California is raising workers ‘ compensation benefits due to a rise in wages and living costs over the past year. This will increase the amount of coverage in addition to insurance rates. Keep reading to learn more.
Why Benefits Are Changing
Over the past few years, the cost of living has increased exponentially and wages – albeit at a lower rate – have also increased. According to the U.S. Bureau of Labor Statistics Report, California’s Combined Statistical Area indicates a 5.8% increase in compensation costs for industry workers particularly in the Los Angeles and Long Beach areas. This study also showed a 5.5% increase annually.
Los Angeles was among the top five metro areas with the highest rates of wage increase since 2020. Among the other cities are:
- Miami with a total wage increase of 6.5%
- Minneapolis with a total wage increase of 5.6%
- Detroit with a total wage increase of 5.5%
- Boston with a total wage increase of 5.4%
When wages and compensation rates increase, there is often a supplemental increase in workers compensation coverage. This is due to the fact that workers’ comp almost always includes coverage for lost wages and other costs.
The New Benefits
Because of the wage increases, the workers compensation temporary total disability and permanent total disability rates for work injury claims will be increasing according to California Workers; Compensation Institute standards.
These benefits currently stans at $1,539.17 per week but will increase by an additional $79.44 to $1,619.15 per week for injuries that occur on or after January 1, 2023. Additionally, State Average Weekly Wage will increase compensation rates by $11.91 for a total of $242.8 for accidents in 2023.
Other workers’ comp benefits like temporary total disability, life pensions, and death claim benefits will also be increasing. It is crucial that employers keep up with these increases. The penalties for unpaid benefits are severe and if there are grounds to support an underpaid benefits claim workers may have the right to file a lawsuit.
Making a Claim
If you suffered an injury on the job, you may be entitled to workers compensation. After an injury or accident, you should report the injury immediately to a supervisor, boss, manager, or closest executive. Always seek medical treatment or contact emergency medical services. You must file a workers claim with your employer as soon as possible.
If your claim is denied by the employer’s insurance company or the employer fails to produce sufficient compensation, you could have grounds for further legal action.