June 13, Hand Delivered

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1 June 13, 2014 Hand Delivered The Honorable Dave Jones Insurance Commissioner California Department of Insurance 45 Fremont Street, 23rd Floor San Francisco, CA Market Street, Suite 800 San Francisco, CA Voice Fax Bill Mudge President & CEO RE: California Workers Compensation Insurance Regulatory Filing Effective January 1, 2015 CDI File No REG Dear Commissioner Jones: Pursuant to California Insurance Code section 11734, the Workers Compensation Insurance Rating Bureau of California (WCIRB), a licensed rating organization and the Insurance Commissioner s designated statistical agent, is submitting the enclosed regulatory filing for your review and approval. The WCIRB has provided notice of the proposed changes to interested individuals and organizations affected by the changes and will also notify them about this filing and provide a copy of the CDI s Notice of Proposed Action once it is issued. The WCIRB will submit copies of all such notices to the CDI before the close of the record in this matter. In addition, a copy of this filing as well as the CDI s Notice will be posted in the Publications and Filings section of the WCIRB s website ( Proposed Regulatory Changes Effective January 1, 2015 Amendments to the California Workers Compensation Uniform Statistical Reporting Plan 1995 contained in are proposed to become effective January 1, 2015 with respect to new and renewal policies as of the first anniversary rating date of a risk on or after January 1, These proposed amendments include changes to the Standard Classification System, changes to increase the premium threshold at which a physical audit of the policyholder s payroll is required, and other provisions for clarity, consistency and to conform to national data reporting specifications. Amendments to the Miscellaneous Regulations for the Recording and Reporting of Data 1995 contained in Section B are proposed to become effective January 1, 2015 with respect to new and renewal policies as of the first anniversary rating date of a risk on or after January 1, These proposed amendments are for clarity and consistency. Amendments to the California Workers Compensation Experience Rating Plan 1995 contained in Section C are proposed to become effective January 1, 2015 with respect to new and renewal policies as of the first anniversary rating date of a risk on or after January 1, These proposed amendments include changes for clarity and consistency.

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3 Workers Compensation Insurance Rating Bureau of California January 1, 2015 Regulatory Filing REG Submitted: June 13, 2014

4 WCIRB California 525 Market Street, Suite 800 San Francisco, CA Tel Fax 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 of the filing 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

5 Table of Contents Plans Subject to Insurance Commissioner Approval 1 Page Recommended Amendments to the California Workers Compensation Uniform Statistical Reporting Plan 1995 Title 10, California Code of Regulations, Section Effective January 1, 2015 Section B Recommended Amendments to the Miscellaneous Regulations for the Recording and Reporting of Data 1995 Title 10, California Code of Regulations, Section 2354 Effective January 1, 2015 Section C Recommended Amendments to the California Workers Compensation Experience Rating Plan 1995 Title 10, California Code of Regulations, Section Effective January 1, 2015 A-1 A-101 B-1 C-1 C-2 i

6 Plans Subject to Insurance Commissioner Approval The WCIRB is recommending: 1. Amendments to the California Workers Compensation Uniform Statistical Reporting Plan 1995 (Title 10, California Code of Regulations, Section ), to be effective January 1, 2015 and applied as of the first anniversary rating date of a risk on or after January 1, 2015 (); 2. Amendments to the Miscellaneous Regulations for the Recording and Reporting of Data (Title 10, California Code of Regulations, Section 2354), to be effective January 1, 2015 and applied as of the first anniversary rating date of a risk on or after January 1, 2015 (Section B); and 3. Amendments to the California Workers Compensation Experience Rating Plan 1995 (Title 10, California Code of Regulations, Section ), to be effective January 1, 2015 and applied as of the first anniversary rating date of a risk on or after January 1, 2015 (Section C). 1

7 Recommended Amendments to the California Workers Compensation Uniform Statistical Reporting Plan 1995 Title 10, California Code of Regulations, Section Effective January 1, 2015 It is recommended that the following amendments to the California Workers Compensation Uniform Statistical Reporting Plan 1995 be approved effective January 1, 2015 with respect to new and renewal policies as of the first anniversary rating date of a risk on or after January 1, Part 1 General Provisions Amend Section I, Introduction, Rule 3, Effective Date, to show that the effective date of the amended USRP is 12:01 A.M., January 1, Section I Introduction 3. Effective Date The provisions of this Plan are effective at 12:01 A.M., January 1, When an amendment to this Plan is approved, a notice summarizing the amendment and its effective date, as specified by the Insurance Commissioner, will be published by the WCIRB. This Plan and all amendments thereto, unless otherwise specifically provided, shall apply to a policy as of the first anniversary rating date of the risk, as established by the WCIRB, which occurs on or after the effective date of the amendment. (See the Experience Rating Plan, Section II, Definitions, Rule 12, Risk, for the definition of Risk, and Section V, Application of Experience Modification, Rule 1, General Application of Experience Modification, for information on the anniversary rating date). A-1

