SAWW Increase Bumps California Workers' Compensation Benefits for 2025

New U.S. Department of Labor data show California’s State Average Weekly Wage (SAWW) rose 3.77588 percent in the 12 months ending March 31, 2024, which as of January 1, 2025 will require increases in workers’ compensation weekly temporary disability rates and several other workers’ compensation benefits that are tied to the SAWW.  

Labor Code §4453(a)(10) ties minimum and maximum temporary total disability (TTD) and permanent total disability (PTD) rates to changes in the SAWW, which is the average weekly wage paid to employees covered by unemployment insurance as reported by the U.S. Department of Labor for California for the 12 months ending March 31 in the year preceding the injury.  The SAWW for the 12 months ending March 31, 2023 was $1,642, while the SAWW for the 12 months ending March 31, 2024 was $1,704 (an increase of 3.77588 percent).  As a result, claims administrators will need to increase TTD and PTD rates for AY 2025 claims as noted below.

                                          TTD/PTD Minimum Weekly Rate       TTD/PTD Maximum Weekly Rate

AY 2024 Claims                              $ 242.86                                               $ 1,619.15

AY 2025 Claims                               $ 252.03                                               $ 1,680.29         

In addition to the new rates for AY 2025 claims, the SAWW increase will also affect some existing claims:

• LC §4661.5 requires any TTD payment made 2 or more years after the injury date to be based on the TTD rate in effect on the date of the payment, unless that would reduce the amount paid, so claims administrators will need to adjust payments on existing claims that are eligible for more than 104 weeks of TTD [g., those involving any of the nine long-term injuries noted in LC §4656(c)(3)].
• LC §4659(c) provides a cost-of-living adjustment (COLA) for workers injured o/a January 1, 2003 who have either a PTD or a life pension, so as of January 1, 2025 claims administrators will need to increase these workers’ PTD and life pension payments to reflect the 3.77588 percent increase in the SAWW.
• LC §4702(b) requires that unless the WCAB has ordered otherwise, death benefits “shall be paid in installments in the same manner and amounts as TTD indemnity would have to be made to the employee,” so as of January 1, 2025, the weekly maximum rate for death benefit installment payments will increase to the new TTD maximum of $1,680.29 for 2025. At the same time, the minimum weekly rate for death benefit installment payments will climb to $252.03. 

CWCI encourages claims administrators to review all changes in benefit rates and payments with counsel to assure that adjustments are accurate.  For reference, California’s SAWW for the 12 months ending March 31, 2023 and for the 12 months ending March 31, 2024 can be found in the U.S. Department of Labor Unemployment Insurance database, which is posted at https://oui.doleta.gov/unemploy/data_summary/DataSum.asp. 

The DWC is aware that the DOL data tables have been updated and provided the Institute with the TD rates shown above.  The Division will issue a DWC Newsline announcing the 2025 rates, which will be posted on DWC’s website here.  To alert the community, CWCI is also issuing a Bulletin and news release which, along with this memo, will be available to members who log on to our website at www.cwci.org.

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