(1)Professional and semiprofessional athletic teams. Athletes assigned and under contract to a Washington-domiciled sports team are mandatorily covered by Washington industrial insurance. Athletes assigned to a Washington-domiciled sports team but under contract with a parent team domiciled outside of the state are mandatorily covered by Washington industrial insurance unless the player is eligible for coverage in another state, and there is a valid coverage agreement as described below. A player is eligible for coverage in another state only when both the player and the employer agree in writing that the employment is principally localized in that state.
Example: If the Washington-based team is a part of a league with teams in only Washington, Oregon, and Idaho, the player and the employer can agree to any of those three states to provide coverage. However, they cannot agree to be under California coverage since California doesn't qualify as a state in which the player competes in regularly scheduled games.
(a) Upon request, the department will provide forms to the owners of professional and semiprofessional sports teams for entering into agreements for both the sport player and the sport team. These agreements are referred to as "coverage agreements." Unless coverage is refused in the alternative state, the coverage agreement will determine the worker's home state for workers' compensation coverage.(b) When a sport team and a player agree to workers' compensation coverage in another state, the following rules apply: Sport player coverage agreement:
(i) A sport player coverage agreement must be signed by the team (employer) and each individual player (worker) covered out-of-state. Workers' compensation premiums for any work performed by the player before the agreement was signed must be paid to the department. To be valid, an agreement must be: * Signed by both parties, dated, and show the name of the state where coverage is provided.
* Agree that the player's employment is principally located in that state.
* Kept as part of the employer's records for at least three years after the player is released from the team.
(ii) The employer must provide the department a copy of a sport player coverage agreement when requested. Employers who do not provide the department copies of a sport player coverage agreement when requested are considered not to have secured payment of compensation as required and all premiums and penalties allowed for in Title 51 RCW will apply.(iii) If the employers' out-of-state workers' compensation insurer rejects an injury claim because the player is a Washington worker, the employer is considered not to have secured payment of compensation as required and all premium and penalties allowed for in Title 51 RCW apply.Sport team coverage agreement:
(c) A sport team coverage agreement must be signed by the employer (team) and the qualifying out-of-state workers' compensation insurer. Workers' compensation premiums for work performed before the agreement was signed must be paid to the department. To be valid, an agreement must: * Be signed by both parties, dated, and show the name of the state where coverage is provided.
* Specify that the team's players are principally localized in that state.
* Specify the insurer agreeing to provide coverage for a team based in Washington.
(d) The sport team coverage agreement must be signed annually. Copies of the agreement along with a current copy of the team's out-of-state insurance policy must be submitted to the department of labor and industries every year the out-of-state coverage is provided. Premium payments are required for any work performed by Washington players prior to the date the department receives copies of any year's current sports teams' coverage agreement and proof of out-of-state coverage.
(3)Special trucking industry rules. The following subsection shall apply to all trucking industry employers as applicable. This subsection does not apply to workers working for trucking industry employers when those workers are not included in the scope of classification 1102.(a) Insurance liability. Every trucking industry employer operating as an intrastate carrier or a combined intrastate and interstate carrier or with any workers engaged in intrastate truck driving must insure their workers' compensation insurance liability through the Washington state fund or be self-insured with the state of Washington. Washington employers operating exclusively in interstate or foreign commerce or any combination of interstate and foreign commerce must insure their workers' compensation insurance liability for their Washington workers:
* With the Washington state fund; or
* Be self-insured with the state of Washington; or
* Provide workers' compensation insurance, that does not exclude Washington, for their Washington workers under the laws of another state when such other state law provides for such coverage.
Interstate or foreign commerce trucking employers who insure their workers' compensation insurance liability under the laws of another state must provide the department with copies of their current policy and applicable endorsements upon request.
Employers who elect to insure their workers' compensation insurance liability under the laws of another state and who fail to provide updated policy information when requested to do so will be declared an unregistered employer and subject to all the penalties contained in Title 51 RCW.
(b) Reporting. Trucking industry employers insuring their workers' compensation insurance liability with the Washington state fund shall keep and preserve all original time records/books including supporting information from drivers' logs for a period of three calendar years plus three months. Employers are to report actual hours worked, including time spent loading and unloading trucks, for each driver in their employ. For purposes of this section, actual hours worked does not include time spent during lunch or rest periods or overnight lodging.
Failure of employers to keep accurate records of actual hours worked by their workers will result in the department estimating work hours by dividing gross payroll wages by the state minimum wage for each worker for whom records were not kept. However, in no case will the estimated or actual hours to be reported exceed 520 hours per calendar quarter for each worker.
