As the Legislature printed it
DIVISION 4. WORKERS' COMPENSATION AND INSURANCE [3200 - 6002] · PART 2. COMPUTATION OF COMPENSATION [4451 - 4856] · CHAPTER 1. Average Earnings [4451 - 4459]
(a) In computing average annual earnings for the purposes of temporary disability indemnity and permanent total disability indemnity only, the average weekly earnings shall be taken at: (1) Not less than one hundred twenty-six dollars ($126) nor more than two hundred ninety-four dollars ($294), for injuries occurring on or after January 1, 1983. (2) Not less than one hundred sixty-eight dollars ($168) nor more than three hundred thirty-six dollars ($336), for injuries occurring on or after January 1, 1984. (3) Not less than one hundred sixty-eight dollars ($168) for permanent total disability, and, for temporary disability, not less than the lesser of one hundred sixty-eight dollars ($168) or 1.5 times the employee’s average weekly earnings from all employers, but in no event less than one hundred forty-seven dollars ($147), nor more than three hundred ninety-nine dollars ($399), for injuries occurring on or after January 1, 1990. (4) Not less than one hundred sixty-eight dollars ($168) for permanent total disability, and for temporary disability, not less than the lesser of one hundred eighty-nine dollars ($189) or 1.5 times the employee’s average weekly earnings from all employers, nor more than five hundred four dollars ($504), for injuries occurring on or after January 1, 1991. (5) Not less than one hundred sixty-eight dollars ($168) for permanent total disability, and for temporary disability, not less than the lesser of one hundred eighty-nine dollars ($189) or 1.5 times the employee’s average weekly earnings from all employers, nor more than six hundred nine dollars ($609), for injuries occurring on or after July 1, 1994. (6) Not less than one hundred sixty-eight dollars ($168) for permanent total disability, and for temporary disability, not less than the lesser of one hundred eighty-nine dollars ($189) or 1.5 times the employee’s average weekly earnings from all employers, nor more than six hundred seventy-two dollars ($672), for injuries occurring on or after July 1, 1995. (7) Not less than one hundred sixty-eight dollars ($168) for permanent total disability, and for temporary disability, not less than the lesser of one hundred eighty-nine dollars ($189) or 1.5 times the employee’s average weekly earnings from all employers, nor more than seven hundred thirty-five dollars ($735), for injuries occurring on or after July 1, 1996. (8) Not less than one hundred eighty-nine dollars ($189), nor more than nine hundred three dollars ($903), for injuries occurring on or after January 1, 2003. (9) Not less than one hundred eighty-nine dollars ($189), nor more than one thousand ninety-two dollars ($1,092), for injuries occurring on or after January 1, 2004. (10) Not less than one hundred eighty-nine dollars ($189), nor more than one thousand two hundred sixty dollars ($1,260), for injuries occurring on or after January 1, 2005. For injuries occurring on or after January 1, 2006, average weekly earnings shall be taken at not less than one hundred eighty-nine dollars ($189), nor more than one thousand two hundred sixty dollars ($1,260) or 1.5 times the state average weekly wage, whichever is greater. Commencing on January 1, 2007, and each January 1 thereafter, the limits specified in this paragraph shall be increased by an amount equal to the percentage increase in the state average weekly wage as compared to the prior year. For purposes of this paragraph, “state average weekly wage” means the average weekly wage paid by employers to employees covered by unemployment insurance as reported by the United States Department of Labor for California for the 12 months ending March 31 of the calendar year preceding the year in which the injury occurred. (b) In computing average annual earnings for purposes of permanent partial disability indemnity, except as provided in Section 4659, the average weekly earnings shall be taken at: (1) Not less than seventy-five dollars ($75), nor more than one hundred ninety-five dollars ($195), for injuries occurring on or after January 1, 1983. (2) Not less than one hundred five dollars ($105), nor more than two hundred ten dollars ($210), for injuries occurring on or after January 1, 1984. (3) When the final adjusted permanent disability rating of the injured employee is 15 percent or greater, but not more than 24.75 percent: (A) not less than one hundred five dollars ($105), nor more than two hundred twenty-two dollars ($222), for injuries occurring on or after July 1, 1994; (B) not less than one hundred five dollars ($105), nor more than two hundred thirty-one dollars ($231), for injuries occurring on or after July 1, 1995; (C) not less than one hundred five dollars ($105), nor more than two hundred forty dollars ($240), for injuries occurring on or after July 1, 1996. (4) When the final adjusted permanent disability rating of the injured employee is 25 percent or greater, not less than one hundred five dollars ($105), nor more than two hundred twenty-two dollars ($222), for injuries occurring on or after January 1, 1991. (5) When the final adjusted permanent disability rating of the injured employee is 25 percent or greater but not more than 69.75 percent: (A) not less than one hundred five dollars ($105), nor more than two hundred thirty-seven dollars ($237), for