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1 Workers Compensation Insurance Rating Bureau of California Workers Compensation Insurance Rating Bureau of California Report on Dual Wage Thresholds Separate Classifications by Wage Level Construction Industry Adjustments to Wage Thresholds Excerpt from the WCIRB Classification and Rating Committee Minutes July 27, 2010 About this Report The WCIRB prepares and presents reports to the WCIRB s Classification and Rating Committee to assist in the formulation of proposed changes to the Insurance Commissioner s regulations. Once adopted by the Classification and Rating Committee, the recommendations contained in the report are provided to the WCIRB Governing Committee and may be included in a WCIRB regulatory filing that is submitted to the Insurance Commissioner for approval. About the WCIRB The WCIRB is California's trusted, objective provider of actuarially-based information and research, advisory pure premium rates, and educational services integral to a healthy workers' compensation system. Learn more at

2 Notice This Report was developed by the Workers Compensation Insurance Rating Bureau of California (WCIRB) to assist in the formulation of proposed changes to the Insurance Commissioner s regulations. The WCIRB has made reasonable efforts to ensure the accuracy of this Report. You must make an independent assessment regarding the use of this Report based upon your particular facts and circumstances Workers Compensation Insurance Rating Bureau of California. All rights reserved. No part of this work may be reproduced or transmitted in any form or by any means, electronic or mechanical, including, without limitation, photocopying and recording, or by any information storage or retrieval system without the prior written permission of the Workers Compensation Insurance Rating Bureau of California (WCIRB), unless such copying is expressly permitted in this copyright notice or by federal copyright law. Each WCIRB member company, including any registered third-party entities, (Company) and agents and brokers licensed to transact workers compensation insurance in the state of California are authorized to reproduce any part of this work solely for the purpose of transacting workers compensation insurance and for no other purpose. This reproduction right does not include the right to make any part of this work available on any Website or on any form of social media. Workers Compensation Insurance Rating Bureau of California, WCIRB, WCIRB California, WCIRB Online, X-Mod Direct, escad and the WCIRB California logo (WCIRB Marks) are registered trademarks or service marks of the WCIRB. WCIRB Marks may not be displayed or used in any manner without the WCIRB s prior written permission. Any permitted copying of this work must maintain any and all trademarks and/or service marks on all copies. To seek permission to use any of the WCIRB Marks or any copyrighted material, please contact the Workers Compensation Insurance Rating Bureau of California, 525 Market Street, Suite 800, San Francisco, California

3 Changes in Dual Wage Classification Thresholds Separate Classifications by Wage Level -- Construction Industry Adjustments to Wage Thresholds The Committee was reminded that as part of an annual review of current wage and payroll limitations in the California Worker s Compensation Uniform Statistical Reporting Plan (USRP), the wage thresholds of the dual wage construction classifications have been reviewed to account for wage inflation and to ensure relative stability of constituencies within the du al construction classification pairs. In 2009, the Classification and Rating Committee recommended $1 increases in the dual wage thresholds. The Governing Committee reviewed these recommendations and during their discussion, several Governing Committee members suggested that (a) there have been significant w age reductions am ong both residential and com m ercial construction em ployers, (b) even longterm employees are being paid at wage rates below the current thresholds and (c) some unions are making significant wage concessions. In addition, given the current economic environment, Governing Committee members expressed concerns regarding the use of (a) prevailing wage data from the Department of Industrial Relations (DIR), which may be affected by political considerations and is not necessarily indicative of actual wage levels and (b) the UCLA construction wage index as the index reflects average construction wages and is not sensitive to shifts in the type of construction employment. As a result, the Governing Committee elected not to include any recommended increases to the thresholds in the January 1, 2010 pure premium rate filing. To determine the proper wage thresholds for the January 1, 2011 policy year, the Committee was provided information summarizing the current dual wage level classifications which showed that (a) the pure premium rate relativity between the low wage and high wage classifications ranges from 1.26 for electrical wiring to 2.61 for automatic sprinkler installation, and (b) despite regular increases to the dual wage thresholds, the percentage of payroll in the low wage classification has generally declined. The Committee was informed that following the implementation of the dual wage classifications, only four of the eighteen dual wage classifications had 40% or less of the total classification payroll in the low wage classification. Conversely, for policy year 2006, twelve of the dual wage classifications had 40% or less of its total payroll in the low wage classification. The Committee was also provided information about the distribution of payroll between the low and high wage classifications based on preliminary policy year 2007 data, which indicated that the proportion of policy year 2007 payroll in the low wage classification remains low for a number of dual wage classifications. The Committee was advised that staff had again reviewed several sources of wage inflation to project wage growth in these classifications. In the two years since the dual wage threshold was last increased in 2009, UCLA currently projects statewide average wages to grow by approximately 7.5% (3.8% in 2009 and 2.6% in 2011). Secondly, staff reviewed changes in average California annual construction wages as derived from UCLA projections of total construction wages and total construction employment. The projected UCLA average annual wage growth for construction in the two years since the threshold was last increased is approximately 12.5%. However, this may be artificially inflated inasmuch as construction job losses have been greatest for relatively low paid workers, such as in residential construction, which artificially increases the construction average wage. 1 W CIRB Calif ornia

