Workers comp law

What is the name of your state? floridA
i WORK FOR AN AUTO AND TIRE SERVICE & REPAIR SHOP. WE ARE HAVING A PROBLEM WITH OUR INSURANCE COMPANY FOR WORKERS COMP- WE HAVE CLERICAL EMPLOYEES AND SHOP EMPLOYEES. PROBLEM: WE HAVE SENT SOME OFFICE PEOPLE TO WORK IN THE SHOP, WE HAVE NOT HAD MANY CLAIMS AGAINST US.
IN EXAMPLE , IN NOVEMBER 2004, WE SWITCHED 4 PEOPLE FROM OFFICE TO SHOP, INS. CO. SAYS THAT FROM JAN TO OCT. WE OWE THEM $10000.00-EVEN THOUGH THOSE PEOPLE WERE IN THE OFFICE FOR 10 MONTHS-AND ONLY IN SHOP FOR 2 MONTHS OF THE YEAR. THE INS. CO. SAID WE HAVE TO SWITCH ON THE ANNIVERSARY DATE IN ORDER TO AVOID THE EXTRA COST. IN OTHER WORDS, WE HAVE TO PAY FOR THE WHOLE YEAR AS THOUGH THEY WERE SHOP TO BEGIN WITH.
IT SEEMS CRAZY THAT BEING A BUSINESS OWNER OF 60+EMPLOYEES, YOU CANT SWITCH EMPLOYEES FROM OFFICE TO SHOP WITHOUT DOING IT ON THE ANNIVERSARY DATE OF THE WORKERS COMP INS. IN ORDER TO BE ABLE TO AVOID PAYING ALL THE EXTRA COST AS THOUGH THEY WERE IN THE SHOP FROM DAY ONE.
DOES THE LAW STATE ANYTHING ABOUT MOVING EMPLOYEES FROM OFFICE TO SHOP AND WHEN YOU CAN DO IT WITH OUT PAYING BIG BUCKS FOR WHEN THEY WERENT EVEN CONSIDERED SHOP?. DO YOU REALLY HAVE TO SWITCH THEM ONLY ON THE ANNIVERSARY DATE?
PLS HELP!

Amber_rajohnson said:

What is the name of your state? floridA
i WORK FOR AN AUTO AND TIRE SERVICE & REPAIR SHOP. WE ARE HAVING A PROBLEM WITH OUR INSURANCE COMPANY FOR WORKERS COMP- WE HAVE CLERICAL EMPLOYEES AND SHOP EMPLOYEES. PROBLEM: WE HAVE SENT SOME OFFICE PEOPLE TO WORK IN THE SHOP, WE HAVE NOT HAD MANY CLAIMS AGAINST US.
IN EXAMPLE , IN NOVEMBER 2004, WE SWITCHED 4 PEOPLE FROM OFFICE TO SHOP, INS. CO. SAYS THAT FROM JAN TO OCT. WE OWE THEM $10000.00-EVEN THOUGH THOSE PEOPLE WERE IN THE OFFICE FOR 10 MONTHS-AND ONLY IN SHOP FOR 2 MONTHS OF THE YEAR. THE INS. CO. SAID WE HAVE TO SWITCH ON THE ANNIVERSARY DATE IN ORDER TO AVOID THE EXTRA COST. IN OTHER WORDS, WE HAVE TO PAY FOR THE WHOLE YEAR AS THOUGH THEY WERE SHOP TO BEGIN WITH.
IT SEEMS CRAZY THAT BEING A BUSINESS OWNER OF 60+EMPLOYEES, YOU CANT SWITCH EMPLOYEES FROM OFFICE TO SHOP WITHOUT DOING IT ON THE ANNIVERSARY DATE OF THE WORKERS COMP INS. IN ORDER TO BE ABLE TO AVOID PAYING ALL THE EXTRA COST AS THOUGH THEY WERE IN THE SHOP FROM DAY ONE.
DOES THE LAW STATE ANYTHING ABOUT MOVING EMPLOYEES FROM OFFICE TO SHOP AND WHEN YOU CAN DO IT WITH OUT PAYING BIG BUCKS FOR WHEN THEY WERENT EVEN CONSIDERED SHOP?. DO YOU REALLY HAVE TO SWITCH THEM ONLY ON THE ANNIVERSARY DATE?
PLS HELP!

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When I have been involved in the submission of payroll data for calculation of our workers’ comp premium, it consisted of payroll data that provided a summary of total payroll for each specific employee class code. (Each job has a class code assigned to it and has a different weighted risk value in the calculation of the premium.)

We did not provide detailed information for each employee that would reflect if they transferred from one class code to another because it is essentially captured in the summary for each specific employee class code. Wages earned as an office/clerical employee are reflected in the summary of wages paid to all office/clerical in that payroll class and wages earned when transferred to garage/shop are reflected in the summary of wages paid to that payroll class. The company for which I worked is a multi-state employer, which included Florida employees and I never gathered or saw where detailed individual employee payroll information (to determine if and when an employee may have changed from one payroll class code to another) was provided to the carrier.

You really need to seek answers from someone who has underwriting experience or from your insurance broker, if you have one. If you have a broker, they should be able to explain how the rates are calculated. If you don't have one, you may try contacting NCCI (National Council on Compensation, Inc.) to see if someone can help explain what your carrier is doing or you may want to contact your state insurance commissioner.

Good luck,

Maze