Keenan Briefings

Briefing

UPDATED: Workers’ Compensation Benefits Increase Effective January 1, 2022

Every year, the Workers’ Compensation Temporary Total Disability (TTD) rates are subject to an increase as of January 1st if and when there is an increase to the State Average Weekly Wage (SAWW). SAWW is reported by the U.S. Department of Labor for California for the 12 months ending March 31 in the year preceding the injury.

Last month, we issued a briefing indicating that benefit rates would not increase in 2022. On October 25^th, the Department of Workers’ Compensation (DWC) issued an updated Newsline, correcting the change in the SAWW for the 12 months ending March 31, 2021. The SAWW increased from $1,383 to $1,570, or 13.5213%. As a result, there will be an increase in the workers’ compensation temporary disability rates for dates of injury on, or after, January 1, 2022.

As a reminder, AB 749 was signed into law in 2002 amending Labor Code section 4453(a) requiring the rates for TTD be increased by an amount equal to the percentage increase in the State Average Weekly Wage (SAWW), as reported by the U.S. Department of Labor for the 12 prior months ending March 31st. There is no provision for a reduction in TTD rates. The rates either remain the same (unchanged) or increase each year.

Effective For Dates of Injury On or After January 1, 2022

The 2022 minimum and maximum Temporary Total Disability (TTD) rates increase with the minimum TTD increasing from $203.44 to $230.95 and the maximum TTD rate increasing from $1,356.31 to $1,539.71 per week.

An updated comprehensive Workers’ Compensation Benefit Summary is immediately following this briefing.

If you have any questions regarding the information contained in this briefing, please feel free to contact your Account Executive or Risk Management Analyst.

AP Keenan is not a law firm and no opinion, suggestion, or recommendation of the firm or its employees shall constitute legal advice. Clients are advised to consult with their own attorney for a determination of their legal rights, responsibilities, and liabilities, including the interpretation of any statute or regulation, or its application to the clients’ business activities.