8 Part 3 Standard Classification System Amend Section III, General Classification Procedures, Rule 2, Single Enterprise, for consistency. Section III General Classification Procedures 2. Single Enterprise Example The employer operates a restaurant. Employees are retained as chefs, bakers, dishwashers, wait staff, hosts and hostesses, wine stewards, bartenders, janitors, car parking valets, coat check clerks, manager and assistant manager. In addition, a storage facility is operated at an additional location where restaurant supplies are stored pending use in the restaurant. The activities, duties, hazards and pay scales vary among positions. Classifications such as 2003, Bakeries and Cracker Mfg., 9008, Janitorial Services by contractors, and 8392, Automobile or Automobile Truck Storage Garages or Parking Stations or Lots, describe some of the employees activities. However, the restaurant bakery only produces goods served in the restaurant; the janitors only clean the restaurant; the parking valets only park the vehicles of restaurant customers; and the storage facility only stores materials used in the restaurant. All of these operations normally prevail in the operation of a restaurant and, therefore, Classification 9079(1), Restaurants or Taverns, applies to all of the employees. Amend Section IV, Special Industry Classification Procedures, Rule 6, Stores, Subrule f, for consistency. Section IV Special Industry Classification Procedures 6. Stores A-2

9 f. Firms that operate engage in mobile food trucks vending for the retail selling of packaged and cold foods and beverages from food trucks, trailers, carts or temporary booths including the incidental storage of such merchandise, shall be classified as 8017(1), Stores retail, 8078(1), Sandwich Shops, 8078(2), Beverage Preparation Shops, or 8078(3), Ice Cream or Frozen Yogurt Shops, depending on the products sold. The operation of mobile food trucks, trailers, carts or temporary booths wherein hot food is prepared for sale to customers shall be classified as 9079(1), Restaurants or Taverns. g. If a store maintains a department for the service or repair of automobiles or automobile trucks on a fee basis, the payroll of employees engaged in such service and repair operations shall be assigned to the applicable automobile or automobile truck service or repair classification. h. If a store engages in the sale of gasoline or automobile services, the appropriate store classification shall apply at each location wherein the sale of merchandise in the store, other than gasoline or automobile services, exceeds twenty-five percent (25%) of the total annual receipts for the location. Employees engaged in the fueling, service or repair of automobiles or automobile trucks shall be assigned to the applicable gasoline station classification. Cashiers that work within the store and accept payments for store merchandise and automobile services shall be assigned to the applicable store classification. Examples Also at this second location, the employer opens a service bay to perform automobile oil changes and smog checks in addition to gasoline and store sales. The operations at this location are now assignable to Classification 8387(1), Automobile or Automobile Truck Gasoline Service Stations, due to the automobile service operations provided. Amend Section V, Payroll Remuneration, Rule 1, Payroll Remuneration, Subrule j, Executive Officers, Subrule k, Partners, Subrule l, Individual Employers, and Subrule m, Members of a Limited Liability Company, to adjust the minimum and maximum payroll limitations for executive officers, partners, individual employers, and members of a limited liability company to reflect wage inflation since the minimum and maximum payroll limitations were last amended in Section V Payroll Remuneration 1. Payroll Remuneration 1 A-3

10 j. Executive Officers The entire remuneration earned by each executive officer during the policy period shall be used as the payroll, subject to a minimum remuneration of $42,90044,200 per annum and a maximum remuneration of $109,200111,800 per annum for each executive officer covered under the policy. This provision also applies to executive officers of a corporation while the corporation is covered as a member of a partnership or joint venture operation and to executive officers of a limited liability company. k. Partners If the policy covers one or more partners as employee(s) during the policy period, the entire remuneration earned by such partner(s) during such coverage (including the annual amount of wages, salary, emoluments or profits of each such partner) shall be included in the payroll, subject to a minimum remuneration of $42,90044,200 per annum and a maximum remuneration of $109,200111,800 per annum for each partner so included. This provision also applies to partners of a partnership while such partnership is covered as a member of another partnership or joint venture. l. Individual Employers If an individual employer is covered under the policy, the entire remuneration earned by such person during the policy period (including the annual amount of wages, salary, emoluments or profits of such person) shall be included in payroll, subject to a minimum remuneration of $42,90044,200 per annum and a maximum remuneration of $109,200111,800 per annum for such person. m. Members of a Limited Liability Company If the policy covers one or more members as employee(s) during the policy period, the entire remuneration earned by such member(s) during such coverage (including the annual amount of wages, salary, emoluments or profits of each such member) shall be included in the payroll, subject to a minimum remuneration of $42,90044,200 per annum and a maximum remuneration of $109,200111,800 per annum for each member so included. This provision also applies to managers of a limited liability company when the limited liability company is manager-managed. Examples for Subrules j, k, l and m A person joined a partnership as a partner effective week 27 of a 52-week policy period. The person did not work as an employee prior to becoming partner. The partner drew only $400 per week as partner, and no other earnings were distributed to the partner. ($400 x 26, or $10,400, was drawn during the policy period.) The prorated weekly minimum payroll for partners based upon Subrule k, above, is more than $10,400 ($42,90044, x 26 = $21,45022,100). The reportable payroll for this partner must therefore be increased by $11,05011,700 to equal the prorated minimum remuneration for this person s 26 weeks as partner ($10,400 + $11,05011,700 = $21,45022,100). A-4

