Archive for October 12, 2017

Ever read your risk classification job descriptions to save premium dollars?


By using our free compliance programs, companies can apply multiple work/risk classifications to every employee and thus avoid paying the highest premiums for every employee hour. For example: A berry farm in Port Angeles expanded their operations to cut hay. After the audit, it was fined $14,000 for the highest-ranking risk classification for not having the right classification assigned. All they had to do was apply for a new risk classification, which was the same rate as their “berry operation” class.

A small building contractor had a fabrication and storage yard. He had his employees work there to keep them busy during slow times. But since he did not know about this risk classification, he paid for a machine operator risk class at $11 pre hour vs. the yard class of $2.80 per hour. The criterion for this type of operation was that the storage yard worker had to work in the yard for 8 hours to qualify. By scheduling work ahead of time, the business owner could save the daily premiums amounting to $262 per month having the employee work one day each week, thus saving $3,148 per year.

There are specific risk classifications for 23 different industries in Washington State. Each classification has qualifying Administrative Codes with corresponding granular hourly exemptions available to any business if they knew they existed. Our compliance programs can provide these small businesses with instructions on how to best apply classification codes.

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