Do you have employees who are paid, furloughed employees?
The Division of Insurance has approved a new statistical code 0012 with a rate of 0 (zero) for employers that paid furloughed employees due to COVID-19.
This new statistical code is time sensitive and requires the employer to notify workers compensation carrier within certain parameters, outlined below.
The employer must maintain separate, accurate and verifiable records that include:
- a list of all paid furloughed employees
- their normal workers compensation classification
- their weekly wage
- their furloughed date
- their anticipated date of return to work
The newly issued guidance is contained in Part 1 Rule 5 sub-rule 7 from the Workers Compensation and Employers Liability Insurance Manual which is reprinted below.
7. Payments to paid furloughed employees due to the COVID-19 (Coronavirus) Pandemic. "Paid furloughed employees" means employees who continue to receive payments during a temporary layoff or an involuntary leave and are not performing any work duties for an employer.
Payments to paid furloughed employees shall be assigned to Code 0012, only if the employer keeps separate, accurate, and verifiable entries within their payroll records. An employer who is making payments to paid furloughed workers must provide to their workers' compensation carrier, within the later of 60 days of approval date of this rule or 25 days after the employer begins making payments to paid furloughed workers, a list of all paid furloughed employees, which shall also include the employee's normal workers' compensation classification, weekly wage, furloughed date, and anticipated date of return to work. If separate, accurate, and verifiable entries within the employer's payroll records are not maintained, payroll is assigned to the classification for work normally performed by the employee prior to the COVID-19 (coronoavirus) pandemic.
If an employee is requested to perform any duties for an employer, the employee is not deemed a paid furloughed employee for any period of time they are performing duties for the employer. If the employee is not deemed a paid furloughed employee, payroll must be assigned to the classification applicable to the work being performed in accordance with Rule IV-A.
This Rule V-G-7 is effective March 1, 2020. The expiration of this rule will be December 31, 2020, which may be amended to an earlier or later date as circumstances warrant in consultation with state regulatory authorities. This rule will be removed from this Manual automatically, upon the applicable expiration date.