Construction Dual Wage Classifications
In California, some construction or erection operations that are large enough are classified based on the hourly wages paid. There are two classifications:
- One for workers paid below a certain hourly wage threshold.
- Another for those paid at or above the wage threshold.
These classifications, known as "dual wage" classifications, reflect the differences observed in claims costs for workers making below, or at and above, the designated wage thresholds. The Workers’ Compensation Insurance Rating Bureau of California (WCIRB) regularly reviews these classifications and adjusts the thresholds based on wage inflation for construction workers at or around the current threshold levels.
By understanding and utilizing dual wage classifications, businesses can better manage their workers’ compensation costs and ensure appropriate coverage for their workforce.