General Auditing and Classification Information

A business whose operations include the dismantling of automobiles or other types of vehicles to recover usable/salable used parts shall be classified pursuant to the manner in which the employer is principally engaged.  Please see the “Definitions” Ruling and Interpretation for additional information on principally engaged. Below find examples of reasonably common classification assignments for such businesses:

1. Assign Code 815 to businesses principally engaged in dismantling automobiles or other vehicles to recover usable/salable used parts and the sale of such and new parts.
2. Assign Code 815 to businesses principally engaged in performing automobile repairs (e.g., mechanical or body).
3. Assign Code 818 to businesses principally engaged in the sale of new and/or used automobiles or other vehicles (e.g., trucks, motorcycles).
4. Assign Code 858 to businesses principally engaged in the collection, handling and sale of ferrous scrap metal.
5. Assign Code 859 to businesses principally engaged in the collection, handling and sale of nonferrous scrap metal.
6. Assign Code 860 to businesses dismantling automobiles or other vehicles and collecting and handling a combination of ferrous and/or nonferrous scrap metal and/or other secondhand commodities (e.g., paper, glass) with no principal line of merchandise.
7. Assign Code 934 to businesses principally engaged in the sale of new automobile parts. There may be payroll division with Code 815 when such businesses also dismantle automobiles when the following conditions are fulfilled: the automobile dismantling is conducted in a physically separate work area by separate employee crews and the majority of the automobile parts are sold to unrelated customers and are neither installed or used by the business for repair services.
8. Assign Code 825 to businesses principally engaged in the storage of automobiles (e.g., an impound lot) or in the parking of customers’ automobiles.

It is common for automobile service stations or gasoline stations to be engaged in both the sale of gasoline and the performance of automobile service or repair.  When both operations are conducted at the same or contiguous location, such establishment shall be classified on the basis of the principal operation:

When more than 50 percent of the gross receipts result from automobile service or repair, assign Code 815, Automobile Service Center.

When more than 50 percent of the gross receipts are from gasoline sales, assign Code 816, Automobile Filling Station.

An assignment of Code 815 or Code 816 is mutually exclusive for operations conducted at the same or contiguous location.

Please refer to the separate entries in the General Auditing & Classification Information section “Self-Service Gasoline Stations and Convenience Grocers” and “Truck Stops” for information on classifying such enterprises.

Payroll developed in the wholesale distribution of bakery products, including but not necessarily limited to bread, cakes, pies, cookies or crackers by a baker whose production facilities are located in another state or by an independent business (not related to a bakery) must be assigned to Code 924.

The operations contemplated by the term “ceramic shops” are manual with little or no mechanization. The major material is liquid clay known as slip. After mixing, the clay is poured or pumped into plaster of paris or rubber molds. When dry, the clay is now called green wave (an unfired shape or figurine) which is manually trimmed, inventoried or shelved for further hardening and curing, then sold to customers. Retail customers often paint or finish the green ware and return it to the shop for firing. A ceramic shop will often hold classes for students who will perform all of the above functions except for the firing. The ceramic shop may also sell paints, artist-type brushes, decals and ceramic hand tools.

Payroll developed in operations as discussed above shall be assigned to Code 928.

Written classification and audit inquiries may be submitted to the Classification & Field Operations Department of the Pennsylvania Compensation Rating Bureau (PCRB) in one of the following methods. PCRB’s preferred method is by means of PCRB’s website (www.pcrb.com) by clicking on “Classification” on the website’s main menu and then clicking on “Classification Inquiries.” PCRB will also accept written inquiries by means of facsimile or the USPS.

For the Classification & Field Operations Department of the PCRB to operate effectively, it is important that the PCRB have the full cooperation of every carrier, agent and employer in providing the essential information that the PCRB needs to make classification rulings and to otherwise be of service to you.

The information that the Classification & Field Operations Department needs to properly respond to inquiries from carriers, agents or employers on classification questions is:

• A complete listing of all Pennsylvania operating locations
• The exact name (as shown in Item 1 of the policy) and address of the business in question
• The PCRB file number (if available) of the business in question (see Rating and Underwriting Reference via the Application Login or “Classification inquiries”)
• A full and accurate written description of the business in question, including any available audits, loss control reports and/or insurance application information
• Reason why a change in classification is being requested, i.e., has a substantial change in the employer’s operations recently occurred.
• The name, title and telephone number of a management representative whom a PCRB field representative can contact to schedule an appointment with the employer (in the event that a field survey is necessary)
• Employer’s website address

The information that the Field Operations Department needs to properly respond to disputes concerning payroll allocation on a final audit is:

• A request in writing from the insured or the insured’s agent of record outlining the nature of the dispute.
• A complete and accurate description of the business operations during the policy term in dispute and if available a copy of the final audit as issued by the carrier.
• A complete listing of all employees being disputed including the names of each employee, a description of the duties of the employees during the policy term of the audit dispute and an explanation why the duties of the employees do not support the carrier’s assignment.

It should be noted that it is not the PCRB’s role to become involved in every dispute involving the allocation of a particular employee’s payroll to a given classification. Allocations of payroll are made by the carrier and should be explained by the carrier to the insured. Since the PCRB did not perform the audit, the PCRB does not normally have the relevant facts on which to base an opinion or render a decision. Issues/disputes of this kind should initially be referred to the carrier’s regional audit manager for resolution.

Upon receipt of the written inquiry the PCRB will determine whether the information presented is sufficient to determine the employer’s applicable classification. In those cases where the information provided is insufficient, the PCRB will usually schedule the employer for a field survey/special audit or issue a “Description of Operations Questionnaire.” Following the field survey/special audit or receipt of the completed questionnaire, the PCRB will issue a written ruling on the matter that will be communicated to authorized parties. These decisions are subject to further review as delineated in the “Appeals from Application of the Rating System Procedure” – Section 1, Rule XVI.

With respect to telephone requests, an official binding PCRB decision on classification/audit matters cannot be provided over the telephone. However, the PCRB will offer opinions as requested. To that end a carrier, agent or employer who telephones the PCRB on a classification/audit question should:

• Identify himself/herself and indicate the firm he/she represents;
• Give the name, address and PCRB file number (if available) of the employer in question;
• Be knowledgeable of the facts surrounding the situation and prepared to provide specific responses to any questions asked.

Please remember the PCRB is in a position to reply only to an employer, the authorized agent or carrier-of- record or another representative of the employer relative to the employer’s account (providing the PCRB has received a signed, recently-dated letter on the employer’s letterhead authorizing the representative to act on the employer’s behalf in the matter at issue).

Below find the class assigned to payroll developed in each of four different but common types of land clearing or right-of-way clearing or maintenance projects. Such class listing does not waive either the underwriting or payroll division rules delineated in Sections 1 or 2 of this Manual.

1. Assign Code 009 for tree cutting/felling by chain saw regardless of tree size and the incident removal of brush and/or stumps.
2. Assign Code 015 for tree cutting/felling by mechanized equipment regardless of tree size and the incident removal of brush and/or stumps.
3. Assign Code 609 for all methods of clearing or removing brush and/or stump removal not incident to tree removal including road construction.
4. Assign Code 005 for all methods of tree pruning, spraying (except aerial tree spraying, which is assignable to the applicable aircraft operation class) or trimming, including incident tree removal and all incident operations.
5. Assign Code 012 for brush or weed control using chemicals dispensed from portable or mechanical ground spraying equipment.

Commissions paid to commission salespersons shall be included in the audit of payroll for premium computation purposes, except that traveling and all other expenses of the salespersons in connection with their employment may be deducted provided the salespersons report such expenses and the insured maintains a definite verifiable record of them. Arbitrary flat percentages shall not be allowed under the provisions of this interpretation nor shall automobile depreciation be deductible as an item of expense unless such depreciation comprises a part of the mileage rate allowance.

A business principally engaged in computer and/or software consulting is assignable to Code 951 and to Code 953 as each classification may apply pursuant to the job duties of individual personnel of such businesses.

One typical workday scenario for computer and/or software consulting staff is the consultant leaves his/her place of residence in the morning and travels to a customer’s location, where the consultant will spend his/her entire day working on the customer’s computer and/or software issues. At the end of the workday the consultant leaves the customer’s location and returns to his/her place of residence. The duration or timing of such an assignment may vary from one to several days to indefinite.  Such persons do not engage in over-the-road sales solicitation or collection work.  As this is no different in relation to the typical workday for a computer person employed directly by the customer, the assignment of such consultant’s payroll is to Code 953.

In the event a computer and/or software consultant typically visits two or more customer locations in a typical workday, such separate consultant’s payroll is assignable to Code 951.

If the employer cannot or will not provide a sufficiently detailed picture of a computer and/or software consultant’s typical workday so the above procedure may properly be utilized, then the payroll of the consultant(s) shall be assigned to Code 951.

The above classification procedure is also applicable to separate staff training a customer’s staff in the use of software developed or purchased by the insurer employer for their customer(s).

It is the PCRB’s position that the payroll of drivers, chauffeurs or their helpers which cannot be allocated to a specific classification because they have duties common to more than one classification shall be assigned to the governing classification of the two or more classifications to which their work belongs.

The above ruling does not supersede any Manual rules found in Section 2 of the Pennsylvania Manual, nor does it supersede any Manual wording footnotes found in Section 2 regarding the allocation of payroll for the 800- series of classifications (Trucking and Storage Industry).

