SB-555 • 2026

Workers’ compensation: average annual earnings.

Healthcare Labor

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Caballero
Last action: 2026-01-27
Official status: In Assembly. Read first time. Held at Desk.
Effective date: Not listed

Plain English Breakdown

The exact new minimum and maximum amounts for average weekly earnings starting from January 1, 2027 are not provided in the official source.

Workers' Compensation: Adjusting Average Annual Earnings

This law adjusts the limits of average weekly earnings for permanent partial disability benefits based on cost-of-living changes.

What This Bill Does

Adjusts the limits of average weekly earnings for permanent partial disability benefits each year by the amount equal to the Social Security cost-of-living adjustment.

Who It Names or Affects

Injured workers who receive permanent partial disability benefits
Employers who pay into the workers' compensation system

Terms To Know

Workers’ Compensation: A system that provides medical care and financial support to employees injured on the job.
Permanent Partial Disability Indemnity: Money paid to workers who have a long-term injury but can still work, based on their average earnings before the injury.

Limits and Unknowns

The exact new minimum and maximum amounts for average weekly earnings starting in 2027 are not specified.
It is unclear how this adjustment will affect overall workers' compensation costs.

Bill History

2026-01-27 California Legislative Information
In Assembly. Read first time. Held at Desk.
2026-01-27 California Legislative Information
Read third time. Passed. (Ayes 30. Noes 10. Page 3300.) Ordered to the Assembly.
2026-01-26 California Legislative Information
Read second time. Ordered to third reading.
2026-01-22 California Legislative Information
Read second time and amended. Ordered to second reading.
2026-01-22 California Legislative Information
From committee: Do pass as amended. (Ayes 5. Noes 2. Page 3269.) (January 22).
2026-01-20 California Legislative Information
Set for hearing January 22.
2025-05-23 California Legislative Information
May 23 hearing: Held in committee and under submission.
2025-05-16 California Legislative Information
Set for hearing May 23.
2025-05-05 California Legislative Information
May 5 hearing: Placed on APPR. suspense file.
2025-04-25 California Legislative Information
Set for hearing May 5.
2025-04-24 California Legislative Information
April 28 hearing postponed by committee.
2025-04-22 California Legislative Information
Set for hearing April 28.
2025-04-21 California Legislative Information
April 21 set for first hearing canceled at the request of author.
2025-04-10 California Legislative Information
Set for hearing April 21.
2025-04-09 California Legislative Information
From committee: Do pass and re-refer to Com. on APPR. (Ayes 4. Noes 1. Page 739.) (April 9). Re-referred to Com. on APPR.
2025-04-01 California Legislative Information
From committee with author's amendments. Read second time and amended. Re-referred to Com. on L., P.E. & R.
2025-03-26 California Legislative Information
Set for hearing April 9.
2025-03-05 California Legislative Information
Referred to Com. on L., P.E. & R.
2025-02-21 California Legislative Information
From printer. May be acted upon on or after March 23.
2025-02-20 California Legislative Information
Introduced. Read first time. To Com. on RLS. for assignment. To print.

Official Summary Text

SB 555, as amended, Caballero.
Workers’ compensation: average annual earnings.
Existing law establishes a workers’ compensation system, administered by the Administrative Director of the Division of Workers’ Compensation, to compensate an employee for injuries sustained in the course of employment. Existing law provides for temporary disability, permanent total disability, or permanent partial disability benefits, among other benefits, for an injured employee and requires the computation of an injured employee’s average annual earnings and average weekly earnings for purposes of determining those disability benefits. Existing law requires, for computing average annual earnings for purposes of permanent partial disability indemnity, that average weekly earnings be taken at various amounts, including between $240 and $435 for injuries occurring on or after January 1, 2014, except as specified.
This bill would additionally
require that the above-described limits be adjusted by the amount equal to the cost of living adjustment for federal social security benefits for that year, as specified.
This bill would require, for computing average annual earnings for purposes of permanent partial disability indemnity, that average weekly earnings be taken at between $____ and $____ for injuries occurring on or after January 1, 2027.

Current Bill Text

Read the full stored bill text

Download Bill PDF