New Workers’ Compensation Reporting Requirement for Furloughed/Idled Workers

May 5, 2020: As a result of the COVID-19 virus, the states listed below have established a rule that requires insurance companies to capture and report wages paid to employees who have been furloughed/idled when a state of emergency is declared.

The rule applies to wages paid to employees who have been furloughed/idled for the dates determined by your state’s governmental emergency order. A line will be shown on the completed audit worksheet for this payroll. This is strictly for reporting purposes.

Definition of a furloughed employee: An employee who is still being paid where they have been given a temporary layoff, an involuntary leave, or another modification of normal working hours under a governmental emergency order regardless of when it was earned.

Definition of an idle employee for New York: All employees who did not complete their usual job duties due to the COVID-19 virus but were still paid. The state also has established that employees who performed clerical duties at home due to stay-at-home orders fall under this category.

You are required to keep separate, accurate, and verifiable records in order to report and/or exclude wages paid to employees who have been furloughed/idled. Splitting, estimating, or using a percentage of payroll is not allowed.

Wages of furloughed/idled workers will be reported at audit. If you had a paid employee who was furloughed/idled due to the COVID-19 virus during the dates determined by your state:

  • List regular wages for each employee on the audit request.
  • Total the furloughed/idled wages for all employees and list on the Furloughed/Idled Employees’ Wages line of the audit request.

NOTE: If accurate, verifiable payroll records are not kept, 100% of the wages are assigned to the employee’s normal classification.

Questions? Contact your Brotherhood Mutual agent or call Customer Service at 800-380-5474.

States Affected by the Furloughed/Idled Worker Rule

If you have furloughed/idled wages in multiple states, each state must be listed separately on the audit request.

  • Alabama
  • Arizona
  • Arkansas
  • Colorado
  • Connecticut
  • Delaware
  • District of Columbia
  • Florida
  • Georgia
  • Idaho
  • Illinois
  • Indiana
  • Iowa
  • Kansas
  • Kentucky
  • Louisiana
  • Maine
  • Maryland
  • Michigan
  • Minnesota
  • Mississippi
  • Missouri
  • Nebraska
  • Nevada
  • New Hampshire
  • New Jersey
  • New Mexico
  • New York
  • North Carolina
  • Oklahoma
  • Pennsylvania
  • Rhode Island
  • South Carolina
  • South Dakota
  • Tennessee
  • Utah
  • Vermont
  • Virginia
  • West Virginia
  • Wisconsin

 

IMPORTANT INFORMATION ABOUT WORKERS’ COMP COVID-19 CLAIMS

  • Employees who develop the virus caused by COVID-19 during the course of their employment should be encouraged to file claims.
  • Policyholders and employers are prohibited from taking any retribution or discriminatory act against an employee who asks for a claim form or indicates that he or she may file a claim.
  • Policyholders are encouraged to help their employees file claims. Information regarding how to file a claim was provided with the policy.