Rate Framework Policy Consultation

June 5, 2019 Announcement – Temporary Employment Agencies Transition to the Rate Framework Policy

The Temporary Employment Agencies Transition to the Rate Framework policy was developed to support the transition of temporary employment agencies (TEAs) to the new model in 2020. 

Like the other rate framework policies, this policy will come into effect on January 1, 2020.

Policy Overview

14-01-10, Temporary Employment Agencies Transition to the Rate Framework (PDF) 

The Temporary Employment Agencies Transition to the Rate Framework policy is a new policy that outlines the special rules to transition temporary employment agencies (TEAs) to the new model. Specifically:

  • TEA’s pre 2020 experience related to supply of worker business activities will generally not transfer to the new model.
  • Starting in 2020, TEAs will be assigned the class average premium rate for each of their supply of worker operations (e.g., supply of workers to Class A, NAICS code 561320 etc.) until they gain sufficient experience post January 1, 2020 to become eligible for a risk adjusted rate.

The special rules are necessary to account for the significant change to the method of classifying TEAs in the new model and to meet the objective of generally aligning the premium rates of TEAs and their client employers. 

March 7, 2019 Announcement – Transition to the Rate Framework Policy

The Transition to the Rate Framework policy (PDF) was developed to support the transition of Schedule 1 businesses registered with the WSIB to the new model in 2020.

The policy is being posted in advance to meet the WSIB’s commitment to provide the transition policy the year ahead of implementation.

Like the other rate framework policies, this policy will come into effect on January 1, 2020.

December 6, 2018 Announcement – Temporary Employment Agency Policy

In June 2018, following extensive stakeholder consultation, we released the final versions of the core rate framework policies.

At that time, the final version of the Temporary Employment Agency (TEA) policy was not released because the previous government had proclaimed Schedule 5 of the Stronger Workplaces for a Stronger Economy Act, 2014 (Bill 18).  It amended the Workplace Safety and Insurance Act, 1997 to enable the development of a new regulation that would impact TEAs and the businesses they supply workers to. We noted that if such a regulation was developed, it may be necessary to revisit the TEA policy.

A new regulation has not been developed. As a result, it is not necessary to revisit the TEA policy at this time and the final version can now be released.

The final version reflects feedback from our stakeholders about all the draft rate framework policies, and specifically simplifying the content of the policy. A key change to simplify the policy was made regarding classification. The initial draft TEA policy indicated TEAs would be classified in the 6-digit NAICS code(s) and premium rate setting class (or classes) of the businesses they supply workers to. To simplify the classification process, the final version notes that TEAs will now only be classified in the premium rate setting class (or classes).

Like the other policies for our new premium rate setting model, the TEA policy will come into effect on January 1, 2020.

Policy Overview

14-01-08, Temporary Employment Agencies (PDF)

The TEA policy is a new policy that outlines the special classification rules that will apply to TEAs under the premium rate setting model. In particular, with respect to the workers TEAs supply to client employers, they will be classified in the premium rate setting class(es) of the client employers.

Policy Consultation

We carried out a policy consultation on the core rate framework policies from August 14, 2017 to January 15, 2018. We would like to thank everyone who participated in the policy consultation (you can view all of the submissions here, and read the consultation summary). The feedback we received was very valuable and has informed our revised, approved policies.

What is changing?

In November 2016, following a multi-year initiative and extensive stakeholder consultations, our Board of Directors approved the rate framework and the amended Regulation (O. Reg. 175/98) under the Workplace Safety and Insurance Act, 1997. The amended regulation has since been approved by the Ontario government.

The rate framework changes how businesses are classified and how their premium rates are set. To support the new premium rate setting model, we are publishing six revised and new policies. 