11 An employee is promoted to an executive officer position effective week 40 during a 52-week policy period. The individual was paid an annual salary of $150,000 for the policy period. Payroll for weeks 1 through 39 is $112,500. The earnings for the 13-week period as executive officer are reduced to the prorated executive officer maximum remuneration based upon Subrule j above ($109,200111, x 13 = $27,30027,950). The total reportable payroll for this individual is $112,500 + $27,30027,950 = $139,800140,450. Amend Section VI, Administration of Classification System, Rule 2, Notification of Standard Classification Assignment, to remove the requirement that hard copies of an inspection report must be provided to employers and insurers and to add language that requires the WCIRB to provide inspection reports within the current time period. Section VI Administration of Classification System 4. Notification of Standard Classification Assignment If the WCIRB has made a classification assignment as the result of a WCIRB inspection, notice of the classification(s) assigned to the employer shall be published either electronically or on hard copy. Such notice shall be published by releasing one copy of by providing the inspection report to either the insurer of record at the time the inspection was conducted, or the insurer of record at the time the report is released. The WCIRB shall mail a hardprovide a copy of the inspection report to the employer within 30 days from the date the inspection report is published. The insurer of record shall be entitled to two hard copies a copy of the inspection report without charge. Additional copies of the inspection report may be made available to authorized parties at a fee and in a manner to be determined by the WCIRB. An insurer is not relieved of the obligation to report an applicable WCIRB classification assignment because of lack of knowledge that notice has been published by the WCIRB. A-5

12 Amend Section VI, Rule 4, Audit of Payroll, to increase the physical audit threshold from $10,000 to $13,000. Section VI Administration of Classification System 4. Audit of Payroll The audit and assignment of payroll shall be governed by the rules and classifications contained herein and the approved pure premium rates, subject to the following specific requirements: a. The insurer shall audit the employer s records for the purpose of determining the payroll in accordance with the following (See Part 1, Section II, General Definitions, for the definition of Physical Audit and Voluntary Audit and Part 4, Section II, Definitions, for the definition of Final Premium(s) ): (1) Each policy producing a final premium of $10,00013,000 or more shall be subject to a physical audit at least once a year. On policies subject to monthly, quarterly, or semiannual interim audits, voluntary audits may be accepted in lieu of interim physical audits. The last audit of the policy shall be a physical audit of the complete policy period. (2) Each policy producing a final premium of less than $10,00013,000 shall be physically audited at sufficient intervals to ensure determination of proper payrolls. For each policy that is not physically audited, a voluntary audit shall be performed. (3) Each policy producing a final premium of less than $10,00013,000 and developing exposure in a dual wage construction or erection classification that requires the regular hourly wage to equal or exceed a specified amount shall be physically audited, unless the policy is a renewal and the insurer physically audited one of the two immediately preceding policy periods. Amend Section VII, Standard Classifications, Rule 1, Classification Section, Subrule a, Industry Groups, to reflect the establishment of Automotive Industry as an Industry Group and for consistency. Section VII Standard Classifications 1. Classification Section This section contains an alphabetical listing of classifications that describe most occupations, employments, industries and businesses. The classifications are organized as follows: A-6

13 a. Industry Groups Some classifications are grouped alphabetically under industry groupings to assist users in identifying and assigning classifications within similar industries. Construction-related classifications are listed in Appendix II, Construction and Erection Classifications. The following other industry groups are incorporated into the classifications listed below: (1) Aircraft Operations (2) Automotive Industry (2)(3) Electronics Industry (3)(4) Farms Amend Section VII, Rule 2, Standard Classifications, as indicated below: Amend Classification 3805(1), Aircraft Engine Mfg. or Rebuilding, to clarify its intended application and provide direction as to how related operations shall be classified. AIRCRAFT ENGINE MFG. OR REBUILDING 3805(1) Employers that remove or install engines or otherwise work directly on the aircraft shall be classified as 7428(3), Aircraft Remanufacture, Conversion, Modification and Repair Companies. The manufacture or repair of machined aircraft components and accessories (not aircraft engines) by employers approved by the Federal Aviation Administration shall be classified as 3831, Machine Shops aircraft components, in accordance with the provisions of the Multiple Enterprises rule. A-7

