SO, YOU have a workers’ comp claim that’s been growing in terms of costs for the last two years, and finally it has closed.
You’ve been fretting about its impact on your experience modification factor (X-Mod), so now that it’s closed, what happens?
Under the Closed Claims rule of the Workers’ Compensation Insurance Rating Bureau, an experience modification may be subject to revision whenever claims that were used in calculating the X-Mod are reported as closed, meaning that no more payouts will be made on the claim.
The WCIRB uses the amount your insurance company has reserved for a particular claim, not the actual payouts to date.
In many cases you will find that, on an open claim, the insurance company may have paid out $5,000 to date, but may have $15,000 in total reserved, meaning they estimate the payouts might reach that point some day.
Check with us to make sure your insurance company is closing claims in the system. Once the claim is closed out, then the XMod will use the sometimes lower actual rather than the reserved number.
If the aggregate value of all closed claims used in calculating your X-Mod is valued collectively at an amount that is less than 60% of the aggregate of the highest value at which each closed claim was previously used in a rating, then the experience rating may be revised downward using the most current reported values.
The good news is that X-Mods will not be revised pursuant to the Closed Claims rule if it results in an increase to the experience modification.
When a claim is first reported by an insurer as closed on a unit statistical report, the WCIRB automatically reviews the policyholder’s current and two immediately preceding X-Mods to determine if they should be revised pursuant to the Closed Claims rule.
As necessary, revised experience modifications are automatically published and the insurer is notified.
Finally, remember that X-Mods are calculated looking back over a three-year period, and the last year is not included. So, for a renewal date of Jan 1, 2023, your experience mod will include claims from Jan. 1, 2019 to Dec. 31, 2021.
EEOC Releases New Mandatory Workplace Poster
THE U.S. Equal Employment Opportunity Commission has released a new poster that certain employers need to display in their workplaces.
The poster, “Know Your Rights,” must be displayed by all employers who have 15 or more workers. It replaces the “EEO is the law” poster.
Why the update?
The EEOC said it had to update and modernize the old poster, adding clarification to some items and including a QR code that links to instructions for filing a discrimination complaint.
The EEOC said that the new poster simplifies the employer’s obligations and employees’ rights under federal law.
The poster also clarifies the following:
• That harassment is a prohibited form of discrimination;
• That sex discrimination includes discrimination based on pregnancy, sexual orientation and gender identity; and
• Regarding restrictions applicable to federal contractors and subcontractors, including non-discrimination for asking about, disclosing or discussing their compensation or the compensation of others, affirmative action obligations, and non-discrimination based on race, color, religion, gender, sexual
orientation, gender identity, disability, and veteran status.
Displaying the poster
The EEOC issued the new poster late last year and employers who are subject to the law should start displaying it as soon as is practicable.
You can download various forms of the poster here. These posters should be placed in a conspicuous location such as in a breakroom or near a time clock where other required notices to applicants and employees are customarily posted.
The EEOC encourages employers to also post the notice digitally, like on the employee section of their websites. For firms that do not have a physical location or who have staff that exclusively work remotely, posting digitally may be the only option.