In my area if there are three or less in your company, you are not required to carry WC. We are also rated on each employees "risk factor", but officers salaries are limited to $15,000 a year ... the rest of their salary doesn't count towards WC.PipeGuy said:In my state owners don't have to have WC insurance, employees do, regardless of pay rate or class. The primary factor for the rate charged is the risk 'classification' of the work that an employee does. Sales, office and administrative classifications typically are charged at lower rates than the jobs that are at the install level. Project Managers may be classified at lower risk levels depending on the amount of time they spend on the job and the nature of influence they have over it. I'm getting a quote from what looks to be a pretty good Agency in Emittsburg. PM me if you want the contact info.
mdshunk said:Does paying a person a salary as opposed to an hourly wage exempt the employer from paying workman's comp?
Yes, that is what I meant. I have noticed a trend among some local contractors in that they are starting to salary some of their key people. I figure that there must be a business benefit somewhere in that, but I'm still struggling to figure out what that might be. I know it's not to even out short weeks, because these are busy contractors. It might be to get more work without paying overtime pay.Mike Finley said:I assume your question is in regard to regular employees and not owners.
It's possible that it is to avoid the overtime pay, but not every salaried employee is excempt from the new overtime law. You gotta be a "professional" most of the time to qualify. Construction jobs?mdshunk said:Yes, that is what I meant. I have noticed a trend among some local contractors in that they are starting to salary some of their key people. I figure that there must be a business benefit somewhere in that, but I'm still struggling to figure out what that might be. I know it's not to even out short weeks, because these are busy contractors. It might be to get more work without paying overtime pay.