New Max/Min TD Rates For 2009

The California Department of Labor has determined that the State Average Weekly Wage (SAWW) rose from $914.60 for the year ending March 31, 2007 to $956.20 for the year ending March 31, 2008.  This constitutes an increase of 4.55% in one year.  Labor Code section 4453, subdivision (a)(10)  requires the maximum and minimum temporary disability rates to increase annually by an amount equal to percentage increase in the SAWW.

Effective January 1, 2009 the maximum temporary total disability rate will increase to $958.01.  The minimum rate will increase to $141.70. 

Workers entitled to a life pension with dates of injury on or after January 1, 2003 get an increase in their life pension rate equal to the percentage increase in SAWW.  (Lab. Code, § 4659, subd. (c).)  This is on top of the increase for prior years.

The maximum and minimum temporary disability rates have increased every year since the link to the SAWW became effective.  The linking was part of AB 749.  It seems quite possible based on current economic trends that March 31, 2009 could see a decrease in the SAWW over March 31, 2008.  It is unclear whether a negative percentage change will result in a decrease in the maximum and minimum temporary disability and life pension rates. The statute states the rate “limits” shall be “increased by an amount equal to the percentage increase” in the SAWW.  There appears to have been no contemplation that the SAWW could decrease.

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Heggeness, Sweet, Simington & Patrico, A P.C.
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