California Steel Framing Class Codes 5632 vs 5633 and the $46.00 Threshold

Sep 7

5 min read

Quick answer: 5632 vs 5633 in California

5632 is the low-wage code and 5633 the high-wage code for light-gauge steel framing. For policies incepting on or after September 1, 2026, the wage split moves from $41.00 to $46.00 per hour — a $5.00 jump, tied with carpentry for the largest of any California dual-wage trade. The approved pure premium rates effective 9/1/2026 are $12.075 for 5632 and $5.321 for 5633, so the low-wage code costs 127% more per $100 of payroll. Source: WCIRB Classification Search, codes 5632 and 5633, pure premium rates effective 9/1/2026. Verified September 7, 2026 by CPR Business Solutions.

Will we write it? Tell us the operation, the state, and roughly where the mod sits — we’ll come back within one business day with a straight answer: yes, no, or what we’d need to see. No ACORD, no loss runs, no obligation. Agents and business owners both welcome. Run it past us here.

The framers who just became low-wage

A steel framer earning $43.00 an hour was a high-wage employee under the old $41.00 threshold and was reported in 5633. From September 1, 2026 the threshold is $46.00, so the same person at the same wage doing the same work is now reported in 5632. Nothing about the risk changed. The cost did.

At a 1.00 mod over 2,000 hours, that employee’s workers’ comp goes from about $4,576 to about $10,384 — an increase of $5,808, or 127%. At a 1.75 mod the same worker goes from roughly $8,008 to $18,173. On a crew of ten framers in that wage band, at a 1.75 mod, that is about $100,000 of additional annual premium for no change in payroll. If a steel-stud renewal came back and nobody can work out why, this is very often the reason.

Which code is which

5633 — high wage. Structural framing of buildings using cold-formed, light-gauge steel studs and joists (#15 gauge or lighter) by employees whose regular hourly wage equals or exceeds $46.00.
5632 — low wage. The same operations for employees below $46.00, and for any employee whose wage the employer cannot verify with time records.
Incidental carpentry stays in. Interior trim, doors and cabinets, shingle roofing, and insulation installed by the same employer on new buildings or additions at the same job or location all stay in 5632/5633.

Rate history

5632 went from $10.930 (9/1/2024) to $11.330 (9/1/2025) to $12.075 (9/1/2026) — up 6.6% this cycle, below the 10.4% statewide advisory increase. The 5633 rate for 9/1/2026 is $5.321. Both figures are identical to carpentry 5403/5432, which shares the same $46.00 threshold — the two trades are rated as one exposure, they are just reported separately.

When the raise pays for itself

Per 2,000-hour employee at a 1.00 mod, raising to $46.00 from:

$43.00 — raise costs $6,000 in wages, premium falls $5,489. Net cost $511.
$44.00 — raise costs $4,000, premium falls $5,731. Net saving $1,731.
$45.00 — raise costs $2,000, premium falls $5,972. Net saving $3,972.
$45.50 — raise costs $1,000, premium falls $6,093. Net saving $5,093.

Break-even is about $43.23 per hour at a 1.00 mod, before payroll taxes on the raise. This is the widest gap in the construction table, so the raise pays across nearly a $3.00 band — wider than any other trade.

A worse mod lowers the break-even

0.90 mod — $43.48
1.00 mod — $43.23
1.25 mod — $42.63
1.50 mod — $42.05
1.75 mod — $41.51
2.00 mod — $41.00

At a 2.00 mod the break-even is exactly the old threshold: every framer who was high-wage last year should be at $46.00 this year. At a 1.75 mod a framer at $45.99 costs $55.71 an hour all-in; at $46.00 they cost $50.28 — $10,850 per FTE per year for one cent of wage. If the mod itself is the problem, that is a separate placement question.

Three classification carve-outs for steel framing

Wood framing is carpentry. 5632/5633 is limited to cold-formed light-gauge steel; wood framing is 5403/5432. Same threshold, same rates, different code — but a crew that does both needs time records by material or the whole exposure defaults to the low-wage code.
Roofing and concrete forms. Shingle roofing stays in steel framing only for the same employer on new construction or additions at the same location; everything else is 5552/5553. Making, erecting or stripping concrete forms goes to the appropriate concrete classification.
Wallboard is its own code. Hanging drywall on the studs you framed is 5446/5447, which carries a $45.00 threshold, not $46.00. Heavier structural steel erection is also separately classified.

What else lands on the same renewal

September 1, 2026 is a crowded date: all sixteen dual-wage thresholds move, the advisory pure premium level rises 10.4%, and the experience rating eligibility threshold goes to $11,700. For steel framing the threshold move alone is the biggest single factor. Pull the 5632/5633 payroll split on the expiring term versus the quoted term, and a list of employees within a few dollars of $46.00. That second list is where the decisions are.

One honest caveat

These are WCIRB approved pure premium rates — advisory benchmarks, not the rates any carrier charges. California is an open-rating state; every insurer files its own rates and applies its own schedule and experience modifications. The shape of the 5632/5633 gap holds across the market because the loss data underneath is the same, but the exact break-even for a given account depends on the carrier’s filed rates and the client’s mod. Run it on the real quote.

Steel framing class code FAQ

Is metal stud framing carpentry or steel framing in California?

Steel framing. Cold-formed, light-gauge steel studs and joists of #15 gauge or lighter are 5632/5633, not carpentry 5403/5432 — even though both pairs carry the same $46.00 threshold and, for 9/1/2026, identical pure premium rates. A crew that frames in both wood and steel needs payroll split by material with time records, or the whole exposure defaults to the low-wage code.

What is the 2026 dual-wage threshold for steel framers in California?

$46.00 per hour for policies incepting on or after September 1, 2026, up from $41.00. It is a $5.00 move, tied with carpentry for the largest of any California dual-wage trade.

Does drywall or insulation installed by a steel framer stay in 5632/5633?

Insulation and shingle roofing do, but only when the same employer that performs the steel framing installs them on new buildings or additions at the same job or location. Wallboard is separately classified under 5446/5447 with its own $45.00 threshold, and roofing done any other way is 5552/5553.

Placing California steel framing accounts

CPR Business Solutions is a wholesale workers’ compensation broker and MGA built around high-mod and hard-to-place accounts. If a framing client has just seen payroll reclassify from 5633 to 5632, has a mod above 1.50, or has been non-renewed after an audit, that is the account we want.

Call 714-928-3858 or email proposals@cprbrokers.com.