Classification Standard Exceptions
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1 W o r k e r s C o m p e n s a t i o n I n s u r a n c e R a t i n g B u r e a u o f C a l i f o r n i a Classification Standard Exceptions 8810, Clerical Office Employees and 8742, Salespersons - Outside Brian Gray Quality Assurance Director Classification and Test Audit IIABCal Webinar July 15, 2015 Notice The information provided in this webinar was developed by the Workers Compensation Insurance Rating Bureau of California (WCIRB) solely for the purpose of discussion during this webinar. The WCIRB shall not be liable for any damages, of any kind, whether direct, indirect, incidental, punitive or consequential, arising from the use, inability to use, or reliance upon information provided in this webinar. The Independent Insurance Agents and Brokers of California (IIABCal) is acting only as a host for this webinar and the WCIRB is not in any way affiliated with IIABCal 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 by federal copyright law. No copyright is claimed in the text of statutes and regulations quoted within this work. Workers Compensation Insurance Rating Bureau of California, WCIRB, WCIRB California, WCIRB Online, X-Mod Direct, escad and the WCIRB California logo (WCIRB Marks) are registered trademarks or service marks of the WCIRB. WCIRB Marks may not be displayed or used in any manner without the WCIRB s prior written permission. Any permitted copying of this work must maintain any and all trademarks and/or service marks on all copies. To seek permission to use any of the WCIRB Marks or any copyrighted material, please contact the Workers Compensation Insurance Rating Bureau of California, at customerservice@wcirb.com. 1
2 Purpose To provide a basic introduction to Standard Exception classification assignments Agenda Introduction to the Standard Exceptions Clerical office employees Payroll division restriction Separation requirements Outside salespersons Special cases Exercises Standard Exceptions Classifications and Terminology Two classifications that are an exception to the Single Enterprise Rule 8810(1), Clerical Office Employees 8742(1), Salespersons - outside Standard Exception assignments are NOT restricted by phrases such as all employees all operations etc. Standard Exception assignments ARE restricted when classifications have phrases such as including Clerical Office Employees, or including Outside Salespersons 2
3 Standard Exceptions WCIRB Classification Inspection Report Departments Employees Estimated Classifications Payroll Wooden Table Mfg. (including woodworking, assembly, QC inspection, packing, and shipping 20 $200, (00) FURNITURE MFG. WOOD Outside Sales 3 $60, (01) SALESPERSONS OUTSIDE Office Staff 2 $25, (01) CLERICAL OFFICE EMPLOYEES Standard Exceptions Standard Exceptions Explaining the Concept Clerical office employees and outside salespersons are found in support of most industries As Standard Exceptions, they have no industry-specific exposure They provide general support functions 3
4 Standard Exceptions 8810(1), Clerical Office Employees Clerical Office Employees keep: The books The records The cash of the employer Clerical Office Employees are engaged wholly in general office work or office drafting Clerical employees have no regular duty of any other nature in the service of the employer Standard Exceptions Payroll Division Restriction If a clerical office employee is also exposed to Any operative hazard of the business Any outside selling or collecting work Then the employee s entire payroll is assigned to the highest rated classification of work to which the employee is exposed The payroll for clerical employees may not be divided with any other classification 4
5 Standard Exceptions Separation Requirements Clerical Office Employees must be separated from other business operations by Buildings Floors Partitions Railings Counters Work area must be limited to clerical office or drafting duties Standard Exceptions 8742(1), Salespersons - Outside Outside Salespersons are engaged in Sales Collection Public relations work Away from the premises of the employer Engaged in outside sales for some portion of their time and clerical office duties for the rest of their time 5
6 Standard Exceptions Businesses Comprised Only of Standard Exception Employees If an employer s basic business operations are described by Classification 8810, Clerical Office Employees and/or Classification 8742, Salespersons outside Separately classify employees that perform duties not contemplated by Standard Exceptions Classification 9015(1), Building Operation, often applies to office facility maintenance employees when the business is otherwise comprised of standard exception employees Standard Exceptions Classifications that Include Clerical Office Employees and/or Outside Salespersons A limited number of classifications specifically include clerical office employees and/or outside salespersons Moving the clerical or sales employees to another location does not change the requirement that they are included in such classification In order for these industry classifications to have the correct aggregate data mix, the clerical office employees and/or outside salespersons must be included Example: 8019(2), Document Duplication or Photocopying Service all employees including Clerical Office Employees and Outside Salespersons 6
7 Standard Exceptions Exercises Standard Exceptions Exercises Exercise Review the job descriptions that follow and determine whether each worker can be assigned to a standard exception classification 8810 Clerical Office Employees 8742 Salespersons outside 7
