Did You Receive a Letter Regarding ICR 59? Don’t worry, we’re here to help.
What Is it:
In 1996, Governor Pataki signed into Law Legislative Bill 111331 – intended to improve workplace safety and control the cost of workers’ compensation insurance.
Section 10 requires that most employers with more than $800,000 in annual payroll AND whose experience modification factor is above 1.20 implement an approved workplace safety and loss prevention program.
Why You Have Been Targeted:
If you have not already been notified, you will be shortly by the NY State Department of Labor. We know this because it is public information. Every quarter the NY State Workers Compensation Board shares claims information relating to employee injuries with the New York State Department of Labor which administers the program. Unfortunately, your company fits the profile.
What’s The Impact To Your Company:
In the present, not much. In the long-term future, a lot. The state gives companies who received the letter 30 days to notify the Department of Labor and your insurance carrier of how you will comply with this notification. You then have 75 days from the date of the letter to get the Safety Evaluation completed and the report filed. Any remedial action recommended in the evaluation must be fully implemented within the six months following the receipt of evaluation.
Penalty For Non Compliance:
Your insurance carrier has the right to surcharge your workers’ compensation policy by 5% off the manual rates in the next policy term following the non-compliant period.
For every policy term that you remain non-compliant an additional 5% is tacked on until you comply with the Code.
We have the ability to dispatch a Certified Loss Control evaluator. They can provide the workplace injury assessment and file all the necessary paperwork, as mandated by the code, to get your company in compliance so you are not additionally surcharged on your workers’ compensation policy. Please fill out the form if you would like a brief, FREE consult on how we can prevent your surcharge.
What the Program Doesn’t Fix:
It is our experience that, while the ICR Rule 59 has good intentions, it falls woefully short of helping companies achieve long-term, consistent cost savings. The fix of ICR Code 59 is built to be quick but not substantive.
The Real Opportunity:
Over the years we have found that those companies who learn how to mitigate and manage the cost of employee injuries achieve significant, sustained cost efficiency that becomes a substantial competitive advantage in their native marketplace. We recommend a full on assessment of your workers’ compensation and employee management program so you can learn how to manage work place injuries using Best Practice Management Protocols. Ask how our COMP CARE program can help you become cost efficient/cost consistent.