Example:

Insured X has approved classifications Code 0034, Animal Raising, and Code 865, Poultry and/or Fish Dealer/Processor. If insured X had separate crews of drivers that did not interchange their duties between the two operations, the separate crews would have their payroll allocated to the separate respective classifications.

If no such separate crew existed and the drivers, etc. have duties common to both operations, their payroll would be assigned to the governing classification exclusive of miscellaneous employee payroll.

 

A significant number of disputes occur as a result of the misclassification of executive officers’ payroll.  In an attempt to enhance the accuracy and consistency of the treatment of these issues by insurance companies, below find a series of questions that the PCRB believes will aid in the determination of the proper classification for executive officers.

• Who are the officers of the corporation for the policy period in question?
• Was each of these officers active in the business during the policy period in question?
• What were each officer’s exact job duties?
• How many hours a week (or what percentage of time) does each officer work in the store, shop, job site, farm, etc.?
• How many hours a week (or what percentage of time) does each officer spend in the basic classification work area, providing direct supervision and/or giving instructions to employees?
• How many hours a week (or what percentage of time) does each officer spend out of the office for sales calls, meetings or other similar purposes?

Please also see Section 1, Rule IX, Paragraph A., 5. “Assignment of Payroll” that advises an executive officer shall be classified in the same manner as any employee. Also please see the “Regular and Frequent” entry in the General Auditing & Classification Information section.

The assignment of Code 951 is applicable only to executive supervisors who do not exercise direct supervision of construction or erection operations. Code 951 is not applicable to supervisors permanently located at a given job location until the completion of that job. Code 951 is also not assigned to the payroll of any individual who is directly in charge of construction workers (including general laborers) at a specific job location.  Any person who is directly in charge of construction work or construction employees at a specific job location shall be assigned to that job classification or, if more than one classification is assigned, to the highest-rated classification for that job if separate payroll records are not maintained.

The job duties of an executive supervisor would include time spent in an office and visits to a job site. Such supervision given by an individual classified under Code 951 must be indirect; i.e., through another person such as a superintendent or foreman. The executive supervisor has overall managerial responsibility for the various projects. That responsibility may include making arrangements for the procurement of materials and/or the delivery of supplies, procurement of subcontractors, maintenance of construction timetables, visits to job sites to keep track of job progress, conferring with clients, architects and engineers, and traveling to and from the company’s headquarters.  It also contemplates clerical office exposure and the part-time hazards of walking and climbing around on job sites. Typically, the use of the classification is applicable to large construction companies that have at least one level of supervision between the executive supervisor and the worker. It is also applicable in situations where numerous smaller projects are in progress simultaneously and the executive supervisor has the managerial responsibility for all of them.

An exception to the above-stated application would apply to a job superintendent responsible for and physically located at a specific job site where all operations are subcontracted to unrelated concerns. In this instance, the contractor has no construction workers at the job site, and the superintendent cannot exercise direct control of the subcontractor’s employees. Therefore, in this circumstance the job superintendent should have his/her pay- roll assigned to Code 951.

The processing of frozen foods shall be assigned to the classification which would apply if the product was not frozen. This ruling is made as the application of cold to either chill or freeze food products is common to a number of food processing classifications. It has been determined that the freezing operations of themselves do not change the fundamental characteristics of the risk.

The two classifications applicable to hotel/motel operations are Codes 973 and 945.

Code 973 shall include all operations performed by hotel or motel employees except for separate food service and beverage staff(s). Employees assigned to Code 973 include but are not necessarily limited to: front desk employees,  persons  engaged  in  the  operation  of  newsstands,  candy  or  cigar  shops  or  similar  activities, personnel operating or maintaining indoor or outdoor swimming pools, the golf course(s), video game room, the health or fitness club, tennis courts or other hotel or motel guest amenities, maids, housemen, inside or outside maintenance, store workers, barbers, laundry workers, employees performing concierge services (i.e., arrangements for tours, theater tickets or the rental of automobiles), or opening boxes and/or bags and laying out pre-packaged food or beverages and/or precooked  food  (including heating of  the precooked foods in a microwave oven) and/or making coffee for a continental breakfast where there is no other food service or beverage operations.

Separate staff exclusively engaged in the hotel’s food service or beverage operations shall be classified by Code 945 which includes but is not necessarily limited to: waiters or waitresses and their assistants, cooks, kitchen help, bartenders, cashiers, restaurant managers, musicians or entertainers. On the auditing procedures for tips and musicians or entertainers, see Section 1, Rule V.

Payroll developed by interchanging hotel and hotel restaurant employees shall be assigned to Code 973 or to Code 945, whichever has the higher value.

OPERATIONS ALSO INLCUDED:

1. Religious retreats.
2. Temporary or short term lodging facilities for families of seriously ill or injured children who are hospitalized (e.g., a Ronald McDonald House).

OPERATIONS NOT INCLUDED:

1. Please refer to the Ski Resorts entry in the General Auditing & Classification Information section for the classification procedure for such businesses.
2. The businesses of a concessionaire or independent contractor operating on the premises of a hotel or motel will be classified on the merits of their operations.
3. Assign Code 953 to employees of the hotel or hotel restaurant exclusively engaged in clerical office duties.
4. Assign Code 981 to payroll developed by slot machine gambling operations when conducted in a
5. physically separate department by a separate staff.

Determinations of Premium Obligations Where Questions of Workers’ Compensation Coverage Status Arise

Questions involving whether a person is an independent contractor, owner/operator or employee fall into an area of law for which consideration of many factors is potentially required in order to consider their entitlement to workers’ compensation benefits.  The Pennsylvania Compensation Rating Bureau (PCRB) does not make and has no authority to make determinations regarding the entitlement of any person(s) to workers’ compensation benefits arising out of the course of activities related to any business or other entity, whether any such person has or has not been injured in the course of such activity.  However, the PCRB will exercise authority over the issue of whether or not premiums are due for an individual(s) whose workers’ compensation coverage status is questioned.  This authority is different from finding independent contractor, owner/operator or employee status and is also different from establishing eligibility/ineligibility for benefits arising out of an accident or disease that has occurred or may occur, determinations which the PCRB specifically cannot render. The PCRB’s procedure in making determinations regarding premium obligations is as follows:

A carrier insuring an entity to which a sole proprietor, partner, corporate officer or LLC member provides services as a subcontractor may not collect premium from the insured entity for that subcontractor if the subcontractor has or had a standard workers’ compensation insurance policy covering the subcontractor for the entire period during which services were provided.

Further, a carrier insuring an entity to which a person provides services as a subcontractor may not collect premium for that person if the subcontractor is working in the capacity of an officer of a corporation in providing such services and has executed a written election not to be subject to the Workers’ Compensation Act.

A carrier insuring an entity to which a person provides services as a subcontractor which does not meet either of the above criteria precluding collection of premium may either waive or collect premium from the insured entity for that subcontractor. Carrier decisions to waive or collect premium in such instances may consider a variety of factors, such as but not necessarily including or limited to the right of direction and control of the subcontractor by the entity to which services are provided, whether or not the subcontractor maintains general liability insurance coverage applicable to the services being provided or the possibility that the subcontractor may have additional workers.  Carrier decisions in such regard are not subject to review by the PCRB.

Both a manufactured (mobile) home and a modular home are produced in a factory, but there are differences between each type of home.  The manufactured/mobile home is towed on a permanent steel chassis, which remains a structural part of the home throughout its service life. It has a non-removable steel chassis, while a modular home does not. Although required to be secured to the ground, the manufactured home retains its permanent steel chassis, and, thus, while many are not relocated, a manufactured home may be relocated and is considered removable and relocatable.

A modular home is transported to the installation site on a flat-bed truck. Modular homes are placed upon foundations, often with the use of a crane. Modular homes are not relocatable and are considered a permanent structure once placed upon a foundation.

The production of a manufactured/mobile home is assigned to Code 451. Code 305 is used to classify the production of a modular home.

Assign Code 818 to a manufactured home setup or warranty service, whether by the dealer or a specialist contractor.

Assign Code 652 to modular home setup, warranty service, remodeling, or repair, whether by the dealer or a specialist contractor.

Section 1, Rule V., B. 2. o. Of the Manual remuneration includes: Adjustments necessary to bring employees to the federal minimum wage as reported by the United States Department of Labor.

Section 1, Rule V., B. 3.  e. of the Manual remuneration excludes: tips and other gratuities received by employees.

All carriers are required to include an adjustment to equal the current federal minimum wage.  The auditor should verify if all employees’ wages equal or exceed the federal minimum wage.   If not, the following adjustments should be made, assuming the current minimum hourly wage for tipped employees is included.

1. Determine the average number of full-time tipped employees and the normal work hours.

• 35 hour week x (the difference of federal minimum wage and the tipped employees’ minimum wages) x number of tipped employees x 52 weeks.

2. Determine the average number of part-time tipped employees and the normal work hours.

• Number of hours x (the difference of federal minimum wage and the tipped employee minimum) x the number of tipped employees x 52 weeks.

The following guidelines have been developed to aid in the classification of employees of a typical nursing home/personal care home. Proper documentation on audit worksheets should be added whenever exceptions are made to these guidelines. These guidelines, to varying degrees, affect the following basic business classifications.

