A New Formula for TTD: Breaking Down Senate Bill 1519

By Amanda R. Waibel, Attorney at Law

Historically, temporary total disability benefits (TTD) have been set at a flat rate of roughly two-thirds of a worker’s average weekly wage (AWW), subject to a minimum and maximum limit tied to the state’s average weekly wage (SAWW).

On March 31, 2026, Governor Kotek signed into law Senate Bill 1519, marking a comprehensive shift in calculating TTD. Rather than relying upon a flat percentage of a worker’s AWW, the new law introduces a tiered structure that compares a worker’s AWW to a set percentage of the SAWW.[1]

By its express terms, the law only applies to claims with a date of injury on or after January 1, 2027. The bill, amending ORS 656.210(1), provides for a tiered rate of (1) 75 percent of the worker’s AWW that is equal to or less than 75 percent of the SAWW; and (2) 65 percent of the worker’s AWW that is greater than 75 percent of the SAWW.

For example, if a worker’s AWW is $1,250.00, and 75 percent of the SAWW at the time of claim processing is $1,000.00, then the worker’s TTD rate would be $912.50 (75 percent of $1,000.00 + 65 percent of the remaining $250.00).

The “average weekly wage” referenced in ORS 656.210(1) corresponds to the State’s AWW, outlined in ORS 656.211. The Oregon Department of Employment updates the SAWW annually, reflecting actual wages across the State’s economy. Under the new tiered framework, the SAWW becomes the dividing line between benefit tiers – meaning future increases/decreases to the SAWW will shift how much of a worker’s wages fall into each tier.

Although the bill was initially proposed to increase wage replacement benefits for lower-wage workers, its final form will result in increased benefits across a broad range of wage levels. It is likely the Workers’ Compensation Division will publish an online calculator to aid in the process of calculating the new tiered TTD rate. As claims subject to the new law are filed, the Reinisch Wilson Oregon practice group is always available to offer guidance and assist with closing evaluating the practical effects of Senate Bill 1519.

[1] This tiered structure is also implemented for the calculation of monthly PTD (permanent total disability) benefits.