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WCIRB WIRE


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Home > WCIRB Wire



WCIRB GOVERNING COMMITTEE APPROVES SPECIAL REGULATORY FILING IN RESPONSE TO
COVID-19

Earlier today, in response to the impact of the coronavirus disease 2019
(COVID-19) pandemic on California employers and workers, the Workers’
Compensation Insurance Rating Bureau of California (WCIRB) Governing Committee
voted unanimously to make a special regulatory filing to the California
Insurance Commissioner. The Committee’s vote authorized the WCIRB to file rule
changes to the California Workers’ Compensation Uniform Statistical Reporting
Plan—1995 (USRP) and the California Workers’ Compensation Experience Rating
Plan—1995 (ERP). The changes, if approved by the Insurance Commissioner, would:

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.

This is a high-level summary of the proposed regulatory changes. For additional
detail, please see today’s Governing Committee presentation, available on the
Committee Documents page in the Filings and Plans section of the WCIRB’s website
and through the following link:

 * WCIRB Governing Committee Meeting Presentation – April 17, 2020

Refer to the April 14, 2020 WCIRB Classification and Rating Committee minutes
for the proposed changes the WCIRB plans to file:

 * WCIRB Classification and Rating Committee Meeting Minutes – April 14, 2020

The WCIRB expects to submit this special regulatory filing to the California
Department of Insurance (CDI) early next week. The CDI will schedule a public
hearing to consider the filing, and once the Notice of Proposed Action and
Notice of Public Hearing are issued, the WCIRB will post a copy in the Filings
and Plans section of the WCIRB website.

April 17, 2020
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