4 The third source of wage information reviewed was data published by the DIR on prevailing wages. (Prevailing wages are based on collective bargaining agreements and other relevant sources and are used in awarding public contracts.) This information show ed steady increases in the wages for occupations corresponding to the dual wage classifications. Since the dual wage classification were established, increases in the applicable average prevailing wage range from more than $7 for plumbing to more than $17 for electrical wiring. In the last two years since the thresholds have been increased, average increases have ranged from $1.39 for painting to $3.60 for glaziers. Given the concerns expressed by the Governing Committee in 2009, WCIRB staff also reviewed several alternative sources of wage growth in California construction. The California Department o f Finance (DOF) forecasts the average annual wages in construction. The DOF projects annual wage growth in construction of approximately 2.2% in 2010 and 2.9% in 2011 or 5.2% for the two years since the threshold was last increased in While future forecasts of the measures are not available, the California Employment Development Department (EDD) publishes a summary of averages wages by sector based on the Occupational Employments Statistics Survey as developed by the Bureau of Labor Statistics (BLS). This source showed an average hourly wage increase of $0.73 or 3.1% for construction in 2009 (the most recent available published summary) relative to The increase in average hourly wage over the last two years is $1.81 or 8%. This information is also published at an individual occupation level. The average hourly wage for all published occupations corresponding to a dual wage classification, with the exception of the hourly wage for glaziers which did not show an increase, increased by more than $1 over the last two years. Many of these occupations showed increases of $2 or more over the last two years. At the request of the Committee, staff also reviewed changes in the median hourly wages by occupation from the BLS data. Staff noted that the two year change in the median wages by occupation were comparable to that shown by the BLS data on average hourly wage information. The Committee was informed that the WCIRB had received s from two employers asking that the wage thresholds for the dual wage construction classifications not be amended due to the current economic environment. During the Committee s discussions about the information and data submitted, one Committee member questioned whether the reason the data suggests that wages are increasing is because there are fewer low wage employees than in the past due to layoffs. Another member suggested that the increase in the relative share of governmental related construction projects could also be distorting the average wage data. Staff agreed that these issues could be impacting much of the published wage data being relied upon. However, it was also noted that the DIR data on prevailing wage would not be impacted by such shifts and that data also supports an increase in the dual wage thresholds. During its discussions, the Committee noted that all the sources of wage inflation reviewed support an increase in the threshold for the dual wage classifications. While the issues cited at the last Governing Committee meeting with respect to the impact of the recent economic turmoil and the measures used to measure wage inflation are still relevant, given that (a) it has been two years since the thresholds were last increased, (b) all the wage inflation measures reviewed support at least a $1 increase in the thresholds and (c) many of the dual wage classifications show a significant decline in the percentage of the total payroll written in the low wage classification the Committee voted 6 in favor and 1 opposed to recommend that the following proposed changes to the USRP be included in the next pure premium rate filing. In addition, the Committee asked staff to survey each of the dual wage classifications over the next few years to determine if it is still appropriate to split the classification and, if so, whether the established threshold continues to be optimal. 2 W CIRB Calif ornia

5 Proposed Changes to the Dual Wage Classification Thresholds Amend Classifications 5185/5186, Automatic Sprinkler Installation within buildings, to increase the hourly wage threshold from $27.00 per hour to $28.00 per hour to reflect wage inflation since the threshold was last amended in AUTOMATIC SPRINKLER INSTALLATION within buildings including storage and yard employees employees whose regular hourly wage does not equal or exceed $ per hour 5185 AUTOMATIC SPRINKLER INSTALLATION within buildings including storage and yard employees employees whose regular hourly wage equals or exceeds $ per hour employee s regular hourly wage equals or exceeds $ per hour. The payroll of an employee whose regular hourly wage is not shown to equal or exceed $ per hour shall be classified as 5185, Automatic Sprinkler Installation Amend Classifications 5645(1)/5697(1), Carpentry construction or remodeling of detached private residences for occupancy by one or two families, to increase the hourly wage threshold from $26.00 per hour to $27.00 per hour to reflect wage inflation since the threshold was last amended in CARPENTRY construction or remodeling of detached private residences for occupancy by one or two families including the construction of private garages and the installation of interior trim, builders finish, doors and cabinet work in connection with such structures employees whose regular hourly wage does not equal or exceed $ per hour This classification shall apply to the installation of shingle roofing and the installation or application of insulation materials in buildings or within building walls, but only if installed by the same employer who performs the carpentry work in constructing or remodeling private residences at the same job or location. All other roofing shall be separately classified. The making, erecting or stripping of forms in connection with concrete work shall be assigned to the appropriate concrete classification. 5645(1) 3

