Class Code 8806
Sheltered Workshops
Class Code 8806 covers sheltered workshops that provide supervised, paid work and vocational training for people with disabilities. This classification applies to light assembly, packaging, sorting, janitorial and food-preparation tasks performed under supervision. The September 1, 2026 approved pure premium rate for this class in California is $2.834 per $100 of payroll.
What Class Code 8806 Covers
8806 specifically applies to facilities that operate sheltered employment programs where workers—often persons with disabilities—perform productive work under close supervision as part of vocational training or transitional employment. Typical operations include light assembly, labeling and packing, sorting and rework, textile or sewing stations, simple machine operation (sewing machines, small presses), custodial/housekeeping, and basic food handling or tray assembly performed on-site. The code covers both the workers performing the tasks and on-site staff whose duties are integral to the sheltered program: job coaches, supervisors, and support personnel. It also includes workshops run by nonprofits, vocational rehabilitation providers, sheltered enclaves run by contractors, and facilities that contract out light manufacturing or packaging services.
Who It Applies To
- Nonprofit sheltered workshops providing vocational training and paid work
- Vocational rehabilitation centers operating supervised production lines
- Contractors running sheltered enclaves within larger manufacturing sites
- Job coaches, transition supervisors, and on-site support staff
- Small employers who outsource light assembly or packaging to a sheltered program
Common Job Duties
- Assembling small parts, components, or kits at bench stations
- Packaging, labeling, and sorting products for shipment
- Operating light equipment such as sewing machines, small presses, or bench tools
- Custodial and housekeeping tasks (mopping, trash removal, basic maintenance)
- Basic food preparation or tray assembly in non-complex food service
- Receiving, kitting, and light material handling with hand trucks or carts
- Providing direct job coaching, supervision, and skills training
Common Injury Risks
Understanding the $2.834 Rate
The pure premium rate of $2.834 per $100 of payroll is the industry-calculated cost of expected claims before insurer loadings and adjustments. To estimate base workers' comp cost, multiply payroll by 0.02834 (payroll/100 times $2.834); insurers then apply experience modification, policy fees, state assessments, and any program credits or debits. Final premiums depend on your workshop's actual payroll mix, claim history, classification accuracy, and loss-control measures.
Cal/OSHA Compliance Requirements
Sheltered workshops must comply with California Title 8 standards including a written Injury and Illness Prevention Program (IIPP), machine guarding, hazard communication for any chemicals present, and lockout/tagout where applicable. Training must be provided in a manner and language workers understand (plain language, hands-on demonstrations, or pictorials for workers with cognitive or communication disabilities). Employers must report serious injuries and fatalities to Cal/OSHA within required timeframes and maintain proper recordkeeping.
How Key HR Helps Employers Under Class Code 8806
A PEO like Key HR can manage workers' comp administration, class-code accuracy, and payroll reporting to reduce audit exposure while providing centralized claims handling and return-to-work programs tailored to sheltered environments. We can deliver job-specific safety plans, bilingual or simplified training materials, ergonomic assessments, and pooled programs that help stabilize rates and lower long-term claims costs.
Get a QuoteFrequently Asked Questions
Are sheltered workshop employees covered by California workers' compensation?
Yes. Employees in sheltered workshops are employees for workers' comp purposes in California and must be insured. All wages paid to workers, including subminimum or piece-rate pay under a rehabilitation or labor certificate, should be reported accurately to the carrier under Class Code 8806 unless a different code clearly applies.
How do I calculate my estimated workers' comp premium using the $2.834 rate?
Multiply total payroll subject to workers' comp by 0.02834 (that is, payroll divided by 100, times $2.834) to get the pure premium. Your insurer will then apply your experience modification factor, policy administrative charges, state assessments and any program adjustments to arrive at the final premium.
What practical safety steps reduce claims in sheltered workshops?
Implement task-specific job coaching, use simple ergonomic workstations, provide machine guarding and needle guards, establish strict housekeeping to prevent slips/trips, train workers in accessible formats, limit repetitive-motion exposures with rotation or micro-breaks, and maintain clear hazardous-chemical labeling and PPE. These measures both reduce injuries and help lower your experience modifier over time.
Quick Facts
- Class Code
- 8806
- Classification
- Sheltered Workshops
- Pure Premium Rate
- $2.834 / $100 payroll
- Effective Date
- September 1, 2026
- Source
- WCIRB Approved Filing
Manage Workers' Comp Through a PEO
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