EXCERPT

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

Part 3, Standard Classification System, Section V, Payroll – Remuneration, Rule 3, Division of Single Employee’s Payroll 

3. Division of Single Employee’s Payroll 

When any location of an employer’s business is classified on a divided payroll basis in accordance with the provisions contained herein, the remuneration of any one employee may be divided between two or more classifications, provided the employer has maintained complete and accurate records supported by original time cards or time book entries which show separately, both by individual employee and in summary by operations performed, the remuneration earned by such employee, except such division SHALL NOT BE ALLOWED:

a.    In connection with the Standard Exception classifications, which must be assigned in accordance with the specific rules under this Plan.

b.    If the division is contrary to classification phraseology.

If the employer fails to keep complete and accurate records as provided in this rule, the entire remuneration of the employee shall be assigned to the highest rated classification applicable to any part of the work performed by the employee. Payroll may not be divided by means of percentages, averages, estimates, or any basis other than specific time records.

If the employer’s business is classified on a divided payroll basis as defined in this rule, payments, such as vacation pay and bonus pay, made on a basis other than actual hours worked shall be apportioned among the classifications applicable to the employee’s payroll based on the actual per hour earnings in the classifications.

Example

An employee’s hourly wages are divided between Classifications 2883 and 9522 as shown below. During the pay period, the employee receives $150.00 in vacation pay and a bonus of $500.00. The vacation pay and the bonus are apportioned among Classifications 2883 and 9522 based on the distribution of payroll earned on an hourly basis in these classifications. The payroll earned on an hourly basis in Classification 2883 is 68% of the payroll for Classifications 2883 and 9522 combined ($560.00 / $824.00 = 68%). Therefore, $102.00 of vacation pay ($150.00 vacation pay x 68% = $102.00) and $340 of bonus pay ($500.00 bonus pay x 68% = $340.00) is apportioned to Classification 2883. The payroll earned on an hourly basis in Classification 9522 is 32% of the payroll for Classifications 2883 and 9522 combined ($264.00 / $824.00 = 32%). Therefore, $48.00 of vacation pay ($150.00 vacation pay x 32% = $48.00) and $160 of bonus pay ($500.00 bonus pay x 32% = $160.00) are apportioned to Classification 9522.