Safety Tidbit 4.26 - NAICS Codes

Safety Tidbit 4.26 – NAICS Codes

Reference:        U.S. Census Bureau – North American Industry Classification 2017

The North American Industry Classification System (NAICS) was adopted in 1997 as a replacement for the Standard Industrial Classification (SIC) system. The NAICS was developed by the USA, Canada, and Mexico to allow for comparability of business statistics among the different countries.

The NAICS is a six-digit hierarchical coding system that is updated every five years so, the most recent listing is 2017. The list begins with twenty, two-digit, top level sectors. The user then “drills” down into the pertinent sector until they arrive at the industry they are looking for, or, at least the closest one possible. 

Recently, I had a client contact me asking if a company’s NAICS code could change and how to record it on their OSHA 300A form. The client asked if there was some authority, they needed to contact to ensure they selected the right code. I explained that they are the best authority to determine what their primary business does and to select the NAICS code that best lines up with their main industry.  Since the client is completing the OSHA 300A, Summary of Injuries and Illnesses, they need to select the NAICS code for the establishment the 300A is relevant to. For instance, if their company has multiple establishments that conduct various parts of the overall process each may fall under a separate NAICS code.  

As validation, if OSHA ever inspects their establishment, they will want a copy of the OSHA 300A form and they will validate the NAICS code. Validating is the compliance officer asking what the primary business at the establishment is and using the U.S. Census Bureau’s NAICS code lookup tool to determine the right code. Which is exactly what the client did to begin with so the two should line up.

Hope this was helpful and thank you for reading my Safety Tidbits! Comments and questions are always welcome. ~ Bryan

P.S. If you have a new safety or health question, please let me know.