14 Amend Classification 7332, Ambulance Services, to clarify its intended application and provide direction as to how related operations shall be classified. AMBULANCE SERVICES all operations including medical technicians and attendants and maintenance of vehicles and equipment 7332 This classification applies to the operation of ambulances for the emergency transport of ill or injured people. It also applies to non-emergency transport of persons who require medical supervision while in transit, such as the transport of individuals from hospitals to nursing homes. Paratransit services for elderly or disabled individuals who do not require medical supervision while in transit shall be classified as 7382, Bus or Limousine Operations. Amend Classification 4511, Analytical or Testing Laboratories, to clarify its intended application, remove the general restriction on division of payroll and provide direction as to how related operations shall be classified. ANALYTICAL OR TESTING LABORATORIES including outside operations and sample collection N.O.C This classification shall not be used for division of payroll in connection with any other classification (other than the Standard Exceptions or General Exclusions) unless the operations described by Classification 4511 constitute a separate and distinct enterprise having no connection with the operations covered by any other applicable classification.this classification applies to the provision of testing and research services for other concerns on a fee basis, including but not limited to the testing of air, water, soil, metal, concrete and other building materials and agricultural products. This classification also applies to fee-based quality control examination and testing of products such as electronic components; assaying; and the determination of the chemical composition of customer-submitted samples. This classification also applies to motor vehicle emissions testing (smog tests) at locations where the employer performs no automotive service or repair operations. Classification 4511 applies to in-house research and development when such operations are not performed in connection with, or in support of, any other operation of the employer. Research and development that is performed in connection with other operations of the employer are a General Inclusion. See Section III, General Classification Procedures, Rule 5, General Inclusions. The testing of construction building materials by a consulting engineering firm shall be classified as 8601(1), Engineers. The research of biomedical products shall be classified as 4512, Biomedical Research Laboratories. The diagnostic testing of human tissues, blood or other biologic specimens on a fee basis shall be classified as 8834, Physicians. A-8

15 Amend Classification 7198(2), Armored Car Services, to clarify its intended application and provide direction as to how related operations shall be classified. ARMORED CAR TRANSPORT SERVICES including terminal employees and mechanics 7198(2) This classification applies to the secure transport of cash or other negotiable securities, jewelry, precious metals or other valuables to customer designated locations using armored vehicles. This classification includes but is not limited to drivers, money sorters and counters, vault clerks and security guards in connection with transportation services. Security guards that are not in connection with armored transport services shall be classified as 7721(2), Security or Guard Services. Amend Classification 4740(2), Asphalt or Tar Distilling or Refining, to clarify its intended application. ASPHALT OR TAR DISTILLING OR REFINING including manufacture of products obtained from such distilling or refining and the saturation of paper or felt with tar or asphalt 4740(2) This classification applies to the refining of raw asphalt and tar through a series of chemical reactions, including distillation, oxygenation, carbonization and catalytic cracking, to produce liquid asphalt base. The refined asphalt or tar may be combined with additives per customer order. This classification is not applicable to chemical works or manufacturers of dyes or products used as explosives. Felt or paper manufacturing or coke burning shall be separately classified. A-9

16 Amend Classification 9181, Athletic Teams or Parks all players on the salary list of employer, whether regularly played or not, to increase the payroll limitation for players from $109,200 to $111,800 per player per season to reflect wage inflation since the payroll limitation was last amended in ATHLETIC TEAMS OR PARKS all players on salary list of employer, whether regularly played or not including umpires 9181 The entire remuneration of each player shall be included, subject to a maximum of $109,200111,800 per season. When a player works for two or more teams in the same sport during the season, the maximum of $109,200111,800 per person shall be prorated. Season shall include preseason and postseason exposure. Also refer to companion Classification 9182, Athletic Teams or Parks all employees other than players or umpires. If an employee who performs duties described by Classification 9181 also performs duties described by Classification 9182, the payroll of that employee may be divided between Classifications 9181 and 9182, provided the employer maintains accurate records supported by time cards or time book entries that show such division. Refer to Part 3, Section V, Rule 3. Establish an Industry Group for the automotive industry to include the classifications and proposed recommendations listed below: Amend Classification 2797(2), Automobile Body Mfg., to clarify its intended application and provide direction as to how related operations shall be classified. Amend Classification 3808, Automobile or Motorcycle Mfg. or Assembling, to clarify its intended application and provide direction as to how related operations shall be classified. Amend Classification 8393, Automobile or Automobile Truck Body and Fender Repairing and Painting, to clarify its intended application and provide direction as to how related operations shall be classified. Amend Classification 8391, Automobile or Automobile Truck Dealers, to clarify its intended application. Amend Classification 8748, Automobile or Automobile Truck Dealers, to clarify its intended application. Amend Classification 3821, Automobile or Automobile Truck Dismantling, to clarify its intended application. Amend Classification 3805(2), Automobile or Automobile Truck Engine Mfg., to clarify its intended application and provide direction as to how related operations shall be classified. A-10

