United Contractors Advocates for Fairer Review of Workers’ Compensation Premium Costs

Effective advocacy requires more than simply asking for change. It takes clear communication, credible data, and a strong understanding of how the industry actually works. United Contractors recently demonstrated all three through its engagement with the Workers' Compensation Insurance Rating Bureau of California (WCIRB) during its rate proposal process.

As part of the WCIRB’s recommendation to the Insurance Commissioner, United Contractors participated in sustained outreach and data-driven discussions to ensure the heavy civil engineering and construction industry’s perspective was fully represented. Through this engagement, United Contractors advocated for reducing the proposed increase and the WCIRB approved a lower increase to the dual wage threshold, from $6 down to $5. While the proposal is still under review by the Insurance Commissioner and not yet finalized, this adjustment reflects meaningful consideration of the concerns raised by our industry.

More importantly, United Contractors established a critical point in the rate review process; not all construction jobs are the same. Different trades and skill levels present different types and levels of risk. When construction classifications and scopes of work are treated uniformly for insurance purposes, it can result in unfair cost structures that do not accurately reflect the realities on the jobsite.

By clearly articulating these distinctions and providing practical insight into how work is performed in the field, United Contractors contributed to a more informed evaluation of how construction is classified and assessed. We will continue to monitor the Insurance Commissioner’s review and any resulting decisions.

For contractors, this effort is more than short-term rate impacts. It is about advocating for a workers’ compensation system that better recognizes the diversity of roles in construction and supports employers who prioritize safety, training, and compliance.
United Contractors remains committed to ensuring that regulatory and rate-setting processes reflect the true nature of the construction industry and protect the long-term sustainability of its members.