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I SAWW This Coming! TD Rate Increases for 2017

As my beloved readers are well aware, every year we do a check to see what the average weekly wages were in California, and any resulting increase will determine if increase in the minimum and maximum for temporary total disability benefit rates.

Well, the results are in for the first quarter of 2016, which saw an increase in California’s average weekly wages from $1,120.67 to $1,164.51, which reflects a 3.9% increase.  The resulting increase to the statutory maximum in TD rates, raising it from the current maximum of $1,128.43 to $1,172.57 for injuries sustained after January 1, 2017.  The new minimum will be $175.88 up from $169.26.

But… that’s not all!

Labor Code section 4661.5 provides that any TD benefits made two years or more after the date of injury will also get the benefit of the new minimum and maximum.  Starting January 1, 2017, you may want to adjust TD rates for any injuries sustained prior to January 1, 2015.

Finally, don’t forget to adjust any life pension payments for post 1/1/2003 dates of injury to reflect this increase.

It might make sense to note this on your files now as reminders for January 1, 2017 – there are probably more than a few cases out there that might warrant a rate change come the new year.

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