California Workers’ Comp Class Codes: What Contractors Actually Pay
California workers comp is priced per $100 of payroll by trade class code, from about $1 for clerical to over $15 for roofing. Here is how the rating works and how to lower it.
California workers’ compensation is priced per $100 of payroll using the class code assigned to each type of work. Clerical payroll rates near $1 per $100, most skilled trades fall between $3.50 and $9, and roofing and framing commonly exceed $15 per $100. Your experience modification then adjusts that rate up or down based on claims history.
How the Math Actually Works
Take your annual payroll for a class code, divide by 100, and multiply by the rate. A contractor with $200,000 of payroll in a class rated at $6.00 per $100 pays roughly $12,000 before the experience modification is applied. That is why payroll classification, not the headline rate, is usually where money is won or lost.
Typical Rate Ranges by Trade
- Clerical and estimating: about $1.00 per $100 of payroll
- Handyman and small repair: $3.00–$7.00
- Electrical: $3.50–$7.50
- Plumbing: $4.00–$8.50
- General contracting: $4.50–$9.00
- Painting: $5.00–$11.00
- Roofing: $15.00–$32.00
The Experience Modification
An experience modification, often called an X-Mod, compares your losses to what is expected for your class codes and payroll size. Below 1.0 lowers your premium; above 1.0 raises it. Frequency of small claims tends to hurt the modification more than one large loss, which is why documented safety programs and prompt return-to-work matter more than contractors expect.
The Three Most Expensive Mistakes
- Letting uninsured subcontractors work, so their payroll is added to yours at audit
- Rating office and estimating payroll as field labor
- Failing to document return-to-work, which extends claims and worsens the modification
The Roofing Rule
California requires workers’ compensation for every C-39 roofing contractor, including sole proprietors with no employees. There is no exemption, and because the CSLB ties license status to workers’ compensation compliance, a lapse can suspend the license automatically.
Sources
- California Division of Workers’ Compensation — dir.ca.gov/dwc
- California Department of Industrial Relations — dir.ca.gov
- Contractors State License Board — cslb.ca.gov