((WAC 296-17-31001 through 296-17-35204))Chapter 296-17 WAC, General reporting rules, audit and recordkeeping, rates and rating system for Washington workers' compensation insurance provides rules applicable to workers' compensation insurance coverage (industrial insurance) that employers in the state of Washington must provide for their workers. We refer to these rules (WACs) as sections and ((the complete body of information as the workers' compensation underwriting manual. The workers' compensation underwriting manual contains sections (WACs) that))they define or explain:

(1) Where can I buy workers' compensation insurance? Washington law requires that you:

• Purchase your workers' compensation insurance through labor and industries. You will need to complete a business license application to obtain workers' compensation insurance from us; or

• Be certified as a self-insured employer by the self-insurance certification services section of the department of labor and industries. For more information on the self-insurance ((you can call 360-902-6867 and one of our self-insurance representatives will assist you.))program go to www.lni.wa.gov/selfinsurance, additional resources and contact information are listed under "Contact Us."

Employers engaged exclusively in interstate or foreign commerce are permitted to purchase workers' compensation insurance from a private carrier in another state if they do business in that state. The workers' compensation laws of the other state must allow the Washington drivers to be covered in that state.

(2) Where can I get a business license application?

You can file and print a business license application online at www.business.wa.gov/BLS. You can pick up a paper business license application from:

• Any office of the department of labor and industries;

• Employment security;

• Department of revenue business licensing service office;

• The corporations division of the office of the secretary of state;

• For your convenience you can call us at 360-902-4817 and we will mail you one.

(3) Where do I send my completed business license application?

You can mail your completed business license application to the department of revenue address shown on the form, or you can return it to your local department of labor and industries office, or department of employment security district tax office. Be sure to include the appropriate fees indicated on the form.

(1) As a business owner, can I buy workers' compensation insurance to cover myself or to cover workers who are exempt from mandatory coverage as defined in RCW 51.12.020, 51.12.035, or 51.12.170?

Yes. Coverage is not required, but is available for sole proprietors, partners, qualifying corporate officers, qualifying members of a limited liability company, and for exempt employments defined in RCW 51.12.020, 51.12.035, or 51.12.170. We refer to this coverage as optional coverage. For owner optional coverage, you must meet certain conditions and requirements which are detailed on the application for owner/officer optional coverage. These requirements include:

• Completing an application for optional owner/officer coverage;

• Reporting owner/officer hours in the classification assigned to your business that is applicable to the work being performed by the owner/officer;

• Submitting a supplemental report which lists the name of each covered owner/officer; and

• Reporting four hundred eighty hours or actual hours worked each quarter for each covered owner/officer and in the applicable workers' compensation classification code.

(2) When will my owner/officer coverage or coverage for exempt employments become effective?

Your coverage will become effective the day after we receive your completed and signed application for optional coverage, unless you indicate that optional coverage should begin at a later date. Coverage cannot begin before the day after we receive your completed application.

(3) How does cancellation work? You may cancel your optional owner/officer coverage or elective coverage for exempt employments by notifying the department in writing. For sole proprietors ((and)), partners, and LLC partnership model, we will cancel your coverage either the same day we receive your written notice to cancel or on the future date you indicate. For corporations, LLC((s))corporate model, or elective coverage for exempt employment, we will cancel the coverage thirty days from the date we receive your written request to cancel.

The department may cancel optional coverage if any required payments have not been made. Cancellation will become effective no later than thirty days from the date of the cancellation notice the department sent to the employer.

When your account balance is paid, if you want to reestablish owner/officer coverage, you must submit a new application for owner/optional coverage.

(4) Where can I get an application for owner/officer coverage, or coverage for exempt employments? There are separate applications for owner/officer optional coverage and coverage for exempt employments. To get these applications, go to http://www.lni.wa.gov/FormPub, contact your local labor and industries office, or you can call the employer services division at 360-902-4817.

Applies to establishments engaged as building material dealers or lumber yards. For purposes of this classification the term "building materials" includes, but is not limited to, such items as wallboard, roofing, insulation, sheet metal, bricks, blocks, windows, fixtures, cabinets, doors, linoleum, tile, paneling, interior wood and plastic trim and molding, concrete mix, pipe, plumbing, and electrical supplies. In addition, such establishments often carry a variety of paints and accessories, garden tools and accessories, and hardware items such as nails, nuts and bolts, tools, hinges, doorknobs, locks, and more. It is not uncommon for a building material dealer to specialize and sell only one of the above types of items. Establishments engaged as lumber yards carry a diverse line of wood and lumber products and usually with sufficient quantity to build an entire wood structure. This line of wood and lumber products could include beams, planks, boards, plywood, an array of dimensional lumber (1x2, 2x4, 2x12, etc.), fence posts, railroad ties, shakes and shingles, siding, wood paneling, as well as interior wood trim and molding. Such establishments often carry a variety of other building materials such as electrical supplies, pipe and plumbing supplies, fixtures, cabinets, doors, windows, wallboard, insulation, linoleum, tile, paneling, bricks, blocks, concrete mix, roofing materials, sheet metal and more. These establishments often utilize one or more covered sheds to protect less durable materials from the outside climate, and will also utilize an uncovered open yard type of environment for storage of more durable wood, lumber, and building materials. In addition, such establishments could also have an inside store operation to include a variety of items such as hand and power tools, table saws, paints and varnishes, caulking, and a variety of hardware type items such as nails, nuts and bolts, hinges, doorknobs, locks, and more. This classification also includes retail/wholesale fence material dealers. This classification includes all store and yard operations and the transfer of materials or inventory between related stores.

This classification excludes delivery drivers (other than those involved in ((intrastore or intrayard transfers mentioned above))transferring materials or inventory between related stores) who are to be reported separately in classification 1101; nondelivery activities conducted away from the store or yard; hardware stores with building materials or lumber which are to be reported separately in classification 2009-03; and warehouse centers which are to be reported separately in classification 2009-05.

