The California Division of Workers’ Compensation has announced that the 2020 minimum and maximum temporary total disability rates will increase on Jan. 1, 2020.
The minimum TTD rate will increase from $187.71 to $194.91 and the maximum TTD rate will increase from $1,251.38 to $1,299.43 per week, the DWC said.
Labor Code requires the rate for TTD be increased 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, 2019, the SAWW increased from $1,276 to $1,325 – an increase of 3.84013 percent, according to the DWC.
Under Labor Code, 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.
The DWC is part of the California Department of Industrial Relations, which in turn is housed within the Labor & Workforce Development Agency.
This article was first published by Insurance Journal.