WSR 17-10-059

PERMANENT RULES

DEPARTMENT OF

LABOR AND INDUSTRIES

[Filed May 2, 2017, 10:28 a.m., effective January 1, 2018]

Effective Date of Rule: January 1, 2018.

Purpose: Adopt amendments to:

•	WAC 296-17A-6108 and 296-17A-6509, to better distinguish between skilled nursing facilities and other care residences by aligning the classifications to DSHS licensing.
•	WAC 296-17A-6509 and 296-17A-6205, to move fraternities and sororities out of a classification primarily for care facilities and into the classification for clubs. The nature of operations and loss rates for fraternities and sororities aligns better with the organizations in the clubs' classification, than those in the classification for care residences, classification 6509.
•	WAC 296-17A-5301, to include tutoring services. Currently tutoring services are assigned to several unrelated classifications. Many businesses only have standard exception classifications rather than a basic classification.

Citation of Existing Rules Affected by this Order:


	WAC Numbers and descriptions	Proposed change	Reason for change
1.	WAC 296-17A-5301 (subclassification 5301-21, Word processing or secretarial services)	Include tutoring services in scopes of subclassification 5301-21.	· Tutoring services are not currently anywhere in WAC, and classifying them has not been consistent. · Classification 5301 appropriately represents the overall relative low hazard of tutoring services. · Classification 5301 allows for exposure to a business's operative hazards, and is administratively simple, since it doesn't require employers to track hours.
2.	WAC 296-17A-6108 (nursing homes)	Limit classification 6108 to facilities licensed as nursing homes and/or skilled nursing centers by DSHS.	· To provide for more consistency and equity when classifying care facilities.
3.	WAC 296-17A-6205 (clubs)	Reclassify fraternities and sororities from classification 6509 to classification 6205.	· Fraternities and sororities do not provide the personal and medical services common to other type residences found in classification 6509. · This is similar to the National Council on Compensation Insurance (NCCI) practices in other states. NCCI includes fraternities and sororities with the clubs, not otherwise classified, code. · Fraternities and sororities appear to have a lower level of hazard than the rest of classification 6509.
4.	WAC 296-17A-6509 (adult family homes, Alzheimer units, and other care facilities)	Assign classification 6509 to residences licensed by DSHS as providing care other than as hospitals, nursing homes, or skilled nursing centers.	· To provide for more consistency and equity when classifying care facilities.

Statutory Authority for Adoption: RCW 51.16.035 (directs the department to classify all businesses by degree of hazard in accordance with recognized insurance principles).

Other Authority: WAC 296-17-31029 (outlines insurance principles for classifying businesses).

Adopted under notice filed as WSR 16-24-067 on December 6, 2016.

Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.

Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 4, Repealed 0.

Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 4, Repealed 0.

Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 4, Repealed 0.

Date Adopted: May 2, 2017.

Joel Sacks

Director

AMENDATORY SECTION (Amending WSR 14-17-085, filed 8/19/14, effective 9/19/14)

WAC 296-17A-5301 Classification 5301.

5301-10 Accounting or bookkeeping services

Applies to establishments engaged in providing general accounting or bookkeeping services to others. Types of services contemplated by establishments subject to this classification include, but are not limited to:

• Auditing;

• Tax preparation;

• Medical or dental claims processing and billing;

• Advisory services.

This classification includes:

• Clerical office;

• Outside sales, and personnel who travel from one office to another.

This classification excludes establishments engaged primarily in management consultant services that are not otherwise classified, which are to be reported separately in classification 5301-12.

Special note: This classification is limited to employers engaged in such services being provided to the general public. This is a services only classification and does not include retailing or store operations, nor is this classification to be assigned to employers setting up separate business operations to manage other commonly owned or operated business undertakings unless coincidentally the other operations are also subject to this classification.

5301-11 Law firms

Applies to establishments engaged in providing legal services to others. Law firms may specialize in one or more areas of law. This classification includes clerical office and outside sales personnel who travel from one office environment to another.

Special note: This is a services only classification and does not include retailing or store operations, nor is this classification to be assigned to employers setting up separate business operations to manage other commonly owned or operated business undertakings unless coincidentally the other operations are also subject to this classification.

5301-12 Management consultant services, N.O.C.

Applies to establishments engaged in providing management consulting services not covered by another classification (N.O.C.). Management consultants typically will observe and analyze:

• Computer or communication systems;

• Mail distribution;

• Organizational structures;

• Planning or development of related business needs;

• Work processes or work flows.

