What is Combinability?
Combinability impacts the data used for the experience rating calculation, which the insurer uses to calculate premium.
The California Workers’ Compensation Experience Rating Plan—1995 (ERP), Section IV, Rule 2, states “separate entities shall be combined for experience rating purposes when the same person or combination of persons own a majority interest in each of the entities.”
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The WCIRB publishes two e-newsletters that focus on common questions and issues related to workers' compensation insurance:
- WCIRB News and Notes features timely answers to workers' compensation questions and topics of interest for insurers, agents and brokers and others involved in the California workers’ compensation insurance industry.
- Classification and Test Audit Insight highlights common classification and test audit issues of interest to auditors, underwriters and others within the workers’ compensation insurance industry.
Browse through the list below to view an edition for each e-newsletter or filter the list by content type or topic. E-newsletters are also searchable through the wcirb.com search feature at the top-right corner of this page.
WCIRB e-newsletters are developed by the WCIRB for informational purposes only. The WCIRB shall not be liable for any damages of any kind, whether direct, indirect, incidental, punitive or consequential, arising from the use, inability to use, or reliance upon information provided herein.
In recognition of the growth of remote work, Classification 8871, Clerical Telecommuter Employees – N.O.C, was established effective January 1, 2021 as a new Standard Exception classification that applies to clerical employees who work more than 50 percent of the time at their home or other office space away from their employer’s location.
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The Workers’ Compensation Insurance Rating Bureau of California (WCIRB) website’s COVID-19 resource page makes it easier to navigate the impacts of the COVID-19 pandemic.
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California continues to experience major wildfires that are damaging and destructive to private homes and other buildings and structures. The Workers’ Compensation Insurance Rating Bureau of California (WCIRB) regularly receives questions regarding the classifications applicable to the cleanup and restoration operations that follow these disasters.
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If the Worker’s Compensation Insurance Rating Bureau of California (WCIRB) receives all required information, experience modifications (X-Mods) may be published as early as four months prior to the policy effective date; however, there are some issues that delay the publication of X-Mods.
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The WCIRB continues to receive questions that focus on the rapid growth of the cannabis industry during the past several years. Although this seems like a relatively new industry, cannabis operations have existed in California for more than 20 years, starting with the legalization of medicinal marijuana in 1996. In 2016, California became the fifth state to legalize adult use of non-medical/recreational marijuana. The classifications applicable to medical marijuana growing, processing and sales and the manufacture of medical marijuana products are similar to operations pertaining to recreational marijuana.
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The Workers’ Compensation Insurance Rating Bureau of California (WCIRB) Contact Center provides assistance to agents and brokers, insurers and policyholders on a wide variety of workers' compensation topics and WCIRB-related questions.
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The Workers’ Compensation Insurance Rating Bureau of California (WCIRB) often receives requests for assistance in classifying businesses that provide massage, spa and personal appearance services. Based on the scope of services and the type of facilities operated, most businesses with such operations are assigned to one of three classifications.
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The Ownership Information Submission feature in WCIRB Connect provides insurers, agents and brokers a convenient way to notify the Workers’ Compensation Insurance Rating Bureau of California (WCIRB) of relevant ownership information for their policyholders.
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Many people enjoy the convenience of having prepared meals delivered. Restaurant employees engaged in delivery operations are assigned to Classification 9079(1), Restaurants or Taverns – all employees – including musicians and entertainers, as General Inclusions.
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The WCIRB Policyholder Ombudsman is available as a resource to employers to navigate the often complex California workers’ compensation system.
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Some common operations are performed at exercise facilities, fitness training programs and medical practices that specialize in sports medicine. Here, we will review the characteristics that define and distinguish fitness-related operations assigned to Classifications 9053(2), Health Clubs or Gyms; 8870, Fitness Instruction Programs or Studios; and 8834, Physicians’ Practices and Outpatient Clinics.
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The Classification Search tool on the Workers’ Compensation Insurance Rating Bureau of California (WCIRB) website is updated to reflect regulatory changes approved by the Insurance Commissioner effective September 1, 2021, including new and revised classifications and advisory pure premium rates.
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This video recording of a recent Class Talk webinar provides an overview of the Stores industry and its Special Industry Classification Procedures as well as recent changes to Stores classifications.
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Join more than 500 of your workers’ compensation industry peers in becoming WCIRB CompEssentials® Certified.
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The Workers’ Compensation Insurance Rating Bureau of California (WCIRB) has received questions regarding the classification applicable to trash and debris hauling. Specifically, when should these operations be assigned to Classification 7219(1), Trucking Firms, and when does Classification 9403(1), Garbage or Refuse Collecting, apply?
