WAC 296-17-31017   Multiple classifications.  (1) Can I have more than one basic classification assigned to my account?

     Yes, we will assign other classifications to your business when the assignment of another basic classification is required or permitted by the description(s) of the employer's other classification(s).

     Example: You operate a retail book store. We would assign classification 6406 to your retail book store. Assume that as a part of the book store business you have a separate lunch counter and espresso bar in one section of the book store. A review of classification 6406 reveals that lunch counters are to be reported separately in classification 3905. We would assign classification 3905 for your lunch counter and espresso bar operation. This classification (3905) would be in addition to the book store classification (6406). Remember to keep accurate records of the exposure of each employee by classification. If you do not keep accurate records we will assign the exposure of each employee to the highest rated classification applicable to the work they performed for you. A detailed explanation of payroll records you must keep can be found in WAC 296-17-35201.

     (2) Are there other circumstances when I can have more than one basic classification assigned to my account?

     Yes, under certain circumstances we will assign more than one basic classification to your account. These circumstances include:

•	The employer is operating a secondary business which includes operations that we do not consider a normal part of that employer's principal business in Washington, or

•	The employer has multiple retail store locations.

     In these instances we will assign additional basic classifications only if all of the following conditions are met:

•	The employer maintains separate payroll records for each business,
•	Different employees work in each business,
•	Each business is separated by structural partitions if they share a common business location,
•	Each business can exist independently of the other, and
•	The classification language of the principal business does not prohibit the assignment of the secondary classification.

     If all of the above five conditions are not met, then the operations of the secondary business will be reported in the highest rated classification that applies to the employer.

     (3) What do you mean by the term "principal business?"

     The principal business is represented by the basic classification assigned to an employer which produces the greatest amount of exposure. The principal business does not include standard exception or general exclusion classifications or operations.

     (4) If I have more than one basic classification assigned to my business and I have employees who do work in more than one of these classifications, can I divide their hours between these classifications on my quarterly report?

     Yes, you can divide the work hours of any one employee between two or more basic classifications provided the following conditions are met:

•	The basic classification assigned to your business allows or requires a division of hours; and

•

You keep detailed records of the actual time spent by each employee in each classification. Use of percentages, averages or estimates is not permitted. If you do not have original time card or time book entries to support your reporting, all worker hours in question will be assigned to the highest rated classification applicable to the work being performed.

     Example: In a previous rule (WAC 296-17-31017) we described a book store business that operated a lunch counter and espresso bar in connection with the book store. In that example, the book store business was assigned classification 6406. A review of classification 6406 revealed that the lunch counter operation was to be reported separately in classification 3905. Assume that you have one employee who, in addition to stocking and selling books, prepares sandwiches for customers on occasion. You must keep accurate time records by day for each employee. This time record must reflect the actual time the employee worked in the book store operation and the actual time worked preparing sandwiches. If you fail to keep these records all work hours in question would be assigned to the highest rated classification which, in this example, is classification 3905.

     (5) If my business is assigned a basic classification and a standard exception classification and I have an employee who works in both classifications, can I divide their exposure (hours) between the two classifications on my quarterly report?

     No, you cannot divide an employee's exposure (work hours) between a basic classification and standard exception classification. An explanation of "standard exception classification" is discussed in the next section (WAC 296-17-31018(2)). If an employee performs work covered by a basic classification and a standard exception classification, all of their exposure (hours) must be reported in the basic classification applicable to your business. You cannot report the exposure (hours) of any employee in a standard exception classification if they perform duties covered by a basic classification assigned to your business. Refer to WAC 296-17-31018 for a list and explanation of the "exception classifications."

     (6) I have more than one standard exception classification assigned to my business. One of my employees works in more than one of the standard exception classifications. Can I divide their exposure (hours) between two or more standard exception classifications on my quarterly report?

     No, you cannot divide an employee's work hours between two standard exception classifications. You must report all exposure (work hours) in the highest rated standard exception classification applicable to the work being performed.



[Statutory Authority: RCW 51.16.035. 98-18-042, § 296-17-31017, filed 8/28/98, effective 10/1/98.]