Workers’ Comp Class Codes & EMR Explained for Tulsa Employers

What Is a Workers’ Comp Class Code?

A workers’ comp class code is a numeric code assigned to your business based on the type of work your employees actually perform. It’s how insurers translate “what does this business do” into a specific, comparable risk category.

These codes are developed and maintained by the National Council on Compensation Insurance (NCCI), which sets standardized rating classifications used across most states, including Oklahoma.

Why Does My Class Code Matter So Much?

Your class code sets the base rate insurers use before any other adjustment is applied. A clerical office worker and a roofer performing the exact same job duties, on paper, might be classified under completely different codes with dramatically different base rates.

Example: Our team recently reviewed a Tulsa contracting business where several office employees, who never set foot on a job site, were classified under the same high-risk field code as the crew. Correcting the classification lowered the client’s workers compensation premium significantly without changing a single thing about their actual operations. Misclassification like this is one of the most common, and most fixable, cost issues we see.

How Are Workers’ Comp Class Codes Determined?

Class codes are assigned based on the primary duties of each employee, not their job title. Two employees with different titles doing the same physical work should generally carry the same class code.

Most Tulsa businesses carry more than one class code if they employ people in different roles. A contracting company, for example, often has one code for field crews and a separate, lower-rated code for office staff.

What Happens If My Business Is Misclassified?

Misclassification can push your premium significantly higher than it should be, or in the opposite case, lower than it should be, which creates a large bill at your year-end audit when the mistake is caught.

Class code accuracy matters at every renewal, not just at initial setup. As your business adds new roles or shifts responsibilities, your classifications should be reviewed to make sure they still reflect what your employees actually do.

What Is an Experience Modification Rate (EMR)?

Once your class code sets your base rate, your Experience Modification Rate adjusts that rate up or down based on your specific claims history. According to Insureon’s explanation of Experience Modification Ratings, an EMR functions similarly to a credit score. Instead of measuring financial habits, it measures your workplace safety record compared to similar businesses in your industry.

An EMR of 1.0 represents the industry average for your class and size. A rating below 1.0 means your business has a better-than-average claims history, and you pay less. A rating above 1.0 means a worse-than-average history, and you pay more.

How Is EMR Calculated?

EMR is calculated using your business’s claims history over the past three years, excluding the current policy year. NCCI or your state’s rating bureau compares your actual claims to what would be “expected” for a business of your size and industry classification.

This is why one bad year doesn’t sink your rates permanently, but it does typically affect your EMR, and your premium, for roughly three years afterward.

How Much Does EMR Actually Affect My Premium?

The impact is direct and often larger than business owners expect. An EMR of 1.25 means a business pays 25% more than the industry baseline for the same class code and payroll. An EMR of 0.80 means a 20% discount on that same baseline.

For a Tulsa contractor with a $100,000 base premium, the difference between an EMR of 0.85 and 1.25 can mean tens of thousands of dollars a year.

Why Do Some Tulsa Businesses Require a Specific EMR?

Many general contractors and commercial clients in Tulsa require subcontractors to maintain an EMR below 1.0, or below a specific threshold, before they’re even allowed to bid on a job. This makes your EMR more than just a pricing factor. It can directly determine which contracts your business is eligible for.

If your business bids on commercial or municipal work regularly, keeping your EMR low isn’t optional. It’s part of staying competitive.

How Can Tulsa Employers Lower Their EMR?

• Implement a documented safety program. Formal, OSHA-aligned safety programs reduce claim frequency, which is the biggest driver of a rising EMR.
• Use a return-to-work program. Getting injured employees back to modified duty faster shortens claim duration, which improves your EMR over time.
• Address small claims early. Frequent small claims often matter more to your EMR than a single large one, since frequency signals broader safety issues to insurers.
• Audit your class codes annually. Confirm that every employee’s classification still reflects their actual current duties.
• Dispute inaccurate claims. If a claim was recorded incorrectly, request a correction through your carrier before it affects your next EMR calculation.

How Does This Connect to My Overall Workers’ Comp Coverage?

Class codes and EMR are the two biggest levers behind your workers’ compensation premium, but they’re only part of the full picture. For a complete overview of coverage, requirements, and cost ranges for Tulsa employers, see our guide to workers’ compensation insurance in Tulsa.

If your business also carries general liability insurance in Tulsa or a Business Owner’s Policy, bundling those policies with your workers’ comp through the same carrier can sometimes unlock additional savings.

Why Choose Zoellner Insurance for Workers’ Comp in Tulsa?

Chuck and the Zoellner Insurance team review class code accuracy and EMR trends as a standard part of every workers’ comp policy we manage, not just at renewal. We help Tulsa employers understand exactly what’s driving their premium, and where there’s room to improve it.

Explore our full guide to business insurance in Tulsa, OK to see how workers’ comp fits into a complete commercial coverage plan.