Author, Sam Clayton, Vice President, Construction Group, Rancho Mesa Insurance Services, Inc.
In an effort to keep you informed, so that you can begin to budget for 2020, we wanted to let you know of a potential change in the dual wage classifications.
The Workers Compensation Insurance Rating Bureau is proposing an increase in the wage thresholds for over a dozen construction classifications. The proposed increases range from $1.00 to $3.00 per hour, to keep the thresholds in line with inflation. However these changes will have an immediate effect on your bottom line.
In the classes of business that are facing a $3 increase, this equates to a low of 9.3% to a high of 10.3%. See the chart below for the actual proposed changes. Not only will this have an impact on wages, payroll taxes, and your bottom line, it may also have an impact on your workers compensation premiums. If you find yourself in a situation where the wage increase isn’t practical, this will push those employees into the under classification which will have a substantially higher workers compensation rate. In either case, proactive planning will be required so you’re not caught unprepared.
Following are the individual classes and proposed changes:
Dual Wage Thresholds
|Classification||Current Threshold||Recommended Threshold||Threshold Difference||Last Changed|
|5185-5186 Fire Sprinkler||$27||$29||$2||2009|
|5446/5447 Wallboard Application||$34||$36||$2||2018|
|5484/5485 Plastering or Stucco Work||$29||$32||$3||2018|
|5538/5542 Sheet Metal Work||$27||$27||$0||2014|
|5632/5633 Steel Framing||$32||$35||$3||2018|
|6307/6308 Sewer Construction||$31||$34||$3||2018|
|6315/6316 Water/Gas Mains||$31||$34||$3||2018|
In an effort to help control workers compensation costs, we have developed several proprietary programs including the RM365 Advantage Safety Star Program™ and RM365 StatTrac™ that can help control these increases. Please reach out to me at email@example.com to ask any questions about the above or to learn more about our proprietary programs. We will reach back out once the decision on the above proposed changes is decided in order to help you prepare.