injuries occurring on or after July 1, 1994; (B) not less than one hundred five dollars ($105), nor more than two hundred forty-six dollars ($246), for injuries occurring on or after July 1, 1995; and (C) not less than one hundred five dollars ($105), nor more than two hundred fifty-five dollars ($255), for injuries occurring on or after July 1, 1996. (6) When the final adjusted permanent disability rating of the injured employee is less than 70 percent: (A) not less than one hundred fifty dollars ($150), nor more than two hundred seventy-seven dollars and fifty cents ($277.50), for injuries occurring on or after January 1, 2003; (B) not less than one hundred fifty-seven dollars and fifty cents ($157.50), nor more than three hundred dollars ($300), for injuries occurring on or after January 1, 2004; (C) not less than one hundred fifty-seven dollars and fifty cents ($157.50), nor more than three hundred thirty dollars ($330), for injuries occurring on or after January 1, 2005; and (D) not less than one hundred ninety-five dollars ($195), nor more than three hundred forty-five dollars ($345), for injuries occurring on or after January 1, 2006. (7) When the final adjusted permanent disability rating of the injured employee is 70 percent or greater, but less than 100 percent: (A) not less than one hundred five dollars ($105), nor more than two hundred fifty-two dollars ($252), for injuries occurring on or after July 1, 1994; (B) not less than one hundred five dollars ($105), nor more than two hundred ninety-seven dollars ($297), for injuries occurring on or after July 1, 1995; (C) not less than one hundred five dollars ($105), nor more than three hundred forty-five dollars ($345), for injuries occurring on or after July 1, 1996; (D) not less than one hundred fifty dollars ($150), nor more than three hundred forty-five dollars ($345), for injuries occurring on or after January 1, 2003; (E) not less than one hundred fifty-seven dollars and fifty cents ($157.50), nor more than three hundred seventy-five dollars ($375), for injuries occurring on or after January 1, 2004; (F) not less than one hundred fifty-seven dollars and fifty cents ($157.50), nor more than four hundred five dollars ($405), for injuries occurring on or after January 1, 2005; and (G) not less than one hundred ninety-five dollars ($195), nor more than four hundred five dollars ($405), for injuries occurring on or after January 1, 2006. (8) For injuries occurring on or after January 1, 2013: (A) When the final adjusted permanent disability rating is less than 55 percent, not less than two hundred forty dollars ($240) nor more than three hundred forty-five dollars ($345). (B) When the final adjusted permanent disability rating is 55 percent or greater but less than 70 percent, not less than two hundred forty dollars ($240) nor more than four hundred five dollars ($405). (C) When the final adjusted permanent disability rating is 70 percent or greater but less than 100 percent, not less than two hundred forty dollars ($240) nor more than four hundred thirty-five dollars ($435). (9) For injuries occurring on or after January 1, 2014, not less than two hundred forty dollars ($240) nor more than four hundred thirty-five dollars ($435). (c) Between the limits specified in subdivisions (a) and (b), the average weekly earnings, except as provided in Sections 4456 to 4459, shall be arrived at as follows: (1) Where the employment is for 30 or more hours a week and for five or more working days a week, the average weekly earnings shall be the number of working days a week times the daily earnings at the time of the injury. (2) Where the employee is working for two or more employers at or about the time of the injury, the average weekly earnings shall be taken as the aggregate of these earnings from all employments computed in terms of one week; but the earnings from employments other than the employment in which the injury occurred shall not be taken at a higher rate than the hourly rate paid at the time of the injury. (3) If the earnings are at an irregular rate, such as piecework, or on a commission basis, or are specified to be by week, month, or other period, then the average weekly earnings mentioned in subdivision (a) shall be taken as the actual weekly earnings averaged for this period of time, not exceeding one year, as may conveniently be taken to determine an average weekly rate of pay. (4) Where the employment is for less than 30 hours per week, or where for any reason the foregoing methods of arriving at the average weekly earnings cannot reasonably and fairly be applied, the average weekly earnings shall be taken at 100 percent of the sum which reasonably represents the average weekly earning capacity of the injured employee at the time of his or her injury, due consideration being given to his or her actual earnings from all sources and employments. (d) Every computation made pursuant to this section beginning January 1, 1990, shall be made only with reference to temporary disability or the permanent disability resulting from an original injury sustained after January 1, 1990. However, all rights existing under this section on January 1, 1990, shall be continued in force. Except as provided in Section 4661.5, disability indemnity benefits shall be calculated according to the limits in this section in effect on the date of injury and shall remain in effect for the duration of any disability resulting from the injury.
