New Dual-Wage Threshold Workers’ Comp Changes Ahead

| posted in Blog, Newsletter

The Workers’ Compensation Insurance Rating Bureau of California will recommend dual-wage threshold changes to several construction classifications for the 2020 workers’ compensation policy year. The Bureau made the recommendations to the Department of Insurance during its annual rate filing in June. The recommendations for changes to these dual-wage classifications would have to be approved by the state insurance commissioner. While most workers’ comp classes have one rate, in some classes the difference in claims costs between high- and lower-wage workers is so great that a dual-wage classification is needed. In those cases, the workers above the threshold rate are assigned…
Read More

Construction Dual Wage Threshold Changes

| posted in Blog

For some construction classes, the Rating Bureau sets wage thresholds for which different rates apply due to significant differences claims and claims costs rates for workers who earn less and more than the threshold. Typically higher wage workers in these classes have fewer claims and less costly claims compared to their counterparts who are paid less than the threshold. The Rating Bureau updates the threshold when it notes changes in these costs. • Code 5190/5140 (Electrical wiring –within buildings): Threshold increases to $32 per hour from $30 per hour. • Code 5201(1)/5205(1) (Concrete or Cement Work – pouring or finishing…
Read More