6 CARPENTRY construction or remodeling of detached private residences for occupancy by one or two families including the construction of private garages and the installation of interior trim, builders finish, doors and cabinet work in connection with such structures employees whose regular hourly wage equals or exceeds $ per hour employee s regular hourly wage equals or exceeds $ per hour. The payroll of an employee whose regular hourly wage is not shown to equal or exceed $ per hour shall be classified as 5645(1), Carpentry. This classification shall apply to the installation of shingle roofing and the installation or application of insulation materials in buildings or within building walls, but only if installed by the same employer who performs the carpentry work in constructing or remodeling private residences at the same job or location. All other roofing shall be separately classified. The making, erecting or stripping of forms in connection with concrete work shall be assigned to the appropriate concrete classification. 5697(1) Amend Classifications 5645(2)/5697(2), Carpentry construction or remodeling of dwellings not exceeding three stories in height, to increase the hourly wage threshold from $26.00 per hour to $27.00 per hour to reflect wage inflation since the threshold was last amended in CARPENTRY construction or remodeling of dwellings not exceeding three stories in height including the construction of private garages and the installation of interior trim, builders finish, doors and cabinet work in connection with such structures employees whose regular hourly wage does not equal or exceed $ per hour 5645(2) This classification shall apply only to structures designed primarily as family dwellings. It also shall apply to the installation of shingle roofing and the installation or application of insulation materials in buildings or within building walls, but only if installed by the same employer who performs the carpentry work in constructing dwellings not exceeding three stories in height at the same job or location. All other roofing shall be separately classified. Carpentry in connection with the construction or remodeling of detached private residences for occupancy by one or two families shall be separately classified as 5645(1), Carpentry, or 5697(1), Carpentry. The making, erecting or stripping of forms in connection with concrete work shall be assigned to the appropriate concrete classification. 4

7 CARPENTRY construction or remodeling of dwellings not exceeding three stories in height including the construction of private garages and the installation of interior trim, builders finish, doors and cabinet work in connection with such structures employees whose regular hourly wage equals or exceeds $ per hour employee s regular hourly wage equals or exceeds $ per hour. The payroll of an employee whose regular hourly wage is not shown to equal or exceed $ per hour shall be classified as 5645(2), Carpentry. This classification shall apply only to structures designed primarily as family dwellings. It also applies to the installation of shingle roofing and the installation or application of insulation materials in buildings or within building walls, but only if installed by the same employer who performs the carpentry work in constructing dwellings not exceeding three stories in height at the same job or location. All other roofing shall be separately classified. Carpentry in connection with the construction or remodeling of detached private residences for occupancy by one or two families shall be separately classified as 5645(1), Carpentry, or 5697(1), Carpentry. The making, erecting or stripping of forms in connection with concrete work shall be assigned to the appropriate concrete classification. 5697(2) Amend Classifications 5403/5432, Carpentry including the installation of interior trim, builders, finish, doors and cabinet work in connection therewith, to increase the hourly wage threshold from $26.00 per hour to $27.00 per hour to reflect wage inflation since the threshold was last amended in CARPENTRY including the installation of interior trim, builders finish, doors and cabinet work in connection therewith employees whose regular hourly wage does not equal or exceed $ per hour N.O.C. This classification shall apply to the installation of shingle roofing and the installation or application of insulation materials in buildings or within building walls, but only if installed by the same employer who performs the carpentry work in constructing new buildings or additions to existing buildings at the same job or location. All other roofing shall be separately classified. The making, erecting or stripping of forms in connection with concrete work shall be assigned to the appropriate concrete classification

8 CARPENTRY including the installation of interior trim, builders finish, doors and cabinet work in connection therewith employees whose regular hourly wage equals or exceeds $ per hour N.O.C. employee s regular hourly wage equals or exceeds $ per hour. The payroll of an employee whose regular hourly wage is not shown to equal or exceed $ per hour shall be classified as 5403, Carpentry. This classification shall apply to the installation of shingle roofing and the installation or application of insulation materials in buildings or within building walls, but only if installed by the same employer who performs the carpentry work in constructing new buildings or additions to existing buildings at the same job or location. All other roofing shall be separately classified. The making, erecting or stripping of forms in connection with concrete work shall be assigned to the appropriate concrete classification Amend Classifications 5201(1)/5205(1), Concrete or Cement Work pouring or finishing of concrete sidewalks, driveways, patios, curbs or gutters, to increase the hourly wage threshold from $24.00 per hour to $25.00 per hour to reflect wage inflation since the threshold was last amended in CONCRETE OR CEMENT WORK pouring or finishing of concrete sidewalks, driveways, patios, curbs or gutters including the making or stripping of forms employees whose regular hourly wage does not equal or exceed $ per hour 5201(1) CONCRETE OR CEMENT WORK pouring or finishing of concrete sidewalks, driveways, patios, curbs or gutters including the making or stripping of forms employees whose regular hourly wage equals or exceeds $ per hour employee s regular hourly wage equals or exceeds $ per hour. The payroll of an employee whose regular hourly wage is not shown to equal or exceed $ per hour shall be classified as 5201(1), Concrete or Cement Work. 5205(1) Amend Classifications 5201(2)/5205(2), Concrete or Cement Work pouring or finishing of concrete floor slabs, poured in place and on the ground for other than concrete buildings or structural steel buildings of multi-story construction, to increase the hourly wage threshold from $24.00 per hour to $25.00 per hour to reflect wage inflation since the threshold was last amended in

