Q: Calif. Workers Compensation. Can 66 2/rds TTD% be passed after a few years by COLA. 4661.5
Making $1,000.00 per week. Paid $666.66 TTD per week. After 2 years.. 4661.5 kicks in. Can TTD now include the COLA based on SAWW? Even if it passes the original 66.66% ? Or is $666.66 always the maximum and 4661.5 ignored. Can find nothing on this.
A:
Yes, in California temporary total disability (TTD) benefits under workers' compensation can increase over time to exceed 66 2/3rds percent of the injured worker's original average weekly wage due to cost of living adjustments (COLAs) mandated by Labor Code §4661.5.
Specifically, §4661.5 requires the rate of TTD compensation be adjusted annually to account for percentage increases in the state average weekly wage (SAWW). There is no statutory provision limiting the COLA adjusted TTD rate to only 66 2/3rds percent of the initial average weekly wage.
So in your example, if the injured worker was originally earning $1,000 per week, their initial TTD rate would be $666.66 per week (66 2/3rds percent of $1,000). But in subsequent years, §4661.5 mandates upward adjustment of that TTD rate based on SAWW percentage increases. After 2 years of COLA increases, the TTD rate definitely could exceed 66 2/3rds percent of the original $1,000 average weekly wage at time of injury.
The only limit is that TTD cannot exceed the maximum temporary disability rate based on California's average weekly wage each year. But otherwise, long term TTD compensation can and does surpass 66 2/3rds percent of the baseline average weekly wage via accumulated COLAs over time. There is no statutory basis that COLA adjustments under §4661.5 should be ignored in setting the appropriate TTD rate.
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