If you are a construction employer, you know that California’s dual-wage classification system may entitle you to lower premium rates for employees whose hourly wages are above certain thresholds. To qualify for these higher-wage, low-rate classes, you must follow a strict record-keeping standard: Keep daily time cards or time sheets and document start and stop times for all your employees.
The Workers’ Compensation Insurance Rating Bureau (WCIRB) requires construction employers with dual-wage classifications to maintain records that show daily start and stop times, hours worked, job duties and type of work performed, and wage rates or salary earned. If you lack clear verifiable records of hours, duties, and wages, your auditor will assign all construction payroll into the applicable low-wage, high-rate classifications.
By following the rules for documentation, you can save premium dollars and streamline the audit process.