Home > workers compensation compliance > What Happens When the Auditor is Not Trained on Special Industry Reporting?

What Happens When the Auditor is Not Trained on Special Industry Reporting?

Risk classification assignments have been modified in the courts to produce special classification usage to reduce premiums. They require more work on the record keeping side  to take advantage of these reporting guidelines.


A simple example is statute modifications for the logging industry. If a log truck driver stays in the cab and never gets out to set chokers or measure his load at the scale station, he has an exemption from the governing classification.


Sheet rock or wallboard industry has forms to capture the hours and square footage installed. When records are not kept, delivered product material is used footage is used to calculate daily installation. Next, this industry is a two stage risk classification: one for the install and the other is for finishing which is called texturing.

When you have teams handling the same wallboard sheet, the accountability for payroll and piecework requirements gets a little complicated. So, hours and square footage is required.

Next, what about the owner working along side the hourly workers? This practice is used to same labor and premiums, but if not recorded for such ‘owner deductions’ he will pay premiums on himself.


Jurisdictional disputes arise from a history of court cases and union turf wars. In the open sea, you have the Jones Act; near a shoreline or dock you have the Longshoremen’s and Harbor Workers Compensation Act of 1927; and at the Stage level you have the local workers’ compensation jurisdiction. Then you add the depth gauge: 50 feet, 100 feet, etc. This jurisdictional maze is really fun to program for paying wages and premiums.


The two classifications for painters is INSIDE and OUTSIDE. Obviously painting the outside of building is more risky. House painters get hammered because they do not keep track of the hours for both.


Some classifications are tricky. People that work for such companies have two classifications for the salesmen: one for inside sales in a showroom, and one for the roving employee that looks at furnaces in homes and commercial buildings. The outside salesperson has to be reported in the actual worker risk class because he is a hands on guy using tools to examine the units.

ELECTRICIANS—Regular and Small Voltage

There are several classifications: apprentice, electrician, journeyman, and low voltage. I won’t go into the rules of how to report them, but this industry follows the union guidelines.


These are just a few of the twenty or so special reporting industries. Contact us more if you are in another one to see the current changes for 2014. Each State is a little different.

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