Most businesses in California are Single Enterprises, which means that all the normal and usual operations for the business are assigned to a single classification.

However, some businesses have two or more operations that cannot be easily described by a single classification. For these employers, the Multiple Enterprises rule provides direction in determining whether one or more classifications can be assigned.

Effective September 1, 2021, the Multiple Enterprises rule was amended to clarify the rule and definitions applicable to operations that constitute Multiple Enterprises to promote consistent and accurate data reporting as well as to make the rule simpler and easier to administer.

Under the revised Multiple Enterprises rule, the key to determining whether operations can be separately classified is physical separation of the operations. If the distinct operations of the business are physically separated, each operation can be separately classified; if they are not physically separated, the operations must be assigned to the highest-rated classification applicable to any of these operations conducted in a common workspace.

Visit the Multiple Enterprises page on wcirb.com to view the full text of the new rule.

Watch WCIRB Classification Education and Development Director Brian Gray explain the Multiple Enterprises rule changes in this six-minute video.