9 CONCRETE OR CEMENT WORK pouring or finishing of concrete floor slabs, poured in place and on the ground for other than concrete buildings or structural steel buildings of multi-story construction including the making or stripping of forms employees whose regular hourly wage does not equal or exceed $ per hour This classification also applies to the pouring or finishing of concrete foundations for private residences for occupancy by one or two families or other wood frame family dwellings not exceeding three stories in height and garages in connection with either. This classification does not apply to the pouring or finishing of any floors of concrete buildings, nor to the foundations or any concrete floors poured in place of structural steel buildings of multi-story construction. 5201(2) CONCRETE OR CEMENT WORK pouring or finishing of concrete floor slabs, poured in place and on the ground for other than concrete buildings or structural steel buildings of multi-story construction including the making or stripping of forms employees whose regular hourly wage equals or exceeds $ per hour employee s regular hourly wage equals or exceeds $ per hour. The payroll of an employee whose hourly wage is not shown to equal or exceed $ per hour shall be classified as 5201(2), Concrete or Cement Work. This classification also applies to the pouring or finishing of concrete foundations for private residences for occupancy by one or two families or other wood frame family dwellings not exceeding three stories in height and garages in connection with either. This classification does not apply to the pouring or finishing of any floors of concrete buildings, nor to the foundations or any concrete floors poured in place of structural steel buildings of multi-story construction. 5205(2) Amend Classifications 5190/5140, Electrical Wiring within buildings, to increase the hourly wage threshold from $28.00 per hour to $29.00 per hour to reflect wage inflation since the threshold was last amended in ELECTRICAL WIRING within buildings including installation or repair of fixtures or appliances shop and outside employees whose regular hourly wage does not equal or exceed $ per hour The installation of electrical machinery or auxiliary apparatus shall be separately classified

10 ELECTRICAL WIRING within buildings including installation or repair of fixtures or appliances shop and outside employees whose regular hourly wage equals or exceeds $ per hour employee s regular hourly wage equals or exceeds $ per hour. The payroll of an employee whose regular hourly wage is not shown to equal or exceed $ per hour shall be classified as 5190, Electrical Wiring. The installation of electrical machinery or auxiliary apparatus shall be separately classified Amend Classifications 6218(1)/6220(1), Excavation N.O.C., to increase the hourly wage threshold from $26.00 per hour to $27.00 per hour to reflect wage inflation since the threshold was last amended in EXCAVATION N.O.C. including borrowing, filling or backfilling employees whose regular hourly wage does not equal or exceed $ per hour Mass rock excavation, grading or excavation in connection with street or road construction, pile driving, shaft sinking, caisson or cofferdam work shall be separately classified. Trenching operations conducted by specialty contractors in connection with the construction of canals, irrigation systems, cross-country water pipelines, oil or gas pipeline construction or sewer construction shall be assigned to the corresponding construction classification. 6218(1) EXCAVATION N.O.C. including borrowing, filling or backfilling employees whose regular hourly wage equals or exceeds $ per hour employee s regular hourly wage equals or exceeds $ per hour. The payroll of an employee whose regular hourly wage is not shown to equal or exceed $ per hour shall be classified as 6218(1), Excavation N.O.C. Mass rock excavation, grading or excavation in connection with street or road construction, pile driving, shaft sinking, caisson or cofferdam work shall be separately classified. Trenching operations conducted by specialty contractors in connection with the construction of canals, irrigation systems, cross-country water pipelines, oil or gas pipeline construction or sewer construction shall be assigned to the corresponding construction classification. 6220(1) 8

11 Amend Classifications 6315(2)/6316(2), Gas Mains or Connections Construction including tunneling at street crossings, to increase the hourly wage threshold from $26.00 per hour to $27.00 per hour to reflect wage inflation since the threshold was last amended in GAS MAINS OR CONNECTIONS CONSTRUCTION including tunneling at street crossings employees whose regular hourly wage does not equal or exceed $ hour This classification shall not apply to the construction of pipelines between natural gas producing fields and points of connection with local distributing systems. Such cross-country pipeline construction shall be separately classified as 6233, Oil or Gas Pipeline Construction. All tunneling other than at street crossings shall be separately classified. 6315(2) GAS MAINS OR CONNECTIONS CONSTRUCTION including tunneling at street crossings employees whose regular hourly wage equals or exceeds $ per hour employee s regular hourly wage equals or exceeds $ per hour. The payroll of an employee whose regular hourly wage is not shown to equal or exceed $ per hour shall be classified as 6315(2), Gas Mains or Connections Construction. This classification shall not apply to the construction of pipelines between natural gas producing fields and points of connection with local distributing systems. Such cross-country pipeline construction shall be separately classified as 6233, Oil or Gas Pipeline Construction. All tunneling other than at street crossings shall be separately classified. 6316(2) Amend Classifications 5467/5470, Glaziers away from shop, to increase the hourly wage threshold from $26.00 per hour to $27.00 per hour to reflect wage inflation since the threshold was last amended in GLAZIERS away from shop employees whose regular hourly wage does not equal or exceed $ per hour 5467 GLAZIERS away from shop employees whose regular hourly wage equals or exceeds $ per hour employee s regular hourly wage equals or exceeds $ per hour. The payroll of an employee whose regular hourly wage is not shown to equal or exceed $ per hour shall be classified as 5467, Glaziers

