Suffering a workplace injury can be physically painful and financially stressful. You might wonder if workers’ compensation will truly cover your expenses and how much you can expect to receive in a settlement. So, how much are California workers’ comp settlements?
In California, workers’ compensation settlements vary widely, but most fall between $2,000 and $40,000. About 12% of settlements are under $2,000, 55% range from $2,000 to $20,000, and 13% fall between $20,001 and $40,000.
Having helped countless injured workers secure fair settlements, I understand the factors that influence compensation. In this article, we’ll explore the types of workers’ comp settlements, how they are calculated, and what you can do to maximize your claim.
Understanding California Workers’ Comp Settlement Amount Variables
In California, workers’ compensation settlements typically range from $2,000 to $40,000, but can vary widely depending on the circumstances of the injury.
Settlement amounts
- 12% of settlements are less than $2,000
- 55% of settlements are between $2,000 and $20,000
- 13% of settlements are between $20,001 and $40,000
- 12% of settlements are between $40,001 and $60,000
- 8% of settlements are between $60,001 and $100,000
Factors affecting settlement
- Type of Injury – More severe injuries lead to higher settlements.
- Medical Treatment – Surgeries and ongoing rehabilitation increase compensation.
- Disability Level – Permanent injuries receive higher payouts than temporary disabilities.
- Future Medical Needs – If ongoing care is required, settlements rise.
Disability ratings
- Disability ratings are based on the severity and kinds of disability
- The number of weeks of payments is calculated by multiplying the disability rating by a number
- For example, a disability rating of 10 to 24.75 is multiplied by 5 to calculate the number of weeks of payments
Death benefits
- If an employee dies in a work-related accident, their families are entitled to death benefits
How Long Do Workers’ Compensation Settlements Take in California?
Workers’ compensation settlements in California typically take between a few months and over a year to finalize, depending on factors like medical treatment, legal disputes, and negotiation delays.
Several factors can influence how long it takes to reach a settlement:
- Medical Treatment: The longer your treatment, the longer your case may remain open.
- Disputes Over Benefits: If the insurance company challenges your claim, it can delay the process.
- Negotiation Timeline: If you seek a higher settlement, negotiations may extend the timeline.
- Workers’ Compensation Appeals: If your claim is denied, the appeal process can add months or even years to the case.
If you want to speed up the process, having a workers’ comp attorney can help ensure the insurance company doesn’t stall unnecessarily.
What Are the Average Workers’ Compensation Costs by Body Part?
Understanding how settlement amounts vary based on the affected body part is crucial for injured workers. Some injuries require extensive medical treatment, rehabilitation, and may lead to long-term disabilities, significantly increasing settlement values.
The average workers’ compensation costs vary by body part, with chest injuries averaging $14,500 in medical costs and $13,500 in indemnity. Foot and toe injuries cost around $15,400, while hand and finger injuries average $14,800 in medical expenses. Severe injuries, such as head or spinal injuries, can result in significantly higher payouts.
Workers’ Comp Settlement Chart California
Generally, injuries affecting the head, neck, and spine result in higher compensation, while minor extremity injuries may have lower payouts. The following table provides a breakdown of average workers’ compensation settlements by body part.
| Body Part / Injury Type | Medical Costs | Indemnity | Total Settlement |
|---|---|---|---|
| Head / CNS | $60,875 | $33,067 | $93,942 |
| Multiple Body Parts | $32,647 | $30,212 | $62,859 |
| Hip / Thigh / Pelvis | $36,553 | $23,205 | $59,758 |
| Leg | $38,049 | $21,699 | $59,748 |
| Neck | $30,404 | $28,987 | $59,391 |
| Lower Back | $17,486 | $20,480 | $37,966 |
| Upper Back | $17,799 | $18,955 | $36,754 |
| Shoulder | $26,088 | $23,028 | $49,116 |
| Soft Tissue | $10,500 | $9,800 | $20,300 |
| Labral Tear | $22,500 | $19,200 | $41,700 |
| Elbow | $15,900 | $14,200 | $30,100 |
| Ankle | $16,500 | $14,700 | $31,200 |
| Hand | $14,700 | $13,100 | $27,800 |
| Thumb | $13,900 | $12,200 | $26,100 |
Source: Insurance Business Mag
Does Surgery Increase a Workers Comp Settlement in California?
In California, surgery for a work-related injury typically leads to a higher workers’ compensation settlement due to increased medical costs, potential longer recovery periods, and possible permanent disabilities.
