"You can makean argument that while they're not doing their job, they don't needworkers' comp coverage," says Jeff Eddinger,senior division executive at Regulatory BusinessManagement.  (Photo: Shutterstock)

In the aftermath of the coronavirus, the National Council onCompensation Insurance (NCCI) is planning a rule change to workers'compensation that will affect businesses who are continuing to paytheir employees who are unable to do their work from home.

According to Insurance Journal, thosebusinesses will not be required to include the payroll paid tothose employees in calculating their workers' compensationpremiums. Workers' compensation premiums are based on payroll.

Related: Expanding paid-leave regulations make workers' compmore complicated

"The rule change is going to basically take the payroll for thatperiod of time where the worker's furloughed and remove it from thecalculation," said Jeff Eddinger, senior division executive atRegulatory Business Management.

"You can make an argument that while they're not doing theirjob, they don't need workers' comp coverage so the employers don'tneed to pay the premium for that time," he added. On its website,the NCCI explained, "If approved, this rule change will be distinctfrom 'idle time' under our current Basic Manualrules (Rule 2-F-1), and a corresponding statistical code 0012 willbe created for reporting this payroll. This payroll will not beused in the calculation of premium."

The NCCI is the official rating bureau in 36 states. Someindependent bureau states have taken matters into their own hands.California's rating bureau recently announced its own similar rule,excluding payroll paid during the shutdown from reportable payroll.Although other independent and monopolistic states are expected tofollow California's example, some, like North Carolina and Indiana,plan to use the NCCI's language for the sake of consistency.

Eddinger does not believe the rule change, which is expected tobe retroactive to March 1, will have much of a material impact onworkers' comp carriers. "It's like hitting the pause button soyou're not charging premiums, but you also don't expect any claimsso in the end you think that it's just going to be a wash," hesaid.

The NCCI hopes to file its reporting code this week for approvalby state regulators.