Class code 8742: outside sales
Code 8742 covers salespeople and collectors who do that work away from the employer's premises. Like 8810, it is a standard exception, rated apart from your main class.
- SYSTEM
- NCCI numbering
- INDUSTRY
- Every industry
- WHERE
- NCCI states, Texas included
- PREMIUM ON
- Payroll in this class
Salespeople and collectors who work away from the employer's premises.
What work does code 8742 cover?
It applies to selling and collecting done outside the employer's location. It does not apply to employees who deliver merchandise, who use a vehicle to deliver or pick up goods even if they also sell, who travel between the employer's locations as district or regional managers without selling, or who measure or inspect job sites to price a construction contractor's bids. If your main class already includes outside salespeople, 8742 is not used.
Described in our own words from Minnesota's rating bureau manual. Minnesota has its own rating bureau, so NCCI's wording may differ. Wording and scope differ by state; the manual filed in your state decides.
Often confused with
Which pay counts toward code 8742 premium?
Premium is figured on payroll for the work in this class, and the rate is premium per $100 of it. What counts is set state by state. Minnesota's manual and Oregon's state fund, SAIF, both count employees' pre-tax deductions, such as 401(k) and Section 125 contributions, and both leave out the overtime premium, the extra half of time and a half (Minnesota requires records that show overtime pay by employee and by class). Check your state's rules. Minnesota and SAIF both count commissions; Minnesota names draws against commissions too.
Where does code 8742 apply?
NCCI is the rating bureau
These states have named NCCI their rating organization, so the code comes from NCCI's manual, with each state's exceptions.
Alabama, Alaska, Arizona, Arkansas, Colorado, Connecticut, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Mexico, Oklahoma, Oregon, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, West Virginia
Texas lists 8742 in its advisory loss costs effective July 1, 2026.
Own rating bureau: check its manual
An independent bureau sets the classes. Many numbers match NCCI's, but wording and scope can differ: Indiana's bureau files NCCI's manual with Indiana-specific codes, while Minnesota's publishes its own.
California, Delaware, Indiana, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Carolina, Pennsylvania, Wisconsin
State fund only
NCCI lists these as monopolistic states: workers' comp comes from the state fund, so ask the fund how it classes your work. Ohio's fund rates on NCCI classification codes; North Dakota, Washington and Wyoming use their own. Washington has its own risk classes and publishes hourly rates, so premium there follows hours worked, not payroll.
Sources: NCCI State Map: NCCI, independent bureau and monopolistic states; TDI: Texas advisory loss costs, effective July 1, 2026. Each state's rules and sources: Workers' comp by state.
Your payroll, your rate, before discounts and assessments.
Worklio Insurance bills pay-as-you-go comp with each payroll, no deposit; the audit usually confirms what you've already paid.
In North Dakota, Ohio, Washington and Wyoming, ask the state fund for your class and rate.
COMMON QUESTIONS
- Does a salesperson who delivers orders go in 8742?
- Not under Minnesota's rule. An employee who uses a vehicle to deliver or pick up goods goes to the business's driver class, even if they also sell or collect.
- Is code 8742 used in Texas?
- Yes. Texas lists 8742 in its advisory loss costs effective July 1, 2026. Those are loss costs, not rates: a carrier's rate adds its own expenses.
- How is the premium for code 8742 worked out?
- Your payroll in this class, divided by 100, times your carrier's rate for the class. Then your experience mod, any schedule credit or debit, and an expense constant if your policy has one. Premium discounts, state assessments and minimum premiums are separate.
SOURCES
- MWCIA: Minnesota Basic Manual, effective July 15, 2026
- TDI: Texas advisory loss costs, effective July 1, 2026
- NCCI State Map: NCCI, independent bureau and monopolistic states
- Indiana Compensation Rating Bureau: classification code rates and look-up
- SAIF (Oregon): wages and pay to report
- Washington L&I: risk classes for workers' compensation
- Washington L&I: rates for workers' compensation
For planning, not a quote or a classification ruling. An advisor confirms your class codes with your carrier.
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