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Increased Medical Costs:
Surgery and related treatments (hospital stays, anesthesia, post-operative care, physical therapy) significantly raise medical expenses, which are factored into the settlement.
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Longer Recovery Periods:
Surgery often necessitates a longer recovery time, potentially resulting in a longer period of lost wages, which is also compensated in the settlement.
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Potential for Permanent Disability:
If surgery results in a permanent disability, the settlement will likely be higher to account for long-term medical care and loss of earning capacity.
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Factors Influencing Settlement Amount:
- Type and Severity of Injury: More severe injuries and those requiring complex surgeries generally lead to higher settlements.
- Pre-Injury Wages: Your pre-injury earnings play a role in calculating lost wages and the overall settlement amount.
- Permanent Disability: If the injury results in a permanent disability, the settlement will likely be higher to account for long-term medical care and loss of earning capacity.
- Future Medical Needs: If surgery indicates potential future medical needs (e.g., additional procedures, occupational therapy), these factors must be considered during settlement negotiations.
- Type and Severity of Injury: More severe injuries and those requiring complex surgeries generally lead to higher settlements.
If the surgery is performed before the settlement is finalized, it can increase the settlement amount, but if the surgery is successful and results in a faster recovery, it could potentially lower the settlement.
How Does Workers’ Comp Handle Pre-Existing Conditions?
Workers’ compensation in California may cover injuries aggravated by a pre-existing condition, but the burden of proof is on the worker to show that work-related activities worsened the injury.
Key considerations for pre-existing conditions:
- The “aggravation rule” allows workers’ comp to cover worsening of pre-existing injuries, such as chronic back pain made worse by lifting at work.
- Workers must provide medical evidence proving the new injury is related to work duties.
- Insurance companies often challenge these claims, so legal representation can be critical.
Can You Get a Lump Sum Workers’ Comp Settlement in California?
Yes, California allows workers to receive lump-sum workers’ compensation settlements through a Compromise and Release (C&R) agreement. This means forfeiting future medical care in exchange for a one-time payment.
There are two types of workers’ compensation settlements in California:
- Stipulated Agreement: The worker continues receiving benefits, including medical care, over time.
- Compromise & Release (C&R): The worker takes a lump sum but gives up the right to future benefits.
While lump-sum settlements can provide immediate financial relief, they may not always be the best option if you require ongoing medical treatment. Consulting with an experienced workers’ comp lawyer can help determine the best path for your case.
What Are the Average Workers’ Compensation Costs by Cause of Injury?
According to the National Council on Compensation Insurance (NCCI), motor vehicle crashes lead to the most expensive workers’ compensation claims, averaging $90,914 per claim. Burns follow at $67,224, while “other trauma” cases average $64,856. Injuries involving fractures, crushes, or dislocations result in an average cost of $63,531.
The cause of an injury can significantly impact the amount of a workers’ compensation settlement. Some workplace accidents, such as motor vehicle crashes and machinery-related injuries, tend to result in higher medical costs and lost wages, leading to larger settlements.
Meanwhile, injuries caused by slips, repetitive motion, or minor cuts often lead to lower compensation amounts. The following table provides a breakdown of average settlements based on the cause of injury.
| Cause of Injury | Medical Costs | Indemnity | Total Settlement |
|---|---|---|---|
| Motor Vehicle | $47,500 | $37,811 | $85,311 |
| Burn | $36,477 | $17,696 | $54,173 |
| Slip/Fall | $27,225 | $21,350 | $48,575 |
| Caught in Machinery | $26,188 | $18,400 | $44,588 |
| Struck by Object | $22,093 | $17,884 | $39,977 |
| Strain (Repetitive Motion) | $17,421 | $17,870 | $35,291 |
| Cumulative Injuries | $15,492 | $17,253 | $32,745 |
| Striking Against Object | $16,107 | $14,310 | $30,417 |
| Miscellaneous Cause | $12,557 | $12,938 | $25,495 |
| Cuts, Punctures, Scrapes | $14,530 | $9,845 | $24,375 |
Source: Insurance Business Mag
What Happens If My Workers’ Comp Claim Is Denied?
If your California workers’ comp claim is denied, you can appeal the decision by filing an Application for Adjudication of Claim with the Workers’ Compensation Appeals Board (WCAB) and requesting a hearing.
Common reasons for claim denial:
- The employer disputes that the injury happened at work.
- The insurance company claims the injury is minor or pre-existing.
- Deadlines were missed in reporting the injury.
If your claim is denied:
- Request a reconsideration from the insurer.
