The Stakes: A Wisconsin auto repair business with seven employees faced a sudden financial threat. An unannounced audit by the Rating Board resulted in a reclassification from “Auto Repair” to the much higher-risk “Auto Dismantling.” This ruling was set to skyrocket their premiums for years to come.
The Investigation: The auditor had made a common assumption. They looked at the company’s revenue streams and saw that dismantling brought in the most money. However, a Certified WorkComp Advisor (CWCA) knew that revenue isn’t always the deciding factor. They dug into the payroll records.
The Breakthrough: The Advisor drafted a technical appeal to the Rating Board, arguing that under classification rules, payroll allocation—not revenue—dictates the code. Since the majority of the staff’s time (and payroll) was spent on repairs and parts sales, the lower rate should apply.
The Result: The Rating Board agreed with the technical correction and reversed the ruling. The company avoided thousands of dollars in unjustified premium hikes.