Applies to establishments engaged as electrical hardware and supply dealers who primarily sell electrical hardware and supplies in bulk to the contractor trades, such as electrical and construction, although sales also may be made to individuals for their own use. Supplies are typically received in bulk quantity and may include, but are not limited to, spools of electrical wiring and cable, wiring harnesses, plastic and flex hosing, panel boxes, brackets, electrical outlet boxes, fuses, switches, plates, and residential and commercial canisters and light fixtures. This classification includes all store and yard operations and the transfer of materials or inventory between related stores.

This classification excludes delivery drivers (other than those involved in ((intrastore or intrayard transfers mentioned above))transferring materials or inventory between related stores) who are to be reported separately in classification 1101; nondelivery activities conducted away from the store or yard; all service or repair work which is to be reported separately in the applicable classification whether it is conducted at the store or a customer's location; retail lighting fixture stores which demonstrate lights and fixtures to walk-in customers which are to be reported separately in classification 6406; and establishments engaged as wholesale lighting fixture and light bulb dealers who buy direct from manufacturers and who sell wholesale to retail lighting fixture stores or other such stores or institutions who are to be reported separately in classification 6407.

Applies to establishments primarily engaged in operating farm supply or farm cooperative stores. These establishments carry a diverse line of farm feeds, products, and accessories. Typical items may include, but are not limited to, bulk quantities of mixed and unmixed feeds, seeds, oats and grains; bales of alfalfa or hay; bag feed for dogs, cats, chickens, birds, and other animals; bulk and bag fertilizers; pesticides and other garden items including peat moss and bark; animal grooming and care accessories; horse tack; specialty clothing; feed and water bins; metal fencing and grates for livestock; fence posts; barbed wire; pumps and piping; hardware and tools; automotive and tractor parts and accessories; and miscellaneous homeowner or yard equipment such as mowers, rototillers, and a variety of small tractors and accessories. This classification includes all store and yard operations and the transfer of materials or inventory between related stores.

This classification excludes delivery drivers (other than those involved in transferring materials or inventory between related stores) who are to be reported separately in classification 1101; all other nondelivery activities conducted away from the store or yard; all service or repair work which is to be reported separately in the applicable classification whether it is conducted at the store or a customer's location; and establishments primarily engaged in the sale, service and/or repair of farm machinery and implements which are to be reported separately in classification 6408.

Special note: Farm supply or farm cooperative stores may conduct additional operations which are to be reported separately. These activities may occur at a single location operated by the business or at separate locations and may include an oil or gas dealership which is to be reported separately in classification 3407; self-service gas or diesel stations which are to be reported separately in classification 3409; or agricultural fertilizer dealers (not including the manufacture of raw materials) which are to be reported separately in classification 2106.

Applies to establishments engaged in operating hardware stores that also sell building material supplies. For purposes of this classification the term "building materials" includes, but is not limited to, such items as wallboard, roofing, insulation, sheet metal, bricks, blocks, and windows, cabinets, doors, windows, sheet metal, roofing materials, concrete mix, boards, plywood, dimensional lumber (1x2, 2x4, 2x12, etc.), fence posts, railroad ties, siding, and wood paneling, as well as interior wood trim and molding. The merchandise carried will vary from store to store. For the purposes of this classification, hardware includes items such as, but not limited to, nails, nuts, bolts, screws, door fixtures, hinges, locks, power and hand tools, garden tools and accessories, electrical and plumbing supplies, and paint and automobile supplies. Depending on their location and customer base, hardware stores may also sell a limited selection of giftware, housewares, sporting goods, athletic equipment, games or similar items. Other services provided could include making keys, threading pipe, mixing paint, and the sale of fishing or hunting licenses. This classification includes all store and yard operations and the transfer of materials or inventory between related stores.

This classification excludes delivery drivers (other than those involved in transferring materials or inventory between related stores) who are to be reported separately in classification 1101; all other nondelivery activities conducted away from the store or yard operation; and all service or repair work which is to be reported separately in the applicable classification whether it is conducted at the store or a customer's location.

Special note: Hardware stores with lumber or building material supplies are smaller and offer a smaller product selection than warehouse centers which are reported separately in classification 2009-05. Establishments primarily engaged as building material dealers and lumber yards are to be reported separately in classification 2009-00.

Applies to establishments engaged as pump, plumbing, irrigation, and pipe supply dealers. Merchandise includes, but is not limited to, pumps, above and below ground irrigation systems and supplies, pipe, fittings, elbows, adapters, connectors, hoses, valves, water softeners, filters, disposals, hot water tanks, heaters, sinks, tubs, toilets, and shower units. Merchandise is typically received in bulk quantity by the pallet, sling, crate or box. Merchandise is sold primarily to plumbing and irrigation contractors. This classification includes all store and yard operations, including showrooms or display areas and in-shop services such as the rebuilding or repair of pumps, and cutting and threading pipe. Also included in this classification is the transfer of product or material inventory between related stores.

This classification excludes delivery drivers (other than those involved in transferring materials or inventory between related stores) who are to be reported separately in classification 1101; all other nondelivery activities conducted away from the store or yard; and all service or repair work not described above which is to be reported separately in the applicable classification whether it is conducted at the store or a customer's location.

Applies to establishments engaged in operating warehouse centers with lumber or building material supplies. For purposes of this classification a warehouse center is an enclosed building or structure which serves to protect the majority of the items or products contained within the warehouse environment. Warehouse centers are larger than traditional hardware stores and offer a wider product selection. A dominant characteristic of a warehouse center is that excess stock is stacked up to 25 feet high throughout the building. The term "building materials" as used in this classification includes, but is not limited to, such items as wallboard, roofing, insulation, sheet metal, bricks, blocks, and windows. Merchandise carried by warehouse centers may include hardware, variety items, building materials, as well as wood or lumber. Hardware items may include such items as nails, nuts, bolts, door fixtures, hinges, locks, hand or power tools, garden tools, garden supplies and accessories, lawn mowers, electrical supplies, plumbing supplies, paint, and auto supplies. Variety items may include giftware, housewares, sporting goods, athletic equipment, games, rugs, and lawn chairs. Wood and lumber products may include beams, planks, boards, plywood, dimensional lumber (1x2, 2x4, 2x12, etc.), fence posts, railroad ties, shakes and shingles, siding, and wood paneling. This classification includes all store and yard operations and the transfer of materials or inventory between related stores.

