NCCI class code 5516 covers FLAGGING SERVICE CONTRACTOR & DRIVERS within the Street or Road Construction all operations industry. This classification is used by insurance carriers to determine workers’ compensation premium rates based on the risk level associated with these job duties.
When employers report payroll under class code 5516, the premium is calculated by multiplying the total payroll (in hundreds of dollars) by the applicable rate for this classification. The rate varies by state, carrier, and the employer’s experience modification factor (EMR).
Class code 5516 supports the following insurance product types:
Workers’ Comp
Class code 5516 is a primary classification, meaning it directly describes the main business operations of an employer. Primary codes represent the core activity — what the business actually does.
A secondary (or standard exception) code describes support operations that exist in almost every business, like clerical work (8810) or outside sales (8742). These are assigned in addition to the primary code.
If your business primarily involves flagging service contractor & drivers, this code should be your governing classification — the one that applies to most of your payroll.
Your workers’ compensation premium for employees classified under code 5516 is calculated as:
Where the rate is determined by your state and carrier, and EMR (Experience Modification Rate) reflects your company’s claims history relative to similar businesses. A lower EMR means lower premiums.
Accurate classification is critical — misclassifying employees under the wrong code can result in overpayment or underpayment that gets corrected during an audit.
Class code 5516 (FLAGGING SERVICE CONTRACTOR & DRIVERS) is the right fit if your employees’ primary duties involve work described by this classification within the Street or Road Construction all operations industry.
Consider these factors when selecting your class code:
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