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Temporary disability benefits in California

By Richard Vaughn CPCU, ARM, AIS. Reviewed November 8, 2026. Richard is an insurance professional, not an attorney. This page explains the law; it is not legal advice.

What temporary disability is

Temporary disability (TD) replaces part of the wages you lose while you are recovering from a work injury and a doctor says you cannot do your usual job, or your employer cannot give you work within your restrictions. It is paid by your employer's workers' compensation claims administrator, every two weeks, until you return to work, are released to work, or reach the point where your condition is not expected to improve further. It is one of the five benefits California workers' compensation provides, alongside medical care, permanent disability, the supplemental job displacement voucher and death benefits.

There are two kinds. Temporary total disability (TTD) is paid when you cannot work at all. Temporary partial disability (TPD) is paid when you can work some hours or lighter duty but earn less than before; it pays two-thirds of the difference. Most of this page is about TTD, which is what people mean by "TD."

How much it pays

TD is two-thirds of your average weekly earnings at the time of injury (Labor Code §4653), subject to a minimum and maximum that change every January 1 with the state average weekly wage (Labor Code §4453). For injuries in 2026 the weekly rate cannot be below $264.61 or above $1,764.11. The how much workers' comp pays page has the calculator and the full table back to 2013.

Earnings are gross, before taxes, and include overtime, bonuses, tips and the value of some benefits, as well as wages from a second job you held at the time of injury. The claims administrator computes the figure under Labor Code §4453 and must tell you in writing how it arrived at the rate.

If TD is still being paid two years or more after the injury, each later payment is computed at the rate schedule in effect on the date of payment rather than the year of injury, unless that would lower the payment (Labor Code §4661.5). A worker hurt in 2024 who is still on TD in 2026 is paid at 2026 figures.

When payments start

Two things have to be true before the first TD check is owed: the claims administrator knows about the injury, and a doctor has said you cannot do your usual work. Once both are known, the first payment is due within 14 days (Labor Code §4650(a)). Payments then continue every two weeks on the day the first payment set (Labor Code §4650(c)).

There is a 3-day waiting period. No TD is payable for the first 3 days of disability unless you are hospitalized as an inpatient or the disability continues beyond 14 days; in either case the waiting period is paid retroactively. The day of injury counts as a day of disability unless you were paid full wages for it (Labor Code §4652).

If the claims administrator cannot yet tell whether TD is owed, for example because the claim is still being investigated, it must send you a delay letter within the 14 days explaining why, what information it needs and when it expects to decide. Delays generally run no longer than the 90 days the law allows to accept or deny a claim; the deadlines page covers the presumption that follows.

The 10% late-payment increase

A TD payment that is late is increased by 10%, automatically, and the increase is paid to you without a request (Labor Code §4650(d)). The rule has three exceptions: payments due before, or within 14 days after, the claim form is filed; a period in which your employer is continuing your salary under a continuation plan; and the first 14 days when the claims administrator cannot yet determine whether TD is owed and sends the delay letter described above. A delay that is unreasonable, rather than merely late, can draw a further penalty from a judge under Labor Code §5814.

Taxes

TD benefits are not subject to federal, state or local income tax, and nothing is withheld for Social Security, union dues or retirement contributions. The amount on the check is the amount you keep.

TD and State Disability Insurance

Temporary disability and State Disability Insurance (SDI) are different programs. TD is paid by the workers' comp claims administrator for a work injury. SDI is the Employment Development Department's program for non-work disabilities, funded by the deduction on your pay stub. You do not normally receive both for the same period.

EDD will pay SDI in three situations connected to a work injury: the claims administrator has delayed or denied the claim; the TD weekly rate is lower than your SDI rate, in which case SDI can pay the difference; or workers' comp is covering only medical treatment. If SDI pays while the workers' comp claim is pending, EDD files a lien and is repaid from the workers' comp benefits when the claim is accepted or settled. EDD's own advice is to file for SDI if you are unsure and let it decide. The SDI and workers' comp page covers the rules in detail.

When TD ends

TD stops when one of four things happens: you return to work; your doctor releases you to your usual work; your doctor says your condition has improved as much as it is likely to, which is called permanent and stationary (P&S) or maximal medical improvement (MMI); or you reach the time limit. For most injuries the limit is 104 weeks of payments within five years of the date of injury; nine listed conditions carry 240 weeks (Labor Code §4656(c)). The how long you can stay on workers' comp page explains the limits and what follows them.

When TD ends because you are P&S, the claims administrator must start permanent disability payments within 14 days of the last TD payment if the doctor has found permanent effects (Labor Code §4650(b)), and must send a notice explaining why TD ended. If TD stops without a notice, ask the claims administrator first, then an Information and Assistance officer at the DWC (1-800-736-7401), who will look into it without charge.

Returning to work on restrictions

If your doctor releases you to modified work and your employer offers a job within the restrictions, TD stops when you start it; if the modified job pays less than your pre-injury earnings, temporary partial disability pays two-thirds of the difference. If your employer has no work within the restrictions, TD continues. You cannot be required to do work outside the restrictions your doctor wrote, and your employer cannot retaliate against you for the claim (Labor Code §132a).

Questions people ask

Richard Vaughn CPCU, ARM, AIS

Richard Vaughn spent 35 years in commercial property and casualty insurance, most of it in workers' compensation: running a self-insured group, auditing premiums, and implementing claims systems for carriers and third-party administrators. He is not an attorney. dickvaughn.com