With a pending new year comes new rate changes for temporary disability. As seems to be the pattern, this means an increase in temporary disability rates for 2026.

For those that are interested, the increase is calculated in accordance with Labor Code §4453(a)(10) which requires the maximum and minimum rates to be increased by an amount equal to the percentage of increase in the state average weekly wage (SAWW) as compared to the prior year. The DWC and Labor Code notes that the SAWW is defined as 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^st of the calendar year preceding the year in which the injury occurred.” According to the DWC, in the 12 months ending March 31, 2025, the SAWW increased from $1,704.00 to $1,789.00. This is an increase of “4.98826%” ($1,789.00 – $1,704.00 = 85/1,704.00 = 4.98826%).

As a result of the above calculations, the minimum temporary disability rate will increase from $252.03 to $264.61. The maximum temporary total disability rate will increase from $1,680.29 to $1,764.11 per week.

The above rates will increase as of January 1, 2026.

It is recommended that you plan accordingly for the rate changes as specified by the DWC. The DWC also issued a reminder that under Labor Code §4659(c), workers with a date of injury on or after January 1, 2003, who are receiving life pension or permanent total disability benefits are also entitled to have their weekly life pension or permanent total disability adjusted based on the SAWW. As of the date of this dictation, the DWC is advising that due to the recent federal government shutdown, the 1^st Quarter Unemployment Insurance Data Summary, which contains the SAWW, has yet to be posted. It is anticipated that those numbers will be issued soon.

California continues to have some of the highest temporary disability rates in the nation. However, it is not the highest in terms of temporary disability rates. For an interesting comparison for each state, you can go to https://secure.ssa.gov/poms.nsf/lnx/0452150045. (For example, Iowa has a maximum workers’ compensation weekly payment of $2,274.00.) If you have any questions regarding temporary disability rates, please consult the DWC website or you can contact Duncan, Cassio, Lucchesi, Binkley & Van Doren.