New rules for brewery, distillery, and winery operations and tips, automatic gratuity, and service charges effective January 1, 2024

The National Council on Compensation Insurance (NCCI) implemented revisions to the Basic Manual Classifications and Rules for workers’ compensation insurance effective January 1, 2024. The revisions affect brewery, distillery, and winery operations as well as tips, service charges, and automatic gratuities.

The revisions to the Basic Manual Classifications reflect the evolution of brewery, distillery, and winery operations from traditional business models to include a variety of other operations, such as microbreweries, brewpubs, tap or tasting rooms, on-site facility tours, and retail shopping. The revisions provide more specific and accurate classifications for these operations and clarify the applicable payroll and premium calculations.

The revisions to the Basic Manual Rules address the issue of service charges and automatic gratuities, which have grown in recent years. The revisions establish a rule to include service charges and automatic gratuities received by employees in payroll, as they are considered wages and not tips. The revisions align with the Internal Revenue Service’s (IRS) Publication 15, Employer’s Tax Guide, which states, “Service charges aren’t tips; therefore, withhold taxes on service charges as you would on regular wages.” The revisions also clarify the rule to exclude tips or other gratuities received by employees in a manner consistent with Oregon Law.

These updates are intended to provide more clarity and consistency for employers and employees in the brewery, distillery, and winery industries and the service industry. The revisions are based on NCCI’s research and carrier feedback and have been approved by the Oregon Department of Consumer and Business Services.

The revisions apply to new and renewal policies effective on or after January 1, 2024.

For more information on these revisions and others, and how they may affect your policy, please visit the NCCI website or contact your SAIF underwriter.