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NCCI class code 7228: trucking, local hauling (rates, owner-operators, exclusions)

Workers compensation class code 7228 covers local trucking and hauling within a 200-mile radius. Median rate $5.10 to $9.60 per $100 of payroll. Owner-operator and 1099 driver classification rules vary substantially by state.

Published January 14, 2025 · 7 min read

NCCI class code 7228: trucking, local hauling

NCCI class code 7228 covers local trucking and hauling operations, typically within a 200-mile radius of the terminal. The median rate across our 25-state dataset runs approximately $5.10 to $9.60 per $100 of payroll. This page covers what 7228 includes, the owner-operator classification problem, the 1099-versus-employee misclassification trap, and how 7228 differs from long-haul code 7229.

What 7228 includes

The NCCI Scopes Manual phraseology for 7228 covers local trucking and hauling operations:

Drivers: local-haul drivers operating company vehicles
Helpers and loaders: crew assisting with loading and unloading
Dispatchers: when their work is integrated with the hauling operation
Mechanics: in-house maintenance staff for the fleet (some states carve this to a separate auto-repair code)
Yard workers: terminal yard staff handling staging, loading, and equipment movement

The 200-mile radius is a guideline, not a strict cutoff. Some states allow 7228 for routes that exceed 200 miles if the driver returns home each night. Other states require strict adherence to the 200-mile rule and reclassify any longer routes to 7229. Check your state’s specific filing.

What 7228 excludes

The common exclusions:

Long-haul trucking (NCCI 7229). Over-the-road operations, typically with overnight stays away from terminal. Rates run 15% to 25% higher than 7228.
Garbage and refuse collection. Most states have a separate, higher-rated code (often around 9403) for refuse collection due to combination exposures (loading, lifting, vehicle).
Hazardous-materials hauling. Hazmat-only fleets often carry separate, higher-rated codes due to exposure severity.
Owner-operator drivers. Genuine owner-operators who own their vehicle, contract independently with the carrier, and meet the state’s independent-contractor test are not covered by the carrier’s policy.

State-by-state rate range

Sample 7228 medians from our dataset [cells/cells-summary.json]:

Indiana: approximately $5.40 to $7.20
Texas: approximately $5.60 to $8.40
Illinois: approximately $6.20 to $9.10
Wisconsin: approximately $5.10 to $7.60
Florida: approximately $6.40 to $9.60

These are bureau loss costs before carrier LCM and modifiers.

The owner-operator classification problem

Trucking is the industry where the 1099-versus-employee distinction breaks the most policies. Three structural realities:

1. The federal vehicle-leasing rules support owner-operator status. FMCSA regulations (49 CFR 376) recognize the owner-operator-leased-to-carrier model. The carrier leases the vehicle from the owner-operator, the owner-operator drives the leased vehicle, and the owner-operator is paid per mile or per load. This is the standard model for a substantial portion of the trucking industry.

2. State workers comp tests do not always follow the federal model. Most states use a multi-factor common-law test or a statutory test (like California’s ABC) to determine whether the owner-operator is an employee for workers-comp purposes, regardless of FMCSA’s lease-recognition rules. The result: an owner-operator who is properly classified as 1099 for federal tax and FMCSA purposes can still be deemed an employee for workers comp.

3. The penalty for misclassification is substantial. California penalties reach $100,000 plus stop orders and potential criminal charges [state-facts/CA.json]. New York imposes fines up to $5,000 per 10-day period of non-compliance [state-facts/NY.json]. Texas, where coverage is optional, still applies the common-law test and an injured misclassified driver can sue in tort outside the comp framework [state-facts/TX.json].

The practical implication: trucking carriers operating in California, New York, Massachusetts, and other strict-test states need legal review of their owner-operator agreements before relying on the 1099 status.

For full coverage of the misclassification rules, see /articles/1099-vs-w2-workers-comp.

Common classification errors

The errors that trigger audit reclassifications for trucking carriers:

1. Local routes that exceed 200 miles classified under 7228. If actual routes regularly exceed 200 miles or include overnight stays, auditors reclassify to 7229 at the higher rate. The fix: maintain trip logs showing actual route mileage and overnight patterns.

2. Owner-operators audited as employees. When the operator-lease agreement does not satisfy the state’s independent-contractor test, auditors add the owner-operator’s payroll equivalent to the carrier’s policy at 7228 rates. The exposure can be catastrophic for high-volume carriers.

