Class Code 3165 covers manufacturers that produce air-conditioning and refrigeration equipment, household refrigerators and solar photovoltaic panels. If your California facility fabricates compressors, coils, condensers, heat exchangers or PV modules, this is the class that applies — the September 1, 2026 pure premium is $4.148 per $100 of payroll. Accurate classification matters because the rate drives expected loss cost and helps determine your workers' compensation premium.
This classification applies to factories and production lines that manufacture air-conditioning, refrigeration equipment and components (compressors, condensers, evaporator coils, refrigeration systems), refrigerator and household appliance assembly, and photovoltaic (solar panel) module production. Operations include metal forming, coil winding, brazing and welding, electrical assembly and testing, vacuum lamination and encapsulation for PV modules, refrigerant charging and pressure/leak testing. It covers both heavy fabrication areas (presses, CNC, stamping) and delicate assembly zones (electrical boards, cell handling, glass lamination). It does not cover field installation, service or on-site HVAC repair work — those activities are typically classified under service/installation codes.
The pure premium rate of $4.148 per $100 of payroll represents the estimated average cost of future claims for this class per $100 of wages. Insurers apply this rate to your payroll by class to calculate the base premium, then add insurer expense loads and apply your experience modification, policy-level credits/debits, and any deductible or retrospective adjustments. Final premium is affected by payroll splits across class codes, loss history, location-specific exposures, and safety controls in place.
Relevant Cal/OSHA requirements include maintaining an IIPP (Injury and Illness Prevention Program), Hazard Communication (GHS) for refrigerants and solvents, and Control of Hazardous Energy (Lockout/Tagout) for machinery. Employers must also follow machine guarding, welding and hot work controls, respiratory protection when handling refrigerants/solvents, forklift operator training, and the Cal/OSHA silica standard when cutting or grinding silicon or ceramic materials during PV or component fabrication. High-voltage testing areas require electrical safety procedures and arc-flash protection consistent with Cal/OSHA electrical safety orders.
A PEO like Key HR helps manufacturers with class-code accuracy and centralized payroll reporting to prevent misclassification and unexpected premiums. We provide loss-control audits, customized safety programs (hot work, lockout/tagout, respiratory protection, silica controls), on-site or virtual training, and streamlined claims management and return-to-work programs to reduce indemnity and medical costs. Those services, plus access to preferred carriers and better underwriting data, can lower your overall workers' comp spend.
Get a QuoteNo. Class 3165 is for manufacturing and assembly operations. Field service, installation, retrofit and repair work for HVAC or refrigeration is typically classified under different service/installation codes and carries different exposures and rates.
Focus on engineering controls (machine guarding, ventilation), formal hot-work and lockout/tagout procedures, refrigerant leak-prevention and monitoring, material handling aids to reduce manual lifting, and targeted training (welding, forklift, electrical safety). Improving claims handling and implementing a light-duty return-to-work program also lowers experience modification over time.
Require welding and brazing qualifications, forklift and powered industrial truck training, lockout/tagout and machine-specific training, respiratory protection and hazard communication training, electrical safety for high-voltage testers, and EPA 608 or other refrigerant-handling certification for technicians who work with regulated refrigerants.
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.