Class Code 8742
Salespersons – Outside
Class code 8742 covers outside salespersons who spend the majority of their time off company premises calling on customers, conducting demonstrations, or soliciting orders. The September 1, 2026 approved pure premium rate for California is $0.337 per $100 of payroll, a low-loss-cost indicator employers should understand when budgeting workers' comp.
What Class Code 8742 Covers
This classification applies to employees whose primary job is outside sales activity rather than regular on-site office work. Typical operations include visiting customer locations, performing product demonstrations, soliciting orders, delivering small samples, and traveling between accounts. It covers commissioned and salaried field sales staff who do not perform significant manual labor or fixed shop/warehouse duties. Clerical or inside sales work performed at the employer's business location is not assigned to 8742 and should be reported under the appropriate office or clerical class code. Accurate reporting of time spent on outside sales versus other duties is essential because mixed-duty employees may require payroll split between class codes.
Who It Applies To
- Pharmaceutical and medical device sales representatives who visit clinics and hospitals
- Industrial and equipment sales reps who demonstrate products at customer sites
- Wholesale salespeople who call on retail or business accounts and deliver samples
- Field account executives or territory managers who travel between clients
- Manufacturer's representatives who sell and set up demonstrations at customer locations
Common Job Duties
- Visiting customer locations to solicit orders, present proposals, and close sales
- Driving or traveling between multiple client appointments in a territory
- Performing product demonstrations and setting up temporary displays or samples
- Carrying and occasionally lifting sample cases, brochures, and demo units
- Completing sales reports, order forms, and follow-up paperwork while mobile
- Attending trade shows and customer events off-site
Common Injury Risks
Understanding the $0.337 Rate
The pure premium rate of $0.337 per $100 of payroll represents the estimated cost of expected claims (medical plus indemnity) per $100 of payroll before insurer expenses and profit. To calculate the pure premium, divide total payroll for 8742 by 100 and multiply by 0.337; final premiums will be adjusted by the insurers expense constant, experience modification (X-Mod), premiums audits, and state assessments. Factors that change the actual premium include payroll accuracy, mix of commissioned versus wage pay, past claim history, safety programs, and correct classification of mixed-duty employees.
Cal/OSHA Compliance Requirements
Employers must maintain an Injury and Illness Prevention Program (IIPP) under Cal/OSHA (Title 8, section 3203) and comply with specific rules such as heat illness prevention (section 3395) when outdoor work is involved. While driving on public roads is governed by vehicle laws, employers are responsible under Cal/OSHA to provide safe procedures, training and vehicle inspection programs for employees who drive as part of their job. Serious work-related injuries requiring hospitalization, amputation or loss of an eye must be reported to Cal/OSHA within the required timeframe.
How Key HR Helps Employers Under Class Code 8742
A PEO like Key HR helps California employers in class 8742 by ensuring accurate payroll classification, administering premium audits, and negotiating carriers while providing targeted loss-control resources such as driver safety training, lifting ergonomics for sample handling, and heat-illness plans. Key HR also manages claims, coordinates return-to-work programs to reduce indemnity exposure, and centralizes payroll and reporting to minimize misclassification and surprise audit adjustments.
Get a QuoteFrequently Asked Questions
Is 8742 considered a low-risk class for workers' comp?
Compared with heavy manufacturing classes, 8742 typically has lower claim frequency, reflected in the low pure premium of $0.337 per $100. However, outside sales still carry distinct risks—auto accidents, slips in customer premises and strains from sample handling—so proactive controls matter.
How should I report payroll for commissioned outside salespeople?
In California, payroll for workers' comp premium purposes generally includes wages and commissions that the employer pays. Employers must report commissions under the proper payroll reporting rules and ensure they are assigned to the correct class code; your carrier or PEO can confirm reporting details and any state-specific adjustments.
Can I classify someone as outside sales if they split time between field visits and in-office tasks?
You must classify employees to reflect their actual duties. If significant time is spent on inside clerical work or warehouse duties, payroll should be split between the appropriate class codes. Misclassification can trigger audits and premium adjustments, so document time on tasks and consult your insurer or PEO for proper splits.
Quick Facts
- Class Code
- 8742
- Classification
- Salespersons – Outside
- Pure Premium Rate
- $0.337 / $100 payroll
- Effective Date
- September 1, 2026
- Source
- WCIRB Approved Filing
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