Losses are compared to the payroll for each class code.  Each company is generally assigned one governing code. Exceptions to that code are Clerical, Outside Sales, and Executive Officers. Each code has a rate that reflects the amount of loss dollars expected over time for that work.  Clerical Workers’ Compensation rates are therefore very low while roofers rates are very high.

The Experience Modifier calculation is changing to include larger losses in the “frequency” portion of the calculation. These fully includable, small claims, have recently increased to $15,500.   This change took effect on 7-1-2015 in Texas.