What happened?

As a reminder for California employers, the temporary total disability (TTD) minimum and maximum rates will increase on January 1, 2026.

Overview

What Is Changing?

• Minimum TTD: $264.61/week (from $252.03).
• Maximum TTD: $1,764.11/week (from $1,680.29).
• SAWW Adjustment: +4.98826% (from $1,704 to $1,789) per LC §4453(a)(10).
• LP/PTD Indexing: Weekly life pension (LP) and permanent total disability (PTD) benefits for DOI greater than or equal to Jan 1, 2003, adjust with SAWW under LC §4659(c)

Why this matters: Accurate TTD calculations (two thirds of earnings, subject to min/max) are required; underpayment can trigger penalties and reprocessing of claims.

Action Steps for Compliance

• Update benefit calculators and claims/payroll systems for 2026 rates
• Re‑audit open claims rolling into 2026 to confirm correct payments
• Verify SAWW data and document rate changes in claim notes and notices
  
  

Additional Information

Key Risks for Employers:

• Misapplying the min/max caps or the two thirds formula.
• Failing to adjust LP/PTD rates tied to SAWW.
• Using outdated SAWW figures or earnings bases in benefit systems.

For additional details: DIR Press Release – DWC announces temporary total disability rates for 2026 (November 21, 2025)

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