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New SAWW Figures Available from DOL

Saturday, June 16, 2007 | 0

By Jake Jacobsmeyer

The U.S. Department of Labor posted its 2007 1st Quarter statistics for earnings reported for Unemployment Claims for the preceding four quarters.

The information contained in these statistics will be used to determine increases in several workers' compensation benefits beginning on Jan. 1, 2008, based on the increase in the State Average Weekly Wage (SAWW).

The Department has reported California's Average Weekly Wage for the period ending on March 31, 2007, as $914.60. Last years reported SAWW was $880 and the increase of $34.60 in that index results in a 3.93% *fn 1 increase in the applicable benefits.

Benefits which are affected by the SAWW increase and the new effective rates are:

Benefit2007 Earnings2007 Rate2008 Earnings2008 Rate
Temporary Disability (Maximum)$1322.49$88166$1374.46$91631
Temporary Disability (Minimum)$198.38$13225$20618$13745
In addition to the increase in the minimums and maximums for TTD, the increase in the SAWW is also used to calculate increases in Life Pension Awards For Injuries On Or After Jan. 1, 2003. Such increase are stacked on top of increases that may have been incurred in prior years.

Therefore if an employee was receiving a permanent total disability award of $500 per week for an injury after Jan. 1, 2003, they would be entitled to a PTD benefit as of Jan. 1, 2007, increased by 4.96% or $524.80 per week ($500 x 1.04959) and on Jan. 1, 2008, the benefit would increase again to $545.42 ($524.80 x 1.0393).

If their award had been based on the maximum in effect for 2004 ($728), their benefit would have increased to $764.11 ($728 x 1.0496) on Jan. 1, 2007, and again on Jan. 1, 2008, increased to $794.14 ($764.11 x 1.0393).

On Life pension cases for awards between 70% and 99%, the calculation for increases in the payments, is not required until the life pension commences at the end of the award of PD.

The increase in the Minimum and Maximum TTD rates for 2007 means that increased vigilance is going to be required for application of Labor Code

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