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8871 Standard Exception Classification Code Question

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Reader Question on 8871 Standard Exception Classification Code Article

Last week, I wrote an article on the   2021 USRP Manual Update by the California Rating Bureau (WCIRB).   The webinar was great.   One area that was covered well was the 8871 Standard Exception Code.

A devour reader reminded me that 8871 is a Standard Exception Code and I did not address.   I changed the old saying from the “customer is always right” to the “reader is always right.”

Screenshot of 8871 Standard Exception Code

You are correct.  I did not cover the 8871 Standard Exception part well enough.  I took a great screenshot of Brian Gray presenting (nice job) that part of the discussion.

I planned to include it this week.  The screenshot should have been included last week.  I apologize for that miscalculation – no pun intended.

Yes, this is a CA webinar.   A majority of the states use the same code.  8871 covers the complete US except for 11 states.

Why do I address this code multiple times?  A large number of employees had and still now have to work out of their homes.

The webinar screenshot contains a great summary definition: (please click to see larger picture (thanks)

screenshot 8817 Standard Exception WCIRB Webinar
(c) WCIRB – please click to see larger version

If you cannot see the screenshot when you click on it, this is what the slide covers:

Standard Exception Restrictions

02 2021 USRP Classification Changes32Classification 8871 will be a Standard Exception classification, subject to USRP Section III, Rule 4, Standard Exceptions.

If a classification specifically includes Clerical Office Employees or Clerical Telecommuter Employees, such employees shall be assigned to the standard classification, regardless of whether the work is conducted at the same or at a separate location.- 41 classifications that specifically include Clerical Office Employees will be amended to also include Clerical Telecommuter Employees.

Woman working 8871 Standard Exception on her laptop
Wikimedia Commons – Brian Kerrigan

Not permissible to divide a single employee’s payroll between a Standard Exception classification and any other classification, including another Standard Exception classification, with the exception of a single permanent job reassignment.- Clerical Office Employees will not separately classify their work-at-home days; 8871 applies only to Clerical Office Employees who work more than 50% of their time at their home or other office space away from any location of their employer.

The  slides for the webinar can be found here – including the 8871 Standard Exception slides.

 

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James Moore

Raleigh, NC, United States

About The Author...

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

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