California workers’ compensation benefits are expected to increase beginning next January as a result of the 3.9% rise in the State Average Weekly Wage (SAWW) in the fiscal year ending March 31, 2016.
The California Workers’ Compensation Institute (CWCI) said in a report that the increase is seen to boost temporary total disability (TTD) and permanent total disability (PTD) rates for 2017, as well as other workers’ comp benefits that are tied to fluctuations in the SAWW.
Specifically, California SAWW rose to $ 1,164.51 from $ 1,120.67 in the past year.
CWCI estimated that the latest increase will result in a 3.8% surge in the maximum TTD/PTD rate per week to $1,172.57 from S1, 128.43 for claims with injury dates on or after January 1, 2017. California law links disability rates to SAWW increases.
Other workers’ compensation benefits will also go up as a result of the growth in the SAWW, which includes TTD paid two years or more after injury, life pension, and PTD payments on or after January 1, 2003, as well as instalment payments on death claims.
Penalties ensue from underpayments, thus CWCI encouraged claims administrators to review changes in benefit rates with legal counsel to ensure appropriate and accurate adjustments.
