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Standard Classifications and Assignments by Analogy

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Standard Classifications and Assignments by Analogy

August 31, 2016

One of the challenges faced by insurers, agents and brokers is determining the proper classification for a business operation when there is no classification in Part 3 of the California Workers' Compensation Uniform Statistical Reporting Plan–1995 (USRP) that specifically describes the operation. In these situations, the USRP directs that a classification is assigned by analogy. The USRP provides the following instructions at Part 3, Standard Classification System, Section III, General Classification Procedures, Rule 1, Classification Description, in pertinent part:

  1. Any business or operation specifically described by a classification shall be assigned to that classification.
  2. Any business or operation not described by a classification shall be assigned to the classification(s) most analogous from the standpoint of process and hazard...

The USRP contains over 700 classification descriptions, so the first step is to ensure that there is not an existing classification that describes the business. You may use the Classification Search tool on to look up a classification by typing in a keyword or classification code. If there is a classification that specifically describes the business, that classification must be assigned and assignment by analogy to another classification is not permitted.

For example, Classification 2501(1), Clothing Manufacturing, contemplates cutting and sewing of fabric to produce clothing and is often assigned by analogy to employers that cut and sew fabric to produce other non-clothing items. For this reason, Classification 2501(1) is often the first classification that comes to mind for employers engaged in any cutting and sewing operations. However, classifications such as Classification 2576,Awning, Tarp or Canvas Goods Mfg., and Classification 2571, Pillow, Quilt, Comforter or Cushion Mfg., also include cutting and sewing operations and must be assigned to the operation rather than Classification 2501(1) if they more specifically describe the employer's operations.

More Classification Resources

Online Guide to Workers' Compensation – The Standard Classification System

California Workers' Compensation Uniform Statistical Reporting Plan‒1995 

Learning Center: Classification

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