The WCIRB performed a comprehensive study of the classifications included in the Salvage Material Dealers Industry Group. This study found that the salvage, disposal and recycling industries have converged and the Industry Group was renamed to the Recycling and Refuse Management Industry Group.
In addition, several classifications were amended and the WCIRB proposed a new Classification 9424(2), Recycled Material Dealers, to apply to employers that purchase, sort or consolidate recovered recyclable materials for resale. These amendments and this new classification were adopted by the Insurance Commissioner and are effective January 1, 2019.
As a N.O.C. (not otherwise classified) Classification, 9424(2) applies to recycled material dealers that are not more specifically described by another classification. Classification 9424(2) states that it applies to fixed locations (not mobile) where employers collect, purchase, sort or consolidate recovered recyclable materials for resale, including but not limited to glass, plastic, paper, cardboard, corrugated stock and rubber, and where the sale of ferrous or nonferrous scrap metal does not equal or exceed 25% of gross receipts.
Dealers of ferrous or nonferrous scrap metal, including salvaged or recycled material dealers where the sale of scrap metal equals or exceeds 25% of gross receipts, shall be classified as 8500, Metal Scrap Dealers.
The employers assignable to Classification 9424(2) were previously assigned to Classifications 8264(1), Paper Stock Dealers – secondhand, 8264(2), Bottle Dealers, 8264(3), Rubber Stock Dealers or 8265(2), Junk Dealers; these classifications have been eliminated. The study found that there was significant overlap in the types of recycled materials handled by many employers in the Recycling and Refuse Management industry, and that consolidation to a single classification is supported based on the operations performed by these employers. Classification 9424(2) is an alternate phraseology to Classification 9424(1), Garbage or Refuse Landfill, Transfer Station and Material Recovery Facility Operations.