WSR 15-07-072
PROPOSED RULES
DEPARTMENT OF
LABOR AND INDUSTRIES
[Filed March 17, 2015, 8:38 a.m.]
Original Notice.
Preproposal statement of inquiry was filed as WSR 15-03-081.
Title of Rule and Other Identifying Information: Chapter 296-17 WAC, General reporting rules, audit and recordkeeping, rates and rating system for Washington workers' compensation insurance and chapter 296-17A WAC, Classifications for Washington workers' compensation insurance.
Hearing Location(s): Labor and Industries Building, Room S119, 7273 Linderson Way S.W., Tumwater, WA 98501, on April 21, 2015, at 10:00 a.m.
Date of Intended Adoption: May 19, 2015.
Submit Written Comments to: Jo Anne Attwood, P.O. Box 44148, Olympia, WA 98504-4148, e-mail JoAnne.Attwood@lni.wa.gov, fax (360) 902-4799, by April 21, 2015, 5:00 p.m.
Assistance for Persons with Disabilities: Contact office of information and assistance by April 17, 2015, TTY (360) 902-5797.
Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules:
WAC
Numbers
WAC
Description
What is Changing
Reason for Change
296-17-31014
Farming and agriculture
Add definition of a farm labor contractor to the agricultural reporting rules.
Classification and reporting rules refer to "farm labor contractor," yet no definition existed in the rules. The definition is taken from the farm labor contracting rules in WAC 296-310-010.
296-17A-3415
Factory built housing dealers
Spelling out that 3415 (factory built housing dealers) includes delivery to a customer from the dealer.
We have always included this kind of delivery in 3415, but confusion existed because it was not spelled out in 3415. 0517 (set up of factory built housing units performed by a contractor) implied 3415 includes this delivery.
296-17A-6207-04
Fireworks exhibition
Correct reference in text from 4601 (Fireworks manufacturing) to 3701 (Chemical mixing, blending and repackaging only: Fireworks manufacturing).
Exclusion currently points to 4601, which was repealed in 2010. 3701 is the correct classification.
296-17A-6303-03
Insurance sales personnel and claims adjusters
Remove "voluntary" from "to elect voluntary coverage" to read "to elect coverage."
Confusion could exist around whether the rule referred to volunteer coverage. The coverage being elected is not volunteer coverage.
The department intends to review these chapters and make revisions to:
Correct typographical and other errors (such as invalid telephone numbers and out-of-date references),
Revise wording and formatting to make the rules easier to understand and apply, and
Incorporate and formalize existing agency practices (such as expressly including in a risk classification employment that the department currently includes by interpretation or analogy).
The purpose of this rule making is not to make substantive changes to how the department classifies employment, but to review and revise the classification plan to ensure it is clear and understandable. These changes will not change the way we calculate employer rates, our reporting requirements, or how we classify businesses.
As part of this rule making, the department also intends to review these chapters as required by SSB 5679 (chapter 30, Laws of 2013 2nd sp. sess.) to make changes where possible to reduce the regulatory burden on employers insured with the state fund.
Statutory Authority for Adoption: RCW 51.04.020 and 51.16.035.
Statute Being Implemented: RCW 51.16.035.
Rule is not necessitated by federal law, federal or state court decision.
Name of Proponent: [Department of labor and industries], governmental.
Name of Agency Personnel Responsible for Drafting: Jo Anne Attwood, Tumwater, Washington, (360) 902-4777; Implementation: Mike Ratko, Tumwater, Washington, (360) 902-6369; and Enforcement: Victoria Kennedy, Tumwater, Washington, (360) 902-4997.
No small business economic impact statement has been prepared under chapter 19.85 RCW. The agency is exempt from conducting a small business economic impact statement since the proposed rules set or adjust fees or rates pursuant to legislative standards described in RCW 34.05.310 (4)(f) and do not change current coverage options for employers and workers.
A cost-benefit analysis is not required under RCW 34.05.328. Since the proposed rules do not change any existing coverage options for employers or workers and adjust fees pursuant to legislative standards, they are exempted by RCW 34.05.328 (5)(b)(vi) from the requirement for a cost-benefit analysis.
March 17, 2015
Joel Sacks
Director
AMENDATORY SECTION (Amending WSR 14-18-079, filed 9/3/14, effective 10/4/14)
WAC 296-17-31014 Farming and agriculture.
(1) Does this same classification approach apply to farming or agricultural operations?
