Class code 7382 applies to businesses that provide passenger transportation using buses, shuttle vans, or limousines. The September 1, 2026 approved pure premium rate for this class is $8.309 per $100 of payroll. Understanding this classification helps California operators control costs, comply with Cal/OSHA, and reduce injury exposure for drivers and support staff.
This classification covers operations that transport passengers for hire or on contract using motor coaches, minibuses, airport shuttles, hotel/resort shuttle vans, corporate shuttles and luxury limousines. It applies when employees are engaged in driving passengers, assisting riders (including wheelchairs or luggage), loading and unloading baggage, vehicle cleaning and routine on-site maintenance by employees, and in some cases short-term roadside customer assistance. It does not typically cover heavy transit maintenance performed in a separate shop by specialized mechanics if those workers are assigned to a different WCIRB code; however light vehicle service and driver-performed inspections and repairs are included. The code is focused on the day-to-day risks of moving people—ashore, curbside and on board—rather than fixed-facility exposures.
The approved pure premium rate of $8.309 per $100 of payroll represents the portion of premium intended to cover expected claim costs (paid losses and loss adjustment). Insurers multiply this pure premium by your payroll (divided by 100) to get the base pure premium, then adjust for experience modification, policy management loads, credits, premium discounts, and state assessments to produce the final premium. Factors that affect the premium you pay include your company loss history (experience modifier), safety programs, driver hiring and training practices, vehicle age and maintenance records, and how payroll is allocated across classifications.
California employers in this class must maintain an Injury and Illness Prevention Program (IIPP) per Cal/OSHA 8 CCR 3203 and enforce seat belt policies consistent with 8 CCR 3653. Drivers and on-site employees should be trained on vehicle safety inspections, hazard communication for any cleaning chemicals, and heat illness prevention (8 CCR 3395) when working outdoors or during loading in hot conditions. In addition to Cal/OSHA rules, passenger carriers should follow applicable FMCSA and California DMV rules for driver qualification, licensing (CDL where required), hours-of-service, and vehicle inspection records to meet occupational safety expectations and reduce regulatory risk.
A PEO like Key HR can centralize payroll classification, ensure correct assignment of payroll to code 7382, and provide targeted loss-control programs such as defensive driving training, passenger-handling protocols, and pre-employment driver screening. Key HR also manages claims and return-to-work coordination to shorten lost-time durations, negotiates on behalf of clients with insurers, and implements data-driven safety audits that can help lower experience modifiers and overall workers' comp costs.
Get a QuoteIf the primary function is passenger transport, use class code 7382. If drivers spend significant time performing freight or long-haul delivery work, that work may need to be split into the appropriate delivery or truck-driving classification and payroll allocated accordingly. Accurate payroll allocation is essential to avoid misclassification audits.
Independent contractors who meet strict IRS and state tests and provide proof of their own workers' comp coverage are generally not included in your payroll. However, many chauffeurs and owner-operators are treated as employees under California law; Key HR can help review contracts and insurance certificates to determine proper classification.
Implementing a written driver hiring standard, routine vehicle inspection checklists, defensive driving and passenger-assistance training, documented post-incident procedures, and a return-to-work program all reduce claim frequency and severity. Regular preventive maintenance records and CCTV or telematics help defend against false claims and improve loss history.
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