Classifying Automotive Repair Operations

The California Workers’ Compensation Uniform Statistical Reporting Plan—1995 (USRP) contains an Automotive Industry Group that includes 25 classifications. This e-newsletter reviews the significant distinctions between four of these automotive classifications that have some overlapping operations: 8389, Automobile or Truck Repair Facilities, 8393, Automobile or Truck Body Repairing and Painting, 8397, Automobile or Truck Transmission Repairing and Rebuilding, and 8388, Rubber Tire Dealers.

The broadest automotive repair classification, designated N.O.C. for not otherwise classified, is 8389, Automobile or Truck Repair Facilities:

8389 AUTOMOBILE OR TRUCK REPAIR FACILITIES – no retail gasoline sales – all employees – including estimators, service writers and customer service representatives – N.O.C.

This classification applies to the mechanical repair of motor vehicles, including but not limited to automobiles, trucks, buses, forklift trucks, golf carts, recreational vehicles and motor homes for other concerns on a fee basis. Operations include but are not limited to the repair of electrical systems, air-conditioning systems, engines, brakes, suspension systems, exhaust systems, engine tune-ups, smog checks and windshield or window repair or replacement. This classification does not apply if the operations include the sale of gasoline, the sale of rubber tires exceeds 10% of the total gross receipts, the operations primarily (over 50%) consist of transmission repair or rebuilding, or the operations do not include mechanical repair as described above. Refer to the Automotive Industry Group for a complete list of classifications applicable to automobile or truck service or repair facilities.

Towing, roadside assistance and freeway service patrol operations when conducted on vehicles not owned by the employer shall be separately classified as 7227, Automobile or Truck Towing, Roadside Assistance or Freeway Service Patrol.

“Roadside assistance” refers to services provided to the vehicle owner under an agreement with a third party (such as a motor club or law enforcement agency). Contemplated services include changing tires, jump-starting batteries, replacing batteries, supplying a small amount of gasoline or performing minor vehicle repairs such as reattaching ignition wires or battery cables. 

Classification 8389 applies to automotive mechanical repair facilities provided they: (1) do not sell gasoline, (2) do not sell tires exceeding 10% of gross receipts and (3) do not perform transmission repair or rebuilding as the primary operation.

Auto and truck body repair is classified as 8393, Automobile or Truck Body Repairing and Painting:

8393 AUTOMOBILE OR TRUCK BODY REPAIRING AND PAINTING – all employees including estimators, service writers and customer service representatives

This classification applies to body repair and painting of automobiles, trucks or buses, including outside body dent repair involving no painting, for other concerns on a fee basis. This classification includes mechanical repair operations that are performed in connection with the automobile, truck or bus body repair and painting operations.

Automobile, truck or bus service facilities at which the operations solely include painting automobile, truck or bus bodies and no body repairing is performed shall be classified as 9501(3), Painting – automobile or truck bodies.

Towing, roadside assistance and freeway service patrol operations when conducted on vehicles not owned by the employer shall be separately classified as 7227, Automobile or Truck Towing, Roadside Assistance or Freeway Service Patrol.

“Roadside assistance” refers to services provided to the vehicle owner under an agreement with a third party (such as a motor club or law enforcement agency). Contemplated services include changing tires, jump-starting batteries, replacing batteries, supplying a small amount of gasoline or performing minor vehicle repairs such as reattaching ignition wires or battery cables.

Auto body shops assigned to Classification 8393 are most commonly engaged in collision repair work. Vehicles that have been in a collision may require some related mechanical repair work, such as to replace a radiator or suspension component that was damaged in the collision, and this is included in Classification 8393. However, mechanical repair work that is not in connection with the body repair and painting operations is outside the scope of Classification 8393.

Automotive repair shops that specialize in transmission repair work are classified as 8397, Automobile or Truck Transmission Repairing and Rebuilding:

8397 AUTOMOBILE OR TRUCK TRANSMISSION REPAIRING AND REBUILDING – including removal and installation operations – all employees – including estimators, service writers and customer service representatives

This classification applies to facilities engaged primarily (over 50% of gross receipts) in the repair of automobile or truck transmissions for customers on a fee basis.

This classification does not apply to automobile or truck service or repair facilities or automobile or truck parts machining and rebuilding operations that are not primarily engaged in the repair and rebuilding of automobile or truck transmissions; such operations shall be assigned to the applicable Automotive Industry Group classification.

Both Classifications 8397 and 8389, Automobile and Truck Repair Facilities, can apply to employers engaged in a combination of general mechanical repair and transmission repair work, however, Classification 8397 applies when the repair of automobile or truck transmissions is the primary operation.

Classification 8388, Rubber Tire Dealers, applies to tire sellers:

8388 RUBBER TIRE DEALERS – wholesale or retail, or combined wholesale and retail – including inside salespersons, estimators, service writers, customer service representatives and cashiers; repairing and adjusting tires away from the premises; and accessories and spare parts departments

This classification also applies to automobile, truck or bus service or repair facilities at which the sale of rubber tires exceeds 10% of the total gross receipts. Automobile, truck or bus service or repair facilities at which the sale of rubber tires does not exceed 10% of the total gross receipts shall be assigned to the applicable Automotive Industry Group classification.

Recapping or retreading of tires shall be separately classified as 4420, Rubber Tire Recapping or Retreading.

Many employers that sell tires also install tires and perform mechanical repair work. Classification 8388 applies to automotive repair shops that sell a significant amount of tires, exceeding 10% of the total gross receipts. Automotive repair shops that sell an incidental amount of tires below this threshold are classified as 8389, Automobile and Truck Repair Facilities.