12 Amend Classifications 6218(2)/6220(2), Grading Land N.O.C., to increase the hourly wage threshold from $26.00 per hour to $27.00 per hour to reflect wage inflation since the threshold was last amended in GRADING LAND N.O.C. including borrowing, filling or backfilling employees whose regular hourly wage does not equal or exceed $ per hour Mass rock excavation, grading or excavation in connection with street or road construction, pile driving, shaft sinking, caisson or cofferdam work shall be separately classified. Trenching operations conducted by specialty contractors in connection with the construction of canals, irrigation systems, cross-country water pipelines, oil or gas pipeline construction or sewer construction shall be assigned to the corresponding construction classification. 6218(2) GRADING LAND N.O.C. including borrowing, filling or backfilling employees whose regular hourly wage equals or exceeds $ per hour employee s regular hourly wage equals or exceeds $ per hour. The payroll of an employee whose regular hourly wage is not shown to equal or exceed $ per hour shall be classified as 6218(2), Grading Land. Mass rock excavation, grading or excavation in connection with street or road construction, pile driving, shaft sinking, caisson or cofferdam work shall be separately classified. Trenching operations conducted by specialty contractors in connection with the construction of canals, irrigation systems, cross-country water pipelines, oil or gas pipeline construction or sewer construction shall be assigned to the corresponding construction classification. 6220(2) Amend Classifications 6218(3)/6220(3), Land Leveling grading farm lands, to increase the hourly wage threshold from $26.00 per hour to $27.00 per hour to reflect wage inflation since the threshold was last amended in LAND LEVELING grading farm lands employees whose regular hourly wage does not equal or exceed $ per hour 6218(3) LAND LEVELING grading farm lands employees whose regular hourly wage equals or exceeds $ per hour employee s regular hourly wage equals or exceeds $ per hour. The payroll of an employee whose regular hourly wage is not shown to equal or exceed $ per hour shall be classified as 6218(3), Land Leveling. 6220(3) 10

13 Amend Classifications 5027/5028, Masonry employees whose regular hourly wage does not equal or exceed $24.00 per hour, to increase the hourly wage threshold from $24.00 per hour to $25.00 per hour to reflect wage inflation since the threshold was last amended in MASONRY employees whose regular hourly wage does not equal or exceed $ per hour N.O.C. This classification does not apply to masonry work in connection with 6307, Sewer Construction, or 6308, Sewer Construction MASONRY employees whose regular hourly wage equals or exceeds $ per hour N.O.C. employee s regular hourly wage equals or exceeds $ per hour. The payroll of an employee whose regular hourly wage is not shown to equal or exceed $ per hour shall be classified as 5027, Masonry. This classification does not apply to masonry work in connection with 6307, Sewer Construction, or 6308, Sewer Construction Amend Classifications 5474(1)/5482(1), Painting, Decorating or Paper Hanging including shop operations, to increase the hourly wage threshold from $24.00 per hour to $25.00 per hour to reflect wage inflation since the threshold was last amended in PAINTING, DECORATING OR PAPER HANGING including shop operations employees whose regular hourly wage does not equal or exceed $ per hour N.O.C. Painting steel structures or bridges shall be separately classified. 5474(1) 11

14 PAINTING, DECORATING OR PAPER HANGING including shop operations employees whose regular hourly wage equals or exceeds $ per hour N.O.C. Assignment of this classification is subject to verification at the time of final audit that the employee s regular hourly wage equals or exceeds $ per hour. The payroll of an employee whose regular hourly wage is not shown to equal or exceed $ per hour shall be classified as 5474(1), Painting, Decorating or Paper Hanging. Painting steel structures or bridges shall be separately classified. 5482(1) Amend Classifications 5474(3)/5482(3), Painting oil or gasoline storage tanks, to increase the hourly wage threshold from $24.00 per hour to $25.00 per hour to reflect wage inflation since the threshold was last amended in PAINTING oil or gasoline storage tanks including shop operations employees whose regular hourly wage does not equal or exceed $ per hour 5474(3) PAINTING oil or gasoline storage tanks including shop operations employees whose regular hourly wage equals or exceeds $ per hour Assignment of this classification is subject to verification at the time of final audit that the employee s regular hourly wage equals or exceeds $ per hour. The payroll of an employee whose regular hourly wage is not shown to equal or exceed $ per hour shall be classified as 5474(3), Painting. 5482(3) Amend Classifications 5484/5485, Plastering or Stucco Work employees whose regular hourly wage does not equal or exceed $25.00 per hour, to increase the hourly wage threshold from $25.00 per hour to $26.00 per hour to reflect wage inflation since the threshold was last amended in PLASTERING OR STUCCO WORK employees whose regular hourly wage does not equal or exceed $ per hour

