Class Code 8227
Construction Or Erection Permanent Yards Or Shops
Class code 8227 covers permanent yards or shops used for construction or erection work — not temporary jobsite lay-down areas. Typical operations include on-site fabrication, equipment servicing and materials storage; the approved pure premium rate for California (effective Sept 1, 2026) is $4.843 per $100 of payroll. Correctly classifying these operations matters because it drives workers' comp exposure, safety requirements, and premium calculations.
What Class Code 8227 Covers
This classification applies to permanent construction or erection yards and adjacent shops where construction-related activities are performed as part of a contractor's ongoing operations. Examples: a general contractor's permanent yard where structural components are prefabricated, a steel erector's shop used to assemble beams and columns, a contractor's vehicle/equipment maintenance shop that services excavators and cranes, and a materials yard where heavy components are stored and staged. Work is typically heavier-duty than an office or temporary site trailer and includes fabrication, welding, machining, equipment repair, and repetitive material handling. The key factor is that the facility is a continuing, stable location used to support construction/erection operations rather than a short-term field site.
Who It Applies To
- General and specialty contractors with a permanent prefabrication or staging yard
- Structural steel fabricators and erectors operating a shop adjacent to construction sites
- Contractors with on-site equipment maintenance/repair shops for construction vehicles
- Prefabricated building or modular assembly facilities tied to construction projects
- Civil contractors that operate permanent aggregate or materials storage yards
Common Job Duties
- Cutting, welding, grinding, and fitting structural metal components
- Operating forklifts, overhead cranes, mobile cranes, and hoists to move heavy materials
- Repairing and maintaining construction equipment and trucks
- Assembling prefabricated modules, trusses, or concrete forms in the shop
- Loading/unloading of heavy materials and inventory management
- Machine setup and operation (shears, presses, saws) and general shop housekeeping
Common Injury Risks
Understanding the $4.843 Rate
The pure premium rate of $4.843 per $100 of payroll is the WCIRB-approved measure of expected loss costs for this class — it represents estimated claim costs only. Insurers use that pure premium as a base and then add underwriting loads, state assessments, and administrative fees to produce the final premium; an employer's experience modification, participation in retrospective or deductible programs, class-code audits, and payroll reporting accuracy will all affect the amount actually billed.
Cal/OSHA Compliance Requirements
Cal/OSHA requirements most relevant to permanent construction yards and shops include maintaining an effective Injury and Illness Prevention Program (IIPP), implementing hazard communication and respiratory protection where welding or silica-generating work occurs, machine guarding and lockout/tagout for powered equipment, and qualified operator training for forklifts and cranes. Employers must also control welding fumes and provide fall protection and hearing conservation where applicable; regular workplace inspections and documented training are central to compliance.
How Key HR Helps Employers Under Class Code 8227
A PEO like Key HR can help employers in class 8227 by auditing payroll and class codes to avoid misclassification, implementing targeted safety programs (welding ventilation, powered industrial truck training, silica controls), managing claims and return-to-work plans to limit indemnity costs, and leveraging group buying power for workers' comp placements. Key HR also provides regulatory guidance, safety training resources, and access to loss-sensitive programs that can reduce net premium over time.
Get a QuoteFrequently Asked Questions
How do I know if my facility belongs in class 8227 or another code?
Class 8227 is for permanent yards or shops used primarily to support construction or erection operations (fabrication, assembly, equipment repair, materials staging). If your location is a continuing facility with shop equipment and heavy fabrication or maintenance — not a temporary on-site trailer or office — it likely fits 8227. Have a payroll/classification audit performed to confirm.
What practical steps reduce workers' comp exposure for 8227 operations?
Focus on engineering controls (machine guarding, local exhaust for welding), powered industrial truck and crane operator training, strict lockout/tagout, a documented respiratory protection and silica control program, routine preventive maintenance, and a formal return-to-work program to shorten claim durations.
Does the $4.843 rate mean that's what I will pay per $100 of payroll?
No — $4.843 is the pure premium (expected loss) per $100 of payroll. Your insurer adds expense loads, fees and state assessments, and your own experience modification, deductible choices, and program discounts will change your final premium. Regular audits and safety improvements can lower your audit exposure and experience rating.
Quick Facts
- Class Code
- 8227
- Classification
- Construction Or Erection Permanent Yards Or Shops
- Pure Premium Rate
- $4.843 / $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 8227?
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