After a thorough analysis, consultants usually prepare a written report for the customer which identifies problem areas and/or recommends improvements to processes or equipment. Consultants may remain to oversee the implementation of the recommended improvements. Consultants subject to this classification do not sell any product they have recommended although they may act as an agent for their client in purchasing the product. Consulting projects vary from client to client depending upon the contract. Included within this classification are businesses that provide similar consultative services such as, but not limited to:

• Advertising agencies;

• Employer representative organizations;

• Mortgage brokers and financial advisers who do not make purchases on behalf of their clients;

• Public relations companies.

This classification includes clerical office staff, outside sales personnel and other staff who travel from one office to another.

This classification excludes businesses that perform computer consulting for others, which is to be reported in classification 5302.

5301-13 Credit bureaus; collection agencies

Applies to establishments that are licensed to provide collection and/or credit investigation services to others. Services include, but are not limited to:

• Checking the credit backgrounds of their client's potential customers;

• Collection of NSF checks or delinquent debts owed to clients of the collection agency.

If debts are not collected, the service agency may initiate legal proceedings against the debtor. This classification includes clerical office and outside sales personnel, and other staff who travel from one office to another.

This classification excludes establishments engaged in providing process and legal messenger services which are to be reported separately in classification 6601.

5301-14 Employment agencies

(only to be assigned by the temporary help/leasing underwriter)

Applies to establishments that are licensed to provide employment services for others. Clients of employment agencies may be persons seeking employment or companies looking for employees. Employment agencies usually conduct preliminary interviews with candidates for positions prior to referring them to their client companies for interviews. Generally, establishments subject to this classification place people in permanent positions. This classification includes clerical office and outside sales personnel, and staff who travel from one office to another.

This classification excludes:

• Employees of a temporary help agency who are assigned to work in the administrative or branch offices of the agency who are to be reported separately in classification 7104;

• Employees of a temporary help agency who are assigned on a temporary basis to its customers who are to be reported separately in the appropriate temporary help classification.

5301-15 Court reporting services

Applies to establishments engaged in providing court reporting services to others. Court reporters record verbatim testimony presented in court proceedings, depositions, public hearings or meetings. The most frequently used method to record testimony is by stenotype machine, although it may be recorded by voice recording on audio tape, or by manual shorthand. Transcription of the recorded material may be performed by the court reporter or by "note readers" or typists. The majority of court reporters today use computer-aided transcription systems. Court reporters may also offer notary public services for their clients. This classification includes clerical office and staff who travel from one office to another.

5301-16 Service and professional organizations

Applies to establishments engaged in protecting or furthering the interest of their members and/or the general public. Many of these operate as nonprofit organizations. Service and professional organizations may perform one or many of the following activities:

• Administer certification tests;

• Arbitrate disputes;

• Award scholarships;

• Collect membership dues;

• Compile, review, and disseminate informational data;

• Disburse funds;

• Host conventions;

• Issue vehicle license registrations, plates, decals, and certificates of title;

• Lobby the legislature;

• Manage promotional marketing programs;

• Maintain a membership directory;

• Offer insurance programs;

• Operate a tourist information center;

• Organize fund-raising campaigns;

• Perform charitable community services;

• Perform collective bargaining;

• Provide counseling, adoption, and advocacy services;

• Provide job placement assistance;

• Publish a newsletter;

• Research and interpret local, state, and federal regulations and apprise members of the results;

• Sponsor athletic leagues and tournaments;

• Sponsor educational training programs.

Also included in this classification are Economic Development Councils, Boards, or Associations. These nonprofit organizations provide economic consulting services and related statistics to government and industry in the promotion of economic stability, and recruit businesses that will create jobs and provide loans from the grant funds they manage. This classification includes clerical office and outside sales personnel who travel from one office environment to another.

This classification excludes:

• Collection of donated items by truck which is to be reported separately in classification 1101;

• Labor unions and employee representative associations which are to be reported separately in classification 6503.

Special note: If a charitable organization subject to classification 5301 operates a retail store for the sale of donated items, the collection of those items by truck, and all store operations, are to be reported separately in classification 6504.

5301-18 Telephone answering services

Applies to establishments engaged in providing telephone answering services for others. Customers include, but are not limited to:

• Attorneys;

• Medical professionals;

• Private businesses;

• Individuals.