- File an appeal with the WCAB.
- Hire a workers’ compensation lawyer to present medical evidence and fight on your behalf.
What Are the Average Workers’ Compensation Costs by Nature of Injury?
The average workers’ compensation payout varies by injury type. Amputations have the highest average at $126,000, followed by fractures at $63,000, burns at $52,000, and sprains at $34,000. Motor vehicle crashes are the most costly cause, averaging $89,152 per claim. Severity and body part affected impact compensation.
The nature of an injury plays a significant role in determining the settlement amount. Severe injuries, such as amputations and fractures, tend to result in higher compensation due to long recovery periods and potential permanent disabilities.
Conversely, less severe injuries, such as sprains or carpal tunnel syndrome, may lead to lower settlements as they typically require less extensive treatment. The table below highlights the average workers’ compensation settlement amounts based on the type of injury.
| Injury Type | Total Settlement |
|---|---|
| Amputation | $118,837 |
| Fracture, Crush, or Dislocation | $60,934 |
| Other Trauma | $60,288 |
| Burn | $48,671 |
| Infection or Inflammation | $37,498 |
| Sprain or Strain | $33,589 |
| Carpal Tunnel | $33,477 |
| Laceration, Puncture, or Rupture | $33,348 |
| Contusion or Concussion | $33,151 |
| Occupational Disease or Cumulative Injury | $16,696 |
Even though these numbers show average settlements, every case is different. If you need an accurate estimate, consult with a qualified workers’ compensation attorney.
Source: National Safety Council (NSC)
Are Pain and Suffering Covered in a Workers’ Comp Settlement?
No, California workers’ compensation does not cover pain and suffering. However, if a third party was negligent, you may file a personal injury lawsuit to seek additional compensation.
Workers’ comp only provides:
- Medical treatment for work-related injuries
- Temporary disability payments
- Permanent disability payments
However, if a third party (such as a negligent driver or equipment manufacturer) caused the injury, you may have grounds for a separate personal injury lawsuit, which can include pain and suffering damages.
How Do You Maximize Your Workers’ Compensation Settlement in California?
You can maximize your California workers’ comp settlement by following medical treatment plans, documenting all injuries, working with a skilled attorney, and negotiating a fair settlement instead of rushing to accept an offer.
Top strategies to maximize your settlement:
✅ Follow medical treatment recommendations. Gaps in treatment can weaken your claim.
✅ Document everything. Keep a record of doctor visits, prescriptions, and work restrictions.
✅ Avoid rushing into settlements. Early offers may be lower than what you’re entitled to.
✅ Consult an attorney. Insurance companies have legal teams—so should you.
California Workers’ Compensation Death Benefits
Losing a loved one due to a work-related injury or illness can be devastating, and workers’ compensation laws in California provide financial support for surviving family members. Death benefits are designed to help cover burial costs and provide financial support to dependents. The amount received depends on the number of dependents and their level of dependency on the deceased worker’s income.
The table below outlines the death benefits available to dependents based on the date of injury and number of dependents.
| Date of Injury | Burial Payment | 1 Dependent | 2 Dependents | 3+ Dependents |
|---|---|---|---|---|
| After Jan. 1, 2013 | $10,000 | $250,000 | $290,000 | $320,000 |
*Partial dependents will receive up to four times the amount of annual support, up to a total of $290,000.
What Happens If You Are Fired While on Workers’ Comp in California?
It is illegal for California employers to fire workers in retaliation for filing a workers’ comp claim, but they may still terminate employment for other lawful reasons. Workers may have legal recourse through wrongful termination claims.
If you suspect retaliation:
- Document all communication with your employer.
- File a complaint with California’s Labor Commissioner.
- Speak with a workers’ compensation attorney.
Even if you are terminated, you may still be eligible to receive workers’ comp benefits.
How Much Can You Get From a Workers Compensation Settlement?
If you’ve suffered a work-related injury or illness, you may be wondering: How much can you get from a workers’ compensation settlement?
Most workers’ compensation settlements range between $2,000 and $40,000, with the average settlement amount being around $20,000. The final amount depends on factors such as injury severity, medical expenses, lost wages, and disability level.
What is the Role of a Workers’ Comp Judge in California?
A workers’ compensation judge in California oversees settlement negotiations, ensures fair agreements, and resolves disputes between injured workers and insurance companies.
Duties of a workers’ comp judge include:
- Mediating settlement discussions between workers and insurers.
- Reviewing medical reports to determine if a settlement is fair.
