Workers comp rates for code 6704: Railroad Operation - shop work

What does NCCI class code 6704 cover?

Class code 6704 classifies employees performing Railroad Operation - shop work, also known as Locomotive repair, Rail car maintenance. The NCCI classification system groups occupations by similar workplace exposure, loss-experience patterns, and operational characteristics. Code 6704 falls within the transportation industry group and is filed in 32 states.

NCCI's governing classification rules state that a single-classification employer with at least 51% of payroll in this occupation generally classifies all employees under code 6704, with two standard exceptions: clerical office work (segregated payroll records required, reported under code 8810) and outside sales / collectors (code 8742). If your operation has multiple distinct activities, ask your underwriter about a multi-class split before accepting a single-code rating.

Why rates for code 6704 vary so widely across states

The rate spread for code 6704 is 11.1× from cheapest to most expensive ($0.507 in Washington to $5.64 in Minnesota). This isn't randomness, it reflects each state's claim experience for the occupation over the most-recent 5-year window NCCI uses, medical inflation in that state's hospital/clinic market, indemnity (lost-wage) cost levels driven by state maximum weekly benefit caps, and rating-bureau methodology. Independent-bureau states (California's WCIRB, New York's NYCIRB, Pennsylvania's PCRB, New Jersey's NJCRIB, Massachusetts's WCRIBMA, Delaware's DCRB, Wisconsin's WCRB, North Carolina's NCRB, Texas's TDI) often diverge significantly from NCCI's national pure premium, sometimes by 30% or more on the same occupation. Monopolistic-fund states (Ohio, North Dakota, Washington, Wyoming) don't allow private carrier competition, so the state fund's pricing is the only available option.

How to use this code 6704 rate data

1. Benchmark your carrier quote. A carrier quoting code 6704 above the $2.93 75th-percentile rate is asking for a premium-rated quote, push back or get a second quote.
2. Identify the right state filing. Use the table below to find your state's filed rate. If your carrier is quoting at a higher rate, the difference is either schedule debit, EMR, deductible loading, or a state-fund surcharge, ask which.
3. Calculate your effective rate. Effective rate = base rate × EMR ± schedule credit/debit ± deductible loading. Two carriers quoting code 6704 at the same base can vary 30%+ on effective rate after these adjustments.
4. Consider lower-rate states if locationally flexible. For code 6704, Washington ($0.507) is 91% cheaper than Minnesota ($5.64). Multi-state employers split payroll by state-of-work, not state-of-headquarters, so locating the high-payroll site in a cheaper state directly lowers premium.
5. Build a 3-year EMR strategy. A 0.85 EMR cuts base rate by 15%; the difference between 0.85 and 1.25 EMR on the same code is a 47% premium difference. Frequency control (preventing every claim, even small ones) drives EMR more than severity control.