(c) Exclusions. Trucking industry employers meeting all of the following conditions are exempted from mandatory coverage.(i) Must be engaged exclusively in interstate or foreign commerce.(ii) Must have elected to cover their Washington workers on a voluntary basis under the Washington state fund and must have elected such coverage in writing on forms provided by the department.(iii) After having elected coverage, withdrew such coverage in writing to the department on or before January 2, 1987. If all the conditions set forth in (i), (ii), and (iii) of this subsection have not been met, employers must insure their workers' compensation insurance liability with the Washington state fund or under the laws of another state.
(d) Definitions. For purposes of interpretation of RCW 51.12.095(1) and administration of this section, the following terms shall have the meanings given below:(i) "Agents" means individuals hired to perform services for the interstate or foreign commerce carrier that are intended to be carried out by the individual and not contracted out to others but does not include owner operators as defined in RCW 51.12.095(1).(ii) "Contacts" means locations at which freight, merchandise, or goods are picked up or dropped off within the boundaries of this state.(iii) "Doing business" means having any terminals, agents or contacts within the boundaries of this state.(iv) "Employees" means the same as the term "worker" as contained in RCW 51.08.180.(v) "Interstate carrier" means a carrier that hires drivers engaged in interstate trucking.(vi) "Interstate truck driving" is operating a truck hauling goods either to or from an out-of-state destination.(vii) "Intrastate carrier" means a carrier that hires drivers engaged in intrastate trucking.(viii) "Intrastate truck driving" is operating a truck hauling goods between locations within the boundaries of Washington state. In-trastate truck driving includes when the origin or destination of the load is out-of-state but the driver does not continue out-of-state with the load. For purposes of this section the content of the load or the existence of any actual load is not material, so long as the driver is engaged in work for the employer.
(ix) "Terminals" means a physical location wherein the business activities (operations) of the trucking company are conducted on a routine basis. Terminals will generally include loading or shipping docks, warehouse space, dispatch offices and may also include administrative offices.(x) "Washington" shall be used to limit the scope of the term " worker." When used with the term " worker" it will require the following test for benefit purposes (all conditions must be met). * The individual must be hired in Washington or must have been transferred to Washington; and
* The individual must perform some work in Washington (i.e., driving, loading, or unloading trucks).
(4)Forest, range, or timber land services-Industry rule. Washington law (RCW 51.48.030) requires every employer to make, keep, and preserve records which are adequate to facilitate the determination of premiums due to the state for workers' compensation insurance coverage for their covered workers. In the administration of Title 51 RCW, and as it pertains to the forest, range, or timber land services industry, the department of labor and industries has deemed the records and information required in the various subsections of this section to be essential in the determination of premiums due to the state fund. The records so specified and required, shall be provided at the time of audit to any representative of the department who has requested them. Failure to produce these required records within 30 days of the request, or within an agreed upon time period, shall constitute noncompliance of this rule and RCW 51.48.030 and 51.48.040. Employers whose premium computations are made by the department in accordance with (d) of this subsection are barred from questioning, in an appeal before the board of industrial insurance appeals or the courts, the correctness of any assessment by the department on any period for which such records have not been kept, preserved, or produced for inspection as provided by law.
(a) General definitions. For purpose of interpretation of this section, the following terms shall have the meanings given below:(i) "Actual hours worked" means each workers' composite work period beginning with the starting time of day that the employees' work day commenced, and includes the entire work period, excluding any non-paid lunch period, and ending with the quitting time each day work was performed by the employee.(ii) "Work day" shall mean any consecutive 24hour period.(b) Employment records. Every employer shall with respect to each worker, make, keep, and preserve original records containing all of the following information for three full calendar years following the calendar year in which the employment occurred:(i) The name of each worker;(ii) The Social Security number of each worker;(iii) The beginning date of employment for each worker and, if applicable, the separation date of employment for each such worker;(iv) The basis upon which wages are paid to each worker;(v) The number of units earned or produced for each worker paid on a piece-work basis;(vi) The risk classification(s) applicable to each worker;(vii) The number of actual hours worked by each worker, unless another basis of computing hours worked is prescribed in WAC 296-17-31021. For purposes of chapter 296-17 WAC, this record must clearly show, by work day, the time of day the employee commenced work, and the time of day work ended;(viii) A summary time record for each worker showing the calendar day or days of the week work was performed and the actual number of hours worked each work day;(ix) In the event a single worker's time is divided between two or more risk classifications, the summary contained in (b)(viii) of this subsection shall be further broken down to show the actual hours worked in each risk classification for the worker;(x) The workers' total gross pay period earnings;(xi) The specific sums withheld from the earnings of each worker, and the purpose of each sum withheld;(xii) The net pay earned by each such worker.(c) Business, financial records, and record retention. Every employer is required to keep and preserve all original time records completed by their employees for a three-year period. The three-year period is specified in WAC 296-17-352 as the composite period from the date any such premium became due. Employers who pay their workers by check are required to keep and preserve a record of all check registers and canceled checks; and employers who pay their workers by cash are required to keep and preserve records of these cash transactions which provide a detailed record of wages paid to each worker.
