Class Code 3821
Auto Or Auto Truck Parts Dismantling
Class Code 3821 covers businesses that dismantle automobiles or auto trucks to remove, test, reclaim or scrap parts. The WCIRB-approved pure premium rate effective September 1, 2026 is $8.364 per $100 of payroll. Correct classification matters because dismantling work has specific physical, mechanical and hazardous-material exposures that drive workers' comp risk.
What Class Code 3821 Covers
This classification applies to operations that tear down passenger cars and trucks to salvage usable components or prepare vehicles for scrap. Typical activities include pulling engines, transmissions, wheels, axles, and other mechanical parts; draining and collecting motor oil, coolant, refrigerant and other fluids; removing batteries, airbag modules and electrical components; cutting or torching metal to separate parts; testing and inventorying used components for resale; and prepping parts for shipment or recycling. Work commonly takes place in salvage yards, dismantling bays or outdoor storage lots and often involves heavy lifting equipment such as hoists, cranes and forklifts. Handling of hazardous materials (fuels, oils, refrigerants, battery acid) and interaction with partially dismantled, mobile vehicles are central exposures that distinguish this class.
Who It Applies To
- Independent auto or truck dismantling shops and salvage yards
- Auto recyclers and parts reclaimers that sell used components
- Wrecking yards that disassemble vehicles for scrap
- Parts pullers, salvage technicians and inventory/test technicians
- Forklift, hoist and crane operators working in dismantling operations
Common Job Duties
- Removing engines, transmissions, axles, doors, and interior components
- Draining, capturing and storing automotive fluids and refrigerants
- Disconnecting batteries and removing airbag modules
- Operating forklifts, hoists, jacks and cutting torches to access parts
- Cleaning, testing and bench-checking used components for resale
- Sorting and inventorying reclaimed parts and preparing shipments
- Handling scrap metal and coordinating disposal or recycling of hazardous waste
Common Injury Risks
Understanding the $8.364 Rate
The pure premium rate of $8.364 per $100 of payroll is the WCIRB loss cost that represents the expected claim cost for this work. To calculate the base loss cost, divide payroll by 100 and multiply by 8.364; insurers then apply their expense and profit multipliers, any company-specific modifiers, experience modification factors and policy-level credits or debits to determine the final premium. Factors that change what you actually pay include your shop’s claim history (experience mod), classification accuracy, payroll audit results, safety controls, and deductible or retrospective rating choices.
Cal/OSHA Compliance Requirements
California employers performing dismantling work must maintain a written Injury and Illness Prevention Program (IIPP) and comply with Cal/OSHA standards such as Hazard Communication, PPE, respiratory protection where needed, forklift and hoist operator training, machine guarding, and lockout/tagout procedures for control of hazardous energy. Employers should also follow hazardous materials handling and disposal rules for used oil, refrigerants and batteries, provide training on airbag and high-voltage hazards for hybrid/electric vehicles, and report serious injuries to Cal/OSHA as required.
How Key HR Helps Employers Under Class Code 3821
A PEO like Key HR helps employers in this class reduce workers' comp cost through accurate payroll classification, centralized claims handling, and targeted loss-control programs — forklift and hoist safety, hazardous materials handling, lockout/tagout and hybrid-vehicle awareness training. Key HR provides return-to-work program design, ongoing safety audits and access to medical networks and claims advocates to control claim duration and influence experience modification. Though based in Orlando, Key HR serves California employers statewide and can tailor compliance and safety support to state-specific Cal/OSHA requirements.
Get a QuoteFrequently Asked Questions
If my shop sometimes repairs vehicles but also pulls parts for resale, do I use Class Code 3821?
If the primary business activity is dismantling vehicles for parts or scrap (parts reclamation, salvage operations), Class Code 3821 is appropriate. If the primary operation is vehicle repair and maintenance, a repair-specific classification should be used. Accurate payroll segregation for differing operations avoids misclassification.
What practical steps reduce workers' comp costs for dismantling businesses?
Implement a documented IIPP, provide training for forklift/hoist operation and hazardous materials handling, enforce PPE and lockout/tagout procedures, use mechanical aids for heavy lifts, and run an early return-to-work program. These measures reduce frequency and severity of claims and improve your experience modification factor.
How should we handle hybrid/electric vehicle components safely?
Train technicians to recognize high-voltage systems, follow OEM disconnect procedures, use insulated tools and PPE for HV work, de-energize systems and apply lockout/tagout, and restrict HV work to trained personnel. Documented procedures and training will reduce shock and thermal burn risks and demonstrate compliance to Cal/OSHA.
Quick Facts
- Class Code
- 3821
- Classification
- Auto Or Auto Truck Parts Dismantling
- Pure Premium Rate
- $8.364 / $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 3821?
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