Class Code 2757
Pallet Mfg, Repair Or Reconditioning; Pallet Dealers
California WCIRB Class Code 2757 covers businesses that manufacture new pallets, repair or recondition used pallets, and pallet dealers who operate yards and resell repaired units. The approved pure premium rate for September 1, 2026 is $8.497 per $100 of payroll, a baseline insurers use to price workers' compensation for this physical, industrial work. For California employers, accurate classification and active loss-control reduce the wage-weighted exposure that drives premium.
What Class Code 2757 Covers
Class Code 2757 applies to the hands-on work of building pallets from raw lumber or plastic components, repairing and reconditioning returned pallets (replacing deck boards, fastening, sanding and planing), grading and sorting used pallets, and operating yard operations that buy, sell and distribute pallets. It includes small production shops with saws and nail guns, industrial pallet manufacturing lines with mechanical nailers and presses, and pallet dealers who maintain outdoor storage yards, load trucks and handle returns. Operations that perform heat-treating or ISPM-15 stamping for export, pressure treatment or preservative application, and any reconditioning that exposes workers to wood dust or treated wood are also included. Office-only sales staff with no manual handling should be reported separately; this code is specifically for manual, production and yard labor related to pallets.
Who It Applies To
- Commercial pallet manufacturers (wooden and plastic)
- Pallet repair and recycling shops that recondition used pallets
- Pallet dealers and yard operations that sort, store and resell pallets
- Production line assemblers and saw/planer operators
- Forklift operators and yard laborers who load/unload pallet shipments
- Workers who perform heat-treating, fumigation coordination, or preservative application
Common Job Duties
- Cutting, ripping and planing boards using table saws, circular saws, and planers
- Assembling pallets with pneumatic nail guns, presses and hand nailing
- Replacing damaged deck boards, sanding and reconditioning surfaces
- Sorting, grading and stacking pallets in outdoor yards and warehouses
- Operating forklifts, pallet jacks and loading equipment to move heavy stacks
- Applying export treatments (heat-stamping/ISPM-15) or coordinating preservative treatments
Common Injury Risks
Understanding the $8.497 Rate
The pure premium rate of $8.497 per $100 of payroll is the insurer's expected claim cost before administrative loadings and adjustments. To estimate pure premium, divide total payroll by 100 and multiply by 8.497 (for example, $500,000 payroll: 5,000 x 8.497 = $42,485). Final premium an employer pays is affected by the employers experience modification (loss history), state assessments, insurer expense loads, premium discounts, payroll reporting practices and correct class coding and separation of clerical payroll.
Cal/OSHA Compliance Requirements
Cal/OSHA enforcement focuses on machine guarding, lockout/tagout where equipment is serviced, and powered industrial truck operator training and certification for forklift drivers. Employers must implement an Injury and Illness Prevention Program (IIPP), control wood-dust exposures with ventilation or respirators when required, maintain a hearing-conservation program for noisy shops, and comply with Hazard Communication for treated wood or preservatives.
How Key HR Helps Employers Under Class Code 2757
A PEO like Key HR helps pallet manufacturers and dealers by managing workers' compensation administration, coordinating prompt claims handling with preferred medical networks, and implementing targeted loss-control programs (machine guarding audits, forklift training, respiratory protection). Key HR can also assist with accurate payroll segmentation, OSHA recordkeeping, return-to-work programs and safety training that reduce experience mods and lower overall comp costs.
Get a QuoteFrequently Asked Questions
If I only sell pallets but dont handle or repair them, do I fall under Class Code 2757?
Classification depends on operations. Purely administrative sales activities with no manual handling should be reported separately as clerical payroll. Class Code 2757 applies when the business performs hands-on manufacturing, repair, yard handling or loading/unloading.
What practical steps reduce claims and premium for pallet repair shops?
Prioritize machine guarding and regular maintenance, enforce PPE (cut-resistant gloves, eye protection, hearing protection, respirators for dust), implement forklift certification and traffic plans in yards, adopt mechanical aids for lifting, and track near-misses in your IIPP to address hazards before they cause claims.
Does heat-treating or chemical preservation change my compliance or classification?
Heat-treating for export (ISPM-15 stamping) and chemical treatments introduce additional respiratory and hazardous-material controls under Cal/OSHA and may require training and documentation. Those processes are still within Class Code 2757 when performed by the employer; ensure you follow hazardous-material and emissions rules as well as PPE and ventilation requirements.
Quick Facts
- Class Code
- 2757
- Classification
- Pallet Mfg, Repair Or Reconditioning; Pallet Dealers
- Pure Premium Rate
- $8.497 / $100 payroll
- Effective Date
- September 1, 2026
- Source
- WCIRB Approved Filing
Manage Workers' Comp Through a PEO
Key HR provides pay-as-you-go workers' comp for California employers — no large deposits, no audits, better rates.
Get a Quoteor call (800) 922-4133Ready to Simplify Workers' Comp for Class Code 2757?
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