Most answering services today use computerized communications systems to identify company names when answering calls for various companies, obtain correct information about the company to respond to questions, record and relay accurate messages in a timely manner. Related services often offered by telephone answering service companies include, but are not limited to:

• Dispatching;

• Monitoring alarm systems;

• Placing reminder calls;

• Rental of office space;

• Scheduling appointments for customers;

• Telemarketing;

• Voice mail or paging.

This classification includes clerical office personnel and staff who travel from one office to another.

5301-19 Travel agencies

Applies to establishments engaged in providing travel arrangement services for others. Travel agencies coordinate all types of travel arrangements for their clients through:

• Air;

• Bus lines;

• Car rental agencies;

• Cruise;

• Hotels;

• Motels;

• Related travel providers;

• Resorts;

• Train;

• Travel insurance companies.

Services vary and could include:

• Arrangement of special needs for people with disabilities or elderly travelers;

• Booking reservations;

• Delivery of tickets and itineraries to clients;

• Selling tickets for tours, excursions, or other entertainment events.

This classification includes clerical office and sales staff who travel from one office to another.

5301-21 Word processing ((or)), secretarial, or tutoring services

Applies to establishments engaged in providing word processing or secretarial services to others. Services include, but are not limited to:

• Correcting assignments;

• Desktop publishing;

• Dictation and transcription services;

• Instruction;

• Making copies of documents;

• Student assessments;

• Typing/compiling reports, proposals, resumes, or correspondence;

• Testing;

• Sending faxes.

((A pickup and delivery service may be offered.)) This classification includes clerical office and outside ((sales)) personnel who travel from one office or instructional environment to another.

Excluded operations: Classification 5301-21 excludes:

• Tutoring programs operated by schools, libraries, and any other organization or enterprise classified 6103 and/or 6104.

Note: WAC 296-17-31017 multiple classifications must be applied when more than one basic classification is assigned.

AMENDATORY SECTION (Amending WSR 07-01-014, filed 12/8/06, effective 12/8/06)

WAC 296-17A-6108 Classification 6108.

6108-00 ((Convalescent or nursing homes, rest homes, and homes for the aged

Applies to establishments engaged in providing various levels of health care, depending on a patient's needs. Convalescent or nursing homes are state-licensed institutions. The extent of professional or medical services provided ranges from complete medical care for postoperative patients and patients requiring extensive nursing care due to illnesses such as terminal cancer, kidney disorders, and heart disease, to only minimal medical or professional care for other patients. Rest homes provide daily living assistance care to the aged or those with some limits on ability for self-care, but where medical care is not yet a major element. Homes for the aged provide care for people who, due to illness, physical infirmity, or advanced age, are unable to care for themselves and who need nursing and/or health-related care, but do not require the degree of care and treatment that a skilled or intermediate care facility is designed to provide. Patients in homes for the aged, because of their mental or physical condition, require some nursing care, including the administering of medications and treatments, or the supervision of self-administered medications in accordance with a physician's orders. Generally these homes will employ therapists, registered nurses, practical nurses, nurses aides and orderlies to provide the necessary medical care to their patients. The homes also may employ cooks, waitresses, maids, maintenance personnel, social workers and recreational directors, but usually do not employ a resident physician, although they may have arrangements with physicians who are on call for emergencies.

This classification excludes boarding houses which are to be reported separately in classification 6509.)) Nursing homes and skilled nursing centers

Classification 6108 applies to skilled nursing facilities (SNF). This includes nursing homes, rehabilitation centers, and similar facilities. While the level of care is less urgent than for patients requiring hospitalization, SNFs, such as nursing homes, provide 24-hour supervised nursing care. They also provide personal care, therapy, nutritional management, organized activities, and social services to individuals unable to care for themselves due to injury, illness, or advanced age. These facilities are inspected and licensed by the Washington department of social and health services (DSHS); their administrators are licensed by the Washington department of health (DOH).

Types of workers employed in nursing homes often include, but are not limited to:

• Activity directors;

• Administrative staff;

• Caregivers;

• Chaplains;

• Cooks and chefs;

• Dietary aides;

• Dieticians;

• Dishwashers;

• Housekeepers;

• Janitors;

• Laundry workers;

• Lawn care workers;

• Maintenance personnel;

• Nurses' aides and assistants;

• Practical nurses;

• Registered nurses;

• Social workers;

• Therapists and therapists' assistants.

