What are Workers Compensation Classification Codes?
These are the unique system of classification codes used by insurance companies to figure out the each worker’s compensation insurance premium. Each code is a four digit number assigned by the WCIRB (Workers' Compensation Insurance Rating Bureau).
Exploring compensation codes in detail can help employers understand how to classify codes to save money. These codes not only distinguish the various job duties an employee performs, but also indicate the type of risk and hazard associated with a particular job or a work environment.
In California, the workers comp codes are a part of California Labor Code. A major part of these codes can be found in the Labor Code’s Division 4. There are five major code sections:
Labor Code Section 4600 – This one covers medical treatment. According to this section, it is mandatory for employers to provide medical treatment to their employees. This includes:
- Surgical treatment
- Chiropractic treatment
- Acupuncture treatment
- General medicine treatment
Labor Code Section 4060 – This section deals with a situation where it’s been denied that you have a compensable injury. A compensable injury means any injuries for which the insurance company has to indemnify.
Labor Code Section 4061 - This code applies when your claim has been accepted by the insurance company, but your extent of impairment is questioned. It gives further instructions on how to get your medical evaluation done to decide this issue and whether you should hire a workers comp attorney.
Labor Code Section 4062 – This code section is all about how the compensability of your injury or the extent of your permanent disability should be dealt with.
Labor Code Section 4650 - This code section deals with the deadline of payments and the penalties provided by your employer’s insurance company. These will be assessed if the payments are late.
California Division of Workers Compensation provides detailed information on the compensation codes. From the information given on Workers Compensation Classification Code, it is evident that these codes help both employer and employees. It helps the employer compute the amount for premium and penalties and also protects the rights of workers.