Class code 2576 applies to businesses that manufacture awnings, tarps, canvas goods and related sewn or fabricated fabric products in California. The September 1, 2026 approved pure premium rate for this class is $8.597 per $100 of payroll — a key input when estimating workers' compensation costs for textile fabrication shops and small production plants.
This classification covers factory and shop operations that cut, sew, heat-weld, grommet, press, finish and package awnings, tarpaulins, canvas covers, marine canvas, tents and similar fabric goods. Typical materials include coated fabrics, PVC, vinyl, canvas and webbing; equipment includes industrial sewing machines, cutting tables, heat/welders, grommet or eyelet presses, rivet tools and light metal-frame assembly for awning structures. It also covers in-shop repair and custom fabrication of canvas products and routine handling and storage of rolls of fabric and hardware. Note that payroll for workers who perform field installation on roofs or elevated structures often must be reported separately under a construction or installation code because installation exposes employees to different hazards and higher classification rates.
The pure premium rate of $8.597 per $100 of payroll represents the portion of premium allocated to expected claim costs before expenses and adjustments. An employer's actual workers' comp premium is calculated by applying the rate to payroll in this classification, then adjusting for experience modification, state assessments, insurer expense loads, policy deductibles or credits, and any classification splits. Factors that affect the final cost include claims history, accurate job classification (especially separating installers), safety programs, payroll reporting accuracy and the employer's size.
Cal/OSHA requirements commonly relevant to awning and canvas manufacturing include maintaining an effective Injury and Illness Prevention Program (IIPP), machine guarding for sewing machines, cutters and presses, lockout/tagout procedures for equipment maintenance, and a Hazard Communication program for adhesives, solvents and coatings. When operations generate airborne fibers or solvent vapors, employers must implement ventilation and respiratory protection programs and provide appropriate PPE; field installation work also triggers fall protection and ladder safety rules.
A PEO like Key HR can help shops in class 2576 manage workers' comp costs through pooled purchasing power, professional claims management, and proactive loss-control services. We deliver tailored safety templates (machine guarding checklists, ergonomic recommendations for sewing operators), OSHA-compliant written programs, return-to-work coordination, and accurate payroll classification to reduce audit exposure and ensure installers are reported correctly.
Get a QuoteGenerally no — 2576 covers in-shop manufacturing and repair. Payroll for employees who perform on-site installation, particularly work at heights or structural attachment, is often classified separately under construction/installation codes and should be reported to your insurer or PEO to avoid misclassification and incorrect premiums.
Key steps include machine guarding and blade safety, training on safe cutting and grommet press operations, ergonomic seating and work height adjustments for sewing operators, ventilated areas and proper storage for adhesives and solvents, and a formal return-to-work plan to speed recovery and limit indemnity costs.
Improve loss history through active claims management and light-duty programs, implement written safety programs (IIPP, HAZCOM, machine guarding), accurately split payroll between manufacturing and installation, and work with a PEO or agent to ensure correct classification and to access group purchasing and loss-control resources.
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.