California splits many construction trades into pairs of published classifications by each worker's regular hourly wage, with new thresholds for policies from September 1, 2026. Payroll at or above the line belongs in the higher-wage classification, usually rated lower, but only when hourly records by person show that wage.
Every Crew Deserves a Crown
Questions about your own policy? Call and talk it through with a licensed broker.
For certain construction work, the WCIRB publishes two classifications with the same description and one difference: the regular hourly wage of the employee. One classification takes payroll for employees paid under the threshold, the other for employees paid at or above it. The comparison is made person by person, using each worker's regular hourly rate, not a crew average or a yearly total.
Rates for the higher-wage side are usually lower for each dollar of payroll, in part because a well-paid crew produces more payroll for the same hours of work and risk. That is why records matter: payroll lands in the higher-wage classification only when the auditor can see the hourly rate that puts it there. Which pair fits at all is a question of the real work done, and the carrier makes that call.
| Work | Under the Threshold | At or Above the Threshold | Hourly Threshold |
|---|---|---|---|
| Carpentry | 5403 | 5432 | $46.00 |
| Light-gauge steel framing | 5632 | 5633 | $46.00 |
| Wallboard installation | 5446 | 5447 | $45.00 |
| Excavation and grading | 6218 | 6220 | $45.00 |
| Electrical wiring | 5190 | 5140 | $40.00 |
| Masonry | 5027 | 5028 | $37.00 |
| Sheet metal work | 5538 | 5542 | $37.00 |
| Painting | 5474 | 5482 | $36.00 |
| Automatic sprinkler installation | 5185 | 5186 | $36.00 |
| Concrete or cement work | 5201 | 5205 | $36.00 |
| Plumbing | 5183 | 5187 | $35.00 |
Several of these numbers have parts, such as 5474(1) for painting and 5474(2) for waterproofing, and the part depends on the exact work. These thresholds apply to policies effective on or after September 1, 2026, and the WCIRB revises them over time. Official titles for each wage-split pair are listed among the California workers comp classifications by trade. Arizona and Nevada use a different classification system, and California codes don't carry over.
The wage split is one of the main things that moves money at audit; the workers comp audit records guide covers the rest of the audit and how to dispute a result.
Illustrative scenario
A drywall contractor in Sacramento pays two tapers above the wallboard threshold of $45.00 an hour and three newer hangers below it. Payroll runs hourly, with overtime on separate lines, so the tapers' payroll can be reported under the higher-wage wallboard classification and the hangers' under the lower-wage one. One hanger gets a raise past the line in the spring, and the dated raise moves that person's later hours to the higher-wage side. This example is illustrative; the carrier determines classification from the actual work.
Paying a Day Rate With No Hours
A flat day rate or a salary can be well above the threshold in practice, but without hours on record nobody can show the hourly wage. An auditor may then be unable to place that payroll in the higher-wage classification. If you pay by the day or the job, track hours too, and ask the carrier how it reads that pay.
For what happens after the policy period ends, browse the workers comp guides.
Send your trade, state and payroll, and a broker reviews the request. If you would rather talk first, leave a number.
Swipe or use the arrows for every answer.
The current WCIRB list covers carpentry, light-gauge steel framing, wallboard, excavation and grading, electrical wiring, masonry, sheet metal, painting, automatic sprinklers, concrete or cement work and plumbing. Some other construction classifications outside this site's trades also have wage splits. The carrier decides which one fits your workers, based on what they do.
The published wording compares each worker's regular hourly wage with the threshold, so the overtime premium typically isn't part of that comparison. Separately, the overtime premium is excluded from reported payroll only if your records break it out, so give it its own line.
Track hours anyway. The split turns on an hourly wage, and without hours an auditor may not be able to show that someone's pay reaches the threshold. Ask the carrier before the audit how it converts a day rate or salary for a wage-split classification.
Yes. Because the split is made person by person, an apprentice below the threshold and a journey-level worker above it can do the same work and still be reported under different classifications of the same pair, as long as records show each one's hourly rate.
No. California classifications and thresholds apply to California payroll only. Arizona and Nevada rate payroll under the NCCI system instead; this site doesn't list those codes, so ask the carrier how its classifications treat your work in those states.
3 official sources
Reviewed by David Gleason, Principal, on .
Next Level Experience. Insurance Done Right.
California wage-split classes run on hourly records, kept person by person.
Type a question or topic, like class codes or plumbers. Results appear as you type.
