classification manual wsib

Each Classification Unit falls into one of 155 different “Rate Groups” which is subject to a specific premium rate. Employers falling under Schedule 1, Part I will be subject to mandatory coverage, while employers falling under Part II will not be subject to mandatory coverage but may nevertheless “opt-in” and apply for Schedule 1 insurance coverage. Under the new Rate Framework, the Classification Units and Rate Groups will be replaced with over 900 North American Industry Classification System (“NAICS”) codes. Each NAICS code will fall into one of 34 “Classes” or “Subclasses” listed in the new Schedule 1 of the Regulation. Employers should also have received their NAICS code(s) from the WSIB. An employer’s overall premium rate will be based on both industry risk and individual claim history: Each Risk Band will adjust the premium rate upwards or downwards by around 5%. For instance, an employer assigned to a Risk Band one step above the class average will pay a premium rate that is around 5% above the Class Average Premium Rate. If the overall Class Average Premium Rate changes as a result of the Class’ claim experience, all Risk Bands within that Class will change. The WSIB states that it will be using insurable earnings, claims costs and the number of allowed claims, derived from the employer’s claim experience under their prior Classification Unit over a six-year period (2013-2018), to establish an employer’s “Actuarial Predictability” rating. This is considerably longer than the three, four, or five-year cost windows under the previous experience rating systems of MAP, NEER and CAD-7. Although the length of time that a claim will “stay on the books” is longer, the impact of a single year will be reduced which may be of benefit to some employers.

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Our new classification structure came into effect on January 1, 2020. The new classification guide contains the descriptions of classification codes we will use to classify the business activities of Ontario businesses, as well as the coverage status for each of these classification codes. You can also use the guide to search for a specific NAICS code, industry, or business activity. They are not applicable to classification decisions made after December 31, 2019 but may still be relevant to decision-making for periods up to and including December 31, 2019. Additionally, the WSIB will implement a five-year premium rate freeze for all non-profit organizations operating in Ontario. This means that employers will no longer pay a fixed annual premium with the chance of a rebate or surcharge under their experience rating programs. Instead, under the WSIB’s new Rate Framework, employers will pay prospective and fluctuating premium rates based on a new classification system and their individual claim history. The changes are anticipated to impact approximately 300,000 businesses covered by the WSIB’s insurance fund. The WSIB has stated that the Rate Framework will establish classifications and premium rates that better reflect the risk presented by individual employers and will operate to stabilize and limit premium rate volatility. The Rate Framework is also stated to be easier to understand than the previous regime, and promises greater fairness, predictability and transparency in terms of setting and adjusting premium rates. These organizations include charities, women’s shelters, art galleries and daycares. Schedule 1 employers must contribute to the insurance fund by paying premiums and are protected by a system of collective liability. Under the current framework, Schedule 1 employers are classified based on their business activities into one or more “Classification Units”.

Therefore, employers should review their NAICS code descriptions to ascertain whether they are properly classified and covered. It contains the descriptions of the NAICS classification codes and additional WSIB-specific classification codes that the WSIB uses to classify the business activities of Ontario businesses for premium rate setting, and the coverage status for each code. It contains detailed policies that the WSIB uses to make decisions on all employer and worker issues. Failing to do so may result in a fine or imprisonment. Material changes in circumstances include any change that may affect an employer’s obligations under the Workplace Safety and Insurance Act (WSIA), i.e., changing your business name, discontinuing or changing a business activity, a change in insurable earnings, etc. Each contractor whose WSIB account remains in good standing will have one generic clearance that will be valid for all of its contracts. If a clearance expires, or is revoked, the contractor’s work must stop, and you must receive a new clearance before allowing the work to resume. The WSIB may also hold employers responsible for any unpaid premiums owed by the contractor on wages paid to the contractor’s workers for the duration of the contract. The only way to ensure this will not occur is to require a clearance certificate from contractors, before they do any work for you. Each contractor whose WSIB account remains in good standing will have one generic clearance that will be valid for all of its contracts. The WSIB will do this either by having an on-site field auditor going into an employer’s workplace to look at its books and accounts, or by performing a “desk audit” whereby the WSIB asks the employer to send its financial records to the WSIB. In either case, it is extremely important to organize your information to properly prepare for this assessment. The employer should make it as easy as possible for the auditor to conduct the review.