15 PLASTERING OR STUCCO WORK employees whose regular hourly wage equals or exceeds $ per hour Assignment of this classification is subject to verification at the time of final audit that the employee s regular hourly wage equals or exceeds $ per hour. The payroll of an employee whose regular hourly wage is not shown to equal or exceed $ per hour shall be classified as 5484, Plastering or Stucco Work Amend Classifications 5183(1)/5187(1), Plumbing shop and outside, to increase the hourly wage threshold from $24.00 per hour to $25.00 per hour to reflect wage inflation since the threshold was last amended in PLUMBING shop and outside gas, steam, hot water or other pipe fittings installation, including house connections installation employees whose regular hourly wage does not equal or exceed $ per hour N.O.C. Automatic sprinkler installation, within buildings, shall be separately classified. 5183(1) PLUMBING shop and outside gas, steam, hot water or other pipe fittings installation, including house connections installation employees whose regular hourly wage equals or exceeds $ per hour N.O.C. Assignment of this classification is subject to verification at the time of final audit that the employee s regular hourly wage equals or exceeds $ per hour. The payroll of an employee whose regular hourly wage is not shown to equal or exceed $ per hour shall be classified as 5183(1), Plumbing. Automatic sprinkler installation, within buildings, shall be separately classified. 5187(1) Amend Classifications 5183(2)/5187(2), Plumbing shop and outside, to increase the hourly wage threshold from $24.00 per hour to $25.00 per hour to reflect wage inflation since the threshold was last amended in REFRIGERATION EQUIPMENT not household units installation, service and repair shop and outside employees whose regular hourly wage does not equal or exceed $ per hour N.O.C. Delivery and connection of household refrigeration on purchaser s premises shall be separately classified as 9519(1), Household Appliances. 5183(2) 13

16 REFRIGERATION EQUIPMENT not household units installation, service and repair shop and outside employees whose regular hourly wage equals or exceeds $ per hour N.O.C. employee s regular hourly wage equals or exceeds $ per hour. The payroll of an employee whose regular hourly wage is not shown to equal or exceed $ per hour shall be classified as 5183(2), Refrigeration Equipment. Delivery and connection of household refrigeration on purchaser s premises shall be separately classified as 9519(1), Household Appliances. 5187(2) Amend Classifications 5552/5553, Roofing all kinds, to increase the hourly wage threshold from $23.00 per hour to $24.00 per hour to reflect wage inflation since the threshold was last amended in ROOFING all kinds including yard employees employees whose regular hourly wage does not equal or exceed $ per hour 5552 ROOFING all kinds including yard employees employees whose regular hourly wage equals or exceeds $ per hour employee s regular hourly wage equals or exceeds $ per hour. The payroll of an employee whose regular hourly wage is not shown to equal or exceed $ per hour shall be classified as 5552, Roofing Amend Classifications 6307/6308, Sewer Construction all operations, to increase the hourly wage threshold from $26.00 per hour to $27.00 per hour to reflect wage inflation since the threshold was last amended in SEWER CONSTRUCTION all operations including construction of laterals and tunneling at street crossings employees whose regular hourly wage does not equal or exceed $ per hour

17 SEWER CONSTRUCTION all operations including construction of laterals and tunneling at street crossings employees whose regular hourly wage equals or exceeds $ per hour employee s regular hourly wage equals or exceeds $ per hour. The payroll of an employee whose regular hourly wage is not shown to equal or exceed $ per hour shall be classified as 6307, Sewer Construction Amend Classifications 5538/5542, Sheet Metal Work erection, installation or repair, to increase the hourly wage threshold from $25.00 per hour to $26.00 per hour to reflect wage inflation since the threshold was last amended in SHEET METAL WORK erection, installation or repair shop and outside including installation of furnaces or air conditioning systems employees whose regular hourly wage does not equal or exceed $ per hour N.O.C. This classification shall apply to the installation of sheet metal roofing, but only if installed by the same employer who performs the sheet metal skinning in constructing new buildings or additions to existing buildings at the same job or location. All other roofing shall be separately classified. The installation of pipe and pipe fittings shall be separately classified SHEET METAL WORK erection, installation or repair shop and outside including installation of furnaces or air conditioning systems employees whose regular hourly wage equals or exceeds $ per hour N.O.C. employee s regular hourly wage equals or exceeds $ per hour. The payroll of an employee whose regular hourly wage is not shown to equal or exceed $ per hour shall be classified as 5538, Sheet Metal Work. This classification shall apply to the installation of sheet metal roofing, but only if installed by the same employer who performs the sheet metal skinning in constructing new buildings or additions to existing buildings at the same job or location. All other roofing shall be separately classified. The installation of pipe and pipe fittings shall be separately classified

