2020 Changes Quick Reference
2020 Changes Quick Reference
Table of Contents
Uniform Statistical Reporting Plan
- Payroll Minimum and Maximum Changes
- Construction Dual Wage Threshold Changes
Summary of Approved Changes to the Insurance Commissioner’s Workers’ Compensation Regulations Published by the WCIRB
This reference guide summarizes the changes to the California Workers’ Compensation Uniform Statistical Reporting Plan—1995 (Uniform Statistical Reporting Plan), the California Workers’ Compensation Experience Rating Plan—1995 (Experience Rating Plan) and the Miscellaneous Regulations for the Recording and Reporting of Data—1995 (Miscellaneous Regulations) approved by the Insurance Commissioner to be effective January 1, 2020. This reference guide was created by the WCIRB as a convenience for its member insurers, agents and brokers, policyholders and others to provide an overview of notable amendments; 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.
For more details and information on all changes, please view the WCIRB’s January 1, 2020, Regulatory Filing in the Filings and Plans section of the website, or click on the following links to view the actual plans:
Payroll Minimum and Maximum Changes
| Code | Phraseology | Payroll Minimum |
Payroll Maximum |
|---|---|---|---|
| 7365 | Taxicab Operations | $38,400 | N/A |
| 7607(1) | Video Post-Production | N/A | $139,100 |
| 7607(2) | Audio Post-Production | N/A | $139,100 |
| 7610 | Radio, Television or Commercial Broadcasting Stations | N/A | $139,100 |
| 8743 | Mortgage Brokers | N/A | $139,100 |
| 8803 | Auditing, Accounting or Management Consulting Services | N/A | $139,100 |
| 8820 | Law Firms | N/A | $139,100 |
| 8859(1) | Computer Programming or Software Development | N/A | $139,100 |
| 8859(2) | Internet or Web-Based Application Development or Operation | N/A | $139,100 |
| 9151 | Theaters – musical entertainment | N/A | $139,100 |
| 9156 | Theaters – dance, opera or theater companies | N/A | $139,100 |
| 9181 | Athletic Teams or Athletic Facilities – players, umpires, referees and game officials | N/A | $139,100 |
| 9610 | Motion Pictures – production | N/A | $139,100 |
| N/A | Executive Officers, Partners, Individual Employers and Members of a Limited Liability Company | $54,600 | $139,100 |
Please refer to the specific classification description of each classification code/phraseology listed above for information concerning the application and proration of payroll limitations to specific employees; information varies by classification.
Construction Dual Wage Threshold Changes
| Code | Phraseology | 2019 Threshold |
2020 Threshold |
|---|---|---|---|
| 5027/5028 | Masonry | $27.00 | $28.00 |
| 5183/5187 | Plumbing/Heating/Refrigeration | $26.00 | $28.00 |
| 5185/5186 | Automatic Sprinkler Installation | $27.00 | $29.00 |
| 5201/5205 | Concrete or Cement Work | $25.00 | $28.00 |
| 5403/5432 | Carpentry | $32.00 | $35.00 |
| 5446/5447 | Wallboard Application | $34.00 | $36.00 |
| 5467/5470 | Glaziers | $32.00 | $33.00 |
| 5474/5482 | Painting/Waterproofing | $26.00 | $28.00 |
| 5484/5485 | Plastering or Stucco Work | $29.00 | $32.00 |
| 5552/5553 | Roofing | $25.00 | $27.00 |
| 5632/5633 | Steel Framing | $32.00 | $35.00 |
| 6218/6220 | Excavation/Grading/Land Leveling | $31.00 | $34.00 |
| 6307/6308 | Sewer Construction | $31.00 | $34.00 |
| 6315/6316 | Water/Gas Mains | $31.00 | $34.00 |
| Classification Eliminated | Classifications to Which Operations Described by the Eliminated Classification Are Reassigned |
|---|---|
| 0400(1), Cotton Merchants | 0400, Warehouses – cotton – including cotton compressing |
| 2150, Ice Mfg. or Ice Dealers | 2063, Dairy Products or Ice Mfg. |
| 9050(2), Motels | 9050, Hotels, Motels or Short-Term Residential Housing |
| 8111(2), Oil or Gas Well Supplies or Equipment Dealers | 8010, Stores – hardware, electrical or plumbing supplies, or 8107, Machinery and Equipment Dealers – N.O.C., or 8267, Machinery and Equipment Dealers – secondhand, or 8232(2), Building Material Dealers |
| 8111(1), Plumbers’ Supplies Dealers | 8010, Stores – hardware, electrical or plumbing supplies |
| 9507(2), Sign Mfg. – quick sign shops | 9507, Sign Painting or Lettering and Quick Sign Shops |
| 8017(7), Stores – hardware | 8010, Stores – hardware, electrical or plumbing supplies, or 8107, Machinery and Equipment Dealers – N.O.C., or 8116, Farm Machinery Dealers or Repair Facilities, or 8057, Boat Dealers |
| Classification Established | Purpose |
|---|---|