- Hearing appeals when a claim is denied.
Workers should prepare thoroughly for hearings and consult an attorney to strengthen their case.
California Temporary Disability in 2025
Temporary disability benefits support workers who temporarily cannot work due to a job-related injury. Payments cover two-thirds of the worker’s average weekly wage, up to a state-set maximum.
California Permanent Disability in 2025
If a worker has 100% permanent disability, they usually receive two-thirds of their average weekly income. If the disability is less than 100%, payments range from $160 to $290 per week.
Does Workers’ Comp Pay for Future Medical Expenses?
In California, workers’ comp covers future medical expenses for approved conditions unless the injured worker accepts a lump sum settlement (Compromise and Release).
- Medical care may continue indefinitely for permanent disabilities.
- Choosing a lump sum (C&R) means giving up future benefits.
- Some cases qualify for lifetime medical care awards.
Injured workers should carefully weigh the pros and cons of a lump sum payout before making a decision.
Get in Touch with a Workers’ Compensation Lawyer
If you’ve been injured at work, don’t risk losing the compensation you deserve. Call Scher, Bassett & Hames today at (408) 739-5300 for a free, no-obligation consultation. Our experienced workers’ compensation attorneys will fight aggressively to maximize your settlement, ensuring you get the medical care, lost wages, and financial support you’re entitled to. The sooner you act, the stronger your case—call now and take the first step toward financial recovery!
Further Reading:
- How to File a Workers’ Compensation Claim in California
- When Can You Sue for a Work-Related Injury in California?
- How Long Does It Take for a Workers Comp Settlement in California?
- What Benefits Can You Get From Workers’ Compensation in California?
- What Should You Know About Workers’ Compensation Claims in California
FAQs About Workers Comp Settlements in California
What Expenses Are Covered by Workers’ Compensation in California?
Medical treatments – Doctor visits, hospital stays, surgeries, and rehabilitation.
Prescription medications – Any necessary medications related to the injury.
Lost wages – Compensation for time missed from work due to the injury.
Permanent disability benefits – If the injury results in long-term impairment.
Vocational retraining – If the employee cannot return to their previous job.
Mileage reimbursement – Coverage for travel expenses to medical appointments.
Understanding these benefits can help injured workers maximize their claim and receive the full compensation they are entitled to.
How Do You File a Workers’ Compensation Claim in California?
Report the injury – Notify your employer within 30 days of the injury.
Complete the DWC-1 form – Your employer should provide you with the official claim form.
Seek medical treatment – See a doctor authorized by your employer’s workers’ compensation insurance.
Submit your claim – Your employer must forward the completed form to the claims administrator.
Follow up – Stay in contact with the claims administrator and attend required medical evaluations.
Consult an attorney – If your claim is delayed or denied, an attorney can help protect your rights.
By following these steps, injured workers can ensure their claim is processed efficiently and without unnecessary delays.
What Happens If an Employer Disputes a Workers’ Compensation Claim?
Gather evidence – Keep detailed records of the injury, witness statements, and medical reports.
File an appeal – If your claim is denied, you can appeal to the California Division of Workers’ Compensation (DWC).
Attend a hearing – A judge will review the evidence and determine whether you qualify for benefits.
Seek legal help – A workers’ compensation attorney can provide legal representation and improve the chances of a successful appeal.
Employees have the right to challenge claim denials and receive the compensation they deserve.
How Long Does a Workers' Compensation Settlement Take?
The severity of the injury and necessary medical treatment.
The complexity of the case, including disputes over liability.
Whether the insurance company offers a fair settlement or requires litigation.
On average, most workers’ compensation settlements in California take between 12 and 24 months, though some cases may resolve in as little as 6 months. If a case requires a hearing or appeal, the process can extend beyond two years.
Do all workers comp cases end in a settlement in California?
Can You Receive Workers’ Compensation Benefits While Still Working?
Their doctor places work restrictions that limit physical tasks.
They earn less than their pre-injury wages due to limited duties.
Their employer provides alternative work but at a lower rate of pay.
Even if you return to work, you may still qualify for compensation, including medical expenses and wage loss benefits.
What Happens If Your Workers’ Comp Claim Is Denied?
Failure to report the injury on time.
Insufficient medical evidence.
Employer disputes over how the injury occurred.
If your claim is denied, you have the right to challenge the decision through the California Workers' Compensation Appeals Board (WCAB). A skilled attorney can help gather medical evidence, represent you at hearings, and fight for your rightful benefits.