With the elimination of the previous experience rating programs, employers will be issued their final statements, along with any rebates or surcharges, effective on the following timeline: In this regard, for each Schedule 1 employer, the WSIB will establish a “Projected Premium Rate” which will inform employers of how much the employer’s premium rates are expected to increase or decrease in the future. This will inform how the employer’s premium rate will deviate from the Class Average Premium Rate and will also impact the employer’s per-claim cost. Since the first three years of the Rate Framework permit unlimited movement down through risk bands, employers may have the best opportunity to reduce their premiums during this time. However, some employers may have more than one business activity and, therefore, multiple NAICS codes. Generally, where an employer falls within more than one NAICS code, it is assigned a single premium rate based on the employer’s “Predominant Class”. The Predominant Class is generally the Class with the largest share of insurable earnings. A business activity is significant if it meets one of the following conditions: TEAs will be assigned separate premium rates. One rate will be in respect of the business activity of supplying workers, while the other premium rate or rates will correspond to the business activity of the TEA’s client(s).Many employers will welcome the removal of the potential for a surcharge, while others may miss the cash injections in the form of rebates that came under the old system. All employers should consider whether there are any opportunities to reduce their premiums as they are transitioned to the Rate Framework. Lastly, since the new Rate Framework will group certain types of business activities differently than under the current classification system, certain business activities may no longer be subject to mandatory coverage under the insurance plan.

Also get written statements from any worker who was in view of the accident, but did not see anything. Visit the site of the accident to prepare drawings of the layout of the area and to take photographs of any equipment and materials involved. Do not clean up or re-arrange the site until after the investigation has been completed. Sending this information to the WSIB to include in the claim file may be helpful if any contentious issues arise at a later date. Inform the MLTSD of any critical injuries. (See the section on Critical Injuries, below.) Failure to do so can result in the reduction or suspension of WSIB benefits during the time of breach. If you have reason to believe this may be an issue in a claim you are managing, you should bring this to the WSIB Case Manager’s attention.This might be particularly helpful if it is a complicated case that will potentially generate significant claim costs or which may lead to an appeal situation. You may wish to contact the Association of Canadian Ergonomists for more information. The following WSIB policies outline the different kinds of information you are allowed to obtain from the claim file in different circumstances. Under Regulation 834 of the Occupational Health and Safety Act, “critical injuries” means an injury of a serious nature that, The costs will appear on a Schedule 1 employer’s accident cost statement and will affect experience rating. They are paid for 100% by Schedule 2 employers. If you don’t feel comfortable with the Case Manager’s response, consider escalating your concerns to the appropriate WSIB Manager. Make sure the work you are offering is safe, productive, consistent with the worker’s functional abilities, and restores the worker’s pre-injury earnings where possible. It’s important to speak with the injured worker when preparing an offer of suitable work to match the worker’s functional abilities to duties that are available in your workplace.

The WSIB requires employers to provide it with a significant amount of business information upon registration, and all of this information and more will be verified during the audit. The WSIB is also allowed to remove any books or accounts so they can be examined, and can keep them for as long as it takes to complete the audit.This must be done formally, in writing, within six months of the date of the auditor’s decision letter. The worker and employer will use the information from the FAF to help plan the worker’s early and safe return to work. It clearly states at the top of the FAF that it should only be completed by a health professional if asked by an employer or worker to do so. If the employer believes the FAF does not provide value, it can ask the decision-maker to reverse the charge of the FAF to the employer’s WSIB account. Please call the OEA if you have questions about this If you are overpaying the WSIB, you may be eligible for a premium adjustment. If a recalculation results in a lower rate, a benefit-related debt is created and the worker may need to pay that amount back to the WSIB. This will require the Eligibility Adjudicator to contact you to discuss the issues, before a decision is made. If that does not happen, you should contact the Eligibility Manager. Outlining your concerns on an attached page, or adding them in Box K on page 4 of the Form 7, is not enough to bring it to the attention of the initial entitlement staff at the WSIB. Box C12 must be checked. Obtain a signed statement from the injured worker as soon as possible or, if a signed statement is not possible, obtain a statement by phone. Interview everyone who may have seen the accident and get witness statements. Ensure the witness reads and clearly understands the statement, and have the witness sign and date it. If statements are provided in a language other than English, identify the interpreter and the language used.

