Workers' Comp Changes in California for 2026
What is new in California workers' compensation for 2026: updated benefit rates, legislative changes, Cal/OSHA enforcement priorities, and medical fee schedule updates.
Key Changes at a Glance
- TD Rate Increase: Minimum $265/week, Maximum $1,764/week
- COLA adjustments for permanent disability payments
- Cal/OSHA enforcement expansion: heat illness, workplace violence (SB 553)
- Medical fee schedule updates and UR process changes
- Electronic filing updates at the WCAB
1. 2026 Temporary Disability Rate Changes
The DIR adjusts TD rate minimums and maximums annually based on the State Average Weekly Wage (SAWW). For injuries occurring on or after January 1, 2026, the updated rates apply.
| Rate | 2025 | 2026 |
|---|---|---|
| Minimum TD | $253/week | $265/week |
| Maximum TD | $1,687/week | $1,764/week |
Your actual TD payment is two-thirds (66.67%) of your pre-injury average weekly wage, subject to these minimum and maximum limits. TD benefits are tax-free.
Source: DIR Temporary Disability Rates
2. COLA Adjustments for Permanent Disability
Permanent Disability (PD) benefit rates also receive annual Cost of Living Adjustments. The PD rate schedule determines weekly payment amounts based on your disability percentage. For 2026, the COLA increase brings modest improvements across all PD rating levels.
How PD Rates Work
Your PD weekly rate depends on your disability percentage and date of injury. Higher PD ratings receive proportionally higher weekly benefits. The 2026 COLA applies to the weekly rate schedule, not to lump-sum settlements.
For example, a worker with a 25% PD rating receives a higher weekly rate in 2026 than the same rating would have yielded in 2025. The total benefit is the weekly rate multiplied by the number of weeks determined by the rating.
Reference: Labor Code §4658, Labor Code §4660
3. Cal/OSHA Enforcement Updates
Cal/OSHA has expanded its enforcement priorities for 2026, with significant implications for workplace safety and workers' compensation claims.
Heat Illness Prevention (Expanded)
California's outdoor and indoor heat illness prevention standards continue to be a top enforcement priority. Employers must provide access to water, shade, and rest periods when temperatures exceed specific thresholds. Indoor workers in warehouses, kitchens, and manufacturing facilities are increasingly covered. Workers who suffer heat-related injuries due to employer non-compliance have strong workers' comp claims.
Workplace Violence Prevention (SB 553)
SB 553, which took effect July 1, 2024, requires nearly all California employers to maintain a written Workplace Violence Prevention Plan. By 2026, Cal/OSHA is actively enforcing compliance, including requirements for employee training, incident logging, and hazard assessment. Employers in healthcare, retail, and social services face heightened scrutiny.
Increased Penalty Amounts
Cal/OSHA has increased maximum penalty amounts for safety violations. Serious violations can result in fines of up to $25,000 per violation, while willful violations can exceed $156,000. These penalties incentivize employers to take safety compliance seriously, but many still cut corners.
Ergonomic Standards
With the continued rise of remote and hybrid work, Cal/OSHA is paying more attention to ergonomic injuries. Employers have a duty to provide safe workstations, even for remote workers. Repetitive stress injuries like carpal tunnel and chronic back pain from poor ergonomics are valid workers' comp claims.
Reference: Cal/OSHA Safety & Health
4. Medical Fee Schedule Changes
California's Official Medical Fee Schedule (OMFS) sets the maximum amounts that workers' comp insurers must pay for medical services. The 2026 updates include adjustments based on Medicare rate changes and California-specific modifiers.
Key Medical Changes
- Physician fee schedule updated to reflect 2026 Medicare conversion factor changes
- Pharmacy fee schedule adjusted with updated dispensing fees
- Utilization Review (UR) timelines enforced more strictly: 5 business days for prospective, 30 days for retrospective
- Independent Medical Review (IMR) continues as the dispute resolution process for denied treatment
Treatment Denied?
If your insurer denies a recommended treatment through Utilization Review, you have the right to request an Independent Medical Review (IMR). The IMR process is free and the decision is binding on the insurance company. Labor Code §4610
5. Electronic Filing Updates at the WCAB
The Workers' Compensation Appeals Board (WCAB) continues to expand its electronic filing system (EAMS - Electronic Adjudication Management System). For 2026, key updates include:
- Expanded document types accepted electronically
- Improved online case status tracking for injured workers
- Virtual hearing options continue for many proceeding types
- Faster processing times for electronically filed Applications for Adjudication
6. Recent Court Decisions Affecting Workers' Comp
California courts and the WCAB continue to shape workers' compensation law through significant decisions. Key areas of judicial activity in recent years include:
Apportionment Standards
Courts continue to refine how permanent disability is apportioned between work-related and non-work-related causes. Recent decisions have clarified that apportionment must be based on substantial medical evidence, and that insurance companies cannot reduce PD awards based on speculative apportionment to "other factors."
Related: Labor Code §4663, Labor Code §4664
Cumulative Trauma Dates
Determining the correct date of injury for cumulative trauma claims (like repetitive stress injuries) remains a contested area. Courts have upheld that the date of injury is when the worker first suffered disability and knew or should have known it was work-related. This impacts which employer and insurer are liable.
Telehealth in Workers' Comp
The use of telemedicine for workers' comp evaluations has been clarified through recent WCAB decisions. While telehealth is generally accepted for follow-up visits and certain evaluations, in-person examinations remain the standard for QME and AME evaluations in most cases.
What These Changes Mean for Your Claim
If you were injured at work in 2026, these changes work in your favor: higher TD benefit rates mean more income replacement while you recover, expanded Cal/OSHA standards give you stronger safety-related arguments, and electronic filing makes the process more accessible.
However, navigating these changes on your own is difficult. An experienced workers' compensation attorney stays current on all legislative and regulatory updates and can ensure you receive every benefit you are entitled to under the new rules.
Related Resources
Frequently Asked Questions
When do the new 2026 TD rates take effect?
The updated Temporary Disability minimum and maximum rates take effect on January 1, 2026. They apply to all injuries occurring on or after that date. For injuries that occurred before January 1, 2026, the rate in effect at the time of injury applies.
Do the 2026 changes affect my existing claim?
It depends on the specific change. New TD rate minimums and maximums apply based on your date of injury, not the current year. However, COLA adjustments to permanent disability payments may apply to ongoing benefits. Legislative changes like updated Cal/OSHA standards apply going forward. Consult your attorney about how specific changes impact your existing claim.
What is the COLA adjustment for permanent disability in 2026?
The Cost of Living Adjustment (COLA) for permanent disability benefits is calculated annually based on changes to the State Average Weekly Wage. For 2026, the COLA increase applies to the PD rate schedule, resulting in slightly higher weekly PD payments across all rating levels. The exact adjustment is published by the DIR each January.
How does the workplace violence prevention standard affect my claim?
California's Workplace Violence Prevention Plan requirement (SB 553) requires nearly all employers to implement a written workplace violence prevention plan, conduct training, and maintain incident logs. If you are injured due to workplace violence and your employer failed to comply with SB 553, this can strengthen your workers' comp claim and potentially support a civil lawsuit for serious and willful misconduct.
Are there any new presumption laws for 2026?
California continues to expand presumption laws that make it easier for certain workers to prove their injuries are work-related. Existing presumptions cover firefighters, police officers, healthcare workers (for certain conditions), and other public safety employees. Check with an attorney about whether any new presumptions apply to your occupation and condition.
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