Each year the WCIRB reviews certain California industries and as part of its regulatory filing may propose adding or eliminating classifications to keep the Standard Classification System relevant by reflecting current industry practices. This year, one of the new classifications established is Classification 5610, Contractors – construction or erection – all construction subcontracted, which is shown below:
|CONTRACTORS – construction or erection – all construction subcontracted – all other employees
This classification applies to all employees other than executive level supervisors on jobs where the employer subcontracts all operations to licensed subcontractors. This classification applies to operations, including but not limited to job site cleaning and debris removal and post-construction warranty repair operations. Otherwise, such employees are miscellaneous employees and shall be classified in accordance with Part 3, Section IV, Rule 2c, Miscellaneous Employees (Construction or Erection).
Employers that perform construction job site cleaning for other concerns on a fee basis shall be classified as 9008, Janitorial Services – by contractors.
Classification 5610 applies to all employees other than executive level supervisors on jobs where the employer subcontracts all operations to licensed subcontractors. Prior to establishing Classification 5610, operations such as job site cleaning, debris removal and post-construction warranty repair (on jobs where the employer subcontracts all operations to licensed subcontractors) were classified as 9015(1), Building Operation – all other employees, based on a footnote to Classification 5606, Contractors – construction or erection – executive level supervisors. Because Classification 9015(1) is listed in the Property Management/Operation Industry Group, these construction industry cleaning and repair operations had long been considered analogous or similar to operations performed in the property management industry.
The WCIRB performed a comprehensive study of the Property Management/Operation Industry Group classifications and one of the issues reviewed was the assignment of Classification 9015(1) to operations in the construction industry. The study found that these construction industry operations developed sufficient data to establish a new, construction industry classification. As a result of the study, Classification 5610 was established and Classification 5606 was amended to provide direction as to when Classification 5610 is applicable.
The WCIRB is in the process of updating the Classification Search tool on WCIRB.com to include classification phraseology changes and pure premium rate information approved by the Insurance Commissioner effective January 1, 2017. Watch for announcements through this Classification and Test Insight e-Newsletter, WCIRB.com and the WCIRB’s Twitter and Facebook pages to be notified once the full Classification Search update has been completed.
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