You will need to contact the Firm File Access area and ask for your firm file to be sent to you. For more information about accessing employer-specific information, refer to OPM Doc. No. 21-01-01 “Access to Employer Information,” on the WSIB’s website. Objections to return to work and work transition decisions must be received by the WSIB within 30 days of the decision letter date, and all other issues must be received within 6 months. All objections to a claim decision must be made using the WSIB’s new Intent to Object form. Under the Rate Framework, experience rating programs will be eliminated and employers will instead pay prospective and fluctuating premium rates based on their individual claims experience. As of September 25, 2019, the WSIB started notifying employers of their new 2020 premium rates. This same day, the Ontario Government announced a five-year WSIB premium freeze for all non-profits operating in the province. Employers whose business activities fall under Schedule 1, Part I will be subject to mandatory coverage and will be required to pay premiums. However, these employers may still “opt-in”, and apply to the WSIB for Schedule 1 insurance coverage. The Rate Framework will not impose any significant changes for Schedule 2 employers. The NAICS Code-based classification system will group certain types of business activities differently than under the current system. As a result, certain business activities may no longer be subject to mandatory coverage under the insurance plan. Employers should take the opportunity to review their NAICS Code descriptions to determine whether they are properly classified and covered. Where that is the case, under the Rate Framework the employer’s premium rate will be based on the Class that corresponds with the employer’s NAICS Code.

Depending on the particular NAICS Codes and how the particular employer’s operations and payroll are structured, an employer with multiple NAICS Codes may pay one, or multiple, premium rates. Employers should take the opportunity to review their premium rates closely to ensure they understand how they have been calculated and that they are correct. For example, NEER has a four-year cost window while CAD-7 has a five-year cost window. Employers will be issued their final experience rating program statements, along with any rebates or surcharges, effective the following dates: Actuarial Predictability will also impact both an employer’s per-claim cost limit and how significantly their individual premium rate(s) will deviate from the class average. Employers will then be assigned to a “Risk Band”, which represents a premium rate calculated as 5% increments above or below the Class Average Premium Rate. This represents how much the employer’s premiums are expected to increase or decrease in the future. This will help employers predict their future workers’ compensation costs and budget accordingly. As a result, when the Rate Framework comes into effect, approximately 2,700 non-profit organizations will keep their current premium rates and a further 1,600 non-profit organizations will have their rates reduced. The affected employers include daycares, legions, charities, women’s shelters, art galleries, and hospices, among others. Then, based on the employer’s claim experience over a rolling six-year cost window, from 2020 onward each employer’s Risk Band (and therefore premium rate) may move up or down according to the following rules: Employers are, therefore, in the best position to reduce premium rates during the years 2020-2022. An employer’s pre-Rate Framework claims experience will have an important impact on its premium rates under the Rate Framework.

You should document all of the options you have considered. If, after having considered all of the options, you are unable to offer the worker suitable work, you must notify the WSIB decision-maker immediately. You should carefully review the WSIB policy, and call the OEA if you have any concerns. Return to work obligations can continue even after re-employment obligations cease. In some circumstances, the policy requires the employer to continue to co-operate in return to work even after the worker has been terminated. Since the WSIB applies the Ontario Human Rights Commission’s (OHRC) “Policy on ableism and discrimination based on disability” in its decision-making process, you should be familiar with that document. It’s available on the OHRC’s website. You are not required to create a job that doesn’t exist. If safe work is available and needs to be accommodated, the WSIB expects you to accommodate the worker to the point of undue hardship. This employer obligation exists under the WSIA if you have a re-employment obligation to your injured worker, or independently under human rights legislation. If you refuse to accommodate the worker, the WSIB may impose a re-employment penalty or a non-cooperation penalty, depending on the particular circumstances. That may include reduced hours, reduced productivity requirements, assistive devices, and so on. Adjust your return to work plan as needed. If the worker finds the work too challenging, you may need to remove certain duties or prolong the duration of the modified job. Establish new target dates if the change in job duties is extended. Document all discussions with the worker and the WSIB, and all job offers to the worker, in writing. Keep copies of all documentation on file.

