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Update on 2015 USRP Changes

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Update on 2015 USRP Changes

January 21, 2015

In this edition: Information on 2015 updates to payroll minimum and maximum limitations, physical audit threshold, and classification changes. 

Each year the WCIRB proposes updates to the California Workers’ Compensation Uniform Statistical Reporting Plan—1995 (USRP). The Insurance Commissioner approved all of the proposed USRP changes for January 1, 2015 including updates to the payroll limitations and enhancements to over 120 classifications. No changes were proposed for dual wage construction or erection classification thresholds.

The payroll minimum that is applicable to executive officers, partners, individual employers, and limited liability corporation (LLC) members and managers was increased from $42,900 to $44,200. The payroll maximum applicable to these was increased from $109,200 to $111,800. For more information about the USRP rule regarding these payroll limitations, see Part 3, Section V, Payroll – Remuneration, Rule 1, Payroll – Remuneration, Subrules j, k, l and m. Several classifications applicable to entertainers and athletic teams also include a maximum payroll limitation, and these classifications have been updated to reflect the $111,800 limitation.

Physical Audit Requirements

The requirements establishing which policies must be physically audited have been updated and clarified (see USRP Section VI, Rule 4, Audit of Payroll). Policies in general must be physically audited if:

  • The policy develops a final premium of $13,000 or more (increased from $10,000). 
     
  • The policy produces a final premium of less than $13,000 but develops exposure in a dual wage construction or erection classification that requires the regular hourly wage to equal or exceed a specified amount. (If the policy is a renewal and the insurer physically audited one of the two immediately preceding policy periods, a physical audit is not required). 
     
  • The policy insures the holder of a C-39 Roofing  license from the Contractors State License Board, regardless of the final premium. (Note: Rule 4 was amended to reference California Insurance Code Section 11665(a) to clarify that there are additional statutory requirements regarding the audit of C-39 license holders, i.e., the audit “…shall include an in-person visit to the place of business of the roofing contractor to verify whether the number of employees reported by the contractor is accurate…”)

Classification 5606, Contractors

A significant change was approved for Classification 5606, Contractors – executive level supervisors. Since 1950, this classification has contained a unique requirement that its use must be confirmed by specific written approval from the WCIRB. In many cases, this requirement necessitated a special classification inspection. This approval requirement has been removed; all other requirements and restrictions regarding the assignment of 5606 remain unchanged.

Standard Classification System Enhancements

Changes were approved for over 120 classifications in connection with the WCIRB’s ongoing USRP Enhancement project. These changes expand and improve the USRP description and definition for each classification to clarify the intended scope of the classification and to provide direction as to how related operations shall be classified. These changes do not change the scope or application of each classification, but make it easier to understand how each classification is administered.

All of the approved changes are summarized at the beginning of the USRP at Memorandum pages 1 through 10. The changes are also summarized in the WCIRB’s Quick Reference Guide 2015. Both the USRP and Quick Reference Guide may be viewed, printed or downloaded from the Manuals and Plans page in the Publications and Filings section of the WCIRB website (http://www.wcirb.com).

Related Information

WCIRB Quick Reference Guide 2015 

California Workers' Compensation Uniform Statistical Reporting Plan—1995 

WCIRB Education on Demand 

Online Guide to Workers' Compensation 

Classification Information