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EXCERPT

California Workers’ Compensation Uniform Statistical Reporting Plan—1995
Effective January 1, 2020

Part 3, Standard Classification System, Section IV, Special Industry Classification Procedures, Rule 6, Stores


 

  1. 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.
       
    2. The applicable store classification is determined based upon the type of merchandise sold, leased, consigned or auctioned and whether the operations are wholesale or retail. In the absence of specific instructions found in the classification phraseology or footnote, the following definitions apply when determining the applicable store classification.

      (1)   Type of Merchandise Sold

      If a store sells more than one type of merchandise, each of which may be subject to a different classification, the store classification shall be determined based on the highest rated category of merchandise sold, provided that category exceeds twenty-five percent (25%) of gross receipts. If a store sells lottery tickets authorized by the California State Lottery, only that portion of the sales proceeds identified by the California State Lottery as commission shall be included in determining gross receipts.

      Examples

      Assumptions:

      Classification 8008, Stores – clothing, shoes, linens or fabric products – retail, carries a hypothetical pure premium rate of $6.00.

      Classification 8013(1), Stores – jewelry – wholesale or retail, carries a hypothetical pure premium rate of $4.00.

      The employer operates a store engaged in the sale of clothing (50%) and jewelry (50%). The store has a single entrance/exit. A department is maintained wherein employees exclusively engage in the sale of jewelry. However, in view of the common entrance/exit, the jewelry sales and clothing sales are performed as departments within a single store, not as two individual stores, and therefore all operations are assigned to Classification 8008, Stores – clothing, shoes, linens or fabric products – retail.

      At a shopping mall (single location), the employer operates two stores: a clothing store and a jewelry store. The stores are operated from separate suites in the mall, each with its own entrances/exits. Employees do not interchange between store operations. Customers cannot move merchandise from one store to the other to make a purchase. Since each store is operated independently and without interchange of labor, separate classifications are assigned to the clothing store and the jewelry store.

      (2)   Wholesale vs. Retail

      For purposes of classifying stores, the term wholesale is defined as the selling of merchandise to the following:

      (a) Retailers;
      (b) Manufacturers, builders, or contractors;
      (c) Industrial, agricultural, commercial, governmental, institutional, or professional users;
      (d) Other wholesalers; or
      (e) Firms acting as agents in buying merchandise for or selling merchandise to such persons or companies as those previously listed.

      For purposes of classifying stores, the term retail is defined as the selling of merchandise to the general public for personal or household consumption or use. Warehouse operations incidental to the retail operations of the employer shall be assigned to the retail classifications.

      A store that sells merchandise on both a wholesale and a retail basis shall be assigned to the appropriate store classification, depending upon whether the gross receipts are primarily (more than 50%) from wholesale or retail sales.

      Salespersons who sell exclusively from samples to buyers for stores (no direct sales) in a salesroom or showroom location where no actual inventory (exclusive of showroom samples) is maintained, and who have no other duties of any kind in the service of the employer except clerical work or as outside salespersons, shall be classified as 8742, Salespersons – Outside.

    3. The incidental assembly and preparation of purchased merchandise for display or sale shall be assigned to the store classification.

      Examples

      Furniture stores may receive pre-manufactured components of a dining table and assemble the table for display and sale. These operations shall be classified as 8015, Stores – furniture.

      Jewelry stores may receive ring settings and gemstones and as purchases are made, jewelers will set and secure the gemstone selected by the customer. These operations shall be classified as 8013(1), Stores – jewelry.

    4. If a store maintains a department for the repair of items sold, the repair operations shall be classified in accordance with the following:

      (1) If more than 50% of the repair jobs are for warranty repair for which no fee is charged to the customer, the repair operations are incidental to the store and the appropriate store classification shall be assigned in accordance with the Single Enterprise rule. See Section III, Rule 2, Single Enterprise.
      (2) If 50% or more of the repair jobs are fee repair jobs, the store and repair department constitute Multiple Enterprises. Assign the repair operations in accordance with the Multiple Enterprises rule to either the appropriate repair or manufacturing classification or the appropriate store classification. See Section III, Rule 3, Multiple Enterprises.

      Warranty repair work is defined as repair work for which no fee is charged to the customer. Repair work covered under a service contract or an extended warranty contract that was purchased by the customer is not considered to be warranty work.

    5. If a store maintains a department for the preparation and sale of hot foods, such operations shall be classified as 9079(1), Restaurants or Taverns. The payroll of employees that interchange between store operations and the department engaged in the preparation and sale of hot foods shall be assigned in accordance with Section V, Rule 3, Division of Single Employee’s Payroll.

    6. Employers that engage in mobile food vending for the retail sale of packaged and cold foods and beverages from food trucks, trailers, carts or temporary booths including the incidental storage of such merchandise, shall be classified as 8017(1), Stores – retail, 8078(1), Sandwich Shops, 8078(2), Beverage Preparation Shops, or 8078(3), Ice Cream or Frozen Yogurt Shops, depending on the products sold. The operation of mobile food trucks, trailers, carts or temporary booths wherein hot food is prepared for sale to customers shall be classified as 9079(1), Restaurants or Taverns.

    7. If a store maintains a department for the service or repair of automobiles or trucks on a fee basis, the payroll of employees engaged in such service and repair operations shall be assigned to the applicable automobile or truck service or repair classification.

    8. If a store engages in the sale of gasoline or automobile services, the appropriate store classification shall apply at each location wherein the sale of merchandise in the store, other than gasoline or automobile services, exceeds twenty-five percent (25%) of the total annual receipts for the location. Employees engaged in the fueling, service or repair of automobiles or trucks shall be assigned to the applicable gasoline station classification. Cashiers who work within the store and accept payments for store merchandise and automobile services shall be assigned to the applicable store classification.

      Examples

      An employer operates a combination convenience store and retail gasoline station with 30% of gross receipts developed in the sale of store merchandise. The store occupies 3,000 square feet and is open 24 hours per day. All gasoline sales are controlled from inside the store. The operations of this employer are assignable to Classification 8061, Stores – convenience – retail.

      At a second location, the employer operates a similar store; however, only 20% of the gross receipts are developed in the sale of store merchandise. The operations of this employer are assignable to Classification 8324, Gasoline Stations – retail.

      Also at this second location, the employer opens a service bay to perform automobile oil changes and smog checks in addition to gasoline and store sales. The operations at this location are now assignable to Classification 8387(1), Automobile or Truck Gasoline Service Stations, due to the automobile service operations provided.