Classification Change
POL 01/2020

Effective date: February 1, 2020

Application: Applies to all employer accounts on or after the effective date.

Policy subject: Rate setting, classification, and experience

Purpose:

To provide guidelines for reclassifying employers.

BACKGROUND

  1. The WCB has exclusive jurisdiction in determining whether industries or employers are within the scope of the Act and in assigning industry or employer classification (Section 20).
  2. Industry classes may be established and rearranged by the WCB (Section 119).
  3. No person shall knowingly provide false or misleading information to the Board (Section 180(a)).

POLICY

  1. An employer’s industry classification will be changed if:
    1. The nature of the business changes and the current industry classification is no longer appropriate, or
    2. The firm is misclassified.
  2. A review of an employer’s classification may be initiated by the WCB (e.g., as a result of an audit, industry classification review, etc.) or by the employer.
  3. Employers are responsible for notifying the WCB in writing of any change in their business operations or the addition of a new line of business.
  4. Employer Services will review the information received from the employer and will notify the employer of the decision in writing.
  5. If a change in classification is required due to a distinct change in the nature of the business, the effective date of the change will be the later of:
    1. The date the nature of business changed, or
    2. January 1st of the year that WCB received the request or initiated the review of the employer’s classification.
  6. If a change in classification is required due to a gradual change in the nature of the business and the date of change cannot be determined, the effective date of the change will be January 1st of the year that WCB received the request or initiated the review of the employer’s classification.
  7. If an employer has been misclassified or if an industry review results in a reclassification:
    1. If the change results in a premium decrease, the effective date of the change will be January 1st of the year the review is requested by the employer or initiated by the WCB, or
    2. If the change results in a premium increase, the effective date of the change will be January 1st of the year following the review.
  8. If an employer misrepresents the details of their business operations, resulting in the firm being misclassified under a lower rate code, the WCB will backdate the classification change up to three years prior to the classification review.
  9. Experience rating may be transferred from one classification to another in accordance with POL 21/2016, Transferring a Firm’s Experience.

Policy references

Legislative Authority

The Workers’ Compensation Act, 2013
Sections 20, 119, 180

Document History

(1)  POL and PRO 09/2007, Classification Change of (effective September 1, 2007 to January 31, 2020).
(2)  POL 05/83, Classification, Change Of (effective February 16, 1983 to August 31, 2007).

Complements

POL 14/2011 Employer Classification
POL 03/2018 Employer Audits
POL 21/2016 Transferring a Firm’s Experience

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Two people signing documents

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