Class Code 8116
Farm Machinery Dealers Or Repair Facilities
Class Code 8116 covers dealers and repair facilities that sell, service, recondition, or maintain farm and agricultural machinery. The California pure premium for 8116 is $2.368 per $100 of payroll, which directly reflects the baseline expected loss for this exposure.
What Class Code 8116 Covers
This classification includes shop and field service operations that repair tractors, combines, harvesters, balers, planters, sprayers and other farm implements; parts departments that store, sell and ship replacement components; and mobile service trucks that perform on-farm repairs and calibrations. Work ranges from preventive maintenance, diagnostics and hydraulic system repairs to welding, engine overhauls, electrical troubleshooting and reconditioning of used equipment. It also covers loading and unloading equipment with forklifts or cranes, road testing machinery, and warranty work performed for manufacturers. Sales staff who are primarily parts counter and light shop support may be included if they perform hands-on repair or parts handling as part of the operation.
Who It Applies To
- Full-service farm equipment dealerships (new and used equipment)
- Independent agricultural equipment repair shops
- Mobile service fleets that perform on-farm repairs and calibrations
- Reconditioning and used-equipment refurbishment businesses
- Dealership service technicians, shop supervisors, and parts handlers
Common Job Duties
- Diagnosing engine, transmission and electrical faults using hand tools and diagnostic scanners
- Repairing hydraulic systems, hoses, cylinders and fittings
- Welding, metal fabrication and structural repairs to implements and frames
- Removing, installing and testing engines, PTOs and driveline components
- Operating forklifts, hoists, shop cranes and roll-back service trucks to move heavy equipment
- Performing field calibrations, test drives and on-farm adjustments
Common Injury Risks
Understanding the $2.368 Rate
The pure premium of $2.368 per $100 of payroll represents the insurer's expected loss cost for Class Code 8116 before overhead, profit and other policy loadings. To estimate a premium, divide payroll by 100 and multiply by 2.368; carriers then apply expense loads, employer-specific experience modification, credits/penalties (e.g., schedule rating), and any policy-level adjustments. Final cost is affected by a shop's claims history, payroll mix (clerical vs. shop), safety controls, and whether mobile or high-risk exposures are separated correctly.
Cal/OSHA Compliance Requirements
California employers with farm machinery repair operations must follow Cal/OSHA Title 8 General Industry Safety Orders, including the statewide Injury and Illness Prevention Program (IIPP) requirement, control of hazardous energy (lockout/tagout) procedures, machine guarding, welding and cutting safety, and powered industrial truck operator training. Maintain written hazard communication, respiratory protection and hearing conservation programs when exposures warrant, and keep accurate injury and illness records as required by Cal/OSHA.
How Key HR Helps Employers Under Class Code 8116
A PEO like Key HR can help shops reduce workers' comp costs by ensuring accurate classification and payroll reporting, implementing a return-to-work program, managing claims and medical care vendors, and delivering targeted safety training (LOTO, welding safety, forklift certification). Key HR also provides OSHA recordkeeping support, on-site risk assessments, and ongoing loss-prevention coaching to help lower experience mods and insurance premiums over time.
Get a QuoteFrequently Asked Questions
Are parts counter and office staff included in Class Code 8116?
Purely clerical or sales staff who do not handle parts, perform repairs, or load/unload equipment are usually classed separately as clerical (e.g., code for clerical employees). Parts counter employees who routinely lift, move, or deliver parts and who assist with shop duties should be included in 8116.
Do mobile service technicians on customer farms fall under 8116?
Yes. Technicians who perform on-farm repairs, calibrations or diagnostics for agricultural machinery are generally included in 8116. Track vehicle-related exposures separately with commercial auto coverage and ensure mobile work is accounted for in payroll and safety programs.
What practical steps lower workers' comp costs for a repair facility?
Documented IIPP, strict lockout/tagout, regular welding and respirator training, forklift certification, preventive maintenance of shop hoists and slings, an active return-to-work program, and separating clerical payroll from shop payroll are proven ways to reduce claims and lower your experience modification and premiums.
Quick Facts
- Class Code
- 8116
- Classification
- Farm Machinery Dealers Or Repair Facilities
- Pure Premium Rate
- $2.368 / $100 payroll
- Effective Date
- September 1, 2026
- Source
- WCIRB Approved Filing
Manage Workers' Comp Through a PEO
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