WAC 296-17-31018 Exception classifications. (1) What are exception classifications?

аааа In WAC 296-17-31012 we discussed our classification policy. We described the process used to classify risk and stated that we assign the basic classification or basic classifications that best describe the nature of your company's business. While this policy is modeled after the policy used by private insurance carriers and is geared to administrative ease for you, we recognize that there are some duties or operations where your employees do not share the same general workplace hazards that your other employees are exposed to. To provide for those operations that are outside the scope of a basic classification, we have created three types of exception classifications listed below:

Х	Standard exception classifications,

Х	Special exception classifications, and

Х	General exclusion classifications.

аааа (2) What are the standard exception classifications?

аааа Standard exception classifications cover those employments that are administrative in nature and common to many industries. Employees covered by a standard exception classification cannot be exposed to any operative hazard of the business. If the language of the basic classification assigned to your business does not include these employments, you may be able to report them separately. The standard exception classifications are:

Х	Classification 4904 (WAC 296-17A-4904) "clerical office employment." This classification includes clerical, administrative, and drafting employees.

Х	Sales personnel classifications 6301 (WAC 296-17A-6301), and 6303 (WAC 296-17A-6303) includes outside sales personnel and messengers.

Classification 7101 (WAC 296-17A-7101) applies to corporate officers who have elected optional coverage. A corporate officer as used in these rules is a person who is an officer in the corporation, such as the president, who also serves on the corporation's board of directors and owns stock in the corporation.

Х	Classification 7100 (WAC 296-17A-7100) applies to members of a limited liability company who have elected optional coverage.

аааа Clerical office employees are defined as employees whose duties are limited to: Answering telephones; handling correspondence; creating or maintaining financial, employment, personnel, or payroll records; composing informational material on a computer; creating or maintaining computer software; and technical drafting. Their work must be performed in a clerical office which is restricted to:

Х	A work area which is physically separated by walls, partitions, or other physical barriers, from all other work areas of the employer, and

Х	Where only clerical office work as described in this rule is performed.

аааа A clerical office does not include any work area where inventory is located, where products are displayed for sale, or area where the customer brings products for payment. Clerical office employees can perform cashiering and telephone sales work if they do not provide any retail or wholesale customer service that involves handling, showing, demonstrating, or delivering any product sold by the employer. Clerical office employees can make bank deposits, pick up and deliver mail at the post office, or purchase office supplies, if their primary work duties are clerical office duties as defined in this rule.

аааа Sales personnel are defined as employees whose duties are limited to: Soliciting new customers by telephone or in person; servicing existing customer accounts; showing, selling, or explaining products or services; completing correspondence; placing orders; performing public relations duties; and estimating. Although some of sales person's duties may be performed in a clerical office, most of their work is conducted away from the employer's physical business location or in showrooms. We refer to work that takes place away from the employer's premises as "outside sales." Sales personnel whose duties include customer service activities such as, but not limited to, the delivery of product, stocking shelves, handling inventory, or otherwise merchandising products sold to retail or wholesale customers are excluded from all standard exception classifications. Sales personnel with duties such as delivery and stocking of shelves are to be reported in the basic classification applicable to the business unless the basic classification assigned to the business requires another treatment.

аааа Messengers are defined as employees whose duties are delivering interoffice mail, making deposits, and similar duties that are exclusively for the administration of the employer's business. Classification 6303 "messengers" does not include delivering mail or packages to the employer's customer or as a service to the public. If a messenger is engaged in delivering mail or packages as a service to the public they are to be assigned to the basic classification of the business or classification 1101 as applicable.

аааа Corporate officers duties in classification 7101 must be limited to: Clerical duties; outside sales duties as described above; administrative duties such as hiring staff, attending meetings, negotiating contracts, and performing public relations work. To qualify for this classification, a corporate officer must:

Х	Be a shareholder in the corporation,

Х	Be elected as a corporate officer and empowered in accordance with the articles of incorporation or bylaws of the corporation,

Х	Serve on the corporation's board of directors,

Х	Not have any exposure to any operative hazard of the business, and

Not directly supervise employees who have any exposure to any operative hazard of the business.

аааа Members of a limited liability company (LLC) duties in classification 7100 must be limited to: Clerical duties; outside sales duties as described above; administrative duties such as hiring staff, attending meetings, negotiating contracts, and performing public relations work. This includes only those members who have duties and authority similar to the exemption criteria of corporate officers in RCW 51.12.020.

