Class code 8742 is commonly associated with outside salespeople or collectors in workers’ compensation classification systems. Whether it applies depends on what the employee actually does, where the work is performed, and the classification rules in the applicable state.
iClass-code wording and rules can vary by state, and a familiar code number should not be assumed to apply to every employer or jurisdiction. Use this as a research starting point and confirm the final classification with the insurer, licensed agent or applicable rating authority.
What workers’ comp class code 8742 generally means
Code 8742 is commonly used for employees whose work is primarily outside sales or collection activity. In NCCI materials the phraseology is Salespersons or Collectors — Outside. California also recognizes an outside-sales Standard Exception classification under 8742.
What “outside sales” means for classification
The important distinction is the employee’s actual work. A salesperson who travels to customers and performs sales activity can be very different from a counter salesperson, delivery driver, installer, estimator or employee who also performs hands-on operational work. Those additional duties can change the appropriate class.
Why 8742 can be misclassified
8742 is a well-known low-hazard classification, which makes it tempting to apply based on a job title alone. Rating organizations have repeatedly noted that 8742 can be reclassified when the employer’s operations or the employee’s duties do not satisfy the applicable rule.
How 8742 differs from 8810
8810 generally relates to clerical office work, while 8742 generally relates to qualifying outside sales or collection duties. Both are often treated as Standard Exception classifications, but the eligibility tests are different and neither should be assigned solely because it produces a lower rate.
State differences matter
A code number that is familiar nationally may not be the correct code or phraseology in every jurisdiction. Start with the state where the employee works, describe the actual duties, and confirm the final classification with the insurer, licensed agent or rating authority.
Official resources
For California, the WCIRB Standard Exceptions guide explains outside-sales treatment. NCCI classification research also discusses Code 8742 and common reclassification patterns.
Class code 8742 FAQ
Does every salesperson qualify for class code 8742?
No. The employee’s actual duties, work location and state rules matter. Counter sales, delivery, installation, estimating or operational work can lead to a different classification.
Is 8742 a universal workers’ comp code?
No. It is a familiar code in many systems, but classification rules and code structures vary by state.
Can I choose 8742 because it has a lower rate?
No. Classification should follow the work and applicable rules. The final code should be confirmed by the insurer, licensed agent or rating authority.