Underpaid While Injured? How to Calculate Your Temporary Disability Rate the Right Way
If you’ve been injured at work and can’t return—either temporarily or permanently—you may be entitled to temporary disability benefits under California workers’ compensation law. These benefits are meant to replace your lost wages while you’re off work recovering. But how much should you actually be getting paid each week?
This is one of the most critical questions in any California workers’ compensation case, and too often, injured workers are shortchanged. The key to getting paid what you're owed comes down to how your Average Weekly Wage (AWW) is calculated under California Labor Code § 4453.
Let’s break it down.
What Is Temporary Disability in California?
Temporary disability (TD) is a benefit paid to injured workers who can’t return to work because of their injuries. There are two types:
Temporary Total Disability (TTD): If you can’t work at all
Temporary Partial Disability (TPD): If you can work reduced hours
You’re entitled to two-thirds of your average weekly wage (AWW), paid every two weeks, up to 104 weeks within a five-year period—with exceptions for certain severe injuries.
But here’s the key: how that “average weekly wage” is calculated can make or break your case.
How Your Average Weekly Wage (AWW) Is Calculated: 4 Methods Under Labor Code § 4453(c)
1. You Work 30+ Hours a Week / 5+ Days (Labor Code §4453(c)(1))
This is the most common method for calculating AWW.
Formula:
AWW = Number of days worked per week × Daily earnings OR AWW = Total weekly hours × Hourly wage
Example:
Let’s say you’re a warehouse worker making $25/hour, working 40 hours/week.
$25/hour × 40 hours = $1,000 AWW Temporary Disability Rate = 2/3 of $1,000 = $666.67/week
If you worked 6 days a week at $150/day, then:
6 × $150 = $900 AWW → TD = $600/week
2. You Work Multiple Jobs (Labor Code §4453(c)(2))
If you had two or more jobs at the time of your injury, you are entitled to combine income from both jobs when calculating your AWW.
Example:
You work:
3 days/week at a grocery store, 5 hours/day at $20/hour
2 days/week as a private math tutor, 4 hours/day at $30/hour
Let’s calculate the weekly total:
Grocery: 3 × 5 × $20 = $300/week
Tutor: 2 × 4 × $30 = $240/week
Total AWW = $540
TD Rate = 2/3 of $540 = $360/week
⚠️ Caution: If the injury occurred at the lower-paying job, sometimes only that job’s wage is used unless both jobs are concurrent employment. A good attorney can argue for inclusion.
3. You Earn Commission or Irregular Pay (Labor Code §4453(c)(3))
If your pay varies from week to week (e.g., sales commission, performance-based), your AWW is based on a reasonable period of time, not exceeding one year, that reflects your true earning potential.
Example:
You’re a car salesperson and your past 6 months of commission averaged $1,500/week even though one week you made $500 and another $2,500.
Your AWW is $1,500
TD Rate = $1,000/week
4. Your Earning Capacity Is Higher Than Your Actual Wages (Labor Code §4453(c)(4))
This is for workers who work part-time, just got hired, just got promoted, or were on track to earn more.
Example 1:
You’re a student working part-time at Domino’s for $16/hour, 20 hours/week = $320/week. But you were about to graduate with a Ph.D. in biomedical science and had a job offer for $90,000/year (~$1,730/week).
An attorney could argue for AWW based on future earning capacity.
Example 2:
You just got a raise to $28/hour, but your wage statements only reflect the old $22/hour rate.
A fair AWW should be: $28 × 40 = $1,120/week → TD = $746.67/week
What Else Counts Toward Your Wages?
Many insurance adjusters undervalue AWW by ignoring fringe benefits or informal income. But the law says:
✅ Tips (even undocumented)
✅ Cash payments
✅ Free housing or rent credits (like property managers)
✅ Car stipends / mileage reimbursements
✅ Bonuses, overtime, or shift differential pay
Example:
You earn:
$600/week base wage
$150/week in cash tips
Free rent worth $300/month → $75/week
Total AWW = $600 + $150 + $75 = $825/week
TD = $550/week
💡 Pro tip: You are not required to show tax returns to prove cash or tips. Insurance companies cannot demand your IRS filings.
✅ Why This Matters
If your AWW is lowballed by just $200, you could lose over $13,800 across the two-year cap for temporary disability. That’s your money—and you only get one chance to get it right.
📞 Call Lee Partners Law: Get Paid What You're Owed
Don’t leave money on the table. At Lee Partners Law, we know how to make sure every dollar counts. Whether it's cash tips, gig jobs, or fringe benefits, we dig deeper to make sure your temporary disability rate reflects your true earnings.
Attorneys David Lee and Michael Lee are former defense lawyers who now fight for injured workers across California. We know every trick insurance companies use—and we shut them down.
Contact us today for a free consultation. We’ll review your case and your wage history and fight to make sure you’re getting what you’re entitled to. No recovery, no fee. CALL OR TEXT 310-295-0822
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