Revisited Class Codes 8742 and 8810
Some of the most read articles on my blog involve Classification Codes 8810 and 8742. These two class codes can sometimes be very confusing as they are very general. They cover so many jobs and job functions in a company. There is one caveat to these two class codes – especially 8810. If an employee performs any other job function that would place them in a higher classification, premium auditors will place the person in the highest code. This is allowed by the NCCI and State Rating Bureau rules. Even if the employee works for only a few minutes in a job task that places them at a higher rate, they will be removed from the 8810 or 8742 codes.
We often receive phone calls and emails not long after an employee or group of employees have been recently reclassified by the premium auditor. Classification Codes 8810 and 8742 are called Standard Exception Codes. The reclassification sometimes results from a miscommunication between the employer and premium auditor. One recommended way to avoid any miscommunications during a Workers Comp premium audit is by designating one person to provide any requested material to and answer questions from the premium auditor.
Standard Exception Codes are normally not included in the governing classification. These are clerical, outside sales, and often (but not always) drivers. The governing classification is the one that generates the most payroll other than the standard exceptions codes.
There are many employees that can likely be classified under 8810 and 8742 in an organization as these class codes can describe many jobs in an organization – not just clerical, outside sales, and drivers. The Standard Exception codes have some of the longer descriptions in any of the class code manuals.
I have noticed very recently some of the class codes now include an “all employees” notation. The “all employees” designation on a class code means there are not Standard Exception Codes that will be accepted for a certain type of employer. Some the recent class code changes have eliminated 8810 and 8742 from being used by certain companies. I am not saying these were fair decisions. They are what we have to work with once they are changed by NCCI or the State Rating Bureau.
If a group of your employees that were classified as 8810 or 8742 have been reclassified, you may not want to just accept these changes. Always call in a non-agent expert if you feel that the changes on the premium audit bill were not correct.
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