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This recording of a recent Mod Talk webinar breaks down the closed claim rerate rules to help you identify the trigger and how these claims may impact experience rating. You will learn how to identify these rerates and gain the knowledge to help you answer policyholder questions.
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WCIRB Connect® is a powerful tool that provides online access to information and data for insurers, agents and brokers, and other authorized users.
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Campground operations are assigned to Classification 9015(1), Building Operation, which is part of the Property Management/Operation Industry Group. Overnight camps with organized activities, including but not limited to children’s overnight summer camps, are assigned to Classification 9048(1), Camps.
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Before submitting an online ownership form to report a change in ownership, submitters should obtain the following information from the policyholder.
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The weather is starting to warm up, and soon it will be a good time to go for a swim. Quite a few classifications apply to swimming facilities and swimming-related operations.
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Follow these easy steps to find inspection reports in WCIRB Connect.
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Here is a list of examples in which online ownership requests should not be submitted to the WCIRB. They should, however, be reported to the insurer of record.
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As aerial drones, formally known as Unmanned Aircraft Systems, are becoming increasingly common and used in a variety of industries, we thought we’d describe the classification procedures surrounding UASs so you understand how to properly classify these operations.
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Invest in your workers’ compensation insurance skill set by attending free webinars through the WCIRB.
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Insurers and licensed casualty agents and brokers can quickly obtain detailed policyholder data available on the Comprehensive Risk Summary® (CRS) report in WCIRB Connect®. The fully downloadable and printable CRS report includes the following information:
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The WCIRB conducts inspection site visits of employers' operations for classification purposes and conducts test audits to validate the accuracy of the USR data that insurers submit subsequent to completing their final audit.
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The Workers’ Compensation Insurance Rating Bureau of California (WCIRB) often receives questions concerning when a “professional” employee of a private school assignable to Classification 8868, Colleges or Schools – private – not automobile schools – professors, teachers, or academic professional employees, meets the requirements for assignment to Classification 8810, Clerical Office Employees.
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The Workers’ Compensation Insurance Rating Bureau of California (WCIRB) has launched a COVID-19 resource page, making it easier to navigate the impacts of the COVID-19 pandemic.
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The Workers’ Compensation Insurance Rating Bureau of California (WCIRB) has received questions about which workers’ compensation policies must be physically audited and whether physical audit requirements may be waived based on the current COVID-19/coronavirus outbreak. Under a variety of circumstances, it may not be advisable or even possible for premium auditors to meet face-to-face with policyholders or their representatives to conduct an audit.
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California is experiencing a significant increase in tree trimming and tree removal operations, including operations performed around elevated power lines to reduce fire hazards. As a result, the WCIRB has received questions about classifying tree removal and tree trimming operations. The two classifications that most often apply are 0106, Tree Pruning, Repairing or Trimming, and 0042, Landscape Gardening.
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Ownership is an important component of experience rating. It determines what loss and payroll data goes into calculating a business’s experience modification. The California Workers’ Compensation Experience Rating Plan—1995 (ERP) specifically defines “ownership” for the purposes of experience rating. Note that these definitions may differ in comparison to definitions used in other instances.
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Historically, limitations on an individual’s annual payroll for workers’ compensation purposes have been applied in California for certain types of highly compensated employees. The California Workers’ Compensation Uniform Statistical Reporting Plan—1995 (USRP) limits the reported annual payroll for executive officers, partners, individual employers and members of a limited liability company. In addition, the same annual payroll limitation has historically applied to select employees in classifications with many highly compensated employees and great variability in wages.
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“Logistics” is commonly defined as the management of the flow of goods between the point of origin and the point of consumption in order to meet customers’ specific requirements. Several classifications apply to employers engaged in logistics services. To correctly classify such employers, it is imperative to determine the services the employer performs on a fee basis.
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The WCIRB performed a comprehensive review of the classifications applicable to employers that sell hardware, electrical and plumbing supplies.
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Short-term housing options have become increasingly popular as an alternative to staying in hotels or motels. Effective January 1, 2020, the California Workers’ Compensation Uniform Statistical Reporting Plan—1995 (USRP) specifically addresses how short-term housing operations are classified in addition to combining the separate phraseologies for Classifications 9050(1), Hotels, and 9050(2), Motels.
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For this reason, most pharmacies are assigned to Classification 8017(1), Stores – retail. This can include compounding pharmacies that combine, mix or alter ingredients in response to a prescription to create a medication tailored to the medical needs of an individual patient. If the pharmacy performs delivery operations, these are also included in Classification 8017(1). However, depending on the overall business of the employer, pharmacies can be assigned to other classifications.
