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 296-17-31002 - General rule definitions

Current through Register Vol. 24-14, July 15, 2024
In developing the general reporting rules and classifications
				which govern Washington's workers' compensation classification plan, we have
				used certain words or phrases which could have several meanings. Many of these
				words or phrases are defined by law in the Revised Code of Washington
				(
Title 51
				RCW
). Some words, however, are not defined by law. To reduce the
				misunderstanding which can result by our use of certain words or phrases not
				defined in law (
Title 51 RCW
), we have developed
				definitions which will govern what these words and phrases mean for purposes of
				these chapters (
chapters 296-17 and 296-17A of the Washington
				Administrative Code (WAC)
).
The following words or phrases
				mean
:
Account:
A unique numerical reference that we
				assign to you that identifies your business or businesses and allows us to
				track exposure that you report to us and losses (
claims
) which
				we pay on your behalf.
Account manager:
An individual who works in the
				underwriting section of the department of labor and industries and manages an
				employer's workers' compensation insurance account. An account manager is also
				referred to as an underwriter.
Actual hours worked:
A worker's composite work
				period beginning with the starting time of day that the employee's work day
				commenced, and including the entire work period, excluding any nonpaid lunch
				period, and ending with the quitting time each day work was performed by an
				employee. The following example is provided to illustrate how work hours are to
				be reported. If you have questions on reporting please contact our underwriting
				section at 360-902-4817.
Example
:
A carpet
				installer arrives at the employer's place of business at 8:00 a.m. to pick up
				supplies, carpet, and the job assignment. The carpet installer arrives at the
				job site at 9:00 a.m. and works until 12 noon. The installer takes a half hour
				nonpaid lunch period and resumes working from 12:30 p.m. until 4:00 p.m. The
				installer then returns to the employer's premise to drop off supplies and
				carpet waste. The installer leaves the employer's premise at 5:30 p.m. The
				employer is to report nine hours of work time regardless of whether the
				employee is paid by the hour or by the number of yards of carpet
				installed.
All:
When a classification contains a descriptive
				phrase beginning with "
all
" such as in "
all
				employees,
" "
all other employees
," "
all
				operations
," or "
all work to completion
," it includes
				all operations and employments which are normally associated with the type of
				business covered by the classification. This condition applies even if the
				operations or employments are physically separated or conducted at a separate
				location. Operations or employments are to be classified separately when the
				classification wording requires it, or when the operations or employments are
				not incidental to, and not usually associated with, the business described by
				the classification.
And:
When this word is contained in any rule it is
				to be considered the same as the phrase "and/or."
Basic classification:
A grouping of businesses or
				industries having common or similar exposure to loss without regard to the
				separate employments, occupations or operations which are normally associated
				with the business or industry. Basic classifications describe a specific type
				of business operation or industry such as mechanical logging, sawmills,
				aircraft manufacturing, or restaurants. In most business operations some
				workers are exposed to very little hazard, while others are exposed to greater
				hazard. Since a basic classification reflects the liability (
exposure
				to hazard
) of a given business or industry, all the operations and
				occupations that are common to an industry are blended together and included in
				the classification. The rate for a basic classification represents the average
				of the hazards within the classification. All classifications contained in
				chapter 296-17A WAC are considered basic classifications with the exception of
				classifications 4806, 4900, 4904, 5206, 6301, 6303, 7100, 7101, and temporary
				help classifications 7104 through 7122. Classification descriptions contained
				in WAC 296-17A-0101 through
				296-17A-7400 establish the
				intended purpose or scope of each classification. These descriptions will
				routinely include types of businesses, operations, processes or employments
				which are either included or excluded from the classification. These references
				are not to be considered an all inclusive listing unless the classification
				wording so specifies.
Bona fide officer:
Any person empowered in good
				faith by stockholders or directors, in accordance with articles of
				incorporation or bylaws, to discharge the duties of such officer.
But not limited to:
When this phrase is used in
				any rule in this chapter or 296-17A WAC it is not to be interpreted as an all
				inclusive list. Such a list is meant to provide examples of operations,
				employments, processes, equipment or types of businesses which are either
				included or excluded from the scope of the classification.
Excludes or excluding:
When a classification
				contains a descriptive phrase beginning with "
excludes
" or
				"
excluding
" such as "
excluding drivers or
				delivery
," "
excluding second hand appliance stores
,"
				or "
excludes construction operations
," you must report those
				operations in a separate classification. If a business fails to keep the
				records required in the auditing recordkeeping section of rules in this chapter
				and we discover this, we will assign all workers' hours for which records were
				not maintained to the highest rated classification applicable to the work which
				was performed.
Exposure:
Worker hours, worker days, flat rate,
				licenses, material, payroll or other measurement which we use to determine the
				extent to which an employer's workers have been exposed to the hazards found
				within a particular business or industry classification.
