The Division of Workers’ Compensation announced that the 2022 minimum and maximum temporary total disability (TTD) rates will not change.
The minimum TTD will remain $203.44 and the maximum TTD rate will remain $1,356.31 per week.
Labor Code Section 4453(a) (10) requires the maximum and minimum weekly earnings upon which TTD is based be increased by an amount equal to percentage increase in the State Average Weekly Wage (SAWW) as compared to the prior year.
The SAWW 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 March 31 in the year preceding the injury.
In the 12 months ending March 31, 2021, the SAWW declined from $1,383 to $1,164. Therefore, the maximum average weekly wage considered for temporary disability rate will remain $2,034.47 (2/3 to produce a $1,356.31 weekly rate) and the minimum average weekly wage considered for temporary disability rate will remain $305.16 (2/3 to produce $203.44 weekly rate). The TTD minimum and maximum rates for 2022 are unchanged.
It is interesting that the Labor Code provides for an increase in rates if the SAWW increases, but no provision in the event of a decrease.
Under Labor Code Section 4659(c), workers with a date of injury on or after January 1, 2003 who are receiving life pension (LP) or permanent total disability (PTD) benefits are also entitled to have their weekly LP or PTD rate adjusted based on the SAWW. The decline in the SAWW dictates these rates also remain unchanged.
SAWW figures may be verified using the U.S. Department of Labor’s unemployment insurance database.