8 Standard Exceptions Exercise General Manager Exercise A general manager works in an office at a machine shop location. This employee performs a variety of administrative duties within the office such as scheduling production, preparing financial reports, and corresponding with suppliers. Each morning, the general manager tours the machine shop facility for minutes and makes note of any safety hazards, equipment in need of repair, and overall housekeeping. The general manager notifies production supervisors of any problems by Machine Shop 8810 Clerical Office Employees 8742 Salespersons outside Standard Exceptions Exercise General Manager Answer A general manager works in an office at a machine shop location. This employee performs a variety of administrative duties within the office such as scheduling production, preparing financial reports, and corresponding with suppliers. Each morning, the general manager tours the machine shop facility for minutes and makes note of any safety hazards, equipment in need of repair, and overall housekeeping. The general manager notifies production supervisors of any problems by Machine Shop 8810 Clerical Office Employees 8742 Salespersons outside 8
9 Standard Exceptions Exercise Vice President of Sales Exercise A Vice President of Sales is retained by a furniture manufacturer to promote sales to furniture retailers and manage 3 sales representatives. This executive works in an office and also accompanies sales representatives when they make presentations to large accounts. This Vice President also represents the insured at industry trade shows Furniture Mfg wood 8810 Clerical Office Employees 8742 Salespersons outside Standard Exceptions Exercise Vice President of Sales Answer A Vice President of Sales is retained by a furniture manufacturer to promote sales to furniture retailers and manage 3 sales representatives. This executive works in an office and also accompanies sales representatives when they make presentations to large accounts. This Vice President also represents the insured at industry trade shows Furniture Mfg wood 8810 Clerical Office Employees 8742 Salespersons outside 9
10 Standard Exceptions Exercise District Managers Exercise An employer operates approximately 50 fast-food restaurants throughout California. Four employees are retained as District Managers to spend three days a week at the insured s administrative office engaged in clerical work, and two days a week visiting their assigned restaurant locations to confer with site managers, check housekeeping issues and ensure promotional materials are properly displayed. 9079(1) Restaurants 8810(1) Clerical Office Employees 8742(1) Salespersons outside Standard Exceptions Exercise District Managers Answer An employer operates approximately 50 fast-food restaurants throughout California. Four employees are retained as District Managers to spend three days a week at the insured s administrative office engaged in clerical work, and two days a week visiting their assigned restaurant locations to confer with site managers, check housekeeping issues and ensure promotional materials are properly displayed. 9079(1) Restaurants 8810(1) Clerical Office Employees 8742(1) Salespersons outside 10
11 Standard Exceptions Exercise Work-at-Home Bookkeeper A part-time employee performs bookkeeping duties for an auto repair shop. This employee spends 4 hours per week at the insured s office and works an additional 16 hours per week at her private residence performing general bookkeeping functions using a computer-based accounting system. Exercise 8389 Auto Repair 8810(1) Clerical Office Employees 8742(1) Salespersons outside Standard Exceptions Exercise Work-at-Home Bookkeeper A part-time employee performs bookkeeping duties for an auto repair shop. This employee spends 4 hours per week at the insured s office and works an additional 16 hours per week at her private residence performing general bookkeeping functions using a computer-based accounting system. Answer 8389 Auto Repair 8810(1) Clerical Office Employees 8742(1) Salespersons outside 11
12 Standard Exceptions Exercise Office Receptionist Exercise An office receptionist works at a desk in the clerical office portion of the insured s clothing manufacturing facility. The receptionist directs incoming phone calls, greets office visitors, and performs additional clerical work. The clerical offices are located on a mezzanine level above the manufacturing area. The employee break room and restrooms are located on the far side of the building requiring the receptionist to walk through the production area several times each day at break time or to use the restroom. 2501(1) Clothing Mfg. 8810(1) Clerical Office Employees 8742(1) Salespersons outside Standard Exceptions Exercise Office Receptionist Answer An office receptionist works at a desk in the clerical office portion of the insured s clothing manufacturing facility. The receptionist directs incoming phone calls, greets office visitors, and performs additional clerical work. The clerical offices are located on a mezzanine level above the manufacturing area. The employee break room and restrooms are located on the far side of the building requiring the receptionist to walk through the production area several times each day at break time or to use the restroom. 2501(1) Clothing Mfg. 8810(1) Clerical Office Employees 8742(1) Salespersons outside 12
13 Standard Exceptions Precision of Definitions Standard Exception assignments are an exception to the general practice of assigning all employees to a single industry classification Clerical and outside sales classifications are intended to apply only to those employees who are exclusively performing clerical and outside sales duties that are common to every type of business, as opposed to including activities that are industry-specific Intent is to keep Standard Exception rates as low as possible Summary Today s webinar provided a basic introduction to the Standard Exception classifications, including: Introduction to the Standard Exceptions Clerical office employees Payroll division restriction Separation requirements Outside salespersons Special cases Exercises 13
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