This classification excludes delivery drivers (other than those involved in transferring materials or inventory between related stores) who are to be reported separately in classification 1101; all other nondelivery activities conducted away from the store or yard; and all service or repair work which is to be reported separately in the applicable classification whether it is conducted at the store or a customer's location.

Special note: Hardware stores with lumber or building material supplies are smaller and offer a smaller product selection than warehouse centers and are reported separately in classification 2009-03. Establishments primarily engaged as building material dealers and lumber yards are to be reported separately in classification 2009-00.

Applies to establishments engaged as heating, ventilation, and air conditioning product and supply dealers. Merchandise includes, but is not limited to, furnace units, gas fireplaces, air conditioning and heater units, hot water tanks, thermostats, vents, venting duct and pipe, vent collars and reels, registers, fittings, adapters, galvanized pipe, insulation wrap, preformed or bent duct portions, flat sheets of metal, concrete pads and gas logs. Merchandise is typically received in bulk quantity by the pallet, sling, crate or box. Merchandise is primarily sold to heating and ventilation contractors, furnace contractors and sheet metal contractors. This classification includes all store and yard operations and the transfer of product or material inventory between related stores.

This classification excludes sheet metal fabrication shops which are to be reported separately in classification 3404; delivery drivers (other than those involved in ((intrastore or intrayard transfers))transferring materials or inventory between related stores) who are to be reported separately in classification 1101; all other nondelivery activities conducted away from the store or yard; and all service or repair work which is to be reported separately in the applicable classification whether it is conducted at the store or a customer's location.

Classification 4502 is limited to employees who do not install, test, or repair electrical wiring, cable lines, antennas, satellite dishes, or hook-up subscribers, unless the work is performed inside buildings on their employers' premises. Occupations reported in this classification include clerical office and sales workers, but may also include:

Account managers;

Administrative staff;

Advertising, marketing, and promotions staff;

Animation production staff;

Announcers;

Art, design, wardrobe staff;

Billing, customer service staff;

Camera operators, videographers, photographers;

Commercial productions staff;

Control room engineers and operators;

Facility operations, maintenance staff;

Film and video editors;

Meteorologists;

Music DJs;

Musicians, performers, actors, and personalities;

Producers, directors, reporters;

Sales staff;

Set construction staff, lighting technicians;

Studio engineers, studio technicians;

Stunts staff.

This classification excludes:

• Field employees for cable television or communication providers installing or maintaining extension lines and subscriber hook-ups, who are reported separately in classification 1305;

• Technical staff employed by a radio or television station, recording studio, or video production company installing, testing, or repairing electrical wires, cable, antennas, satellite dishes, or any other equipment outside their employers' studios, offices, or facilities;

• Large-scale theatrical/movie productions reported separately in classification 6608;

• Videotaping by photography studios reported separately in classification 6506; and

• Entertainers, musicians, recording engineers, etc., who are not employees of the broadcasting or recording company.

Businesses may be assigned either classification 4501 or 1305 in addition to classification 4502; however, employers must maintain records that permit the department to confirm hours worked in each classification. If employers do not or cannot maintain these records, they must report all hours in question in the classification with the higher rate.

For administrative purposes classification 4502 is divided into the following subclassification(s):

Applies to establishments engaged in the operation of indoor motion picture ((theatres))theaters, drive-in ((theatres))theaters, and live production ((theatres))theaters. This classification includes, but is not limited to, managers, stage hands, box office employees, projectionists, ushers, snack bar employees, parking lot attendants, security guards, sound system and lighting engineers, set builders, clerical office employees, and sales personnel. This classification includes the organization and management of nontheatrical events on ((theatre-owned))theater-owned property, such as a "swap meet" on the grounds of an outdoor ((theatre))theater, when done by employees of an employer having operations subject to this classification.

This classification excludes performers in live ((theatre))theater such as, but not limited to, actors, entertainers, and musicians who are to be reported separately in 6605 or 6620 as applicable; nontheater employees engaged in setting up stage lighting and sound systems who are to be reported separately in classification 0601 or 0608 as applicable; and nontheater employees engaged in building and setting up props and sets who are to be reported separately in classification 0516.

Special note: Theatrical productions often involve independent contractors. The independent contractor tests found in RCW 51.08.180 and 51.08.195 should be applied when reviewing the status of individuals such as, but not limited to, the playwright, composer, set designer, costume designer, lighting and sound designers, and videographer. Care should be exercised when assigning this classification as the entertainers or musicians may be exempt from coverage as specified in RCW 51.12.020(9).

Applies to establishments engaged in the retail sale of new or used clothing. Merchandise varies, but generally includes shoes, jewelry, giftware, or accessories in addition to wearing apparel. Some establishments will specialize in certain types of clothing such as, but not limited to, athletic wear, T-shirts, coats, socks, or vintage clothing. This classification also applies to stores that rent clothing such as, but not limited to, costumes, tuxedos, or wedding apparel. This classification includes all store employees including specialty services such as alterations personnel and delivery drivers.

This classification is distinguishable from ((department stores in classification 6304 or)) retail variety stores in classification 6406 in the limited number of specialized departments and the variety of nonclothing or giftware merchandise for sale.

Special note: Clerical office and outside sales employees may be reported separately provided all the conditions of the general reporting rules covering standard exception employees have been met.

Applies to establishments engaged in the retail sale of a variety of new or used dry goods. For purposes of this classification dry goods include, but are not limited to, fabric, embroideries, veiling, laces, textile trimmings, curtains, draperies, blankets, bedspreads, sheets, pillowcases, tablecloths, napkins, and towels. This classification includes all store employees.

