Workers’ Comp Class Code 5403: Carpentry
Class code 5403 is where California carpentry payroll lands by default, and many framing and remodeling contractors pay on it without realising a second code exists for the same work. That second code, 5432, is reserved for higher-paid carpenters, and the records you keep decide which one an auditor uses. This page walks through both.
What carpentry class code 5403 includes
The carpentry class covers rough carpentry, or rough and finish carpentry together, in new construction or remodeling of homes and commercial buildings. Installing interior trim, doors and cabinets is part of it when done in connection with that carpentry. Shingle roofing and insulation also come along, but only when the same employer is framing the new building or addition at the same job.
Demolition and deconstruction on a remodel are handled under a separate wrecking rule rather than automatically falling into carpentry. If your crews do several trades, our California workers’ comp class code guide explains how payroll is divided between classes.
The wage threshold between 5403 and 5432
Carpentry is a dual-wage trade. 5403 is for carpenters whose regular hourly wage is below the threshold, and 5432 is for those at or above it. The threshold was set at $41.00 an hour in 2024, and under the WCIRB’s September 1, 2026 filing it rises to $46.00. Pay a carpenter $44.00 an hour and that worker sat in 5432 under the old figure but falls into 5403 under the new one.
The wage test uses the regular hourly rate only. Overtime premium, allowances, reimbursed expenses and annual bonuses are left out, and a salaried carpenter’s rate is annual pay divided by 2,000 hours. The two codes are added together when the governing class is worked out, so a carpentry firm stays a carpentry firm whichever mix it has.
Proof the auditor needs for 5432
The higher-wage code is not assumed. It applies only if time cards or time book entries verify each employee’s regular hourly wage, or if a valid collective bargaining agreement and roster do. Without that proof at final audit, the payroll goes back to 5403.
The same discipline matters for anyone who does more than one kind of work. When an employee’s hours are not separated by original time records, the entire payroll goes to the highest-rated class of any work that person performs. Daily time entries that show the operation, not only the hours, keep each carpenter in the class the work belongs to.
Codes next to carpentry
- Cabinet or fixture installation with no rough carpentry at the job: 5146(1).
- Door, door frame or pre-glazed window installation with no rough carpentry at the job: 5107.
- Light-gauge steel framing: 5632 and 5633.
- Concrete form work: the concrete classes.
- Roofing other than shingles on a building the employer is framing: classified separately.
Small repair jobs are a separate question. Minor work that needs no building permit and stays within the contractor license exemption, which the CSLB raised from $500 to $1,000 on January 1, 2025, is reported in 9015(1). The exemption is lost once you hire anyone for the job, and a carpentry business with employees taking larger or permitted jobs reports those jobs in the carpentry codes. See handyman insurance for the small-job side.
How the carpentry codes change what you pay
The WCIRB’s advisory pure premium rates effective September 1, 2026 are 12.075 per $100 of payroll for 5403 and 5.321 for 5432. As a worked example of the loss-cost benchmark only, $200,000 of carpentry payroll works out to about $24,150 in 5403 and about $10,642 in 5432. Insurers set their own rates on top of these figures and apply your experience mod, so your premium will differ, but the ratio explains why the wage records matter.
Check your declarations page and audit report for the carpentry code used, and compare it with your payroll records before the audit. If a class still looks wrong afterwards, you can put the question to the WCIRB in writing, with the reason, up to 12 months after that policy expires. When we request workers’ compensation quotes for a framing or remodeling company, we send each carpenter’s wage band so the insurer can decide the split. Our contractor insurance page lists the other policies builders carry.
A few useful answers
Common questions
What hourly wage moves a carpenter from class code 5403 to 5432?
Under the WCIRB’s September 1, 2026 filing, a regular hourly wage of $46.00 or more, up from $41.00. The wage must be verified by time records or a collective bargaining agreement and roster at final audit.
Does overtime pay count toward the carpentry wage threshold?
No. Overtime premium is excluded, along with allowances, reimbursed expenses and annual bonuses. Only the regular hourly wage is compared with the threshold.
Is cabinet installation reported in 5403?
When it is done in connection with the employer’s carpentry at the job, yes. Cabinet or fixture installation with no rough carpentry at the job is classified in 5146(1).
Do framers who use light-gauge steel studs stay in 5403?
No. Light-gauge steel framing has its own classes, 5632 and 5633, separate from wood carpentry.