What is a workers' comp class code?
A class code is a number, usually four digits in NCCI states, that describes what your business does, and each code carries its own rate. In most states your carrier assigns it under NCCI's Basic Manual, which classifies the business as a whole, not each job title. Clerical staff, outside salespeople, and drivers can go on separate standard exception codes, but only if they meet NCCI's rules for them.
Updated . Written by Andre Beukers, principal at Redoubt, a commercial insurance agency in Salt Lake City, not a government office.
How is my workers' comp class code assigned?
By what the business does, not what each person is called. NCCI's Basic Manual, which sets the rules in most states including Utah, says "it is the business of the employer within a state that is classified, not the separate employments, occupations, or operations within the business." Everyone starts in that one code unless a rule carves them out.
Your carrier's underwriter picks the code when the policy is written, and NCCI inspects a sample of businesses to "improve classification accuracy at policy issuance." States with an independent bureau follow that bureau's classification rules, which can differ from NCCI's, and so can the numbers: Pennsylvania's clerical code is 953, not 8810.
Can a small business have more than one class code?
Yes. Standard exceptions cover jobs found in almost every business: clerical office (8810), clerical telecommuter (8871), drivers (7380), and outside sales (8742), unless your business's code already includes them. Construction, farming, mercantile, and a few other operations may carry more than one basic code, as can a separate operation that could run as its own business.
The governing class is the basic code, other than a standard exception, with the most payroll. In the manual's own example, a drywall contractor with $50,000 of wallboard payroll and $75,000 of clerical payroll still governs as Code 5445, wallboard installation.
How do I find and check my class code?
Item 4 of your policy's Information Page "shows the rate and premium basis" for each classification. Look each code up in NCCI's free Class Look-Up and read its wording against what your people do and where they work.
If a code looks wrong, ask the carrier in writing for the rule and facts it used. You can pay NCCI for an inspection: $160 an hour on site or $225 for a virtual one, its non-affiliate prices in September 2026. Virtual inspections may not be available if payroll is over $250,000, premium is over $50,000, or the policy has two or more basic class codes. If the carrier will not change it, NCCI's dispute process covers the "application of correct class code(s)" once the undisputed premium is paid. The right code depends on your business, how your workers split their time, and your state's current manual.
What are the most common class code mistakes?
Misused carve-outs and stale codes. In NCCI's 2025 inspections, published September 2026, inspectors changed the governing code on 56% of Code 8292 storage warehouse policies, mostly to a mercantile code, and on about 29% of Code 5403 carpentry policies, most often to 5645 residential carpentry.
- An office manager on 8810 who also supervises the crew or does physical labor.
- An 8810 desk in the shop with no wall, floor, partition, or counter between it and the work.
- An estimator who measures jobsites on 8742 outside sales; NCCI excludes that work.
- One worker's pay split between codes by percentage. Without actual time records, all of it goes to the highest-rated code.
- A catch-all code kept after the business changed, like a warehouse that now ships its own products.
What does a wrong class code cost me?
The gap between codes is wide. Washington's state fund publishes a 2026 base rate of $4.6938 per hour worked for Wood Frame Building Construction (class 0510) and $0.2223 for Clerical Office (class 4904), about 21 times as much. In NCCI states the rate is per $100 of payroll and varies by carrier, so ask for the rate on each code you carry.
A code that is too low does not save money for long. The standard NCCI policy figures final premium using "the proper classifications and rates that lawfully apply," so the audit rebills the year at the right code; our wrong-class-code audit guide, linked below, covers contesting that. A code that is too high overcharges you until someone asks. Misleading a carrier on purpose to "avoid paying the premium" is a fraudulent insurance act under Utah Code 31A-31-103.
Are class codes the same in every state?
No. Three systems set the codes, and the rules and numbers differ.
| Where your employees work | Who sets the codes and rules | What that means for you |
|---|---|---|
| Most states, including Utah | NCCI's Basic Manual; your carrier assigns the code | Usually four-digit codes such as 8810. NCCI inspects and hears disputes. |
| California, New York, Pennsylvania, New Jersey, Delaware, Massachusetts, Michigan, Minnesota, Wisconsin | An independent state rating bureau (WCIRB, NYCIRB, PCRB, and others) | Its own classification rules, which can differ from NCCI's. Some bureaus use NCCI manuals by contract. Pennsylvania's clerical code is 953. |
| North Dakota, Ohio, Washington, Wyoming | The state fund, the only seller of coverage | Ohio adopts NCCI's classes by rule. Washington rates its own risk classes per hour worked. |
State lists are examples, not a complete map. Each state page in the selector below names that state's rating bureau.
Where these answers come from
Statutes, state agencies, and rating bureaus. Requirements depend on the business, the worker setup, and the current instructions of the state agency, so check the source for your state before acting.
The next question
Workers’ comp requirements in every state
Each state page gives the employee threshold, the owner and officer exemptions, the penalty for going without, the rating bureau, the market, the enforcing agency, and the exemption filing, each with its statute or agency source.
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
Class Codes FAQ
Is a class code assigned to each employee or to the business?+
To the business. The carrier assigns the code that best describes what the business does, and everyone goes in it unless a rule carves them out, such as clerical, outside sales, or drivers.
What is a governing class code?+
The basic code, other than a standard exception like 8810 clerical, with the most payroll. It sets the code for miscellaneous employees, local managers, and executive officers who regularly do foreperson, superintendent, or worker duties.
Is a class code the same as an NCCI code?+
In NCCI states, yes: the code comes from NCCI's Basic Manual. States with an independent bureau, such as Pennsylvania's PCRB, follow that bureau's rules, which can differ from NCCI's, and Washington's state fund rates its own classes by hour worked.
Can the carrier change my class code at audit?+
Yes. Final premium uses the proper classifications, so an auditor who finds different work can move payroll to another code for the whole year. Ask for the rule and facts used.
Want a second look at your class codes?
Send Redoubt your policy's Information Page and a plain description of what each person does and where they work. We will compare them with the classification wording and tell you what to ask your carrier.
This is general insurance information, not legal advice or a coverage determination. Statutes, agency instructions, policy forms, and the facts of the business control.