Glossary · Compliance
Workers' Compensation Class Code
A four-digit code (NCCI or state-specific) that classifies a job's injury risk and determines the workers' compensation rate applied to its payroll.
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NCCI publishes the master class-code system used in most states. A handful of states (CA, NY, NJ, PA, DE, MA, MI, MN, WI) maintain independent rating bureaus with their own class-code systems.
Class-code accuracy is foundational to comp pricing. PEOs commonly help clients re-class payroll inside their comp program when historical classifications were wrong.
Related terms
- Workers' CompensationState-mandated insurance covering employee injuries and occupational illness. Premiums are class-coded by job duty.
- Workers' Compensation Premium AuditThe post-policy-period reconciliation in which a workers' comp carrier compares estimated payroll and class codes against actual exposure and adjusts premium.
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