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Workers’ Comp Reclassification Notice

This page provides a clear, factual overview of what a Workers’ Comp Reclassification Notice involves, why organizations receive it, how risk is evaluated, and the typical steps required to resolve it. These insights are based on patterns seen across Construction, manufacturing, logistics, field services, healthcare staffing, and facilities maintenance. and common issues identified in audits.

Summary of Issue

Workers’ Comp Reclassification Notice reflects a workers’ compensation premium audit reviewing payroll and job classifications for misreported or unreported workers. It is typically issued when Reported payroll or job classifications were inconsistent with the level of risk or the number of workers actually performing services.


Agency
Workers’ compensation carrier / rating bureau
Location
Multi-state
Issue Type
Workers’ compensation / insurance rating misclassification
Risk Level
Medium
Common Reason
Reported payroll or job classifications were inconsistent with the level of risk or the number of workers actually performing services.
Penalty
Retrospective premium adjustments, penalties, and reclassification charges for misreported payroll and job risk.
Fix Action
Work with legal and tax advisors to review worker roles, documentation, and reporting and respond to the agency by the stated deadline. Provide accurate job classifications and payroll data to the carrier or bureau and correct historical reporting if required.
Year Range
Typically reviews 3–4 years of records; in serious or repeat cases, the lookback period can extend further.
Industry Examples
Construction, manufacturing, logistics, field services, healthcare staffing, and facilities maintenance.

How TCWGlobal Helps Companies Facing a Workers’ Comp Reclassification Notice

Letters like the Workers’ Comp Reclassification Notice often occur when organizations experience gaps in documentation, worker classification, onboarding processes, or payroll reporting. These issues become more common as companies scale, work with more contractors, or manage projects across multiple states and agencies.

TCWGlobal helps by supporting compliant payrolling for workers you already sourced, centralizing documentation, maintaining accurate worker records, and ensuring onboarding and reporting remain consistent across all projects and departments.

For industries like Construction, manufacturing, logistics, field services, healthcare staffing, and facilities maintenance., where audits related to Workers’ compensation / insurance rating misclassification commonly appear, our team reduces risk by helping clients maintain clean worker files, correct classification, and auditable payroll data.

When issues arise, TCWGlobal supports you in preparing required documentation, correcting records, and implementing processes that help prevent future Workers’ compensation carrier / rating bureau assessments or penalties.