Workers Comp Premium Audit Question
I received a question this week from one of our blog readers that had this WC Premium Audit question. “I have an employee that walks across a corner of our manufacturing plant to go to the bathroom. On our recent premium audit, the auditor changed the Classification Code from 8810 Clerical to 1438 Smelt Manufacturing. Is this correct?”
I will usually answer the question posed directly. However, in this case, I wanted to actually give more examples that came from our readers and clients. Are these judgment calls by the Workers Comp premium auditor or are there actually rules in place? This is a very hotly debated topic in the premium audit world of Workers Compensation.
An owner of a tow truck company does not ever drive the tow trucks to pick up autos. He is never in the maintenance area for the tow trucks. He does walk across the parking lot where the tow trucks are parked to go to his car twice daily. The premium auditor changed the Class Codes to a higher code. Is it correct to have the tow truck owner classification code moved from 8810 Clerical to 8002 Truck Rental and Drivers?
Two computer programmers walk into the manufacturing area to pick up his/her printouts multiple times each day. The premium auditor moved the Class Code from 8810 to 3004 Iron/Steel Manufacturing. Was this a proper procedure?
I know that each state has its own peculiarities and specific class codes – especially California. I am more referring to how the workers are performing their jobs and looking at it on a national basis. If anyone would like to comment or send me an email at [email protected], that would be great.
I will answer these questions in the next few posts. Classification Codes were provided by NCRB and the WCIRB.
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In NCCI States Rule 1B2a3 (other Requirements) states
“Employees who otherwise meet the requirements for Code 8810 or Code 8871 will not be disqualified from assignment to this classification if they perform certain incidental nonclerical duties directly related to that employee’s duties in the office”
this rule also states: “Entering an area exposed to the operative hazards of the business for clerical purposes, such as delivering paychecks” is not a disqualifier.
In your examples as described, going to the bathroom (OK), walking from the parking lot to start work or leave work (OK), going through the shop to pickup printouts (OK). All of these would not disqualify an employee from clerical duties assigned to code 8810.
Any auditor that doesn’t understand this needs additional education about the Basic manual rules.
Thank You, Carlos Garcia
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