WCIRB Quick Reference Guide 2014 A summary of approved changes to the Insurance Commissioner’s workers’ compensation regulations published by the WCIRB

The following changes to the California Workers’ Compensation Uniform Statistical Reporting Plan—1995 (Uniform Statistical Reporting Plan), the California Workers’ Compensation Experience Rating Plan—1995 (Experience Rating Plan) and the Miscellaneous Regulations for the Recording and Reporting of Data—1995 (Miscellaneous Regs) were approved by the Insurance Commissioner effective January 1, 2014.

Uniform Statistical Reporting Plan

This Guide was created by the WCIRB as a convenience for its members, agents and brokers, policyholders and others. It does not bear the official approval of the California Department of Insurance and is not a regulation.

■ In Section III, Rule 4a, Clerical Office Employees, was amended to include additional duties.

This Guide may not contain a description of all approved changes. For more information, please view the actual plan. To view, download or print a copy of the Uniform Statistical Reporting Plan, Experience Rating Plan or Miscellaneous Regs, please visit www.wcirb.com.

In addition to the changes shown below, there were a number of changes throughout the Plan for clarity and consistency.

Part 3, Standard Classification System

■ In Section IV, Rule 2, Construction or Erection Work, was amended to clarify the procedure applicable to dividing a single employee’s payroll between two or more construction or erection classifications and for consistency. ■ In Section IV, Rule 2a(1), Records of Payroll, was amended to provide for the use of collective bargaining agreements to validate an employee’s hourly wage. ■ In Section IV, Rule 2, Subrule a(3)(a), Regular Hourly Wage Calculation, was amended to provide that the regular hourly wage calculation is computed on a per period basis and for clarity and consistency.



Effective January 1, 2014

Table of Contents

1 Uniform Statistical Reporting Plan Classification Changes 2 Dual Wage Threshold Changes 3 Payroll Min/Max Changes 3 New and Eliminated Classifications 4 Cross References and Changes in Classification Scope 5 Experience Rating Plan Changes 6 Experience Rating Eligiblity Threshold

■ In Section IV, Rule 3, Electronic Products Manufacturing, was added to clarify the classification procedure for manufacturers in the Electronics Industry Group. The subsequent rules were renumbered for consistency. ■ Section IV, Rule 5 –– Subrule b was amended to clarify that, in addition to being determined based upon the type of merchandise sold, the applicable Store classification is also determined based upon the type of merchandise leased, consigned or auctioned. –– Subrule b(1) was amended to provide that when the products sold by a store operation includes lottery tickets for games authorized by the California State Lottery, only that portion of the sales proceeds identified by the California State Lottery as commission shall be included in determining the percentage of gross receipts. –– Subrule b(2) was amended to clarify the classification procedure for showroom salespersons who sell exclusively from samples to buyers for stores.

6 Miscellaneous Regulations Changes

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WCIRB Quick Reference Guide 2014

■ Section IV, Rule 5 (continued) –– Subrule c was added to provide that the incidental assembly and preparation of merchandise for sale shall be assigned to the store classification. –– Subrule d was added to include the classification procedure for a repair department that is operated in connection with a store for clarity. –– Subrule e was amended for clarity and to provide the classification procedure for stores that maintain a hot food preparation department. –– Subrule f was added to direct that firms that operate mobile food trucks for the retail selling of packaged and cold foods shall be classified as 8017(1), Stores – retail, and that the operation of mobile food trucks shall be classified as 9079(1), Restaurants or Taverns – all employees. ■ In Section V, Rule 1, Payroll – Remuneration, the minimum and maximum payroll limitations for executive officers, partners, individual employers, and members of a limited liability company were amended to $42,900 and $109,200. ■ In Section VI, Rule 1, Inspection of Employer’s Premises, was amended to eliminate the requirement that field inspectors not discuss their observations or provide information to the employer during the field inspection. ■ Section VII, Rule 1, Subrule a, Industry Groups, was amended to reflect the proposed establishment of Plastic Products Manufacturing as an industry group.

Classification Changes Section VII, Standard Classification System, was amended as follows:

Wage Threshold Changes for Dual Wage Classifications 2013 Threshold

2014 Threshold

Plumbing

$24.00

$26.00

Refrigeration Equipment

$24.00

$26.00

5190 / 5140

Electrical Wiring

$28.00

$30.00

5484 / 5485

Plastering / Stucco Work

$25.00

$27.00

5538 / 5542

Sheet Metal Work

$25.00

$27.00

6218(1) / 6220(1)

Excavation

$26.00

$30.00

6218(2) / 6220(2)

Grading Land

$26.00

$30.00

6218(3) / 6220(3)

Land Leveling – farm

$26.00

$30.00

6307 / 6308

Sewer Construction

$26.00

$30.00

6315(1) / 6316(1)

Water Mains Construction

$26.00

$30.00

Gas Mains Construction

$26.00

$30.00

Code

Phraseology

5183(1) / 5187(1) 5183(2) / 5187(2)

