Each year, the WCIRB (Workers’ Compensation Insurance Rating Bureau) reviews and updates Minimum/Maximum Payroll requirements for Executive Officers & Owners and Dual Wage Thresholds. The following announcement is to keep you informed about key updates that could impact your workers’ compensation coverage.
The following changes will go into effect on September 1st:
For Executive Officers, Partners, Individual Employers and Members of a Limited Liability Company who are actively involved in business operations or who receive compensation, the WCIRB requires that their payroll be reported within specific minimum and maximum values for workers’ comp premium calculations, regardless of actual wages.
Accurate payroll estimates at renewal help reduce the chance of significant adjustments (additional premium owed or return premium due) during your year-end audit.
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.
Full details, including new and eliminated Classification and other important updates are available here: September 1, 2026 Regulatory Filing Quick Reference Guide: USRP and ERP Changes | WCIRB California. We encourage you to review these changes carefully and provide your best payroll estimates prior to each policy renewal to avoid potential discrepancies and additional costs. Should you have any questions or need assistance with your renewal, please do not hesitate to contact your Account Manager or Risk Advisor.
NOTE: These changes will go into effect for each policyholder on the renewal following 9/1/26.
Ensure your organization stays compliant with Medicare rules. Distribute the required Medicare Part D Creditable Coverage Notice to all Medicare-eligible participants by October 14, 2026 to help them avoid late enrollment penalties and meet federal requirements.
The temporary Medicare Part D premium stabilization subsidies are ending after 2026. As a result, some Medicare beneficiaries may see changes to their standalone Prescription Drug Plan (PDP) premiums and coverage options in 2027.
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What "covered" should feel like.
What "covered" should feel like.
What "covered" should feel like.
What "covered" should feel like.
What "covered" should feel like.
