(1) A TPA may be penalized under RCW 51.48.080 for deficiencies involving, but not limited to:

(a) Failure to maintain the requirements under WAC 296-15-425, 296-15-520, or 296-15-550. ((The penalty for the initial violation is five hundred dollars. The department may increase the amount up to one thousand dollars if the violation is a reoccurring problem.))Beginning July 1, 2023, as authorized by RCW 51.48.095, this penalty will be adjusted for inflation every three years based on the consumer price index (Seattle, Washington area for urban wage earners and clerical workers, all items compiled by the Bureau of Labor Statistics of the United States Department of Labor) and posted to the L&I website.

(b) The department will not assess additional penalties under RCW 51.48.017 when a TPA:

(i) Promptly self-assesses;

(ii) Correctly calculates the amount of the penalty;

(iii) Reports to the department; and

(iv) Pays to the worker a penalty not to exceed the greater of ((one thousand dollars or twenty-five))$1,000 or 25 percent upon discovery of the delayed payment, unless the department determines there is a reoccurring issue or establishes additional benefits have been delayed.

(2) A TPA may be directed to obtain training when reoccurring problems are identified. A TPA who refuses to obtain the training for their staff may be penalized when their failure to obtain training results in subsequent rule or statutory violations.

Washington law (RCW 51.48.030) requires every employer to make, keep, and preserve records which are adequate to facilitate the determination of premiums due to the state for workers' compensation insurance for their covered workers. In the administration of Title 51 RCW, the department of labor and industries has deemed the records and information required in the various subsections of this section to be essential in the determination of premiums due to the state fund. The records so specified and required, shall be provided at the time of audit to any authorized representative of the department who has requested them.

Failure to produce the requested records within ((thirty))30 days of the request, or within an agreed upon time period shall constitute prima facie evidence of noncompliance with this rule and shall invoke the statutory bar to challenge found in RCW 51.48.030 and/or 51.48.040. See WAC 296-17-925, 296-17-930, and 296-17-935 for additional reporting and recordkeeping requirements for qualifying volunteers, student volunteers, and unpaid students.

(1) Employment records. Every employer shall with respect to each worker, make, keep, and preserve original records containing all of the following information for three full calendar years following the calendar year in which employment occurred:

(a) The name of each worker;

(b) The Social Security number of each worker;

(c) The beginning date of employment for each worker and, if applicable, the separation date of employment of each such worker;

(d) The basis upon which wages are paid to each worker;

(e) The number of units earned or produced for each worker paid on a piecework basis;

(f) The risk classification applicable to each worker whenever the worker hours of any one employee are being divided between two or more classifications;

(g) The number of actual hours worked (WAC 296-17-31002) by each worker, unless another basis of computing hours worked is prescribed in WAC 296-17-31021 or 296-17-935;

(h) A summary time record for each worker showing the calendar day or days of the week work was performed and the actual number of hours worked each work day;

(i) The workers' total gross pay period earnings;

(j) The specific sums withheld from the earnings of each worker, and the purpose of each sum withheld;

(k) The net pay earned by each such worker.

(2) Business, financial records, and record retention. Every employer is required to keep and preserve all original employment time records for three full calendar years following the calendar year in which employment occurred. The three-year period is specified in WAC 296-17-352 as the composite period from the date any such premium became due.

Employers who pay their workers by check are required to keep and preserve all check registers and bank statements. Employers who pay their workers by cash are required to keep and preserve records of these cash transactions which provide a detailed record of wages paid to each worker.

(3) Recordkeeping - Estimated premium computation. Any employer required by this section to make, keep, and preserve records containing the information as specified in subsections (1) and (2) of this section, who fails to make, keep, and preserve such records, shall for the purpose of premium calculation assume worker hours using the average hourly wage rate for each classification, and also will be subject to penalties prescribed in subsection (4) of this section. The records compiled by the department shall be the basis for determining the average hourly wage rate: Provided, That the average hourly wage rate shall be no less than the state minimum wage existing at the time such assumed hours are worked. Notwithstanding any other provisions of this section, workers employed in a work activity center subject to Classification 7309 shall be reported on the basis of the average hourly wage.

