Legal Alert - Recent Legal Decisions Prove That Your Experience Modification Rate Matters More Than Ever
by Eric H. Spencer
Contractors have always paid close attention to their Experience Modification Rate, or EMR, in order to control their workers’ compensation premiums. A recent change to the EMR formula used in most states potentially pushed those premiums higher, but the change also may have caused some contractors to lose work if their EMR suddenly exceeded 1.0—the magic number for many private and public contracts. This phenomenon has pushed the EMR onto center stage in recent legal battles, including government contract bid protests, yielding important lessons for contractors and underscoring the importance of keeping your EMR at 1.0 or below.