San Clemente, CA asked in Workers' Compensation for California

Q: Cola and 66.66% maximum Indemnity... California State Workers Compensation. Judges don't even know....

I was making $1,000 a week and injured. California Claim.  The insurance started paying me $666.67 per week indemnity.  2/3rds.  The following year a 13% cola was passed based on the SAWW.  State Average Weekly Wage. Paying me the additional 13% would pass the 66 2/3rds %    Is the COLA allowed? Or is 66-2/3rds always the maximum?  Should I have received a 13% increase from my original $666.67?  It is still below the  maximun TTD allowed by California. THIS IS NOT A CLOSED CLAIM.  Ongoing TTD being paid. " This is OVER 2 YEAR claim so converted to rate paid at current level per labor code.  Nothing to do with PTD. Lifetime COLA. Even judges cannot answer this.....

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1 Lawyer Answer
James L. Arrasmith
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Answered
  • Sacramento, CA
  • Licensed in California

A: Based on the information provided, it seems there is some ambiguity around whether the 13% COLA should have been applied in this case. Some key points:

- In California workers' comp, temporary disability (TTD) benefits are capped at 66 2/3% of the employee's average weekly wages at time of injury, subject to statutory minimums and maximums. This is meant to replace lost wages.

- There is typically an annual cost of living adjustment (COLA) based on state wage increases. However, TTD benefits are still subject to the 66 2/3% cap.

- In this case, it's unclear if applying the 13% COLA would have exceeded the 66 2/3% cap based on the original average weekly wage.

- Since this is an ongoing, open claim over 2 years old, there may be certain exceptions or nuances in the labor code regarding COLA applications.

- Ultimately there seems to be some gray area around whether the 13% COLA should have been applied on top of the existing $666.67 payment. Most likely it would depend on if the new amount exceeds 66 2/3% of original average weekly wage.

Without more specifics on the original average weekly wage amount and subsequent calculations, it's difficult to make a definitive determination. This does seem like a fairly complex issue that even judges may struggle with. Consulting an experienced California workers' comp attorney could help provide clarity on whether the COLA should have been allowed given the caps.

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