Bottom Line
As of January 1, 2020, the Workplace Safety and Insurance Board
(the "WSIB") will be replacing its current Schedule 1
employer classification system and premium and experience rating
programs with a new "Rate Framework". Under the Rate
Framework, experience rating programs will be eliminated and
employers will instead pay prospective and fluctuating premium
rates based on their individual claims experience. As of September
25, 2019, the WSIB started notifying employers of their new 2020
premium rates. This same day, the Ontario Government announced a
five-year WSIB premium freeze for all non-profits operating in the
province.
Purpose of the Changes
The WSIB's stated purpose of the Rate Framework is twofold:
(i) to establish employer classifications and premium rates that
more accurately reflect the risk presented by individual employers;
and (ii) to incorporate stability measures to limit premium rate
volatility.
