Class Code 3501
Machinery Mfg – Portable Tools; Machinery Mfg – Swimming Pool/Spa
Class code 3501 covers manufacturers that produce portable power and hand tools and manufacturers of swimming pool and spa machinery and equipment. The September 1, 2026 approved pure premium rate for California is $5.610 per $100 of payroll, a key input for estimating workers' comp cost for shops and assembly lines.
What Class Code 3501 Covers
This classification applies to facilities that manufacture, assemble, test and package portable tools (drills, saws, grinders, hand-held motors) and machinery used in swimming pools and spas (pumps, filters, heaters, control systems, jets). Operations include machining, stamping, welding and brazing, electrical assembly and wiring, motor winding or balancing, bench testing, pressure and leak testing, painting/coating and packing for shipment. The code covers production floor workers, tool assemblers, machine operators, welders, electrical technicians and quality/test technicians working in shop or factory settings. It does not primarily cover field installation or on-site service by service technicians when those duties are performed away from the manufacturing facility; those activities can fall under different California class codes.
Who It Applies To
- Manufacturers of portable power tools and hand tools
- Producers of swimming pool and spa pumps, heaters, filters and control systems
- Machine operators, CNC machinists and metal fabricators in tool and pump shops
- Electrical assemblers, motor winders and bench test technicians
- Welders, brazers and coating/paint booth operators in the production facility
Common Job Duties
- Operating lathes, mills, grinders and CNC equipment to machine housings and shafts
- Welding, brazing and thermal joining of metal components
- Assembling electrical components, wiring harnesses and motor assemblies
- Bench testing motors, pumps and control electronics for performance and leaks
- Painting, coating or finishing components and performing solvent cleaning
- Material handling of castings, stamped parts and packaged goods for shipment
Common Injury Risks
Understanding the $5.610 Rate
The pure premium rate of $5.610 per $100 of payroll represents the expected loss cost before insurer adjustments. To estimate your policy premium multiply your payroll (divided by 100) by 5.610, then expect additional adjustments for your insurer's loss cost multiplier, experience modification factor, policy-level minimums, audits and state assessments. Final premiums vary based on your claims history, payroll mix across classifications, and any credits, discounts or deductible programs you negotiate with the carrier.
Cal/OSHA Compliance Requirements
Key Cal/OSHA requirements for these operations include machine guarding and safe point-of-operation controls, control of hazardous energy (lockout/tagout) during maintenance, and compliance with Hazard Communication (hazcom) for solvents and chemicals. Welding, cutting and brazing operations must follow welding safety and fume exposure controls and the Noise Standard and Respiratory Protection standard apply where exposures exceed limits.
How Key HR Helps Employers Under Class Code 3501
A PEO like Key HR helps manufacturers in class 3501 by ensuring correct payroll classification, centralizing premium billing, and negotiating competitive workers' comp placement. Key HR can implement targeted loss-prevention programs (machine guarding audits, LOTO procedures, welding fume controls), provide safety training tailored to tool and pump production, and manage claims and return-to-work plans to reduce experience modification and overall cost.
Get a QuoteFrequently Asked Questions
How do I know if my employees belong in class 3501 or a different code?
Use 3501 when employees are primarily engaged in manufacturing, assembly, testing and packaging of portable tools or pool/spa machinery at your facility. Field installers, service techs who primarily work offsite, or retail sales staff typically fall under different codes. Have your payroll records and job descriptions reviewed during audit to ensure correct classification.
What specific safety controls reduce workers' comp claims in this class?
Effective controls include guarding on all rotating and reciprocating equipment, rigorous lockout/tagout for maintenance, welding fume extraction and respiratory protection, hearing conservation, consistent PPE use, pre-shift inspections, and ergonomics programs for repetitive assembly tasks. Training and written procedures tied to regular supervised audits lower incident frequency.
Can my pure premium rate change year to year?
Yes. While WCIRB sets the advisory pure premium ($5.610), your actual cost changes with your insurer's loss cost multiplier, your experience modification (claims history), payroll shifts across codes, audits, and any state assessments or policy-level fees. Proactive safety and return-to-work programs can reduce your experience mod and lower future premiums.
Quick Facts
- Class Code
- 3501
- Classification
- Machinery Mfg – Portable Tools; Machinery Mfg – Swimming Pool/Spa
- Pure Premium Rate
- $5.610 / $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 3501?
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