Glossary · PA Workers' Comp

Class Code (Classification Code)

A 3–4 digit code assigned by the PCRB to each type of business operation, used to determine the loss cost (base rate) for workers' comp premiums.

Definition

A workers' compensation class code (or classification code) is a 3–4 digit number assigned by the PCRB to each type of work. It determines the loss cost applied to your payroll when calculating your premium. There are 632 class codes in Pennsylvania's PCRB filing.

Class Code Accuracy: Why It Matters and What Can Go Wrong

Class codes are assigned based on what employees actually do — not what industry the employer is in. A manufacturing company might have employees in multiple class codes: machine operators (a manufacturing code), forklift drivers (a warehousing code), and clerical staff (Code 953).

The importance of accurate classification cannot be overstated. If your employees are classified in a higher-rate code than they should be, you're overpaying. If they're under-classified, your carrier will reclassify them at audit and issue a surcharge.

Some codes are "A-Rated" — the PCRB does not file a standard loss cost, and the carrier manually underwrites and prices the risk. A-Rated codes are typically for very hazardous or unusual operations.