Code 960, NURSING AND CONVALESCENT HOME
Code 974, RETIREMENT OR LIFE CARE COMMUNITY
Code 979, RESIDENTIAL CARE FACILITY FOR THE ELDERLY – NON MEDICAL

Nursing home/personal care home employees do not have to provide actual “hands on” care to the patients and/or residents in order to have their payroll assigned to one of the above basic classifications.  The object of the classification system is to group insureds into classifications so that the rating value for each classification reflects the exposures common to such distinct business enterprise (See Section 1, Rule IV. C. 2. and 3.).  It is the business of the insured that is classified within Pennsylvania, not the separate employments, occupations or operations within the business.

Employees who typically comprise the basic classification for a nursing home/personal care home are activity staff, beauticians or barbers (usually remunerated through a 1099), dining room set-up and servers, drivers, food preparation,  housekeeping,  laundry,  maintenance/plant  including  supervisors,  nurses  (registered  nurses, licensed practical nurses), nurses’ aides including certified nurses’ aides, security and therapists (physical and speech).

Employees typically considered office employees include accounting, accounts payable and accounts receivable, business office, bookkeeping, finance, human resources and the office manager. These employees must work in a physically separate office as defined in Section 1, Rule IV, B. 2.

Codes 960, 974 and 979 are “all employees except office,” which means none of the three classes permit payroll division with Code 951, Outside Sales.

With the above statements in mind, the payroll of nursing home/personal care home employees should be assigned in the following manner.

ADMINISTRATOR/EXECUTIVE DIRECTOR 

Each facility has a licensed nursing home or residential care facility administrator on site that is in charge of all operations at the facility. This employee prepares budgets, reviews departmental reports, answers questions of department managers, deals with licensing issues, handles public relation issues, attends community events to promote the business, deals with HIPAA (Health Insurance Portability and Accounting Act) regulations, deals with employee benefits, handles safety issues, interprets procedures and writes plans of correction based on inspection reports.  The employee will attend patient care plan meetings. The administrator will make rounds of the facility on a regularly scheduled basis. Each round will vary as to the amount of time it takes depending on the size and complexity of the facility.  During rounds, the administrator walks the halls to observe that the patients are being cared for properly, there are no unreported maintenance issues, no housekeeping issues that are unsolved, the floor has adequate staffing and the general appearance of the facility is acceptable.

The administrator will stop and talk to residents to inquire if they have any complaints or concerns and will talk to family members and volunteers who may have questions.  The administrator will not provide direct patient care. By state law (for nursing homes only) the administrator is not permitted to feed, toilet, administer medications or provide any other type of care.  However, administrators do keep track of how often nurses see patients.

Administrators should have their payroll assigned to the applicable basic classification, as they are regularly exposed to the operative hazards of the nursing home/personal care facility.  An administrator’s job duties fall beyond the Manual definition of a clerical office employee.

ASSISTANT ADMINISTRATOR 

An assistant administrator performs many of the same job duties as the administrator and reports directly to the administrator in the chain of command.  This employee may assist the administrator in the preparation of budgets, review departmental reports, answer questions of department managers, deal with licensing issues, handle public relation issues, attend community events to promote the business, deal with HIPPA regulations, deal with employee benefits, handle safety issues, interpret procedures and write plans of correction based on inspection reports. The employee will attend patient care plan meetings. The assistant administrator may make rounds of the facility on a regularly scheduled basis.  Each round will vary as to the amount of time it takes depending on the size and complexity of the facility.

During rounds, the assistant administrator may walk the halls to observe that the patients are being cared for properly. They make sure no restraints are being used, there are no unreported maintenance issues or housekeeping issues that are unsolved, the floor is adequately staffed, and the general appearance of the facility is acceptable.

The assistant administrator may stop and talk to residents to inquire if they have any complaints or concerns and may talk to family members and volunteers who have questions. The assistant administrator may or may not provide direct patient care.  Assistant administrators should have their payroll assigned to the appropriate basic classification, as they are regularly exposed to the operative hazards of the nursing home/personal care facility. See the Regular and Frequent Ruling and Interpretation for the definitions of “regular and frequent.”  An assistant administrator’s job duties fall beyond the Manual definition of a clerical office employee.

ACTIVITY DIRECTOR 

The activity director is in charge of the recreational and educational activities at a nursing home. The director is responsible for setting up a schedule, ordering supplies for the activities and, in some of the smaller homes, directly supervising the employees and residents in activities. If the activities director has a physically separate office, does not participate nor directly supervise (this activity may be done by the assistant activity director) and has no regular job duties in or about the facility, then the employee may have their payroll assigned to the clerical office classification. However, most activity directors are responsible for organizing and directly supervising the event and are present at the activity, whether it is on the premises of the facility or at another location (e.g., a shopping trip to a local mall). As such, the payroll of an activity director is generally assignable to the basic classification.

ADMISSIONS DIRECTOR

The admissions director may have alternate job titles such as marketing director, social services director, public relations director or director of development.  Regardless, this employee is responsible for working with residents and their families and guiding them through the admission process. The admissions director will explain facility rules (such as marking clothing with a name) and patients’ rights. The employee will work with family members who wish to bring furniture from home. The admissions director may explain that all electrical appliances must be inspected for safety (no frayed wires). If a family member visits and removes money from the patient, the admissions director must determine if an abuse situation exists and deal with reporting suspected abuse. If a patient is not happy with his room or roommate, the admissions director will determine if the patient can be transferred to another room. The admissions director may coordinate family concerns with department heads.  If two family members disagree about treatment or how a resident’s money is being spent, the admissions director may intervene and mediate the situation. They may do the charting about the social interactions of residents. They will plan care meetings. If a patient passes away or moves to another facility, the admissions director may contact the family about collecting personal belongings. They may also work with the ombudsman (a representative from the Area Agency on Aging that is assigned to a nursing home).  The payroll of an admissions director is usually assigned to the basic classification, as they regularly spend time in and about the facility even though their primary job duties keep them in a physically separate office.

CASE MANAGER 

This position is responsible for the management of the rehabilitation department. The employee directs the therapists and gathers information on the level of care needed for minimum data sets (MDS) forms.  The case manager maintains the resident’s logs and compares the amount of therapy provided to the resident’s care plan. The case manager usually does not provide any rehabilitation services. This employee may go to the local hospital to screen charts for potential admissions. The case manager deals with discharge personnel in hospitals regarding possible admissions to their facility.  While at the nursing home, the case manager attends managed therapy meetings to see that therapy provided to a resident is in compliance with Medicare regulations. The employee prepares communications bulletins and may write articles for a news bulletin that is distributed to residents. The case manager meets with physicians and social service workers to determine if any residents in the assisted living facility need to be moved to the nursing home. The employee is responsible for “hospitality” when new residents move into the independent living cottages, if such a facility exists. The employee will go to the resident’s apartment and visit with the resident, answering any questions while providing information about the facility.

The case manager’s payroll is properly assigned to the basic classification.

CENTRAL SUPPLY CLERK

This employee is responsible for distributing supplies to the floors and assuring the cupboards are stocked with needed supplies. This employee orders the supplies and determines what is chargeable to a resident. The employee will physically stock the supplies in the units. Some facilities title these employees as purchasing, but they work in an area similar to a storage office. They will make deliveries of supplies throughout the facility, and their control/purchasing is confined to a computer, paperwork or reports. Their offices are usually locked, since this is also where the supplies are located. The central supply clerk’s payroll is properly assigned to the basic classification.

CHAPLAINS 

A chaplain is a clergyman in charge of the nursing facility’s chapel. They organize and conduct religious services for the residents of the nursing facility. They will visit non-ambulatory and ambulatory facility residents to provide spiritual counseling, individual worship services and counseling or just to see how a resident is faring in the facility.  They may conduct in-room communions and/or last rites. Their payroll is properly assigned to the basic classification.

CLINICAL DIRECTOR

The clinical director’s job responsibilities usually involve updating and reviewing the resident’s medical and treatment charts and folders. If they review medications and treatments on the floor or in the resident rooms or if their offices are not physically separate from all other areas of the nursing facility, the payroll of the clinical director is properly assigned to the basic classification.

DIETARY COORDINATOR/DIRECTOR/MANAGER/SUPERVISOR 

In some of the larger facilities there is a dietary director/manager who maintains all the dietary requirement records for the residents. Many residents have varying dietary needs, so this is often a critical position. This employee would develop menus and oversee food service. This may entail charting the intake of food by the residents.  These duties are performed both in the office and on the floor. The duties also involve supervising the preparation of the food and trays.  The employee may directly supervise dietary preparation in the kitchen or walk throughout the facility when meals are served to see that the patient is given their dietary requirements. The payroll of the dietary coordinator/director/ manager is properly assigned to the basic classification.

DIRECTOR OF NURSING (DON)/ASSISTANT DIRECTOR OF NURSING (ADON) 

Director of Nursing – This position is usually charged with overseeing the entire nursing/care functions of the facility.  This employee is responsible for administering the nursing program to maintain standards of patient care and advises medical staff, department heads and administrators in matters related to nursing service.  The employee analyzes and evaluates the quality of care administered by the nursing staff and visits residents routinely. The DON does not do any actual patient care.

