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California Labor Code §4654 — TD Statutory Minimum and Maximum
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By Eman Yazdchi, Esq. · Certified Specialist in Workers' Compensation Law, State Bar of California Board of Legal Specialization · Cal Bar #285231
If the injury causes temporary partial disability, the disability payment is two-thirds of the weekly loss in wages during the period of such disability. However, such disability payment shall be reduced by the sum of unemployment compensation benefits and extended duration benefits received by the employee during the period of temporary partial disability.
What does California Labor Code section 4654 establish?
Section 4654 protects low-wage workers with a statutory minimum temporary disability floor and caps the maximum so high-wage workers do not receive more than the statute allows.
Section 4654 is the rule that sets the statutory minimum and maximum for temporary disability indemnity payments in California workers' compensation, protecting low-wage workers with a floor and capping high-wage workers so the system remains self-sustaining. The bounds control every TD calculation. Certified Specialist Eman Yazdchi (California Board of Legal Specialization, State Bar of California) audits every TD calculation against these bounds on every file.
California Labor Code section 4654 sets the statutory minimum and maximum that frame the California Labor Code §4653, California's two-thirds-of-AWW temporary disability rate, temporary disability rate. Under section 4654, a California worker whose two-thirds-of-average-weekly-wage rate exceeds the maximum is paid the maximum, and a worker whose two-thirds rate falls below the minimum is paid the minimum. The section 4654 California rates adjust annually each January 1 for state average-weekly-wage growth, and the rates that apply are fixed as of the California worker's date of injury. The section 4654 California floor and ceiling together prevent runaway high-earner TD rates and ensure low-earning California workers receive a livable wage-replacement floor.
What are the current section 4654 California minimum and maximum rates?
The statutory minimum ensures every injured worker receives at least the floor amount regardless of how low the worker's actual earnings were before the injury.
Under California Labor Code section 4654 and the annual SAWW adjustment, California TD rates climb modestly each January 1. As of 2026, the section 4654 California maximum is roughly $1,650 per week and the section 4654 California minimum is roughly $230 per week, both figures move with the state average-weekly-wage growth published each year by the Department of Industrial Relations. The section 4654 California exact rates that apply in any individual claim are the figures in effect on the worker's date of injury, not the date the claim is paid. A California 2024 injury uses 2024 section 4654 California rates throughout the life of the TD claim.
How is the section 4654 California maximum applied to a high-earning worker?
The statutory maximum caps the TD rate for high-income workers, preventing wage replacement from exceeding the system's fiscal limits regardless of the worker's actual average weekly earnings.
Under California Labor Code section 4654, when the California worker's two-thirds-of-AWW rate computed under California Labor Code §4653 exceeds the statutory maximum, the section 4654 California rule caps the weekly TD at the maximum. A California worker earning $3,000 per week pre-injury has a California Labor Code §4653 two-thirds rate of $2,000 per week, but the section 4654 California maximum (roughly $1,650 in 2026) caps the actual weekly TD payment. The section 4654 California maximum applies regardless of how high the underlying average weekly wage was; the California worker absorbs the gap between two-thirds-AWW and the statutory ceiling as uncompensated wage loss during recovery.
How is the section 4654 California minimum applied to a low-earning worker?
Both bounds are adjusted each year by the DWC and vary based on the date of injury, earlier injuries carry lower maximums that may differ significantly from current-year caps.
Under California Labor Code section 4654, when the California worker's two-thirds-of-AWW rate falls below the statutory minimum, the section 4654 California rule floors the weekly TD at the minimum. A California part-time worker earning $200 per week pre-injury has a California Labor Code §4653 two-thirds rate of roughly $133, but the section 4654 California minimum (roughly $230 in 2026) floors the actual weekly TD payment higher. The section 4654 California minimum makes the comp wage-replacement benefit meaningful for low-earning California workers who would otherwise receive a very small two-thirds rate. The section 4654 California floor applies regardless of how low the pre-injury earnings were.
How does section 4654 California interact with §4650 timing, §4656 cap, and §5814 penalties?
