The California Insurance Commissioner has approved the Workers’ Compensation Insurance Rating Bureau of California’s (WCIRB’s) July 1, 2020 Special Regulatory Filing, which proposed changes to address the COVID-19 pandemic.

Effective July 1, 2020, the changes include, but are not limited to, the following new COVID-19 rules:

  • Clerical Office Employees – During the statewide California COVID-19 Shelter in Place order, the division of an employee’s payroll between Classification 8810, Clerical Office Employees, and a non-standard exception classification is permitted when the employee’s work is exclusively clerical in nature and the non-standard exception classification does not include Clerical Office Employees.
    Source: Part 3, Section III, General Classification Procedures, was amended to add Rule 7, Coronavirus Disease 2019 (COVID-19).
  • Basis of Payroll – Payments made to an employee while the employee is performing no duties of any kind in service of the employer are to be excluded from payroll when the payments are equal to or less than the employee’s regular rate of pay.
    Source: Part 4, Section IV, Exposure Information, Rule 1, Classification Code, and Rule 4, Exposure Amount.
  • Claims Reporting – Nature of Injury and Cause of Injury positions are amended to add codes for COVID-19 claims.
    Source: Part 4, Section V, Loss Information, Rule B, Loss Data Elements.
  • Exclusion of Claims from Experience Modification – All claims directly arising from a diagnosis of COVID-19 shall not be reflected in the computation of an experience modification.
    Source: Section VI, Rating Procedure, Rule 2, Actual Losses and Actual Primary (Ap) Losses.

WCIRB Quick Reference Guide

Click here to access a quick reference guide published by the CA WCIRB which summarizes the major changes that have been approved. In addition, it includes several short and informative video clips.

WCIRB Announcement

Click here to read the announcement from the CA WCIRB published on June 17, 2020.

Insurance Commissioner Decision and Summary of Proceedings

Click here to read the Decision and additional information regarding the proceedings.

Disclaimer: This content is intended for informational purposes only and should not be construed as legal, medical or tax advice. It provides general information and is not intended to encompass all compliance and legal obligations that may be applicable. This information and any questions as to your specific circumstances should be reviewed with your respective legal counsel and/or tax advisor as we do not provide legal or tax advice. Please note that this information may be subject to change based on legislative changes. © 2020 Sequoia Benefits & Insurance Services, LLC. All Rights Reserved

Mary Beth Downs – Mary Beth Downs is a Senior Risk Advisor for Sequoia, providing property and casualty consulting services to our clients helping them protect assets, scale in the marketplace, and manage risk. As a Bay Area resident for the past 27 years, she enjoys volunteering in her local community and traveling within the state as much as possible.