A complicated calculation for determining workers compensation premiums has evolved into a do-or-die benchmark on whether contractors are qualified to bid on many jobs, and some say that’s not fair, especially for smaller contractors.
It’s called the experience modification rate (EMR), and it’s based on previous workers’ comp claims versus payroll and other factors. The rate can lead to a reduction or increase in a company’s workers’ comp premiums. But over the years, the rate has come to mean much more in the construction industry, where the number has often become the final word on a construction company’s safety practices.