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When Multiple Store Classifications Can Apply

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When Multiple Store Classifications Can Apply

August 23, 2017

In this edition: Special Industry Classification Procedures for Store Classifications - When More Than One Store Classification Can Apply

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, the applicable store classification based on the types of merchandise sold, and when to separately classify certain store employees. This rule is applicable only to the 30 classifications listed in the Stores Industry Group.

The rule begins with the following provision:

6. Stores 

  1. For store operations, the classification shall be separately determined for each type of store that is conducted as a separate operation without interchange of labor.

The WCIRB often receives questions regarding whether an employer's operations qualify for multiple store classifications based on this provision, or whether the operations collectively comprise a single store operation. Essentially, what constitutes a store that is conducted as a separate operation without interchange of labor?

For example, an employer that sells both clothing and housewares to retail customers from a single location constitutes a single store if there are not separate store facilities, or if there is interchange of labor such as common cashiers, salespersons, or employees who perform stocking or inventory management. Stores that sell multiple types of merchandise in this combined manner are assigned to a single store classification based on an analysis of the merchandise sold, applying provisions in Rule 6.

In contrast, consider an employer that sells clothing and housewares to retail customers from two separate store facilities, one selling only clothing and the other selling only housewares. If the stores are at separate locations, the analysis is straightforward. However, if the stores are at a single location, and each store has a separate entrance, separate display and storage areas, and each store has separate staffing, then a separate store facility exists. If an employer operates two separate stores without interchange of labor, each store will be individually classified, even if the stores are at a single location such as a shopping center or mall.

Related Information

Online Guide to Workers' Compensation: The Standard Classification System
WCIRB Education on Demand
Classification Information