• Home
    • Workers Comp Audit Stress Reducer – Use It For Your Next Premium Audit
  • About Us
    • Cutting Workers Comp Costs – About Our Company
    • President – Expert James J Moore AIC MBA ChFC ARM
    • OSHA Risk Manager – Glen DuLac – Added To Fulfill Customer Service
  • Work Comp Consultants
  • Free Info
    • Definitions
    • Free Speech
  • Testimonials
  • FAQ
  • Free Manuals
  • Six Secrets
  • Blog
  • Contact Us

J&L Risk Management Consultants

Work Comp expert witness reserve reviews premium audits for employers

icons
Call us today! 1-800-813-1386
WORKERS' COMPENSATION PREMIUM REFUNDS POSSIBLE.
Home » classification code » Class Code 8810 – Magical Mystery Code

Class Code 8810 – Magical Mystery Code

July 3, 2012 By JL Risk Management Consultants

Workers Comp Code 8810 aka Class Code 8810

Class Code 8810  also known as workers comp code 8810 is one of the most misunderstood classification codes in Workers Comp. We receive a very large number of emails and phone calls on this subject usually just after an employer’s yearly premium/payroll audit.

Graphic Of Class Code 8810 Large Numbers

123RF

The premium auditor has switched some of the employees to include more expensive classification codes. This has resulted in a much higher than anticipated final premium bill. We will usually hear that the switched employees had been classified as 8810 employees for many years. Why did the insurance auditor switch them from 8810 clerical?

I have posted on this business subject often. You may want to perform a search on the blog and input 8810. The search box is down the screen on the right side. I will link to some of the posts in this article.

Class Code 8810 is a standard exception code along with class code 8742 in most states. The quick definition of the code is a clerical office employee. These employees are considered to be in the safest work environment in most companies. The risk is very low for injury. The result is a very low rate for these employees.

Hand Presenting Class Code 8810 With Magnifying Glass

StockUnlimited

If your company is in a risk pool or assigned risk, the difference can be astounding between 8810 and other classification codes as assigned risk rates are usually very high.

If you receive a premium audit report where any or a large number of employees have been switched to other codes, the premium auditor must explain in full detail why the class codes were changed during their audit.

You can sometimes find them in the audit workpapers that the auditor produces during the audit. If you did not receive a copy of those papers or electronic file (often a spreadsheet), you may want to request a review copy.

Even if the audit was completely performed using software, the auditor will input explanations. You may find those in the miscellaneous notes section. If you find that the employees should have been classified as 8810, you may want to initiate an audit dispute.

If you feel like you may need advice on whether the move from 8810 was correct or mistaken, call in a premium expert to help your company. You only have one shot to make the correct dispute with your carrier.

©J&L Risk Management Inc Copyright Notice

Filed Under: classification code Tagged With: anticipated, environment, insurance auditor, miscellaneous

Comments

  1. Carlos Garcia says

    July 5, 2012 at 3:04 pm

    Perhaps this is a subject better understood from the auditors perspective. In order to reassign a clerical employee to any other class code, it must be proven that the clerical employee is doing something other than clerical work that was viewed in person, in the records, or told to the auditor by the audit contact.

    Clerical duties is usually an all or nothing code for the year. If you interact with customers in person such as a cashier, will call desk, pulling stock, shipping & receiving, directly supervising others in a shop, or construction site, then you are no longer a clerical employee even if you did it once during the policy year. The employee would be reassigned to the highest rated code applicable based on the duties performed.

    For example, I arrived early to an audit appt. and was sitting in the parking lot reviewing the policy when I noticed a forklift driver quickly moving crates & pallets of goods around the warehouse. About 5 minutes before the appt. he stopped, went in the office and removed his coveralls and had a suit underneath (all within plain view from the parking lot). Guess who was the officer/audit contact who when asked what his duties were in the company swore that he worked exclusively in the office only. I told him of my observations and that his coveralls were hanging on the coat rack less than 10 feet away. He was reassigned from clerical.

    Sometimes the payroll records show an employee in a clerical code and also another code during the same year (i.e. shop, deliver, construction, shipping & receiving, etc). I will ask more questions about this employees duties to determine if he did both (which requires that they be reassigned from clerical) or if it was an error in the records (which would reassign the payroll from those other duties back to clerical).

    One large employer stated that they had 50 clerical employees working full time in the office throughout the entire year with little turnover. Their entire office space for these 50 clerical employees consisted of only 5 desks. The majority of these employees were reassigned because they were doing outside sales, supervising construction operations, etc away from the office.

    The interview where the clerical employees duties are discussed in detail is where some of the reassignment problems occur. The audit contact is not familiar with all of the employees that have come and gone during the year. It is OK to check into it further and get back to the auditor ivy telephone or by email when you are certain of the employees exact duties (don’t guess). This is also a good time to ask for the audit worksheet so that you can review the work papers for any issues sooner rather than later.

    For one audit, there were 6 bookkeepers during the year, but the payroll records showed that they came and went right after each other so there was no problems assigning them to the clerical code. If you have a clerical employee that on occasion goes out to the shop or construction site to troubleshoot or to do quality control work (even in his office), then that employee will be reassigned. Thank You, CG

  2. Scott B Miller says

    July 13, 2012 at 8:19 pm

    I find a lot of confusion comes from the somewhat ambiguous term “Clerical”. There are all sorts of clerical jobs that do not fit the WC definition of Clerical such as parts clerks, inventory clerks, store clerks, none of whom can be assigned to Code 8810. To really understand the intended use of this classification one must examine all three terms of the classification wording which are Clerical Office Employees Not Otherwise Classified (NOC).

