Class Code 8267 covers dealers who buy, sell, store, demonstrate, move or refurbish secondhand industrial, construction, agricultural and manufacturing machinery in California. This classification applies to payroll exposed to handling and showing used equipment and carries a September 1, 2026 approved pure premium rate of $4.958 per $100 of payroll.
This class is for businesses whose primary activity is dealing in used machinery or heavy equipment — not office-only sales. Typical operations include maintaining a yard or lot of used equipment, preparing machines for resale (cleaning, basic refurbishing, testing), demonstrating equipment to buyers, loading and unloading with forklifts or cranes, and transporting machines on and off trailers. It covers on-site mechanical work related to resale when performed as part of dealer operations (weld repairs, hydraulic checks, battery work), plus the work of yard personnel who move and stage units. Work that is purely light clerical, office sales with no exposure to equipment, or heavy repair shop operations performed as a separate service business may be classified differently and should be documented separately.
The pure premium rate of $4.958 per $100 of payroll represents the estimated cost of future medical and indemnity losses per $100 of payroll for this classification. Insurers multiply that rate by your payroll (divided by 100) to get the loss-cost portion of premium, then add statutory assessments, expense loads and any credits/penalties such as experience modification, schedule rating or deductible adjustments to determine the final policy premium.
Cal/OSHA requirements most relevant to secondhand machinery dealers include powered industrial truck operator training and certification, crane and rigging safety for overhead lifts and load securement, control of hazardous energy (lockout/tagout) during maintenance and testing, machine guarding during refurbishment, hazard communication for fuels and solvents, and PPE standards for eye, hearing and respiratory protection. Employers must implement written programs, provide training in the language of the worker, maintain equipment inspection records, and correct recognized hazards promptly.
A PEO like Key HR helps dealers manage workers' comp costs by ensuring accurate payroll classification, providing safety and compliance programs tailored to equipment yards, delivering certified training for forklift/crane operators, and handling claims and return-to-work coordination to reduce lost-time costs. Key HR leverages national claims management, loss-control consulting, and group purchasing to lower insurance expense while keeping California-specific Cal/OSHA compliance front of mind; Key HR is based in Orlando and serves employers in all 50 states including California.
Get a QuoteNo — clerical or office-only sales staff with no exposure to used equipment are generally classified separately (office or clerical codes). Salespeople who operate, demonstrate, or move equipment as part of their duties should be coded to 8267 for the payroll portion exposed to those tasks.
Possibly. Light refurbishing and testing done to prepare equipment for resale typically remains in 8267, but extensive repair, heavy welding, or full-service rebuild operations may trigger a separate repair or machine shop classification for that portion of payroll. Document work scopes and consult your carrier or PEO for accurate coding.
Focus on preventing high-severity claims: enforce powered industrial truck and rigging training, maintain equipment inspection and maintenance logs, implement formal lockout/tagout and HAZCOM programs, and run an early return-to-work program. Working with a PEO to improve safety programs, accurate payroll classification, and proactive claims management will also lower experience modification and premium over time.
Key HR provides pay-as-you-go workers' comp for California employers — no large deposits, no audits, better rates.
Get a Quoteor call (800) 922-4133Key HR provides California employers with pay-as-you-go workers' comp, HR compliance support, and payroll — all through one PEO partnership.