Arbitrary Cap on Temporary Disability Benefits - The Martin Newsletter

Volume 1, Issue 4 The Martin Newsletter April 2006

Arbitrary "Cap" on Temporary Disability Benefits

Governor's "reform" places an arbitrary “cap” on Temporary Disability benefits, no matter how severe the injury

Temporary Total Disability (TTD) benefits should replace an injured worker’s wages while he or she is recovering from a work injury. Prior to Governor Schwarzenegger's so-called "reform" of the California Workers’ Compensation system (SB899), in most circumstances the workers’ compensation insurance company was required to pay TTD until the injured worker was released from treatment or released to return to work.

The governor’s new law now reads in relevant part:

"Aggregate disability payments for a single injury occurring on or after the effective date of this subdivision, causing temporary disability shall not extend for more than 104 compensable weeks within a period of two years from the date of commencement of temporary disability payment." [Labor Code Section 4656(c)(1)]

It is anticipated that certain injured workers will find their TTD payments cut off by the workers’ compensation carriers on April 19, 2006 - two years after the law was signed, since insurance adjusters will no doubt argue that they have paid 104 weeks of TTD they owe under the new law.

Time will tell if this constitutionally suspect law will survive the scrutiny of the appellate courts, and how the law applies in the real world. But one thing is certain - those with work injuries so serious that they are still in need of medical treatment and rehabilitation two years after a work injury will not only be suffering the physical hardship of the injury, but financial hardship as well.

If you, or someone you know, has their TTD payments cut off by an insurance adjuster under the new law, contact us at 714-547-5025.

Fighting For Injured Workers' Rights in California

Thomas F. Martin
Professional Law Corporation
2107 North Broadway, Suite 206
Santa Ana, California 92706
(714) 547-5025
www.thomasfmartinplc.com

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