Calif. Workers’ Comp Total Temporary Disability Rates to Increase

California workers’ compensation total temporary disability (TTD) rates are likely to rise, thanks to new U.S. Department of Labor data that shows California’s State Average Weekly Wage (SAWW) rose more than 2.4 percent from $979.90 to $1003.55 in the 12 months ending March 31, 2011. The California Workers’ Compensation Institute (CWCI) reported that the SAWW will push up minimum and maximum TTD rates for 2012 work injury claims, as well as other workers’ compensation benefits that are tied to SAWW changes.

California’s current TTD maximum rate for 2011 job injuries is $986.69 per week.According to the CWCI, the latest increase in the SAWW means the TTD rate should rise to $1,010.50 per week for claims with injury dates on or after Jan. 1, 2012. CWCI noted that the minimum weekly TTD rate is subject to an annual adjustment based on increases in the SAWW, so the minimum rate ($148 for 2011 injury claims) should jump to $151.57 for 2012 work injury claims.

Effective next January, other workers’ compensation benefits also will be bumped up, including TTD paid two years or more after injury, life pension and permanent total disability payments for injuries occurring on or after Jan. 1, 2003, and installment payments on death claims. Underpayment of benefits results in major penalties, so CWCI is encouraging claims administrators to review changes in benefit rates with legal counsel to assure that adjustments are appropriate and accurate.

For reference, California’s SAWW for the year ending March 31, 2011, is at http://ows.doleta.gov/unemploy/content/data_stats/datasum11/DataSum_2011_1.pdf.

A CWCI Bulletin with more details is available at www.cwci.org.

Topics California Trends Workers' Compensation Pricing Trends