California Dual-Wage Threshold Tracker (2026)
Updated: 2 days ago
Quick answer: California splits many construction class codes into a lower-rated high-wage code and a higher-rated low-wage code, divided by an hourly wage threshold set by the WCIRB. Effective September 1, 2026, 13 construction trades received increased thresholds — roofing is $33/hour, carpentry and steel framing $46, concrete $36, electrical $40, and so on. If an employee's average hourly wage is at or above the trade's threshold, that payroll can be written on the lower-rated high-wage code; below it, the higher-rated low-wage code applies. Landing in the wrong code, or failing to document wages, can swing premium by tens of thousands of dollars on the same payroll.
How the dual-wage split works
For each covered trade, every employee's regular hourly wage is tested against the threshold. At or above the threshold, the employee's payroll goes to the high-wage (lower-rated) code; below it, the low-wage (higher-rated) code. It is tested by employee, and if the hours or wages cannot be verified at audit, the low-wage (more expensive) code is assigned. Getting the split right — and provable with certified payroll — is often the single biggest lever on a California construction premium. See how it plays out for roofing, concrete 5201 vs 5205, and framing and carpentry.
Current thresholds — effective September 1, 2026
Each trade is listed as low-wage code / high-wage code — threshold. Pay at or above the threshold qualifies for the high-wage (lower-rated) code.
Roofing — 5552 / 5553 — $33/hour
Carpentry — 5403 / 5432 — $46/hour
Steel and light-gauge framing — 5632 / 5633 — $46/hour
Wallboard installation — 5446 / 5447 — $45/hour
Glaziers — 5467 / 5470 — $43/hour
Plastering and stucco — 5484 / 5485 — $42/hour
Electrical wiring — 5190 / 5140 — $40/hour
Masonry — 5027 / 5028 — $37/hour
Sheet metal and HVAC ductwork — 5538 / 5542 — $37/hour
Automatic sprinkler installation — 5185 / 5186 — $36/hour
Concrete and cement work — 5201 / 5205 — $36/hour
Painting and waterproofing — 5474 / 5482 — $36/hour
Plumbing, HVAC, and refrigeration — 5183 / 5187 — $35/hour
All 13 of these increased on September 1, 2026 (for example, roofing rose from $31 to $33, carpentry from $41 to $46, and electrical from $36 to $40).
Earthwork classifications: under WCIRB review
Three earthwork classifications were not part of the finalized September 1, 2026 increase — the WCIRB left them under review, so no new 2026 threshold was set and the prior threshold (commonly $45/hour in broker tables) may remain in effect. Confirm the current figure with the WCIRB before quoting these:
Excavation, grading, and land leveling — 6218 / 6220 — under review; confirm with WCIRB
Sewer construction — 6307 / 6308 — under review; confirm with WCIRB
Water and gas mains and connections — 6315 / 6316 — under review; confirm with WCIRB
Why the thresholds change every September 1
The WCIRB reviews the dual-wage thresholds annually, and approved changes take effect for policies incepting or renewing on or after September 1. Thresholds have climbed steadily — carpentry, for instance, moved from $41 to $46 for 2026. Re-check the number at every renewal, because a threshold that rises can push a contractor who qualified for the high-wage code last year into the more expensive low-wage code this year if their wages did not keep pace. And remember the audit rule: bill a job as high-wage but fail to document that the average wage cleared the threshold, and the auditor reclassifies that payroll down to the low-wage code and bills the difference.
How CPR helps with California dual-wage placements
CPR Business Solutions is a workers' comp MGA and wholesaler specializing in high-mod and hard-to-place California construction. We verify the dual-wage split and confirm the wage documentation supports the high-wage code before binding, so there is no audit surprise a year later — and we place the high-mod roofing, framing, and concrete accounts standard carriers decline.
Frequently asked questions
What is the California dual-wage threshold for roofing in 2026?
Effective September 1, 2026, the roofing dual-wage threshold is $33 per hour, up from $31. Roofing payroll paid at or above $33/hour can be written on high-wage code 5553; payroll below $33/hour falls to the higher-rated low-wage code 5552. Certified payroll must support the high-wage code, or an auditor reclassifies it down.
What is the 2026 carpentry dual-wage threshold in California?
The carpentry threshold rose to $46 per hour effective September 1, 2026, up from $41. Crews averaging $46/hour or more can qualify for high-wage code 5432; those below fall to low-wage code 5403, which carries a much higher rate. Steel and light-gauge framing (5632/5633) share the same $46 threshold.
Do the dual-wage thresholds change every year?
Yes. The WCIRB reviews them annually, and changes take effect each September 1 for policies incepting or renewing on or after that date. Thirteen construction trades increased for 2026. Re-check the current threshold at every renewal, because a rising threshold can move a contractor into the more expensive low-wage code if wages did not keep pace.
What happens if I can't prove the average wage at audit?
If the hours or wages supporting the high-wage code cannot be verified, the auditor assigns the low-wage (higher-rated) classification and bills the difference — often a five- or six-figure surprise. Keep certified payroll records that document each employee's average hourly wage relative to the trade's threshold.
Get a California dual-wage workers' comp quote
Not sure which side of the threshold your crew falls on, or getting a dual-wage account declined? Send your submission to proposals@cprbrokers.com or call 714-928-3858 (office 704-256-5945).
