Class Code: 8742

Per NCCI's Scopes Code Description:

Code 8742 is applied to outside salespersons or collectors. Since these employees are common to many businesses, they are considered to be Standard Exceptions. As such, they are classified to Code 8742 unless the classification applicable to their employment includes salespersons. Under the latter circumstance the outside salespersons or collectors are assigned to the classification that includes salespersons, not Code 8742.

Salespersons or collectors as defined in the Basic Manual are employees engaged in such duties away from the employer’s premises. Code 8742 is not available for employees who deliver merchandise. These employees are assigned to the driver’s classification applicable to the risk even though these employees may also collect or sell. If they deliver merchandise by walking or using public transportation, they are assigned to the governing classification.Judgment is necessary in assessing these employees’ duties for classification purposes since occasional courtesy deliveries of a nominal quantity of merchandise would not preclude them from being classified to Code 8742.

Analogy Assignments:

Employees or operations assigned by analogy to Code 8742 include:

•    Cotton classifiers exclusively engaged in inspecting and testing cotton samples at employers’ sampling rooms or away from the premises
•    Executive secretaries of Boy or Girl Scout councils who work in the office and travel
•    Fund-raising campaign managers or directors who travel
•    Process servers
•    Reporters and photographers employed by newspapers
•    Advertising or circulation solicitors employed by newspaper and magazine publishers
•    Scouts who recruit players for professional sports teams

Additional Applications and Information:

•    Code 8742 includes demonstration of products being sold when performed by salespersons included within the scope of Code 8742. However, the governing classification must be assigned to demonstrating salespersons when these operations are specifically included within the phraseology of a basic classification.
•    Businesses operating as escort services are additionally assigned to Code 8742. These employers furnish their clients with individuals who accompany the clients as escorts or dates on social outings.
•    Employees of firms that are in the business of performing meter reading services for entities such as utilities are classified to Code 8742. As evidenced by the individual classification footnote, meter readers employed by utilities are classified to the risk’s governing code. For example, the footnote to Code 7539—Electric Light or Power Co. specifically references that this classification includes meter readers.

Special Conditions:

•    When outside salespersons or collectors regularly and frequently perform duties at the premises of their employers, their total payroll is assigned to the highest rated classification representing any part of their work. This is in accordance with the Basic Manual. Again, judgment is required because outside employees will normally spend some time at the premises of their employers attending sales meetings, telephoning clients for appointments, turning in collections, and making out reports or occasionally performing emergency inside work, all of which are included within the scope of Code 8742.

Extra-Territorial Classification Guidelines:

The following material was developed by NCCI to be used as a guide by auditors and underwriters in the determination of premium for employers with extra-territorial employments where no carrier guidelines have been established for this purpose. Employees included in the following interpretation are employees who travel from state to state such as executives, salespersons, sales engineers, service representatives, supervisors, and other employees who travel for administrative purposes:

1.    If the employee lives in the same state as the headquarters from which business travel is conducted, the employee’s payroll should be assigned to the headquarters’ state.
2.    If the employee lives in a state different from that in which the headquarters is located, but business travel is conducted from the headquarters, the employee should be assigned to the headquarters’ state.
3.    If the employee is stationed in a state where there is no headquarters, and the employee conducts business travel from home for an out-of-state employer, the employee’s payroll shall be assigned to the employee’s state of domicile.

When a portion of the operations of a risk is insured in a monopolistic state fund, consideration must be given to the special rules and requirements that may exist in such cases.

Related Operations Not Classified to Code 8742:

•    Refer to Code 8748 for automobile salespersons.
•    Refer to Code 9410 for outside welfare workers employed by political bodies.


(N/A MA, TX)


U.S.O. activities performed by the Travelers’ Aid Society are classified to Code 8742.

Rate per $100. of Renumeration: $ 0.25

Construction Exemption Required: No