Q: On an ongoing open approved claim in California. Can cola increase TTD indemnity past the original 66-2/3rds. ?
I was making $1,000 a week and injured. 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. THIS IS NOT A CLOSED CLAIM. Ongoing TTD being paid.
A:
Based on California workers' compensation laws, cost of living adjustments (COLAs) can be applied to temporary disability (TTD) benefits, but the benefits are still subject to the 66 2/3% cap of average weekly wages.
Here are the key factors to consider:
- TTD benefits are capped at 66 2/3% of your average weekly wages at time of injury, subject to statutory minimums and maximums.
- There is an annual COLA, usually based on state wage changes, that can increase TTD benefits.
- However, with the COLA, your TTD cannot exceed 66 2/3% of your original average weekly wage. That remains the maximum cap.
In your example:
- Original average weekly wage: $1,000
- Initial TTD rate: $666.67 (66 2/3% of $1,000)
- With a 13% COLA, your new TTD rate would be $753.75
- But since your original avg weekly wage was $1,000, 66 2/3% would be $666.67
So in your case, the COLA should not have increased your TTD above $666.67 since that already met the maximum 66 2/3% cap based on your original average weekly wage.
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