Construction Supervisor workers comp rate in Hawaii
The filed workers comp rate for class code 5606 (Construction Supervisor) in Hawaii is $0.310 per $100 of payroll. On $500,000 of payroll, that is roughly $1,550 in base premium.
Workers comp rules in Hawaii affecting code 5606
Hawaii uses NCCI for workers comp rate setting. Coverage is mandatory once an employer crosses the threshold of Employers with one or more employees, whether working full-time or part-time, are directly affected..
Subcontractor coverage in Hawaii
General contractors are liable for the workers' compensation benefits of employees of uninsured subcontractors.
Owner-exclusion rules for code 5606
Hawaiiallows business owners to file an election excluding themselves from workers comp coverage. Excluding $80,000 of owner payroll at $0.310 saves $248 per year.
1099 contractor handling
Individuals classified as 1099 contractors may be deemed employees for workers' compensation purposes if they do not meet specific independent contractor criteria, primarily based on the 'right to control' test.
Penalty for failing to carry coverage
Penalties for non-compliance include fines of up to $10,000, stop-work orders, and potential criminal charges.
Audit window after policy expiration
After your policy expires, Hawaii's rating authority allows within 90 days of policy expiration for a premium audit. Code 5606 payroll discovered late can result in additional premium owed. Maintain segregated payroll records for at least the audit window plus one year.
Ways to lower your premium for code 5606 in Hawaii
Most employers paying for code 5606 could reduce annual premium by 10-30% by applying one or more of the levers below. Each is grounded in Hawaii-specific rules where applicable.
- Experience modifier (EMR): A 0.85 EMR (well-managed) cuts $0.310 to $0.264 per $100, saving roughly $232 on a $500K payroll. A 1.25 EMR (loss-burdened) inflates it to $0.388. Build a lower EMR by reducing claim frequency (every claim hurts the modifier even if dollar cost is small).
- Schedule credits: Hawaii permits up to 25% schedule credit at underwriter discretion. At $0.310, a 7% credit lowers your effective rate to $0.288 per $100.
- Deductible plans: Per-claim or aggregate deductibles ($1K-$10K typical) cut premium 5-15%. Best fit when historical claim count is low.
- Reclassify payroll: Code 5606 may be applied too broadly. If a portion of payroll is genuinely clerical and properly segregated, that portion can be reported as code 8810 (clerical) at $0.10-$0.30 per $100.
- PEO or staff leasing: A Professional Employer Organization can pool your code-5606 payroll with similar businesses in Hawaii, often securing better blended rates than your standalone EMR can achieve.
- Dividend or retro plans: Some carriers offer participating policies that return a dividend if your loss ratio stays below a target. Best for employers with predictably good loss experience.
- Wrap-up policy for projects: For larger code-5606 operations (especially construction), an OCIP or CCIP wrap can consolidate coverage at lower aggregate cost.
Common claim drivers in construction affecting code 5606
Rate filings for code 5606 reflect what actually drives claim cost for this occupation across NCCI's national experience and Hawaii's state-specific loss data. The largest drivers behind the $0.310 rate are typically:
- Falls from elevation. OSHA cites falls as the leading construction injury cause; typically 25-35% of code-rate cost.
- Struck-by / caught-between. Vehicle, equipment, and falling-object injuries account for 15-20% of construction claims.
- Cumulative trauma. Back and shoulder injuries from repetitive lifting and overhead work drive long-tail claim costs.
Targeting these in your safety program produces the largest EMR improvement. Most claim-frequency reductions come from controls on the top two drivers above; severity reductions require return-to-work programs and aggressive medical management.
FAQ
What is the workers comp rate for code 5606 in Hawaii?
The filed workers comp loss cost or rate for NCCI class code 5606 in Hawaii is $0.310 per $100 of payroll.
How much would I pay on $500,000 payroll?
At $0.310 per $100, $500,000 yields a base premium of $1,550 before EMR and schedule credits. With an EMR of 0.85, effective rate is $0.264; with 1.25, it is $0.388.
Where else can I see code 5606?
UT has the cheapest filed rate ($0.150) and NY the highest ($2.56). Hawaii sits at the 18th percentile across 22 peer states.
Can I get a schedule credit on code 5606 in Hawaii?
Hawaii permits up to 25% schedule credit. At $0.310, a 10% credit lowers effective rate to $0.279 per $100.
Can I exclude myself from code 5606 coverage in Hawaii?
Yes. Hawaii allows business owners to file an election excluding themselves from workers comp coverage on their own payroll.