SB-555 • 2026

Workers’ compensation: average annual earnings.

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: 2026-06-01
Official status: From committee with author's amendments. Read second time and amended. Re-referred to Com. on INS.
Effective date: Not listed

Plain English Breakdown

The official source material does not provide specific values between $363 and $658, only placeholders indicating a range needs to be set by further action or regulation.

Workers' Compensation: Average Annual Earnings

This law changes the range of average weekly earnings used to calculate permanent partial disability benefits for workers injured on or after January 1, 2027.

What This Bill Does

Changes how much money is considered when calculating permanent partial disability payments.
Sets new minimum and maximum amounts for average weekly earnings from $363 to $658.
Applies the changes only to injuries that happen on or after January 1, 2027.

Who It Names or Affects

Workers who get injured at work and need permanent partial disability benefits.
Employers who have workers' compensation insurance for their employees.

Terms To Know

Permanent Partial Disability: When a worker is hurt on the job and can't do all the tasks they could before, but they are not totally disabled.
Average Weekly Earnings: The amount of money an employee usually earns each week based on their work history.

Limits and Unknowns

Does not specify the exact minimum and maximum amounts for average weekly earnings.
Only applies to injuries that happen after January 1, 2027.
Does not change other types of workers' compensation benefits like temporary disability or permanent total disability.

Bill History

2026-06-01 California Legislative Information
From committee with author's amendments. Read second time and amended. Re-referred to Com. on INS.
2026-05-04 California Legislative Information
Referred to Com. on INS.
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 require, for
computing average annual earnings for purposes of permanent partial disability indemnity, that average weekly earnings be taken at between
$____
$363
and
$____
$658
for injuries occurring on or after January 1, 2027.

Current Bill Text

Read the full stored bill text

Download Bill PDF