Table of Contents
- Payroll Minimum and Maximum Changes
- Construction Dual Wage Threshold Changes
- Eliminated Classifications
- New Classifications
- Additional Notable Changes
This reference guide summarizes the changes to the California Workers’ Compensation Uniform Statistical Reporting Plan—1995 (Uniform Statistical Reporting Plan) and the California Workers’ Compensation Experience Rating Plan—1995 (Experience Rating Plan) approved by the Insurance Commissioner to be effective January 1, 2019 and January 1, 2020. This reference guide was created by the WCIRB as a convenience for its members, agents and brokers, policyholders and others to provide an overview of notable amendments, but it does not contain a description of all approved changes to the Plans. It is not an official regulation and does not bear the official approval of the California Department of Insurance.
|7610*||Radio, Television or Commercial Broadcasting Stations||N/A||$133,900|
|9151*||Theaters – musical entertainment||N/A||$133,900|
|9156*||Theaters – dance, opera and theater companies||N/A||$133,900|
|9181*||Athletic Teams or Athletic Facilities – players, umpires, referees and game officials||N/A||$133,900|
|9610*||Motion Pictures – production||N/A||$133,900|
|8039||Stores – department stores – retail||$1,100,000||N/A|
|N/A||Executive Officers, Partners, Individual Employers and Members of a Limited Liability Company||$52,000||$133,900|
* Please refer to each classification phraseology for information concerning the application of payroll limitations to specific employees.
|Classification Eliminated||Operations described by the eliminated classification reassigned to|
|4922, Magnetic Tape Mfg.||4250(1), Paper Coating or Laminating|
|7606, Cable or Satellite Television Companies||7600, Communication Service Providers|
|8264(1), Paper Stock Dealers||9403(3), Document Destruction, or
9424(2), Recycled Material Dealers
|8264(2), Bottle Dealers||9424(2), Recycled Material Dealers|
|8264(3), Rubber Stock Dealers||9424(2), Recycled Material Dealers|
|8264(4), Wiping Cloth or Rag Dealers||8032, Stores – clothing, shoes, linens or fabric products – wholesale|
|8265(1), Iron or Steel Scrap Dealers||8500, Metal Scrap Dealers|
|8265(2), Junk Dealers||9424(2), Recycled Material Dealers|
|9403(3), Document Destruction – including mobile paper shredding||As part of the new Recycling and Refuse Management Industry Group to apply to employers that conduct mobile paper shredding and document destruction|
|9424(2), Recycled Material Dealers – N.O.C.||As part of the new Recycling and Refuse Management Industry Group to apply to employers that purchase, sort or consolidate recovered recyclable materials for resale|
Part 3, Section IV, Special Industry Classification Procedures, Rule 2, Construction or Erection Work, was amended to establish Subrule f to provide direction as to how to classify shop, yard or storage operations when performed in connection with construction or erection operations that are assigned to two or more classifications, one or more of which includes shop, yard or storage operations and one or more of which does not include shop, yard or storage operations.
Part 3, Section V, Payroll – Remuneration, Rule 1, Payroll – Remuneration, and Appendix II, Payroll/Remuneration Table, were amended to provide clear and uniform rules regarding the reporting of equity-based compensation as remuneration, including:
In addition to the new and eliminated classifications noted above, the following amendments were made to the Salvage Material Dealers Industry Group:
The classifications for brewery, winery and distillery employers in the Food Packaging and Processing Industry Group were amended, including:
Part 4, Section II, Definitions, was amended to add the definition of Net Incurred (Loss) for consistency with changes to the Experience Rating Plan.
Part 4, Section IV, Exposure Information, Rule 4, Exposure Amount, was amended to clarify the reporting of estimated exposure when a surcharge pursuant to California Insurance Code Section 11760.1 has been applied.
Part 4, Section V, Loss Information, Rule A, General Loss Reporting Instructions, Subrule 3, Supplemental Claim Information, was amended to eliminate the requirement to report Weekly Wage Amount for joint coverage, partially fraudulent or subrogated medical-only claims, and Rule C, Special Loss Reporting Instructions, Subrule 7, Compromised Death or “S” Claims, was amended for consistency with changes made to the Experience Rating Plan.
Individual employees’ annual payroll developed in the classifications listed below will be subject to the USRP annual payroll limitation. The WCIRB will propose adjusted advisory pure premium rates and classification expected loss rates in the January 1, 2020, Pure Premium Rate and Regulatory Filings to reflect the estimated reduction in reported exposure in each classification resulting from the application of the limitation.
Section I, General Provisions, Rule 7, Rating Forms, was amended to incorporate the requirements regarding data displayed on the Experience Rating Form from Section VI, Tabulation of Experience, Rule 2, Experience Rating Forms, as that rule was eliminated.
Section III, Eligibility and Experience Period, Rule 1, Eligibility Requirements for California Workers’ Compensation Insurance, was amended to adjust the eligibility threshold from $10,300 to $10,000 to reflect wage inflation and the proposed January 1, 2019 expected loss rates.
Section III, Eligibility and Experience Period, Rule 3, Experience to be Used for Rating California Workers’ Compensation Insurance Risks, was amended to incorporate the requirements regarding what data is used in experience rating from Section VI, Tabulation of Experience, Rule 1, Data Used for Experience Rating, as that rule was eliminated.
Section VI, Tabulation of Experience, was combined for clarity with Section VII, Rating Procedure into a single section, Section VI, Rating Procedure, and amended to require that the first $250 of each claim not be included in the experience rating calculation and to simplify the experience modification formula.
Table I, Expected Loss Rates and D-Ratios, was amended to reflect the most current data available.
Table II, Primary Thresholds, was amended to remove the references to credibilities for consistency with changes to the Experience Modification Formula and to reflect the most current data available.
Experience Rating Form – California, was amended for consistency with the Experience Modification Formula.