Class Code 8851
Congregate Living Facilities – Elderly
Class Code 8851 applies to congregate living facilities that provide room, board and custodial or personal care to elderly residents. This includes licensed Residential Care Facilities for the Elderly (RCFEs), assisted living and memory care units. The September 1, 2026 pure premium rate for California is $3.529 per $100 of payroll.
What Class Code 8851 Covers
This classification covers work performed in facilities that provide congregate housing and non-acute personal care services to older adults: RCFEs, assisted living residences, board-and-care homes, and dedicated memory-care units. Services include help with activities of daily living (ADLs) such as bathing, dressing, toileting, feeding, medication assistance when provided by facility staff, supervision of residents with dementia, and communal dining and activity programs. It typically excludes in-home private caregiver services and separate licensed skilled nursing facilities (SNFs) delivering acute medical care. Payroll for direct care staff, facility nursing staff employed by the residence, maintenance, housekeeping and food service workers who work in the facility are commonly assigned here unless specific duties are assigned to a different classification (for example, exclusive clerical employees).
Who It Applies To
- Licensed Residential Care Facilities for the Elderly (RCFEs) and small board-and-care homes
- Assisted living residences and memory care units serving elderly residents
- Direct care staff: caregivers, care aides, nursing assistants employed by the facility
- Facility-employed licensed nurses (LVNs/RNs) working within the residence
- Housekeeping, dietary/kitchen staff and maintenance workers who work on-site
Common Job Duties
- Assisting residents with ADLs: bathing, dressing, transferring, toileting and feeding
- Medication reminders and limited medication administration where permitted by state law
- Supervising residents with dementia, wandering prevention and fall monitoring
- Lifting, transferring and repositioning residents using manual or mechanical aids
- Housekeeping, laundry and disinfecting resident rooms and common areas
- Food preparation, serving meals and meal cleanup in a congregate dining setting
- Routine facility maintenance, groundskeeping and equipment checks
Common Injury Risks
Understanding the $3.529 Rate
The pure premium rate of $3.529 per $100 of payroll represents the portion of premium calculated to cover expected claim costs (frequency and severity) for this classification. To estimate your workers' comp premium, the insurer multiplies the pure premium rate by your payroll in $100s, then adjusts it for your experience modification (X-mod), insurer expense loads, assessments and any state surcharges. Final cost varies with your facility's claims history, payroll accuracy and classification, participation in deductible or retrospective programs, and the insurer or PEO's rating plan.
Cal/OSHA Compliance Requirements
Employers in congregate elderly care must follow Cal/OSHA standards applicable to healthcare and residential care settings, notably the Aerosol Transmissible Diseases (ATD) standard and the Bloodborne Pathogens standard, plus general IIPP requirements. Facilities should maintain written Injury and Illness Prevention Programs, infection control protocols, safe patient handling or lift-assist measures, and timely reporting and recordkeeping for work-related injuries and illnesses.
How Key HR Helps Employers Under Class Code 8851
A PEO like Key HR helps reduce workers' comp costs by ensuring accurate classification and payroll reporting, implementing targeted loss-control programs (safe patient handling, de-escalation training, infection control), and managing claims and return-to-work plans to shorten disability durations. Key HR also provides California-specific compliance support, training programs for dementia care and lifting equipment procurement guidance, and access to pooled or preferred insurance arrangements to stabilize premiums.
Get a QuoteFrequently Asked Questions
Are licensed nurses and CNAs employed by the facility included in Class Code 8851?
Yes. Licensed vocational nurses (LVNs), registered nurses (if employed by the facility) and certified nursing assistants who perform direct care in the congregate elderly residence are generally included under 8851. However, if a nurse performs exclusively medical services for a separate medical entity, their payroll may be classified differently.
Can I move clerical or administrative staff off Class Code 8851?
Yes. Clerical or administrative employees who perform only office duties and never enter resident care areas are typically assigned to a clerical classification, which carries a lower rate. Accurate payroll segregation and job descriptions are important to avoid misclassification and audits.
What practical steps lower my workers' comp premium for an RCFE?
Focus on reducing claim frequency and severity: implement a written safe patient handling program with lift equipment, provide dementia behavior-de-escalation and assault-prevention training, strengthen infection control and vaccination policies, maintain thorough incident documentation, and work with a PEO or broker to correct classifications and pursue experience-rating improvements.
Quick Facts
- Class Code
- 8851
- Classification
- Congregate Living Facilities – Elderly
- Pure Premium Rate
- $3.529 / $100 payroll
- Effective Date
- September 1, 2026
- Source
- WCIRB Approved Filing
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