Class Code 2501
Clothing Mfg; Hat Mfg; Tailoring; Lampshade Mfg; Flower Mfg
Class Code 2501 applies to employers engaged in clothing and hat manufacturing, tailoring and alterations, lampshade assembly, and flower manufacturing operations. In California the approved pure premium rate for this classification is $6.106 per $100 of payroll, which directly affects your workers' compensation base premium. Understanding the specific tasks under 2501 helps employers control risk and correctly report payroll.
What Class Code 2501 Covers
This classification includes shops and production lines where fabric, trim and related materials are cut, sewn, stitched, pressed and finished into garments, hats, lampshades or artificial flowers. Included operations are pattern cutting, hand- and machine-sewing, pressing/ironing, trimming, attaching hardware (buttons, snaps, grommets), hat blocking and shaping, covering lampshade frames, and floral assembly that forms or fabricates artificial blooms. Tailoring and alteration shops that perform fitting, hand-stitching, hemming and garment repair in a commercial shop are also typically coded here. The class covers both small batch bespoke work and larger factory-style production so long as the primary work is manufacturing, assembly or tailoring rather than retail sales only.
Who It Applies To
- Garment manufacturers producing shirts, dresses, coats and other clothing
- Hat and millinery shops that block, trim and finish hats
- Tailoring and alteration shops performing on-premise fittings and hand-sewing
- Lampshade manufacturers or assemblers covering frames and attaching trims
- Artificial flower makers and floral assembly operations
- Small workrooms performing cutting, sewing, pressing and finishing
Common Job Duties
- Cutting patterns and fabric with hand shears, band knives or die cutters
- Operating industrial sewing machines (lockstitch, overlock/serger, blind stitch)
- Hand-stitching, hand-seaming, buttonholing and decorative stitching
- Pressing, steaming and ironing finished pieces using commercial presses
- Trimming, attaching trims, snaps, zippers, grommets and labels
- Blocking and shaping hats, covering lampshade frames, gluing and trimming floral components
- Quality inspection, packing and light material handling
Common Injury Risks
Understanding the $6.106 Rate
The pure premium rate of $6.106 per $100 of payroll is the base cost of expected claim losses for the classification before insurer adjustments. To estimate premium multiply the payroll assigned to code 2501 by 0.06106 (that is $6.106/100); that number is the base premium before your insurer applies experience modification, schedule credits/penalties, deductible programs and policy expenses. Final premium is affected by your business's actual loss history, payroll accuracy, safety programs, and any claims management or group-rating discounts.
Cal/OSHA Compliance Requirements
California employers in this classification must implement an Injury and Illness Prevention Program (IIPP) under Cal/OSHA (Title 8, 8 CCR 3203) and comply with Hazard Communication (8 CCR 5194) when working with adhesives, solvents or dyes. Machine guarding, safe machine operation and lockout/tagout procedures under Title 8 are critical for sewing and cutting equipment; ventilation and respiratory protection may be required when using volatile adhesives or solvents. Employers should also address ergonomic risk control and provide training, PPE and routine maintenance to reduce repetitive-motion injuries.
How Key HR Helps Employers Under Class Code 2501
A PEO like Key HR helps employers in class code 2501 by ensuring accurate classification and payroll reporting, implementing loss-control plans targeted to sewing/cutting hazards, and managing claims to reduce experience modification impact. Key HR can deliver on-site or online safety training, assist with Cal/OSHA compliance (IIPP, hazard communication), coordinate return-to-work and light-duty programs, and leverage purchasing power for workers' comp coverage and safety equipment to lower overall cost.
Get a QuoteFrequently Asked Questions
Does a small tailor or alteration shop qualify for Class Code 2501?
Yes — tailors and alteration shops that perform on-premise cutting, hand- and machine-sewing, fittings and garment repairs are generally coded to 2501. If the business is primarily retail sales with incidental alterations, a different retail classification may apply. Accurate payroll split between retail and manufacturing activities is important at audit.
How should I report payroll for employees who do both production sewing and sales?
Payroll should be allocated to the code that reflects each employee's actual job duties and time. If an employee spends time on production tasks covered by 2501 and time on retail sales, track hours and assign payroll proportionally to avoid misclassification and audit adjustments.
What practical steps reduce workers' comp claims for sewing and cutting operations?
Implementing machine guarding, mandatory needle guards, cut-resistant gloves for handling blades, adjustable ergonomic seating and workstations, regular tool maintenance, heat-safe procedures for presses, and product-specific hazard communication for adhesives will materially lower injury frequency and severity. A PEO can help implement these controls and deliver targeted training.
Quick Facts
- Class Code
- 2501
- Classification
- Clothing Mfg; Hat Mfg; Tailoring; Lampshade Mfg; Flower Mfg
- Pure Premium Rate
- $6.106 / $100 payroll
- Effective Date
- September 1, 2026
- Source
- WCIRB Approved Filing
Manage Workers' Comp Through a PEO
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