’s for both residential and commercial projects to trade contractors that work on a nationwide basis.

David joined Arthur J. Gallagher & Co in January of 2012 and currently serves as Director of Construction Services in the Northeast Region. Prior to joining AJG David was a sales executive at Capital Bauer (2007-2012) where he was a founding member of their Construction team.   Capital Bauer was purchased by AJG in January of 2012. As the Director of Construction Services he is responsible for production efforts with network offices, and the design and implementation of specialty programs that exceed their clients’ needs and help to mitigate their previously uncovered risks. David is also an expert in Workers Compensation implementation.  Through the use of AJG’s in house resources David is able to better develop programs that are more effective and cost saving than traditional workers compensation models. He is a graduate of Rensselaer Polytechnic Institute, majoring in Management and Finance, and has insurance licenses in over 20 States.

This material has been prepared for general, informational purposes only and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. Should you require any such advice, please contact us directly. The information contained herein does not create, and your review or use of the information does not constitute, an accountant-client relationship.

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