22 Aug Construction Dual-Wage Changes Ahead

AS INFLATION drives up wages in all sectors, nearly all of the workers’ compensation dual class codes for the construction sector will be increasing as of Sept. 1, 2022.

Insurance Commissioner Ricardo Lara in July approved the recommendation by the Workers’ Compensation Insurance

Rating Bureau of California to increase the wage thresholds for high-wage workers, who enjoy lower pure premium rates than those who are paid less. The new rates apply to all workers’ comp policies incepting on or after Sept. 1.

Dual-wage thresholds divide highand low-wage classifications in various construction industry sectors that havedifferent pay structures for workers and which have proven to have different workers’ comp injury rates and costs.

Statistically, higher-paid workers in a highwage classification are less likely to suffer an on-the-job injury, which in turn means that their employers will pay a lower rate.

On the other hand, the low-wage/high workplace injury rate tier of employee in the dual-wage classification means higher workers’ comp premium rates.