Some nursing directors move throughout the facility all of the time, while others less so, spending the majority of their time in the office.  This employee performs the scheduling of the nursing staff, all of the interviewing and hiring of nursing staff, and may review the unit manager’s work.  Due to the nature of the employee’s work and the fact that the position requires the visitation of residents and the evaluation of the quality of care administered by the nursing staff, the payroll of the director of nursing is properly assigned to the basic classification.

Assistant Director of Nursing – This position is responsible for directing the programs of the facility. The employee collaborates in composing and implementing nursing policy, practice and quality assurance throughout the nursing department. The employee does not do any actual patient care.  Primarily, their job responsibilities center around the quality assurance programs. The ADON makes sure all nursing departments are ready for the state survey.  The ADON develops the schedule for quality assurance audits and reports. The employee directs, supervises and assigns projects and programs to a quality assurance analyst. The employee develops and directly oversees the Infection Control Program and reports monthly to the Quality Assurance Committee.  The employee may oversee the wound care program and plans, organizes and oversees the staff development program, reviewing the accurate recording of in-service attendance records.  The ADON interacts on a regular basis with patients, families, physicians and facility employees and makes tours throughout the facility on a daily basis.

In smaller facilities the ADON is the supervisor on the floor. Their time may be split between directly supervising the registered nurses and other nursing staff and completing paperwork in an office.  The payroll of the ADON is properly assigned to the basic classification.

FACILITIES MANAGER 

This employee, in most cases, has direct floor duties and can do hands-on repair and maintenance work in and about the facility. This employee will also conduct evaluations for major repairs and improvements to the facility that requires the hiring of outside contractors. The payroll of the facilities manager is properly assigned to the basic classification.

HOME HEALTH AND/OR HOME CARE OPERATIONS

Payroll developed by separate staff(s) performing home health and/or home care services shall be separately classified to either Code 942 or to Code 943 as provided for in the Pennsylvania Workers Compensation Manual.

INVENTORY CONTROL COORDINATOR

This employee is responsible for the control and purchasing of hard goods and supplies used throughout the facility. This employee usually has no hands-on responsibilities on the facility floor. They usually make no deliveries of supplies throughout the facility, and their control/ purchasing is confined to data entry, computer- generated reports and related paperwork. The payroll of the inventory control coordinator is properly assigned to Code 953, Office, if their job duties are confined to working in a physically separate office.

MEDICAL DIRECTOR/MEDICAL COORDINATOR 

The medical director is usually a physician who is only active on a part-time basis.  When he/she is active, the duties are usually visiting patients and making rounds within the nursing home.   The payroll of the medical director is properly assigned to the basic classification.

MAINTENANCE DISPATCH 

These employees’ major job responsibility is to dispatch work assignments to the maintenance employees. These employees are found in larger type facilities. They spend no time performing maintenance work in most facilities.  They do not supervise the maintenance employees or do any inspections of the facility. As long as their job duties are confined to working in a physically separate office, their payroll can be assigned to Code 953, Office.

MASHGIAH 

A mashgiah is an Orthodox rabbi or a person appointed by such a rabbi whose responsibility is to prevent violations of Jewish dietary laws by inspection of facilities where food assumed to be kosher is prepared for the public. These employees enter the kitchen area of the facility to make sure certain foods are kosher. This job position is usually found in faith-based facilities, and their payroll is properly assigned to the basic classification.

MEDICAL RECORDS CLERK/WARD CLERK 

The medical records clerks are normally responsible for updating resident’s charts and medical records.  If they spend no time picking up and dropping off charts at either nurses’ stations or resident’s rooms, assign Code 953. If they perform any of the above duties on a regular basis on the floor, their payroll is properly assigned to the basic classification.  If they complete their updates in a physically separate office, their payroll may be assigned to Code 953, Office.

In larger facilities, medical records clerks usually work in the business office and use computers to maintain a database of records.  In such circumstances assign Code 953.  In the smaller facilities, they may have other duties, including the delivery of medical supplies to nursing stations and interchanging labor as a central supply clerk.  If a medical records clerk has any of these duties, then their payroll should be assigned to the basic classification.

NURSING SECRETARY/SCHEDULER

These employees do the paperwork for the nursing department, such as typing, scheduling, filing and other administrative support job duties. Their payroll may be assigned to Code 953, Office, if they work in a physically separate office and have no floor exposure. If they have their desks at the nursing station that is on the floor, their payroll would be assigned to the basic classification.

RECEPTIONIST 

Receptionists answer incoming telephone calls and direct them to the correct extension. This employee also greets incoming visitors and asks them why they are at the facility. They may direct all visitors to sign a guest register. They may assist staff in making photocopies. They may maintain the postage meter and be responsible for outgoing mail. They will observe resident safety while the resident is in the lobby area.  If one of the residents needs assistance or falls while in the lobby area, the receptionist may quickly page an aide to assist the resident rather than walk out to the resident herself. The receptionist will type the necessary information onto a new resident’s identification bracelet. They may accept payment from residents or their representatives. They may walk out to the office, lobby and/or solarium to lock up the doors at the close of each day.

Receptionists in a nursing home facility not only greet and direct visitors but also provide a measure of security/safety for wandering residents and for visitors as well. Such an arrangement invariably precludes the assignment of Code 953, Office. Their payroll is properly assigned to the basic classification.

REGISTERED NURSE ASSESMENT COORDINATOR (RNAC) 

These employees are responsible for the completion and accuracy of the resident care planning process and monitoring level-of-care changes and determinations. The RNAC oversees the development and implementation of individual resident care plans and ensures the resident’s reaction and ongoing development. They are case managers for the residents and compile all of the paperwork that is needed to deal with the Health Maintenance Organizations that reimburse the nursing home for the treatment and care of the resident. They input all types of information into the computer about the activity level of all of the residents. They complete forms called Minimum Data Sets (MDS) for each new admission to the facility. They complete MDS reviews on each resident on a quarterly basis, as well as an annual MDS.  The form must be completed for each resident at least once a quarter and at other times required by Medicaid, including admission and change in condition.

The RNAC compiles this information by a comprehensive review of the patient charts.  The form contains many different sections used to determine how well the resident is able to function.  The dietician is responsible for completing the dietary section. The physical therapy department will complete a range of motion study and will complete the appropriate section of the form.  The form is a comprehensive form that gathers information about the resident’s social skills, communication skills, activities, cognitive skills, nutrition, vision and activities of daily living.  Nursing homes are reimbursed by Medicare for the care of a patient based on the condition of the patient. If a patient is in a severe condition and requires extensive medical condition, Medicare will reimburse more funds for that patient than a patient who is more self-sufficient. The RNAC writes up reports to be submitted to Medicare.  These employees will visit nurses’ stations to discuss the patient’s progress with a DON or nursing supervisors.  The RNAC will take the patient’s charts back to their office to type up the reports. These individuals will also visit patient rooms to do evaluations.

The amount of time an RNAC spends working throughout the facility varies.  An assessment nurse has to assess the patient, and different department heads complete parts of the form, but the RNAC signs off on the form.  The RNAC places his/her license at risk by signing a form verifying the data is correct.  For example, if a report states a patient has bedsores, the RNAC will go on the floor and physically turn the patient over to verify this is correct. Direct observation of the resident, as well as communication with the resident’s direct caregivers across all shifts, are essential for the RNAC to complete their job according to the Resident Assessment Instrument User’s Manual, a manual issued by the Federal government regarding the MDS.  Based on the above information and job duties, the payroll of RNACs is properly assigned to the basic classification.

RESTORATIVE PROGRAMS DIRECTOR 

This employee is responsible for making sure that the residents eat regularly, walk and engage in the therapy that is provided by the insured’s restorative aides. The employee will go out to see the residents and test them and regularly walks around the facility.  Part of the employee’s job responsibilities requires the employee to walk, lift and bend. The restorative programs director directly supervises the restorative aides and reviews them doing their jobs. Their payroll is assigned to the basic classification.

STAFF DEVELOPMENT/IN-SERVICE TRAINING COORDINATOR 

These employees are registered nurses and are the “clinical experts.” When a new employee is hired, these employees will do an orientation with the employee. They review corporate compliance, explain workers’ compensation and infection control, and introduce the employee to his manager. They verify that all forms are completed as required for the new hire. They attend “stand-up meetings.”  These are meetings that occur at the change of a shift. The employees completing their shift will explain any changes in a resident’s condition to the new shift. These meetings used to take place at the nursing station, but, due to HIPPA regulations, they are now held in an activity room.

They are responsible for assuring the staff’s credentials and licenses are up-to-date. They assure nurses have the correct number of continuing education credits. They arrange for educational classes to be provided to employees.  They may arrange for the maintenance department to provide information in a classroom setting on fire safety and the correct operation of a fire extinguisher. They may arrange for housekeeping to conduct a class for staff on infection control.  They will gather information from the floor supervisors verifying nurses have met IV competencies (inserted the correct number of IVs successfully in the correct amount of time).

They regularly spend time doing classroom teaching of employees. They will teach and provide instruction classes on hand-washing techniques, resident safety, wound care and proper lifting mechanics.  Their payroll is properly assigned to the basic classification.

STAFF COORDINATOR

This employee would only work from their office completing staffing schedules for the various departments. Their main job duty is to make sure there are enough employees for each shift.

If they have no other job duties and their scheduling work is done in a physically separate office, then the payroll of these employees may be assigned to Code 953, Office.

