How California Workers' Comp Settlements Work
California has one of the most comprehensive β and complex β workers' compensation systems in the United States. With over 18 million workers covered, California processes more workers' comp claims than any other state. Understanding how the California system differs from other states is critical to maximizing your settlement.
Temporary Disability (TD) in California
California TD benefits equal two-thirds of your average weekly wage, subject to a 2025 maximum of $1,680 per week and a minimum of $242 per week. TD benefits can continue for up to 104 weeks within a five-year period from the date of injury for most conditions, with extended periods available for certain severe injuries including severe burns, chronic lung disease, and others.
Permanent Disability (PD) in California
California's PD system uses the Permanent Disability Rating Schedule (PDRS) to convert your physician's Whole Person Impairment (WPI) rating into a PD percentage using adjustment factors including your age, occupation, and the nature of the injury. PD payments range from $160 to $290 per week depending on your PD percentage, and higher PD ratings result in longer payment periods. PD ratings of 70% or higher are considered totally disabling.
Serious & Willful Misconduct
One unique feature of California workers' comp law is the Serious & Willful (S&W) claim. If your employer's serious and willful misconduct caused your injury β meaning they knew their actions were likely to cause serious injury and disregarded that risk β you may be entitled to up to 50% more in compensation on top of your regular workers' comp benefits. S&W claims are separate from the standard workers' comp claim and must be filed separately.
The SJDB Voucher
If your injury prevents you from returning to your regular job and your employer does not offer modified or alternative work, you may be entitled to a Supplemental Job Displacement Benefit (SJDB) voucher worth $6,000 for retraining and skill enhancement. This voucher can be used at state-approved schools and does not reduce your other workers' comp benefits.