18 Amend Classifications 5630/5631, Steel Framing light gauge residential, to increase the hourly wage threshold from $26.00 per hour to $27.00 per hour to reflect wage inflation since the threshold was last amended in STEEL FRAMING light gauge residential construction of dwellings not exceeding three stories in height including the installation of wood floor and roof sheathing, the construction of private garages and the installation of interior trim, builders finish, doors and cabinet work in connection with such structures employees whose regular hourly wage does not equal or exceed $ per hour This classification shall apply to the structural framing of dwellings using cold formed, light gauge steel studs and joists that are not more than 0.06 inch thick (#15 gauge or lighter). This classification shall apply to the installation of shingle roofing and the installation or application of insulation materials in buildings or within building walls, but only if installed by the same employer who performs light gauge steel framing in constructing or remodeling private residences at the same job or location. All other roofing shall be separately classified. The making, erecting or stripping of forms in connection with concrete work shall be assigned to the appropriate concrete classification. The assembly of light gauge steel building components, including wall panels and trusses, at a permanent shop or yard location shall be classified as 3066(1), Sheet Metal Products Mfg. N.O.C STEEL FRAMING light gauge residential construction of dwellings not exceeding three stories in height including the installation of wood floor and roof sheathing, the construction of private garages and the installation of interior trim, builders finish, doors and cabinet work in connection with such structures employees whose regular hourly wage equals or exceeds $ per hour employee s regular hourly wage equals or exceeds $ per hour. The payroll of an employee whose regular hourly wage is not shown to equal or exceed $ per hour shall be classified as 5630, Steel Framing light gauge residential. This classification shall apply to the structural framing of dwellings using cold formed, light gauge steel studs and joists that are not more than 0.06 inch thick (#15 gauge or lighter). This classification shall apply to the installation of shingle roofing and the installation or application of insulation materials in buildings or within building walls, but only if installed by the same employer who performs light gauge steel framing in constructing or remodeling private residences at the same job or location. All other roofing shall be separately classified. The making, erecting or stripping of forms in connection with concrete work shall be assigned to the appropriate concrete classification. The assembly of light gauge steel building components, including wall panels and trusses, at a permanent shop or yard location shall be classified as 3066(1), Sheet Metal Products Mfg. N.O.C

19 Amend Classifications 5632/5633, Steel Framing light gauge commercial, to increase the hourly wage threshold from $26.00 per hour to $27.00 per hour to reflect wage inflation since the threshold was last amended in STEEL FRAMING light gauge commercial or industrial including the installation of interior trim, builders finish, doors and cabinet work in connection therewith employees whose regular hourly wage does not equal or exceed $ per hour N.O.C. This classification shall apply to the structural framing of buildings using cold formed, light gauge steel studs and joists that are not more than 0.06 inch thick (#15 gauge or lighter). This classification shall apply to the installation of shingle roofing and the installation or application of insulation materials in buildings or within building walls, but only if installed by the same employer who performs light gauge steel framing in constructing new buildings or additions to existing buildings at the same job or location. All other roofing shall be separately classified. The making, erecting or stripping of forms in connection with concrete work shall be assigned to the appropriate concrete classification. The assembly of light gauge steel building components, including wall panels and trusses, at a permanent shop or yard location shall be classified as 3066(1), Sheet Metal Products Mfg. N.O.C STEEL FRAMING light gauge commercial or industrial including the installation of interior trim, builders finish, doors and cabinet work in connection therewith employees whose regular hourly wage equals or exceeds $ per hour N.O.C. employee s regular hourly wage equals or exceeds $ per hour. The payroll of an employee whose regular hourly wage is not shown to equal or exceed $ per hour shall be classified as 5632, Steel Framing light gauge commercial or industrial. This classification shall apply to the structural framing of buildings using cold formed, light gauge steel studs and joists that are not more than 0.06 inch thick (15 # or lighter). This classification shall apply to the installation of shingle roofing and the installation or application of insulation materials in buildings or within building walls, but only if installed by the same employer who performs light gauge steel framing in constructing new buildings or additions to existing buildings at the same job or location. All other roofing shall be separately classified. The making, erecting or stripping of forms in connection with concrete work shall be assigned to the appropriate concrete classification. The assembly of light gauge steel building components, including wall panels and trusses, at a permanent shop or yard location shall be classified as 3066(1), Sheet Metal Products Mfg. N.O.C

