Oakland, CA – The Workers’ Compensation Insurance Rating Bureau of California (WCIRB) is clarifying the application of the July 1, 2020 rule regarding the treatment of payroll for employees who continue to be paid while they do not perform duties of any kind.

During the period of the Coronavirus Disease 2019 (COVID-19) California statewide stay-at-home order and concluding 30 days after the order is lifted, some employees not engaged in any work activities may continue to be paid by their employer. This COVID-19 rule distinguishes amounts paid to employees for time not worked due to either of the following:

  • 1. The stay-at-home order’s impact on an employer’s operation such that an employee no longer has duties to perform
  • 2. The employee’s need for leave due to COVID-19

Such payroll amounts are to be excluded from the basis of payroll.

Refer to the entire rule at Part 3, Section III, General Classification Procedures, Rule 7, Coronavirus Disease 2019 (COVID-19), of the California Workers’ Compensation Uniform Statistical Reporting Plan—1995 (USRP).

WCIRB Webinar
The WCIRB will host a free webinar to further explain the payroll exclusion rule.

Tuesday, October 20, 2020, 11:00 – 11:30 AM PT
Presenter: Brian Gray, WCIRB Director of Classification Administration and Education
Register and Submit Questions: WCIRB Clarifies COVID-19 Payroll Exclusion Rule

For those unable to attend the webinar, a recording will be posted on the WCIRB COVID-19 web page following the event.

Source: WCIRB CA