As of 10/1/22, the New York Compensation Insurance Ratings Board (NYCIRB) is implementing significant changes in Workers’ Compensation rating for New York employers. New York will fully withdraw from the National Council on Compensation Insurance (NCCI) rating platform in favor of a new method of calculating the experience modifier (EMR), which is part of the process for developing your New York Workers’ Compensation premium. According to NYCIRB, the new rating plan will incentivize employers to focus on safety and reduction of workplace injuries, allowing them to earn lower EMRs and thereby lower their Workers’ Compensation premiums.

Briefly, the new EMR calculation:

  • Applies to all New York employers, regardless of premium level. Previously, employers who did not meet the premium threshold for experience rating were eligible for a Merit Rating Program.
  • Applies to New York exposures only; if you have employees in other states, the NCCI interstate rating plan will still apply for the premium/claims experience for those states.
  • Is designed to reward employers with “better than expected” claims experience with lower EMRs, and to calculate higher EMRs for those whose claims exceed “expected” amounts.
  • Includes a split point variable based on the size of the company; the split point divides losses for each claim into primary and excess components using a dollar value. This is designed to even the playing field between smaller companies and larger companies.
  • Includes a new capping methodology which protects against overly harsh EMRs. This will define the maximum EMR that can apply for a specific number of claims in the experience period.

Finally, during the first year of implementation (EMRs effective 10/1/22-9/30/23), there is a transitional cap that may apply to help offset the impact of EMRs that would have increased by more than .30 using the new formula.

For more details, click here to go to the NYCIRB website or contact our team with questions.