Frequently Asked Questions

What is the average workers’ compensation injury settlement?

In California, workplace injury claims are handled through the workers’ compensation system. An injured worker may be entitled to lost wages (temporary disability or permanent disability) and medical care.  In some cases, supplemental job displacement benefits are available for an injured worker who cannot return to their job.  A settlement typically occurs after an injured worker’s condition has stabilized, and is not expected to change for at least a year.

There are two potential settlements available to injured workers:

  1. A stipulation and award, where a worker agrees to have the insurance company provide future medical care for an injury for life. This type of settlement also incorporates any temporary and/or permanent disability payments.
  2. A compromise and release, where the injured worker takes the cash value of future medical care. This type of settlement also incorporates any temporary and/or permanent disability payments.

A stipulation and award is paid over a period of time, while a compromise and release is paid as a lump sum.  With a stipulation and award, an injured worker can reopen the claim if his or her condition worsens; a worker waives their right to do this in a compromise and release.

Because each workers’ compensation case is different, there is no average workers’ compensation injury settlement.  Each settlement is unique based on the severity of the injury, the type of job that a person had, their age, and the change in their future earning capacity due to their injury.  There are also significant variations between the two types of California workers’ compensation settlements.  If you have been injured on the job, working with an experienced California workers’ compensation lawyer can help you obtain the most favorable outcome for your claim.

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