Washington Administrative Code › Title 296 - Labor and Industries, Department of › Chapter 296-17 - General reporting rules, audit and recordkeeping, rates and rating system for Washington workers' compensation insurance › Section 296-17-31017 - Multiple classifications

Current through Register Vol. 24-14, July 15, 2024
(1)
Can I have more than one basic classification assigned to my
			 account?
Yes, sometimes we will give you more than one basic
				classification because:
* The basic classification that describes your business
				specifies certain duties that must be reported separately.
* You have employees performing work described in the general
				exclusions, WAC
				296-17-31018(4).
* You are a contractor with workers performing more than one
				phase of construction, as described in WAC
				296-17-31013.
* You operate a farm that raises more than one type of crop or
				animal, as described in WAC
				296-17-31014.
We also may assign more than one basic classification when a
				single classification does not describe all of your business operations because
				you have multiple enterprises.
A multiple enterprise is when you:
* Operate a secondary business with operations we do not
				normally consider related to your other business operations; or
* Have multiple retail stores.
When all four of the following conditions apply, we will add a
				basic classification(s) for a multiple enterprise:
* You maintain accurate payroll records that clearly
				distinguish the work performed for each business.
* Each business is physically separated and distinct.
* Each business can operate independently of any others. If one
				business closes, any others are able to continue on their own.
* The classifications are permitted to be assigned together by
				classification descriptions and general reporting rules.
If any of these conditions do not apply, we will assign your
				firm the classification(s) that identifies:
* Your principal business (this is the business that has the
				greatest number of hours); and
* Any secondary business operations that are higher rated than
				your principal business.
Note:
Whenever you have more than one
				classification assigned to your account, you must keep accurate records of the
				hours (or alternative reporting units) worked by each employee in each
				classification. Using percentages, averages, or estimates is
not
permitted. If you do not have original time card or time book entries to
				support how you are reporting, all worker hours in question will be assigned to
				the highest rated classification to which the worker was exposed. An
				explanation of necessary payroll records can be found under WAC
				296-17-35201.
(2)
My business is assigned a basic
			 classification and a standard exception classification. I have an employee who
			 works in both classifications. Can I divide this employee's hours (or
			 alternative units) between the two classifications on my quarterly
			 report?
Normally you cannot report employees in a standard exception
				classification if they also perform duties covered by a basic classification.
				If any of their work is covered by a basic classification, then all of their
				hours (or alternative reporting units) must be reported in the basic
				classification.
The only time you are permitted to divide a worker's hours
				between a standard exception classification and a basic classification is when
				the basic classification is assigned to you because it is a general exclusion
				under WAC
				296-17-31018(4).
(3)
Can I divide an
			 employee's hours between two standard exception classifications on my quarterly
			 report?
No, you cannot divide employees' hours between two standard
				exception classifications. You must report all of their hours in the highest
				rated standard exception classification applicable to their work.
(4)
I have more than one
			 basic classification assigned to my business and I have employees who work in
			 more than one of these classifications. Can I divide their hours between these
			 basic classifications on my quarterly report?
Yes, you may divide an employee's hours between basic
				classifications when:
* The classification descriptions allow a division of hours;
				and
* You maintain records on each employee and the department can
				determine from those records the hours worked in each classification.
If the classification descriptions do not allow a division of
				hours, or if you do not maintain adequate records, you must report the workers'
				hours in the highest rated risk classification applicable to your business,
				unless your records show that a worker did not work in that
				classification.
For the following examples, suppose an employer has the
				classifications and rates shown below:
Risk Class
Description
Rates*
0507 05
Roofing work
$7.37/hour
0510 00
Wood frame building construction
$4.71/hour
0513 00
Interior finish carpentry
$2.01/hour
Example 1:
If the employer does not keep records
				of which classifications an employee worked in, all of the employee's hours
				must be reported in classification 0507.
Example 2:
If the employer's records show the
				employee worked only in classifications 0510 and 0513, but no time records were
				kept, all of the employee's hours must be reported in classification
				0510.
Example 3:
If the employer's records show the
				hours the employee worked in classification 0510 and the hours the employee
				worked in 0513, the employer may report the employee's hours in both
				classifications.
* The rates above do not reflect actual rates and are only
				intended for the purpose of this example.
(5)
I have employees with duties that
			 support more than one basic classification, but it is not possible to
			 distinguish their hours between classifications. How do I report these workers'
			 hours?
Sometimes employers are unable to divide a worker's hours
				between two or more classifications because the work simultaneously supports
				more than one basic classification. When this occurs, you must report the work
				in the highest rated classification that the work supports.
Example 1:
You operate both a motel with
				classification 4905, and a restaurant with classification 3905. You have a
				laundry facility that cleans the linens for both the restaurant and for the
				motel and you choose not to distinguish schedules for washing the linens
				separately. If you do not maintain work or payroll records, you must report
				your employees in the higher premium rate classification.
If classification 3905 is higher than classification 4905, you
				need to report the laundry operations in classification 3905.
If classification 4905 is higher than classification 3905, you
				need to report the laundry operations in classification 4905.
Example 2:
You have a floor covering store and
				also offers installation services to your customers. Your store operations are
				under classification 6309 and your employees performing the installation
				service are under classification 0502.
Since delivery is included in both your classifications, when
				your workers deliver floor covering to one of your own job sites, their drive
				time must be reported in whichever of your classifications is higher premium
				rated.
Example 3:
You are a construction contractor and
				pay your workers for driving to and from the construction sites. Some of these
				workers work in more than one construction classification. You can keep records
				of when they work in each classification and report their hours at the job site
				accordingly, but all of their drive time on a given day must be reported in the
				highest rated construction classification they worked in the same day.
(6)
How can I find the rates
			 for the classifications assigned to my account?
Each of your classifications has a new rate assigned to it
				yearly. Your rates are on your annual rate notice and your quarterly report, or
				you may obtain your rates by contacting your account manager.
Statutory Authority:
				  RCW
				   51.16.035 and
				  51.04.020. 10-10-108, §
				  296-17-31017, filed 5/4/10, effective 7/1/10. Statutory Authority:
				  RCW
				   51.16.035. 98-18-042, § 296-17-31017,
				  filed 8/28/98, effective 10/1/98.