DWC Announces Temporary Total Disability Rates for 2025

The Division of Workers’ Compensation (DWC) has announced an increase in Temporary Total Disability (TTD) rates effective January 1, 2025. This adjustment is crucial for workers injured on the job, as TTD benefits help replace lost wages during recovery. As part of California’s workers’ compensation system, the minimum and maximum TTD rates are reviewed annually to ensure they keep pace with the state's average wages.

For 2025, the minimum TTD rate will increase from $242.86 to $252.03 per week, while the maximum TTD rate will rise from $1,619.15 to $1,680.29 per week.

What Drives These Changes?

The adjustment in TTD rates is governed by Labor Code Section 4453(a)(10), which mandates that these rates be tied to the State Average Weekly Wage (SAWW). The SAWW reflects the average weekly wage earned by employees in California who are covered by unemployment insurance. This figure is reported annually by the U.S. Department of Labor and serves as the benchmark for TTD rate changes.

For the 12 months ending March 31, 2024, the SAWW increased by 3.77588%, from $1,642 in 2023 to $1,704 in 2024. This increase ensures that TTD benefits remain aligned with wage growth, providing fair compensation for injured workers who are unable to work during their recovery period.

Understanding the Calculation

TTD benefits are designed to cover two-thirds of an injured worker’s average weekly earnings, subject to minimum and maximum limits. Here's a detailed look at how the 2025 rates are calculated:

These calculations ensure that injured workers receive compensation that reflects wage trends across the state, providing necessary financial support during their time away from work.

Implications for Life Pension and Permanent Total Disability Benefits

In addition to TTD adjustments, workers who sustained injuries on or after January 1, 2003, and are receiving Life Pension (LP) or Permanent Total Disability (PTD) benefits will also see an increase in their weekly payments. Under Labor Code Section 4659(c), these benefits are adjusted annually based on the SAWW. This ensures that long-term disability payments remain equitable, even years after the injury occurred.

Why This Matters for Medical Providers

For medical providers involved in workers’ compensation cases, understanding TTD rate adjustments is critical. These changes directly affect the benefits received by injured workers, and in turn, can influence payment timelines and collection processes for medical services rendered. As TTD rates increase, so does the potential for disputes over payment amounts, particularly in cases where workers’ compensation claims are delayed or denied.

At Medical Lien Management (MLM), we specialize in navigating the complexities of workers’ compensation collections, including disputes related to Temporary Total Disability. With over 30 years of experience, our team has successfully negotiated favorable settlements even with the most difficult insurance companies. Whether it’s managing denied claims, filing appeals, or handling litigation, we ensure that medical providers receive the payments they’re owed.

Ensuring Timely Payments and Maximizing Revenue

At MLM, we understand the impact of delayed payments on a medical provider’s revenue cycle. By staying on top of regulatory changes like TTD rate adjustments and leveraging our expertise in workers’ compensation collections, we help providers secure timely payments. Our data-driven insights, proprietary jet filing system, and robust litigation support enable us to maximize collections, ensuring that providers get compensated without unnecessary delays.

Conclusion

The 2025 TTD rate increase underscores the importance of keeping workers’ compensation benefits in line with wage growth, ensuring fair financial support for injured workers. For medical providers, understanding these changes is key to managing workers’ comp cases effectively. As a leader in lien management and workers' compensation collections, Medical Lien Management is here to support providers in navigating these updates, handling disputes, and securing the payments they deserve.

Contact MLM today to learn more about how we can help your practice manage workers' compensation collections efficiently and increase your revenue.