Medical services provided to residents generally include:

• Checking and monitoring for wellness;

• Dispensing medicine;

• Medical exams;

• Rehabilitative therapies;

• Total nursing care due to illness, injury, or surgery.

Personal care provided to residents may include performing or assisting with:

• Bathing;

• Brushing teeth or hair;

• Dressing;

• Feeding;

• Shaving.

This classification excludes:

• Residences providing varying levels of medical services or basic personal care but not licensed by DSHS as SNF or nursing home, that are to be reported separately in classification 6509.

• Hospitals inspected and licensed by the DOH which are classified in 6105, 6120, 6121, 7200, or 7400 (assigned only by the hospital underwriter).

• Home care providers working in their clients' homes who are to be reported separately in classification 6511 or 6512.

• Home health and nursing providers working in their clients' homes who are to be reported separately in classification 6110.

For administrative purposes, classification 6108 is divided into the following subclassification(s):

6108-00 DSHS licensed nursing homes.

AMENDATORY SECTION (Amending WSR 07-01-014, filed 12/8/06, effective 12/8/06)

WAC 296-17A-6205 Classification 6205.

6205-00 Clubs, N.O.C.

((Applies to establishments engaged in operating clubs not covered by another classification (N.O.C.). Types of clubs contemplated by this classification include, but are not limited to, fraternal, special interest, or social clubs and clubs whose interests revolve around sports activities such as golf, tennis, boating, skiing, fishing, and swimming. The facilities and services offered vary depending on the type and size of the club. Even in an organization that has several locations, the facilities may vary greatly from a simple bar and snack food operation to a large restaurant with dancing areas, gymnasiums, and saunas. These types of clubs charge membership fees and dues as opposed to clubs or halls in classification 6607 which are open to the public. This classification includes all food and beverage operations.

This classification excludes YMCAs and boys/girls clubs which are to be reported separately in classification 6203; health clubs and gymnasiums which are to be reported separately in classification 6204; golf courses which are to be reported separately in classification 6206; and community and social centers which are to be reported separately in classification 6607.)) Applies to clubs not specifically described by another classification. All clubs have members, and most clubs charge membership fees or dues (as opposed to clubs or halls in classification 6607 which are open to the public). The facilities and services offered vary depending on the type and size of the club. A club's operations may be very simple with few services, or it may have many facilities and provide a range of services, such as:

• Bars;

• Restaurants;

• Recreation and activity rooms;

• Conference space;

• Ball rooms;

• Theaters;

• Snack or juice counters;

• Gymnasiums;

• Pools or saunas;

• Golf courses;

• Libraries;

• Meeting rooms;

• Study rooms;

• Lounge areas;

• Overnight accommodations.

Examples of clubs classified in 6205 include:

• Fraternal organizations;

• Country clubs;

• Special interest clubs;

• Social clubs;

• Student fraternities and sororities;

• Sporting clubs, such as:

- Golf;

- Tennis;

- Skiing;

- Fishing;

- Sailing;

- Swimming;

– Yachting.

This classification excludes:

• YMCAs and boys/girls clubs which are to be reported separately in classification 6203;

• Health facilities and gymnasiums open to the public (even if charging membership fees) which are to be reported separately in classification 6204;

• Golf courses which are to be reported separately in classification 6206; and

• Community and social centers, open to the public, which are to be reported separately in classification 6607.

For administrative purposes, classification 6205 is divided into the following subclassification(s):

6205-00 Clubs, N.O.C.

AMENDATORY SECTION (Amending WSR 14-17-085, filed 8/19/14, effective 9/19/14)

WAC 296-17A-6509 Classification 6509.

((6509-04 Boarding homes and centers, N.O.C., adult family homes, rooming houses, foster homes, and orphanages

Applies to establishments engaged in providing residential and social care for children, aged, and special categories of persons who are ambulatory and for whom medical care is not a major element. This classification includes, but is not limited to, alcohol and drug rehabilitation centers, shelters for the homeless, safe houses for abused women and children, orphanages, homes for people with disabilities, adult family homes, and group homes as well as halfway homes for delinquents and offenders. Alzheimer care facilities are also included in this classification. Work contemplated by this classification includes meal service, linen service, housekeeping and transportation. Medical care includes only the administration of drugs.

This classification excludes convalescent, assisted living, and nursing homes which are to be reported separately in classification 6108.

