California Labor Code §4653 — Temporary Disability Rate

How is the §4653 California average weekly wage calculated?

The AWE figure used in the formula includes regular wages, overtime worked before the injury, bonuses, and tip income reported to the employer in the earnings history.

Under California Labor Code §4653 and the California earnings-calculation rules, the worker's average weekly wage is computed from earnings in the period preceding the date of injury, typically the highest-earning consecutive period that fairly represents the worker's earning capacity. The §4653 California calculation includes regular wages, overtime, shift differentials, and reasonably anticipated bonuses; it includes earnings from concurrent employers when both employers are insured. Two-thirds of that average weekly wage is the §4653 California weekly TD rate, capped at the statutory maximum and floored at the statutory minimum that apply on the date of injury.

What is the §4653 California statutory maximum and minimum?

The two-thirds rate is subject to both the statutory minimum floor and the annual maximum cap, constraining how low or high the TD payment can go regardless of actual earnings.

Under California Labor Code §4653, the California TD maximum and minimum rates adjust each January 1 for state average-weekly-wage growth. The §4653 California rule means a high-earning worker whose two-thirds rate exceeds the statutory maximum is paid the maximum, and a low-earning worker whose two-thirds rate falls below the statutory minimum is paid the minimum. The §4653 California rate that applies is set as of the date of injury and does not change during the life of the TD claim, even when SAWW continues to grow over multiple years of disability.

How long does §4653 California TD actually last?

Concurrent California employment requires the carrier to combine earnings from every California job into a single AWE figure for benefit calculation, not just the injured employer's wages.

Under California Labor Code §4653 and California Labor Code §4656, California TD payments continue until the earliest of: (1) the worker returns to regular work, (2) the treating physician declares the worker permanent and stationary (P&S), (3) the California Labor Code §4656 aggregate TD cap of 104 weeks within five years of the date of injury is reached, or (4) the longer 240-week cap applies for specific catastrophic injuries listed in §4656. The §4653 California TD rate runs throughout this period; once TD ends, California Labor Code §4658 permanent disability payments begin under the §4650 14-day timing rule.

How does §4653 interact with §4650 payment timing and §5814 penalties?

When the carrier underestimates AWE, the TD underpayment compounds over the entire disability period, a few dollars per week can add up to thousands in total unpaid benefits.

Under California Labor Code §4653 (rate), California Labor Code §4650 (payment timing), and California Labor Code §5814 (penalties), the California TD framework has three pieces. The §4653 California two-thirds-of-AWW rate sets the amount; the §4650 California rule requires the first TD payment within 14 days of knowledge of disability with an automatic 10% self-imposed late-payment increase when payment is late; and §5814 imposes a separate 25% penalty when payment is unreasonably delayed or denied. A California worker whose §4653 TD payment is both late under §4650 AND unreasonably delayed under §5814 can recover both the 10% increase and the 25% penalty for the same payment.

California's 2025 maximum Temporary Total Disability rate is $1,650/week, the January 2025 statutory adjustment by the Department of Industrial Relations published under the California Labor Code §4653 rate-setting framework. The Division of Workers' Compensation 2024 annual report shows approximately 230,000 California injured workers received TTD benefits that year, with California Labor Code §4650 setting the 14-day payment trigger that controls the cash-flow cadence. More context: the California workers' comp pillar and the 104-week cap at the California TD-cap card.

Related on yazdchilaw.com: California workers' compensation lawyer pillar · California Labor Code §5400.30 explained · California Labor Code §3700.6 explained · what to do if you can't go back to work after a workers' comp injury.