California’s Division of Workers’ Compensation announced that the 2022 minimum and maximum temporary total disability rates will increase on Jan. 1, 2022.
The minimum TTD rate will increase from $203.44 to $230.95 and the maximum TTD rate will increase from $1,356.31 to $1,539.71 per week, according to the DWC.
Labor code requires the maximum and minimum weekly earnings upon which TTD is based increase by an amount equal to percentage increase in the State Average Weekly Wage compared to the prior year.
The SAWW is defined as the average weekly wage paid to employees covered by unemployment insurance as reported by the U.S. Department of Labor for California for the 12 months ending March 31 in the year preceding the injury.
In the 12 months ending March 31, 2021, the SAWW increased from $1,383 to $1,570—an increase of 13%, according to the DWC.
Labor code states that workers with a date of injury on or after Jan. 1, 2003 who are receiving life pension or permanent total disability benefits are also entitled to have their weekly LP or PTD rate adjusted based on the SAWW.
This article was first published in Insurance Journal.