Class Code 5507
Street Or Road Construction – Grading
Class Code 5507 covers street and road construction grading work in California — the earthmoving, subgrade preparation, slope work and drainage that precedes paving. The WCIRB-approved pure premium rate for 9/1/2026 is $3.799 per $100 of payroll, a base used to price workers' compensation for contractors doing grading operations.
What Class Code 5507 Covers
This classification applies to construction operations where the primary task is grading for streets, roads, and related right-of-way work — cutting and filling to establish road alignment, shaping subgrades, building road shoulders and ditches, and preparing drainage structures. Activities include use of motor graders, bulldozers, excavators, compactors and hauling of soils on-site; setting grade stakes and stringlines; and performing soil stabilization or placement of aggregate base. Work that is principally paving or surfacing (asphalt or concrete placement) is typically classified under a different code; utility installation or specialized tunneling may also be separately classified. The code covers both contractor crews and subcontracted grading crews working for municipalities, developers, or highway contractors when grading is the core operation.
Who It Applies To
- Heavy civil contractors specializing in street and road grading
- Municipal public works grading crews preparing road subgrades
- Site development contractors performing road alignment and shoulders
- Excavation subcontractors hired specifically for grading and cut/fill
- Heavy equipment operators and grading crew foremen
Common Job Duties
- Operating motor graders, bulldozers, excavators, compactors and loaders to cut/fill and shape roadbeds
- Setting grade stakes, reading grade/slope plans and using laser/staking equipment
- Trenching for shoulders, ditches and subdrain systems and backfilling
- Hauling and spreading imported or excavated materials and aggregate base
- Performing compaction tests, soil stabilization and moisture conditioning
- Maintaining and servicing heavy equipment on-site and performing minor adjustments
- Implementing traffic control measures and coordinating with flaggers when working adjacent to live traffic
Common Injury Risks
Understanding the $3.799 Rate
The pure premium rate of $3.799 per $100 of payroll is the insurer's expected claim cost before expenses and adjustments. To estimate premium, multiply your payroll for workers in this class by 0.03799; insurers then add expense loads, apply your experience modification, and include any endorsements, deductibles or schedule credits that affect the final premium. Factors that change what you actually pay include your loss history, how payroll is assigned across classes, claims management and safety programs, and whether you use a PEO or participate in a group rating plan.
Cal/OSHA Compliance Requirements
Grading operations trigger multiple Cal/OSHA construction requirements: excavation and trenching protections (shoring, sloping or shielding), competent person inspections, and traffic-control measures when working adjacent to public roadways. Employers must also comply with California's Heat Illness Prevention rules, the Construction silica standard for exposure control, and maintain an active Injury and Illness Prevention Program (IIPP) with job-specific hazard assessments and training. Proper PPE, equipment rollover protection (ROPS), and routine maintenance records are critical for compliance during grading work.
How Key HR Helps Employers Under Class Code 5507
A PEO like Key HR helps grading contractors by centralizing payroll classification, managing claims with experienced adjusters, and implementing targeted loss-control programs (trench safety, heavy-equipment operator training, silica monitoring, heat-illness plans). Key HR can also help lower experience modifications through return-to-work programs, verified safety documentation for audits, and by placing staffing and subcontractor payroll correctly to avoid misclassification surcharges.
Get a QuoteFrequently Asked Questions
How do I know if my crew should be coded to 5507 instead of a paving or excavation code?
Use 5507 when the primary operation is grading and preparing the road subgrade — earthmoving, cut/fill, shaping shoulders and ditches. If your crews are primarily installing asphalt/concrete surfacing, striping, or specialized utility installation, those tasks are normally coded to separate classifications. Accurate job descriptions and payroll allocation by task are essential for correct classification.
What practical steps reduce workers' comp costs for grading operations?
Focus on proven controls: formal competent-person excavation programs, certified operator training, ROPS and seat-belt enforcement, silica exposure monitoring and controls, documented heat-illness prevention, and an active return-to-work policy. Good recordkeeping and quick, medical-first claims handling reduce lost-time claims and improve your experience modification.
What Cal/OSHA violations do graders most commonly get cited for?
Common citations involve inadequate trench/excavation protection, insufficient traffic control when working near live roadways, failure to implement heat illness prevention measures, lack of a competent person performing required inspections, and inadequate controls for silica or PPE. Regular audits, training, and competent-person oversight help prevent these citations.
Quick Facts
- Class Code
- 5507
- Classification
- Street Or Road Construction – Grading
- Pure Premium Rate
- $3.799 / $100 payroll
- Effective Date
- September 1, 2026
- Source
- WCIRB Approved Filing
Manage Workers' Comp Through a PEO
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Get a Quoteor call (800) 922-4133Ready to Simplify Workers' Comp for Class Code 5507?
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