Yes, but it may not appear so without further explanation. We classify farming and agricultural operations by type of crop or livestock raised. This is done because each type of grower will use different processes and grow or raise multiple crops and livestock which have different levels of hazards. It is common for farmers and ranchers to have several basic classifications assigned to their account covering various types of crops or livestock. If you fail to keep the records required in the auditing recordkeeping section of chapter 296-17 WAC, and we discover this, we will assign all worker hours for which records were not maintained to the highest rated classification applicable to the work performed.
(2) I am involved in diversified farming and have several basic classifications assigned to my business. Can I have one classification assigned to my account to cover the different types of farming I am involved in?
Yes, your account manager can assist you in determining the single classification that will apply to your business. The name and phone number of your account manager can be found on your quarterly premium report or your annual rate notice. For your convenience you can call us at 360-902-4817 and we will put you in contact with your assigned account manager.
(3) How do you determine what single farming classification will be assigned to my business?
The approach used to assign a single classification to a farming business is much the same as we use for construction or erection contractors. To do this, we will need a break down of exposure (estimate of hours to be worked by your employees) by type of crop or livestock being cared for (classification). This information will be used to estimate the premium which would be paid using multiple classifications. The total premium is then divided by the total estimated hours to produce an average rate per hour. We will select the classification assigned to your business which carries the hourly premium rate which is the closest to the average rate that we produced from the estimated hours. Classification 4806 is not to be assigned to any grower as the single farming classification.
(4) How will I know what single farming classification you have assigned to my business?
We will send you a written notice of the basic classification that will apply to your business.
(5) If I requested a single classification for my farming operation can I change my mind and use multiple classifications?
Yes, but you will need to call your account manager to verify the applicable classifications.
The name and phone number of your account manager can be found on your quarterly premium report or your annual rate notice. For your convenience you can call us at 360-902-4817 and we will put you in contact with your assigned account manager.
(6) What is a farm labor contractor?
A farm labor contractor is a specialty contractor who supplies laborers to a farm operation for specified services such as weeding, planting, irrigating, and fertilizing. Generally, work involves manual labor tasks as opposed to machine operations.
(7) I am a farm labor contractor. How is my business classified?
If you are a farm labor contractor we will assign the basic classification that applies to the type of crop being grown, or livestock being cared for. If you contract to supply both machine operators and machinery on a project, all operations are to be assigned to classification 4808.
(((7))) (8) Farm internship pilot program. Who may participate in the farm internship pilot program created by the department as a result of Title 49 RCW, effective June 12, 2014?
Small farms with annual sales of less than two hundred fifty thousand dollars per year located in San Juan, Skagit, King, Whatcom, Kitsap, Pierce, Jefferson, Spokane, Yakima, Chelan, Grant, Island, Snohomish, Kittitas, Lincoln, and Thurston counties that receive a special certification from the department may have farm interns. Employers who qualify may report no more than three farm interns. Farm internship program risk classifications are: WAC 296-17A-4814, 296-17A-4815, and 296-17A-4816.
AMENDATORY SECTION (Amending WSR 07-01-014, filed 12/8/06, effective 12/8/06)
WAC 296-17A-3415 Classification 3415.
3415-00 Factory built housing dealers
Applies to establishments engaged in the sales and service of factory built housing units such as mobile/manufactured homes or modular homes. Work contemplated by this classification includes:
• Pick up of units from housing factory((,));
• Delivery of the unit to a sales location or customer's site;
• Set up of units at sales lot or customer locations((,));
• Installation of skirting((,));
• Aligning cabinets and doors((,)); and
• Touch up painting when performed by employees of an employer subject to this classification.
This classification also includes:
• Parts department employees((,));
• Sales employees who assist in duties described in this classification((,)); and
• Lot employees engaged in the maintenance of grounds or in the maintenance of factory built home units on display at the lot.
This classification excludes ((delivery of)):
• Contractors who deliver and set up factory built home units ((and set up by contractor which is to be reported separately in classification)) which are classified in 0517;
• Employees involved in work such as, but not limited to, concrete work, electrical, plumbing, landscaping, and fence construction who are to be reported separately in the construction classification applicable to the work they are performing; and
• Modular or mobile home sales personnel who, if all the conditions of the Exception classifications, WAC 296-17-31018 are met, may be reported separately in classification 6301 ((provided all the conditions of the general reporting rule covering standard exception employees have been met)).
((Special note:)) Construction of separate out-buildings such as garages, carports, well houses and storage sheds ((which may be constructed in connection with a modular or mobile set up are excluded from this classification and)), which are to be reported separately in the applicable construction classifications.
