Class Code 3828
Auto Or Truck Parts Rebuilding
Class Code 3828 covers businesses that rebuild, remanufacture or recondition automotive and truck parts — for example regrinding brake drums, machining engine components, or remanufacturing steering gear assemblies. Understanding this classification matters because the September 1, 2026 approved pure premium rate for CA is $3.940 per $100 of payroll, which directly influences payroll-based workers' comp costs.
What Class Code 3828 Covers
This classification applies to operations that disassemble, clean, machine, repair, reassemble and test mechanical parts for automobiles and heavy trucks. Typical work includes rebuilding engines, transmissions, differentials, brake drums/rotors, steering and suspension components, and electrical starters/alternators. It covers shops that perform machining, welding, grinding, press-fitting, heat treating, and bench assembly of parts rather than simple parts sales or roadside installation only. It excludes mobile repair that only installs new parts without remanufacturing, and retail parts stores that do no rebuilding work. Payroll for mechanics, machinists, welders, bench assemblers and test technicians performing the rebuilds is reported to this class.
Who It Applies To
- Auto and heavy-truck remanufacturing shops that rebuild engines, transmissions and differentials
- Independent machine shops that specialize in automotive/truck component machining and reconditioning
- Fleet maintenance facilities that remanufacture parts in-house (engines, brake drums, starters)
- Specialty rebuilders of brake systems, steering gear, torque converters and electrical components
- Shops performing welding, grinding and heat-treating as part of part restoration or remanufacture
Common Job Duties
- Disassembly and inspection of used components (engines, transmissions, brakes)
- Machining and resurfacing parts (lathe, CNC, milling, grinding, honing)
- Welding, brazing and heat-treating to repair housings or mounts
- Press-fitting, bearing replacement and assembly of remanufactured units
- Bench testing and dynamometer runs to validate rebuilt components
- Cleaning and degreasing with solvents, blasting or chemical processes
Common Injury Risks
Understanding the $3.940 Rate
The pure premium rate of $3.940 per $100 of payroll is the WCIRB-approved expected cost of indemnity and medical losses before insurer expenses and experience rating. To estimate the pure premium, divide payroll by $100 and multiply by 3.940 (for example, $200,000 payroll → 2,000 × 3.940 = $7,880 pure premium). Final employer premium will also reflect your insurer's expense load, experience modification (X-mod), credits/debits, and policy-specific adjustments.
Cal/OSHA Compliance Requirements
Cal/OSHA General Industry Safety Orders (Title 8) apply — in particular requirements for machine guarding, control of hazardous energy (lockout/tagout), welding/respiratory protection and hazard communication for solvents and metals. Employers must implement written programs where required (e.g., respiratory protection, hearing conservation, confined space if tanks are entered) and provide training, PPE and medical surveillance when exposures to welding fumes, lead or silica may occur.
How Key HR Helps Employers Under Class Code 3828
A PEO like Key HR helps protect shops by ensuring correct classification and payroll reporting, coordinating claims management, and implementing documented safety programs (machine guarding, lockout/tagout, respirator programs). Key HR can also deliver training, coordinate preferred-network medical care, and help reduce experience modification through loss-control interventions that lower long-term workers' comp costs.
Get a QuoteFrequently Asked Questions
How do I know if my shop belongs in Class Code 3828 or a different code?
If your primary activity is rebuilding, remanufacturing or reconditioning parts (machining, welding, assembly and testing) you generally belong in 3828. Shops that only sell parts, install new parts, or perform roadside service without remanufacture are usually assigned different codes. Review your payroll mix and operations with your insurer or PEO to avoid misclassification.
What does $3.940 per $100 payroll mean for my premium?
Take total payroll for employees performing rebuild work, divide by $100, then multiply by 3.940 to get the pure premium example: $200,000 payroll → 2,000 × 3.940 = $7,880. Your actual policy premium will be higher after adding insurer expense loads and factoring in your experience modification and policy adjustments.
What practical safety steps lower claims for parts rebuilding shops?
Key controls include guarding for grinders/lathes, lockout/tagout procedures for presses and hoists, welding fume ventilation and respirator programs, proper lifting equipment and rigging, hearing conservation, and documented training on solvent and hazardous material handling. Regular equipment maintenance and pre-job hazard assessments also reduce frequency and severity of claims.
Quick Facts
- Class Code
- 3828
- Classification
- Auto Or Truck Parts Rebuilding
- Pure Premium Rate
- $3.940 / $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 3828?
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