6509-05 Fraternity or sorority houses

Applies to establishments providing living accommodations to only those college and university students who are members of the fraternity or sorority. Fraternities and sororities operate as independent political, economic and social organizations within the guidelines of the college. Fraternity and sorority houses normally have all the amenities of a home-kitchen, living room, dining room, bedrooms and bathrooms. Chapter houses may also have a party room with floor space for social functions and a Chapter room which are a combination library, study, meeting and trophy room. Employments contemplated by this classification includes house directors who supervise and manage facility, cooks, helpers and facilities maintenance.

6509-07 Retirement centers

Applies to establishments engaged in operating retirement centers which cater to the elderly by offering an independent life style in a communal environment. Differing from a boarding home, a retirement center will usually offer a studio, one bedroom or two bedroom apartments as opposed to a single room. Most offer a full service dining area for all meals, exercise programs for individuals or groups, a hairdresser, gift shop, housekeeping/laundry service, a full social/activity program, security, as well as assisted living services. Assisted living services, if offered, include, but are not limited to, assistance in maintaining the resident's schedule for prescription medication, transportation for medical appointments, and 24 hour on-call emergency assistance. On-call emergency services may be provided by a full-time nurse who can assess situations and summon a doctor or ambulance as necessary.

Special note: Residents of a retirement center are capable of an independent lifestyle and do not require an on-site physician or personal care services. Businesses engaged in providing temporary or permanent residences which provide various levels of medical and personal care services such as feeding, bathing, and personal hygiene are to be reported separately in classification 6108.)) 6509 Assisted living and group homes

Classification 6509 applies to facilities with residents who do not require 24-hour nursing care, but often need some degree of medical monitoring and oversight, personal care, treatment, training, or supervision. Residents may need assistance due to illness, advanced age, physical or mental disabilities, dementia, homelessness or youth at risk, mental health concerns, or chemical dependency. Facilities in this classification generally provide residents a meal plan, but may also provide laundry, housekeeping, van or bus service, life or work skills training, therapy, recreational activities, social services, or even amenities such as barbers or beauticians. Most facilities in this classification are inspected and licensed by the department of social and health services (DSHS), or the department of health (DOH).

Examples of facilities in classification 6509 include:

• Adult family homes;

• Assisted living facilities;

• Continuing care retirement communities;

• Enhanced services facilities;

• Homeless shelters;

• Independent living centers;

• Intermediate care facilities;

• Hospice care centers;

• Residential treatment facilities;

• Retirement communities;

• Safe houses for victims of domestic violence;

• Transitional housing (halfway houses) for persons previously in a treatment facility or incarcerated.

Note: Some residences included in classification 6509, such as a retirement community, may not require any special facilities license from DSHS or DOH.

Types of workers employed in assisted living and group homes often include, but are not limited to:

• Activity directors;

• Caregivers;

• Cooks and chefs;

• Counselors;

• Dietary aides;

• Dieticians;

• Dishwashers;

• Drivers;

• Janitors;

• Housekeepers;

• Laundry workers;

• Lawn care workers;

• Maintenance personnel;

• Nurses;

• Nurses' aides and assistants;

• Resident assistants;

• Social workers;

• Therapists and therapists' assistants;

• Wait staff.

Medical services provided to residents in classification 6509 may include:

• Assessments for mental health, chemical abuse, or basic skills;

• Checking and monitoring for wellness;

• Dispensing medicine;

• Rehabilitative therapies;

• Physical examinations.

Personal care provided to residents may include assistance with:

• Bathing;

• Brushing teeth or hair;

• Dressing;

• Feeding;

• Shaving.

Note: Some residences may offer additional services such as haircuts, pedicures, manicures, hairstyling, eye and hearing exams, and other services not normally associated with care facilities. These services are often performed by independent contractors.

This classification excludes:

• DSHS licensed nursing homes and skilled nursing facilities that are reported in classification 6108.

• Fraternity or sorority houses that are reported in classification 6205.

• Home care providers working in their clients' homes who are to be reported in classification 6511 or 6512.

• Home health and nursing providers working in their clients' homes who are reported in classification 6110.

• Retirement communities without any services or meal plans. Generally these are apartment buildings or condominiums that simply restrict the occupants to age fifty-five or above, and are classified in 4910.

For administrative purposes, classification 6509 is divided into the following subclassification(s):

6509-04 Adult family homes, group homes, treatment centers, safe houses, shelters, halfway houses, and similar facilities not specifically assigned to another subclassification, N.O.C.

6509-07 Assisted living facilities, and retirement and continuing care communities.