17 Amend Classification 8387, Automobile or Automobile Truck Service Stations, to (1) add a suffix to reflect the establishment of alternate wordings, (2) remove the restriction on division of payroll with Classification 8388, Rubber Tire Dealers, (3) clarify its intended application, and (4) specify how Classification 8387 is distinguished from other automotive industry classifications. Establish Classification 8387(2), Automobile or Truck Oil and Fluid Replacement Service Facilities, as an alternate wording to Classifications 8387(1), Automobile or Truck Service Stations, and 8387(3), Automobile or Truck Washing Facilities, to apply to automobile or truck service facilities at which the operations solely include preventative maintenance and service operations. Amend Classification 3828, Automobile or Automobile Truck Parts Rebuilding, to clarify its intended application. Amend Classification 9516(2), Automobile Radio and Telephone Installation, Service or Repair, to clarify its intended application and provide direction as to how related operations shall be classified. Amend Classification 8389, Automobile or Automobile Truck Repair Shops or Garages, to remove the restriction on division of payroll with Classification 8388, Rubber Tire Dealers, clarify its intended application, and provide direction as to how related operations shall be classified. Amend Classification 8392, Automobile or Automobile Truck Storage Garages or Parking Stations or Lots, for clarity and consistency. Amend Classification 7227, Automobile or Automobile Truck Towing, Roadside Assistance or Freeway Repair, for clarity. Amend Classification 8397, Automobile or Automobile Truck Transmission Repairing and Rebuilding, to clarify its intended application and provide direction as to how related operations shall be classified. Establish Classification 8387(3), Automobile or Truck Washing Facilities, as an alternate wording to Classifications 8387(1), Automobile or Truck Service Stations, and 8387(2), Automobile or Truck Oil and Fluid Replacement Service Facilities, to apply to facilities at which the operations include automobile or truck washing, waxing and polishing, and to employers that wash, wax and polish automobiles or trucks at customers locations. Amend Classification 9522(3), Automobile Body Upholstering, to clarify its intended application and provide direction as to how related operations shall be classified. Amend Classification 3840, Automobile, Automobile Truck or Motorcycle Parts Mfg., to clarify its intended application and provide direction as to how related operations shall be classified. Amend Classification 8390, Automobile Van Conversion or Customizing, to clarify its intended application and provide direction as to how related operations shall be classified. Amend Classification 8324, Automobile Gasoline Stations, to clarify its intended application. Amend Classification 9501(3), Painting automobile or automobile truck bodies, to clarify its intended application and provide direction as to how related operations shall be classified. A-11

18 Amend Classification 2797(3), Recreational Vehicle Mfg., to clarify its intended application and provide direction as to how related operations shall be classified. Establish a cross-reference to Classification 8046, Stores automobile or truck parts or accessories, which is part of the Stores Industry Group. Amend Classification 8388, Rubber Tire Dealers, to clarify its intended application and provide direction as to how related operations shall be classified. Amend Classification 3815(2), Automobile Body Mfg. truck, trailer or bus bodies, to clarify its intended application and provide direction as to how related operations shall be classified. Amend Classification 3815(1), Automobile Truck or Automobile Truck Trailer Mfg. or Assembling, to clarify its intended application and provide direction as to how related operations shall be classified. AUTOMOTIVE INDUSTRY AUTOMOBILE BODY MFG. pleasure car or taxicab bodies 2797(2) Classification 2797(2) shall not be used for division of payroll in connection with Classification 3808, Automobile or Motorcycle Mfg. or Assembling, unless the operation described by Classification 2797(2) constitutes a separate and distinct enterprise having no connection with the operations covered by Classification This classification applies to employers engaged in the manufacture of complete automobile bodies. Employers engaged in the manufacture of individual metal automobile body components shall be classified as 3840, Automobile, Truck or Motorcycle Parts Mfg. Employers engaged in the manufacture of individual plastic automobile body components shall be assigned to the applicable Plastic Products Manufacturing Industry Group classification. The body repair and painting of automobile or truck bodies for other concerns on a fee basis shall be classified as 8393, Automobile or Truck Body Repairing and Painting. Employers engaged in the manufacture of truck, truck trailer or bus bodies shall be classified as 3815(2), Truck Body Mfg. AUTOMOBILE OR MOTORCYCLE MFG. OR ASSEMBLING 3808 This classification applies to employers engaged in the manufacture or assembly of complete motor vehicles, including but not limited to automobiles, motorcycles, golf carts, all-terrain vehicles, snowmobiles and scooters. Employers engaged in the manufacture of automobile bodies (not complete automobiles or motorcycles) shall be classified as 2797(2), Automobile Body Mfg. Classification 3808 does not apply to the operation of automobile service or repair facilities. Such facilities shall be assigned to the applicable Automotive Industry Group classification. Motorcycle dealers and motorcycle service or repair facilities shall be classified as 8400, Motorcycle Dealers. A-12

