Who Sets Your Workers’ Comp Rates? NCCI and State Rating Bureaus
5 min read · Updated June 20, 2026
When you question a class code or an experience mod, the carrier often isn’t the one who set it. Workers’ comp runs on a system of rating bureaus, and knowing which one governs your state tells you where the rules — and the appeals — actually live.
What a rating bureau does
A rating bureau collects claims and payroll data across insurers, writes the class codes, recommends rates or loss costs, and calculates experience mods. Carriers then price their policies within that framework.
NCCI: most of the country
The National Council on Compensation Insurance (NCCI) provides this system for the majority of states. If you’re in an NCCI state, your codes and mod come from NCCI’s rules.
Independent-bureau states
Several states run their own independent rating bureaus instead — California, New York, New Jersey, Pennsylvania, and others. The concepts are similar, but the codes, rules, and dispute processes are state-specific, so don’t assume NCCI guidance applies there.
Monopolistic states
And in North Dakota, Ohio, Washington, and Wyoming, the state fund runs its own system entirely.
Why knowing your bureau matters
It determines your class codes, how your mod is computed, and where you challenge a misclassification. In NCCI and independent-bureau states you can often request a classification or rating review from the bureau itself — useful when an audit codes you wrong. How to dispute an audit →
General information for contractors, not insurance advice. The bureau and rules that govern your state determine specifics — confirm yours.
Frequently asked questions
What is NCCI?
The National Council on Compensation Insurance — the organization that collects data, writes class codes, and recommends rates and experience mods for most states.
Who sets workers’ comp rates and class codes?
In NCCI states, NCCI; in independent-bureau states like California, New York, and several others, a state-specific rating bureau; and in monopolistic states, the state fund. Carriers price within that framework.
Why does it matter which bureau covers my state?
It determines your class codes, how your experience mod is calculated, and the dispute or review process. Knowing your bureau tells you where to challenge a classification.
See your own exposure — free
Two free tools, no signup: estimate your audit surprise, and check whether your subs’ COIs actually protect you.
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