Class Code 2402 covers California employers who manufacture carpets or rugs, including tufting, weaving, dyeing, backing and finishing operations. The September 1, 2026 approved pure premium rate is $10.384 per $100 of payroll, a key input for calculating workerscomp costs for these production-heavy operations. Understanding the specific processes and risks under 2402 helps manufacturers control claims and premiums.
2402 specifically applies to shops and plants that produce wall-to-wall carpet, area rugs, hooked rugs, and related floor coverings. Typical operations include tufting on power-driven tufting machines, loom weaving (axminster/wilton-style), dyeing and printing (vat and continuous dye lines), applying latex or adhesive backings, shearing and pile trimming, steaming, drying ovens, tuft-bonding, sewing and serging edges, and final cutting, packaging, and warehousing. It also covers in-plant maintenance of those production machines and material handling of rolls, fiber bales, and finished goods. Retail carpet sales or field installation work are not covered under 2402; those activities carry separate classifications.
The pure premium rate of $10.384 per $100 of payroll represents the estimated cost of future claims for this classification before insurer expenses and profit. Insurers multiply this base by a company's payroll in that class to compute the pure premium, then apply experience modification, policy-level adjustments, and insurer loadings to determine the final premium. Final cost is affected by your experience modification, payroll reporting accuracy, classification splits, safety programs, deductible or retrospective rating selections, and claims management.
Carpet and rug manufacturing must comply with Cal/OSHA requirements for machine guarding, control of hazardous energy (lockout/tagout) during maintenance, and effective hazardous materials programs for dyes, solvents and adhesives. Employers should also address respiratory protection and ventilation for dust and chemical fumes, noise monitoring and hearing conservation, and hazard communication (employee training, SDS access, labeling). Regular safety inspections, written procedures for confined or permit spaces in dye tanks, and combustible dust awareness for fiber accumulations are also important compliance elements.
A PEO like Key HR helps employers with class-specific loss control by providing tailored safety programs, machine-guarding and lockout/tagout templates, respiratory and hearing-conservation plans, and supervisor training focused on tufting/weaving hazards. We centralize payroll and classification accuracy, manage claims and return-to-work programs to reduce experience mod impact, and can access market leverage with carriers to lower your total workers' comp cost.
Get a QuoteNo. 2402 is limited to manufacturing operations—tufting, weaving, dyeing, backing and finishing in a plant. Field installation, carpet laying, or showroom retail sales are classified under different codes and should be reported separately to ensure accurate premium.
Focus on machine guarding and lockout/tagout to prevent severe laceration/amputation claims, implement safe material handling and mechanical lifting to reduce strains, enforce respiratory and skin-protection controls around dyes and adhesives, and establish a formal return-to-work program to limit lost-time claims and improve your experience modification over time.
Key HR reviews your operations line-by-line, audits job duties and time spent on manufacturing tasks, and separates payroll into precise class codes (manufacturing, warehouse, installation, sales) before submitting to carriers. Accurate classification and regular audits reduce misclassification risk and unexpected premium adjustments at audit.
Key HR provides pay-as-you-go workers' comp for California employers — no large deposits, no audits, better rates.
Get a Quoteor call (800) 922-4133Key HR provides California employers with pay-as-you-go workers' comp, HR compliance support, and payroll — all through one PEO partnership.