TRANSPORTATION DISPATCHER 

Some of the larger facilities have employees who sit in an office and schedule transportation for the residents for shopping, doctors’ visits and family visits. If the employee has no other job duty and their scheduling work is done in a physically separate office, then their payroll may be assigned to Code 953, Office.  If the employee regularly engages in driving the residents to and from their destinations, their payroll is properly assigned to the basic classification.

UTILIZATION MEDICAL REVIEWER 

These individuals review charts from medical records for the doctors to determine patient medical needs.

These individuals work in enclosed offices and usually have no floor duties. If their work is done in a physically separate office, then the payroll of these employees may be assigned to Code 953, Office.

UNIT CLERK/SECRETARY 

This employee is responsible for ordering supplies for the nursing department and checking secretarial notes for quality. The unit clerk will code bills for insurance companies, Medicare and Medicaid. These employees may work on the nursing home floor at a desk behind the nursing stations, or they may work in a physically separate office.  Their responsibilities include maintaining all unit records of the patient residents. The employee answers, the phones, schedules medical appointments for residents on the unit and marks files if a resident leave the facility.  The employee coordinates all labs and doctor appointments by telephone.

They call for transportation for all of the appointments and perform chart-thinning work according to the nursing home’s policy. They maintain all forms and active files and coordinate all lab orders by telephone. They fax paperwork to pharmacies and physicians and complete admission/readmission checklists for each admission.

This employee is responsible for the secretarial work on the unit. The employee assures doctor’s orders are placed in the patient’s chart. The employee may work at a desk in the nursing station on the floor or may be in a physically separate office.  If the employee has no regular job duties on the nursing room floor and works in a physically separate office, then their payroll may be assigned to Code 953, Office.  If they work on the nursing home floor at a desk behind the nursing station, then their payroll should be assigned to the basic classification.

VOLUNTEER COORDINATOR

The coordinator who has no duties/supervisory responsibilities over the volunteers on the floor, who simply schedules and coordinates volunteers’ activities, can be classified as clerical. They usually work in an enclosed office. Many coordinators simply spend their time on the telephone recruiting volunteers or asking them to come in on a particular day. If they have no regular job duties in or about the facility and they work in a physically separate office, their payroll should be assigned to Code 953. Those volunteer coordinators who supervise volunteers on the floor should have their payroll assigned to the basic classification.

Per Diems refer to a specific amount of money that a business provides to an employee to cover living and traveling expenses in connection with work.  To the extent that specific documentation is not available for substantiation of per diem expenses in accordance with Manual rules (see Section 1, Rule V, and F.) per diem expense reimbursement payments are included as remuneration for premium computation purposes.

Certain Internal Revenue Service (IRS) procedures allow for employer deduction of per diems paid to employees under the terms of a “nonaccountable plan.” This type of plan does not require actual receipts for the expenses covered by the per diems.   Exclusion of per diems under a “nonaccountable plan” from remuneration for premium computation purposes is solely a matter for carrier review and determination.  Disputes emanating from insuring carrier’s determinations in the area of nonaccountable IRS per diem plans are not subject to PCRB review and resolution.

Payroll developed in the two types of erection jobs cited above will be classified in the manner indicated below.

Code 608 is applicable to the building of concrete flooring or padding for one or two-story structures. Code 609 is applicable to site preparation and to any excavation.  Code 654 is the proper classification for the building of concrete flooring or padding for structures of three stories or higher. Payroll developed in the erection of the prefabricated metal building framework is assignable to Code 655.  Installation of sheet metal siding, roofing or interior work for a prefabricated metal building or the erection of metal or fiberglass silo sections is assignable to Code 651. Electrical work is assignable to Code 661 and plumbing installation is assignable to Code 663.  For the silo erection Code 675 is proper for payroll developed in the installation of conveyors or other materials handling equipment or for the service and/or repair of such. Other trade classifications may be extended as warranted.

Prevailing wage statutes, including but not necessarily limited to the Davis-Bacon Act or the Pennsylvania Prevailing Wage Act stipulate that contractors under Federal or State government contracts, respectively, are required to pay specific minimum wage rates and specified fringe benefits. When auditing these types of employers, all wages paid to the employees are included for premium calculation. Fringe benefits that are required may only be excluded from premium calculation when paid to group insurance plans, pension plans or third party administrators. If fringe benefit payments are paid directly to an employee the fringe benefit amount is treated like wages and is included for premium calculation.

For classification purposes, the term “assembly” refers to the joining together of prefabricated component parts purchased from unrelated concerns to form a described product. Some portion of the purchased prefabricated component parts may be modified prior to assembly. When a specific assembly classification does not exist for a certain product, the assembly of such product shall be assigned to the manufacturing classification which most accurately describes the completed product.

It is common for stores, such as those engaged in the sale of bicycles, furniture, jewelry or light fixtures, to per- form incidental assembly activities in preparation for the display of or after the sale of merchandise. Assembly or “get ready” activities which are incidental to a store’s operations shall be assigned to the store’s applicable classification.

Property management firms are engaged in the management of real property which may be owned by the management firm or owned by unrelated businesses and managed under contract.  Real property is defined for this Ruling and Interpretation as apartment houses, condominiums, private dwellings (houses) and commercial office buildings. The duties of a property management firm are to enforce the provisions of the lease agreement entered into by the tenant and landlord, to ensure that necessary tax, mortgage, insurance and other payments are made in a timely manner, and to ensure that the property is maintained in such a way as to maximize its value to the owner.  In the conduct of such operations management companies may employ maintenance personnel,  resident  or  on-site  managers,  leasing  agents  or  property  management  supervisors  or  may subcontract all or portions of these separate responsibilities. The basic functions performed by the personnel of property management firms and the current classification procedures followed in connection therewith are presented below:

Maintenance

Maintenance personnel generally perform minor maintenance and repair work at the property site, including but not limited to: cutting the grass, shoveling snow, plumbing, electrical wiring, painting and minor carpentry activities.   New construction or structural alterations generally are subcontracted to a specialty contractor. Payroll developed by maintenance employees of a commercial or industrial building owner, lessee or real estate management firm is assigned to Code 971.  Payroll developed by maintenance employees of an apartment or condominium complex operator is assigned to Code 880.

Resident or On-Site Managers

Resident managers typically are retained in connection with residential apartment complexes, while on-site man- agers may be employed in connection with either residential or commercial properties. Resident managers usually receive compensation in the form of a salary and an apartment unit located at the site of the managed property. The duties of resident or on-site managers retained in connection with apartment complexes and similar multiple dwelling units may include but are not limited to: performing maintenance and repair work, showing apartments to prospective tenants, preparing lease or rental agreements, collecting rents, handling tenant complaints, inspecting vacated units for damage, coordinating maintenance and repair activities, acting as the liaison between tenants and management supervisors, and directly supervising the overall operations and/or maintenance staff of the property.

As a general rule, managers engaged in the above job duties should have their payroll assigned to either Code 971 or Code 880. However, managers who perform no maintenance/repair work or perform no direct super- vision of the maintenance staff or do not supervise the overall operations of the complex may have their payroll assigned to Code 951. The duties of on-site managers retained in connection with commercial buildings are similar to those described above and are classified the same way.

Leasing Agents

Leasing agents are typically engaged in residential and/or commercial property leasing or real estate sales activities.  Leasing agents are paid a commission based upon the total rent paid over the duration of the lease. Leasing agents show available space to prospective tenants and negotiate the terms of the lease, including the lease period, tenant improvements, payment schedules, and termination provisions. Leasing agents usually do not perform any property management activities.

Historically, leasing agents engaged exclusively in the aforementioned activities have been assigned to Code 951. Leasing agents who, in addition to leasing activities, perform property management operations, such as the direct supervision of employees engaged in the operation, maintenance or repair of properties, are assignable to either Code 971 or Code 880.

Property Management Supervisors 

Property management supervisors normally retain responsibility for several residential complexes, single-family residences and/or commercial buildings. Such persons primarily perform administrative duties in the office of the management firm but will also visit the various properties under management to ensure that the properties are being adequately maintained. The job duties of these employees involve entering into contractual arrangements with real estate property owners for the management of properties, obtaining new properties to be managed, negotiating contracts with firms specializing in the maintenance, repair or alteration of properties, hiring and dis- missal of resident or on-site managers, handling the financial arrangements of the property, preparing financial reports, showing available space to potential tenants, renegotiating or extending leases, meeting with resident or on-site managers to discuss problems or complaints, periodically inspecting the physical appearance of the property to ensure that necessary maintenance and repair operations are being performed and to take note of additional needed repairs.

Property management supervisors do not:

• reside at or work from the site of the properties under management
• directly supervise maintenance or repair employees
• directly supervise the operation of the property

Employees exclusively engaged in the above job duties may have their payroll assigned to Code 951.

OPERATIONS NOT INCLUDED:

1. The management or operation of all other types of real property is not subject to this Ruling and Interpretation and shall be classified as provided elsewhere in this Manual.

In determining the classification assignment for an employee who may have (to varying degrees) multiple operational exposures, the term “regular and frequent” has historically been used by the PCRB in evaluating the duties of the employee(s) in question. The purpose of this R&I is to briefly (but not exhaustively) clarify the PCRB’s use and application of this classification assignment concept.