(4) Failure to maintain records - Penalties. Any employer required by this section to make, keep, and preserve records containing the information as specified in subsections (1) and (2) of this section, who fails to make, keep, and preserve such record, shall be liable, subject to RCW 51.48.030((, to a penalty not to exceed five hundred dollars or two hundred percent of the quarterly tax for each such offense, whichever is greater)). Beginning July 1, 2023, as authorized by RCW 51.48.095, this penalty will be adjusted for inflation every three years based on the consumer price index (Seattle, Washington area for urban wage earners and clerical workers, all items compiled by the Bureau of Labor Statistics of the United States Department of Labor) and posted to the L&I website. Failure to make, keep, and preserve records containing the information as specified in subsections (1) and (2) of this section, for a single employee shall constitute one offense, for two employees two offenses, and so forth. The department may waive penalties for the first-time or de minimis violations of this section. Any penalty that is waived under this section may be reinstated and imposed in addition to any additional penalties associated with a subsequent violation or failure within a year to correct the previous violation as required by the department.

(1) Any employer who has failed to secure payment of compensation for their workers covered under this title will be liable, subject to RCW 51.48.010((, to a maximum penalty in a sum of one thousand dollars or in a sum double the amount of premiums due for the four quarters prior to securing payment of compensation under this title, whichever is greater, for the benefit of the medical aid fund)). Beginning July 1, 2023, as authorized by RCW 51.48.095, this penalty will be adjusted for inflation every three years based on the consumer price index (Seattle, Washington area for urban wage earners and clerical workers, all items compiled by the Bureau of Labor Statistics of the United States Department of Labor) and posted to the L&I website.

(2) If an injury or occupational disease is sustained by a worker of an employer who has failed to secure payment of compensation under this title, that employer may also be liable for the cost of such an injury or occupational disease at the time the claim for benefits is accepted by the department.

For the purposes of this section only the cost of such claim will be determined as follows:

The case reserve value shall be determined by the nature of the injury or occupational disease, the part of the body affected and other factors which will impact the cost including, but not limited to, age, education and work experience. The case reserve value will include actual costs paid to date and estimated future claim costs. No further adjustments or evaluations of the cost of the claim will be made for the purposes of this subsection after assessment for the cost of an injury or occupational disease is made by the department.

((Description:

0307-05 Wood, pellet or gas stove: Installation, service or repair.))

((1108-02 Glass tempering

This classification excludes the mining, digging or quarrying of raw materials which is to be reported separately in the applicable classification; glass merchants who do incidental grinding, beveling, silvering and cutting of glass who are to be reported separately in the classification applicable to the type of glass they specialize in; establishments manufacturing optical goods or telescopes, or perform precision grinding of blank or rough lenses which are to be reported separately in classification 6604; and establishments engaged in manufacturing stained or leaded glassware, or in melting or blowing glass which are to be reported separately in classification 3503.))

((Applies to establishments operating as warehouses for general merchandise. This merchandise belongs to a customer and is usually stored for long periods of time. Products typically involved are bulk, nonperishable materials which might include, but not be limited to:

• The warehousing of a manufacturer's own product which is to be reported separately in the manufacturing classification applicable to the work being performed.))

((Golf cart, motorcycle, and motorized sport vehicle dealers

3309-03 Motorized cycles and recreational vehicle dealers))

((3503-17 Pottery, earthenware, ceramics, porcelain or china: Manufacturing

This classification excludes the manufacture of enameled brick which is to be reported separately in classification 3501.))

((Beverage manufacturing, wine making, distilleries, breweries, malt houses, bottling, and yeast manufacturing

3702-05 Wine making and liquor distillation))

((3708-14 Hide or leather dealers

This classification excludes establishments engaged in the manufacture of small bags, packs, picnic bags or others generally carried on the person, which are to be reported separately in classification 3802; establishments engaged in the manufacture of plastic bags which are to be reported separately in classification 3510; and establishments engaged in the manufacture of paper bags which are to be reported separately in classification 6908.))