This classification is distinguishable from retail fabric stores in classification 6406 in that dry good stores will carry primarily finished piece goods for sale while fabric stores will carry primarily fabric, sewing notions and a limited supply of finished goods.

Special note: Clerical office and outside sales employees may be reported separately provided all the conditions of the general reporting rules covering standard exception employees have been met.

Applies to establishments engaged in the retail sale of new or used shoes. Establishments may sell a full line of shoes or they may specialize in certain types such as athletic shoes, safety shoes, work boots, women's, men's, or children's shoes. It is customary for shoe stores to sell some related products such as, but not limited to, handbags, socks, belts, or shoe care products. This classification includes all store employees. This classification also applies to shoe shine stands.

This classification excludes establishments engaged in the manufacture or repair of shoes or boots which are to be reported separately in classification 3802.

Special note: Clerical office and outside sales employees may be reported separately provided all the conditions of the general reporting rules covering standard exception employees have been met.

Applies to establishments engaged in the retail sale of new or used western style clothing. Merchandise varies, but may also include western style shoes and boots, jewelry, giftware, or horse tack. This classification includes all store employees including specialty services such as alterations personnel and delivery drivers.

((This classification is distinguishable from department stores in classification 6304 in that classification 6305 businesses are not comprised of specialized departments and do not carry furniture, housewares, and similar items required as part of the department store classification.))

This classification excludes establishments engaged exclusively in the sale of horse tack and related animal grooming and care products which are to be reported separately in classification 2009 "farm supply stores."

Special note: Clerical office and outside sales employees may be reported separately provided all the conditions of the general reporting rules covering standard exception employees have been met.

Applies to establishments engaged in the retail sale of new or used wigs or hats. Merchandise varies, but generally these establishments will also sell related hair care products, hat pins, brooches or similar accessory items. This classification includes all store employees.

Special note: Clerical office and outside sales employees may be reported separately provided all the conditions of the general reporting rules covering standard exception employees have been met.

Applies to establishments who provide custom dressmaking, tailoring, or alterations services to others. Activities include the showing of sketches and fabrics, modeling samples, taking individual orders and measurements, cutting, basting and fitting. Employees use sewing machines, but much of the work is hand sewing, steaming or pressing. Materials include fabrics, buttons, zippers, and sewing notions. Tools and machinery include, but are not limited to, scissors, steam presses and irons, dress forms, and sewing machines with attachments to perform a variety of sewing functions. Custom dressmakers and tailors may sell fabrics and sewing notions, or limited supply ready-made apparel. The sale of these items by establishments engaged in custom dressmaking or tailoring is included in this classification. This classification is distinguishable from clothing manufacturers in classification 3802 in that establishments subject to classification 6305 make custom clothing for individuals rather than making garments on a quantity basis. However, customers of a 6305 business may order several items of a kind such as for a wedding party or small theater group.

This classification excludes the mass production of wearing apparel which is to be reported separately in classification 3802.

Special note: Clerical office and outside sales employees may be reported separately provided all the conditions of the general reporting rules covering standard exception employees have been met.

Retail store operations primarily providing any combination of the following merchandise, supplies, or services:

• Architect and surveyor supplies;

• Athletic outfits, team uniforms and other specialty clothing;

• Blenders, food processors, juicers, microwaves, toasters, portable ovens, and other countertop appliances;

• Candy stores;

• Cleaning supplies;

• Copy services;

• Desktop computers;

• Game arcades;

• Hobby and craft supplies;

• Inventory services;

• Luggage;

• Mail and safety deposit box services;

• Office and school supplies;

• Office equipment, including:

– Copy machines;

– Fax machines;

– Printers.

• Pets (other than cats and dogs) and pet supplies;

• Picture frames;

• Pots, pans, bowls, dishes, eating utensils, and all other kitchenware products;

• Prescription and nonprescription drugs;

• Souvenirs, knickknacks, candles, ornaments, and novelties;

• Sporting goods, including:

– All types of sports equipment;

– Archery supplies;

– Bicycles and accessories;

– Camping supplies;

– Children's pools;

– Fishing gear;

– Guns, ammunition, and accessories;

– Knives;

• Motorized toy vehicles meant to carry a child.

• Stained glass supplies;

• Unfinished fabric, thread, and yarn, and other sewing supplies;

• Store demonstrator services.

Notes: Stores selling a combination of merchandise and/or services found in store classifications 6406 and 6411 are classified 6406. Stores primarily selling merchandise included in classifications 6406 and 6411, but also selling groceries and/or merchandise normally found in classification 6309, are classified 6406. Stores primarily selling merchandise included in classification 6406, but also selling goods described by a store classification rated higher than classification 6309, are classified 6309.

• Assembling merchandise from prepackaged kits for display and/or sale;

• Cashiering;

• Classes for customers;

• Cleaning and maintenance of store, storage areas, and associated business offices;

• Inventory work by store employees;

• Parts and batteries for products included in classification 6406;

• Packaging, addressing, and mailing articles for shipment;

• Receiving and returning merchandise at store's loading ramp;

• Renting items normally sold in classification 6406;

• Sales work inside store;

• Store security and surveillance;

• Stocking.

• Workers assembling products for sale, when these products are not purchased and sold as a kit. Assembling goods from component parts that do not come as a kit, is reported separately in the applicable manufacturing classification;

• Delivery drivers who are to be reported separately in classification 1101;

• Door to door sales, reported separately in subclassification 6309-22;

• Stores primarily selling merchandise described by a higher rated store classification, which are assigned the classification that best represents their inventory;

• Stores primarily selling merchandise included in classification 6406, but also merchandise described by a store classification higher rated than 6309, such as:

– Large appliances;

– Automobiles or boats;

– Antique variety;

– Furniture;

– Tires;

– Motorized exercise equipment or machines;

– Meat cutting/packaging;

– Pianos and/or organs;

– Large entertainment systems and televisions;

– Secondhand or used variety store type merchandise.

Note: Stores primarily selling merchandise included in classification 6406, but also selling goods described by a classification rated higher than classification 6309 are classified 6309.

