Class Code 8388 applies to businesses that sell, mount, balance and repair rubber tires for passenger vehicles and light trucks. California employers in this class should note the September 1, 2026 approved pure premium rate of $3.922 per $100 of payroll — a baseline that influences workers' comp costs.
This classification covers retail tire dealers and shop operations whose primary work is selling tires and performing tire services: demounting/mounting, balancing, patching/plugging, valve replacement and routine wheel work. It includes both fixed-location shops and mobile service units whose main business is tire sales and on-site tire change/repair. Use of tire changers, wheel balancers, hydraulic lifts, impact wrenches, compressed air and bead breakers are central operations. Activities that go beyond retail/service — such as tire manufacturing, retreading/recapping or heavy off‑road tire rebuilds — are typically classified differently and should be reported separately.
The pure premium rate of $3.922 per $100 of payroll is the insurer's base cost for expected claim losses for Class 8388 before policy adjustments. To estimate pure premium on $100,000 payroll: (100,000 ÷ 100) × 3.922 = $3,922. The final premium on a policy will vary with your company’s experience modification, schedule or merit credits, deductible programs, state assessments, and the result of payroll classification audits.
Tire dealers must follow Cal/OSHA General Industry requirements including a written Injury and Illness Prevention Program (IIPP) and Hazard Communication for solvents and lubricants. Employers should implement safe tire inflation practices (use of restraints/inflation cages and clip-on chucks), machine guarding for tire changers and balancers, lockout/tagout for powered equipment, respiratory protection when dusts or solvents are present, and a hearing conservation program if noise exceeds action levels. Documentation of employee training and equipment inspection records is required.
A PEO like Key HR helps tire dealers by consolidating payroll and workers' comp administration, providing claims management and rapid return-to-work coordination, and delivering tailored loss-control resources — training on safe tire inflation, manual handling aids, and shop ergonomics. Key HR can also assist with classification accuracy, payroll audits, and programs that reduce experience modification and lower long-term premium.
Get a QuoteYes — mobile tire technicians whose primary business is selling, mounting or repairing passenger and light-truck tires are generally classified under 8388. Accurate payroll allocation and documentation of on-site activities are important for audits and correct premium calculation.
No — retreading, recapping, or tire manufacturing are separate operations with different class codes. If your business performs retreading in addition to retail sales, those payrolls should be segregated and reported under the appropriate manufacturing/retreading classification.
Focus on prevention: enforce safe inflation procedures (use cages and clip-on chucks), provide mechanical lifting aids and training to reduce strains, maintain equipment guards and lift inspections, implement a formal return-to-work program, and report claims promptly. Partnering with a PEO for proactive claims management and safety program implementation can accelerate experience-mod improvement.
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.