Workers comp class code

Definition

Workers comp class codes are four-digit identifiers (e.g., 8810 for clerical office workers, 5183 for plumbing, 7228 for trucking — local) that classify job roles for premium calculation. Each code carries a base rate set by state regulators based on industry-wide claim experience for that occupation.

Most workforces have multiple class codes — a typical HVAC operation might have technicians on 5183 (plumbing/HVAC service), apprentices on the same code, dispatchers on 8810 (clerical), and outside sales on 8742 (outside salespersons). Splitting wages across the correct codes can dramatically reduce premium vs. assigning everyone to the highest-rate role.

Class code accuracy is one of the most common workers comp audit findings. Underclassifying (using a lower-rate code than appropriate) creates premium audit liability; overclassifying inflates current premium unnecessarily.

Common questions about Workers comp class code

Related terms

• Workers compensation insurance — Insurance that pays medical expenses and lost wages for employees injured on the job, in exchange for limiting the employer's tort liability.
• National Council on Compensation Insurance (NCCI) — The standards-setting organization for workers compensation classification codes used in most US states.
• Experience modifier (Mod) — A multiplier applied to base workers comp premium that reflects an employer's historical claim experience relative to industry peers.
• Workers comp premium audit — A post-policy-year review by the workers comp carrier to verify actual wages, class codes, and contractor relationships.

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