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By Eman Yazdchi, Esq. · Certified Specialist in Workers' Compensation Law, State Bar of California Board of Legal Specialization
In California, Labor Code §4654 sets the statutory minimum and maximum on the temporary disability rate — the floor and ceiling that frame the §4653 two-thirds-of-average-weekly-wage benefit. The §4654 California rates adjust annually for state average-weekly-wage growth and are fixed as of the date of injury.
California Labor Code section 4654 sets the statutory minimum and maximum that frame the California California Labor Code §4653 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.
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.
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.
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.
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.
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Tap to call →Last reviewed by Eman Yazdchi, Esq., May 2026.
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