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:
For example, if an employer manufactures wood furniture and acrylic plastic aquariums, because these are two operations that do not normally prevail in the business described by a single classification, the manufacturing employees engaged in each operation are assigned to Classification 2883, Furniture Mfg. – wood, or 4496, Plastics – fabricated products mfg., subject to the provisions of the Multiple Enterprises rule. Employees that do not engage in activities integral to either manufacturing operation but provide ancillary support to both operations are miscellaneous employees and are assigned to the classification that generates the greatest amount of payroll. Common examples of miscellaneous employees for a manufacturing employer include equipment maintenance employees and shipping/receiving employees. If, in the example above, Classification 2883 generated the greatest amount of payroll during the policy period, the equipment maintenance and shipping/receiving employees would be assigned to Classification 2883.
It is important to note that the general definition for miscellaneous employees exists within the Multiple Enterprises rule. In many cases, however, an employer’s operations are assigned to two or more classifications based on classification phraseology directing that certain operations shall be separately classified rather than in accordance with the provisions of the Multiple Enterprises rule. The term shall be separately classified is defined in the USRP at Part 3, Section II, Rule 24:
24. Shall Be Separately Classified
If a rule contained in this Plan or a footnote to a classification contains a directional phrase specifying that certain operations or employees shall be separately classified, the payroll of employees engaged in such operations shall be separately classified, provided proper payroll records have been maintained. Unless otherwise required by the classification, this rule shall apply even if the operations are not physically separated. The payroll of employees who interchange between operations described by the classification and those referred to in the footnote shall be assigned in accordance with Section V,
For example, Classification 4034, Concrete Products Mfg., includes the following directive: Drivers and their helpers shall be separately classified as 8232(2), Building Material Dealers. If an employer engaged in manufacturing concrete products has operations assigned to Classifications 4034 and 8232(2) based on this directive and the employer retains equipment maintenance employees that maintain both the manufacturing equipment and the delivery vehicles, the maintenance employees are assigned to Classification 4034 regardless of which classification generates more payroll. This is because it is the directive footnote that requires assignment of classification 8232(2) and not due to the application of the Multiple Enterprises rule and therefore the equipment maintenance employees cannot be considered miscellaneous employees.
There are a limited number of classifications that direct that certain employees or operations shall be separately classified in accordance with the provisions of the
Multiple Enterprises rule. In those cases, the provisions of the Multiple Enterprises rule, including its definition of miscellaneous employees, are applicable in determining the appropriate classification for employees that perform operations in support of more than one classifiable operation.
There are also additional instructions for miscellaneous employees contained in the Special Industry Classification Procedures for Construction or Erection and Farms. These industry-specific procedures for miscellaneous employees will be addressed in a future CTA Insight e-newsletter.
Have a suggestion for a future topic? Email [email protected].