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Case Study · Construction & Trades

How Alumaline Cut $36K+/Year in Workers’ Comp & Admin — With a Model Projected to Save ~$115K as They Scale

TL;DR
Documented savings
$36,486/yr
Workers’ comp + admin, at current size
Projected at scale
~$115K/yr
As headcount & payroll grow with new projects
High-risk WC rate
17.24% → 11.17%
Installation class code (5102 NY)

The model at a glance

Blue-collar workers' comp solution for Alumaline: prior challenges, the solution, and projected outcome
The ~$114,994/yr figure is the illustrative at-scale projection as Alumaline’s headcount and payroll grow; documented savings at current size are $36,486/yr.
We came from ADP and would’ve been happy just saving the 28% on workers’ comp. What we didn’t expect was real employee benefits, faster support, and a simpler experience across the board. Easier to hire, easier to retain good people, and morale is stronger. We came for the savings and ended up with a partner that helps our business win.
John Lombardi, Managing Partner at Alumaline
John Lombardi
Managing Partner · Alumaline · NYC High-Rise Window Installation
28%
off workers’ comp
+25
benefit lines added
+5
service specialists — no more call centers

Company Profile: Alumaline Inc. — a New York City contractor specializing in aluminum window and curtain-wall installation on high-rise buildings across the five boroughs. Roughly 13 employees and ~$1.5M in annual payroll, spread across high-risk installation, sales, and clerical workers’ comp class codes. Payroll and HR ran through ADP TotalSource, one of the largest national PEOs, and a 401(k) was the only employee benefit in place beyond what payroll required.

The problem: high-risk workers’ comp rates and stalled benefits inside a general-purpose PEO

  • High workers’ comp costs across multiple class codes — the high-risk installation code (5102 NY) alone carried a 17.24% service-fee/WC load, cutting directly into project margins
  • Generic HR & compliance support not built for a high-risk construction trade
  • Stalled benefit expansion — conversations about adding real employee benefits to compete for skilled labor never made it to execution
  • For a growing trades business, the drag wasn’t just cost — it was financial friction and lost competitiveness baked into the setup

What the right fit required

  • Lower workers’ comp rates across every class code — especially the high-risk installation work
  • Responsive HR & compliance support with a real service team, not a call center
  • A benefits suite that could expand recruiting power without forcing employer contributions
  • A clean payroll/WC transition with no disruption to active projects

The analysis: ADP TotalSource vs. FrankCrum, modeled on real payroll

1. Status quo — ADP TotalSource (largest national PEO)

Familiar, but expensive where it hurt most. On ~$1.5M of payroll, the bundled workers’ comp + admin load totaled roughly $131,650/year, with the high-risk installation code priced at a 17.24% service fee.

✗ Status quo unsustainable

2. FrankCrum — a PEO built for blue-collar trades

Modeled against the same payroll, FrankCrum came in at roughly $95,164/year all-in:

  • High-risk installation WC rate cut from 17.24% to 11.17%, plus a lower NY SUTA rate
  • 5 dedicated service specialists with direct support — no more call-center handoffs (plus EPLI & FrankAdvice HR)
  • +25 benefit lines available with no required employer contribution
  • A clean activation with no disruption to active jobs (live December 2025)

Documented result: ~$36,486/year saved at current size — the large majority of it workers’ comp.

✓ Selected

Outcome: $36K saved today, a model that scales toward ~$115K

At Alumaline’s current size, the move to FrankCrum documents an annual saving of:

$36,486 / year

Because the savings are driven by workers’ comp rates applied to payroll, the dollar figure grows as Alumaline grows. Modeled against the headcount and payroll expansion expected from their pipeline of new projects, the same structure is projected to save on the order of ~$115,000/year at full scale — a projection, not a current figure, but a direct function of the rate improvements already locked in.

Just as important: Alumaline gained a path to real benefits competitiveness without paying for the benefits — making it materially easier to recruit and retain skilled installers in a tight NYC labor market.

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What other contractors can take from this

This case shows that workers compensation and admin cost are controllable. By restructuring its program, this installer cut a significant amount from annual workers comp and administrative expense.

Other blue-collar contractors can apply the same approach: workers comp is one of the largest controllable costs in the trades, and the right structure plus safety discipline can bring it down meaningfully over time.

When this approach tends to fit:

For broader context on employer benefits, see OSHA's safety standards.

To explore the same approach for your own numbers, try the Benefits ROI Calculator or the Benefits ROI Calculator.

Frequently asked questions

Can a contractor really lower workers comp cost?

Often, through the right program structure, correct classification, and safety discipline that improves the experience modifier over time.

What drives workers comp cost in the trades?

Experience modifier, claims history, classification, and safety record. Each is a lever you can work.

Where do I start?

Review your current comp structure and claims history to find the biggest controllable levers.

Reviewed by Sam Newland, CFP, Founder of Benefitra. Last updated June 2026.