Andrew Pariser and Amina Dibe / RESCON
The WSIB is changing and the target date for the new Rate Framework is 2020. Ontario’s construction industry must prepare for the way it will change Schedule 1 employer’s premiums, says employment lawyer Daryl Seupersad.
The Sherrard Kuzz LLP counsellor made the comments to about 90 members of the residential and infrastructure construction community at an event in Vaughan that was organized by RESCON and the Ontario Sewer and Watermain Construction Association.
The change is currently proposed to take effect on Jan. 1, 2020 – that’s when the NEER, CAD-7 and MAP experience rating programs will end and be replaced by a new classification and single prospective premium setting system.
“As we progress through the consultation key pillars of the new system are becoming clearer. While we still do not have the final picture, it is clear this overall will dwarf all other changes since the last system transformation which occurred in the early ’90s.”
7 DRAFT POLICIES
The latest review asked for input on seven draft policies including:
- Coverage status
- The classification structure
- Eligibility for multiple premium rates
- Associated employers
- Temporary employment agencies
- Employer-level premium rate setting
- Employer premium adjustments
Key takeaways included the changing classification structure: more than 150 rate groups existing in the WSIB rate premium policy will be replaced by a system with 34 classes through the North American Industry Classification System (NAICS). Within construction, the 13 rate groups of Class G would be narrowed to five subclasses: building construction; infrastructure construction; foundation, structure and building exterior construction; building equipment construction; and specialty trades construction.
Seupersad, shown above, shared some tips for the audience as well.
“All employers should have now received a notice of new provisional classification, which was mailed out to construction employers in this past fall – make sure you received one,” he said. “Also, order a copy of your account file from the WSIB to confirm and ensure your current classification – errors may transition into the new system.
“Also, appeal any misclassifications quickly as employer account appeals tend to move slowly.”
EMPLOYER LEVEL PREMIUM RATE SETTING
In the new system, the WSIB will consider a claim for the six years prior. In other words, a premium setting for 2021 will occur in 2020 and will consider 2019, 2018, 2017, 2016, 2015 and 2014. The three most recent years will be weighed at 66.6 per cent, while the three earlier years will be at 33.3 per cent.
Shadow rates (what your new rate will be under the new system) are scheduled for the fourth quarter of 2018. While we would have liked to see these earlier, they will provide great insight how the new system will operate.
For more WSIB updates, click here for the rate framework review website. If you have any questions about the changes coming to the WSIB rate framework, do not hesitate to contact Andrew Pariser at 905-760-7777 or email@example.com.
Andrew Pariser is the vice-president of RESCON and chair of the RESCON health and safety committee. Email him at firstname.lastname@example.org. Amina Dibe is a program and policy analyst for RESCON with a focus training and education, government relations and expanding opportunities for women in the trades. Email her at email@example.com.