WCIRB Updates Bakery Classifications for California Employers

New WCIRB classification changes for baked goods manufacturers took effect September 1, 2025. Learn how retail vs. wholesale bakeries and restaurants are affected — and how Narvaez Insurance Services can help you stay compliant.

🥐 WCIRB Updates Bakery Classifications for California Employers

Attention bakery owners, café operators, and restaurant managers: major updates to California’s Workers’ Compensation classifications for baked goods manufacturing are now in effect as of September 1, 2025.

These changes, announced by the Workers’ Compensation Insurance Rating Bureau of California (WCIRB), follow a two-year study (2023–2025) of food and beverage manufacturing operations.

🔍 New Bakery Class Codes

1️⃣ Classification 2004 – Baked Goods Manufacturing (Wholesale)
Applies to businesses where more than 50% of gross receipts come from selling baked goods to other retailers, wholesalers, or commercial buyers.

2️⃣ Classification 2003 – Baked Goods Manufacturing (Retail)
Applies to businesses where more than 50% of gross receipts come from sales to the general public or baked goods transferred to retail locations owned by the same employer.
This includes grocery store bakery departments and retail bake shops.

🍞 What’s Covered

Both classifications include businesses that bake or produce:

• Bread, bagels, cakes, pastries, pies, empanadas, cookies, crackers

• Tortillas, doughnuts (baked or fried), corn or veggie chips

• Filled pasta (ravioli, tortellini, etc.)

The distinction lies in who your customers are and where your sales revenue comes from.

🍩 Doughnut Shops

• No seating available: Baking remains under 2003 (Retail), and counter operations can be separately classified as 8017(1) – Stores – Retail, if payroll records support both roles.

• With seating and food service: The operation falls under 9081(1) – Restaurants – N.O.C.

🍽 Restaurants with In-House Baking

Restaurants that bake for their own menu items or sister locations should pay close attention:

• If more than 50% of receipts come from baked goods used or sold at your own restaurant locations, you belong under the Food & Beverage Service Industry Group.

• If more than 50% of receipts come from wholesale customers, classify under 2004 (Wholesale Baking).

If your bakery and restaurant share a workspace without physical separation, the higher-rated class applies under WCIRB’s Multiple Enterprises rule.

💡 Why It Matters

Accurate classification directly affects your Workers’ Compensation insurance rates.
Misclassifying your business can lead to audit adjustments, fines, and premium back-charges.

Narvaez Insurance Services helps California food businesses— from artisan panaderías to large-scale distributors — stay compliant, protected, and properly classified.

📞 Get Expert Help

Need help understanding which classification applies to your operation?
We can review your setup and payroll to make sure your business is compliant.

👉 Schedule a free consultation at www.NarvaezIns.com

or call 707-927-3204707-927-3204 to speak with our commercial insurance specialists.