State Average Weekly Wage Loses Ground: Rates for Temporary Disability & Permanent Total Disability Stay the Same In 2011
June 24, 2010
California's minimum and maximum temporary total disability and permanent total disability rates will not change for injuries in calendar year 2011. The State's Average Weekly Wage (SAWW) shrank to $979.90 from $984.83 in the 12 month period ending March 31, 2010, according to California statistics from the U.S. Department of Labor. This is a reduction of roughly 5 percent.
Labor Code section 4453(a)(10) indicates that the "state average weekly wage" means the average weekly wage paid by employers to employees covered by unemployment insurance as reported by the United States Department of Labor for California for the 12 month period ending each March 31. Any change in TTD or PTD for a particular calendar year "shall be increased by an amount equal to the percentage increase in the state average weekly wage as compared to the prior year."
Since there is no mention of decreases in average weekly wage in the statute, we never obtain a decrease in the rates for TTD and PTP. As there is no increase in the SAWW for 2011, the indemnity rates remain the same as they were for calendar year 2010.
A further consideration: When it comes to commutations of attorneys' fees and benefits subject to the cost of living adjustment, the DEU has worked on their assumption that the yearly increase averages out at 4.7%. For 2010, the increase was under 3% and now it is in negative ground. This calls into question that 4.7% assumption, which should be questioned whenever a COLA commutation situation arises. Reduction from that inflated figure could save defendants a significant amount of money in these cash-strapped times.
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