eNews - October 2007

California Temporary Disability Rates Going Up 3.9% Next Year

California's maximum temporary total disability (TTD) rate will increase to $916.33 on Jan. 1, the Division of Workers' Compensation (DWC) announced this week.

The minimum rate of $132.25 will increase to $137.45.

This increase will have a most immediate impact on those injured on or after January 1, 2008.

The DWC said the increases mark the second consecutive year that the TTD rate will be affected by a change in the state average weekly wage.

Beginning in 2006, Labor Code section 4453(a)(10) requires the rate for TTD be increased by an amount equal to the percentage increase in the average weekly wage as compared to the prior year. The average weekly wage 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 Mar. 31 in the year preceding the injury.

The California average weekly wage for the 12 months ending March 31, 2007 was $914.60. For the period ending March 31, 2006, the figure was $880.00, amounting to a percentage increase of 3.932%.

Applying this increase to the prior year's maximum benefit of $881.66 brings the 2008 maximum benefit to $916.33, the DWC said.

Source: Calif. DWC

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