((4301-05 Glue, lard, or tallow: Manufacturing

Applies to establishments engaged in the slaughter of animals and the initial processing of meat. This includes purchasing livestock from individuals or feedlots, handling the livestock, maintaining pens, and butchering. The process requires the preparation of the animal carcass, washing of casings and the salting of hides or cooking of offal (waste). Tools and equipment used include hydraulic dropper/spreaders, stunning machines, hoists, knives, scissors, razors, scrapers, meat chippers and cleavers. The meat is then sold by hanging weight and distributed to buyers using box freezer or container trucks. This classification excludes establishments engaged in packing house operations which are to be reported separately in classification 4301-11; establishments engaged in manufacturing meat products which are to be reported separately in classification 4301-12; custom meat cutting which is to be reported separately in classification 4302; retail meat and poultry dealers which are to be reported separately in classification 3303; wholesale meat dealers and wholesale poultry processors/dealers which are to be reported separately in classification 3304.))

((Applies to establishments engaged in operating custom meat cutting shops. This classification primarily caters to customers who bring in an animal carcass (usually from a farm or hunt) for processing. Customers generally fill out a cut and wrap list which indicates how they want the meat cut such as steaks, flank, roasts, ribs, fillets, or hamburger, and how they want the product wrapped such as 3 steaks to a package, 5 pound roasts, 2 pound packages of hamburger, etc. Once the order has been filled to a customer's specifications, meat is stored in a freezer locker until the customer picks up the product. Custom meat cutting shops may also smoke meats and offer custom cut inspected meats (meaning inspected by USDA officials) for sale as locker packages or by the pound. It is also common for these establishments to sell related grocery items such as butter, eggs or milk. Tools and equipment include, but are not limited to, knives, razors, meat chippers, cleavers and hand carts.

This classification excludes establishments engaged in operating custom meat cutting shops only (no farm kill) which are to be reported separately in classification 4302-14 and custom meat cutting shop including farm kill which are to be reported separately in classification 4302-15.))

((Radio, television, recording, video production, and cable service providers; all other employees

4502-03 Cable companies, including homeowners' associations or cooperatives offering a central cable system))

((Administrative, clerical, reception, and sales staff working in a business office

Applies to the clerical office employees, not otherwise classified (N.O.C.), of organizations performing two or more services to support the local community and people in need. See subclassifications 1501-20 and 5308-20 for other community action organization classifications.))

((Classification 4907 Offender work opportunity

4907-02 Offender work opportunity – County))

((Applies to the hauling of logs from a logging side to a mill or storage yard.

Applies to employees of a logging company who haul the company's own logs. If the log truck driver has other duties during their work shift that are subject to the logging classification 5001, then the hauling of the logs must be reported in classification 5001 (WAC 296-17-31018 Exception classifications).))

(((to be assigned only by the reforestation underwriter)

This classification excludes manual conifer release (report in classification 5004-14).))

(((to be assigned only by the reforestation underwriter)

Equipment could include, but is not limited to, tanker trucks, bulldozers, and loaders.))

((5106-08 Blacksmithing; vehicle spring or auto bumper: Manufacturing

Applies to establishments engaged in the manufacture of products such as, but not limited to, engine parts, hooks, and chains by drop or machine forging. Forgings are produced by drop or trip hammers or forming presses. Drop or machine forging differs from blacksmithing or hammer forging in that closed impression dies are used. The forgings are produced by impact or pressure which forces the metal to conform to the shape or the die, one half of which is carried by the ram while the other half if held stationary on the anvil block. Trimming is done by the trimmer dies in a separate press which removes the surplus metal that squeezes out between the two sections of the forging die.))

((Medical and health services N.O.C.

6109-17 Radiology and MRI referral clinics))

((Gyms, fitness centers, martial arts training, baths or saunas

6204-04 Exercise facilities, gyms, fitness and martial arts centers, N.O.C.))

((6207-00 Carnivals - Traveling

This classification excludes establishments engaged in the manufacture of fireworks which are to be reported separately in classification 3701.))

((6208-00 Amusement parks; exhibition caves or caverns

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.))