Carriers routinely apply the wrong year's maximum or miscalculate the minimum floor, resulting in underpayments that compound over the entire temporary disability period.
Under California Labor Code section 4654 (rate floor and ceiling), California Labor Code §4650 (14-day payment timing), and California Labor Code §5814 (unreasonable-delay penalties), the California TD payment framework operates in layers. The section 4654 California rate caps frame the underlying California Labor Code §4653 two-thirds rate; the California Labor Code §4650 California rule then requires payment within 14 days of knowledge of disability with an automatic 10% self-imposed late-payment increase; and California Labor Code §5814 imposes a separate 25% penalty when payment is unreasonably delayed or denied. The California Labor Code §4656 California 104-week cap then limits how long the section 4654-framed TD payments may run.
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.
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What does California Labor Code section 4654 actually establish for TD payments?
California Labor Code section 4654 sets the statutory minimum and maximum that frame the California Labor Code §4653 temporary disability rate. Under section 4654, a California worker whose two-thirds-of-AWW rate exceeds the maximum is paid the maximum, and a worker whose two-thirds rate falls below the minimum is paid the minimum. The section 4654 California rates adjust annually each January 1 for state average-weekly-wage growth, and the rates that apply are fixed as of the California worker's date of injury. The section 4654 California floor and ceiling together prevent runaway high-earner TD rates and ensure low-earning California workers receive a livable wage-replacement floor.
What are the current section 4654 California minimum and maximum TD rates?
Under California Labor Code section 4654 and the annual SAWW adjustment, California TD rates climb modestly each January 1. As of 2026, the section 4654 California maximum is roughly $1,650 per week and the section 4654 California minimum is roughly $230 per week, both figures move with the state average-weekly-wage growth published each year by the Department of Industrial Relations. The section 4654 California exact rates that apply in any individual claim are the figures in effect on the worker's date of injury, not the date the claim is paid. A California 2024 injury uses 2024 section 4654 rates throughout the life of the TD claim.
How is the section 4654 California maximum actually applied to a high-earning worker?
Under California Labor Code section 4654, when the California worker's two-thirds-of-AWW rate computed under California Labor Code §4653 exceeds the statutory maximum, the section 4654 California rule caps the weekly TD at the maximum. A California worker earning $3,000 per week pre-injury has a California Labor Code §4653 two-thirds rate of $2,000 per week, but the section 4654 California maximum (roughly $1,650 in 2026) caps the actual weekly TD payment. The section 4654 California maximum applies regardless of how high the underlying average weekly wage was; the California worker absorbs the gap between two-thirds-AWW and the statutory ceiling.
How is the section 4654 California minimum applied to a low-earning worker?
Under California Labor Code section 4654, when the California worker's two-thirds-of-AWW rate falls below the statutory minimum, the section 4654 California rule floors the weekly TD at the minimum. A California part-time worker earning $200 per week pre-injury has a California Labor Code §4653 two-thirds rate of roughly $133, but the section 4654 California minimum (roughly $230 in 2026) floors the actual weekly TD payment higher. The section 4654 California minimum makes the comp wage-replacement benefit meaningful for low-earning California workers who would otherwise receive a very small two-thirds rate. The section 4654 floor applies regardless of how low the pre-injury earnings were.
How does section 4654 California interact with §4650 timing, §4656 cap, and §5814 penalties?
Under California Labor Code section 4654, California Labor Code §4650 (14-day payment timing), California Labor Code §4656 (104-week cap), and California Labor Code §5814 (unreasonable-delay penalties), the California TD payment framework operates in layers. The section 4654 California rate caps frame the underlying California Labor Code §4653 two-thirds rate; the California Labor Code §4650 California rule requires payment within 14 days of knowledge of disability with a 10% self-imposed late-payment increase; and California Labor Code §5814 imposes a separate 25% penalty when payment is unreasonably delayed or denied. The California Labor Code §4656 California aggregate cap then limits how long section 4654-framed TD payments may run.
Last reviewed by Eman Yazdchi, Esq., June 2026.
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