20 Amend Classifications 5446/5447, Wallboard Application within buildings, to increase the hourly wage threshold from $26.00 per hour to $27.00 per hour to reflect wage inflation since the threshold was last amended in WALLBOARD APPLICATION within buildings installation or application of gypsum wallboard including finishing and preparation prior to painting employees whose regular hourly wage does not equal or exceed $ per hour N.O.C. This classification shall apply to the installation or application of insulating materials within building walls, but only if installed by the same employer who performs the wallboard application in constructing new buildings or additions to existing buildings at the same job or location WALLBOARD APPLICATION within buildings installation or application of gypsum wallboard including finishing and preparation prior to painting employees whose regular hourly wage equals or exceeds $ per hour N.O.C. employee s regular hourly wage equals or exceeds $ per hour. The payroll of an employee whose regular hourly wage is not shown to equal or exceed $ per hour shall be classified as 5446, Wallboard Application. This classification shall apply to the installation or application of insulating materials within building walls, but only if installed by the same employer who performs the wallboard application in constructing new buildings or additions to existing buildings at the same job or location Amend Classifications 6315(1)/6316(1), Water Mains or Connections Construction including tunneling at street crossings, to increase the hourly wage threshold from $26.00 per hour to $27.00 per hour to reflect wage inflation since the threshold was last amended in WATER MAINS OR CONNECTIONS CONSTRUCTION including tunneling at street crossings employees whose regular hourly wage does not equal or exceed $ per hour This classification does not apply to the construction of aqueducts, cross-country pipelines or hydroelectric projects. All tunneling other than at street crossings shall be separately classified. 6315(1) 18

21 WATER MAINS OR CONNECTIONS CONSTRUCTION including tunneling at street crossings employees whose regular hourly wage equals or exceeds $ per hour employee s regular hourly wage equals or exceeds $ per hour. The payroll of an employee whose regular hourly wage is not shown to equal or exceed $ per hour shall be classified as 6315(1), Water Mains or Connections Construction. This classification does not apply to the construction of aqueducts, cross-country pipelines or hydroelectric projects. All tunneling other than at street crossings shall be separately classified. 6316(1) Amend Classifications 5474(2)/5482(2), Waterproofing other than roofing or subaqueous work when performed as a separate operation not a part of or incidental to any other operation, to increase the hourly wage threshold from $24.00 per hour to $25.00 per hour to reflect wage inflation since the threshold was last amended in WATERPROOFING other than roofing or subaqueous work when performed as a separate operation not a part of or incidental to any other operation including shop operations employees whose regular hourly wage does not equal or exceed $ per hour 5474(2) WATERPROOFING other than roofing or subaqueous work when performed as a separate operation not a part of or incidental to any other operation including shop operations employees whose regular hourly wage equals or exceeds $ per hour employee s regular hourly wage equals or exceeds $ per hour. The payroll of an employee whose regular hourly wage is not shown to equal or exceed $ per hour shall be classified as 5474(2), Waterproofing. 5482(2) Amend Section VIII, Abbreviated Classifications Numeric Listing, for consistency and to reflect the amendments proposed elsewhere in this section. Section VIII Abbreviated Classifications Numeric Listing 5027 Masonry less than $ Masonry equals or exceeds $

22 5140 Electrical Wiring equals or exceeds $ (1) Plumbing less than $ (2) Refrigeration Equipment less than $ Automatic Sprinkler Installation within buildings less than $ Automatic Sprinkler Installation within buildings equals or exceeds $ (1) Plumbing equals or exceeds $ (2) Refrigeration Equipment equals or exceeds $ Electrical Wiring less than $ (1) Concrete or Cement Work sidewalks less than $ (2) Concrete or Cement Work less than $ (1) Concrete or Cement Work sidewalks equals or exceeds $ (2) Concrete or Cement Work equals or exceeds $ Carpentry less than $ Carpentry equals or exceeds $ Wallboard Application less than $ Wallboard Application equals or exceeds $ Glaziers less than $ Glaziers equals or exceeds $ (1) Painting, Decorating or Paper Hanging less than $ (2) Waterproofing less than $ (3) Painting oil or gasoline storage tanks less than $ (1) Painting, Decorating or Paper Hanging equals or exceeds $ (2) Waterproofing equals or exceeds $ (3) Painting oil or gasoline storage tanks equals or exceeds $ Plastering or Stucco Work less than $ Plastering or Stucco Work equals or exceeds $

23 5538 Sheet Metal Work less than $ Sheet Metal Work equals or exceeds $ Roofing less than $ Roofing equals or exceeds $ Steel Framing light gauge residential less than $ Steel Framing light gauge residential equals or exceeds $ Steel Framing light gauge commercial less than $ Steel Framing light gauge commercial equals or exceeds $ (1) Carpentry detached private residences for 1 or 2 families less than $ (2) Carpentry dwellings not exceeding 3 stories less than $ (1) Carpentry detached private residences for 1 or 2 families equals or exceeds $ (2) Carpentry dwellings not exceeding 3 stories equals or exceeds $ (1) Excavation less than $ (2) Grading Land less than $ (3) Land Leveling farm lands less than $ (1) Excavation equals or exceeds $ (2) Grading Land equals or exceeds $ (3) Land Leveling farm lands equals or exceeds $ Sewer Construction less than $ Sewer Construction equals or exceeds $ (1) Water Mains or Connections Construction less than $ (2) Gas Mains or Connections Construction less than $ (1) Water Mains or Connections Construction equals or exceeds $ (2) Gas Mains or Connections Construction equals or exceeds $ * * * * * * Amend Appendix II, Construction and Erection Classifications, for consistency and to reflect the amendments proposed elsewhere in this section. Appendix II Construction and Erection Classifications 21