How panels applied this section
Newest released decisions whose legal-standard extraction named this section. Each quotes the passage and links to the official PDF. Unofficial guide — not legal advice.
- ADJ9042051 · 2026-08-17 · San Francisco District Office§ 4453
Determinative passage · p.9(4) Where the employment is for less than 30 hours per week, or where for any reason the foregoing methods of arriving at the average weekly earnings cannot reasonably and fairly be applied, the average weekly earnings shall be taken at 100 percent of the sum which reasonably represents the average weekly earning capacity of the injured employee at the time of his or her injury, due consideration being given to his or her actual earnings from all sources and employments.
The Board noted the statutory framework for determining earnings and the lack of record on hours worked.
Official decision · page 9 → - ADJ16000363 · 2026-07-29 · Oakland District Office§ 4453
Determinative passage · p.5(Lab. Code, § 4659(b).) Section 4453(a)(10) sets the maximum average weekly wage rate for a 2022 date of injury as follows:
Applied to set maximum average weekly wage rates for temporary and permanent total disability indemnity based on date of injury.
Official decision · page 5 → - ADJ13667342 · 2026-07-06 · Santa Ana District Office§ 4453
Determinative passage · p.9II. The Workers’ Compensation Act provides for temporary and permanent disability indemnity. (Lab. Code, § 4650 et seq.) We first address the findings and award regarding temporary disability indemnity. Temporary disability indemnity is intended primarily to substitute for the worker’s lost wages, in order to maintain steady stream of income. (Chavira v. Workers’ Comp. Appeals Bd. (1991) 235 Cal.App.3d 463, 473 [56 Cal.Comp.Cases 631].) The calculation of an award of temporary disability requires (1) a determination of the employee’s average weekly earnings (which may be based on various calculations, including actual earnings or on earnings capacity), (2) the application of the minimum and maximum disability rates, and (3) a determination of the period the employee was temporarily totally disabled. Section 4453, subdivision (c), provides four methods to calculate average weekly earnings. (Lab. Code, § 4453(c)(1)-(4).) As relevant here, section 4453(c) provides: (1) Where the employment is for 30 or more hours a week and for five or more working days a week, the average weekly earnings shall be the number of working days a week times the daily earnings at the time of the injury.
Applied to determine earning potential for temporary disability.
Official decision · page 9 → - ADJ20695668 · 2026-06-12 · Redding District Office§ 4453
Determinative passage · p.4II. Turning to the merits, in order to compute a worker's temporary indemnity rate, a worker's earning capacity (or average weekly earnings) must first be determined under section 4453. An estimate of earning capacity is a prediction of what a worker's earnings would have been had they not been injured. (Argonaut Ins. Co. v. I.A.C. (Montana) (1962) 57 Cal.2d 589, 594 [27 Cal.Comp.Cases 130].) The method of computation of average weekly earnings is provided in section 4453, subdivision (c). (Pham v. Workers' Comp. Appeals Bd. (2000) 78 Cal.App.4th 626, 632 [65 Cal.Comp.Cases 139].) Subdivision (c)(1)-(3) provides formulas that take a worker's actual earnings as a starting point, whereas subdivision (c)(4) is for irregular employment or other situations where the first three formulas cannot reasonably and fairly be applied. (Montana, supra, at pp. 594-595; Pham, supra, at pp. 632-633; Goytia v. Workers' Comp. Appeals Bd. (1970) 1 Cal.3d 889, 894-895 [35 Cal.Comp.Cases 27].) In relevant part, section 4453 states: (c) Between the limits specified in subdivisions (a) and (b), the average weekly earnings, except as provided in Sections 4456 to 4459, shall be arrived at as follows:
The WCAB applied section 4453(c) to determine that the payroll records alone were insufficient and earning capacity must be considered.
