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As of January 1, 2020, the rates for temporary total disability, death benefits, permanent total disability, and life pension rates will increase. This is because the State Average Weekly Wage (SAWW) for California will increase to 3.84013 percent, up from 2.971 percent, thereby increased any benefits tied to an employee’s weekly earnings.
The weekly minimum for temporary total disability will increase to $194.91 for injuries on or after January 1, 2020 (up from the previous weekly wage minimum of $187.71). The weekly maximum temporary total disability rate will increase to $1,299.43 for injuries on or after January 1, 2020 (up from $1,251.38).
Per Labor Code section 4702(b), death benefits are paid in the same manner and amount as temporary total disability benefits. Therefore, the rate increase for death benefits will mirror the rates for temporary total disability rates – a minimum of $194.91, and a maximum of $1,299.43.
For life pensions and permanent total disability, the rates will also increase in accordance with the SAWW increases. For 2020, the Department of Industrial Relations indicates that the SAWW for PTD and life pensions is $1,325.00, up from $1,242.78 in 2019.
Additionally, as of January 1, 2020, the Internal Revenue Service announced that the mileage rates will decrease to 57.5 cents per mile, down from 58 cents per mile. Please note that the 57.5 cent rate only applies to travel taking place in 2020. Any travel that took place in 2019 should still be paid at the 58 cents per mile rate.
What this means for you:
For injuries on or after January 1, 2020, the benefit rates paid to injured employees must comply with these increases. Thus, employers should indicate in their records which claims must comply with these benefits and discuss the changes with their attorney to ensure the correct adjustments to benefit payments are made.
Daniel Cadia, Esq.
Los Angeles Office