19 AUTOMOBILE OR AUTOMOBILE TRUCK BODY AND FENDER REPAIRING AND PAINTING all employees including estimators, service writers and customer service representatives 8393 This classification applies to body repair and painting of automobiles, trucks or buses, including outside body dent repair involving no painting, for other concerns on a fee basis. This classification includes mechanical repair operations that are performed in connection with the automobile, truck or bus body repair and painting operations. Automobile, truck or bus service facilities at which the operations solely include painting automobile, truck or bus bodies and no body repairing is performed shall be classified as 9501(3), Painting automobile or truck bodies. Towing, roadside assistance, and freeway service patrol operations when conducted on vehicles not owned by the employer shall be separately classified as 7227, Automobile or Automobile Truck Towing, Roadside Assistance or Freeway Service Patrol. Roadside assistance refers to services provided to the vehicle owner under an agreement with a third party (such as a motor club or law enforcement agency). Contemplated services include changing tires, jump-starting batteries, replacing batteries, supplying a small amount of gasoline or performing minor vehicle repairs such as reattaching ignition wires or battery cables. AUTOMOBILE OR AUTOMOBILE TRUCK DEALERS all employees other than vehicle salespersons including estimators, service writers, vehicle maintenance and repair, shuttle drivers, accessory or spare parts sales and the transporting of vehicles that are owned by the employer 8391 This classification applies to dealers of motor vehicles, including but not limited to automobiles, trucks, buses, forklift trucks, golf carts, motor homes and trailers. This classification shall apply applies only to those employers having, in addition to proprietors, a regular sales force engaged exclusively in the demonstration and sale of vehicles and separate clerical staff. If these conditions do not exist, Classification 8391 does not apply. If Classification 8391 does not apply and the employer performs vehicle repair work, assign the applicable vehicle repair classification(s) and, if the employer performs no vehicle repairing, assign Classification 8392, Automobile or Automobile Truck Storage Garages or Parking Stations or Lots, to employees who perform activities such as cleaning and washing vehicles, changing tires and recharging batteries. Also refer to companion Classification 8748, Automobile or Automobile Truck Dealers vehicle salespersons. This classification also applies to yard and repair employees of employers that operate auctions for the sale of automobiles and automobile trucks. Auction salespersons who conduct no yard or repair-type operations shall be classified as 8748, Automobile or Automobile Truck Dealers vehicle salespersons. This classification also applies to yard, repair and maintenance employees of employers engaged in automobile or truck rental, automobile or truck driving schools, or the transport of individual automobiles or trucks between locations ( Driveaway companies). Towing, roadside assistance, and freeway service patrol operations when conducted on vehicles not owned by the employer shall be separately classified as 7227, Automobile or Automobile Truck Towing, Roadside Assistance or Freeway Service Patrol. Roadside assistance refers to services provided to the vehicle owner under an agreement with a third party (such as a motor club or law enforcement agency). Contemplated services include changing tires, jump-starting batteries, replacing batteries, supplying a small amount of gasoline or performing minor vehicle repairs such as reattaching ignition wires or battery cables. AUTOMOBILE OR AUTOMOBILE TRUCK DEALERS vehicle salespersons 8748 This classification applies to salespersons of dealers of motor vehicles, including but not limited to A-13

20 automobiles, trucks, buses, forklift trucks, golf carts, recreational vehicles and motor homes and trailers. Also refer to companion Classification 8391, Automobile or Automobile Truck Dealers all employees other than vehicle salespersons. This classification also applies to vehicle salespersons of employers that operate auctions for the sale of automobiles and automobile trucks. AUTOMOBILE OR AUTOMOBILE TRUCK DISMANTLING including transport of vehicles owned by the employer, the salvaging or junking of parts and store operations 3821 This classification applies to employers engaged in the dismantling, salvaging and sale of salvaged automobile or truck parts, and includes but is not limited to dismantlers, mechanics, tow truck drivers transporting vehicles owned by the employer, parts delivery drivers and counterpersons. This classification includes the sale of dismantled and salvaged parts from locations separate from the dismantling operations. Towing, roadside assistance, and freeway service patrol operations when conducted on vehicles not owned by the employer shall be separately classified as 7227, Automobile or Automobile Truck Towing, Roadside Assistance or Freeway Service Patrol. Roadside assistance refers to services provided to the vehicle owner under an agreement with a third party (such as a motor club or law enforcement agency). Contemplated services include changing tires, jump-starting batteries, replacing batteries, supplying a small amount of gasoline or performing minor vehicle repairs such as reattaching ignition wires or battery cables. AUTOMOBILE OR AUTOMOBILE TRUCK ENGINE MFG. 3805(2) This classification applies to employers engaged in the manufacture of new automobile or truck engines. Employers engaged in the rebuilding of used automobile or truck engines shall be classified as 3828, Automobile or Truck Parts Rebuilding, provided the employer does not remove or install engines or otherwise perform repair work directly upon automobiles or trucks on a fee basis. Automobile service or repair facilities at which the employer removes or installs engines or otherwise performs service or repair work directly upon automobiles or trucks on a fee basis shall be assigned to the applicable Automotive Industry Group classification. Employers engaged in the manufacture or assembly of complete motor vehicles, including but not limited to automobiles, motorcycles, golf carts, all-terrain vehicles, snowmobiles and scooters shall be classified as 3808, Automobile or Motorcycle Mfg. or Assembling. Employers engaged in the manufacture of new automobile, truck or motorcycle parts, including but not limited to wheels, mufflers, radiators, brakes, pistons, gears, bearings, push rods, manifolds, clutches and axles shall be classified as 3840, Automobile, Truck or Motorcycle Parts Mfg. AUTOMOBILE OR AUTOMOBILE TRUCK GASOLINE SERVICE STATIONS all employees including accessories and spare parts departments and estimators, service writers, customer service representatives and cashiers N.O.C. 8387(1) Classification 8387(1) shall not be used for division of payroll in connection with Classifications 8392, Automobile or Automobile Truck Storage Garages or Parking Stations or Lots, or 8388, Rubber Tire Dealers, unless the operation described by Classification 8387(1) constitutes a separate and distinct enterprise having no connection with the operations covered by Classifications 8392 or This classification does not apply applies to those facilities that, in addition to engaging in the service or repair of automobiles or trucks for other concerns on a fee basis, engage in the sale of gasoline. Automobile or truck service station locations at which the sale of rubber tires exceeds A-14

