WCPanelIQ
PanelGranted in Part

Jose Luis Varas — ADJ2170203

JOSE LUIS VARAS, Applicant vs. TERESA LOBATOS; ALLSTATE INSURANCE, administered by SEDGWICK CLAIMS MANAGEMENT SERVICES, Defendants

ADJ number
ADJ2170203
Decision date
May 18, 2023
District office
Pomona
WCJ
—
Claim administrator
Sedgwick Claims Management Services (administering for Allstate Insurance)
Commissioners
JOSEPH V. CAPURRO, COMMISSIONER, KATHERINE WILLIAMS DODD, COMMISSIONER, CRAIG SNELLINGS, COMMISSIONER

Injury / body parts: neck, left shoulder, left elbow, left wrist, right upper extremity, low back, right knee, left knee, gastrointestinal (upper/lower G.I.), psyche

LC §4661.5LC §4453LC §4656

Summary

Applicant Jose Luis Varas, a house painter, sustained industrial injury in 1992 to multiple body parts. After determining applicant was a minimum wage earner with weekly earnings of $170, the WCJ awarded temporary disability at a rate of $427.73 based on applying the current 2023 City of Los Angeles minimum wage ($16.04/hour) to applicant's earning capacity. Defendant sought reconsideration, conceding applicant was entitled to current statutory minimum TD rates under section 4661.5 for payments made two or more years post-injury, but disputing the use of the current local minimum wage as the basis for an earning capacity calculation. The Board granted reconsideration and held that section 4661.5 requires application of current statutory TD rates (limits)—not a recalculation of average weekly earnings or earning capacity—to payments made more than two years after injury. The Board found it speculative to base a 1992 earning capacity on the 2023 Los Angeles minimum wage, and amended the TD rate to the 2023 statutory minimum of $242.86 per week.

Issues

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Holding

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Analysis

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Applicant takeaway

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Defense takeaway

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Provider takeaway

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