EXCERPT

California Workers’ Compensation Uniform Statistical Reporting Plan—1995
Effective September 1, 2023

Part 3, Standard Classification System, Section III, General Classification Procedures, Rule 4, Standard Exceptions

4. Standard Exceptions

Employees engaged in the clerical office or outside sales functions described below are referred to as Standard Exception Employees. If a standard classification specifically includes Clerical Office Employees, Clerical Telecommuter Employees or Outside Salespersons, such employees shall be assigned to the standard classification, regardless of whether the work is conducted at the same or at a separate location. It is not permissible to divide a single employee’s payroll, within a single policy period, between a Standard Exception classification and any other classification, including another Standard Exception classification, with the exception of a single permanent job reassignment. Otherwise, the remuneration of Standard Exception Employees is subject to division of payroll in connection with all other classifications in accordance with the following:

a. Classification 8810, Clerical Office Employees, and 8871, Clerical Telecommuter Employees

Clerical Office Employee(s) and Clerical Telecommuter Employee(s) are defined as employees whose duties are confined to keeping the books, records or cash of the employer; conducting correspondence; using computers; dispatching; recording weights; or who are engaged wholly in general office work or office drafting, having no regular duty of a non-clerical nature in the service of the employer. Except as otherwise provided in this Rule, the entire payroll of any employee who is engaged in operations performed by Clerical Office Employees or Clerical Telecommuter Employees and also is exposed (1) to any operative hazard of the business or (2) to any outside selling or collecting work, shall be assigned to the highest rated classification of work to which the employee is so exposed. Supervisors and clerks, such as time, stock or tally clerks, whose work is (1) necessary to, (2) performed in connection with, or (3) related to any operations of the business other than clerical office operations, shall not be classified as Clerical Office Employees or Clerical Telecommuter Employees.

Classification 8810, Clerical Office Employees, shall be applied only to the payroll of persons herein described who work exclusively in areas that are separated from all other work places of the employer by buildings, floors, partitions, railings or counters and within which no work is performed other than clerical office or drafting duties as defined in this Rule, or who engage in such work at any of their employer’s office locations 50% or more of their time and devote the balance of their time to clerical office or drafting duties at their home or other office space away from any location of their employer.

Classification 8871, Clerical Telecommuter Employees, shall be applied only to the payroll of persons herein described who work more than 50% of their time at their home or other office space away from any location of their employer, and devote the balance of their time to clerical office or drafting duties at any of their employer’s locations in areas that are separated from all other work places of the employer by buildings, floors, partitions, railings or counters and within which no work is performed other than clerical office or drafting duties as defined in this Rule.

b. Classification 8742, Salespersons – Outside (Outside Salespersons)

Salespersons – Outside (Outside Salespersons) are defined as those employees who are engaged exclusively in sales, collection or public relations work away from the premises of the employer or who are engaged in such work for any portion of their time and devote the balance of their time to clerical office duties in areas that are separated from all other work places of the employer by buildings, floors, partitions, railings or counters and within which no work is performed other than clerical office or drafting duties as defined in this Rule. Except as otherwise provided in this Rule, the entire payroll of any employee who is engaged in operations performed by Outside Salespersons and is also exposed to any operative hazard of the business shall be assigned to the highest rated classification of work to which the employee is so exposed.

When Outside Salespersons are required to pay their own traveling expenses out of their remuneration, not less than two-thirds of such remuneration shall be included as payroll.

c. Standard Exception Classification Procedures

(1) Employees who otherwise qualify for assignment to a Standard Exception classification will not be disqualified from that assignment if they perform certain duties directly related to their clerical office or outside sales work as defined in Rules 4a and 4b. These duties include depositing funds at a bank, picking up or delivering the employer’s mail, purchasing office supplies and entering an area exposed to the operative hazards of the business for ingress or egress purposes or for purposes in connection with clerical activities, such as delivering paychecks.

(2) Where a classification phraseology specifically includes Clerical Office Employees, Clerical Telecommuter Employees or Outside Salespersons, such employees shall be assigned to that classification regardless of whether their work is conducted at the same or at a separate location.

A list of classifications that include Clerical Office Employees, Clerical Telecommuter Employees or Outside Salespersons can be found in Appendix IV.