As of January 1, 2020, the rate framework policies will replace our current suite of policies concerning classification, rate setting and retroactive experience rating. The policy revisions and deletions are outlined below:

Current policy Replacement policy under the rate framework
(N.B. the policies are meant to be read in the order listed below)

Schedules 1 & 2 (12-01-04)

Coverage Status (12-01-04) (PDF)

The Classification Scheme Policy (14-01-01)
Single Classification (14-01-02)
Special Ancillary Rules (14-01-05)

The Classification Structure (14-01-01) (PDF)

Segregated Payrolls (14-01-03)
Aggregated Payroll (14-01-04)

Single or Multiple Premium Rates (14-01-07) (PDF)

Associated Employers Policy (14-01-06)

Associated Employers (14-01-06) (PDF)

Merit Adjusted Premium Program (13-02-04)
NEER (New Experimental Experience Rating Plan) (13-02-02)
Construction Industry Plan (CAD 7) (13-02-06)

Employer Level Premium Rate Setting (14-02-01) (PDF)

Adjustments to CAD-7 Refunds and Surcharges (13-02-05)
Adjustments to NEER Refunds and Surcharges (13-02-07)
Employer Premium Adjustments (14-02-06)

Employer Premium Adjustments (14-02-06) (PDF)

Why now?

The rate framework policies are being published well in advance of implementation to provide businesses with an understanding of how they will be classified and how their rates will be set under the new premium rate setting model. We committed to providing at least one year’s notice to all businesses on the content of the policies, to ensure you’re well prepared for the coming changes, and this advance posting upholds that commitment. The policies will come into effect in time for implementation of the new model on January 1, 2020.

What can we expect moving forward?

We will continue further policy development in support of the rate framework, and we expect to issue further policy changes (minor and housekeeping) to align with the core policies and to ensure a smooth transition for all businesses.

We are committed to extensive engagement and education for businesses as we transition to the new premium rate setting model in 2020.  Later this year, we will be sending every business registered with the WSIB a letter about premium rates under the rate framework.

You can also visit our rate framework webpage for news, updates and useful resources to learn more about the new model.

Rate framework policy overview

12-01-04, Coverage Status

The Coverage Status policy outlines the ability of businesses in either Schedule 2 industries or industries described in Schedule 1, Part II to apply for mandatory coverage under Schedule 1. This policy has been revised to be simpler and easier to understand, and is aligned with the revised Schedule 1 of Ontario Regulation 175/98, which was recently changed to reflect the new classification structure.

The detailed guidelines for applying for Schedule 1 coverage, including the conditions for cancelling Schedule 1 by-application coverage, will remain in Policy 12-01-02, Employer by Application.

14-01-01, The Classification Structure

The revised Classification Structure policy is simpler, easier to understand and supports our new classification structure under the rate framework. The new classification structure will consist of 34 classes and subclasses that are adapted from the North American Industry Classification System (NAICS).

The policy defines the key concepts, such as business activity, classification, and classification change. As is the case today, we will not separately classify support operations that are not business activities in their own right. Also, specific classification rules apply to businesses with multiple business activities that maintain segregated payrolls versus a business that does not.

14-01-07, Single and Multiple Premium Rates

The Single and Multiple Premium Rates policy introduces new rules for how we determine whether businesses with more than one business activity are assigned a single premium rate, based on predominant class, or are eligible for multiple premium rates.

In order to be assigned a separate premium rate for a business activity, in a 6-digit NAICS code, your business activity must be significant and must not be considered integrated with the business’ other operations. This is intended to maximize the benefits of the employer level premium rate setting approach under the rate framework.

14-01-06, Associated Employers

The Associated Employers policy replaces existing policy and now allows us to combine the claims experience and insurable earnings of two or more businesses to set premium rates. To support this expanded policy direction, the changes include a new two-part “test” to determine whether two or more businesses are associated. The test of affiliation focuses on the structure of your business. The test of cooperation focuses on what your business does and how it works with other affiliated businesses.

Employer Level Premium Rate-Setting, 14-01-02

The Employer Level Premium Rate Setting is a new policy that outlines our two-step model to set premium rates for Schedule 1 businesses for the upcoming year. Step 1 involves setting a class average premium rate based on each class’ share of responsibility for the costs generated to maintain the insurance fund.  Step 2 involves setting a risk adjusted premium rate for each business based, in part, on how their risk and claims experience compares with the collective experience of their class.

14-02-06, Employer Premium Adjustments

The Employer Premium Adjustments policy outlines the circumstances under which we will adjust the premiums billed, payable, or previously paid by employers. Most adjustments will be limited to January 1st of the third prior year, with some exceptions. 
A major feature of this policy includes the collapsing (or in some cases, expanding) of certain windows for adjustments to premiums already paid, or premiums billed/owed by businesses. Our new adjustment approach covers three separate policies, and amalgamates them all into one, comprehensive policy.

Rate framework policy consultation submissions