The previous edition of the Classification and Test Audit Insight e-newsletter explained that 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.
When there is no classification in Part 3 of the California Workers' Compensation Uniform Statistical Reporting Plan—1995 (USRP) that specifically describes an operation, the USRP directs that we assign the classification(s) most analogous from the standpoint of process and hazard. In other words, we are trying to find the best fit using the available classifications.
The USRP provides specific instructions for determining analogous assignments for manufacturers, stores, service providers, construction firms, and agricultural operations. Part 3, Standard Classification System, Section III, General Classification Procedures, Rule 1b of the USRP states in pertinent part:
- When classifying the operations of a manufacturer, consideration should be given to the industry type, finished goods, raw materials, types of tools and equipment, how employees use the materials, tools and equipment in the manufacturing process, and any other relevant factors.
When a specific assembly classification does not exist for a certain product, the assembly of such product shall be assigned to the most analogous manufacturing classification. (See Section II, Classification Terminology, for the definitions of "Assembly or Assembling" and "Manufacturing or Mfg.")
- When classifying the operations of a store, consideration should be given to the types of products sold, who purchases the products, how the products are sold, and any other relevant factors.
- When classifying an employer that provides service(s), consideration should be given to the type(s) of service(s) provided, who contracts for the service(s), where the service(s) are provided, how employees perform the service(s), the raw materials or instrumentalities used to perform the service(s), and any other relevant factors.
- When classifying an employer that performs construction or erection operations, consideration should be given to the types of structures constructed or erected, the raw materials and types of tools and equipment used, how employees use the materials, tools and equipment, the type of contractor’s license required to perform such tasks, and any other relevant factors.
- When classifying an employer that performs agricultural operations, consideration should be given to the types of crops cultivated and animals raised, the method of cultivating and harvesting crops, the method of caring for animals, the types of machinery, tools and equipment used, how employees use the machinery, tools and equipment, and any other relevant factors.
|
The factors listed above help to identify the classification(s) most analogous from the standpoint of process and hazard. As previously noted, 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.
More Classification Resources
California Workers' Compensation Uniform Statistical Reporting Plan‒1995
Classification Search