21 10% of the total gross receipts. Such locations shall be classified as 8388, Rubber Tire Dealers. Towing, roadside assistance, and freeway service patrol operations when conducted on vehicles not owned by the employer shall be separately classified as 7227, Automobile or Automobile Truck Towing, Roadside Assistance or Freeway Service Patrol. Roadside assistance refers to services provided to the vehicle owner under an agreement with a third party (such as a motor club or law enforcement agency). Contemplated services include changing tires, jump-starting batteries, replacing batteries, supplying a small amount of gasoline or performing minor vehicle repairs such as reattaching ignition wires or battery cables. Refer to the Special Industry Classification Procedures for sstores to classify the operations of combination gasoline stations and stores. Refer to the Automotive Industry Group for a complete list of classifications applicable to automobile service or repair facilities. AUTOMOBILE OR TRUCK OIL AND FLUID REPLACEMENT SERVICE FACILITIES no gasoline sales or repair all employees including accessories and spare parts departments and estimators, service writers, customer service representatives and cashiers N.O.C. 8387(2) Classification 8387(2) shall not be used for division of payroll in connection with Classifications 8392, Automobile or Truck Storage Garages or Parking Stations or Lots, unless the operation described by Classification 8387(2) constitutes a separate and distinct enterprise having no connection with the operations covered by Classification This classification applies to the provision of oil and fluid replacement services for customers automobiles or trucks on a fee basis. Operations include but are not limited to filter replacement, wiper blade replacement and chassis lubrication. This classification does not apply to automobile or truck service or repair facilities at which the operations include the sale of gasoline or the mechanical repair of automobiles or trucks. Refer to the Automotive Industry Group for a complete list of classifications applicable to automobile or truck service or repair facilities. Towing, roadside assistance and freeway service patrol operations when conducted on vehicles not owned by the employer shall be separately classified as 7227, Automobile or Truck Towing, Roadside Assistance or Freeway Service Patrol. Roadside assistance refers to services provided to the vehicle owner under an agreement with a third party (such as a motor club or law enforcement agency). Contemplated services include changing tires, jump-starting batteries, replacing batteries, supplying a small amount of gasoline or performing minor vehicle repairs such as reattaching ignition wires or battery cables. AUTOMOBILE OR AUTOMOBILE TRUCK PARTS REBUILDING including incidental machining 3828 This classification shall not be used for division of payroll in connection with any other classification (other than the Standard Exceptions, or General Exclusions or Classification 8046, Stores automobile or truck parts or accessories) unless the operations described by Classification 3828 constitute a separate and distinct enterprise having no connection with the operations covered by any other applicable classification. This classification is intended to apply applies to operations such as employers engaged in the machining and rebuilding of automobile, or automobile truck or motorcycle parts. The operations include but are not limited to engine rebuilding, cylinder reboring, valve grinding, turning down brake drums or rotors, rebabbitting, carburetor and generator alternator rebuilding, and fuel and water pump rebuilding. It This classification does not apply to any employers who that removes or install parts from automobiles or automobile trucks for the purpose of machining or rebuilding, installs parts in automobiles or automobile trucks or otherwise perform repair works directly upon automobiles, or automobile trucks or motorcycles on a fee basis. Automobile or truck service or repair facilities shall be assigned to the applicable Automotive Industry Group classification. A-15