The PDIF is not a complete Physical Demands Analysis, but it does help you gather and document specific information about the physical demands of the particular job (for either pre-injury or accommodated jobs) that are relevant to the specific area(s) of a worker’s injury. It can help you identify potential risk factors for injuries in a particular job. It can also help WSIB adjudicators make more timely entitlement decisions with respect to injury compatibility and job suitability. An English version of the PDIF, including instructions, is available on the WSIB’s website. Some employers add their own pre-printed label(s) to key areas in the sections of the WSIB’s form that will be completed by the worker’s health care provider. They do this to clearly communicate to the worker’s doctor that the employer has a modified work program in place, and will be able to accommodate the worker’s restrictions. It’s hoped this will further encourage dialogue between all parties involved in the return to work process. If WT services are provided, inform the WSIB, in writing, that you intend to participate in the WT process to ensure the WT plan offered is both appropriate and cost effective. If you disagree with a proposed WT plan, file an appeal within 30 days from the date of the WT plan letter. Let the WSIB know if suitable work becomes available while the worker is participating in the WT plan. This is referred to as a “will say” statement. If the name of a witness does not appear on these forms, the WSIB Appeals Branch will not allow you to add that person to the proceedings later.This form is to be used for claims-related matters only. The ITO Form has extensive directions on it which must be followed. Once you submit the ITO Form, the time limit to appeal stops running. You may then take as much time as you need to submit an Appeal Readiness Form (ARF) to the WSIB. The WSIB will not automatically send you a copy of your firm file for employer account appeals.

As such, it is advisable for employers to carefully consider whether they have any costly claims on their record from 2013-2018 and, where there is a reasonable chance of successfully appealing those claims, taking proactive steps to initiate the appeal process. As part of these programs, the WSIB will engage with the employer and provide resources and other supports aimed at improving the workplace’s health and safety record. Where the employer fails to demonstrate improvement, the WSIB may penalize the employer, either by removing the limits on how much the employer’s premium rates can increase or by directly increasing the employer’s premium rate. Employers should have already received their NAICS Codes from the WSIB and, if they have not already, can expect to be advised of their premium rates for 2020 shortly. In this interactive session, we will help employers familiarize themselves with the ins and outs of the new classification and costing system, and provide practical insights on how best to get your workplace ready for the impending changes. Patrick subway station) Users may need to update these statutes as required. To search the full text of decisions, use the CanLII version. A detailed help page is available, or you can contact the library if you need any help searching the WSIAT Decisions database. Call number references are to locations in the OWTL. These papers are also available in paper at the library. This guide provides a document-based overview of workers' compensation law and policy in Ontario, from origins and foundations to the major reforms which occurred over the last 40 years. To assist with your research needs, we have also included the OWTL catalogue record for all the historical documents we do have in our reference library. The new model reduces the number of categories and is based on the NAICS system. Your premiums may change for the better or for the worse.

The WSIB Rate Model Has Changed On January 1, 2020 Ontario’s Workplace Safety Insurance Board (WSIB) introduced a new rate model for setting employer premiums. WSIB is an arm’s length provincial agency responsible for workplace compensation claims. Like other workplace compensation agencies in Canada, it is funded by employer premiums and administration fees. It covers over 5 million Ontario workers across 300,000 workplaces. The new WSIB rate model seeks to simplify job classification, winnowing the framework from 155 groups to 34 classes and subclasses. It is based on the North American Classification System (NAICS), which classifies businesses by economic activity. As a result, WSIB classes are easier to understand but less specific. Fill out my online form WSIB sets employer premiums based on your industry’s risk profile and the history of your business. The rate model is applied through a two-step process: They set average premiums for each industry, classified by NAICS code. This risk profile is based on an analysis of claims by real businesses over their 100 years of operation. They compare your claim history, going back six years, to that of other businesses in your industry and place you in a risk band. The mid point of a risk band 60. If your business is assessed below 60 your premiums will decrease; if your business is assessed above 60 your premiums will increase. In setting your rate, WSIB also considers the size of your business. Larger businesses may find themselves in higher risk bands, because with a larger workforce the chance of a workplace accident increases. The intent of the new WSIB rate model is to ensure fair premiums for every business. However, under the simplified structure some businesses have seen their premiums go up. And because one rate is applied to your whole workforce, no matter the job description, for some businesses that increase has been a challenge.

