Class Code 4623 covers manufacturers that formulate, blend, package and test cosmetics, personal care and perfumery products in California. The September 1, 2026 approved pure premium rate for this class is $5.620 per $100 of payroll. Understanding this classification helps employers assign payroll correctly, manage chemical and machine hazards, and control workers' compensation exposure.
This classification includes on‑site manufacturing operations that produce cosmetics, toiletries, fragrances and related personal care products. Typical operations are formulation and batching (emulsification, mixing, heating or cooling), handling and measuring raw ingredients (fragrances, essential oils, solvents, preservatives, powders), filling and capping bottles or tubes, labeling, secondary packaging, and quality control testing and micro lab work tied to production. It covers both continuous production lines and small‑batch artisanal facilities doing manufacture for sale or distribution, including contract packers producing products for other brands. Routine retail sales, administrative office work, and beauty salon services are not included unless the employer also performs manufacturing activities on the same payroll basis.
The pure premium rate of $5.620 per $100 of payroll represents the portion of expected claim costs allocated to this class before insurer expense loads, state assessments and experience modifications. Insurers multiply this rate by your payroll for employees assigned to 4623 to compute the base premium; final premiums are affected by your experience modification, specific policy discounts, payroll audits, and the insurer's expense and profit load.
Key Cal/OSHA requirements for cosmetic and perfumery manufacturers include Hazard Communication (Title 8 §5194) with complete SDSs and labeling, respiratory protection programs where exposure exceeds PELs (Title 8 §5144), and emergency eyewash and shower access for chemical handling areas. Employers must also implement lockout/tagout and machine safeguarding for mixers and fillers, confined space procedures for tanks and vessels when entry is required, control combustible dust risks and comply with reporting obligations for serious injuries.
A PEO like Key HR helps manufacturers reduce workers' comp costs by ensuring payroll is accurately classified, implementing formal safety and return‑to‑work programs, and managing claims from first report through light duty and medical management. We provide loss control audits tailored to chemical handling and machine safety, training (HAZCOM, PPE, lockout/tagout, confined space), and centralized claims advocacy to shorten claim durations and lower experience modifiers.
Get a QuoteIf your operation includes on‑site formulation, blending or filling of products for sale—beyond simple retail repackaging—you should classify those production payrolls under 4623. Purely retail sales staff should be under retail codes; separate payroll accounting prevents misclassification and inaccurate premium charges.
Controls include local exhaust ventilation at mixing stations, closed transfer systems for solvents and fragrances, dust collection for powders, intrinsically safe electricals in flammable areas, chemical splash goggles, chemical‑resistant gloves, face shields for transfers, and a documented respiratory protection program when exposures exceed limits.
Reduce costs by implementing written SOPs, HAZCOM and spill response training, a light‑duty return‑to‑work program, preventive maintenance and machine guarding, and rigorous housekeeping to control slips and combustible dust. Working with a PEO to audit classifications, manage claims proactively, and document safety improvements can improve your experience modification and lower future premiums.
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