Establishments engaged exclusively in the delivery of modular or mobile homes, ((but who)) which are not involved in any aspect of the set-up of the structure, are to be reported separately in classification 1102.
AMENDATORY SECTION (Amending WSR 14-17-085, filed 8/19/14, effective 9/19/14)
WAC 296-17A-6207 Classification 6207.
6207-00 Carnivals - Traveling
Applies to those employees of an employer engaged in operating traveling carnivals, who are drivers and/or engaged in the set up and/or tear down of mechanical and nonmechanical amusement rides, and any temporary structure associated with a traveling carnival such as, but not limited to, game, food, or souvenir concession booths, mobile offices, aid rooms or ticket booths.
This classification excludes clerical office employees who are assigned to a permanent office location with no outside duties who may be reported separately in classification 4904 provided all the conditions of the general reporting rules covering standard exception employees have been met; clerical employees who travel with the carnival or with ride operators and who work out of a mobile office, ride operators, game attendants, ticket sellers/takers and personnel involved in the care, custody, and maintenance of carnival facilities who are to be reported separately in classification 6208; establishments engaged in operating mechanical or nonmechanical rides at a permanent location which are to be reported separately in classification 6208; and establishments engaged in operating video or amusement game arcades at a permanent location, not within or operated in connection with an amusement park, which are to be reported separately in classification 6406.
Special note: Permanent shop employees, and those employees assigned to the shop during the winter quartering period may be reported separately in classification 5206 provided the conditions set forth in WAC 296-17-31018 have been met.
6207-01 Circuses - Traveling
Applies to establishments engaged in operating a traveling circus. Work contemplated by this classification includes all preparations, operations and maintenance normally performed by employees of an employer having operations subject to this classification. Employments include, but are not limited to, drivers, trainers, performers, ticket sellers/takers, clerical staff who travel with the circus, set up/tear down of mechanical and nonmechanical rides, concession booths or stands, mobile offices, aid rooms, ticket booths and all other temporary structures associated with a traveling circus.
This classification excludes clerical office employees who are assigned to a permanent office location with no outside duties, who may be reported separately in classification 4904 provided all the conditions of the general reporting rules covering standard exception employees have been met.
Special note: Classifications 6208 and 5206 do not apply to circus operations.
6207-02 Amusement rides - Traveling
Applies to establishments engaged in operating mechanical or nonmechanical amusement rides. Employments contemplated by this classification include, but are not limited to, drivers and all employees engaged in the set up and tear down, operation, and maintenance of mechanical and nonmechanical rides and all other temporary structures associated with the amusement rides. This classification also includes automobile stunt shows, such as monster trucks or motorcycle car jumps, that perform for entertainment purposes. Covered employments associated with automobile stunt shows include, but are not limited to, drivers, mechanics, and maintenance employees who set up and take down ramps or other structures used in the show.
This classification excludes clerical office employees who are assigned to a permanent office location with no outside duties, who may be reported separately in classification 4904 provided all the conditions of the general reporting rule covering standard exception employees have been met; clerical employees who travel with the amusement operations and work out of a mobile office, ride operators, attendants, ticket sellers/takers, and personnel involved in the care, custody, and maintenance of amusement facilities who may be reported separately in classification 6208; employers engaged in operating mechanical or nonmechanical rides at a permanent location which are to be reported separately in classification 6208; and establishments engaged in operating video or amusement game arcades at a permanent location, not within or operated in connection with an amusement park, which are to be reported separately in classification 6406.
Special note: Permanent shop employees, and those employees assigned to the shop during the winter quartering period, may be reported separately in classification 5206 provided the conditions set forth in WAC 296-17A-5206 have been met.
6207-03 Rodeos
Applies to establishments engaged in the production of rodeos. Employments contemplated by this classification include all operations normally performed by employees of an employer having operations subject to this classification such as, but not limited to, drivers and all arena employees, setting up/tearing down temporary enclosures/structures/bleachers, clowns, gate openers, animal handlers, ticket sellers/takers, first-aid staff, and clerical staff who travel with the rodeo.
This classification excludes clerical office employees who are assigned to a permanent office location with no outside duties, who may be reported separately in classification 4904 provided all the conditions of the general reporting rule covering standard exception employees have been met; and stock handlers who contract with a rodeo producer to supply horses, bulls, or other rodeo animals, who are to be reported separately in classification 7302.
Special note: Classifications 6208 and 5206 do not apply to rodeos.
