On October 3, 2007 California's Division of Workers' Compensation announced that the maximum temporary total disability rate will increase to $916 effective January 1, 2008. AB 749, enacted in 2002 requires that the rate move in relation to the state average weekly wage (SAWW) annually.
The SAWW for the 12 months ending Mar. 31, 2007 was $914.60, an increase of 3.9 percent from the same period a year earlier. Applying the 3.9 percent change to the 2007 maximum temporary TD rate of $881.66 brings next year's maximum rate to $916.33.
The SAWW is defined as the average weekly wage paid to California employees covered by unemployment insurance as reported by the U.S. Department of Labor for the 12 months ending March 31 in the year preceding the injury.
The minimum temporary TD rate, also subject to annual adjustment based on increases in the SAWW, will climb to $137.45 in 2008 from $132.25 this year.
The new rates apply to dates of injury on or after January 1, 2008 and for claims subject to the two year rate adjustment under Labor Code section 4661.5.
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Heggeness, Sweet, Simington & Patrico, A P.C.
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