In California, a number of construction and erection operations are divided into two separate classifications based on the hourly wage of the employees and each of these classifications has a different advisory pure premium rate. 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.
Example – Classification 5185/5186, Automatic Sprinkler Installation
For workers engaged in the installation of an automatic sprinkler system whose hourly wage rate is less than $27.00 per hour, the appropriate classification is 5185, Automatic Sprinkler Installation – within buildings – including storage and yard employees – employees whose regular hourly wage does not equal or exceed $27.00 per hour.
Workers whose hourly wage rate equals or exceeds $27.00 per hour are classified as 5186, Automatic Sprinkler Installation – within buildings – including storage and yard employees – employees whose regular hourly wage equals or exceeds $27.00 per hour.
Assignment of each high wage classification is subject to verification at the time of final audit that the employee’s regular hourly wage equals or exceeds the specified wage threshold. Payroll recordkeeping requirements for dual wage classifications are listed in the California Workers’ Compensation Uniform Statistical Reporting Plan—1995 at Part 3, Standard Classification System, Section IV, Special Industry Classification Procedures, Rule 2a.
You can learn more about dual wage classifications through these free resources available on wcirb.com:
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