6207-04 Fireworks exhibition
Applies to establishments engaged in producing pyrotechnic exhibitions. This classification includes purchasing ready made fireworks, setting up displays, timing fuses, lighting the fireworks, and cleaning up.
This classification excludes establishments engaged in the manufacture of fireworks which are to be reported separately in classification ((4601)) 3701.
AMENDATORY SECTION (Amending WSR 14-17-085, filed 8/19/14, effective 9/19/14)
WAC 296-17A-6303 Classification 6303.
Sales personnel with outside duties, messengers, insurance producers or surplus line brokers, social workers and dieticians employed by a home health care service
Although referenced as sales personnel, this classification also applies to others with similar type activities. While some duties may be performed in a business office, the work is often conducted away from the employer's physical business location or in showrooms. We refer to work that takes place away from the employer's premises as "outside sales."
Classification 6303 is a standard exception classification, as described in WAC 296-17-31018 Exception classifications, with restrictions on both the type of work and where the work can take place. If any of a worker's duties are excluded from 6303 because of restrictions described in this rule, then none of the worker's hours may be reported in classification 6303.
Special note: Care must be taken to:
• Look beyond job titles such as salesperson, social worker, or messenger. Job titles do not ensure the work satisfies the restrictions for classification 6303;
• Ensure standard exceptions are permitted - Some basic classifications include sales work;
• Ensure workers assigned classification 6303 perform no work other than what is allowed by this classification or that permitted in WAC 296-17-4904.
Classification 6303 includes all activities allowed by WAC 296-17A-4904 (office workers) as well as:
• Meeting with customers off premises;
• Showing and demonstrating products and merchandise;
• Off-site classroom instructional training;
• Driving oneself or being transported to or from meeting or training locations;
• Delivering interoffice mail, correspondence and legal documents necessary for administering the employer's business;
• Providing counseling or verbal direction to clients of a home health care service;
• Performing public relations for employers' business.
Classification 6303 excludes:
• Stocking, shipping, receiving, or delivering merchandise;
• The demonstration of machinery or equipment;
• Workers who perform any duties not specifically allowed by WAC 296-17A-4904 or 296-17A-6303;
• Specialty services merchandising products in stores, reported in classification 0607-19;
• Directly supervising workers not included in classifications 4904 or 6303;
• Providing samples to retail customers, reported in classification 6406-40 or 7106-01;
• Working as a driver for a service that transports or chauffeurs others;
• Driving, cooking, or cleaning for, or physically assisting others for home health care services;
• Employees of collection agencies, who are reported separately in 5301-13;
• Door-to-door sales persons who are reported separately in 6309-22;
• Employees of services (WAC 269-17A-4903) providing inspection or valuation services to others;
• Employees of messenger services who are reported separately in 1101-09;
• Employees working for a legal messenger service who are reported separately in 6601-07;
• Construction estimators, who are reported in classification 4911, when their work is limited to time and material estimating for a full work shift.
Special note: Hands on training outside of a classroom setting has to be reported separately in the applicable basic classification. For example, a karate instructor is reported in classification 6204, not 6303.
For administrative purposes, classification 6303 is divided into the following subclassifications:
6303-00 Outside sales personnel, messengers, N.O.C.
6303-03 Insurance sales personnel and claims adjusters
Special note: Individuals licensed by the insurance commissioner as insurance producers for soliciting, negotiating, and selling insurance are exempt from coverage as specified in RCW 51.12.020(11) and 48.17.010. To elect ((voluntary)) coverage, these individuals must submit a completed optional coverage form to the department.
6303-21 Home health care services: Social workers and dietitians
Social workers are employed by home health care services providing care for people living with disabilities. Duties include teaching people living with physical or developmental disabilities in their own home to manage daily living skills such as caring for themselves, dressing, cooking, shopping, and going to the doctor.
Dieticians (also called nutritionists) are referred to patients by their physicians. The dietitian assesses the patient's current nutritional status, and then develops a food plan to meet the patient's needs.
Subclassification 6303-21 excludes:
• Cooking, cleaning, transporting and physically assisting clients;
• Nursing and home health care services which are to be reported separately in 6110-00;
• Therapy services which are reported separately in 6109;
• Domestic servants who are to be reported separately in 6510-00;
• Chore workers who are to be reported separately in 6511;
• Home care services provided through the home care referral registry (HCRR) who are to be reported separately in 6512-00.
Special note: Subclassification 6303-21 is not to be assigned to any account that does not also have classification 6110 and/or 6511.