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

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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

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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.

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What Is The Governing Class Code On My Policy?

August 10, 2010 By JL Risk Management Consultants

Governing Class Code-Workers Comp Term

The governing class code is the employers code that generates the most payroll. It is used to determine the type of business the insured is in. Miscellaneous employees will be coded under the governing class code as well.

Chart Of Governing Class Code Generates Payroll

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Interchange Of Labor Rule – Employee’s Payroll Divided

October 15, 2008 By JL Risk Management Consultants

Interchange Of Labor Rule For Workers Comp Payroll

With the Interchange of Labor Rule – Can Employee’s Job Duties Be Divided on Workers Comp Payroll Reports?

Vector Icons Interchange of labor rule Employee's Payroll job Duties Classification

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A Question From One Of Our Readers On The Last Post –

Are we able to split a job into different duties and keep track of each job duty on the payroll? Would that save us Workers Comp premiums?

Yes, you may split up an employee’s job duties among different classification codes under the Interchange of Labor Rule. This may save your company $ in Workers Comp premiums. However, the rules are very specific and somewhat complicated. There are a few caveats that come with splitting up an employee’s payroll into different workers comp classification codes. They are:

Every minute the employee worked under a certain classification code would have to be tracked. An estimate or % is not acceptable.
You cannot mix the payroll among the Standard Exception codes and another class code. The main Standard Exception is code 8810 – Clerical.
The employee cannot be considered a miscellaneous employee. The term miscellaneous is not a true miscellaneous employee.
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The payroll for holiday, sick, vacation, and overtime will usually be assigned to the higher class code.
The records for this must be very accurate and well-documented.
Certain states may not allow the split of payroll.
Certain classification codes may not allow the payroll to be split.

Unfortunately, we have not seen the division of payroll as an advantage to an employer. The main reason is that the employee has part of their job duties as a Standard Exception, which results in the employee being rated in a higher classification code. This applies even if the employee only works a few minutes in a different job.

It is advisable to make sure that the division of an employee’s payroll will actually reduce the Workers Comp premium before policy renewal or the payroll audit.