California Insurance Commissioner Ricardo Lara has approved an increase in hourly wage thresholds for all 16 construction dual-wage classifications.
The increases range from $1 to $4 depending on the classification and will go into effect for policyholders on their workers’ compensation policy renewal date on or after September 1, 2024. The chart below outlines the proposed increases for each classification.
| Dual Wage Classifications | Existing Threshold | Proposed Increase |
Proposed Threshold |
| 5027/5028 Masonry | $32 | $3 | $35 |
| 5190/5140 Electrical Wiring | $34 | $2 | $36 |
| 5183/5187 Plumbing | $31 | $1 | $32 |
| 5185/5186 Automatic Sprinkler | $32 | $1 | $33 |
| 5201/5205 Concrete Work | $32 | $1 | $33 |
| 5403/5432 Carpentry | $39 | $2 | $41 |
| 5446/5447 Wallboard Installation | $38 | $3 | $41 |
| 5467/5470 Glaziers | $36 | $3 | $39 |
| 5474/5482 Painting Waterproofing | $31 | $1 | $32 |
| 5484/5485 Plastering or Stucco | $36 | $2 | $38 |
| 5538/5542 Sheet Metal Work | $29 | $4 | $33 |
| 5552/5553 Roofing | $29 | $2 | $31 |
| 5632/5633 Steel Framing | $39 | $2 | $41 |
| 6218/6220 Grading/Land Leveling | $38 | $2 | $40 |
| 6307/6308 Sewer Construction | $38 | $2 | $40 |
| 6315/6316 Water/Gas Mains | $38 | $2 | $40 |
In light of the ongoing labor shortage within the construction industry, employers have been making a concerted effort to retain their workforce. This includes providing more comprehensive benefits packages, including higher wages, and merit-based bonuses when appropriate. As a result, these new wage classification increases may prompt employers to consider extending further salary increases to their employees, with the aim of reducing workers' compensation premiums.
To better understand these changes and plan for the impact this will have on your company, please call us at 619-937-0164 and ask to speak to a member of our construction group.