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Workers' Comp Class Codes: How They Set Your Premium
Published January 2026 7 min read
How class codes work
Workers' comp premiums are calculated as class-code rate × payroll per $100. NCCI maintains thousands of class codes; states like California, New York, Pennsylvania, and Delaware administer their own.
The most expensive misclassification mistakes
Office payroll incorrectly assigned to the governing classification is the most common (and expensive) error. Subcontractors paid without certificates often get reclassified as employees at audit. Field labor paid as 1099 without proper agreements is the highest-risk audit finding.
Disputing classification
You have the right to file an Inspection Report dispute and request reclassification via the state rating bureau. We do this for clients regularly — it's free, and the savings are typically 8–30%.
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