Class Code 8107
Machinery And Equipment Dealers
Class Code 8107 covers California businesses that deal in machinery and equipment — including sales, parts, service, installation and transportation of heavy or industrial equipment. The September 1, 2026 approved pure premium rate is $2.526 per $100 of payroll, which is the base cost used to calculate workers' compensation premium for employers in this classification.
What Class Code 8107 Covers
This classification applies to dealers and distributors whose primary operations include selling, stocking and supplying machinery and large equipment (construction, agricultural, industrial) and performing related services such as parts replacement, on‑site installation, test runs and warranty repair. Activities covered include shop service and diagnostics, field service calls to customer locations, loading/unloading and securing equipment for transport, equipment demonstrations and operator training. It also covers parts counters where employees handle heavy components, and mechanics who perform adjustments, hydraulic/electrical troubleshooting, and routine maintenance. If a business only stores or displays new, boxed equipment with no servicing, payroll split or a different code may apply; accurate reporting of sales versus service payroll is important.
Who It Applies To
- Construction and heavy equipment dealerships (excavators, loaders, graders)
- Agricultural machinery dealers (tractors, combines, harvesters)
- Industrial equipment distributors and rental dealers with service departments
- Authorized parts and service centers performing repairs and installations
- Field service technicians and shop mechanics employed by machinery dealers
Common Job Duties
- Inspecting, diagnosing and repairing hydraulic, pneumatic and electrical systems
- Loading, unloading and rigging heavy equipment for delivery or transport
- Installing equipment at customer sites, anchoring, aligning and testing operation
- Operating forklifts, overhead cranes, hoists and other material‑handling equipment
- Replacing parts, changing fluids, welding and performing preventive maintenance
- Demonstrating equipment operation and training customer operators
Common Injury Risks
Understanding the $2.526 Rate
The pure premium rate of $2.526 per $100 of payroll is the base charge representing expected claim costs for this class. Insurers multiply that pure premium by payroll (payroll/100) to get the pure cost; your final policy premium is adjusted by experience modification, carrier expense and state assessments, plus any credits, debits, deductibles or retrospective adjustments. Employers with higher claim frequency, misclassified payroll or significant field service exposures can see higher final premiums; strong safety and return‑to‑work programs can reduce the experience modifier and lower cost.
Cal/OSHA Compliance Requirements
Cal/OSHA Title 8 requirements commonly apply to dealers and service operations, including machine guarding, control of hazardous energy (lockout/tagout), hazard communication for fuels and solvents, and training/authorization for powered industrial trucks and crane/hoist operations. Employers must maintain equipment inspection records, provide PPE, document training and keep injury/illness records; field service work also requires traffic and site‑specific hazard assessments.
How Key HR Helps Employers Under Class Code 8107
A PEO like Key HR can centralize California workers' compensation administration, provide tailored loss control programs (forklift and rigging training, LOTO, hazard communication), handle claims and medical case management, and implement return‑to‑work plans to lower experience modification. We also assist with accurate payroll classification, audits and safety documentation to reduce misclassification surcharges and control long‑term premium costs.
Get a QuoteFrequently Asked Questions
Does Class Code 8107 include both sales staff and service mechanics?
Yes — 8107 covers dealers who perform sales, parts and service for machinery and equipment. If an employer has distinct operations (for example, a showroom sales staff vs. heavy repair shop or third‑party contractors), payroll should be split or different class codes used to reflect the differing risk profiles.
How much would the pure premium be for $500,000 in payroll?
Pure premium = ($500,000 ÷ 100) × $2.526 = 5,000 × $2.526 = $12,630. Your insurer will then apply experience modification, expense multipliers, assessments and any endorsements to determine the final policy premium.
What practical safety measures most reduce workers' comp claims for machinery dealers?
Key measures include a documented lockout/tagout program, machine guarding, certified operator and forklift training, rigging and lifting procedures, pre‑use equipment inspections, spill and chemical handling controls, and prompt return‑to‑work/modified duty processes to reduce claim duration and frequency.
Quick Facts
- Class Code
- 8107
- Classification
- Machinery And Equipment Dealers
- Pure Premium Rate
- $2.526 / $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 8107?
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