In California, some construction or erection operations that are large enough are split into two statistically credible classifications based on the hourly wages paid:

1. One classification is applied to workers paid below a certain hourly wage threshold.
2. The other classification is for those paid at or above the wage threshold.

These pairs of classifications are referred to as “dual wage” classifications. Dual wage classifications reflect the differences observed in claims costs for workers making below, or equal to and above, the designated wage thresholds.

The dual wage classifications are reviewed on a regular basis. The Workers’ Compensation Insurance Rating Bureau of California (WCIRB) reviews several sources of published wage information and adjusts the thresholds based on wage inflation for construction workers at or around the current threshold levels.