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Agents and brokers are often asked to assist their policyholder customers during disputes with the WCIRB or insurance companies. The WCIRB and insurers licensed to underwrite workers’ compensation insurance in California are required to have a policyholder dispute resolution process. Following are steps that agents and brokers should know so they can assist policyholders with their disputes.
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The WCIRB is often asked how to classify eateries and dining establishments. Many, but not all, businesses where you can buy a meal or a quick bite are classified as restaurants.
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Every year, California experiences wildfires, and significant resources are dedicated to fighting and preventing these dangerous and destructive fires. Here is an overview of classifications that apply to many of these firefighting and fire prevention operations.
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DocuSign is now required in order to request authorization from policyholders to access experience rating worksheets, inspection reports and the Comprehensive Risk Summary® (CRS) reports on WCIRB Connect®.
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The WCIRB is often asked how to classify specific operations or job duties. However, the Standard Classification System, found in Part 3 of the California Workers' Compensation Uniform Statistical Reporting Plan—1995, directs us to classify the business of the employer.
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In the California Workers' Compensation Uniform Statistical Reporting Plan—1995 (USRP), several rules include a requirement for time cards or time book entries. The Workers’ Compensation Insurance Rating Bureau of California (WCIRB) often receives questions regarding these documentation requirements.
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Having accurate payroll data is necessary because it is the basis for the policyholder’s insurance premium and their experience modification.
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Effective January 1, 2019, the California Workers’ Compensation Uniform Statistical Reporting Plan—1995 (USRP) was amended to include rules that direct when equity-based compensation may be excluded from reported payroll.
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This past year, we introduced a more secure Letter of Authorization process in WCIRB Connect. Insurers as well as licensed agents and brokers are now using DocuSign® digital signature technology to request authorization from policyholders, making it quicker to access experience rating worksheets (ratesheets), inspection reports and Comprehensive Risk Summary® (CRS) reports.
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In California, a number of construction and erection classifications are divided into two separate classifications based on the hourly wage of the employee assigned to the classification and each of these classifications has a different advisory pure premium rate.
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The WCIRB performed a comprehensive study of three Food Packaging and Processing Industry Group classifications for breweries, wineries and distilleries. In addition to beverage manufacturing operations, many breweries, wineries and distilleries have additional operations including facility tours, tasting rooms or tap rooms, retail stores, restaurants, taverns and the preparation and serving of hot food.
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As the year draws to a close, we would like to provide you with helpful links and online resources on wcirb.com to help you get ready for 2019.
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The WCIRB performed a comprehensive study of the classifications included in the Salvage Material Dealers Industry Group. This study found that the salvage, disposal and recycling industries have converged and the Industry Group was renamed to the Recycling and Refuse Management Industry Group.
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The rules pertaining to ownership and experience rating can seem complex to even the most experienced insurance professional. The WCIRB CompEssentials® course, Ownership and Experience Rating, provides a practical approach to navigating the intricate regulations to help you better understand the process and help your customers.
In addition to explaining how to determine ownership of an entity, Ownership and Experience Rating demystifies the process for evaluating a change in ownership and ascertaining whether the experience should apply to a new owner.
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Licensed casualty agents and brokers can quickly obtain detailed policyholder data available on the Comprehensive Risk Summary® (CRS) report in WCIRB Connect®.
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In this edition, we focus on classifications that are applicable to special event planners who organize receptions, parties, banquets and similar special events.
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Located in the Learning Center of WCIRB.com, the Classification page makes it easy for you to find everything related to classifying a business – including web articles on trending topics, educational information and online tools.
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This edition covers classification information for the most common residential solar energy systems.
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Learn more about the classifications that are applicable to employers that perform a variety of minor “handyperson” repair services at residential or commercial locations.
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In this edition, we break down the key sections in Part 3, Standard Classification System, of the California Workers' Compensation Uniform Statistical Reporting Plan–1995 (USRP) and focus on how the regulations work together to establish classification assignments.
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There are several classifications that potentially apply to construction site cleaning operations, depending primarily on the employer’s overall business operations.
Employers that perform construction job site cleaning for other concerns on a fee basis are classified as 9008, Janitorial Services – by contractors.
