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December 2022: DWC Announces Temporary Total Disability Rates for 2023

07 Dec


Update Applicable to:
All employers.

What happened?
On November 17, 2022, the Division of Workers’ Compensation (DWC) announced that the 2023 minimum and maximum temporary total disability (TTD) rates will increase on January 1, 2023.

What are the details?
Effective January 1, 2023, The minimum TTD rate will increase from $230.95 to $242.86, and the maximum TTD rate will increase from $1,539.71 to $1,619.15 per week.

Labor Code Section 4453(a) (10) requires the maximum and minimum weekly earnings upon which TTD is based to be increased by an amount equal to a percentage increase in the State Average Weekly Wage (SAWW) as compared to the prior year. The SAWW is 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, 2022, the SAWW increased from $1,570 to $1,651—an increase of 5.15924 percent.

The calculation of the 2023 SAWW increase is as follows:

(2022 SAWW – 2021 SAWW)/2021 SAWW
$1,651 – $1,570 = 81/1570 = 5.15924%

The calculation of the minimum TTD rate for 2023 is as follows:

Minimum earnings for 2023 x SAWW increase x 2/3 = minimum TTD rate for 2023
$346.42 x 1.0515924 = $364.29 minimum TTD earnings x 2/3 = $242.86 minimum rate for 2023

The calculation of the maximum TTD rate for 2023 is as follows:

Maximum earnings for 2023 x SAWW increase x 2/3 = maximum TTD rate for 2023
$2,309.56 x 1.0515924 = $2,428.72 maximum TTD earnings x 2/3 = $1,619.15 maximum rate

Under Labor Code Section 4659(c), workers with a date of injury on or after January 1, 2003, who received 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.

SAWW figures may be verified using the U.S. Department of Labor’s data.

For more information, please see the links below:

USDIR Announcement

Unemployment Insurance Data


What do employers need to do?
Employers should review the links above and be aware of the increase in TTD rates.

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This communication is intended solely for the purpose of conveying information. The present post might incorporate hyperlinks directing readers to websites managed by third-party entities. The inclusion of any links within this communication is meant to serve as points of reference and could encompass opinion articles from various law firms, articles from HR associations, official websites, news releases, and documents of government agencies, and other relevant third-party sources. Vensure has no authority over these external websites and bears no responsibility for their content. Furthermore, Vensure does not endorse the materials present on these websites. The contents of this communication should not be interpreted as legal advice or as a legal standpoint concerning specific facts or scenarios. Nor should it be deemed an exhaustive compilation of facts potentially pertinent to federal, state, or local laws. It is strongly advised that employers solicit legal guidance from an employment attorney when undertaking actions in response to any legal updates provided. This is due to the possibility of future alterations occurring in federal, state, and local laws, regulations, as well as the directives and guidelines issued by governing agencies. These changes may transpire at any given time, potentially rendering certain portions of the content within this update void or inaccurate.

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