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. 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. 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. 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 6 Miscellaneous Regulations Changes Uniform Statistical Reporting Plan Effective January 1, 2014 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 III, Rule 4a, Clerical Office Employees, was amended to include additional duties. 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. 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.
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 Code Phraseology 2013 Threshold 2014 Threshold 5183(1) / 5187(1) Plumbing $24.00 $26.00 5183(2) / 5187(2) 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 6315(2) / 6316(2) Gas Mains Construction $26.00 $30.00 2
Payroll Minimum and Maximum Changes Code Phraseology Payroll Minimum Payroll Maximum 7365 Taxicab Operations $30,500 N/A 7610 Radio / Television Stations N/A $109,200 9151 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 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. 3
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 0035, Florists cultivating 0042, Landscape Gardening 2501(1), Clothing Mfg. 2585, Laundries 2589, Dry Cleaning or Laundry retail 2702(1), Logging / Lumbering 3039, Reinforcing Steel Fabrication 3066(1), Sheet Metal Products Mfg. 3081(1), Foundries iron 3082, Foundries steel castings 3085, Foundries non-ferrous 3400, Metal Goods Mfg. 3647(2), Lead Mfg. / Reclaiming / Alloying 3724(2), Electrical Machinery installation 4049(1), Potteries 4299(1), Printing Operation 4304, Newspaper Publishing 5102(1), Iron / Steel non-structural 5107, Door / Pre-Glazed Window Installation 5108, Door Installation overhead 5146(1), Cabinet / Fixtures installation 5201(2), Concrete / Cement Work low wage 5205(2), Concrete or Cement Work high wage 5213, Concrete Construction 5446, Wallboard Application low wage 5447, Wallboard Application high wage 5474(1), Painting low wage 5482(1), Painting high wage 5606, Contractors exec supervisors 6233, Oil / Gas Pipeline Construction 6307, Sewer Construction low wage 6308, Sewer Construction high wage 7198(1), Parcel Delivery Companies 7219(3), Mobile Crane / Hoisting Service 7601, Aerial Line Construction 7607(2), Audio Post Production 8001, Stores florists 8028(1), Equipment / Machinery Rental 8028(2), Machinery / Equipment Rental 8032, Stores clothing / dry goods 8107, Machinery Dealers 8232(1), Lumberyards 8232(2), Building Material Dealers 8267, Machinery / Equipment Dealers 8290, Warehouses self-storage 8390, Auto Van Conversion 8391, Automobile / Truck Dealers 8601(1), Engineers consulting 8740(1), Apartment / Condo property management supervisors 8740(3), Building Operation property management supervisors 8740(4), Mobile Home Park property management supervisors 8740(6), Apartment / Condo for Seniors property management supervisors 8748, Automobile / Truck Dealers salespersons 8807, Newspaper, Magazine or Book Publishing 8813(1), Printing editing 8813(2), Bookbinding Operation editing 8818, Newspaper Publishing editing 8829(1), Nursing Homes 8829(2), Convalescent Homes / Hospitals 8829(4), Rest Homes 8829(5), Sanitariums 8851, Congregate Living Facilities 9007, Apartment / Condo Operation 9010, Mobile Home Park Operation 9011, Apartment / Condo Operation 9015(1), Building Operation N.O.C. 9016(1), Amusement Rec. Facilities 9043, Hospitals 9059, Day Care Centers 9070(1), Residential Care Facilities Elderly 9070(3), Residential Care Facilities Adults 9079(1), Restaurants / Taverns 9180(1), Amusement Rec. Facilities 9410, Municipal / State / Public Agency 9420, Municipal /State / Public Agency 9501(3), Painting automobile / truck bodies 9519(1), Household Appliances 9522(1), Upholstering 9522(2), Furniture upholstering 9522(3), Automobile Body Upholstering 9522(4), Coffin / Casket Upholstery 9522(5), Wheelchair Upholstering 4
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: Introduction to Experience Rating Loss Valuation and Reporting Eligibility and Qualification Classification Basics Standard Exceptions Ownership and Experience Rating 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. Appendix III, Payroll/Remuneration Table Appendix III entry regarding Private Residence Employees was amended for clarity and consistency. Appendix IV, Unit Statistical Report Appendix IV was eliminated as the WCIRB no longer accepts hard copy unit statistical reports. 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. 5
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 6