Member Alert: Update on SAWW and the Impact on 2022 WC Benefits

This morning the supervising actuary at the Dept. of Labor (DOL) in Washington confirmed to the Institute that the $1,164 State Average Weekly Wage (SAWW) figure for Q1 2021 that is currently posted on DOL’s Unemployment Insurance (UI) Data table is incorrect (the result of a programming issue) and significantly understates the SAWW.  Last week the DWC relied on that figure when it issued a Newsline advising that the SAWW declined between Q1 2020 and Q1 2021, and as a result there would be no change in the TD rates and other workers’ compensation benefits for 2022. 

Although the final wage and employment data for Q1 2021 have yet to be posted, the DOL did provide CWCI with the Q1 data it has compiled which indicate that the year-to-year increase in California’s SAWW will be in the range of 13.5% rather than the decrease announced in last week’s DWC Newsline.  This in turn will require a record increase in the minimum and maximum weekly TD rates, as well as other workers’ compensation benefits that are tied to SAWW increases. 

Once the DOL corrects the programming error and updates its data table with the final SAWW figure for Q1 2021, the Institute will confirm the exact amount of the 2022 benefit increases in an Exec Memo and Bulletin.  In the meantime, we caution against reliance on the information in last week’s Newsline for planning or programming purposes.

BY/