To ease the transition, businesses with large premium increases will see it phased in over the next three years. You can find WSIB’s updated Employer Classification Manual here. Related Tags Employees Worker's Compensation Social Share Search Recent 6 Virtual Team Building Activities with Great ROI 2 days ago Expanding to Canada: The Basics of a Canadian Venture 1 week ago Digital Transformation in HR: A Quick Recap Post-Pandemic 2 weeks ago HR Entrepreneur or Side Gig. Exact matches only Search in title Search in content Search in posts Search in pages Exact matches only Search in title Search in content Search in posts January 22, 2014 By Alec CaldwellIt might save you tens of thousands of dollars in fines for non-compliance. READ THIS NOW if you don't yet understand WSIB's new powers. More specifically, failure to comply with these new requirements may result in the person being prosecuted under the Provincial Offenses Act. In addition, Section 141 of the Act provides that the person who directly retains the contractor or subcontractor who fails to pay WSIB premiums or who has outstanding amounts owing, may be deemed to be liable. “Construction” refers to any of the business activities listed in Class G in the WSIB Employer Classification Manual. These include: Electrical and Incidental Construction Services, Mechanical and Sheet Metal Work, Inside Finishing, Industrial, Commercial, and Institutional Construction, Roofing, Form Work and Demolition, Home building, Siding and Outside Finishing and others. Any unregistered business will need to pay back premiums. Home Renovators Exemption: Occupants of private residences (and their family members) who hire contractors to do home renovation work are not required to get a clearance number. A contractor will qualify for the home renovation exemption and will not be required to have WSIB coverage for himsel f ONLY this contractor performs exclusively home renovation work 100 per cent of the time.

However, if the business employs workers, it must register with the WSIB and have coverage for its workers or sub contractors. And if at a private residence, this sole contractor is asked to complete a basement for commercial works, like an at-home hairdressing salon or an at-home insurance office, and is paid by company cheque, this would be considered a commercial property and a loss of his personal WSIB exemption would occur. If a property owner or a landlord (someone who owns the house but does not live in it) hires you to work on their residential property, this work is not considered exempt home renovation work under the Act. This loss of exemption applies to independent operators, sole proprietors, partners in a partnership or executive officers in a corporation. Remember, our article is for general information purposes and is not intended as legal advice. Consult WSIB for your unique situation. CARAHS is a non-profit association for renovators and home services providers. We offer education, information and benefits. CARAHS offers over 90 Health and Safety e-courses online here. Toll free 1 866 366 2930 www.carahs.org THE LEGAL CORNER January 23, 2014 at 3:24 am Whatever happened to the petition to repeal Bill119. I would like to introduce a Bill to our members of provincial parliament requiring them to pay WSIB coverage as well. I feel it only fair for them to face the same “real world” challenges as us independent contractors. Reply January 23, 2014 at 8:05 pm We are going to see if we can make it an election issue. Reply Lets kick up a storm and stop this crazy situation that in unfair and is helping to grow the underground market. More importantly, its forcing more government onto the self employed in the home renovations industry and services. They are already burdened down and have to take on huge risks on every job they take on.

They have no retirement pensions, no unemployment insurance, no health benefits and don’t have all the safety benefits I mentioned, but the very unions I believe pushed this through and voted for this to law to come into force have it all and they are trying to put the squeeze on the self employed contractor business owner. In my opinion those self employed individuals will in most part never make claim, as jobs and deadlines have to be met. It is my opinion it was the unions who voted this through to squeeze the self employed. Basically its about paying in to something (WSIB) you’ll very rarely claim for. What a unfair way to burden the self employed to help WSIB to pay down their huge billion of dollars debt they created. Do it on the backs of the self employed individual. Make them the donkies for your governmental past civil servants bad decisions. Who also enjoy benefits without risk. What a rip off and lets do this Rob. Lets get this moving more. Tell contractors your idea to make it an election issue, Reply Sorry I don’t think I’m allowed to type that word. LOL This whole WSIB thing is freaking out my home owner customers where they don’t know who to hire for there work to be done. Its been a slow winter. The election idea is the way to go Robert, but will they listen????. As far as the government is concerned, its off there books and being looked after by all the small contractors in this province. So what do they care. Just my thoughts. Reply Leave a Reply Cancel reply Your email address will not be published.Learn how your comment data is processed.