The California Workers’ Compensation Uniform Statistical Reporting Plan—1995 (USRP) at Part 3, Standard Classification System, Section III, General Classification Procedures, Rule 3, Multiple Enterprises, defines multiple enterprises as, “[i]f the employer’s business, conducted at one or more locations, consists of two or more distinct operations that do not normally prevail in the business described by a single classification….” (Emphasis added.) In this e-newsletter, we will review how fee-based operations provided to the public by private vocational schools may constitute Multiple Enterprises based on this definition.

 The operation of private colleges and schools are described by companion classifications 8868, Colleges or Schools – private – not automobile schools – professors, teachers, or academic professional employees, and 9101, Colleges or Schools – private – not automobile schools – all employees other than professors, teachers, or academic professional employees. With regard to the operation of a private college or school, the operations that normally prevail in the business described by the college or school classifications are those that pertain to the provision of instruction and edification to students that are enrolled in educational programs. Such operations are described by Classifications 8868 and 9101. As such, when a private college or school is additionally engaged in operations that do not normally prevail in the provision of instruction and edification to students that are enrolled in educational programs, the school is likely to constitute multiple enterprises based on operating “…two or more distinct operations that do not normally prevail in the business described by a single classification....”

Many vocational schools operate fee-based services for the public, including but not limited to barber colleges that offer fee-based hairstyling, cosmetology schools that offer fee-based services, culinary academies that operate restaurants open to the public, and chiropractic and physical therapy schools that offer fee-based therapeutic services. On this basis, such fee-based services are separately classified from Classifications 8868 and 9101 subject to the provisions of the Multiple Enterprises rule, as these fee-based operations do not normally prevail in the business described by the private school classifications.

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Online Guide to Workers' Compensation: The Standard Classification System