California comp benefits to increase with average weekly wage

California's state average weekly wage is up. It means workers' comp benefits and some reserves will be impacted, according to the California Workers' Compensation Institute.

The increase of more than 2.4 percent in wages for the year ending March 31, 2011, will push up temporarily disability rates for 2012 work injury claims. Maximum TTD rates will jump to $1,010.50 from the current $986.69 per week while the minimum rate will be $151.57 instead of the current $148, the CWCI said.

Legislative reforms signed into law in 2002 mandated that benefits payments be tied to the annual average weekly wage paid to employees covered by unemployment insurance as reported by the U.S. Department of Labor. The rates for 2011 were not adjusted, as the SAWW had declined by half a percent.

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In addition to the increases in the temporary disability rates for 2012, payments on existing claims that are eligible for more than 104 weeks of temporary disability benefits must be adjusted, the CWCI said. Also, cost-of-living increases are required for workers injured on or after Jan. 1, 2003, who have a permanent total disability or a permanent disability rated at least 70 percent but less than 100 percent.

"Benefit adjustments are tricky and penalties attach for failure to pay correct amounts," the CWCI said, "so claims administrators should review benefit changes with counsel to confirm that the adjustments are correct."

Read more at the WorkersComp Forum homepage.

July 7, 2011

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