• Stand-alone distribution centers or warehouses which are reported in classification 6407;

• Any repair or installation work;

• Workers installing, servicing, and/or stocking vending equipment, which are reported separately in 0606;

• Coffee, snack, lunch counters or any on-site food preparation which are reported separately in classification 3905;

• Stores with wholesale operations, reported in classification 6407.

High volume warehouse and distribution facilities which are reported separately in classification 6407.

For administrative purposes, classification 6406 is divided into the following subclassification(s):

This subclassification differs from 6406-17 in that the stores in ((this subclassification will be specialized))6406-00 specialize and have inventories around themes such as "pet supplies," "sporting goods," or "gifts."

Excludes:

• Stores selling cats or dogs, reported in classification 7308;

• Stores that specialize in selling bicycles or guns, which are reported in classification 6309;

• Pet grooming, reported separately in classification 7308;

• Pet food stores, which are reported in classification 6403;

• Installation, removal, or repair of arcade equipment, reported separately in classification 0606.

Excludes:

• Worker hours repairing computers and other office equipment, which is to be reported separately in classification 4107;

• Stores selling office furniture, which are reported separately in classification 6306.

Excludes:

• Worker hours for custom framing, which are reported separately in subclassification 6309-20;

• Stores primarily selling sewing machines and vacuum cleaners, which are reported in 6309-19.

Excludes:

Sale and/or rental of hospital beds, motorized wheel chairs or mobility aids, and other patient appliances, which are reported separately in classification 6306.

This subclassification differs from 6406-00 in that the stores in ((this subclassification))6406-17 tend to be larger and less specialized.

Excludes:

• Manufacturing and retail sales of candy or confection at store site, which is classified in 3905;

• Manufacturing candy or confection away from the store site, which is reported separately in classification 3906.

Excludes:

Small specialty toy stores with inventory limited to smaller items, such as playing cards, puzzles, games, blocks, small dolls, and other hand toys, which is classified 6411.

This special exception classification applies only to manufacturers, wholesalers, and businesses specializing in providing product demonstrators and their services to others. Workers reported in this classification can have no duties during their work shift other than those permitted for product demonstrators.

The classification includes:

• Set up and break down of a demonstration display space;

• Providing samples without charge;

• Use of kitchen appliances and utensils to prepare food samples;

• Use of nonpowered hand tools and battery-powered screwdrivers to assemble and disassemble displays.

This classification excludes:

• Stocking shelves;

• Selling;

• Setting up product displays intended to remain after the product demonstration;

• Delivery;

• Demonstrating machinery or equipment.

Product demonstrators employed by a retail store are to be reported under the store's basic classification; product demonstrators employed by a temporary help service are to be reported in classification 7106.

Applies to establishments engaged in the wholesale, or combined wholesale and retail sales of merchandise that is not covered by another classification (N.O.C.). Establishments subject to classification 6407 usually own the merchandise they sell, but may also be marketing goods on consignment, in which case classification 6407 still applies because the exposure and processes are the same. This classification is primarily the wholesale counterpart (supplier) for establishments assigned to retail store classification ((6304,)) 6305, 6406, and 6411.

Classification 6407 also applies to retail stores with high volume warehouse and distribution facilities without the normal exposures associated with a retail store.

Work contemplated by classification 6407 includes, but is not limited to, maintaining warehouse inventories, sorting and grading goods, and breaking down bulk quantities to repackage into smaller lots. Equipment typically used includes, but is not limited to:

• Balers to bind merchandise into bundles;

• Strapping equipment to secure palletized goods;

• Forklifts; and

• Hand tools.

This classification excludes:

• Delivery which is to be reported separately in classification 1101;

• Large high volume sales operations where retail customers select and carry out the goods they purchase, which are reported in the classification applicable to the merchandise sold.

Special notes: When assigning classification 6407, care must be exercised to look beyond the words "wholesale" or "retail." The manufacturer of a product will also "wholesale" their merchandise (or a combination of their own merchandise and finished products bought from other manufacturers) to a customer. These sales are an integral part of the manufacturing/marketing process and is an inclusion in the manufacturing classification. Establishments that buy goods, such as clothing or cloth goods, in wholesale quantities, then screen print or embroider them for resale are performing manufacturing operations and are to be reported separately in the appropriate manufacturing classification.

Warehouse operations in classification 2102, with the exception of grocery dealers, do not own the product they are warehousing and are not in the business of selling the goods they store. Businesses in classification 6407 may operate a warehouse, but only as an integral part of the wholesaling/distribution process, which is included in classification 6407.

Retail store operations limited to providing any combination of the following merchandise, supplies, or services:

• All types of phones;

• Beads;

• Books, newspapers, magazines, and comic books;

• Cameras;

• Cards (greeting, post, and sports);

• Cosmetics and fragrances;

• Laptops, electronic notebooks and pads, and other small electronic devices;

• Musical instruments (string, wood, brass, wind, and percussion);

• Photography and darkroom supplies;

• Records, music discs, tapes, videos, video games, and software disks;

• Small or portable entertainment players (or parts of player), radios, for homes, offices, or automobiles;

• Smoking accessories and tobacco products;

• Vaporizers and e-liquids;

• Other smaller items, such as playing cards, cups, calendars, puzzles, games, costume jewelry, cosmetics, pencils, pens, notebooks, etc.

Note: Stores in classification 6411 may also carry inventory listed in the scopes language of lower rated store risk classifications, along with the goods listed below, as long as the majority of the merchandise is described by the above list.

• Cashiering;

• Cleaning and maintenance of store, storage areas, and associated business offices when performed by store employees;

• Inventory work by store employees;

• Sales of already-prepared snacks, and beverages (for off-site consumption), and/or promotional clothing;

• Parts and batteries for products included in classification 6411;

• Receiving and returning merchandise at store's loading area;

• Renting items normally sold in classification 6411;

• Sales work inside store;

• Store security and surveillance;

• Stocking.