Official decision · page 4 → - ADJ7376924 · 2026-05-28 · Riverside District Office§ 4453
Determinative passage · p.3In the Decision, and despite the undisputed fact that applicant did not work "five or more working days a week," the Appeals Board stated that application of section 4453, subdivision (c)(1) ("section 4453(c)(1)") "is the most reasonable and fair method of calculation available given applicant's full-time employment and regular and consistent earnings at the time of injury." (Writ Exh. 1, p. 3.) The reasons given for this conclusion were that section 4453(c)(4) did not apply because "applicant did not work less than 30 hours per week but rather worked forty hours per week" earnings under section 4453(c)(1) is not reasonably and fairly applied."
Methods for calculating average weekly earnings including subsection (4) for less than 30 hours per week or when other methods cannot be fairly applied
Official decision · page 3 → - ADJ19532643 · 2026-05-18 · Marina del Rey District Office§ 4453
Determinative passage · p.9Petitioner takes the position that Applicant's TD rate should be based upon her earnings post-retirement, which would be "zero" as she has not been gainfully employed since 1/12/2024, her date of retirement. Labor Code Section 4453(c)(4) applies when an employee works less than 30 hours per week or when the methods for calculating average weekly wages found in Sections 4453(c)(1), (c)(2), or (c)(3) are inapplicable or do not result in a just outcome. Where the customary method of determining average weekly wages, i.e., relying on the total amount the Applicant earned in the year prior to the date of injury. is inadequate to calculate average weekly earnings, Labor Code Section 4453(c)(4) is invoked in order to assess an injured worker's earning capacity. The purpose of Labor Code Section 4453(c)(4) is to provide parity for employees who have experienced irregularities in their employment history which does not allow for the simple calculation of determining average weekly wage.
Applied to assess applicant's earning capacity post-retirement for temporary disability rate calculation.
Official decision · page 9 → - ADJ12954579 · 2026-02-17 · Salinas District Office§ 4453
Determinative passage · p.3Average weekly earnings are determined as of the "time of injury" (Lab. Code, § 4453, subd. (c)) and the date an injury first causes compensable disability (See generally Van Voorhis v. Workmen's Comp. Appeals Bd. (1974) 37 Cal.App.3d 81 [39 Cal.Comp.Cases 81].) Here, applicant stipulated to a temporary disability indemnity rate and did not raise any issue regarding the indemnity rate. (Lab. Code, § 5502, subd. (d)(3).) Applicant has not set forth good cause to
Applicant stipulated to the temporary disability indemnity rate and did not raise any issue regarding the indemnity rate, thus waiving the issue.
Official decision · page 3 → - ADJ20892439 · 2026-02-09 · Van Nuys District Office§ 4453
Determinative passage · p.8III DISCUSSION Cal. Lab Code sec. 4454 allows the use of "overtime and the market value of board, lodging, fuel, and other advantages received by the injured employee as part of his remuneration, which can be estimated in money..." as the basis for determining average weekly wage. It is well established that tips are included under sec. 4454. Hartford Accident and Indemnity Co. v. IAC (1919) 41 Cal. App. 543.
The Board applied these statutes to determine the average weekly wage including tips based on credible testimony.
Official decision · page 8 →
All 41 decisions naming § 4453 →
The rules written under this section
A statute says what is owed; Title 8 says by when, on what form, and what happens if the deadline passes. These name § 4453as what they implement.
- 8 CCR § 10101Claim File--Contents.
- 8 CCR § 10101.1Claim File--Contents.
- 8 CCR § 10102Retention of Claim Files.
- 8 CCR § 10110Notice of Intention to Issue a Notice of Compensation Due; Notice of Compensation Due; Review by Workers' Compensation Appeals Board.
- 8 CCR § 10111Schedule of Administrative Penalties for injuries on or after January 1, 1990, but before January 1, 1994.
- 8 CCR § 10111.1Schedule of Administrative Penalties for Injuries on or After January 1, 1994.
- 8 CCR § 10111.2Full Compliance Audit Penalty Schedules; Target Audit Penalty Schedule.
Also on this
Unofficial guide — not legal advice. The statute is the state’s text. The quotes are litigated applications, not a prediction.
About California Labor Code § 4453
What is California Labor Code § 4453?
Labor Code § 4453 sits in CHAPTER 1. Average Earnings [4451 - 4459]. The statute on this page begins: (a) In computing average annual earnings for the purposes of temporary disability indemnity and permanent total disability indemnity only. The official display is on LegInfo; this is a reprint.
Did WCAB panels apply Labor Code § 4453 in this corpus?
This corpus has 41 released decisions whose extracted legal standards named § 4453. Quotes and PDFs are on this page. That is not every case in California that ever cited the section.