Class Code 5606
Contractors – Executive Level Supervisors
Class Code 5606 applies to executive-level supervisors employed by contracting firms who perform primarily administrative and supervisory duties rather than regular manual labor. The California pure premium rate for 5606 is $0.842 per $100 of payroll, an important input for estimating workers' comp costs for these higher-level positions.
What Class Code 5606 Covers
This classification is assigned to contractors' executive-level supervisors whose work is managerial, administrative, and supervisory in nature: planning projects, scheduling crews, overseeing jobsite managers, negotiating with clients and subcontractors, and enforcing company safety programs. These employees typically do not perform regular hands-on construction or trade work; they visit job sites to inspect progress, attend safety meetings, and make executive decisions. Included work also covers contract review, budgeting, hiring and discipline of field supervisors, and high-level coordination of multiple projects. If an executive supervisor begins regularly performing manual or trade tasks, payroll for those hours should be reported under the appropriate manual contractor class instead of 5606.
Who It Applies To
- Company presidents, owners, and partners of contracting firms who primarily supervise operations
- Operations directors, vice presidents, and regional managers for general contractors
- Project executives and senior project managers who do administrative oversight rather than hands-on trade work
- Estimating and scheduling executives in contracting companies who visit sites for oversight
- Field supervisors whose job duties are mostly supervisory and administrative (not regular manual labor)
Common Job Duties
- Directing multiple jobsite supervisors and setting project priorities
- Preparing and approving project budgets, contracts, and change orders
- Conducting site inspections to monitor progress, quality, and compliance
- Leading pre-job and toolbox safety meetings and enforcing safety policies
- Coordinating subcontractors, client communications, and permitting issues
- Hiring, disciplining, and evaluating foremen and supervisors
- Developing schedules and allocating crews and resources across projects
Common Injury Risks
Understanding the $0.842 Rate
The pure premium rate of $0.842 per $100 of payroll is the insurer's estimate of expected claim costs for this class before expenses and profit. To calculate the pure premium, divide total payroll by 100 and multiply by 0.842; insurers then add policy-level loadings, state assessments, and apply your experience modification to determine the final premium. Payroll reporting accuracy, claims history (experience mod), and correct classification are primary drivers of the premium you ultimately pay.
Cal/OSHA Compliance Requirements
Executive supervisors in contracting firms have statutory responsibilities under Cal/OSHA to implement and enforce an effective Injury and Illness Prevention Program (IIPP), ensure training and PPE for workers, and comply with site-specific standards such as fall protection, ladder safety, and heat illness prevention when conducting site visits. Supervisors must also ensure timely incident reporting and cooperate with recordkeeping requirements; failure to enforce these duties can increase liability and workers' comp exposure.
How Key HR Helps Employers Under Class Code 5606
A PEO like Key HR helps ensure executive-level supervisors are correctly classified and that payroll is reported accurately to minimize misclassification audits. We provide tailored loss-control programs, supervisor-specific safety training, claims management and return-to-work coordination, and data to help reduce experience modification factors—practical services that can lower workers' comp costs for contracting firms.
Get a QuoteFrequently Asked Questions
How do I know whether a supervisor belongs in 5606 or a manual contractor code?
Use 5606 when the employee's primary duties are administrative and supervisory—overseeing projects, scheduling, contract management, and enforcing safety—without regular hands-on trade work. If the supervisor routinely performs manual construction or trade tasks, those hours should be assigned to the appropriate manual contractor class.
Can you show an example premium calculation using the $0.842 rate?
Yes. For $200,000 annual payroll: divide by 100 to get 2,000, then multiply by 0.842 to get a pure premium of $1,684. Your insurer will add policy loadings, assessments, and apply your experience modification to determine the final premium.
What specific Cal/OSHA obligations do executive supervisors have on job sites?
They must implement and enforce the company IIPP, ensure workers receive site-specific training (including heat illness and fall protection where applicable), provide and enforce PPE, investigate incidents, and maintain required records and reports. Supervisors are expected to lead by example and correct unsafe conditions promptly.
Quick Facts
- Class Code
- 5606
- Classification
- Contractors – Executive Level Supervisors
- Pure Premium Rate
- $0.842 / $100 payroll
- Effective Date
- September 1, 2026
- Source
- WCIRB Approved Filing
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