In California, a number of construction and erection classifications are divided into two separate classifications based on the hourly wage of the employee assigned to the classification and each of these classifications has a different advisory pure premium rate. For each of these classification pairs, there is a specific hourly wage threshold used to determine whether the payroll and claims for an employee is assigned to the "high wage" or "low wage" classification. There are currently sixteen of these "dual wage" classifications.
Example - Automatic Sprinkler Installation
For workers engaged in the installation of an automatic sprinkler system whose hourly wage rate is less than $27.00 per hour, the appropriate classification is 5185, Automatic Sprinkler Installation – within buildings – less than $27.00. Workers whose hourly wage rate equals or exceeds $27.00 per hour are classified as 5186, Automatic Sprinkler Installation - within buildings – equals or exceeds $27.00.
As part of its administration of the Standard Classification System in California, the WCIRB studies these dual wage classifications periodically and recommends changes in the wage thresholds when appropriate. Proposed changes are included in a WCIRB Regulatory Filing that is then presented to the California Insurance Commissioner for approval.
The WCIRB makes a number of free resources available to help you find the current dual wage threshold or the correct classification:
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