Class Code 3401 applies to manufacturers who produce tube or pipe products and fabricate gates or corrals. This classification covers shop-based metal fabrication operations such as cutting, forming, welding and finishing; the approved pure premium rate for California effective September 1, 2026 is $4.494 per $100 of payroll. Understanding this code helps employers budget workers' comp costs and target safety controls specific to tubular metal fabrication.
This classification covers shop-based fabrication and assembly of tubular metal products (tubes, pipes, fittings) and the manufacturing of metal gates, corrals and livestock panels. Typical operations include tube mill or pipe forming, sawing and cutting, roll-forming or bending, notching, threading, punching, MIG/TIG/arc welding, brazing, grinding, drilling, machining, surface treatment (painting, galvanizing) and final assembly and packaging. It includes in-plant fabrication of fence gates, loading chutes, corral panels and similar livestock or property-control products. Work performed on customer sites (installation, erection, site welding) is generally not included under 3401 and is reported under construction/installation classifications instead.
The approved pure premium rate of $4.494 per $100 of payroll represents the portion of workers' compensation premium allocated to expected claim costs for this class. Insurers multiply that rate by your payroll in hundreds of dollars, then add state assessments, claim adjustment expenses, the insurer's underwriting expense load, and any experience modification or schedule credits to determine the final premium. Employer-specific factors—mix of duties, loss history, safety programs, payroll reporting accuracy and use of subcontractors or installers—can materially change the ultimate price.
Cal/OSHA standards that commonly apply include welding, cutting and brazing controls (welding fume and eye protection), machine guarding and lockout/tagout for roll-formers, saws and presses, hazard communication for solvents and coatings, respiratory protection for fume and dust exposures, and noise exposure limits with hearing conservation requirements. Employers should maintain written programs (respirator, hearing, hazard communication), perform exposure monitoring where indicated, and provide PPE and training tailored to shop operations.
A PEO like Key HR helps manufacturers in Class Code 3401 by ensuring accurate payroll classification, managing claims and loss runs, and implementing targeted safety programs (machine guarding audits, welding fume controls, ergonomic material handling). Key HR can provide OSHA-aligned training, return-to-work programs to limit indemnity exposure, and aggregated buying power for workers' comp placement and medical provider networks to help control frequency and severity of claims.
Get a QuoteNo. 3401 is for shop-based manufacturing and assembly. On-site installation, erection, or construction work is typically reported under construction/installation class codes and may carry different rates and exposures; those hours and payroll should be tracked and reported separately.
Key steps include machine guarding and LOTO programs, welding fume ventilation and appropriate respirators, cut-resistant gloves and face protection, material handling aids (rollers, hoists) to reduce manual lifting, regular maintenance to prevent equipment failures, safety training specific to tube/piping operations, and a formal return-to-work program to limit lost-time claims.
Multiply total payroll for employees classified to 3401 (in dollars) by 0.04494 (that is $4.494 per $100) to get the pure premium. For example, $500,000 payroll × 0.04494 = $22,470 pure premium before experience modification, insurer loads, state assessments and any credits or deductibles.
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