Civil Engineer Was On The Right Track With Workers Compensation Codes
A civil engineer was looking over the house that I am presently selling. He had asked me what I do for a living. I had told him that I am a worker’s compensation consultant.
He posed this question –
I work as a civil engineer. My company is moving all the civil engineers from a remote location into the main plant. Today we were told that they are setting up an offsite trailer for us with a barrier fence between the plant and us.
Why would they put us so far away from the plant and build a fence between the trailer and the plant? Is it some risk factor?
I said – “Well your plant manager did not do that because he does not like the civil engineers. It could be due to the Workers Compensation rating system. ”
I went on to explain that the civil engineers working inside the actual plant would likely cost the company a large amount of workers compensation premiums as the civil engineers could be grouped into a plant worker’s classification code.
The plant manufacturers large metal pipes so the difference would be huge in the Workers Compensation rate. I pulled out my trusty smartphone and pulled up the North Carolina Rate Bureau advisory lost costs.
- Class Code – 8742 (Civil Engineer that does not handle material manufactured) – .26 per $100 – very low rate
- Class Code- 3022 – (Pipe Mfg) – 4.81 per $100 – much higher rate
Comparing those two classification codes = 4.81 / .26 = 18.5 or 1850% more expensive if the group was included in the pipe manufacturing Class Code. Ouch!
He said so you are telling me that there is an 1850% difference if we work directly inside the manufacturing plant even though we are not involved in the manufacturing process? I said yes.
The average civil engineer salary is $83,750. Let us take that a step further.
83, 750 * (.26/100) = $217.75 in yearly premiums for Civil Engineer
83,750 * (4.81/100) = $4,028.38 in yearly premiums working in the plant
And yes, I have made a ton of assumptions, but the idea is the same. The plant manager and likely the CFO were smart not to bring the civil engineers into the plant. I am sure there were many other considerations. Workers Comp rates would have likely been one of the considerations.
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