22 Motorocycle service or repair facilities shall be classified as 8400, Motorcycle Dealers. Payroll of a parts department, when more than 50% of the parts are sold commercially and are not machined or rebuilt by the employer nor used in the employer s machining or rebuilding operations, shall be classified as 8046, Stores automobile or truck parts or accessories. The manufacture of automobile parts shall be classified as 3840, Automobile, Automobile Truck or Motorcycle Parts Mfg. AUTOMOBILE OR TRUCK RADIO, ALARM AND TELEPHONE ELECTRONIC EQUIPMENT INSTALLATION, SERVICE OR REPAIR shop and outside 9516(2) This classification applies to the installation, service and repair of electronic equipment, including but not limited to audio systems, alarms, navigation systems and entertainment systems in automobiles or trucks. Employers engaged in the conversion or customizing of automobiles, trucks or vans by performing a combination of mechanical, chassis, body, paint, upholstery and accessory installation work shall be classified as 8390, Automobile, Truck or Van Conversion or Customizing. Store operations shall be separately classified. AUTOMOBILE OR AUTOMOBILE TRUCK REPAIR SHOPS OR GARAGES FACILITIES no retail gasoline sales all employees including estimators, service writers and customer service representatives N.O.C Classification 8389 shall not be used for division of payroll in connection with Classification 8388, Rubber Tire Dealers, unless the operation described by Classification 8389 constitutes a separate and distinct enterprise having no connection with the operations covered by Classification This classification does not apply applies to those automobile repair shop or garage locations at which the mechanical repair of motor vehicles, including but not limited to automobiles, trucks, buses, forklift trucks, golf carts, recreational vehicles and motor homes for other concerns on a fee basis. Operations include but are not limited to the repair of electrical systems, airconditioning systems, engines, brakes, suspension systems, exhaust systems, engine tune-ups, smog checks and windshield or window repair or replacement. This classification does not apply if the operations include the sale of gasoline, the sale of rubber tires exceeds 10% of the total gross receipts, the operations primarily (over 50%) consist of transmission repair or rebuilding, or the operations do not include mechanical repair as described above. Such locations shall be classified as 8388, Rubber Tire Dealers. Refer to the Automotive Industry Group for a complete list of classifications applicable to automobile or truck service or repair facilities. Towing, roadside assistance, and freeway service patrol operations when conducted on vehicles not owned by the employer shall be separately classified as 7227, Automobile or Automobile Truck Towing, Roadside Assistance or Freeway Service Patrol. Roadside assistance refers to services provided to the vehicle owner under an agreement with a third party (such as a motor club or law enforcement agency). Contemplated services include changing tires, jump-starting batteries, replacing batteries, supplying a small amount of gasoline or performing minor vehicle repairs such as reattaching ignition wires or battery cables. AUTOMOBILE OR AUTOMOBILE TRUCK STORAGE GARAGES OR PARKING STATIONS OR LOTS no repair including cashiers 8392 Classification 8392 shall not be used for division of payroll in connection with Classifications 8387(1), Automobile or Automobile Truck Gasoline Service Stations, 8387(2), Automobile or Truck Oil and Fluid Replacement Service Facilities, 8387(3), Automobile or Truck Washing Facilities, or 8389, Automobile or Automobile Truck Repair Shops or GaragesFacilities, unless the operation described by Classification 8392 constitutes a separate and A-16

23 distinct enterprise having no connection with the operations covered by Classifications 8387(1), 8387(2), 8387(3) or This classification is intended applies to cover automobile or automobile truck storage garages, or parking stations or lots where the operations are restricted to the storing or parking of automobiles or automobile trucks with incidental sale of gasoline or oil or servicing, such as including washing, polishing or greasingoil changing, but does not apply to an employer engaged in facilities at which the operations include repairing automobiles or automobile trucks. Such employers facilities shall be assigned to the appropriate automobile repairing or servicing applicable Automotive Industry Group classification. Parking attendants on the payroll of enterprises such as, including but not limited to, hotels, restaurants, stores, apartment complexes, commercial or industrial buildings, or theaters that operate parking facilities for their own customers or tenants shall be classified with the enterprise. This classification does not apply to the storage of impounded vehicles that the employer tows to its premises. Towing, roadside assistance, and freeway service patrol operations when conducted on vehicles not owned by the employer shall be separately classified as 7227, Automobile or Automobile Truck Towing, Roadside Assistance or Freeway Service Patrol. Classification 7227 includes the storage of impounded vehicles that the employer tows to its premises. Roadside assistance refers to services provided to the vehicle owner under an agreement with a third party (such as a motor club or law enforcement agency). Contemplated services include changing tires, jump-starting batteries, replacing batteries, supplying a small amount of gasoline or performing minor vehicle repairs such as reattaching ignition wires or battery cables. AUTOMOBILE OR AUTOMOBILE TRUCK TOWING, ROADSIDE ASSISTANCE OR FREEWAY SERVICE PATROL for vehicles not owned by employer 7227 This classification applies to vehicle towing, roadside assistance and freeway service patrol operations that are conducted away from premises occupied and operated by the employer. This classification also includes all operations including cashiering, vehicle retrieval, and maintenance of the employer s own vehicles conducted in connection with the storage of impounded vehicles that the employer tows to its premises. Roadside assistance refers to services provided to the vehicle owner under an agreement with a third party (such as a motor club or law enforcement agency). Contemplated services include changing tires, jump-starting batteries, replacing batteries, supplying a small amount of gasoline or performing minor vehicle repairs such as reattaching ignition wires or battery cables. This classification does not apply to automobile or automobile truck shipping operations. AUTOMOBILE OR AUTOMOBILE TRUCK TRANSMISSION REPAIRING AND REBUILDING including removal and installation operations all employees including estimators, service writers and customer service representatives 8397 Classification 8397 shall not be used for division of payroll in connection with Classifications 8389, Automobile or Automobile Truck Repair Shops or GaragesFacilities, 8387(1), Automobile or Automobile Truck Gasoline Service Stations, or 3828, Automobile or Automobile Truck Parts Machining and Rebuilding, unless the operation described by Classification 8397 constitutes a separate and distinct enterprise having no connection with the operations covered by Classifications 8389, 8387(1) or This classification applies to facilities engaged primarily (over 50%) in the repair of automobile or truck transmissions for customers on a fee basis. Refer to the Automotive Industry Group for a complete list of classifications applicable to automobile or truck service or repair facilities. A-17