Class Code 3560 covers manufacturing of commercial and industrial machinery — the shops that design, machine, assemble, test and finish equipment used in factories, plants and commercial settings. The approved California pure premium rate is $3.008 per $100 of payroll, which reflects expected claim costs for employers in this manufacturing sector. Knowing the scope of work and hazards under 3560 helps employers control exposure and manage workers' comp costs.
This classification applies to facilities that fabricate, machine, assemble, test and finish machinery and equipment intended for commercial or industrial use (for example pumps, compressors, conveyors, presses, and similar capital equipment). Operations include metal cutting and forming, CNC and manual machining, welding and brazing, subassembly and final assembly, bench testing and pressure testing, painting or powder coating performed in-house, and shop-based repair and overhaul. Activities limited to office, sales or clerical support at the same location are excluded from the shop manufacturing exposure but must be listed separately. Field erection, customer-site installation, or ongoing on-site service/repairs typically fall under different codes; 3560 is focused on shop-based manufacture and factory-floor service.
The pure premium rate of $3.008 per $100 of payroll represents the insurer's estimated cost of future claims for this class per unit of payroll. To calculate base premium multiply payroll/100 by $3.008, then apply your experience modification, policy-level expense loads, credits/discounts, and any deductible or retrospective adjustments to arrive at the actual premium an employer pays. Factors that raise or lower the final premium include claims history, accuracy of payroll reporting by class, safety programs, and loss-control measures.
Cal/OSHA enforces Title 8 standards highly relevant to machinery manufacturing: machine guarding and point-of-operation protections, control of hazardous energy (lockout/tagout), welding/cutting/brazing safety, respiratory protection, noise exposure limits and hazard communication. Employers must maintain an Injury and Illness Prevention Program (IIPP) and written programs where required (respiratory, hearing conservation, confined space entry, hot work, and forklift/crane operation) and provide job-specific training and documentation.
A PEO like Key HR helps employers in Class 3560 by ensuring correct payroll classification, delivering specialized claims management, and implementing targeted loss-control programs (machine guarding audits, lockout/tagout procedures, welding fume controls and training). Key HR can also centralize return-to-work programs, safety training, and group purchasing for PPE and safety equipment to lower frequency and severity of claims and improve overall workers' comp experience.
Get a QuoteNo. 3560 is intended for shop-based manufacturing, machining and in-house overhaul. Field installation, erection, or long-term on-site service at customer locations is typically coded to separate classification(s) that cover construction or equipment installation/service and should be reported separately.
At minimum, employers must maintain an Injury and Illness Prevention Program (IIPP) and keep injury/illness logs as required. Written programs are also required for respiratory protection, hearing conservation, lockout/tagout (hazardous energy control), hot work (welding/cutting), forklift and crane operation, and hazard communication when chemicals or coatings are used.
Focus on preventing the most costly claim types: install and maintain machine guards, enforce lockout/tagout, control welding fume exposures, implement hearing protection and training, use mechanical aids for material handling, and run an early return-to-work program. Working with a PEO like Key HR to improve claims management and safety training often lowers the experience modifier and premium over time.
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.