6315(2) / 6316(2)

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WCIRB Quick Reference Guide 2014

Payroll Minimum and Maximum Changes Payroll Minimum

Payroll Maximum

$30,500

N/A

Radio / Television Stations

N/A

$109,200

Theaters – music ensembles

N/A

$109,200

9156

Theaters – dance / opera

N/A

$109,200

9181

Athletic Teams / Parks

N/A

$109,200

9610

Motion Pictures – production

N/A

$109,200

N/A

Executive Officers

$42,900

$109,200

Code

Phraseology

7365

Taxicab Operations

7610 9151

New Classifications An Industry Group for Plastic Products Manufacturing was established and the associated classifications were amended for clarity. ■ 2585(2), Dyeing ■ 2589(2), Dry Cleaning – N.O.C. ■ 5029, Concrete Sawing / Drilling ■ 9016(4), Boat Marina / Rental Operation ■ 9095, Event Market, Festival or Trade Show Operation – all employees

Eliminated Classifications ■ 2586(1), Dry Cleaning / Dyeing ■ 2586(2), Yarn / Thread Dyeing / Finishing ■ 2586(3), Hide / Fur Cleaning ■ 3724(3), Concrete Sawing / Drilling

Coming Soon STAR Online for Agents and Brokers In January, STAR Online for Agents and Brokers will be launched. Access: ■ Experience Modifications ■ Unlimited X-Mod Direct® subscriptions ■ Experience Rating Worksheets if you are the agent/broker of record ■ Inspection Reports if you are the agent/broker of record Register as an individual or register your entire office. The service is free. WCIRB Online user accounts will be converted into STAR Online user accounts in January 2014. More details will be available in December.

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WCIRB Quick Reference Guide 2014

Amended to Include a Cross Reference, or to Include or Exclude Activities To see the full classification phraseology, see Part 3, Section VII of the Plan. 0005, Nurseries – propagation

8232(2), Building Material Dealers

0035, Florists – cultivating

8267, Machinery / Equipment Dealers

0042, Landscape Gardening

8290, Warehouses – self-storage

2501(1), Clothing Mfg.

8390, Auto Van Conversion

2585, Laundries

8391, Automobile / Truck Dealers

2589, Dry Cleaning or Laundry – retail

8601(1), Engineers – consulting

2702(1), Logging / Lumbering

8740(1), Apartment / Condo – property management supervisors

3039, Reinforcing Steel Fabrication 3066(1), Sheet Metal Products Mfg. 3081(1), Foundries – iron 3082, Foundries – steel castings 3085, Foundries – non-ferrous

8740(3), Building Operation – property management supervisors 8740(4), Mobile Home Park – property management supervisors

3400, Metal Goods Mfg.

8740(6), Apartment / Condo for Seniors – property management supervisors

3647(2), Lead Mfg. / Reclaiming / Alloying

8748, Automobile / Truck Dealers – salespersons

3724(2), Electrical Machinery – installation

8807, Newspaper, Magazine or Book Publishing

4049(1), Potteries

8813(1), Printing – editing

4299(1), Printing Operation

8813(2), Bookbinding Operation – editing

4304, Newspaper Publishing

8818, Newspaper Publishing – editing

5102(1), Iron / Steel – non-structural

8829(1), Nursing Homes

5107, Door / Pre-Glazed Window Installation

8829(2), Convalescent Homes / Hospitals

5108, Door Installation – overhead

8829(4), Rest Homes

5146(1), Cabinet / Fixtures – installation

8829(5), Sanitariums

5201(2), Concrete / Cement Work – low wage

8851, Congregate Living Facilities

5205(2), Concrete or Cement Work – high wage

9007, Apartment / Condo Operation

5213, Concrete Construction

9010, Mobile Home Park Operation

5446, Wallboard Application – low wage

9011, Apartment / Condo Operation

5447, Wallboard Application – high wage

9015(1), Building Operation – N.O.C.

5474(1), Painting – low wage

9016(1), Amusement Rec. Facilities

5482(1), Painting – high wage

9043, Hospitals

5606, Contractors – exec supervisors

9059, Day Care Centers

6233, Oil / Gas Pipeline Construction

9070(1), Residential Care Facilities – Elderly

6307, Sewer Construction – low wage

9070(3), Residential Care Facilities – Adults

6308, Sewer Construction – high wage

9079(1), Restaurants / Taverns

7198(1), Parcel Delivery Companies

9180(1), Amusement Rec. Facilities

7219(3), Mobile Crane / Hoisting Service

9410, Municipal / State / Public Agency

7601, Aerial Line Construction

9420, Municipal /State / Public Agency

7607(2), Audio Post Production

9501(3), Painting – automobile / truck bodies

8001, Stores – florists

9519(1), Household Appliances

8028(1), Equipment / Machinery Rental

9522(1), Upholstering

8028(2), Machinery / Equipment Rental

9522(2), Furniture – upholstering

8032, Stores – clothing / dry goods

9522(3), Automobile Body Upholstering

8107, Machinery Dealers

9522(4), Coffin / Casket Upholstery

8232(1), Lumberyards

9522(5), Wheelchair Upholstering

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WCIRB Quick Reference Guide 2014

Part 4, Unit Statistical Report Filing Requirements ■ Part 4 was amended to require electronic submission of unit statistical reporting data. Other changes were made for consistency. ■ Amendments were made to clarify the reporting of supplemental job displacement vouchers in accordance with the labor code as amended by Senate Bill No. 863 (2012).