    Clerical means doing paperwork, computer work, working on books and records. This might be called the status of the work to borrow a term from USL jurisdiction determinatiion. Keeping with this theme is the situs test or where the paperwork is being performed. The insured must remain in a separate office area for the performance of their paperwork duties. This is why auto dealer service writers do not qualify for assignment to code 8810, for example. Yes they do paperwork in a separate office area but then regularly enter the service area for a variety of reasons.

    Lastly code 8810 is a classification of last resort, a NOC classification. It cannot be assigned unless no other classification better describes the work of the employee. So if the basic classification of the insured includes Clerical OFfice Employees, then the worker’s pay is assigned to that code, not to code 8810.

    The questions the auditor will ask are what does the employee do, where does the employee do this work, and is there a more appropriate classification. Only when all three conditions are met will an employee’s pay be assigned to Code 8810.

  3. James J Moore says

    July 16, 2012 at 12:46 pm

    Carlos, thanks for posting your great insights into the blog on 8810.

  4. James J Moore says

    July 16, 2012 at 12:46 pm

    Scott, thanks for posting your 8810 analysis into the blog.

  5. Natalie says

    August 22, 2012 at 12:26 pm

    Nice post which The interview where the clerical employees duties are discussed in detail is where some of the reassignment problems occur. The audit contact is not familiar with all of the employees that have come and gone during the year. It is OK to check into it further and get back to the auditor ivy telephone or by email when you are certain of the employees exact duties.Thanks a lot for posting.

Email Subscription

Search this website:

Work Comp Premium Audit Work Comp Mod Expert work comp expert witnessWork Comp Expert ReservesWork Comp Claim File Audit ExpertWork Comp Expert Witness

About Me

My Photo

James J Moore
Raleigh, NC, United States

James founded a Workers’ Compensation consulting firm, J&L Risk Mgmt Consultants, Inc. in 1996. J&L’s mission is to reduce our clients’ Workers Compensation premiums by using time-tested techniques. J&L’s claims, premium, reserve and Experience Mod reviews have saved employers over $9.8 million in earned premiums over the last three years. J&L has saved numerous companies from bankruptcy proceedings as a result of insurance overpayments.

James has over 27 years of experience in insurance claims, audit, and underwriting, specializing in Workers’ Compensation. He has supervised, and managed the administration of Workers’ Compensation claims, and underwriting in over 45 states. His professional experience includes being the Director of Risk Management for the North Carolina School Boards Association. He created a very successful Workers’ Compensation Injury Rehabilitation Unit for school personnel.

James’s educational background, which centered on computer technology, culminated in earning a Masters of Business Administration (MBA); an Associate in Claims designation (AIC); and an Associate in Risk Management designation (ARM). He is a Chartered Financial Consultant (ChFC) and a licensed financial advisor. The NC Department of Insurance has certified him as an insurance instructor. He also possesses a Bachelors’ Degree in Actuarial Science.

LexisNexis has twice recognized his blog as one of the Top 25 Blogs on Workers’ Compensation. J&L has been listed in AM Best’s Preferred Providers Directory for Insurance Experts – Workers Compensation for over eight years. He recently won the prestigious Baucom Shine Lifetime Achievement Award for his volunteer contributions to the area of risk management and safety. James was recently named as an instructor for the prestigious Insurance Academy.

James is on the Board of Directors and Treasurer of the North Carolina Mid-State Safety Council. He has published two manuals on Workers’ Compensation and three different claims processing manuals. He has also written and has been quoted in numerous articles on reducing Workers’ Compensation costs for public and private employers. James publishes a weekly newsletter with 7,000 readers.

He currently possess press credentials and am invited to various national Workers Compensation conferences as a reporter.

James’s articles or interviews on Workers’ Compensation have appeared in the following publications or websites:
• Risk and Insurance Management Society (RIMS)
• Entrepreneur Magazine
• Bloomberg Business News
• WorkCompCentral.com
• Claims Magazine
• Risk & Insurance Magazine
• Insurance Journal
• Workers Compensation.com
• LinkedIn, Twitter, Facebook and other social media sites
• Various trade publications

 

Archives

  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • November 2010
  • October 2010
  • September 2010
  • August 2010
  • July 2010
  • June 2010
  • May 2010
  • April 2010
  • March 2010
  • February 2010
  • January 2010
  • December 2009
  • November 2009
  • October 2009
  • September 2009
  • August 2009
  • July 2009
  • June 2009
  • May 2009
  • April 2009
  • March 2009
  • February 2009
  • January 2009
  • December 2008
  • November 2008
  • October 2008
  • September 2008
  • August 2008
  • July 2008
  • June 2008
  • May 2008
  • April 2008
  • March 2008
  • February 2008
  • January 2008
  • December 2007
  • November 2007
  • October 2007
  • September 2007
  • August 2007
  • March 2007
  • February 2007

Recent Posts

  • AIC Designation Changes – One Major Modification To Study Guides
  • My Three Favorite Articles That Hooked My Attention – Must Read
  • Coronavirus Vaccine Journey – Second Act – Over in 30 Minutes
  • How Workers Comp Weekly Rate Is Calculated – Temporary Total Disability
  • How Microcaptive 831(b) Arrangements Were Disrupted This Month
  • My COVID-19 Vaccination – Among The Everyday Heroes
  • WCRI 2021 State of the States Presentation – The Past Rules
  • Back To Work During A Pandemic For The Employee – Another Look
  • WCRI COVID-19 Impact and Effect on Claims and Medical Treatment
  • WCRI Session That I Attended – Shocking Topicals Numbers
J&L Risk Management Consultants Inc
14460 Falls of Neuse Road,
Suite 149305
Raleigh, NC 27614
(800) 813-1386
▲Return to top of page
Copyright © 2021 J&L Risk Management Consultants, Inc.

Website Design by Redwood [ Design - Print - Web ]