(d) Recordkeeping - Estimated premium computation. Any employer required by this section to make, keep, and preserve records containing the information as specified in (b) and (c) of this subsection, who fails to make, keep, and preserve such records, shall have premiums calculated as follows:(i) Estimated worker hours shall be computed by dividing the gross wages of each worker for whom records were not maintained and preserved, by the state's minimum wage, in effect at the time the wages were paid or would have been paid. However, the maximum number of hours to be assessed under this provision will not exceed 520 hours for each worker, per quarter for the first audited period. Estimated worker hours computed on all subsequent audits of the same employer that disclose a continued failure to make, keep, or preserve the required payroll and employment records shall be subject to a maximum of 780 hours for each worker, per quarter.(ii) In the event an employer also has failed to make, keep, and preserve the records containing payroll information and wages paid to each worker, estimated average wages for each worker for whom a payroll and wage record was not maintained will be determined as follows: The employer's total gross income for the audit period (earned, received, or anticipated) shall be reduced by 35 percent to arrive at "total estimated wages." Total estimated wages will then be divided by the number of employees for whom a record of actual hours worked was not made, kept, or preserved to arrive at an "estimated average wage" per worker. Estimated hours for each worker will then be computed by dividing the estimated average wage by the state's minimum wage in effect at the time the wages were paid or would have been paid as described in (d)(i) of this subsection.(e) Reporting requirements and premium payments.(i) Every employer who is awarded a forest, range, or timber land services contract must report the contract to the department promptly when it is awarded, and prior to any work being commenced, except as provided in (e)(iii) of this subsection. Employers reporting under the provisions of (e)(iii) of this subsection shall submit the informational report with their quarterly report of premium. The report shall include the following information:(A) The employers' unified business identification account number (UBI).(B) Identification of the landowner, firm, or primary contractor who awarded the contract, including the name, address, and phone number of a contact person.(C) The total contract award.(D) Description of the forest, range, or timber land services work to be performed under terms of the contract.(E) Physical location/site where the work will be performed including legal description.(F) Number of acres covered by the contract.(G) Dates during which the work will be performed.(H) Estimated payroll and hours to be worked by employees in performance of the contract.(ii) Upon completion of every contract issued by a landowner or firm that exceeds a total of $10,000, the contractor primarily responsible for the overall project shall, in addition to the required informational report described in (e)(i) of this subsection, report the payroll and hours worked under the contract, and submit payment for required industrial insurance premiums. In the event that the contracted work is not completed within a calendar quarter, interim quarterly reports and premium payments are required for each contract for all work done during the calendar quarter. The first such report and payment is due at the end of the first calendar quarter in which the contract work is begun. Additional interim reports and payments will be submitted each quarter thereafter until the contract is completed. This will be consistent with the quarterly reporting cycle used by other employers. Premiums for a calendar quarter, whether reported or not, shall become due and delinquent on the day immediately following the last day of the month following the calendar quarter.(iii) A contractor may group contracts issued by a landowner, firm, or other contractor that total less than $10,000 together and submit a combined quarterly report of hours, payroll, and the required premium payment in the same manner and periods as nonforestation, range, or timber land services employers.(f) Out-of-state employers. Forest, range, or timber land services contractors domiciled outside of Washington state must report on a contract basis regardless of contract size for all forest, range, or timber land services work done in Washington state. Out-of-state employers will not be permitted to have an active Washington state industrial insurance account for reporting forest, range, or timber land services work in the absence of an active Washington forest, range, or timber land services contract.(g) Work done by subcontract. Any firm primarily responsible for work to be performed under the terms of a forest, range, or timber land services contract, that subcontracts out any work under a forest, range, or timber land services contract must send written notification to the department prior to any work being done by the subcontractor. This notification must include the name, address, Social Security number, farm labor contractor number, (UBI) of each subcontractor, and the amount and description of contract work to be done by subcontract.(h) Forest, range, or timber land services contract release -Verification of hours, payroll, and premium. The department may verify reporting of contractors by way of an on-site visit to an employer's work site. This on-site visit may include close monitoring of employees and employee work hours. Upon receipt of a premium report for a finished contract, the department may conduct an audit of the firm's payroll, employment, and financial records to validate reporting. The entity that awarded the contract can verify the status of the contractors' accounts online at the department's website (www.lni.wa.gov) or by calling the account manager. The landowner, firm, or contractor will not be released from premium liability until the final report for the contract from the primary contractor and any subcontractors has been received and verified by the department.(i) Premium liability - Work done by contract. Washington law (RCW 51.12.070) places the responsibility for industrial insurance premium payments primarily and directly upon the person, firm, or corporation who lets a contract for all covered employment involved in the fulfillment of the contract terms. Any such person, firm, or corporation letting a contract is authorized to collect from the contractor the full amount payable in premiums. The contractor is in turn authorized to collect premiums from any subcontractor they may employ his or her proportionate amount of the premium payment. To eliminate premium liability for work done by contract permitted by Title 51 RCW, any person, firm, or corporation who lets a contract for forest, range, or timber land services work must submit a copy of the contract they have let to the department and verify that all premiums due under the contract have been paid.