((Lot and marina sales personnel for vehicles and pleasure craft; driving instructors, and limousine drivers

6301-07 Limousine drivers))

((Sales personnel with outside duties, messengers, insurance producers or surplus line brokers, social workers and dieticians employed by a home health care service

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

Classification 6306 applies to retail and wholesale sales, rental, and rent-to-own of new, used, or refurbished:

• Furniture for home and office;

• Billiard or pool tables;

• Household appliances such as refrigerators, freezers, stoves, range tops, trash compactors, washing machines, and clothes dryers;

• Pianos and organs;

• Audio visual equipment for indoor or outdoor events such as a seminar or concert including microphones, projectors, screens, sound systems, lights, and other incidental items;

• Large home entertainment systems and big screen televisions;

• Outside television antennas and/or satellite dish receiving units;

• Medical durable goods such as, hospital beds, wheelchairs, lift chairs, and similar patient appliances;

• Motorized exercise equipment; weight sets.

Stores that primarily sell items listed above often also sell or rent other goods such as:

• Lamps;

• Bedding and pillows;

• Floor and window coverings;

• Framed pictures;

• Art pieces and sculptures;

• Counter top appliances, such as mixers, blenders, microwave ovens, toasters and espresso machines.

• Cashiering;

• Fitting and demonstration;

• Delivery and setup of merchandise described by classification 6306;

• Most simple setup and installation and assembly work, such as connecting stereo components together, installing software, assembling a furniture kit for in-store display, or plugging in appliances;

• Incidental repair of furniture and equipment sold or rented by the store;

• Incidental repair and/or tuning of instruments sold by the store;

• Inventorying;

• Merchandising and stocking of store;

• Piano tuning;

• Packaging, addressing, and mailing articles for shipment;

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

• Sales work inside store;

• Store security and surveillance.

Excluded activities requiring additional classifications: See WAC 296-17-31017 Multiple classifications, for reporting and recordkeeping requirements. Classification 6306 excludes the following activities or operations:

• Worker hours engaged in out-of-store appliance or equipment repair, which are reported separately in classification 0607.

• Worker hours engaged in carpet installation, which are reported separately in classification 0502.

• Worker hours engaged in installation requiring low voltage wiring, which are reported separately in classification 0608.

• Worker hours engaged in installation requiring electrical wiring within buildings, which are reported separately in classification 0601.

• Worker hours engaged in installation requiring plumbing licenses, which are reported separately in classification 0306.

• Worker hours engaged in pharmacy activities, which are reported separately in classification 6406.

• Worker hours engaged in installation and assembly of modular office furniture and cubicle dividers, which are reported separately in classification 2002.

Excluded operations: Classification 6306 excludes:

• Stores selling any type of motorized boats or vehicles (other than durable medical goods), which are assigned to the applicable classification.

• Stores selling tires or parts for motorized vehicles, which are assigned to the applicable classification.

• Stores primarily selling merchandise included in classification 6406, but also selling some merchandise belonging in classification 6306, which are classified in 6309.

• Stores primarily selling merchandise belonging in a higher rated classification, which are assigned the applicable classification.

• Firms whose principal operations are installing low voltage electrical wiring for audio visual equipment or home theaters, which are classified in 0608 (even if they also sell the equipment or maintain a minimal inventory).

• Firms engaged in furniture refurbishing and subsequent sales, which are classified in 3603 and 3808.

• Firms engaged in medical oxygen tank rental and delivery, which are classified in 6406 and 1101.

• Piano tuning businesses not also engaged in the sale of pianos, which are classified in 4107.

• Stores renting a variety of equipment, party goods, inflatable tents, games, or other party supplies, which are classified in 1106.

• Stores that sell wind, string, brass, and percussion musical instruments and no pianos or organs, which are classified in 6411.

• Firms engaged in reconditioning of organs and pianos and subsequent sales, which are classified in 2906.

For administrative purposes, classification 6306 is divided into the following subclassification(s):

((6306-05 Entertainment and home theater systems, big screen television stores))

((Classification 6504 applies to stores primarily selling used merchandise that has been donated. Items for sale include:

6504-01 For-profit thrift stores))