The word “regular” is defined as “usual, normal, customary, recurring at fixed times and periodic.”  The word “frequent” is defined as “happening or occurring at short intervals, constant or habitual.”  The intent of the PCRB’s classification procedure is to assign the payroll of an employee having multiple occupational exposures to that classification most consistent with the overall nature of that employee’s exposure. The term “regular and frequent” is a benchmark used to help determine whether exposure in a given occupational area is or is not sufficient to warrant assignment of an employee to the Manual classification applicable to such exposure.

An employee need not actually work at a production machine in order to have their payroll assigned to the appropriate basic production classification.  If, in the course of performing their work, the employees’ duties bring them into regular and frequent contact with the production area, then that person’s payroll would be assigned to the appropriate basic production classification.

The above observation should not be construed to mean that any individual who ever steps into the plant or shop area would automatically have their payroll assigned to the higher valued classification. The intent of the PCRB’s classification procedure is to be reasonable and fair in assigning the appropriate classification that reflects the employee’s job duties. Therefore, an employee who was temporarily engaged in a job duty beyond the restrictive definition of the standard exception classifications on an infrequent or emergency basis would not have their payroll assigned to the basic classification.

Please note that the existence of a portal door or window in a floor-to-ceiling partition to allow an interface between employees, visitors or customers does not in and of itself invalidate the floor-to-ceiling partition.

Some examples may further clarify these considerations:

• Employee X of ABC Corporation makes outside sales calls and visits prospective customers one day a week every week. The employee will typically visit five to six customers. The other four days of the week, Employee X works at ABC Corporation’s offices handling administrative paperwork and other clerical duties. Employee X’s payroll would be allocated to Code 951, because this employee is regularly (every week) and frequently (one day per week) engaged in outside sales duties away from the premises.
• Employee X of ABC Corporation makes a trip to a sales convention for a week, two times a year.  The rest of the employee’s duties keep Employee X working strictly in the company’s corporate offices. Employee X’s payroll should be assigned to Code 953, as two sales convention trips a year should not be construed as either regular or frequent.
• Employee Y of DEF Corporation spends about two hours (out of an eight-hour day) every day in the production plant.   Employee Y will go to each of the production areas of the plant and physically observe and talk with foremen and workers at their machines to get feedback as to when a certain job will be completed.  Employee Y may also set up a complex job on a machine or do an emergency repair during these two hours.  Employee Y spends the other six hours of each day in an office handling production scheduling, administrative paperwork, finances and management reports.  Employee Y’s payroll  would  be  assigned  to  the  production  plant’s  governing  classification,  as  this  employee  is regularly and frequently exposed to the production area, even though Employee Y does not actually work on a production machine.If this employee had spent only 10-to-15 minutes once or twice a week in the shop conferring with foremen, greeting employees or had been called into the shop in case of an emergency with the rest of their time spent in an office, then the payroll of Employee Y would be assigned to Code 953, as the employee is not frequently in the shop.

The major points attempted to be made here are:

• Determining the amount of time an employee spends exposed to the operational hazards of the business is extremely important.
• Determining the duties of an employee during that time may give a clearer picture of the extent of the employee’s duties.

As usual, the more involved in presenting and exploring a line of questioning, the more information comes to light.  With the benefit of such enhanced information, the auditor will more likely be able to make an informed judgment on assignment of payroll.

Where a retail outlet is located at the same or contiguous premises as a business’ manufacturing facility, the applicable retail store classification shall apply to the payroll of the retail outlet provided that such outlet is operated in a work area physically separate from the business’ other operations by a floor to ceiling partition and by a separate crew of employees.

In classifying a combination self-service gasoline station and convenience grocer Code 917 shall apply at each location when the sale of merchandise, other than gasoline, exceeds 10% of the total annual receipts for the location.

Self-service gasoline stations exclusively engaged in the retail sale of gasoline or where the cashier may also sell items such as cigarettes and/or snack food only shall be assigned to Code 816.

In limited circumstances, (Section 1, Rule IV, Paragraph C.5), the payroll of an employee may be divided between two or more classifications, provided the employer has maintained the requisite separate payroll records.   Specifically, the employer’s payroll records should be supported by original time cards, hourly labor postings, labor cost entries or time book entries which show separately, both by individual employee and in summary by operations performed, the remuneration earned by such employee. A standard format for the records is not required but these records must be original and they must be summarized, i.e., totaled, by operation. This allows employers the flexibility to use a variety of methods and technology to record the required information. The accuracy of the summaries must be verifiable by reviewing the original, individual employee records. Data elements must be contemporaneously recorded (originating at the same time) and summarized. If the employer fails to keep complete and accurate records as provided in this definition, the entire remuneration of the employee shall be assigned to the highest valued classification applicable to any part of the work performed by the employee.  A permissible payroll separation should be based on a time card(s) or invoice(s) showing the actual number of hours worked for a given employee.  Payroll may not be divided by means of percentages, averages, estimates, or any basis other than specific time cards, hourly labor postings, labor cost entries or time book entries.

EXAMPLES

An employee is engaged in performing the fabrication of iron railings (Code 413) in the shop and also assisting in the installation of ornamental iron railings (Code 658.) The amount of time this employee spends in installing railings should be based on a time card or invoice that show time spent in the installation activity. Usually, an employer uses the total job cost in labor of installation work and transcribes that amount on a separate record (job book, general ledger) for each installation job completed during the workweek. Then the amounts are totaled and recorded on a weekly payroll record or a separate card is completed that just shows the installation payroll. The insured totals the amounts on a weekly or monthly basis.

Other employers record the total hours for each installation by employee for each job and then multiply those hours by the employee’s hourly rate. The amount is recorded and entered on a separate section of the employee’s earnings card or in the payroll book under the employee’s name. This process is also completed week by week with the insured totaling the amounts on a weekly or monthly basis.

Types of records reviewed include but are not limited to payroll records, master control reports, and job cost records.

Risks having shop operations that involve the repair of a product for which there is no repair classification are to be assigned to the classification that applies to the manufacture of the product, unless such repair work is specifically referred to by another classification phraseology, footnote or definition in the Manual.

A ski resort is a multiple enterprise and the appropriate classification shall be assigned to each of the various operations thereof provided each operation is separately staffed and there is no interchange of employees. Examples of ski resort operations and the applicable classification are listed below:

1. Assign Code 969 to payroll developed in all skiing, snowboarding or snow tubing operations including but not necessarily limited to:  the operation of the ski lifts, T-bar, rope tows, snow grooming, operating artificial snow-making machinery, the maintenance of roads or equipment, the transporting of customers to slopes, ski patrols, ski instructors, ticket checkers or sellers, the maintaining of building facilities, security personnel, and parking lot attendants (not for hotel).
2. Assign Code 928 to the operation of shops renting skis, toboggans, boots, poles or other skiing equipment or supplies or engaged in the sale of such merchandise or ski clothing.
3. Assign Code 973 to all payroll developed in the operations of hotel facilities.  Please refer to the General Auditing & Classification Information entry for “Hotel or Motel Operations” for the scope of the Code 973 assignment.
4. Payroll developed in the operation of restaurants and/or bar facilities shall be classified as discussed below. If the ski resort includes hotel facilities, payroll developed in the restaurant and/or bar operation(s) shall be assigned to Code 945. Please refer to the General Auditing & Classification Information entry for “Hotel or Motel Operations” for the scope of the Code 945 assignment. Assign the applicable restaurant classification in the event the ski resort operates restaurant and/or bar facilities and does not have hotel facilities. For further information please refer to the class descriptions of the different restaurant classifications (e.g., Codes 897, 975) in Section 2 of this Manual.
5. Assign Code 981 to payroll developed in slot machine gambling operations when conducted in a physically separate department by a separate staff.
6. Assign Code 953 to employees engaged in clerical office duties, as defined in Section 1 of this Manual, and having no other regular duty in the course of their employment.

Assign the employer’s governing classification to payroll developed in snow plowing and/or removal for unrelated concerns.

A temporary staffing contractor hires employees and assigns those employees to an unrelated business for temporary work assignments in order to supplement the unrelated business’ workforce. The duration of temporary work assignments varies but typically will not exceed one year.

Payroll developed by temporary staff shall be assigned to the applicable temporary staffing classification(s), subject to the exceptions listed below. To determine the applicable temporary staffing classification(s), identify the direct employment classification assigned to the client’s field of business. Payroll developed by temporary staff provided to that client is then assigned to the temporary staffing classification corresponding to the client’s direct employment classification. The corresponding temporary staffing classification for each direct employment classification, where applicable, is identified in the direct employment classification’s entry in the Section 2 – Alphabetic Classification Underwriting Guide.

