Sometimes one employee’s duties fit into multiple job classifications — like a manufacturing manager who spends most of his day at a desk, but some time on the factory floor.
SFM’s auditors get questioned often about what happens in these types of situations.
In Wisconsin, Iowa, Nebraska and South Dakota, these employees are classified under the higher-rated classification, unless they work in construction (more on that below).
Minnesota allows division of wages among class codes
Minnesota differs in allowing employers to divide the employees’ payroll between multiple job classifications as long as the employee spends more than a four-hour block of time in each role, and as long as the employer tracks the payroll for each job class separately.
It’s important to note that the employer can’t simply estimate the percent of time spent in each role. Payroll records must show the actual payroll applicable to each classification. If they don’t, the entire payroll will be assigned to the highest-rated class in which the employee performs work.
Special rules on class codes apply to construction workers
State laws in Minnesota and SFM’s other core states include special rules about classification for construction workers. Because construction workers might be doing a wide variety of jobs (siding one day, concrete the next, etc.) they can fall under multiple class codes as long as employers track the time spent in each class through payroll.
In the case of construction operations, Minnesota’s four-hour block rule doesn’t apply.
While there are laws and rules in place, oftentimes these situations aren’t black-and-white. If you’re an SFM policyholder, you can reach out to your SFM premium auditor for guidance about your specific situation.
This is not intended to serve as legal advice for individual fact-specific legal cases or as a legal basis for your employment practices.