In this edition: Focus on job duties, not just titles, when discerning which employees qualify for assignment to Classification 5606
Effective January 1, 2014, Classification 5606, Contractors – construction or erection, was amended for clarity to include management level employees such as safety managers, project managers and engineers, who are not in the direct chain of command over construction operations but whose duties include walking through a construction site during the construction phase, provided the insured retains two levels of supervision over the construction crew(s) or where all operations have been subcontracted to licensed subcontractors. These amendments, which are included in Classification 5606 shown below, do not represent any change to established classification procedure; rather, the amendments were for clarity only.
CONTRACTORS – construction or erection – executive level supervisors – no direct supervision – division of a single employee's payroll with any other classification is not permitted
This classification may be assigned only in connection with the construction or erection classifications listed in Appendix I, Construction and Erection Classifications, and must be confirmed by specific written approval from the WCIRB.
This classification applies to executive level supervisors as defined in Part 3, Standard Classification System, Section IV, Special Industry Classification Procedures, Rule 2d, Executive Level Supervisors.
This classification also applies to executive level supervisors when all construction operations are subcontracted to licensed contractors and no payroll is developed under any construction classification. In such instances, executive level supervisors exercise control exclusively through licensed subcontractors.
This classification also includes management level employees such as safety managers, project managers and engineers, who do not supervise construction operations but whose duties include walking through a construction site during the construction phase, provided the employer retains two levels of supervision over the construction crew(s) or where all operations have been subcontracted to licensed subcontractors. Otherwise, such employees are miscellaneous employees and shall be classified in accordance with Part 3, Section IV, Rule 2c, Miscellaneous Employees (Construction or Erection).
On jobs where all construction operations are subcontracted to licensed subcontractors, Classification 9015(1), Building Operation – all other employees, shall apply to job site cleanup and warranty repair conducted after construction is completed.
Also refer to Part 3, Section IV, Rule 2, Construction or Erection Work.
While the classification lists examples of management level employees, such as safety managers, project managers and engineers, who may qualify for assignment to Classification 5606, the classification assignment should be based on each employee's actual job duties. Job title alone is not determinative when making a classification assignment. The classification stipulates that it applies when such employees have duties that include walking through a construction site during the construction phase. That is, one of the required and regular duties of the employee is to walk through the construction site for various reasons, such as determining progress or compliance with safety standards and best practices. Not all employees titled as project manager, for example, have duties that require walking through the construction sites. Some project managers that do not have job site duties may have duties that are consistent with those of Clerical Office Employees or Outside Salespersons. The fact that project managers have been listed as an example associated with Classification 5606 does not preclude their assignment to some other classification, such as 8742(1), Salespersons – outside, or 8810(1), Clerical Office Employees, if Classification 5606 is not applicable.
The January 1, 2014 California Workers' Compensation Uniform Statistical Reporting
Plan – 1995, California Workers' Compensation Experience Rating Plan – 1995 and Miscellaneous Regulations for the Recording and Reporting of Data – 1995 are available in the Publications and Filings section of the website. Here you will also find the approved advisory pure premium rates, experience rating eligibility threshold, expected loss rates and credibility values.
View the Manuals and Plans.
The WCIRB has released another module in its Education on Demand series. The new module is called Preparing for the Workers' Compensation Premium Audit and may be viewed by visiting the Learning Center section of www.wcirb.com.