Each contract submitted to the department must include within its body, or on a separate addendum, all of the following items:
(i) The name of the contractor who has been engaged to perform the work;(ii) The contractor's UBI number;(iii) The contractor's farm labor contractor number;(iv) The total contract award;(v) The date the work is to be commenced; a description of the work to be performed including any pertinent acreage information;(vi) Location where the work is to be performed;(vii) A contact name and phone number of the person, firm, or corporation who let the contract;(viii) The total estimated wages to be paid by the contractor and any subcontractors;(ix) The amount to be subcontracted out if such subcontracting is permitted under the terms of the contract;(x) The total estimated number of worker hours anticipated by the contractor and his/her subcontractors in the fulfillment of the contract terms;(j) Reports to be mailed to the department. All contracts, reports, and information required by this section are to be sent to: The Department of Labor and Industries
Reforestation Team 8
P.O. Box 44168
Olympia, Washington 98504-4168
(k) Rule applicability. If any portion of this section is declared invalid, only that portion is repealed. The balance of the section shall remain in effect.(6)Special drywall industry rule.(a)What is the unit of exposure for drywall reporting? Your premiums for workers installing and finishing drywall (reportable in risk classifications 0540, 0541, 0550, and 0551) are based on the amount of material installed and finished, not the number of hours worked. The amount of material installed equals the amount of material purchased or taken from inventory for a job. No deduction can be made for material scrapped (debris). A deduction is allowed for material returned to the supplier or inventory.
The amount of material finished for a job equals the amount of material installed. No deduction can be made for a portion of the job that is not finished (base layer of double-board application or unfinished rooms).
Example: Drywall installation firm purchases 96 4' x 8' sheets of material for a job which includes some double-wall installation. The firm hangs all or parts of 92 sheets, and returns 4 sheets to the supplier for credit. Drywall finishing firm tapes, primes and textures the same job. Both firms should report 2,944 square feet (4 x 8 x 92) for the job.
(b)I do some of the work myself. Can I deduct material I as an owner install or finish? Yes. Owners (sole proprietors, partners, and corporate officers) who have not elected coverage may deduct material they install or finish. When you as an owner install (including scrap) or finish (including tape and prime or texture) only part of a job, you may deduct an amount of material proportional to the time you worked on the job, considering the total time you and your workers spent on the job.
To deduct material installed or finished by owners, you must report to the department by job, project, site or location the amount of material you are deducting for this reason. You must file this report at the same time you file your quarterly report:
Total owner hours ÷ (owner hours + worker hours) = % of owner discount.
% of owner discount x (total footage of job - subcontracted footage, if any) = Total owner deduction of footage.
(c)Can I deduct material installed or finished by subcontractors? You may deduct material installed or taped by subcontractors you are not required to report as your workers. You may not deduct for material only scrapped or primed and textured by subcontractors. To deduct material installed or taped by subcontractors, you must report to the department by job, project, site or location the amount of material being deducted. You must file this report at the same time you file your quarterly report. You must have and maintain business records that support the number of square feet worked by the subcontractor.
