There could be significant changes coming for a number of construction dual-classification codes that could see the threshold for the higher-wage workers jump by as much as $5 per hour.
Currently, 16 of the Workers’ Compensation Insurance Rating Bureau’s construction and erection class codes are divided into two separate classifications based on the hourly wage of the employees, and each of these classifications has a different advisory workers’ comp benchmark rate. Insurers use these benchmark rates as guideposts for setting their own rates.
Because lower-wage workers in these classes have considerably more workplace injuries and more severe injuries, the pure premium rates for these workers can sometimes be twice as high as those for high-wage workers.
For each of these classification pairs, a specific hourly wage threshold is used to determine whether the payroll and claims for an employee are assigned to the “high wage” or “low wage” classification. There are currently 16 pairs of dual-wage classifications.
The Rating Bureau’s Classification and Rating Committee is debating a proposal to increase the wage threshold for separating high- and low-workers in these codes, with three of the codes designated for increases of $5 per hour. It usually revisits these class codes every two years and the proposal, if eventually approved by the Rating Bureau’s governing committee and the state insurance commissioner would take effect Sept. 1, 2022.
Changes being considered
Here are the class-code changes that the Classification and Rating committee is considering:
Masonry (5027/5028) ― 2022 threshold: $32 per hour (+$4 from current threshold)
Current low-wage advisory rate: $8.18
Current high-wage advisory rate: $4.21
Electrical wiring (5190/5140) ― 2022 threshold: $34 (+$2)
Current low-wage advisory rate: $3.76
Current high-wage advisory rate: $1.45
Heating/Plumbing/Refrigeration (5183/5187) ― 2022 threshold: $31 (+$3)
Current low-wage advisory rate: $5.31
Current high-wage advisory rate: $2.36
Automatic sprinkler installation (5185/5186) ― 2022 threshold: $32 (+$3)
Current low-wage advisory rate: $4.57
Current high-wage advisory rate: $1.95
Concrete/Cement work (5201/5205) ― 2022 threshold: $32 (+$4)
Current low-wage advisory rate: $6.64
Current high-wage advisory rate: $4.23
Carpentry (5403/5432) ― 2022 threshold: $39 (+$4)
Current low-wage advisory rate: $10.03
Current high-wage advisory rate: $4.50
Wallboard application (5446)/5447) ― 2022 threshold: $38 (+$2)
Current low-wage advisory rate: $5.42
Current high-wage advisory rate: $2.65
Glaziers (5467/5470) ― 2022 threshold: $36 (+$3)
Current low-wage advisory rate: $7.62
Current high-wage advisory rate: $3.10
Painting/Waterproofing (5474/5482) ― 2022 threshold: $31 (+$3)
Current low-wage advisory rate: $8.09
Current high-wage advisory rate: $4.34
Plastering/Stucco work (5484/5485) ― 2022 threshold: $36 (+$4)
Current low-wage advisory rate: $9.98
Current high-wage advisory rate: $6.25
Sheet metal work (5538/5542) ― 2022 threshold: $29 (+$2)
Current low-wage advisory rate: $5.07
Current high-wage advisory rate: $2.52
Roofing (5552/5553) ― 2022 threshold: $29 (+$2)
Current low-wage advisory rate: $21.05
Current high-wage advisory rate: $8.14
Steel framing (5632/5633) ― 2022 threshold: $39 (+$4)
Current low-wage advisory rate: $10.03
Current high-wage advisory rate: $4.50
Excavation/Grading/Land leveling (6218/6220) ― 2022 threshold: $39 (+$5)
Current low-wage advisory rate: $5.10
Current high-wage advisory rate: $2.93
Sewer construction (6307/6308) ― 2022 threshold: $39 (+$5)
Current low-wage advisory rate: $6.98
Current high-wage advisory rate: $2.84
Water/Gas main construction (6315/6316) ― 2022 threshold: $39 (+$5)
Current low-wage advisory rate: $4.18
Current high-wage advisory rate: $3.70
Tags: Construction, dual wage, Leaders' Choice Insurance