Sunday, August 8, 2010

WSIAT website, June 1, 2010

Decision No. 877 10
  • Experience rating (NEER)
  • Negligence
  • Transfer of costs (NEER)

The appellant employer was a placement agency. A worker of the appellant employer was injured while placed in temporary assignment. The Board determined that two other employers were responsible for the accident and that this employer was not responsible for any negligence.

The first other employer was a Schedule 1 employer, and the Board transferred 50% of the accident costs to the account of the first other employer. The second other employer was not registered with the board. The Board pursued an action against the second other employer but has not recovered any money. The appellant employer was not provided with any relief for the portion of the claim costs. The employer appealed the decision denying removal of the full costs of the claim from its account for NEEr purposes.

When the Board attributed negligence to the two other employers, it was not implicitly making a finding that no costs should be included in the appellant employer's cost records for NEER purposes. Section 84 of the WSIA provides for transfer costs, but it applies only to transfers between Schedule 1 employers, thus it did not apply to the second other employer.

Board policy provides for removal of costs only if and when the Board recovers from the second other employer, which has not happened yet. The appellent employerwas not entitled to removal of 100% of the costs of the claim. The appellant employer was not in a position to benefit effectively from this provision because it has already benefitted from the transfer of costs provision. The appeal was dismissed.

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