Per the State of California, the State Average Weekly Wage (SAWW) rose nearly 3.8% in the year ending March 31, 2024, which will result in an increase in California workers’ compensation temporary total disability (TTD) and permanent total disability (PTD) rates for 2025 work injury claims and other workers’ compensation benefits that are tied to SAWW increases. Wage data from the US Department of Labor demonstrate the increase of 3.8% (rounded up) from $1,642.00 to $1,704.00.
The TTD/PTD maximum rate will increase by an additional $61.14 to $1,680.29 per week for claims with injury dates on or after January 1, 2025. The minimum weekly TTD/PTD rates will increase by $9.17 to $252.03 per week for claims with 2025 injury dates. Other potential workers’ compensation benefits including life pension, PTD payments post January 1, 2023, death claim installment payments and TTD paid over two years post injury will also increase.
Also beginning on January 1, 2025, other workers’ compensation benefits, including TTD paid two years or more after injury, life pension and PTD payments for injuries on or after January 1, 2003, and installment payments on death claims will be going up due to the SAWW increase. Underpayment of benefits results in penalties, so CWCI encourages claims administrators to review changes in benefit rates with legal counsel to assure that adjustments are appropriate and accurate.
The State has provided a data table for reference, which shows the 12 months ending on March 31, 2023 and the 12 months ending on March 31. 2024, per the US department of Labor: https://oui.doleta.gov/unemploy/data_summary/DataSum.asp
If you have questions on rates, changes to payments or the impact on any claim including increases in reserving, please reach out to any attorney at Siegel, Moreno & Stettler to learn more.
