The Workers' Compensation Insurance Rating Bureau (WCIRB) has approved the recommended increase in hourly wage thresholds for all 16 construction dual wage classifications.
The increases range from $2 to $5 depending on the classification and will go into effect for policyholders renewing September 1, 2022 and thereafter. The chart below outlines the increases for each classification.
| Dual Wage Classifications | Existing Threshold | Approved Increase |
Approved Threshold |
| 5027/5028 Masonry | $28 | $4 | $32 |
| 5190/5140 Electrical Wiring | $32 | $2 | $34 |
| 5183/5187 Plumbing | $28 | $3 | $31 |
| 5185/5186 Automatic Sprinkler | $29 | $3 | $32 |
| 5201/5205 Concrete Work | $28 | $4 | $32 |
| 5403/5432 Carpentry | $35 | $4 | $39 |
| 5446/5447 Wallboard Installation | $36 | $2 | $38 |
| 5467/5470 Glaziers | $33 | $3 | $36 |
| 5474/5482 Painting Waterproofing | $28 | $3 | $31 |
| 5484/5485 Plastering or Stucco | $32 | $4 | $36 |
| 5538/5542 Sheet Metal Work | $27 | $2 | $29 |
| 5552/5553 Roofing | $27 | $2 | $29 |
| 5632/5633 Steel Framing | $35 | $4 | $39 |
| 6218/6220 Grading/Land Leveling | $34 | $5 | $39 |
| 6307/6308 Sewer Construction | $34 | $5 | $39 |
| 6315/6316 Water/Gas Mains | $34 | $5 | $39 |
With the continuing labor shortage in construction, employers have been doing everything possible to retain employees by offering richer benefits plans, pay increases and merit bonuses, when applicable. These approved wage classification increases could potentially push employers to extend additional pay raises to employees in an effort to minimize workers’ compensation premiums.
Rancho Mesa predicts that this information will become a major factor in payroll decisions based on overhead cost management and recommend this as a topic for discussion early, so that our clients and prospects can prepare.