The 2022 dual wage thresholds were just announced by the WCIRB. These will change effective 9/1/2022. If your policy is still in the middle of its term, this change will affect your next renewal. We recommend you review the thresholds annually and weigh the impact of raising hourly rate for any employees on the border of a class threshold.
WHAT IS DUAL WAGE?
In California many construction classifications are split into dual wage classifications, including a “high wage” and “low wage” class. The “high wage” classification usually has a much lower rate than the “low wage” classification.
WHY DO THE WAGE THRESHOLDS CHANGE?
Each year the Workers’ Compensation Insurance Rating Bureau (WCIRB) reviews the hourly wage threshold between “high wage” and “low wage” and can make adjustments in any class code to keep the thresholds in line with wage inflation.
WHY DO I CARE?
Many employers use this information to make sure their higher wage employees stay in the “high wage” classification to keep the lower work comp premiums. Sometimes employers will SAVE money by giving their employees a wage to move them into the higher wage class code.