• Stores selling merchandise described by a higher rated store classification;

• Delivery drivers who are reported separately in classification 1101;

• Door to door sales, which are reported separately in subclassification 6309-22;

• Stores using pallet jacks, fork lifts, conveyors, or other mechanized means of moving merchandise into and within store premises, which are classified in 6406 when merchandise is described by classification 6411 and/or classification 6406;

• Stand-alone distribution centers or warehouses which are to be reported separately in classification 6407;

• Repair or installation work, which must be reported separately;

• Sales of pets; see classifications 6406 and 7308;

• Working at coffee stands, lunch counters, or any on-site food preparation or manufacturing of candy, where employees' hours are to be reported separately in classification 3905;

• Employees doing custom framing; see classifications 6406 and 6309;

• Product demonstration services which are to be reported in subclassification 6406-40;

• Businesses providing inventory services which are to be reported in subclassification 6406-00;

• Wholesales, reported in classification 6407;

• High volume warehouse and distribution facilities which are reported separately in classification 6407.

For administrative purposes, classification 6411 is divided into the following retail store subclassification(s):

Includes hand held keyboards and music instruction.

Excludes:

• Stores selling pianos and organs, see classifications 6406, 6309, and 6306;

• Repair of instruments, which is reported separately in classification 2906 or 3602; (if more than one is applicable, assign only the highest rated classification for all repair).

Excludes establishments with coin or token arcades, to be reported in subclassification 6406-00.

Excludes:

• Retail stores primarily selling marijuana infused grocery items or marijuana, see classification 6403;

• Retail bakeries selling a variety of baked goods infused with marijuana; see subclassification 3901-00.

Includes stores and kiosks selling and/or arranging DSL, cable, or dish services for phones, computers, televisions and other devices.

Excludes:

• Stores selling office or school supplies, reported in subclassification 6406-11;

• Stores selling furniture or furniture kits; see classification 6406, 6309, or 6306;

• Stores providing photo development and printing, see classification 6406 or 6506;

• Workers performing repair work, which is to be reported separately in classification 3602.

Entities providing chore services/home care assistants to private individuals.

Chore services performed by the chore workers/home care assistants include, but are not limited to:

• General household chores;

• Meal planning and preparation;

• Shopping and errands, either with or without the client;

• Personal care, such as bathing, body care, dressing, and help with ambulating;

• Companionship.

• Supervising visits between children and parents, including transporting the child;

• Packing up senior homes;

• Organizing homes prior to customers putting a home on the market;

• Organizing homes prior to customers having an estate auction;

• Pet sitting;

• House sitting.

• Firms involved in organizing homes and also conducting estate auctions (report in 6603).

• Social workers and dieticians employed by home health care service establishments (report in 6303-21). Workers in classification 6303-21 are teaching people living with physical or developmental disabilities living in their own home to manage daily living skills such as caring for themselves, dressing, cooking, etc. Workers in classification 6511 are performing this work as a service to individuals.

• Individuals working under a welfare special works training program (report in classification 6505).

• Residential cleaning or janitorial services (report in classification 6602).

• Skilled or semi-skilled nursing care (report in classification 6110).

• Home health care providers covered under the ((Washington state home care referral registry))consumer directed employer program (report in classification 6512).

• Household furnishings moving and storage (report in classification 6907).

• Staging services (report in classification 0607).

• Any construction related work. Example: If a business builds shelving as part of organizing homeowner's personal belongings, this employer would not be eligible to report in classification 6511.

For administrative purposes, classification 6511 is divided into the following subclassification(s):

Applies to organizations providing two or more services to support the local community and people in need. See subclassifications 1501-20, 4904-20, and 5308-20 for other community action organization classifications. If the entity provides only chore services, then 6511-00 applies.

Applies to persons who are employed by people who are ill, people with disabilities, or vulnerable individuals to provide home care services that enable those individuals to remain in their own homes. Services provided may include, but are not limited to:

• Household tasks, such as housekeeping, shopping, meal planning and preparation, and transportation; and delegated tasks of nursing under RCW 18.79.260 (3)(e);

• Personal care such as assistance with dressing, feeding, and personal hygiene to facilitate self-care.

Special note: Premiums are paid by the ((home care referral registry (HCRR)))consumer directed employer on behalf of the persons who provide the home care services.

Applies to establishments engaged in auction sales of industrial or commercial plant equipment or machinery such as, but not limited to, tractors, farm implements, backhoes, cranes, booms, asphalt pavers, trailers, conveyors, stone crushers, lifts, bulldozers, forklifts, dump trucks, and logging equipment. Auctions are held at the auctioneer's permanent location or at the client's place of business. Work contemplated by this classification includes, but is not limited to, picking up merchandise from clients, advertising, preparing catalog listings of items for auction, preparing the auction site, demonstrating equipment at preauction inspections, estimating values, ensuring that there is title for the goods, numbering and tagging items into lots, conducting the auction, and receiving payment from buyers and paying the consignor. This classification includes clerical office and outside sales personnel, snack bars, concession stands, and lunch counters when operated by employees of the auction company.

This classification also applies to auctions performed online via the internet.

This classification excludes establishments engaged as equipment or machinery dealers which are to be reported separately as applicable.

Applies to establishments engaged in auction or estate sales of collectibles and antiques or of general household furnishings such as, but not limited to, furniture, pictures, vases, dishes, musical instruments, books, clothing, or lawn and garden furniture, ornaments, tools and equipment. Auctions are held at the auctioneer's permanent location or at the client's location. Work contemplated by this classification includes, but is not limited to, picking up merchandise from clients, advertising, preparing catalog listings of items for auction, preparing the auction site, opening boxes with razor blades and knives, moving merchandise with the use of hand carts, estimating values, ensuring that there is title for the goods, numbering and tagging items into lots, conducting the auction, and receiving payment from buyers and paying the consignor. This classification includes clerical office and outside sales personnel, snack bars, concession stands, and lunch counters when operated by employees of the auction company.

This classification also applies to auctions performed online via the internet.

This classification excludes establishments engaged as antique variety stores which are to be reported separately in classification ((6304))6309.