Example

An employer operates as a physicians’ practice at 1534 Elm Street, employing doctors, nurses and receptionists. All operations at this location are assignable to Classification 8834, Physicians’ Practices and Outpatient Clinics – all employees – including Clerical Office Employees and Clerical Telecommuter Employees. At a separate location, 3415 Oak Street, the employer maintains a clerical office staff who conduct all of the billing and scheduling in support of the Elm Street operations. Since the Oak Street operations support the employer’s Elm Street medical office (assigned to Classification 8834), the operations at the separate Oak Street location are also assignable to Classification 8834.

(3) When an employer’s clerical office staff meet the definition of Clerical Office Employees, are engaged in operations in connection with other operations performed by the employer and such other operations are assigned to two or more classifications, one or more of which includes Clerical Office Employees and one or more of which does not include Clerical Office Employees, the payroll of the clerical office staff shall be assigned in accordance with the following:

1. Compare the sum of the payroll (other than the payroll of miscellaneous employees) generated by the operations assigned to classifications that do not include Clerical Office Employees to the sum of the payroll (other than the payroll of miscellaneous employees) generated by the operations assigned to classifications that include Clerical Office Employees.

2. If the sum of the payroll generated by the classifications that do not include Clerical Office Employees exceeds the sum of the payroll generated by the classifications that include Clerical Office Employees, then the payroll of the clerical office staff shall be assigned to Classification 8810, Clerical Office Employees.

3. If the sum of the payroll generated by the classifications that include Clerical Office Employees equals or exceeds the sum of the payroll generated by the classifications that do not include Clerical Office Employees, then the payroll of the clerical office staff shall be assigned to the classification that includes Clerical Office Employees. When there is more than one such classification, the clerical office staff shall be assigned to the classification that generates the most payroll.

4. The procedure stated above for classifying an employer’s clerical office staff shall also apply when classifying an employer’s clerical telecommuter staff, as well as its outside salespersons (see example below).

Example

At location 1, an employer operates an outpatient clinic assigned to Classification 8834, Physicians’ Practices and Outpatient Clinics – all employees – including Clerical Office Employees and Clerical Telecommuter Employees. At location 2, the same employer operates a convalescent nursing facility – assigned to Classification 8829(2), Convalescent Nursing Facilities – including supervisors and receptionists. In an area that is separate from all other workplaces, the employer maintains clerical and administrative office staff who work exclusively at the office to conduct payroll and billing activities in support of both the outpatient clinic and the convalescent nursing facility. Under Scenario A (below), the convalescent nursing facility assigned to Classification 8829 (which does not specifically include Clerical Office Employees/Clerical Telecommuter Employees) generates more payroll than the outpatient clinic and, therefore, the clerical office staff working in support of both operations are assignable to Classification 8810. Under Scenario B, since the outpatient clinic generates more payroll than the convalescent nursing facility, the clerical office staff working in support of both operations are assignable to Classification 8834. In both scenarios, regardless of which operation generates more payroll, the clerical office staff working exclusively in support of the convalescent nursing facility are assignable to Classification 8810, and the clerical office staff working exclusively in support of the outpatient clinic are assignable to Classification 8834.

Example

An employer operates an automobile and truck parts store, assignable to Classification 8046, Stores – automobile or truck parts or accessories – wholesale or retail – including Outside Salespersons. This employer also maintains a department for the repair of automobiles or trucks on a fee basis, and employees engaged in these operations are assignable to Classification 8389, Automobile or Truck Repair Facilities. The employer maintains outside sales staff to conduct marketing and outside sales operations in support of the automobile and truck parts store and promote the service and repair operations. Under Scenario C (below), the vehicle repair operations assigned to Classification 8389 (which do not specifically include Outside Salespersons) generate more payroll than the auto parts store operations assigned to Classification 8046 and, therefore, the outside sales staff working in support of both operations are assignable to Classification 8742. Under Scenario D, since the auto parts store operations generate more payroll than the vehicle repair operations, the outside sales staff working in support of both operations are assignable to Classification 8046. In both scenarios, regardless of which operation generates more payroll, outside sales staff working exclusively in support of the repair operations are assignable to Classification 8742, and outside sales staff working exclusively in support of the auto parts store operations are assignable to Classification 8046.