Menu Search Icon Mail Icon
Davis Saperstein & Salomon
Call Today 201-907-5000
No fee if no recovery
All consultations are free

Workers' Compensation Newsletter

"Remuneration" Components for Workers' Compensation Programs in NCCI States

Workers’ compensation law governs rights and procedures for compensating employees for work-related injuries and occupational diseases. While workers’ compensation law is based largely on state statutes (and thus varies by state) the actual “compensation” under workers’ compensation law is generally based upon, and calculated from, the injured employee’s “compensation.” Most employers procure insurance to cover this potential liability.

NCCI Remuneration Rules

Premiums for such insurance in all but one state are calculated exclusively by applying varying rates to the employer’s total “remuneration” (or compensation). Remuneration has historically included payroll as well as other forms of employee compensation. Most states, however, rely on the National Council on Compensation Insurance (NCCI) to determine remuneration. NCCI’s definition of remuneration includes forms of employee compensation, such as:

  • Salary or hourly pay
  • Commissions
  • Bonuses
  • Overtime pay, less the premium portion
  • Holiday, vacation and sick pay
  • Rental value of employer-provided housing
  • Value of employer-provided meals and lodging
  • Time worked and accrued vacation upon dismissal
  • Piecework, incentive plans, and profit-sharing plans
  • Value of store certificates, merchandise or credits given to employees

Non-NCCI States

Thirteen states have their own government rating bureaus to set premiums and do not exclusively rely on NCCI. Although most of these states apply principles and rules similar to those of NCCI, there may be significant differences in how remuneration is defined. One example is that Pennsylvania and Delaware do not allow exclusion of the premium portion of overtime pay in calculating remuneration.

Possible Employer Actions

The calculations are often based on data from past insurers which is reported to the rating bureau and may be incorrect or incomplete. It can be worthwhile for employers to review the calculation data themselves (or through accountants) to ensure accuracy and minimize premiums. Industry analysts suggest that overcharges for premiums are not unusual and can be recovered if discovered in time.

  • Doctors and Workers' Compensation
    The Workers’ Compensation system was created to help protect and provide for employees injured on the job. An injury that qualifies for workers’ compensation is one that occurs while the employee is at work. Each state has... Read more.
  • The Workplace: Workers Compensation Issues
    Unless a business is located in the state of Texas, the business (or place of employment) may be required to provide workers compensation insurance for injuries and accidents employees may incur while on the job. Texas is the only state... Read more.
  • OSHA's Ergonomics Regulation
    According to the International Ergonomics Association, ergonomics is the study of interactions between humans and physical objects in order to optimize performance and comfort. Specifically, “ergonomists contribute to the design... Read more.
  • Workers' Compensation Claims for Job-Related Stress
    Workers’ Compensation programs for on-the-job injuries and occupational diseases has generally been associated with physical, as opposed to mental, conditions. However, an increasing number of Workers’ Compensation... Read more.
Law Commentary Legal News
Share This Page:
Davis, Saperstein & Salomon, P.C., is located in Teaneck NJ and serves clients in and around Teaneck, Hackensack, Bergenfield, Tenafly, Englewood, New Milford, Palisades Park, Englewood Cliffs, Dumont, River Edge, Demarest, Haworth, Oradell, Leonia, Bogota, Maywood, Closter, Alpine, Emerson, Fort Lee, Ridgefield Park, Little Ferry, Bergen County, Hudson County and Passaic County.
Designed and Powered by NextClient

© 2024 Davis, Saperstein & Salomon, P.C. All rights reserved. Custom WebShop™ law firm website design by NextClient.com.