Code Rule 59 Compliance
Hickok & Boardman Insurance Group's Safety & Risk Management team is now certified in consulting New York based businesses in complying with Code Rule 59! If you were cited by the New York Department of Labor, or just have questions regarding this ruling, we're here to help.
What is Code Rule 59?
Industrial Code Rule 59 is a Compulsory Workplace Safety and Loss Prevention program that is outlined in a section of New York State’s Workers Compensation law. Employers must be in compliance with the ruling in order to ensure their workers compensation losses and insurance costs are not exceeding an acceptable value.
This Safety and Loss Prevention program not helps you lower risk in the workplace, but will allow you to better control your workers compensation coverage. Failure to comply will result in a 5% surcharge to your workers comp insurance premium, with an additional 5% in cost every afterwards of non-compliance. If you’ve received a notice from the New York Compensation Insurance Rating Board about Code Rule 59 compliance, or you believe you are at risk of non-compliance, we’re here to help.
Why you're cited for Code Rule 59 Non-Compliance:
- You have an annual payroll that exceeds $800,00
- And your most recent Experience Modification rating is over a 1.20
Both have to apply to you for the New York Compensation Insurance Rating Board to send you a notice.
First steps to compliance:
Once you receive a notice from the Department of Labor, you have 30 days to contact and set up an appointment with a safety consultant for an evaluation. After making the appointment, you then have 10 days to let your insurance carrier and the Department of Labor know that the evaluation is scheduled.
The date of the appointment, as well as the consultant’s name, address, and Certification Number must all be included. You, and the consultant, then have 75 days to complete the evaluation and consultation after receiving the first notification.
What you, your safety consultant, and insurance carrier need to do:
At the date of the evaluation and consultation, your safety consultant will work with you to review your current safety program. Whether or not you have a program in place to reduce occupational injuries for employees, your consultant will help implement and improve on the best practices of developing an effective safety program.
Our consultants can audit your Experience Modification to be sure loss history has been recorded by the NCCI correctly. From there, your claim activity will be reviewed, analyzed, and trended to pinpoint what exactly the underlying issues are in the causes and outcomes of your claims.
Your consultant will run a report based on your type of business and the industry in which you operate. They will conduct a walk-through of all of your locations, mark areas that need improvement to remove hazardous work conditions, and provide information on how you can meet requirements set by the Department of Labor.
Program Evaluation:
There are over a dozen elements to your evaluation that your consultant will cover. While this can be overwhelming, the Department of Labor and your consultant provide a methodical, step-by-step evaluation and assistance to fulfilling requirements. Some key elements in the evaluation and consultation include:
- Loss History and Claims Analysis
- Safety Program policies, procedures, and practices
- Communication of goals to organization
- Top-level management buy-in and initiation
- Employee engagement and involvement
- Supervisor and Management Training
- Accident Investigation systems
- Other training requirements for best practices
What happens if you don't comply:
There is a significant penalty if you fail to coordinate your consultation and evaluation, implement remedial action and programs, and all deadlines set forth by the Department of Labor and your safety consultant.
- There will be a 5% surcharge to your Workers Compensation insurance premium
- The 5% surcharge is cumulative and will continue to be added for every year of non-compliance.
What our safety & risk management team can do for you:
Our safety & risk management team takes a wholistic approach when addressing safety issues with our clients. With three licensed workers compensation adjusters, and a team of experienced loss prevention advisors, our New York-based safety consultant is prepared to offer in-depth and effective solutions for your safety program.
We will review your experience modification to be sure the Code Rule 59 Non-compliance citing was accurate, and run through all of the Department of Labor requirements to put a plan in place. We’ll help you stay on track to meet deadlines and work with your insurance carrier to be sure the process goes smoothly.
Our loss prevention team offers additional safety training and programs to enhance your safety habits and culture. Rather than just meeting the bare minimum, we make sure to prepare you for a future of instinctive risk mitigation and to set you up for success in the realm of controlling your workers compensation insurance.
Contact our Consultants!
"*" indicates required fields