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Through James moore

Friday May 28, 2021 | 0

One of the most vilified forms of the grievance process is the declaration of workers’ wages.

James moore

Many states require very complex forms to be filed by claims departments. Employers generally appreciate them even less. The term “necessary evil” comes to mind on what can be an important task.

An article on the definition of salary declarations can be found here.

Again, in many files that I have reviewed, workers’ pay slips have never been reviewed or questioned by claims staff. The state will process whatever is sent.

Once a wage statement has been calculated by the workers’ committee, its modification becomes very difficult. Sometimes the commissioner or judge can increase the salary if the injured employee questions the numbers.

An example of one of the more complex pay stubs is from North Carolina, a Form 22 – Statement of Employee Days Worked and Earnings. The total number of blanks to be completed is approaching 400. Salary declarations for some states are much simpler.

I’m not kidding about North Carolina. But the New Hampshire salary declaration form, for example, isn’t that complicated to fill out.

Use Google to find the salary declaration form for your respective state. You may have to look further down the page to find it.

Nightmares of workers’ pay declarations

Why am I covering this boring topic? In the last few months, the situations that I have seen appear repeatedly involve the employer not filling out the salary declaration or that an inaccurate declaration has been filed and accepted by the state.

Two examples:

  • The employer did not complete the pay slip until the matter went to a hearing on many topics, including a rate of pay. The employee was earning $ 400 per week, according to the first injury report. Since no salary statement was filed, the judge awarded the state maximum rate. What was a rate of $ 400 per week became $ 1,250 with an associated compensation rate of $ 833.38. Wow!
  • The employer incorrectly completed the pay slip. An obvious mistake has been made. The very busy expert filed the salary statement without making a cursory examination. What should have been a rate of pay of $ 225 per week turned out to be $ 415. The employee was declared permanent / total with lifetime benefits. There was no way to change the overpayment rate of $ 190 per week for lifetime benefits.

Bottom Line: Workers’ pay statements can be difficult to complete and review, but doing both of these tasks will result in fair and timely wages for the employee. Ignoring the importance of the pay statement can be very costly.

This blog post is provided by James Moore, AIC, MBA, ChFC, ARM, and is republished with permission from J&L Risk Management Consultants. Visit the full website at www.cutcompcosts.com.


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