2026 Construction Dual Wage Threshold Update

The California Workers’ Compensation Insurance Rating Bureau (WCIRB) has released the approved 2026 Construction Dual Wage Thresholds for eligible high- and low-wage construction classifications.  

The new thresholds take effect for policies renewing or starting on or after September 1, 2026. 

What this means for you: If employee wages fall above or below the applicable threshold, payroll may be assigned to different workers’ compensation classification rates. For some contractors, this could result in changes to workers’ compensation premiums beginning with their next policy period after September 1, 2026. 

Generally, payroll above the threshold is assigned to a lower-rated high-wage classification, while payroll below the threshold is assigned to a higher-rated low-wage classification. These rate differences are based on historical claim data showing that higher-wage employees tend to experience fewer and less severe workers’ compensation claims.

Now is a good time to review employee wage levels and identify any positions that may be impacted by the updated thresholds. Understanding these changes in advance can help you better anticipate workers’ compensation costs and avoid surprises at renewal or audit. 

Please see the updated threshold table below. 

This guide summarizes key elements of the California Workers’ Compensation Experience Rating Plan changes effective September 1, 2026. It is provided for informational purposes only and reflects our interpretation based on materials published by the WCIRB. This overview highlights select updates and is not a comprehensive description of all approved changes. It is not an official regulatory document and has not been reviewed or approved by the California Department of Insurance.