Policy Purpose

The purpose of this policy is to clarify the principles of employer classification and establish the criteria for when an employer will be classified under one Industry Classification or under more than one Industry Classification. It also establishes criteria on how the WCB will classify an employer whose business includes an optional component.

The Workers Compensation Board (WCB) maintains a classification system designed to place employers engaged in similar business activities into groups or Industry Classifications. This system helps to ensure that all Class E employers pay their fair share of the costs of the workers compensation system while adhering to collective liability principles.

Industry Classification is a critical step in the rate-setting process. When the WCB sets an employer's assessment rate, it first assigns each employer to the appropriate Industry Classification based on the business activities of the employer. Where an employer's business is engaged in a variety of business activities, the WCB may classify the entire operation based on the predominant activity, or may classify each Department separately.

Appendix A includes a glossary of commonly used terms.