Dual Wage Disaster – WCIRB Considers Rate Threshhold Increases
If you’re a subcontracting company for excavation, plastering, stucco and sewer construction, you may be seeing a huge increase in your Workers’ Comp premiums next year. Here’s why:
A proposed change to the dual wage classification system is going before the Governing Committee in August. If the insurance commissioner adopts the new classifications, then by January 1, 2014, you may want to think about raising your hourly wages.
The threshold is going to increase, and if your workers’ hourly wages don’t meet the higher classifications, then you’ll be paying higher premiums for Workers’ Compensation. Currently, the threshold is at $26, but if approved, the threshold will increase to $30 for all excavation construction workers. For plastering and stucco work, the hourly rate increase would increase from $25 to $27.
What this means for you is whether it’s higher premiums, or higher hourly wages, if these proposed changes pass, you’ll be paying more money to protect your workers. You can never be too prepared. If you’d like to discuss your options and which makes the most financial sense for you and your company, contact me today.
http://www.wcirb.com/site/search/Dual Wage Threshold