Class Code 3040
Iron Or Steel Works – Non–Structural – Shop
Class Code 3040 applies to iron and steel work performed inside a shop environment where non-structural items are fabricated, welded, machined, finished and assembled. The California pure premium rate for 3040 is $5.914 per $100 of payroll, which is the base pricing metric insurers use to calculate workers' compensation cost before adjustments. Understanding exactly what operations fit this code helps employers avoid misclassification and control premium exposure.
What Class Code 3040 Covers
This classification is specifically for shop-based iron and steel work that does not include structural building framing or field erection of structural members. Typical operations include fabricating ornamental iron, railings, gates, machinery parts, plate work, tanks and non-load-bearing metal products performed on a shop floor. Work performed in a fixed shop using cutters, shears, brakes, punches, welders (MIG/TIG/Stick), plasma or oxy-fuel torches, grinders, and machining centers is included. Mobile field installation, structural steel erection, and on-site welding of building support members belong to different classifications and should not be coded to 3040. Payroll for employees whose primary job duties are shop fabrication, welding, machining, finishing and shop assembly is allocated to this code.
Who It Applies To
- Ornamental iron and gate fabrication shops
- Metal parts manufacturers and machine shops producing non-structural components
- Repair shops that service industrial equipment and non-structural metal components
- Prefabricated metal product shops (handrails, fences, signage frames)
- Shop-based welding and fabrication employees (MIG/TIG/Stick)
- Fabrication shops performing cutting, bending, punching, machining and finishing
Common Job Duties
- Cutting and burning plate or bar stock with plasma, oxy-fuel or shears
- Welding and joining operations (MIG, TIG, stick) and tack welding
- Grinding, sanding and finishing metal surfaces; deburring and dressing
- Operating press brakes, shears, punch presses and CNC machining centers
- Material handling with cranes, hoists, forklifts and manual lifting
- Layout, fitting and assembly of parts, plus final inspection and packaging
Common Injury Risks
Understanding the $5.914 Rate
The approved pure premium of $5.914 per $100 of payroll is the baseline cost to cover expected workers' compensation losses for work in this classification. Insurers multiply this pure premium by your payroll (divided by 100) to get a base premium, then apply your experience modification, policy expense loads, credits, debits, and state assessments to produce the final premium. Final cost is affected by accurate payroll classification, your company's loss history (mod), safety controls, claim management, and program structure (deductibles or retrospective rating).
Cal/OSHA Compliance Requirements
Employers must implement a written Injury and Illness Prevention Program (IIPP) as required by Title 8, CCR 3203, and maintain training and records for shop employees. Specific Cal/OSHA requirements commonly applied to fabrication shops include respiratory protection programs (Title 8, CCR 5144) for welding fumes, Hazard Communication (Title 8, CCR 5194) for metals, coatings and solvents, written hot work and ventilation controls, and general industry machine guarding and lockout/tagout practices. Regular training, medical surveillance when required, and pre-shift inspections will reduce violations during Cal/OSHA audits.
How Key HR Helps Employers Under Class Code 3040
A PEO like Key HR helps employers in this classification by ensuring payroll is correctly allocated to class 3040, administering claims and return-to-work plans to limit indemnity time, and providing targeted loss-control services such as welding ventilation assessments, PPE programs, and shop safety audits. Key HR also offers safety training, regulatory compliance support, and purchasing leverage on workers' comp programs to help lower your experience mod and overall cost.
Get a QuoteFrequently Asked Questions
Does Class Code 3040 include on-site structural steel erection?
No. 3040 is limited to non-structural shop fabrication and assembly. Field erection or installation of structural steel and building framing is classified differently and should be reported under the appropriate field or structural erection code.
Are shop welders automatically higher cost because of welding exposure?
Welding is a common duty within 3040, and the pure premium accounts for that exposure for shop-based operations. Final premium depends on your loss history, controls (local exhaust ventilation, respirators, training), and accurate payroll allocation; good controls and claim management can reduce your effective rate.
What practical steps reduce workers' comp costs for a fabrication shop?
Maintain an active IIPP, enforce machine guarding and lockout/tagout, implement local exhaust ventilation for welding, provide fit-tested respirators and hearing protection, document training, use light-duty return-to-work programs, and work with a PEO or broker to ensure accurate class coding and proactive claims handling.
Quick Facts
- Class Code
- 3040
- Classification
- Iron Or Steel Works – Non–Structural – Shop
- Pure Premium Rate
- $5.914 / $100 payroll
- Effective Date
- September 1, 2026
- Source
- WCIRB Approved Filing
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