Class Code 8874
Instrument Mfg–Electronic–Design; Computer Mfg-Design; Telecommunications Equip Mfg-Design; Audio/Video Products Mfg-Design; Integrated Circuit Mfg-Design
Class code 8874 covers design and engineering work for electronic instruments, computers, telecommunications gear, audio/video products and integrated circuits, including prototype assembly and lab testing. For California employers the approved pure premium rate is $0.042 per $100 of payroll, which establishes the base cost for workers' compensation exposure under this classification.
What Class Code 8874 Covers
This classification applies to firms whose primary activities are the design, engineering and development of electronic and computer hardware and integrated circuit products rather than large-scale production. Work includes schematic and PCB layout, prototype build and bench testing, device validation, firmware-hardware integration testing, and lab-based troubleshooting of telecommunications or audio/video equipment. Small-scale assembly of prototypes, use of test instruments (oscilloscopes, signal generators), and work in environmental test chambers or controlled labs are typical operations. Purely office-based software coding or clerical support may be classified differently, but employees who perform hands-on prototyping, soldering, or electrical testing generally fall under 8874.
Who It Applies To
- Electronics and hardware design firms doing PCB and prototype development
- Integrated circuit (IC) design groups with lab-based characterization and testing
- Telecommunications equipment design labs performing bench-level validation
- Audio/video product design studios that build and test prototype units
- Prototype technicians and bench engineers who assemble and debug boards
- R&D departments within manufacturers doing in-house design and lab testing
Common Job Duties
- Circuit and PCB schematic design and layout for prototypes
- Prototype assembly and hand soldering of components
- Bench testing, signal measurement and firmware/hardware integration
- Use and calibration of lab instruments (oscilloscopes, power supplies, spectrum analyzers)
- Environmental and compliance testing (temperature, vibration, EMI/EMC pre-checks)
- Failure analysis, rework, and component-level troubleshooting
- Documenting test results, maintaining BOMs, and coordinating with contract manufacturers
Common Injury Risks
Understanding the $0.042 Rate
The pure premium rate of $0.042 per $100 of payroll is the base cost actuaries approve to cover expected claims for this classification. To estimate payroll-based premium, divide total payroll by 100 and multiply by 0.042 (for example, $100,000 payroll yields $42 base premium). The final premium an employer pays will be adjusted by the insurer's schedule ratings, the employer's experience modification, state assessments, policy deductibles or retrospective plans, and accuracy of employee classification.
Cal/OSHA Compliance Requirements
Relevant Cal/OSHA requirements include Title 8 standards for electrical safety and safe use of power equipment, Control of Hazardous Energy (lockout/tagout) when servicing energized equipment, and the Hazard Communication standard requiring SDSs, labeling and employee training for solvents and fluxes. Employers must also address respiratory protection and ventilation for solder smoke and solvent fumes, provide appropriate PPE, and maintain injury and illness records under Cal/OSHA recordkeeping rules.
How Key HR Helps Employers Under Class Code 8874
A PEO like Key HR provides centralized workers' comp administration, class-code accuracy reviews, and focused loss-control services for electronics design labs — including electrical safety audits, soldering fume controls, ergonomics programs, and prototype-shop training. We handle claims management, return-to-work planning and OSHA-compliant training to help reduce claim frequency and lower long-term workers' comp costs while ensuring multi-state compliance.
Get a QuoteFrequently Asked Questions
If my company only does circuit and PCB design in an office, do we still use class 8874?
If employees are strictly office-based and do no hands-on prototyping or lab testing, they may be classified under a clerical or professional code instead. However, once staff assemble, solder, or bench-test prototypes in a lab environment, 8874 is typically appropriate. Classification should be confirmed with your insurer or WCIRB review; a PEO can help document duties and secure the correct code.
What practical steps reduce workers' comp claims for an electronics design lab?
Key steps include electrical safety training and lockout/tagout for test equipment, local exhaust or fume extraction at soldering stations, PPE for eye and hand protection, ergonomic bench design and job rotation to limit repetitive strain, chemical safety/HazCom programs with SDS access, and formal return-to-work protocols to reduce claim duration and severity.
Are prototype assemblers and test technicians covered under this code, and what Cal/OSHA records must we keep?
Yes — prototype assemblers and bench/test technicians who perform hands-on assembly and electrical testing are typically covered by 8874. Employers must maintain Cal/OSHA records including injury and illness logs (OSHA 300/301), training records for hazardous chemicals, respirator programs if used, equipment calibration and maintenance logs, and documentation of hazard assessments and corrective actions.
Quick Facts
- Class Code
- 8874
- Classification
- Instrument Mfg–Electronic–Design; Computer Mfg-Design; Telecommunications Equip Mfg-Design; Audio/Video Products Mfg-Design; Integrated Circuit Mfg-Design
- Pure Premium Rate
- $0.042 / $100 payroll
- Effective Date
- September 1, 2026
- Source
- WCIRB Approved Filing
Manage Workers' Comp Through a PEO
Key HR provides pay-as-you-go workers' comp for California employers — no large deposits, no audits, better rates.
Get a Quoteor call (800) 922-4133Ready to Simplify Workers' Comp for Class Code 8874?
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