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The WCIRB frequently receives questions regarding the classification of stores that sell gasoline or gasoline stations that include store operations. The classification procedures for this combination of operations are provided in the California Workers’ Compensation Uniform Statistical Reporting Plan —1995 (USRP) at Part 3, Section IV, Special Industry Classification Procedures, Rule 6h. This rule states:
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This edition reviews the significant distinctions between four of these automotive classifications that have some overlapping operations: 8389, Automobile or Truck Repair Facilities, 8393, Automobile or Truck Body Repairing and Painting, 8397, Automobile or Truck Transmission Repairing and Rebuilding, and 8388, Rubber Tire Dealers.
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The USRP at Part 3, Standard Classification System, Section IV, Special Industry Classification Procedures, Rule 6, Stores, provides instructions for determining whether a store is a wholesale or retail store, instructions for determining the applicable store classification based on the types of merchandise sold, and directives to separately classify certain store employees.
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This edition of News and Notes highlights updates, reminders, new resources and upcoming events from the WCIRB.
WCIRB.com has a New Look!
This week, the WCIRB launched the refreshed WCIRB.com website that includes a brand new look and feel, an enhanced site search and one-stop pages with content geared specifically towards the needs of those involved in workers’ compensation insurance such as:
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This edition compares the classifications that apply to two popular types of after school programs.
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WCIRB Connect offers insurers, agents and brokers so many features and options to quickly access policyholder information that it might be hard to keep track of them all. This edition of News and Notes highlights some easy-to-use tools and educational resources found in WCIRB Connect that users might have missed.
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After a very wet winter, it’s finally spring and many people will want to spruce up their gardens. This edition compares two garden-related classifications that are sometimes assigned together.
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While many employers in California engage in the rental or sale of party supplies, these employers do not all handle the same types of merchandise or provide the same services to their customers. This e-newsletter addresses how some of the most common party supply store operations are classified.
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The goal when classifying a policyholder’s business is to determine which classification(s) best describe its operations based on the rules found in Part 3 of the California Workers' Compensation Uniform Statistical Reporting Plan—1995 (USRP). But how do you ensure that you are applying the right classification to a business especially when workplace processes keep changing as industries evolve? Here are some tips and online resources available to help.
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In this edition: USRP requirements when allocating an employee’s payroll into multiple classifications.
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The previous edition of the Classification and Test Audit Insight e-newsletter explained that if there is a classification that specifically describes the business, that classification must be assigned, and assignment by analogy to another classification is not permitted.
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One of the challenges faced by insurers, agents and brokers is determining the proper classification for a business operation when there is no classification in Part 3 of the California Workers' Compensation Uniform Statistical Reporting Plan–1995 (USRP) that specifically describes the operation. In these situations, the USRP directs that a classification is assigned by analogy.
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Last year, the California Insurance Commissioner approved a change to the California Workers’ Compensation Experience Rating Plan–1995 (ERP) to use expected loss rates rather than advisory pure premium rates as the basis of experience rating eligibility.
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Classification 8859 applies to computer programming, software development, and web application development or website operation. Since its establishment in 1993, Classification 8859 has consistently developed the lowest advisory pure premium rate of any classification. We receive many requests for clarification regarding which employers can be assigned to these low rated classifications. There are certain limitations on what operations can be assigned to Classification 8859 when an employer also performs operations that are assignable to other classifications.
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Workers’ compensation insurance is complex and can be daunting for employers in California. Many employers commonly seek assistance to understand how their business is classified, how their experience modification is calculated, what should be expected at the final audit of their policy, what to do if they have a dispute with the insurer or the WCIRB, and other questions about the California workers’ compensation system.
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The WCIRB receives questions regarding the workplace separation requirements that are often required to separately classify operations. It is important to recognize that physical separation is a defined term in the California Workers’ Compensation Uniform Statistical Reporting Plan—1995 (USRP), and is significantly different from the separation requirements applicable to clerical office employees.
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Employees involved in construction project management can be assigned to a variety of classifications. When construction project management employees are employed by a construction industry contractor, they are often engaged in supervising construction operations and are assigned to their employer’s governing classification as defined in the California Workers’ Compensation Uniform Statistical Reporting Plan—1995 (USRP)
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The WCIRB Contact Center frequently receives questions about how to classify domestic or private residence employees. The California Workers’ Compensation Uniform Statistical Reporting Plan—1995 (USRP) and the Standard Classification System do not apply to domestic or private residence employees. The USRP addresses this issue in Appendix II, Payroll/Remuneration Table:
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The California Workers’ Compensation Uniform Statistical Reporting Plan—1995 (USRP) was amended effective January 1, 2014, to add Classification 9095, Event Market, Festival or Trade Show Operation. The WCIRB Contact Center has received questions about how and when this relatively new classification applies
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In this edition, we will examine Classification 8390, Automobile, Truck or Van Conversion or Customizing, as this classification includes a blend of automotive operations that, when performed individually, are assignable to separate Automotive Industry Group classifications.
