January 1, 2021 Regulatory Filing Quick Reference Guide: USRP and ERP Changes

Regulatory Filing Quick Reference Guide September 2021

Summary of Approved Changes to the Insurance Commissioner’s Workers’ Compensation Regulations Published by the WCIRB

This reference guide summarizes the changes to the California Workers’ Compensation Uniform Statistical Reporting Plan—1995 (Uniform Statistical Reporting Plan) and the California Workers’ Compensation Experience Rating Plan—1995 (Experience Rating Plan) approved by the Insurance Commissioner to be effective January 1, 2021. This reference guide was created by the WCIRB as a convenience for its member insurers, agents and brokers, policyholders and others to provide an overview of notable amendments; it does not contain a description of all approved changes to the plans. It is not an official regulation and does not bear the official approval of the California Department of Insurance.

For more details and information on all changes, please view the WCIRB’s January 1, 2021 Regulatory Filing in the Filings and Plans section of the website, or click on the following links to view the actual plans:

Uniform Statistical Reporting Plan

Effective January 1, 2021

Eliminated Classifications

Classification EliminatedClassifications to Which Operations Described by the Eliminated Classification Are Reassigned
2211(1), Cotton Batting, Wadding or Waste Mfg.2222, Spinning, Weaving or Fiber Processing
2211(3), Felting Mfg.2222, Spinning, Weaving or Fiber Processing
2211(4), Wool Combing or Scouring2222, Spinning, Weaving or Fiber Processing

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New Classification

Classification EstablishedPurpose
8871, Clerical Telecommuter Employees – N.O.C.

A Standard Exception classification that applies to Clerical Office Employees who work more than 50 percent of their time at their home or other office space away from any location of their employer.

Clerical Telecommuter Employees are included in, and excluded from, the same classifications that include or exclude Clerical Office Employees.

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Additional Notable Changes to the Uniform Statistical Reporting Plan

Effective January 1, 2021

Part 2, Policy Reporting Requirements, Section I, General Instructions, Section II, Policy Period, and Section III, Additional Electronic Reporting Requirements, were amended to:

  • Remove requirements relating to hard copy submission of policy documents and reflect that policy information must be reported electronically to the WCIRB
  • Remove outdated language regarding continuing form policies
  • Reflect current electronic policy reporting requirements
  • Change policy information reporting timeframes from 60 to 30 days

Part 3, Section IV, Special Industry Classification Procedures, Rule 2, Construction or Erection Work, was amended to clarify the procedures for calculating the regular hourly wage for (1) salaried employees and (2) when the annual minimum remuneration requirements in Section V, Rule 1, Payroll – Remuneration, Subrules j, k, l and m, are applied.

Part 3, Section IV, Rule 4, Farms, was amended to update the definition of “farm” for classification purposes, reorganize and clarify directives, and clarify the rule regarding miscellaneous employees and how they should be classified when both farm and non-farm classifications apply to an employer.

The following classifications were moved to the Farms Industry Group and are subject to the Farms Special Industry Classification Procedures:

  • Classification 0050, Farm Machinery Operation 
  • Classification 0035, Florists
  • Classification 0005, Nurseries

Part 3, Section V, Payroll – Remuneration, Rule 1, Payroll – Remuneration, and Subrule c, Overtime Remuneration, were amended to:

  • Define and incorporate the term “Premium Portion of Overtime Pay”
  • Clarify, without changing, the rules and the definition of Payroll – Remuneration
  • Update the Examples and, where necessary, reference the Department of Industrial Relations’ examples for piecework and commission overtime pay

Classifications 9220(1), Cemetery Operation, and 9220(2), Crematory Operation, were amended to include cemetery plot or mausoleum sales counselors at the cemetery location. 

The following classifications were amended to include meter reading activities:

  • Classification 7539, Electric Power Companies 
  • Classification 7500, Gas Works
  • Classification 7520, Water Companies

Classification 9069, Clubs – gaming, was amended to direct that this classification applies to off-track betting facilities and includes pari-mutuel wagering operations provided to horse racing tracks and other horse race betting venues on a contract basis, and Classification 9016(1), Amusement or Recreational Facilities, was amended to remove the footnote assigning pari-mutuel employees to Classification 8810, Clerical Office Employees, as pari-mutuel employees employed by racetrack operators are assignable to 9016(1).

The Back Wages/Back Pay entry in Appendix II, Payroll Remuneration Table, was amended to clarify that back pay consists of amounts paid or awarded to employees where the employer corrects or is ordered to make up the difference between what the employee was paid and the amount the employee should have been paid.

There were no changes to the payroll minimum and payroll maximum amounts for Executive Officers, Partners, Individual Employers and Members of a Limited Liability Company. 

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Experience Rating Plan

Effective January 1, 2021

Section III, Eligibility and Experience Period, Rule 1, Eligibility Requirements for California Workers’ Compensation Insurance, was amended to adjust the eligibility threshold from $9,700 to $9,900 to reflect wage inflation and the proposed January 1, 2021 expected loss rates.

Table I, Expected Loss Rates and D-Ratios, and Table II, Primary Thresholds, were amended to reflect the most current data available.

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