Pinnacol has extended our short-term policy of not charging premium for employees who are being paid but not working during the pandemic.
The federal government passed the CARES Act and the Paycheck Protection Program, both of which were designed to support businesses and workers. The Paycheck Protection Program provides loan forgiveness for companies that keep employees on their payroll even if they aren’t working.
We expect some businesses to pay wages to employees who are not performing work. Because there is no exposure for workers’ compensation claims when an employee is being paid but not working, Pinnacol implemented a short-term policy of not charging premium for the time these employees are not working.
This policy is effective for the period between March 11, 2020, and June 30, 2020. However, we’re extending our policy to the end of the year, December 31, 2020.
To qualify, employers must keep separate payroll records for employees being paid but not working, for audit purposes. Employers will also be required to record the names of the impacted employees and the percentage of time they are not working.
Please feel free to share this Policyholder FYI with your customers. If you have any additional questions, please contact your Pinnacol underwriter or agency relationship manager.