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The California Workers’ Compensation Uniform Statistical Reporting Plan—1995 (USRP) has three rules found in Part 3, Section III, General Classification Procedures that are on-point when classifying supervisory employees. They are Rule 3d, Miscellaneous Employees, Rule 4a, Clerical Office Employees, and Rule 5, General Inclusions.
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During the current drought, many new water wells have been drilled in California and many existing wells have been re-drilled to access deeper groundwater. The WCIRB has received calls regarding classifications applicable to water well drilling and related operations.
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The WCIRB often receives questions regarding the classifications applicable to charter schools. Since 1992, California law allows local school boards, and in some limited circumstances county boards of education and the state board of education, to authorize charter schools. There are currently over 1,000 charter schools in California.
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The WCIRB devotes significant resources to perform classification inspections each year to ensure that classifications are assigned accurately and that data is properly reported to the WCIRB.
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In this e-newsletter, we will review how fee-based operations provided to the public by private vocational schools may constitute as Multiple Enterprises based on the rules of the Standard Classification System.
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One of the WCIRB’s core functions is ensuring that the Standard Classification System remains relevant to California’s ever changing business landscape. That’s why we have a unit dedicated to analyzing classifications to make sure that they continue to reflect distinct and identifiable industries comprised of employers engaged in a relatively similar set of operations.
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In a previous Classification and Test Audit Insight e-newsletter, we reviewed the general definition and procedures for miscellaneous employees that are provided in the California Workers’ Compensation Uniform Statistical Reporting Plan—1995 (USRP) at Part 3, Standard Classification System, Section III, General Classification Procedures, Rule 3, Multiple Enterprises.
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Employers that have operations assigned to two or more distinct classifications, other than the Standard Exception classifications, may have some employees that are defined as miscellaneous employees. The general definition of miscellaneous employees is provided in the California Workers’ Compensation Uniform Statistical Reporting Plan—1995 (USRP) at Part 3, Standard Classification System, Section III, General Classification Procedures, Rule 3, Multiple Enterprises, Subrule d. This Rule states, in pertinent part:
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This edition covers using Collective Bargaining Agreements to validate the hourly wage of construction employees.
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This edition discusses which employment and vocational programs qualify for assignment to Classification 8806, Sheltered Workshops or Work Activity Centers.
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While the WCIRB successfully publishes most experience modifications at least 60 days prior to their effective date, there are times when an experience modification (X-Mod) cannot be published due to missing or incomplete data. Here are some of the most common reasons that the WCIRB cannot publish an X-Mod.
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Every insurer that is licensed to underwrite workers’ compensation insurance in California is required to have a dispute process to facilitate the resolution of policyholders’ issues. Similarly, the WCIRB has a dispute resolution process.
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In this edition: Special Industry Classification Procedures apply to California Electronic Product Manufacturing Classifications.
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The regulations contained in the California Workers' Compensation Uniform Statistical Reporting Plan—1995 help determine reportable remuneration. But what about independent contractors?
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Aggregate financial data reported by insurers is a critical component in the determination of advisory pure premium rates. Learn more about exactly what data is being collected and what it represents.
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Medical transaction data reporting is now required in California for NAIC groups that write at least 1% of the California workers' compensation market and the WCIRB has launched the new California Medical Transaction Data Quality Assurance Program.
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Reporting unit statistical loss corrections is a common source of questions for data reporters. Learn more about when a loss correction should be submitted.
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The California Workers' Compensation Experience Rating Plan - 1995 (ERP) at Section V, Rule 4, Application of Experience Modification to Policies Covering Employee Leasing Arrangements, provides requirements for workers' compensation policies written where an entity utilizes the services of a third party (Labor Contractor) to provide its workers for a fee or other compensation.
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Effective January 1, 2014, Classification 5606, Contractors – construction or erection, was amended for clarity to include management level employees such as safety managers, project managers and engineers, who are not in the direct chain of command over construction operations but whose duties include walking through a construction site during the construction phase, provided the insured retains two levels of supervision over the construction crew(s) or where all operations have been subcontracted to licensed subcontractors. These amendments, which are included in Classification 5606 shown below, do not represent any change to established classification procedure; rather, the amendments were for clarity only.
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The WCIRB frequently receives questions asking how to classify employers that handle e-waste. Typically, these are electronic products that have reached the end of their useful life. We are aware of three distinct business models that are common in the e-waste industry.
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