Exceptions to the general procedure for classifying temporary staffing are as follows:

EXCEPTIONS

1. AVIATION – temporary staff provided as flight crew in any capacity shall be assigned to the applicable direct employment aircraft operation classification.
2. LONGSHORING  –  temporary staff  provided  to  load  or  unload  vessels  shall  be  assigned  to  the applicable direct employment stevedoring classification.
3. SHIP BUILDING – temporary staff performing either ship building and/or ship repair shall be assigned to the applicable direct employment Federal classification.
4. FARM LABOR –temporary staff shall be assigned to the applicable direct employment agricultural classification, except for staff provided to perform harvesting, picking and related activities using mechanical farming equipment. Such staff shall be assigned to direct employment Code 007. Codes 0011, Flower Raising, Cultivating Or Growing and 0013, Nursery, are not considered farm classes for temporary staffing purposes. See codes 2011 and 2013.
5. COAL MINING – temporary staff provided to mine coal, to staff a coal breaker, or staff a cleaning  plant shall be assigned to the applicable Coal Mine Compensation Rating Bureau classification(s).
6. LEASED EMPLOYEES – the leasing of personnel shall not be construed as temporary staffing.
7. CLERICAL – all temporary clerical staff other than telecommuting clerical shall be assigned to Code 2953 regardless of the client’s applicable direct employment classification. See Rule IV.B.2 (“Standard Exception Classification”) in Section 1 of this Manual for the definition of clerical staff. Telecommuting clerical employees shall be classified to 822. Refer to Code 822 for information regarding the scope of that classification.
8. HOME CARE AND HOME HEALTH CARE – temporary staff performing home health care  shall be assigned to the direct employment Code 942 and temporary staff performing home care shall be assigned to direct employment Code 943.
9. The following classifications are not available as a guide in classifying temporary staffing contractors: 822, 906, 972, 985, 989, 993, 994, 996, 0901, 0902, 0908, 0909, 0912 and 0913.
10. WORKFARE PROGRAM EMPLOYEES – assign Code 982 for employable recipients of public assistance delegated by the Department of Public Welfare.
11.  PERMANENT STAFF – the permanent staff of a temporary staffing contractor shall be assigned to direct employment Code 951 and direct employment Code 953.  See Rules IV.B.4 and 5 for the scope of Codes 951 and 953. Permanent staff of a temporary staffing contractor performing duties that are not included within the definition of either Code 951 or Code 953 shall be assigned to direct employment Code 971.

The  IRS  has  ruled  that  when  a  business  adds  services  charges  to  customers’  bills  (such  as  “automatic gratuities”) and distributes those charges to its employees, the business should characterize the distributed amounts as social security wages, not as social security tips.

Payments must meet all of the following criteria to be considered as tips:

• The customer must freely determine the payment.
• The customer must be able to determine the amount without restriction.
• The payment cannot be determined by negotiations between the customer and the employer, or dictated by the employer.
• The customer should generally have the right to decide who receives the payment.

Historically, tips, including automatic gratuities, have been excluded from remuneration and, therefore, have been excluded from the basis for premium in Pennsylvania. However, in recognition of this IRS ruling, the PCRB directs that automatic gratuities be included as remuneration. Note that tips, as defined above (and thus distinguished from automatic gratuities), remain an exclusion from remuneration in Pennsylvania.

A truck stop establishment is a multiple enterprise, and the appropriate classification shall be assigned to each of the various operations thereof provided each operation is separately staffed and is conducted in a physically separate work area. The exact nature of each of the truck stop’s operations will direct which classification to assign. The more common truck stop operations and the assignable class for each are delineated below:

1. Code 816 is for payroll developed by fuel attendants engaged in pumping gasoline or diesel fuel or to personnel who work exclusively on a fuel island adding or changing motor oil, checking the air in tires and performing related duties.  Fuel attendants may also accept payment for fuel or motor oil sales.
2. Code 815 is assignable to personnel engaged in the repair of automobiles or trucks.  A truck stop may have separate automobile and truck repair bays.
3. Code 973 is assignable to the payroll of chambermaids or related personnel engaged in the upkeep of motel rooms.
4. Code 928 is assignable to gift shop and/or retail store personnel.  The merchandise sold may include but is not necessarily limited to: men’s or women’s clothing, CB radios, gifts, greeting cards, toilet articles, health or beauty aids, books, newspapers or magazines.

Payroll developed in the operation of a restaurant, when conducted in a physically separate department and by a separate crew of employees, including preparing or serving food or beverages, washing dishes or receiving payment for meals or beverages, shall be assigned to the applicable restaurant classification. Please refer to the descriptions of Codes 897 and 975 in Section 2 for further information.

Control desk cashiers’ duties include but are not necessarily limited to: operating self-serve fuel pump controls, writing invoices for fuel or motor oil sales or vehicle repairs, receiving cash or credit payment for fuel sales or trucking operating permits, receiving or transmitting telegrams or receiving telegram money transfers, accepting payment for store merchandise or selling lottery tickets.  Employees engaged as control desk cashiers may be assigned to Code 928 provided the control desk is located inside the truck stop store.  In the event the control. desk is located in an enclosed booth located on a fuel island or in an area contiguous thereto the payroll of the control desk cashiers shall be assigned to Code 816.

Additional classifications may be extended to a truck stop in the event a truck stop conducts additional separately staffed and located operations not listed in this General Auditing & Classification Information entry.

In Pennsylvania the municipality in which a volunteer fire department(s) and/or volunteer fire company(ies) is based is generally construed to be the statutory employer of the members of the volunteer fire department or volunteer fire company who perform the services of a volunteer firefighter, and for that reason it has been the practice for the municipality in which the volunteer fire department(s) and/or volunteer fire company(ies) is based to provide workers’ compensation insurance coverage for such members.  The Department of Labor and Industry (Department) has rendered a written opinion on whether a volunteer fire department and/or volunteer fire company may be separately insured pursuant to the Department’s review of the Pennsylvania Workers’ Compensation Act (Act), Section 601 (a)(1), and the interpretative case law thereon. The Department’s opinion states that there is nothing in the language of the Act or the case law accompanying Section 601 (a)(1) that indicates a volunteer fire department and/or company would be prohibited from obtaining a workers’ compensation policy separate from that of the municipality in which it is based.  In other words, in the Department’s opinion a volunteer fire department and/or volunteer fire company may purchase a workers’ compensation insurance policy that is separate from the workers’ compensation policy of the municipality in which it is based.  The Department’s opinion also states that the above analysis applies to volunteer ambulance corps or volunteer rescue or lifesaving squads, because there is no language in Section 601 (a) (2) or (a) (3) of the Act or in the case law thereon that prohibits a volunteer ambulance corps or a volunteer rescue or lifesaving squad from obtaining workers’ compensation insurance separate from the municipality in which it is based.

The classification applicable to a separate workers’ compensation insurance policy purchased by a volunteer fire department and/or volunteer fire company for volunteers/members covered by such policy would be Code 994. The classification applicable to a separate workers’ compensation insurance policy purchased for the volunteers/ members of a volunteer ambulance corps or volunteer rescue or lifesaving squad would be Code 993.

If an entity (typically a volunteer fire department and/or volunteer fire company) provides fire, ambulance or rescue and lifesaving squad services in combination and that entity purchases a single, separate workers’ compensation policy, then each service provided must be separately classified.  In such instances the applicable classifications for the single, separate workers’ compensation policy would be both Codes 993 and 994.

If an entity (again typically a volunteer fire department and/or volunteer fire company) has a policy for its employees (e.g., bartenders for a social club or food servers and/or bartenders for a banquet hall), Code 993 and/or Code 994 may be added to that policy for the coverage of the volunteer firefighters and/or volunteer ambulance corps and/or volunteer rescue or lifesaving squad persons.

Where the firefighting service is provided by a combination of volunteer firefighters and paid firefighters insured by a policy purchased by the municipality in which the volunteer fire department or volunteer fire company and the paid firefighters are based, the municipality’s volunteer firefighting premium is prorated pursuant to the procedure delineated in the Section 2 rating value listing pages.  The volunteer firefighting premium charge shall be prorated in the same manner in the event a policy separate from the municipality’s policy is purchased for the (Code 994) volunteer fire fighting exposure.   When ambulance or rescue lifesaving service is provided by an independent, non-municipal entity staffed by a combination of paid ambulance, rescue or lifesaving persons and volunteer ambulance, rescue or lifesaving persons, assign Code 807 to the payroll of the paid ambulance, rescue or lifesaving persons and Code 993 for the volunteers.   The Code 993 per corps premium shall be prorated in the same manner cited above for firefighting service provided by the combination of volunteer firefighters and paid firefighters.

THE MUNICIPALITY IN WHICH A VOLUNTEER FIRE DEPARTMENT AND/OR VOLUNTEER FIRE COMPANY IS BASED WILL GENERALLY BE CONSTRUED TO REMAIN THE VOLUNTEERS’ STATUTORY EMPLOYER

In the event that a volunteer fire department and/or volunteer fire company does not purchase a separate workers’ compensation policy for its volunteers/members or in the event that such separately purchased policy lapses, is canceled or otherwise ceases to be effective for any reason, then the municipality in which the volunteer  fire  department  and/or  volunteer  fire  company  is  based  should  secure  workers’  compensation insurance coverage for the volunteer fire department’s and/or volunteer fire company’s volunteers/members. This same provision would also apply to volunteer ambulance corps or rescue or lifesaving squads.

MUNICIPALITY IN WHICH A VOLUNTEER FIRE DEPARTMENT AND/OR VOLUNTEER FIRE COMPANYIS BASED DEFINED

The term “the municipality in which the volunteer fire department and/or volunteer fire company is based” shall be defined as any incorporated political subdivision of the Commonwealth smaller than a county (e.g., city, borough, township or town) wherein a volunteer fire department and/or volunteer fire company is headquartered. This definition also applies to volunteer ambulance corps or volunteer rescue or lifesaving squads.