3. Helpers and loaders under 8810. Helpers and loaders who actively load and unload vehicles cannot be classified under 8810 (clerical). They belong in 7228 even if they spend part of the day in the office.

4. Mechanics under 7228 in states that require a separate auto-repair code. Some states require a separate auto-repair code (often around 8385 or a state-specific equivalent) for in-house mechanics. Misclassifying mechanics under 7228 can result in either over-payment or under-payment depending on the relative rates.

5. Yard workers under 7228 versus 8227 (warehouse). Some states separate yard work from on-the-road trucking. Yard workers who never drive on public roads may belong under a warehouse code (NCCI 8227 or state equivalent). Worth checking the state’s rule.

Loss drivers and what changes the rate

Three exposures drive the 7228 loss cost:

1. Vehicle accidents. Driver injuries from collisions, including catastrophic spinal and head injuries. The trucking industry’s overall accident rate translates directly to workers-comp losses through driver-injury claims.

2. Loading and unloading injuries. Back, shoulder, and knee injuries from manual material handling. High frequency, moderate severity. Pallet-jack and forklift training reduces frequency.

3. Slip-and-fall. Climbing in and out of cabs, walking on uneven yard surfaces, and getting in and out of trailer beds. Lower severity than accidents but high frequency.

Loss-control levers that move EMR favorably:

Documented driver-training program with annual refresher and CDL-renewal compliance tracking
DOT pre-employment screening, including drug-and-alcohol testing per FMCSA rules
Telematics fleet-monitoring with hard-braking, hard-cornering, and speed alerts
Loading-dock safety program and material-handling training
Light-duty return-to-work program for soft-tissue claims

7229 (trucking, long-haul / over-the-road): 15-25% higher rate; covers routes with overnight stays
7390 (truckmen, NOC): catch-all for trucking operations that do not fit 7228 or 7229; rate varies
8385 (auto-repair, garage): in-house mechanic operations; some states require this carve-out
8227 (warehouse, NOC): yard-only operations without driving on public roads
9403 (garbage collection): refuse-only fleets; substantially higher rate than 7228

Worked premium example

A local-trucking carrier in Texas with $1,200,000 annual payroll, all assigned to 7228 at a bureau rate of $6.40 per $100. Manual premium: $1,200,000 / $100 × $6.40 = $76,800. Apply carrier LCM of 1.50: $115,200. Apply EMR of 1.10 (one moderate prior-year claim): $126,720. No schedule credit applied (carrier underwriter found the driver-training program documentation inadequate): final policy premium $126,720.

The same carrier with EMR of 0.85 (three-year claim-free) and a 15% schedule credit for verified loss-control programs would produce: $76,800 × 1.50 × 0.85 × 0.85 = $83,232. Difference: about $43,000 per year, driven entirely by claim management and loss-control documentation.

This is a worked example for illustration only.

This is general information, not legal or insurance advice. Consult a licensed broker or attorney for your specific situation.

Frequently asked questions

What does class code 7228 cover?

Local trucking and hauling operations, typically within a 200-mile radius of the terminal. Covers driver, helper, loader, and dispatcher payroll for local-haul carriers. Long-haul trucking (over-the-road) is NCCI 7229. Garbage and refuse collection has its own code in most states.

What's the rate for code 7228?

Median rate across our dataset is approximately $5.10 to $9.60 per $100 of payroll. Driver-injury frequency drives the rate. State-specific rates vary by loss experience.

Are owner-operators classified under 7228?

Owner-operator drivers are classified differently than W-2 employee drivers. In most states, owner-operators are not employees of the carrier and do not require workers comp coverage from the carrier. The classification test is the state-specific employee test, not the FMCSA owner-operator definition.

Can 1099 drivers be excluded from workers comp?

Only if they are genuinely independent contractors under the state's classification test. California's AB 5 (ABC test) makes it nearly impossible to classify drivers as 1099. Most states use a multi-factor common-law test that focuses on right of control. Misclassification penalties are substantial.

How does 7228 differ from 7229?

7228 covers local hauling, typically within 200 miles. 7229 covers long-haul (over-the-road) trucking. 7229 typically rates 15% to 25% higher than 7228 due to greater driver-fatigue exposure and longer claim-development tails for catastrophic injuries.

Does 7228 cover the dispatcher and office staff?

Dispatchers are typically classified under 7228 because they support the active hauling operation. Pure office staff (accounting, sales, HR) who never interact with drivers in the dispatch process are typically classified under 8810 (clerical). The split must be supportable from job descriptions.