| 8010, Stores – hardware, electrical or plumbing supplies | Applies to the sale of hardware, electrical and plumbing supplies to wholesale and retail customers. Part of the Stores Industry Group. |
Additional Notable Changes to the Uniform Statistical Reporting Plan
Effective January 1, 2020
Part 3, Section IV, Special Industry Classification Procedures, Rule 7, Wrecking or Demolition and Building Raising or Moving, was amended to clarify the procedures for determining the applicable classification for soft demolition operations and for the assignment of the following classifications:
- 5606, Contractors – construction or erection – executive level supervisors
- 5610, Contractors – construction or erection – all construction subcontracted
- 8227, Construction or Erection Permanent Yards or Shops
Part 3, Section VI, Administration of Classification System, Rule 4, Audit of Payroll, was amended to decrease the physical audit threshold from $13,000 to $10,500.
Classification 2142(1), Wineries, which is part of the Food Packaging and Processing Industry Group, was amended to direct that it applies to the production of alcoholic cider; and Classification 8060, Stores – wine, beer or spirits, which is part of the Stores Industry Group, was amended to apply to tasting rooms in connection with alcoholic cider production.
Classification 9050, Hotels, Motels or Short-Term Residential Housing, was amended to apply to hotels, motels and short-term rental housing operations where 25 percent or more of the housing units are rented for 30 consecutive days or less, including but not limited to vacation rentals and timeshare properties.
Classification 3682, Instrument Mfg. – non-electronic, was amended to specify the classification procedures for employers that design proprietary non-electronic instruments and subcontract the manufacturing operations.
The following Aircraft Operation Industry Group classifications were amended to remove the footnote assigning ticket sellers and information clerks to Classification 8810, Clerical Office Employees, specify that they include gate and ticket counter personnel at airports and clarify the definition of ground operations:
- Classification 7428(2), Aircraft Operation – flight schools and pilot training – not members of the flying crew
- Classification 7428(1), Aircraft Operation – other than agricultural or scheduled air carriers – not members of the flying crew
- Classification 7403, Aircraft Operation – scheduled passenger or cargo air carriers – not members of the flying crew
- Classification 7429, Airport Operators
Individual employees’ annual payroll will be subject to the USRP annual payroll maximum in the classifications listed below and prorated based upon the number of weeks in the policy period when the policy is in force for less than a 12-month period.
- 7607(1), Video Post-Production
- 7607(2), Audio Post-Production
- 8743, Mortgage Brokers
- 8803, Auditing, Accounting or Management Consulting Services
- 8820, Law Firms
- 8859(1), Computer Programming or Software Development
- 8859(2), Internet or Web-Based Application Development or Operation
The following classifications were amended to include display and parts departments:
- Classification 8057, Boat Dealers
- Classification 8116, Farm Machinery Dealers or Repair Facilities
- Classification 8107, Machinery and Equipment Dealers
The following classifications were amended to include delivery and provide direction as to how related store operations should be classified:
- Classification 8232(2), Building Material Dealers
- Classification 8232(1), Lumberyards
Appendix I was amended to remove Classification 3365, Welding or Cutting, as a Construction or Erection classification.
Notable Changes to the Experience Rating Plan
Effective January 1, 2020
Section III, Eligibility and Experience Period, Rule 1, Eligibility Requirements for California Workers’ Compensation Insurance, was amended to adjust the eligibility threshold from $10,000 to $9,700 to reflect wage inflation and the proposed January 1, 2020 expected loss rates.
Table I, Expected Loss Rates and D-Ratios, was amended to reflect the most current data available.
Notable Changes to the Miscellaneous Regulations
Effective January 1, 2020
Part 3, Group Workers’ Compensation Insurance, Section II, Procedure for Obtaining Approval of Group Workers’ Compensation Insurance, was amended to remove the non-statutorily required insurer submissions for group insurance policies and for clarity.