Class Code 2362 covers knitting operations in California, including production of knitted fabrics, garments, hosiery and related machine and hand knitting tasks. The September 1, 2026 approved pure premium rate is $10.778 per $100 of payroll, a baseline insurers use to price workers' compensation for these employers.
This classification applies to businesses whose primary work is knitting: manufacturing knitted fabric and finished knitwear using circular, flatbed, or hand-knitting processes. It includes operators of circular knitting machines, computerized flatbed knit programmers, workers who set up and maintain needles and sinkers, yarn-winding and cone-changing staff, and workers performing inspection, trimming, and packaging of knitted goods. Ancillary finishing that is integral to knitting operations—such as steaming, pressing, and light sewing that occurs on the production floor—typically falls under this code when performed by the knitting employer. Clerical staff, outside salespeople, and separately contracted dyeing or heavy finishing operations should be coded separately.
The pure premium rate of $10.778 per $100 of payroll is the insurer's baseline expected loss cost for this class—meaning $10.778 for every $100 you pay employees in this classification. Employers' actual premiums are calculated by multiplying payroll by the rate, then applying experience modification, policy adjustments, state assessments, and any employer-specific credits or debits. Accurate payroll allocation, good loss history, and safety programs can materially reduce what you pay above the pure premium.
California employers engaged in knitting must maintain an effective Injury and Illness Prevention Program (IIPP) per Cal/OSHA Title 8 §3203 and comply with Hazard Communication requirements for any chemicals used in finishing. Specific factory requirements include machine guarding and control-of-hazardous-energy (lockout/tagout) procedures, housekeeping and ventilation to control fiber lint and combustible dust hazards, and training on PPE and ergonomic safe work practices. Regular maintenance and documented training will help meet Cal/OSHA inspections and reduce citations.
A PEO like Key HR can help knitting employers manage workers' comp costs through consolidated claims management, coordinated return-to-work programs, and targeted safety training for machine guarding and ergonomic tasks. We assist with accurate class coding and payroll reporting, implement IIPP templates tailored to textile operations, and leverage larger buying power for competitive workers' comp program placement—helping reduce premium volatility for California knitters.
Get a QuoteClass Code 2362 covers knitting as the primary production activity, including both machine knitting (circular and flatbed) and hand knitting performed as part of manufacturing. Work that is strictly occasional hobby-level hand knitting or non-production craft sales should be evaluated separately.
Lower costs come from improving loss history and reducing payroll charged to the class: implement machine-guarding and lockout/tagout programs, enforce housekeeping to control lint, provide repetitive-motion and ergonomic controls, run light-duty return-to-work programs, and ensure accurate payroll classification. Experience modification reductions and safety-related credits reduce the final premium beyond the pure premium.
Common citations relate to inadequate machine guarding, missing lockout/tagout procedures during maintenance, failure to implement an effective IIPP, insufficient hazard communication for finishing chemicals, and poor housekeeping leading to lint buildup. Addressing these areas proactively reduces citation risk and workplace injuries.
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