Class Code 8106
Metal Stock Dealers
Class Code 8106 covers businesses that buy, sell, warehouse and distribute metal stock such as plate, bar, rod, sheet and coil, including routine cutting and order-fulfillment operations. The California pure premium rate for 8106 is $5.609 per $100 of payroll, which helps determine workers' comp costs for these operations.
What Class Code 8106 Covers
This classification applies to dealers and distributors whose primary business is stocking and selling metal products for resale rather than fabricating finished products. Typical operations include receiving and inspecting incoming coils, plates and bar stock, storing and racking heavy metal inventory, cutting or sawing pieces to customer-specified lengths or slitting coils for shipment, and loading/unloading trucks. It covers in-yard and warehouse handling, counter sales where employees handle material, and routine equipment use such as forklifts, overhead hoists, band saws and hydraulic shears. It does not normally include employers whose primary operation is fabrication, welding, or assembly; those firms are classified in metal fabrication codes.
Who It Applies To
- Metal service centers and distributors that stock plate, sheet, coil, bar and rod
- Industrial supply houses that cut-to-length metal for resale
- Sheet and coil distributors that perform slitting or cut-to-size services
- Warehouse and yard crews who handle, store and ship heavy metal stock
- Counter sales staff who physically handle and process customer orders
- Truck drivers and dock workers who load and unload metal shipments
Common Job Duties
- Receiving and visually inspecting coils, plates and bar stock for damage
- Operating forklifts, telehandlers and overhead cranes to move heavy material
- Cutting, sawing, shearing or slitting metal to customer specifications
- Loading and securing metal on trucks and flatbeds for shipment
- Staging, racking and inventorying heavy sheets, plates and bars
- Hand-trimming, deburring and preparing cut edges for shipment
- Customer counter service that includes measuring, cutting and staging orders
Common Injury Risks
Understanding the $5.609 Rate
The pure premium rate of $5.609 per $100 of payroll represents the portion of premium actuarially assigned to cover expected claim costs for this class—multiply your payroll by 0.05609 to get the pure premium. Insurers then apply the employers experience modification, policy-specific adjustments, minimum premiums and other rating factors to determine the final premium payable by the employer.
Cal/OSHA Compliance Requirements
Cal/OSHA requires effective machine guarding, training and lockout/tagout programs for employees who operate saws, shears and other powered equipment, plus powered industrial truck operator certification for forklift drivers. Employers must comply with hazard communication for cutting fluids and lubricants, provide appropriate PPE (cut-resistant gloves, eye and hearing protection), and follow safe rigging and overhead lift practices when using cranes and hoists.
How Key HR Helps Employers Under Class Code 8106
A PEO like Key HR helps employers in this classification by ensuring proper payroll classification, managing claims and return-to-work programs, and delivering targeted loss-control services such as forklift and machine-guarding training. Key HR also provides consolidated payroll and experience-mod monitoring, access to safety consultants and standardized safety programs that can reduce claim frequency and lower workers' comp costs over time.
Get a QuoteFrequently Asked Questions
Are inside sales or office staff included in Class Code 8106?
No. True office clerical or outside sales employees who do not handle metal stock are normally reported separately (clerical and outside sales classifications). Employees who work at the counter and physically handle, cut or stage metal orders are reported under 8106.
How can a metal stock dealer reduce workers' comp premiums for this class?
Focus on controlling the biggest risks: certified forklift training and enforcement, robust machine guarding and safe cutting procedures, proper PPE, safe stacking/racking practices, early return-to-work programs and accurate payroll allocation. These measures reduce claims, improve experience modification and lower the insurers final premium.
When does a dealer get reclassified into a metal fabrication code instead of 8106?
If the employer's primary business shifts from resale/distribution to fabrication activities like welding, forming, extensive assembly or production of finished metal products, the operations are typically reclassified to metal fabrication codes. Occasional cut-to-length or slitting done solely to fill resale orders generally stays in 8106.
Quick Facts
- Class Code
- 8106
- Classification
- Metal Stock Dealers
- Pure Premium Rate
- $5.609 / $100 payroll
- Effective Date
- September 1, 2026
- Source
- WCIRB Approved Filing
Manage Workers' Comp Through a PEO
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