Class Code 8823 applies to California residential care facilities that provide 24-hour supervision, group living, and treatment services for children. The approved pure premium rate for September 1, 2026 is $3.310 per $100 of payroll. Understanding this classification helps facility operators control risk, maintain compliance, and manage workers' comp costs.
This classification covers facility-based child residential programs where children live on-site and staff provide room, board, supervision, behavioral intervention, counseling, case management, and routine medical/medication administration. Typical operations include group homes, residential treatment centers, emergency shelters for minors, and licensed foster group facilities where employees maintain continuous on-site or on-call responsibilities. Included employees are direct care staff, house parents, youth counselors, program supervisors, licensed vocational nurses who administer medications, facility cooks and custodial staff, and drivers who transport minors as part of program activities. It excludes standalone outpatient clinics, schools without residential components, and purely administrative headquarters that do not perform direct resident care.
The pure premium rate of $3.310 per $100 of payroll represents the portion of premium allocated to expected claim costs based on historical loss data for this classification. Insurers multiply that rate by your payroll (divided by 100) to arrive at a base pure premium; your final premium will also reflect experience modification, insurer expense/loading, policy credits or debits, deductible choices, and results of payroll audits. Improving safety, reducing claims frequency and accurate payroll classification can lower the ultimate premium.
California employers must implement an Injury and Illness Prevention Program (IIPP) as required by Title 8 73203 and maintain training and recordkeeping. Residential care facilities for children should also follow Cal/OSHA standards for Workplace Violence Prevention in health care/social services and the Aerosol Transmissible Diseases standard (Title 8 75199) when exposure risks exist. Additional obligations include timely injury reporting, employee training on safe restraint and de-escalation, safe medication handling, and vehicle safety practices for staff who transport residents.
A PEO like Key HR can help facilities using Class Code 8823 by ensuring accurate payroll classification, providing California-specific compliance expertise, and administering workers' comp claims to speed recovery and control costs. Key HR can deliver targeted loss-prevention services—violence-prevention training, safe patient handling/ restraint protocols, driver-safety programs, return-to-work planning, and nurse case management—that reduce claim severity and help stabilize experience modification rates.
Get a QuoteYes. Drivers who transport residents as part of the facilitys program (to school, medical appointments or court) are typically included under 8823 if they are on payroll and part of on-site residential operations; however, dedicated off-site transportation contractors may be classified differently.
Unpaid volunteers are not payroll and not directly rated, but paid foster-house parents or staff on your payroll fall under 8823. Facilities should document volunteer roles separately and carry appropriate liability and workers' comp coverage if volunteers perform duties that create employer responsibility under California law.
Key steps include robust hiring and screening, de-escalation and restraint training, medication administration protocols, safe lifting practices, documented return-to-work plans, prompt injury reporting and claims management, and regular safety audits; these actions reduce claim frequency and severity, improving your experience modification and premium.
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