Education on Demand Visit the www.wcirb.com Learning Center to view the new online Education on Demand learning modules. Modules Available Now:

Appendix I, Pure Premium Rate Section – Effective January 1, 2013 Appendix I was eliminated. Pure premium rates will be published on the WCIRB website upon receipt of the pure premium rate filing decision. The subsequent appendices were renumbered.

Appendix II, Construction and Erection Classifications Appendix II was amended for consistency with other approved changes.

■ Introduction to Experience Rating

Appendix III, Payroll/Remuneration Table

■ Loss Valuation and Reporting

Appendix III entry regarding Private Residence Employees was amended for clarity and consistency.

■ Eligibility and Qualification ■ Classification Basics

Appendix IV, Unit Statistical Report

■ Standard Exceptions

Appendix IV was eliminated as the WCIRB no longer accepts hard copy unit statistical reports.

■ Ownership and Experience Rating

Appendix V, Required Loss Fields for Particular Injury Types and Types of Claims Appendix V was eliminated as this information is already contained in the Plan.

Experience Rating Plan

Revisions Approved Effective January 1, 2014 Section II, Definitions Amended to reflect that pure premium rates are no longer included as part of the Uniform Statistical Reporting Plan.

Section III, Eligibility and Experience Period ■ Rule 1, Eligibility Requirements for California Workers’ Compensation Insurance, was amended to indicate that the experience rating eligibility threshold approved by the Insurance Commissioner will be separately published by the WCIRB. ■ Rule 3, Experience to be Used for Rating California Workers’ Compensation Insurance Risks, Subrule g, was amended to remove an exception related to unaudited payroll and to remove the cross-reference to the Uniform Statistical Reporting Plan for consistency with other approved changes. ■ Rule 5, Self-Insurers’ Data, was amended to: –– Reference the appropriate form for submission of self-insured data to the WCIRB –– Confirm that self-insured data is subject to all the rules of the Experience Rating Plan, Miscellaneous Regulations and the Uniform Statistical Reporting Plan –– State that an experience modification will not be promulgated with partial self-insured data –– Confirm that any claims that are open on the original report must be revalued and subsequent reports submitted in accordance with the Uniform Statistical Reporting Plan and for clarity

Section VI, Tabulation of Experience ■ Section VI was amended to reflect that the rating values currently included in Table II and Table III will be separately published separately by the WCIRB. ■ Rules 4(h), 9, 12(a) and 13(b) were amended for clarity and consistency with other approved changes.

Section VII, Rating Procedure ■ Section VII was amended to reflect that the rating values currently included in Table II and Table III will be published separately by the WCIRB upon approval by the Insurance Commissioner.

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WCIRB Quick Reference Guide 2014

Tables of Experience Rating Plan Values ■ Table I, Primary Values of Actual Losses, was eliminated as it is no longer necessary. ■ Table II, Expected Loss Rates and Full Coverage D-Ratios and Table III, Credibility Primary and Credibility Excess Values, were eliminated as these values will be published upon receipt of the pure premium rate decision.

Experience Rating Eligibility The approved experience rating eligibility threshold is $30,300.

Miscellaneous Regulations for the Recording and Reporting of Data Effective January 1, 2014

■ Part 2, Section III, Additional Interests, was amended to clarify the rule with respect to joint ventures. ■ Part 3, Section II, Procedure for Obtaining Approval of Group Workers’ Compensation Insurance, was amended for clarity.

© 2014 Workers’ Compensation Insurance Rating Bureau of California. All rights reserved. No part of this work may be reproduced or transmitted in any form or by any means, electronic or mechanical, including, without limitation, photocopying and recording, or by any information storage or retrieval system without the prior written permission of the Workers’ Compensation Insurance Rating Bureau of California (WCIRB), unless such copying is expressly permitted in this copyright notice or by federal copyright law. No copyright is claimed in the text of statutes and regulations quoted within this work. Copies may be made and distributed for the purpose of facilitating the transaction of workers’ compensation insurance in California, provided that all copyright and other proprietary notices are kept intact. To seek permission to use any of the WCIRB Marks or any copyrighted material, please contact the Workers’ Compensation Insurance Rating Bureau of California, 525 Market Street, Suite 800, San Francisco, California 94105-2767. MC14-0613 Workers’ Compensation Insurance Rating Bureau of California®

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