Applies to establishments engaged in auction sales of specialty merchandise such as, but not limited to, fine art, furs, collectibles, cars and trucks. Auctions are held at the auctioneer's permanent location or at the client's place of business. Depending on the value of items, these types of auctions may operate on a wholesale only basis, or for dealers or qualified buyers only. Work contemplated by this classification includes, but is not limited to, picking up merchandise from clients, advertising, preparing catalog listings of items for auction, preparing the auction site, opening boxes with razor blades and knives, moving merchandise with the use of hand carts, estimating values, ensuring that there is title for the goods, numbering and tagging items into "lots," conducting the auction, and receiving payment from buyers and paying the consignor. This classification includes clerical office and outside sales personnel, snack bars, concession stands, and lunch counters when operated by employees of the auction company. This classification excludes livestock auctions, which are to be reported in classification 4304.

This classification also applies to auctions performed online via the internet.

This classification excludes establishments engaged as stores or dealers which are to be reported separately as applicable.

Applies to establishments or individuals providing performances that are not of a physical or strenuous nature, and who are not specifically covered by another classification (N.O.C.). For purposes of this classification, entertainment that is not physical or strenuous includes, but is not limited to, comedians, magicians or clowns at parties, or nightclubs. Physical or strenuous activities which are not covered by this classification include, but are not limited to, ballet, dancing, skating, gymnastics, or performing stunts.

This classification excludes actors, players, performers, entertainers, or musicians whose routines or performances are of a physical or strenuous nature who are to be reported separately in classification 6620; players, entertainers or musicians N.O.C., hired by ((theatres))theaters, who perform nonstrenuous routines or performances who are to be reported separately in classification 6605-03; musicians performing nonstrenuous routines or performances at dance halls who are to be reported separately in classification 6605-04; musicians, N.O.C. performing nonstrenuous routines or performances who are to be reported separately in classification 6605-01; entertainers engaged in television or radio company operations who are to be reported separately in classification 4502; and entertainers engaged in motion picture production company operations who are to be reported separately in classification 6608.

Special note: Classifications 6620 and 6605 may be assigned to a single establishment provided the establishment maintains accurate records which distinguishes actors and performers whose routines are of a physical and strenuous nature, from the routines which are not physical or strenuous. Care should be exercised when assigning this classification as the actors and performers may be exempt from coverage as specified in RCW 51.12.020(9).

Applies to establishments or individuals engaged as musicians whose entertainment is not of a physical or strenuous nature, and who are not specifically covered by another classification (N.O.C.). For purposes of this classification, entertainment that is not physical or strenuous includes disk jockeys or members of a musical band playing at nightclubs, concerts, or other events, as well as members of the entertainer's road crew who set up or disassemble musical equipment or sound systems. Physical or strenuous activities which are not covered by this classification include, but are not limited to, ballet, dancing, skating, gymnastics or performing stunts.

This classification excludes actors, players, performers, entertainers or musicians whose routines or performances are of a physical or strenuous nature who are to be reported separately in classification 6620; players, entertainers or musicians hired by ((theatres))theaters performing nonstrenuous routines or performances who are to be reported separately in classification 6605-03; actors or performers performing nonstrenuous routines or performances who are to be reported separately in classification 6605-00; musicians performing nonstrenuous routines or performances at dance halls who are to be reported separately in classification 6605-04; entertainers engaged in television or radio company operations who are to be reported separately in classification 4502 and entertainers engaged in motion picture production company operations who are to be reported separately in classification 6608.

Special note: Classifications 6620 and 6605 may be assigned to a single establishment provided the establishment maintains accurate records which distinguishes musicians whose routines are of a physical and strenuous nature, from the routines which are not physical or strenuous. Care should be exercised when assigning this classification as the musicians may be exempt from coverage as specified in RCW 51.12.020(9).

Applies to establishments or individuals engaged as players, entertainers, and musicians who are hired by ((theatres))theaters to provide entertainment of a nonphysical or strenuous nature, and who are not covered by another classification (N.O.C.). For purposes of this classification, entertainment that is not physical or strenuous includes players, entertainers, and musicians in theatrical productions such as plays, programs, or operas. Physical or strenuous activities which are not covered by this classification include, but are not limited to, ballet, dancing, skating, gymnastics, or performing stunts.

This classification excludes actors, players, performers, entertainers or musicians whose routines or performances are of a physical or strenuous nature who are to be reported separately in classification 6620; actors and performers performing nonstrenuous routines or performances who are to be reported separately in classification 6605-00; musicians, N.O.C. performing nonstrenuous routines or performances who are to be reported separately in classification 6605-01; entertainers engaged in television or radio company operations who are to be reported separately in classification 4502; and entertainers engaged in motion picture production company operations who are to be reported separately in classification 6608.

Special note: Classifications 6620 and 6605 may be assigned to a single establishment provided the establishment maintains accurate records which distinguishes players, entertainers and musicians whose routines are of a physical and strenuous nature, from the routines which are not physical or strenuous. Care should be exercised when assigning this classification as the players, entertainers and musicians hired by a ((theatre))theater may be exempt from coverage as specified in RCW 51.12.020(9).

Applies to establishments engaged in operating dance halls that are not covered by another classification (N.O.C.). Establishments contemplated by this classification may provide only the dance hall facility, or may also provide disc jockey services or live musicians, singers, and/or dancers. Some charge a cover charge; some will allow customers to bring their own beverages and/or snacks. This classification applies to all employees including, but not limited to, bouncers, security personnel, attendants, and food and beverage servers.

This classification excludes entertainers or musicians whose routines or performances are of a physical or strenuous nature who are to be reported separately in classification 6620; and lounges or restaurants that provide entertainment for customers which are to be reported separately in classification 3905.

Special note: Care should be exercised when assigning this classification as the entertainers or musicians may be exempt from coverage as specified in RCW 51.12.020(9).

