Construction Workers Comp Code 0042 -Landscape Gardening & Drivers

0042 Workers Comp Code Most Misclassified Construction Workers Comp Class Code According To NCCI

NCCI maintains an ongoing construction workers comp program called the Classification Inspection Program in all NCCI states through which it conducts classification inspections. The intent of this is to monitor the application of the NCCI classification codes to determine the accuracy of those NCCI Codes used on an insured's policy and to the extent they accurately reflect the policy holder's operations.

One of the NCCI findings from the most recent "Top 10 List" is that workers comp class code 0042 was one of the top ten most misclassified workers comp class codes in 2023. In fact, among construction class codes, it was the #1 most misclassified classification code, and one of only 2 codes for construction to make the list.

We have reviewed NCCI's Top Ten List every year going back to 2020, and 0042 workers comp code is on this list every year.

And, in 2023 NCCI continued to reclassify employers from Class Code 0042 to Workers Comp Code 9102—Lawn Maintenance—Commercial or Domestic & Drivers at a significant rate. Of the Class Code 0042 policies inspected, NCCI reported that for 2023 shows that they reclassified 69% to Class Code 9102. That work comp class code reassignment rate was 73% in their 2022 analysis.

Significant Premium Impact

I checked the rate for both workers comp construction class codes here in Missouri and NCCI Code 0042 is 2 1/2 times the rate of 9102. Rates in different states will be higher or lower than others, but that relationship (0042 being much higher than 9102) will be consistent. And, that's a significant overcharge for those misclassified in the 0042 workers comp code.

Even for those whose governing class code is accurately assigned the 0042 workers comp code, they could be missing savings opportunities through construction workers comp Separation Of Payroll rules based on this pricing differential.

0042 Workers Comp Code Overview

Before discussing the reassignment of Class Code 0042 to Workers Comp Code 9102, let's have a brief overview.

WC Class Code 0042 "Landscape Gardening & Drivers" is designed to cover landscape gardening activities, focusing on the installation of new landscaping. As such, 0042 is one of the many workers compensation class codes for construction.

This classification applies to work such as:

Planning, clearing, grading, and planting:
- Includes activities for new landscaping projects, such as the installation of flowers, lawns, shrubs, or trees.
- Covers “fine grading” and clearing operations needed for finishing work on the landscape, excluding any major land contour changes.

9102 Workers Comp Code Overview

"Lawn Maintenance—Commercial or Domestic & Drivers" is not a construction workers comp code, and it strictly applies to maintenance. 9102 encompasses services provided for maintaining existing lawns, gardens, and grounds, distinguishing it from new landscaping installations. This classification includes:

Typical lawn maintenance activities:
- Tasks include lawn mowing, aerating, thatching, raking, applying granular or liquid fertilizers, and spraying insecticides or weed control. Shrub and small tree trimming performed from the ground is also included, as long as no equipment such as ladders or hoisting devices is used.

Workers Comp Code 9102 Lawn Maintenance Employee

Reassignment Of Work Comp Code 0042 To Work Comp Code 9102

NCCI reassigned employers from NCCI Class Code 0042 to Code 9102 because the work they perform is better described as maintenance operations and not construction; new landscape installations.

They also noted cases where both work comp class codes, Code 0042 and Code 9102, are properly assigned to a policy due to the fact that the employer performs both activities. However, NCCI changed the governing code on the insured's policy from Code 0042 to Code 9102 due to the fact that many inspections revealed cases where more employees were assigned to Code 9102 rather than Code 0042.

Similarities Between Work Comp Code 0042 And Work Comp Code 9102 (Or, Why The Confusion?)

A clear distinction comes down to, as previously stated, whether the focus is on establishing new landscapes or maintaining existing ones. The similarity in the operations and tools allowed alongside minor overlaps in permissible tasks is what frequently causes confusion between 0042 and 9102. For instance:

1. Type of Work (Outdoor Grounds and Lawn Care)

Completed 0042 Workers Comp Code Project

Both codes involve outdoor activities aimed at maintaining or improving the appearance and health of lawns, plants, and general green spaces. This includes tasks like:

- Lawn mowing and raking.
- Applying fertilizers or insecticides to lawns and shrubs.
The shared task of fertilizing and spraying foliage often causes overlap in understanding where landscape preparation ends, and ongoing lawn maintenance begins.

2. Overlap in Plant Care and Minor Landscaping Tasks

Both 0042 and 9102 allow for some plant and shrub care:
- Code 0042 allows for incidental plant installation (shrubs, trees, flowers) as part of broader landscaping projects.
- Code 9102 permits minor shrub and plant replacement as part of lawn maintenance, provided these tasks are secondary to primary maintenance duties.

3. Use of Drivers and Similar Equipment

Both codes involve the use of equipment and drivers for transportation, lawn mowing, spraying, and other garden-related tasks, which can appear similar operationally.

Companion Workers Comp Class Codes

Another source of confusion could be that Class Code 0042 and Code 9102 may be, and frequently are, assigned to the same employer. This can be done provided the employer maintains verifiable payroll records. Otherwise, the payroll will all be assigned to the highest rated (most expensive) code.

This is an example of "Companion Classification Codes." Alongside 0042 and 9102, the 6217 workers comp code (Excavation & Drivers) is another common companion code found on these same policies.

Code 6217 is another one of the many construction workers comp codes and is used for heavier excavation work related to site preparation, including major contour changes, filling, and backfilling, which are outside the scope of Code 0042. It's easy to imagine landscaping projects (0042) would often involve preliminary site work (class code 6217) and require ongoing care post-installation (9102).

Both class code 9102 and workers comp code 6217 act as appropriate companion codes to 0042 when landscaping operations involve both maintenance and excavation beyond standard landscaping work. Remember, though, that careful payroll and task separation is essential when using these codes together to ensure compliance with classification rules.

Learn More About Landscaping And Lawn Maintenance Workers Comp Class Codes

Construction Workers Compensation Class Code Lookup Table

If you still have questions after doing some of your own research, want to know how a reassignment could effect your experience modification rate, need more detailed classification information, or would just like help, call us.

Stuart Cytron • stuart@cytrongroup.com • LinkedIn • (314) 757-8079 t