Workers Compensation Wage Benefits Increase January 1, 2015
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The rebound in the California economy has led to increased employment and higher average weekly wages. This average is the benchmark for temporary total disability wages paid to workers injured on the job. As a result, the maximum weekly temporary total disability benefits for claims with injury dates after January 1, 2015 will increase to $1,103.29. The minimum weekly wage rate increases to $165.49.
This means there will be little to no incentive for some workers to return to work on modified duty and means it is even more important for employers to offer modified duty because disability benefits are not paid if the employer offers an acceptable modified position.
An injured worker making $86,000 annually before their injury can stay home and collect tax free benefits that will be close to their pre injury take home.
This increase will also impact the costs of permanent total disability and other injured worker settlements.
The costs of these increases are passed on to employers and in addition individual employer experience modifications will increase as well.
About the Author:
Andreini & Company is a preferred CIOMA partner.
For more information on controlling workers’ compensation costs or a copy of "The Benefits of a Return to Work Program" contact Dan Centoni at Andreini & Company, dcentoni@andreini.com