(d)I understand there are discounted rates available for the drywall industry. How do I qualify for them? To qualify for discounted drywall installation and finishing rates, you must: (i) Have an owner attend two workshops the department offers (one workshop covers claims and risk management, the other covers premium reporting and recordkeeping);(ii) Provide the department with a voluntary release authorizing the department to contact material suppliers directly about the firm's purchases;(iii) Have and keep all your industrial insurance accounts in good standing (including the accounts of other businesses in which you have an ownership interest), which includes fully and accurately reporting and paying premiums as they come due, including reporting material deducted as owner or subcontractor work;(iv) Provide the department with a supplemental report (filed with the firm's quarterly report) showing by employee the employee's name, Social Security number, the wages paid them during the quarter, how they are paid (piece rate, hourly, etc.), their rate of pay, and what work they performed (installation, scrapping, taping, priming/texturing); and(v) Maintain accurate records about work you subcontracted to others and materials provided to subcontractors (as required by WAC 296-17-31013), and about payroll and employment (as required by WAC 296-17-35201). The discounted rates will be in effect beginning with the first quarter your business meets all the requirements for the discounted rates.
Note: | If you are being audited by the department while your application for the discounted classifications is pending, the department will not make a final decision regarding your rates until the audit is completed. |
(e)Can I be disqualified from using the discounted rates? Yes. You can be disqualified from using the discounted rates for three years if you:(i) Do not file all reports, including supplemental reports, when due;(ii) Do not pay premiums on time;(iii) Underreport the amount of premium due; or(iv) Fail to maintain the requirements for qualifying for the discounted rates. Disqualification takes effect when a criterion for disqualification exists.
Example: A field audit in 2002 reveals that the drywall installation firm underreported the amount of premium due in the second quarter of 2001. The firm will be disqualified from the discounted rates beginning with the second quarter of 2001, and the premiums it owed for that quarter and subsequent quarters for three years will be calculated using the nondiscounted rates.
If the drywall underwriter learns that your business has failed to meet the conditions as required in this rule, your business will need to comply to retain using the discounted classifications. If your business does not comply promptly, the drywall underwriter may refer your business for an audit.
If, as a result of an audit, the department determines your business has not complied with the conditions in this rule, your business will be disqualified from using the discounted classifications for three years 36 months) from the period of last noncom-pliance.
(f)If I discover I have made an error in reporting or paying premium, what should I do? If you discover you have made a mistake in reporting or paying premium, you should contact the department and correct the mistake. Firms not being audited by the department that find errors in their reporting and paying premiums, and that voluntarily report their errors and pay any required premiums, penalties and interest promptly, will not be disqualified from using the discounted rates unless the department determines they acted in bad faith.Statutory Authority: RCW 51.04.020, 51.16.035, and 51.16.210. 12-24-067, § 296-17-35203, filed 12/4/12, effective 1/4/13. Statutory Authority: RCW 51.04.020, 51.16.035, and 51.16.100. 12-11-109, § 296-17-35203, filed 5/22/12, effective 7/1/12; 11-24-022, § 296-17-35203, filed 11/30/11, effective 1/1/12. Statutory Authority: RCW 51.04.020 and 51.12.120(6). 10-21-089, § 296-17-35203, filed 10/20/10, effective 1/1/11. Statutory Authority: RCW 51.16.035, 51.16.100, 51.04.020(1). 09-16-110, § 296-17-35203, filed 8/4/09, effective 10/1/09. Statutory Authority: 2008 c 88, RCW 51.12.120, 51.16.035, and Title 51 RCW. 08-20-133, § 296-17-35203, filed 10/1/08, effective 11/1/08. Statutory Authority: RCW 51.16.035, 51.16.100, and 2007 c 324. 07-24-045, § 296-17-35203, filed 12/1/07, effective 1/1/08. Statutory Authority: RCW 51.06.035, 51.08.010, 51.04.020. 07-12-045, § 296-17-35203, filed 5/31/07, effective 7/1/07. Statutory Authority: RCW 51.16.035 and 51.16.100. 06-23-127, § 296-17-35203, filed 11/21/06, effective 1/1/07; 05-23-161, § 296-17-35203, filed 11/22/05, effective 1/1/06. Statutory Authority: RCW 51.04.020, 51.16.035, and 51.12.120. 03-23-025, § 296-17-35203, filed 11/12/03, effective 1/1/04. Statutory Authority: RCW 51.04.020, 51.16.035, 51.32.073. 02-09-093, § 296-17-35203, filed 4/17/02, effective 7/1/02. Statutory Authority: RCW 51.16.035. 01-23-059, § 296-17-35203, filed 11/20/01, effective 1/1/02; 99-18-068, § 296-17-35203, filed 8/31/99, effective 10/1/99; 98-18-042, § 296-17-35203, filed 8/28/98, effective 10/1/98.