Workers’ Compensation Benefit Rates: Increase January 1, 2020

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Workers’ Compensation Benefit Rates: Increase January 1, 2020

September 23, 2019

Workers’ Compensation Temporary Total Disability (TTD) rates will increase as of January 1, 2020 as a result of an increase the State Average Weekly Wage (SAWW) for the 12 months ending March 31, 2019.

In 2002, AB 749 was signed into law 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.

Effective for Dates of Injury On or After January 1, 2020

The Division of Workers’ Compensation (DWC) announced that the 2020 minimum and maximum Temporary Total Disability (TTD) rates will increase 6.6% with the minimum TTD increasing from $187.71 to $194.91 and the maximum TTD rate increasing from $1,251.38 to $1,299.43 per week.

TEMPORARY DISABILITY WEEKLY RATES

Effective Date Ave. Weekly Min. Earnings Min. Weekly TD Rate Ave. Weekly Max Earnings Max. Weekly TD Rate
01/01/15 $248.23 $165.49 $1,654.93 $1,103.29
01/01/16 $253.89 $169.26 $1,692.64 $1,128.43
01/01/17 $263.82 $175.88 $1,758.85 $1,172.57
01/01/18 $273.44 $182.29 $1,822.91 $1,215.27
01/01/19 $281.55 $187.71 $1,876.98 $1,251.38
01/01/20 $300.18 $194.91 $2,001.15 $1,299.43
01/01/21 $300.18 + the % increase in the SAWW $194.91 + the % increase in the SAWW $2,001.15 + the % increase in the SAWW $1,299.43 + the % increase in the SAWW

Regardless of the date of injury, claims that involve TTD benefits paid more than two years from the date of injury and injured employees with dates of injury on or after January 1, 2003 who are receiving life pension (permanent disability between 70% and 99%) or Permanent Total Disability (PTD) benefits are also subject to the new statutory benefit rate increase.

Download the PDF copy of this Briefing to see a comprehensive Workers’ Compensation Benefit Summary. These documents are also available on P&C Bridge.

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


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