NCCI Standard Exceptions Have Certain Class Codes
You mentioned the Standard Exceptions question in your last post. What are they and why are they important? A blog reader emailed this question overnight.
We will use NCCI Standard Exception Codes – classifications that are common to many businesses and that are generally not allowed to be designated as the governing classification.
The governing classification is the class code that produces the most payroll in a business. The Standard Exception Codes are:
- 8810 – Clerical
- 8742 – Salespersons or Collectors – Outside
- 8871 – Clerical Telecommuter Employees
- 7380 – Drivers, Chauffeurs, Messengers, and Their Helpers NOC—Commercial
- 8748 – Automobile Salespersons
These do not cover all states, but most of the non-NCCI states have almost the same codes. The key is the codes cover much more than just the above exact code descriptions. Most of the time, the Standard Exception Class Codes are much less expensive than the other class codes.
These codes are the ones that are most often disallowed by workers comp premium auditors. We see Code 8810 (or its equivalent) being changed the most during audits. Documenting the job duties of any employees with the above codes is very important.
You may always dispute the premium audit results if the employee was a clerical worker but was moved into another classification.
2020 Update – With the Coronavirus pandemic, the Class Code 8871 – Telecommuters has quickly rushed to the forefront when analyzing the classification codes for workers that are now working out of their homes which being on lockdown. Class Code 8871 may soon become one of the more popular standard exception codes for the new few months or years.
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