аааа Classification 6303 may apply to a corporate officer or member of a limited liability company whose duties are limited to outside sales activities as described in the sales personnel section of this rule. Under no circumstance is classification 4904 to be assigned to any corporate officer or member of a limited liability company. You cannot divide the work hours of an employee between a standard exception classification and a basic classification unless it is permitted by another rule. If an employee works part of their time in a standard exception classification and part of their time in your basic classification, then all exposure (hours) must be reported in the highest rated basic classification applicable to the work being performed.

аааа (3) What are the special exception classifications?

аааа Special exception classifications represent operations found within an employer's business that are allowed to be reported separately when certain conditions are met. Assuming the conditions noted under each exception below have been met, the following classifications may be used even if your basic classification includes the phrases "all operations" or "all employees." These special exceptions are subject to a division of worker hours in connection with all other basic classifications unless specifically prohibited in an individual classification WAC rule.

аааа Security guards - classification 6601 (WAC 296-17A-6601) will apply if the security guard:

Х	Is an employee of an employer engaged in logging or construction,
Х	Is for the purpose of guarding the employer's logging or construction sites,
Х	Is employed at the site only during the hours the employer is not conducting any other operations at the site,
Х	Has no other duties during their work shift as a security guard.

аааа If all of the above conditions are not met, the security guard is to be reported in the basic classification applicable to the construction or logging operation being conducted.

аааа Janitors - classification 6602 (WAC 296-17A-6602) will apply if:

Х	The janitorial/cleaning activities being performed are limited to the employer's clerical office,
Х	The clerical office meets the criteria described earlier in this rule, and
Х	The employer's office employment is assigned to be reported in classification 4904.

аааа Construction: Superintendent or project manager - classification 4900 (WAC 296-17A-4900) will apply if the superintendent or project manager:

Х	Is an employee of a licensed contractor engaged in construction,
Х	Has no direct control over work crews,
Х	Performs no construction labor at the construction site or project location.

аааа If all of the conditions are not met, the superintendent or project manager is to be reported in the basic classification applicable to the construction project.

аааа Construction: Estimator - classification 4911 (WAC 296-17A-4911) will apply if the estimator:

Х	Is the employee of a licensed contractor engaged in construction, and

Х	Has no duties other than estimating during their work shift.

аааа If these conditions are not met, the estimator is to be reported in the basic classification applicable to their employer's business or the construction project.

аааа Log truck drivers - classification 5003 (WAC 296-17A-5003) will apply if the log truck driver has no other duties during their work shift that are subject to the logging classification 5001 (WAC 296-17A-5001).

аааа (4) What are the general exclusion classifications?

аааа General exclusion classifications represent operations that are so exceptional or unusual that they are excluded from the scope of all basic classifications. If you have these operations, we will assign a separate classification to cover them. You must keep accurate records of the work hours your employees work in these classifications. If you do not keep accurate time records for each employee performing work covered by a general exclusion classification, we will assign the work hours in question to the highest rated classification applicable to those hours. The general exclusion classifications are:

Х	Aircraft operations: All operations of the flying crew.

Х	Racing operations: All operations of the drivers and pit crews.

Х	Diving operations: All operations of diving personnel and ship tenders who assist in diving operations.

Х	New construction or alterations of the business premises.

Х	Musicians and entertainers.

аааа A division of work time is permitted between a standard exception classification and flight crew operations, racing operations, or diving operations. If you fail to keep original time records that clearly show the time spent in the office or in sales work, we will assign all work hours in question to the highest rated classification applicable to the work hours in question.

аааа Example: Assume a corporate officer performs duties which are described in classification 7101. Occasionally, the officer flies a plane to attend a meeting. You would report the flying exposure (hours) of the corporate officer in classification 6803. The remainder of the corporate officer's time would continue to be reported in classification 7101.

[Statutory Authority: RCW 51.06.035, 51.08.010, 51.04.020. 07-12-045, з 296-17-31018, filed 5/31/07, effective 7/1/07. Statutory Authority: RCW 51.16.035, 51.16.100. 06-12-075, з 296-17-31018, filed 6/6/06, effective 1/1/07. Statutory Authority: RCW 51.04.020, 51.16.035, and 51.12.120. 03-23-025, з 296-17-31018, filed 11/12/03, effective 1/1/04. Statutory Authority: RCW 51.04.020, 51.16.035 and 51.32.073. 99-24-055, з 296-17-31018, filed 11/29/99, effective 12/31/99. Statutory Authority: RCW 51.16.035. 98-18-042, з 296-17-31018, filed 8/28/98, effective 10/1/98.]