Q: California Workers Compensation Max TTD Based on COLA 4661.5
Can TTD ever pass 66-2/3rds after a few years due to 4661.5 increase in SAWW and COLA. i.e. Making $1,000 per week. TTD pays $666.66 per week. Two years later can COLA be added per SAWW that increases TTD past
66-2/3rds of $666.66 Can you cite why not? Or where does it say either way?
A:
Yes, in California temporary total disability (TTD) benefits under workers' compensation can increase over time to exceed 66 2/3 percent of the injured worker's original average weekly wage due to cost of living adjustments (COLAs). This is based on California 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 provision limiting the COLA adjusted TTD rate to only 66 2/3 percent of the initial AWW.
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 2/3% of $1,000). But in subsequent years, §4661.5 mandates upward adjustment of that TTD rate based on SAWW percentage increases. After multiple years of COLA increases, the TTD rate definitely could exceed 66 2/3 percent of the original $1,000 AWW at time of injury.
There are no statutes or cases that say TTD rate is forever fixed at only 66 2/3 percent initial AWW. So long term TTD can definitely surpass 66 2/3 percent baseline over time with accumulated COLAs. The only limit is that TTD cannot exceed the applicable statutory maximum wage rate - but that allows plenty of room for growth above original 66 2/3 percent AWW.
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