Revised Rating Schedule to be Implemented in 2008

By Scott M. Tilley

The California Division of Workers’ Compensation has announced that it will unveil a revised permanent disability rating schedule in early 2008. The new schedule is expected to see a slight increase in permanent disability awards.

The revised rating schedule, with a planned implementation date of February 1, 2008, is said to adjust the multiplier for future earning capacity and this will result in moderate increases in the value of an award. There is also a planned revision of the age multiplier but this is not likely to cause any increase in the value of awards.

The multiplier is the number assigned to a body part within a range of 1, the lowest, to 8, the highest. The biggest changes are supposed to be with the value of spinal injuries. A DWC spokesperson has indicated that spines will go from a 5 multiplier to an 8, a significant increase. In contrast, psychiatric injuries will lower from a multiplier of 8 to a 4 which is a significant decrease. Similarly, knees will go from a 4 to a 2.

This revision to the rating schedule is being implemented at the discretion of the DWC. However, there are also several bills pending that could significantly increase the value of benefits for injured workers.

Senate Bill 936 has made it out of the state assembly and is headed for the Governor’s desk. SB 936 would double the number of weeks awarded for permanent disability. The bill is likely to be vetoed by Governor Schwarzenegger.

Another benefits bill, AB 338, seeks to modify the 104 week cap on temporary disability payments. As it stands now, the 104 week cap is within a 2 year period. AB 338 would retain the 104 week cap but would allow an applicant up to 5 years to meet that 104 cap. AB 338 would also start the 104 week countdown on the date of the injury rather than on the first date TTD is owed.

We will monitor these proposed changes and advise the community of their status and their impact.