New Workers' Comp Classification for Employees Working at Home

Dealers that are paying employees to work from home due to the COVID-19 pandemic will pay a less-expensive rate for Workers' Compensation insurance. 

The New York Compensation Insurance Rating Board (NYCIRB) has released a new classification code for employees working remotely in response to the COVID-19 pandemic. The new Classification 8873 will mirror the rate for clerical office employees (Classification 8810). This means that dealers premiums will be reduced for Workers’ Compensation Insurance during the time employees worked remotely or are unable to report to work. 

The reduced premiums apply to employees who, while at home, are either performing clerical duties or not performing any work but continue to be paid. The payroll for these employees will be changed and calculated using the new Classification Code 8873; the code used by carriers for the clerical rate.

For example, a mechanic in code 8391 who is receiving pay, but not performing any work duties, will be assigned code 8873. 

This provision became effective at the start of New York’s stay at home order and is set to expire 30 days after its conclusion. The change applies to all new and renewal policies effective May 1, 2020, and policies that were "in-force" as of March 16, 2020. 

Dealers who are signed up with GNYADA’s Workers’ Comp carrier, Am Trust is currently programming the NY class Code 8873 and the underwriting team will apply the new class code upon completion of the annual audit.

What Steps Dealers Need to Take to Get Premium Reduction

Prepare documentation with, accurate and verifiable payroll records demonstrating that certain employees were receiving wages while working remotely or receiving wages while at home and not performing any work duties. These records must be presented during your annual routine audit for any employees who qualify for the new class code and the payrolls for the affected employees will be adjusted when the audit is completed.

If you have any questions, please contact GNYADA Insurance office and ask for Michael  Conway at 718.746.8100 Ext 405 or email him at mconway@gnyada.com.