California After School Program Avoids Huge Additional Workers Compensation Charges!

It’s a win! And if you operate a Day Care in California and provide after school educational programs please pay close attention….

Sometimes doing what we do at Workers Compensation Consultants is very satisfying. We were just notified by the WCIRB, Workers Compensation Insurance Rating Bureau of California, that a decision in our clients favor was granted. That’s good news!

This case involved the classic reclassification of workers compensation codes at audit, this time by the California State Fund. You see our client operates a large after school education program throughout several communities in California and once their workers compensation audit was complete the auditor shifted their payroll from a more appropriate descriptive classification into a general category classification, one that was significantly higher in rate than the other. The effect of this reclassification was one of dire consequences, one that could ultimately have caused this business to close its doors.

We were asked by our client to review the classification change and assist with preparing an appeal to the WCIRB and a request for action in having this change reversed. After a review of the codes and operations it was determined a mistake was made in this reclassification by the State Fund. And with this decision, our client will avoid a huge additional workers compensation premium bill. But best of all…they will continue to provide valuable educational after school services in their communities!

Lesson Learned: If you operate a day care business in California and provide after school educational activities, have your workers compensation program reviewed! Don’t wait! Do it now! Contact our office by email or phone and we will be glad to assist you!

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