Does "Safety and Health Programs and Committees" Apply to You?

Do you have an experience rate modifier of 1.5 or higher? If yes, then you need to comply with the state specific standard on safety and health programs and committees (13 NCAC 7A.0600 - .0607). Note: This state specific standard applies to all industries in North Carolina with a high experience modifier.

This North Carolina state specific standard requires businesses with a workers’ compensation experience rate modifier (ERM) of 1.5 or higher to improve their workplace safety and health efforts by establishing a safety and health program. It provides requirements pertaining to written safety and health programs (i.e., workplace inspections, accident investigations, safe work practices), selection of safety committees, safety and heath committee requirements, training and education, and reports. 

The Consultative Services Bureau, within the North Carolina Department of Labor, will send you a letter if the N.C. Rate Bureau identified your company as having an ERM of 1.5 or higher. As required by safety and health programs and committees, your workplace must establish a written safety and health program, and if you have 11 or more employees, you must create an employee safety and health committee as well. You are required to respond to the letter to ensure you are in compliance with the law.

Experience rate modifier (ERM) -  An ERM (AKA - (EMR) experience modification rate) is a rate modifier used to establish a company's insurance premium for worker's compensation (WC). It is based on your past three years (skipping the most current year in effect) of WC claims history for injuries and illnesses. An ERM of 1.0 is considered to be the average industry rate for a company and it can go up or down based on your claims history when comparing claims to other similar type industries. The more claims you have, the higher your ERM and the more you pay in WC premiums. If you have fewer claims, the lower your ERM and the less you pay in WC premiums. Note: A company with an ERM of 1.5 is paying 50% more for WC insurance premiums as compared to a company with 1.0 ERM.

Reference the Safety and Health Programs and Committees webpage for more information regarding these requirements.