Free from direction or control:
The contracted
				individual has the responsibility to deliver a finished product or service
				without the contracting firm or individual either exercising direct supervision
				over the work hours or the methods and details of performance or having the
				right to exercise that authority under the contract.
Includes or including:
When a classification
				contains a descriptive phrase beginning with "
includes
" or
				"
including
" such as "
including clerical
				office
," "
including meter readers
," or
				"
includes new construction or extension of lines
," you must
				report these operations in that basic classification even though they may be
				specifically described by some other classification contained in chapter
				296-17A WAC or may be conducted at a separate location.
Industrial insurance:
Refer to the definition of "
				workers' compensation insurance."
N.O.C.:
This abbreviation stands for not otherwise
				classified. Classifications are often worded in this way when there are many
				variations of the same general type of business and it would be nearly
				impossible to list all the variations. Before a classification designated with
				N.O.C. is used, all other related classifications must be reviewed to determine
				if the business or industry is specified in another classification.
Example
:
You operate a
				retail store that sells greeting cards. In our search to classify your business
				we come across a classification that covers retail stores N.O.C. Before our
				underwriter assigns this classification to your business, they would look at
				other retail store classifications to see if a more precise classification
				could be found. In our review we note several classifications such as grocery
				and department stores where greeting cards are sold. None of these
				classifications, however, specify that they include stores that exclusively
				sell greeting cards. Classification 6406 "Retail stores, N.O.C.," on the other
				hand, contains language in its description that states it includes stores that
				sell items such as greeting cards,
table top appliances, and
				tropical fish and birds. We would assign classification 6406 " Retail stores,
				N.O.C." to your business.
Or:
Refer to the definition of the word "
and.
"
Premium:
The total amount of money owed to the
				department of labor and industries as calculated by multiplying the assigned
				classification composite rate by the total units of exposure.
Principal:
When referencing
principal
				business, principal operations, principal enterprise,
or
principal
				classification;
refers to the business or portion of the business
				described by the basic classification with the most exposure (worker
				hours).
Principal place of business:
The physical location
				of the business from which the contract of service is directed and
				controlled.
Rate:
The amount of premium due for each unit of
				exposure. All rates are composite rates per worker hour except as otherwise
				provided for by other rules in this chapter or 296-17A WAC.
Related by blood within the third degree:
The
				degree of kinship as computed according to the rules of civil law.
Related by marriage:
The union subject to legal
				recognition under the domestic relations laws of this state.
Risk:
All insured operations of one employer
				within the state of Washington.
Temporary
staffing services:
Means the
				same as temporary help company, and applies to any person, firm, association or
				corporation conducting a business which consists of employing individuals
				directly for the purpose of furnishing such individuals on a part-time or
				temporary help basis to others.
Underwriter:
Refer to the definition of an
				"account manager."
Within a reasonable period:
Establishing an
				account with state agencies shall be the time prior to the first date on which
				the individual begins performance of service toward the contract or the date
				upon which the individual is required to establish an account with a state
				agency, as otherwise required by law, whichever event occurs later.
Work day:
Any consecutive twenty-four hour
				period.
Work hour:
Refer to the definition of "actual
				hours worked."
Workers' compensation insurance:
The obligation
				imposed on an employer by the industrial insurance laws (
Title
				51 RCW
) of the state
				of Washington to insure the payment of benefits prescribed by such
				laws.
Statutory Authority:
				  RCW
				   51.04.020,
				  51.16.035, and
				  51.16.100. 12-11-109, §
				  296-17-31002, filed 5/22/12, effective 7/1/12; 11-24-022, § 296-17-31002,
				  filed 11/30/11, effective 1/1/12. Statutory Authority:
				  RCW
				   51.16.035 and
				  51.04.020. 10-10-108, §
				  296-17-31002, filed 5/4/10, effective 7/1/10. Statutory Authority:
				  RCW
				   51.16.035,
				  51.16.100,
				  51.04.020(1).
				  09-16-110, § 296-17-31002, filed 8/4/09, effective 10/1/09. Statutory
				  Authority: RCW 51.06.035,
				  
											51.08.010,
				  51.04.020. 07-12-045, §
				  296-17-31002, filed 5/31/07, effective 7/1/07. Statutory Authority:
				  RCW
				   51.16.035,
				  51.16.100. 05-12-031, §
				  296-17-31002, filed 5/24/05, effective 7/1/05. Statutory Authority:
				  RCW
				   51.04.020 and
				  51.16.035. 04-18-025, §
				  296-17-31002, filed 8/24/04, effective 10/1/04. Statutory Authority:
				  RCW
				   51.04.020,
				  51.16.035, and
				  51.12.120. 03-23-025, §
				  296-17-31002, filed 11/12/03, effective 1/1/04. Statutory Authority:
				  RCW
				   51.16.035. 98-18-042, § 296-17-31002,
				  filed 8/28/98, effective 10/1/98.