In the event of a merger of two or more previously separate volunteer fire departments and/or volunteer fire companies garaged in two or more separately incorporated political subdivisions, the municipality in which a volunteer fire department and/or volunteer fire company is based shall be that participating incorporated political subdivision designated by the parties as the headquarters of the new, merged volunteer fire departments and/or volunteer fire companies.  This procedure also applies to merged volunteer ambulance corps or volunteer rescue or lifesaving squads.

SUMMARY OF THE DEPARTMENT OF LABOR AND INDUSTRY’S (DEPARTMENT) OPINION 

The following is a summary of the Department’s opinion, and it is based in part on discussions with the Department after the Department issued the opinion.  You should not rely on this summary as advice concerning the legal obligation of a person to maintain workers’ compensation coverage.

The Pennsylvania Compensation Rating Bureau has asked the Department for an opinion with respect to whether a volunteer fire department and/or volunteer fire company may obtain workers’ compensation coverage as an actual employer separate from the coverage of the municipality in which the volunteer fire department and/or volunteer fire company is based.  A second issue is whether a volunteer ambulance corps or a volunteer rescue or lifesaving squad may also pursue workers’ compensation coverage separate from the municipality in which it is based.  In the Department’s opinion a volunteer fire department and/or volunteer fire company or a volunteer  ambulance  corps  or  volunteer  rescue  or  lifesaving  squad  may  separately  obtain  workers’ compensation insurance as an employer independently from the municipality in which it is based.

There is nothing in the language of the Act or the case law accompanying Section 601 (a)(1) of the Act that indicates a volunteer fire department and/or volunteer fire company  would be  prohibited (emphasis in the original)  from  obtaining  workers’  compensation  coverage  separate  from  the  municipality  in  which  such department or company is based.  The Commonwealth Court in one case sets forth that “volunteer fire fighters may have two employers for the purposes of the Act, the actual employer under whose supervision the fireman was working at the time of injury, and the statutory employer, i.e. the municipality upon whom rests the responsibility for providing workmen’s compensation benefits under Section 601.” Temple v. Milmont Fire Co., 525 A.2d 848, 850 (PA Cmwlth. 1987).  Even though Temple does not require a volunteer fire department to obtain workers’ compensation insurance separate from the municipality in which it is based, it certainly does not prohibit the volunteer fire department and/or volunteer fire company from doing so as an employer. See id.

The same analysis applies to volunteer ambulance corps or volunteer rescue or lifesaving squads – no language in the Act or in the case law accompanying Section 601 (a) (2) or (a) (3) prohibits (emphasis in the original) a volunteer ambulance corps or a volunteer rescue or lifesaving squad from attempting to obtain workers’ compensation insurance separate from the municipality in which such corps or squad is based.  The only indication the Department found that a volunteer ambulance corps or a volunteer rescue or lifesaving squad and a volunteer fire department and/or volunteer fire company would be treated differently in some respect is found in Scrima v. Swissvale Area Emergency Services, 599 A.2d 301 (Pa Cmwlth. 1991).  The Commonwealth Court in Scrima declined to expand the rule that volunteer fire department and/or volunteer fire companies are entitled to governmental immunity to include volunteer ambulance corps or volunteer rescue or lifesaving squads. However, the fact that governmental immunity cannot be applied to a volunteer ambulance corps or a volunteer rescue or lifesaving squad does not prohibit the volunteer ambulance corps or the volunteer rescue or lifesaving squad from obtaining workers’ compensation separate from the workers’ compensation coverage of the municipality in which the volunteer ambulance corps or the volunteer rescue or lifesaving squad is based.  It may even provide an additional argument in support of why a volunteer ambulance corps or a volunteer rescue or lifesaving squad should be permitted to obtain workers’ compensation insurance coverage separate and apart from that of the municipality in which they are based.  If the volunteer ambulance corps or volunteer rescue or lifesaving squad does not have governmental immunity, having separate workers’ compensation coverage could give it an additional layer of protection against liability.

Wholesale 

For the purposes of classifying stores the term “wholesale” shall be construed to mean the selling of merchandise:

1. to retailers;
2. to manufacturers, builders or contractors;
3. to industrial, agricultural, commercial, governmental, institutional or professional users;
4. to other wholesalers; or
5. to firms acting as agents in buying merchandise for or selling merchandise to such persons or companies as those previously listed.

Wholesale store operations generally include the maintenance of warehouse inventories; delivery and the promoting of sales through utilization of an outside sales force and/or by telephone or fax.  Many but not all wholesalers may also perform the physical assembling, sorting and grading of their goods; the breaking of bulk quantities and repackaging into smaller lots. A wholesaler may also have a sales counter where a walk-in customer’s order may be written up and payment for merchandise made. The counter clerk may transmit the order to the warehouse or the customer may take the order to the warehouse for fulfillment.

Mail Order House Or Internet Sales 

An enterprise principally (more than 50 percent of the gross receipts) engaged in selling by mail order or by telephone by means of a catalogue mailed to customers and/or via Internet website shall be assigned to the appropriate wholesale store classification for the commodities handled, except for mail order pharmacies filling individual patient drug prescriptions which shall be assigned to Code 927. Mail, telephone order or Internet sales by a manufacturer or incidental to a retail store business shall be classified in accordance with the class or classes appropriate to the business of the employer.

RETAIL

For purposes of classifying stores the term “Retail” shall be construed to mean the selling of displayed merchandise in store-type premises where floor and/or counter salespersons assist customers or on a self- service basis to the general public for personal or household consumption or use. Warehouse operations incident to the retail store enterprise shall be assigned to the enterprise’s appropriate retail store classification.

The appropriate retail store class shall also be assigned when the insured, while technically a wholesaler, operates primarily in a retail manner. The customers will generally be commercial or professional users. “Retail manner” means such insured will have a large merchandise display area; customers may walk up and down the display aisles, inspect the merchandise being offered for sale, place their selections into either a shopping basket or shopping cart and will make payment for their selections at a customer checkout lane.  The employer’s single largest group(s) of employees are floor or counter salespersons assisting customers or performing customer checkout.

(The act of collecting a sales tax on merchandise sold is not a factor in defining a retail store and has no bearing upon determining the business’ classification assignment.)

All work to completion at a wrecking or demolition or a building moving or raising site shall be assigned to one of the following classifications:

1. Code 651 – Applicable to wooden buildings or structures including those designed for residential occupancy and interior stripping/gutting.
2. Code 654 – Applicable to concrete or concrete encased buildings or structures.
3. Code 655 – Applicable to iron or steel buildings or structures.
4. Code 653 – Applicable to masonry buildings or structures.
5. Code 611 – Applicable to piers or wharfs.

The classification with the highest rating value applies where wrecking or demolition or building moving or raising involves a building or structure of more than one type of construction.

All wrecking or demolition or building moving or raising work not specifically described above shall be assigned by analogy to one of the classifications designated above.  No other classification is applicable.

Secondhand material businesses at a separate location with no interchange of employees shall be assigned to the appropriate scrap metal dealer classification based on whether the dealer is principally engaged in handling ferrous or nonferrous scrap metal.  Assign ferrous scrap dealers to Code 858 and assign nonferrous scrap dealers to Code 859.  Assign Code 860 to secondhand materials dealers who do not have a principal line of merchandise.

The application of Coal Mine classifications, loss costs, underwriting rules and experience rating is under the jurisdiction of the Coal Mine Compensation Rating Bureau of Pennsylvania, 300 North Second Street, Harrisburg, Pennsylvania 17101. 

The following Coal Mine classifications are shown as a matter of convenience:

Coal Mine Classifications 

1010 Anthracite Mining.
1001 Bituminous Mining.
1012 Surface and Culm–Anthracite.
1014 Surface and Culm–Bituminous.
1469 Coke.
1015 Auger Mining–Surface.
1018 Truck Delivery of Coal by Mine Operators.

These classifications available only on assignment by the Coal Mine Compensation Rating Bureau. 

1025 Anthracite Prep Plant.
1027 Bituminous Prep Plant.

Occupational Disease Classifications 

1011  Anthracite Deep Mining.
0160 Anthracite Deep Mining (FEDERAL).
1002 Bituminous Deep Mining.
0158 Bituminous Deep Mining (FEDERAL).
1016 Surface and Culm-Anthracite.
0153 Surface and Culm–Anthracite (FEDERAL).
1013 Surface and Culm–Bituminous
0156 Surface and Culm–Bituminous (FEDERAL).
1017 Coke.
0154 Coke. (FEDERAL).
1019 Auger Mining–Surface.
0157 Auger Mining–Surface (FEDERAL).
1011  Truck Delivery of Coal–Anthracite Mining.
1002 Truck Delivery of Coal–Bituminous Mining.
1016  Truck Delivery of Coal–Anthracite Surface.
1013  Truck Delivery of Coal–Bituminous Surface.
0164  For Reporting Disease Experience in connection with any classification other than coal mining for insureds having liability under the Federal Mine Safety and Health Act.
0159  Former Coal Mine Operators.
1026  Anthracite Prep Plant.
0183  Anthracite Prep Plant (FEDERAL).
1028  Bituminous Prep Plant.
0184  Bituminous Prep Plant (FEDERAL).

Co-Generation Fuel Recovery Anthracite 

1021  Traumatic
1022  State O.D
0181  Federal O.D

Co-Generation Fuel Recovery Bituminous

1023 Traumatic
1024 State O.D
0182 Federal O.D.