Business Insurance
Workers Comp Class Code
Workers comp class codes categorize job duties by their injury risk level, with each code carrying a rate per $100 of payroll that forms the foundation of premium calculation.
Last reviewed: May 2026 · Editorial methodology
Definition
Workers compensation class codes are four-digit classification codes — maintained by NCCI in most states and by independent bureaus in a few states like California and New York — that categorize the type of work employees perform and assign a corresponding premium rate per $100 of payroll. For example, NCCI Class Code 8810 (clerical office employees) might carry a rate of $0.20/$100, while Code 5403 (carpentry) could carry $10–$25/$100 depending on the state, reflecting the vastly different injury risk profiles. A business with multiple types of employees must correctly assign payroll to each applicable class code rather than applying a single code to everyone — incorrectly using a low-risk code for employees doing physical work is considered premium fraud and can result in policy cancellation and back-premium assessments. Auditors verify class code assignment at the annual workers comp payroll audit, which reconciles estimated payroll used to set the initial premium against actual payroll. Some states allow split codes when employees perform multiple roles, so a carpenter who also does some clerical work can have their time allocated proportionally. Challenging a code classification is possible through the rating bureau's dispute process if the assigned code does not accurately describe the work performed.
Where this term matters
💡 Tip
Related terms
Cover Forge USA Editorial Team
Editorial Lead
This article was researched and written by the Cover Forge USA editorial team against federal sources (NAIC, CMS, FEMA, DOL, SSA, state DOIs) and standard policy forms. Bylines organize content by topic — they do not assert individual licensure. See our editorial-policy for details.
Reviewed 2026-06-14
Get Insurance Rate Alerts
We monitor rate filings in all 50 states. Get notified when rates change in your area — and discover new ways to save.
- ✓State-specific rate change alerts
- ✓Seasonal enrollment deadline reminders
- ✓Expert tips to lower your premiums
- ✓New coverage options in your state
Free forever. Unsubscribe with one click. No spam, ever.
Important Disclaimer
This site provides general educational information only and is not a substitute for professional insurance advice. All rates, data, and coverage details are estimates and may not reflect your actual premiums. Insurance availability and pricing vary by state, insurer, and individual risk factors. Always consult a licensed insurance professional in your state before making coverage decisions.