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News & Press: Legislative Issues

New 2015 Changes in Store for Class Code 5606-Executive Supervisors in Construction

Wednesday, December 10, 2014   (0 Comments)
Posted by: Mark Alpert
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CALPASC Director of Risk Management Bruce Wick has been working on revisions to code 5606 for the past year, with a coalition of other construction groups. Some issues are still in the works, but several positive changes have taken place. These changes will take effect with your Worker’s Compensation anniversary rating date in 2015. 

  1. A key change is that the WCIRB is no longer required to approve the classification for an employer, the employer and their insurer can agree that the classification is applicable.
  2. While the two levels of supervision required underneath the person qualifying for code 5606 remains, there are several clarifications of other parties who may go on a jobsite before or after construction is active. These parties can be under code 8742-Outside salespersons, and their duties could include pre-construction estimating, or meeting with clients.

    See below for the full detail of class code 5606 for 2015.

    CONTRACTORS – construction or erection – executive level supervisors – no direct supervisio n– division of a single employee’s payroll with any other classification is not permitted 5606

This classification may be assigned only in connection with the construction or erection classifications listed in Appendix I, Construction and Erection Classifications.

 

This classification applies to executive level supervisors of construction operations wherein the employer develops payroll in one or more construction or erection classifications provided not less than two levels of supervision, as defined in Part 3, Section IV, Rule 2d, Executive Level Supervisors, are retained between the executive level supervisor and the workers performing actual construction operations.

 

This classification also includes management level employees such as safety managers, project managers and engineers, who do not supervise construction operations but whose duties include walking through a construction site during the construction phase, provided the employer retains two levels of supervision over the construction crew(s) or where all operations have been subcontracted to licensed subcontractors. Otherwise, such employees are miscellaneous employees and shall be classified in accordance with Part 3, Section IV, Rule 2c, Miscellaneous Employees

 

(Construction or Erection).

 

This classification also applies to executive level supervisors when all construction operations are subcontracted to licensed contractors and no payroll is developed under any construction classification.
In such instances, executive level supervisors exercise control exclusively through licensed subcontractors.

 

On jobs where all construction operations are subcontracted to licensed subcontractors, Classification 9015(1), Building Operation – all other employees, shall apply to job site cleanup and warranty repair conducted after construction is completed.

 

Classification 5606 does not apply to employees whose job site duties are limited to estimating, outside sales or public relations. Employees whose non-clerical duties are confined to visiting job sites for the purpose of pre-construction estimating, or for meeting with clients and other project representatives, are classified as 8742(1), Salespersons – Outside, provided they have no supervisory responsibilities over construction operations and they do not walk through job sites for purposes such as assessing construction progress, evaluating quality or determining compliance
with safety standards.

 

Fee-based construction management companies that do not engage in or perform supervision over construction operations, but serve as an intermediary between the general contractor and project owner or otherwise provide expertise regarding a construction project, shall be classified as 8601(1), Engineers – consulting


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