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New Class Code 0012 for Paid-Furloughed Employees

NCCI filed for and has now received approval for Class Code 0012 to address the issue of employees that are being paid, but are not working for their employer.

Many of you are sacrificing to ensure your employees do not suffer during this Covid-19 pandemic. A new rule passed this week relating to workers’ compensation insurance. Workers’ compensation insurance covers employees who are injured while working on the job. Furloughed employees who are being paid, but not working do not have the ability to have an on-the-job-injury, since they are not working. For this reason, the National Council on Compensation Insurance (NCCI) created a new classification:

Code: 0012 Description: Paid Furloughed Employees

Rate: $ 0.00

Dates available: 3/1/2020 to 12/31/2020

Use if:

  1. You have temporarily furloughed employees due to the Covid-19 pandemic.

  2. The employees are not performing any work duties for you.

  3. The employees are paid during the furlough.

  4. The employer keeps separate, accurate, and verifiable records.

Note: This Does Not Apply to employees working from home. Those employees are performing work for you. They may be injured at home while they are working for you and thus would be able to file and collect a workers' compensation claim.

Any pay under code 0012 will be excluded from premium and experience rating calculations.

For those of you who renewed in March, April and May: If you have already provided your 2019 audit records and you did not provide such records, please provide the documented paid furlough records and we will request a revision to your audit. If you have not yet provided your audit records, please document your pay to furloughed employees and provide it with your audit records.

For those of you renewing in June through February: Please document your payroll records, if you have not already done so. Your current policy can be revised. You can later provide the records when it is time to perform your audit.

If you have any questions about this new rule, please call us at 1-WCA-FLWC (844-922-3592).

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