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MLAC subcommittee endorses compromise to raise base temporary disability replacement rate; stakeholders plan 2026 legislation
Summary
A joint management‑labor proposal would raise the base temporary disability replacement rate from 66.667% to 75% for wages below 75% of the state average weekly wage, with a different secondary rate above that threshold; stakeholders said they intend to file a legislative concept for 2026 and to target implementation for injuries on or after Jan. 1, 2027.
Co‑chair Scott Strickland and Stacy Lewellen reported the subcommittee’s recommended change to the temporary disability (average weekly wage) replacement structure. Strickland summarized the compromise as an increase of the base replacement rate “from the current 66.667 up to 75% of the injured workers' weekly wage for the portion of wages below 75% of the state average weekly wage,” with a secondary (lower) percentage for earnings above that threshold.
Strickland and Lewellen emphasized the recommendation grew from extensive stakeholder engagement and data analysis produced by the division and NCCI. A stakeholder representative said it is the intention to file a legislative concept in 2026 and that the implementation assessment uses an effective date covering injuries occurring on or after Jan. 1, 2027. “It is our intention to bring a bill in 2026,” a stakeholder told the committee.
Committee cochairs said they will continue to coordinate with stakeholders and legislators and that the recommendation will return for additional MLAC review as the legislative concept is drafted.
