Gulfshore Insurance > Gulfshore Blog > COVID-19 > COVID-19 & Payments to Paid Furloughed Employees

Commercial Lines COVID 19 Payments to Paid Furloughed EmployeesThe state of Florida has approved the National Council on Compensation Insurance’s (NCCI) B-1441 filing that addresses wage payments made to paid furloughed employees during a temporary layoff or an involuntary leave as a result of federal, state, and/or local emergency orders, laws, or regulations issued due to the COVID-19 pandemic.

These particular wage payments will be excluded from premium and experience rating calculations, provided the employer maintains separate, accurate, and verifiable records.

If separate records are not maintained, this payroll will be assigned to the classification applicable to the employee’s normal work performed prior to the issuance of any emergency orders, laws, or regulations related to the COVID-19 pandemic. Any payments from appropriated funds or loans authorized by any law or regulation, or public governmental entity used by an employer specifically to retain or hire working employees are still included as payroll for the calculation of premium and experience rating.

The revisions within the filing are effective on and after March 1, 2020 for new and renewal policies, and also apply to the unexpired portion of any policy in force as of March 1, 2020. Code 0012 has been assigned to identify these payments for non-working employees.