Work Comp Wednesday - Class Code Review: What is Clerical?

Clerical Misconceptions

In workers’ comp insurance the clerical classification is one of the most widely used codes. When the typical injuries are paper cuts and eye strain it’s not exactly a risky exposure. Because of this it carries one of the lowest rates and has strict guidelines in order to qualify.

The term “clerical” can carry different meanings. The interpretation of clerical can vary from person to person just as a dictionary’s definition may differ from that of a workers comp bureau. In workers’ comp the clerical classification is used only for an office clerk; which as you know, is not the same as a retail, gas station, or garage clerk. Below are some job duties that are commonly perceived to be in the clerical office code but typically do not qualify*:

·          Front Desk Clerk

·          Auto Shop Service Writer/ Estimator

·          Cashier (i.e. auto shop, retail, etc.)

·          Beauty Salon Attendant

·          Host/Hostess

·          Supervisors or

Managers

Qualifying Clerical

Rating bureaus have developed strict guidelines that auditors must adhere to when assigning the clerical office classification. In doing so the integrity of the code is maintained along with its low rating. So what does qualify as clerical? The two main aspects to focus on are where the employee works and what the employee’s duties are.

Here are the general guidelines:

Where: Locations Included

· Work area separated and distinguishable from all other work areas and hazards of the employer by floors, walls, partitions, counters, or other physical barriers.

What: Duties Included

·          Creation or maintenance of financial or other employer records, correspondence, computer programs, files

·          Data entry or word processing

·          Phone duties including sales by phone

·          Copy or fax machine operations (unless the insured is in the business of making copies or faxing for the public)

·          General office work similar in nature to the above

Where: Locations Excluded

·          Work or service areas

·          Areas where inventory is located

·          Areas where products are displayed for sale

·          Areas to which the customer brings a product for paymentWhat: Duties Excluded

·         Physical labor

·         Direct supervision of non-clerical employees not performed in an eligible site

·          Outside sales or outside representatives

·          Any work exposed to the operative hazards of the business such as a stock or tally clerk, which is necessary, incidental or related to any operation of the business other than a clerical office

Interchange of Duties

·          In instances where clerical or drafting employees perform any other duties, the total payroll of such employees would be assigned to the highest rated classification representing any part of their work.

We understand how complicated yet important the classification process can be. A misclassification can have a huge impact on the on a policy premium and can affect your bottom line. If there are ever any questions or concerns with classifications, payroll, or any other audit issues feel free to contact us at Bob Lancaster Insurance.  We can review your policy with you to make sure it is correct.

*Subject to minor variations in state rules

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Bob Lancaster Insurance

Serving Florida since 1964