Applies to establishments engaged in the production of motion pictures. Elaborate sets are often constructed at the production sites and filmed with cameras mounted on large booms. This classification includes all employment such as, but not limited to, staff who design and construct the sets, actors and entertainers, stunt personnel, camera and lighting personnel, musicians, writers, costume designers, make-up artists, film editing, directors, producers, sales personnel, and clerical office employees.

This classification excludes video taping or production work conducted in a studio or on location for a television broadcasting company which is to be reported separately in classification 4502.

Applies to establishments engaged in providing marine appraisal services. Type of property appraised includes, but is not limited to, boats, yachts, marinas, wharves, and dry-docks. This service may be provided to a prospective buyer or to insurance companies for determining the value of a piece of property or for evaluating damage.

This classification excludes maritime appraisers who provide their service exclusively to insurance companies who are to be reported separately in classification 4903-09, and nonmaritime building appraisers who are to be reported separately in the classification applicable to the employer's business.

Applies to establishments engaged in providing boiler inspection services not covered by another classification (N.O.C.). These establishments inspect pressurized vessels, including air tanks and liquefied gas tanks, in addition to boilers. The inspections involve determining if a vessel conforms to safety standards in regard to their design, fabrication, installation, repair and operation. The inspections may take place at a manufacturer's plant or where the vessel has been installed. These inspections will generally be conducted at the request of a manufacturer or an insurance company. Activities of the inspectors include, but are not limited to, inspecting the safety devices and welding, performing tests to verify the condition, calculating allowable limits of pressure, recommending changes to correct unsafe conditions, and investigating accidents involving pressurized vessels.

This classification excludes boiler inspectors employed by a state agency or municipality who are to be reported separately in the appropriate state agency or municipality classification; boiler manufacturing, repair or installation which is to be reported separately in the appropriate manufacturing, repair or installation classification; inspectors of the manufacturing company who are to be reported separately in the classification applicable to the employer's business; and establishments who provide inspections exclusively for insurance companies who are to be reported separately in classification 4903-09.

Applies to establishments engaged in providing elevator inspection services. Types of devices inspected include, but are not limited to, elevators, escalators, ski lifts, amusement rides and moving sidewalks. The inspections involve determining if the device conforms to safety standards in connection with their design, fabrication, installation, repair and operation. The inspections may take place at the manufacturing plant or where the conveyance device has been installed. These inspections are usually conducted at the request of a manufacturer or an insurance company. Activities of the inspectors include, but are not limited to, reviewing the design, inspecting the mechanical and electrical features, inspecting the cables and guide rails, conducting time tests for speed, computing allowable load, observing running and drop tests to determine if brakes and safety devices are working properly, recommending changes to correct unsafe conditions, and investigating accidents involving conveyance devices.

This classification excludes elevator inspectors employed by a state agency or municipality who are to be reported separately in the appropriate state agency or municipality classification; repair or service to the elevator or conveyance device which is to be reported separately in the appropriate repair classification assigned to the type of conveyance device; inspectors employed by the manufacturer who are to be reported in the appropriate manufacturing classification; and establishments who provide inspection exclusively for insurance companies who are to be reported separately in classification 4903-09.

Applies to establishments engaged in providing inspection and valuation services exclusively for insurance companies. These establishments inspect damaged goods or property for loss valuation or to determine the value of an article or property the insurance company is underwriting. The property inspected includes, but is not limited to, personal property, real estate, and manufactured goods.

This classification excludes inspectors employed by a state agency or municipality who are to be reported separately in the appropriate state agency or municipality classification and boiler, elevator, or building inspectors or maritime appraisers who do not provide ((the)) service to insurance companies exclusively who are to be reported separately in classifications 4903-07, 4903-08, 4903-10 or 4903-06 as applicable and employees of insurance companies who are to be reported separately in the applicable classifications; and independent appraisal businesses not working exclusively for insurance companies which are to be reported in classification 6303.

Applies to establishments engaged in providing building inspection services. These establishments inspect all types of buildings including new or existing residential, commercial, industrial, multifamily, and temporary structures. The inspections may be provided for prospective buyers to determine the condition of the building, for contractors to assist in interpreting legal requirements and recommending procedures for compliance, or for insurance companies in assessing damages. Activities of the inspectors include, but are not limited to, inspecting all components of a building for structural soundness, dry rot, pest problems, energy efficiency, and compliance with grading, zoning and safety laws.

This classification excludes building inspectors employed by a state agency or municipality who are to be reported separately in the appropriate state agency or municipality classification and establishments who provide inspections exclusively for insurance companies who are to be reported separately in classification 4903-09.

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; and

• Estimating (nonconstruction) or appraising.

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;))Businesses engaged in providing inspections and valuations exclusively for insurance companies which are to be reported separately in classification 4903;

• 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:

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 coverage, these individuals must submit a completed optional coverage form to the department.

Applies to social workers and dietitians employed by home health care services agencies. These agencies provide care for the elderly, or individuals who need the continuous care and supervision that hospitals and nursing facilities provide, or people living with disabilities. Duties in this classification include teaching people with physical or developmental disabilities in their own homes to manage daily living skills to care for themselves, and assessing clients to determine level of care needed.

Teaching duties of social workers could include teaching clients to:

• Shop for groceries;

• Dress and use proper hygiene;

• Use public transportation;

• Attend medical appointments or go to work;

• Cook meals;

• Write checks;

• Budget finances;

• Do laundry;

• Access recreational or social activities.

Patients are referred to dietitians (also called nutritionists) by the patients' physicians. The dietitian assesses the patient's current nutritional status, and then develops a food plan to meet the patient's needs.

• Direct care of clients, such as: Cooking, cleaning, transporting and physically assisting clients, which is to be reported in the applicable classification;

• Nursing and home therapy services which are classified in 6110-00;

• Domestic servants who are classified in 6510;

• Chore workers who are classified in 6511;

• Home care services provided through the ((home care referral registry (HCRR)))consumer directed employer program, which are classified in 6512-00.

Special note: Subclassification 6303-21 should be assigned only to accounts that also have classifications 6110, 6511, or both.