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Classification procedures

Your business is assigned a classification designed to reflect your operations.

Background

The purpose of the workers' comp classification system is to group employers with similar operations into classifications so that:

  • Your assigned classification reflects operations common to businesses like yours.
  • The rate charged reflects the exposure to loss common to businesses like yours.

Classification rules apply separately to each legal entity, even if multiple entities have common or majority ownership.

If no classification clearly describes your business, the classification that most closely describes your business must be assigned.

The system may assign more than one classification to your business. When a worker's duties interchange between two or more class codes, you may allocate his or her wages between the classes only if you keep verifiable time records.

Accessing the class code list

For specific class code information, please call us at 800.285.8525. Class codes are not posted on this website for a couple very good reasons.  Learn more

General classification rules

  • Classification rules apply separately to each legal entity.
  • Subject to certain exceptions, the system assigns one basic classification that best describes your business for manufacturing, assembly, fabrication, service, and all other business types not listed below under Specific classification rules. 
  • Your business is classified, not the individual employments, occupations, departments, or operations within your business. 
  • Most basic classifications include all the various types of labor found in the business—such as supervision, safety, quality control, engineering, training, warehouse, storeroom, parts room, tool room, maintenance, janitorial, watchpersons, security, shipping and receiving. Certain exceptions are found in the logging, lumber, and trucking industries.
  • Pay types—such as holiday, sick, nonexcludable bonuses, meetings, training, safety meetings, stand-by, idle time, or on-call duty—are assigned to the classification for work normally performed by the employee. See our Verifiable time records page for employees assigned to more than one classification.

Separate classifications

The system assigns more than one classification if the basic classification describing your business requires certain operations to be separately rated or if you operate more than one business. To qualify for a separate classification, your additional or secondary business operation must meet all three of these conditions:

  • Be able to exist as a separate business if the principal business ceased to exist 
  • Be located in a separate building, separate floor, or otherwise physically separated from the principal business by structural partitions or walls 
  • Maintain separate payroll records for each operation

If the additional or secondary business operation does not meet these conditions, it must be separately classified only if the rate for the additional business is higher than or equal to the rate of the basic classification for the principal business.

Specific classification rules

There are specific classification rules associated with certain industries. To learn more, click on a link below:

There also are specific classification rules associated with certain types of employees who are common to most all industries. To learn more, click on a link below:

General exclusions

Some operations in a business are so unusual that they are separately classified even though they are not conducted as a secondary business. They are:

  • Aviation (all operations of the flying and ground crews) 
  • Child day care centers and child day camps 
  • New construction or alterations 
  • Sawmill operations 
  • Stevedoring

Appealing class codes or rules

If you disagree with a class code assigned to your policy, you may appeal.

Steps for resolving a dispute

1. Contact your SAIF representative to try to resolve the dispute.

2. If you still disagree with SAIF's position, send a written request to the regulatory services manager for the National Council on Compensation Insurance (NCCI). (See contact information below.)

The regulatory services manager will research each area of concern and provide a written explanation on the correct application of the rule or classification in dispute.
Send a written request to:

Michael Craddock
Underwriting dispute consultant
NCCI, Inc.
901 Peninsula Corporate Circle
Boca Raton, FL, 33487-1362

P: 561.706.4579
F: 561.893.5365
michael_craddock@ncci.com

Submit documentation supporting your position, including your record of attempts to resolve the dispute.

3. If you disagree with the explanation provided by NCCI's regulatory services manager, he or she will arrange for a meeting before the Oregon Workers' Compensation Rating System Review and Advisory Committee (commonly known as ORAC) upon written notice of the ongoing dispute.

ORAC's dispute resolution service provides an opportunity for employers and insurance companies to resolve conflicts without the burden of legal fees and potential conflict. An employer who believes the rules or classifications of the workers' comp system have not been properly applied to his or her policy can request assistance from ORAC in resolving the dispute.

Types of appeals

ORAC has the authority to hear disputes relating to:

  • Experience rating modification factors 
  • Classification assignments 
  • Application of rules contained in NCCI manuals