11 code 120 non economic change check
Non-Economic Code Change Check - Code 120
This edit checks for mid-year code changes - including county, ownership, NAICS, and New England township code - which are expected not to occur without an economic basis. The fields are checked for changes only if the processing quarter is greater than ‘1’ (i.e., the April to December time frame), and if the account’s average monthly employment meets or exceeds the code change AME parameter (Lookup File record key PK009). In addition, the status code for both the processed and previous quarter must show the account to be active. If an account had been inactive, and is reactivated in a subsequent quarter under a different coding structure, this is not a non-economic code change. Master accounts are also bypassed, since some States will update the NAICS code (to show the most prevalent industry) each quarter. However, if an account had been a master in the previous quarter but is now a single (a collapsing of the worksite family), it is still subject to this edit. Such worksite consolidations should be performed only during the first calendar quarter.
Several exceptions to the code change rule exist. A county code is allowed to change in mid-year if the previous quarter’s value was non-numeric, or was either ‘000’ or one of the 900-series (‘900’, ‘996’, ‘998’, or ‘999’). The ownership code can change if the previous value was either not numeric or was ‘00’. The township (sub-county zones are exempt) may also be changed from a ‘000’, ‘900’, ‘995’, ‘996’, ‘998’, or ‘999’ value to a valid township code. NAICS code changes can occur for accounts with non-numeric, ‘000000’, or ‘999999’ values currently. Master accounts (with an MEEI code of ‘2’) in either the current or prior quarter are bypassed. If none of these extenuating circumstances exists, however, the field will be flagged for a potential non-economic code change. The edit report will list the prior quarter’s value, so that the QCEW analyst can directly compare the fields without requiring the ES2C screen’s inquiry feature.
Unfortunately, this edit disregards the economic code change indicator values that could justify mid-year code changes. This was a consistency issue, since the “ECCI” is excluded from the EQUI deliverable (though a BLS review is underway to evaluate the possibility of including this field). Therefore, the BLS edits have no access to this indicator, which would provide the economic justification for the visible code change. As a result, all mid-year code changes need to be reviewed. BLS classification: B.1.7. EXPO “G” code: B120.
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