Workers' Comp Settlements in California
Whether a workers' comp claim can be settled in California, who must approve the settlement, and how long benefits can last.
Short answer: Yes. A case can be settled in two ways. With Stipulations with Request for Award, the worker and claims administrator agree on the permanent disability payments, medical care usually continues, and either side can usually ask to change benefits within five years from the date of injury. DWC, Workers' Compensation in California: A Guidebook for Injured Workers, Chapter 7 (Can my case be settled?)
| Settlements | Yes. A case can be settled in two ways. With Stipulations with Request for Award, the worker and claims administrator agree on the permanent disability payments, medical care usually continues, and either side can usually ask to change benefits within five years from the date of injury. With a Compromise and Release, the worker receives a lump sum, future medical care may become the worker's responsibility if the lump sum covers it, and the case cannot be reopened if the condition changes. A workers' compensation judge must review any settlement to decide whether it is adequate. The worker does not have to accept a settlement offer and can instead have a judge decide the case. |
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| How long benefits last | For injuries on or after January 1, 2008, temporary disability (TD) can be paid for up to 104 weeks within five years from the date of injury. Workers with certain long-term injuries (such as hepatitis B or C, amputations, severe burns, HIV, high-velocity eye injuries, chemical burns to the eyes, pulmonary fibrosis or chronic lung disease) may receive up to 240 weeks of TD within five years. TD generally stops sooner if the worker returns to work, is released for work, or the doctor says the condition has improved as much as it will. Permanent partial disability is paid over a fixed number of weeks; permanent total disability is paid for the rest of the worker's life. For injuries from April 19, 2004 through December 31, 2007, TD was limited to 104 weeks within two years from the start of payments. Permanent disability durations are in Chapter 7 (https://www.dir.ca.gov/InjuredWorkerGuidebook/Chapter7.pdf); Fact Sheet C: https://www.dir.ca.gov/dwc/FactSheets/FactSheet_c.pdf. The guidebook suggests also filing a state disability insurance (SDI) claim with EDD for income after TD ends. |
| Lawyer fees in comp cases | In California your workers' comp attorney cannot charge you directly; the fee is paid out of a portion of your workers' compensation benefits, and any award or settlement must be approved by a workers' compensation administrative law judge. Free help is available from local Information & Assistance (I&A) officers, who do not act as your attorney but help you understand how to act on your own behalf. |
Where to get help in California
More California workers' compensation
- Filing a Workers' Comp Claim in California
- How Much Workers' Comp Pays in California
- Retaliation for Filing Workers' Comp in California
- Suing Over a Work Injury in California
- Appealing a Denied Workers' Comp Claim in California
- All California workers' compensation rules
FAQ
How do workers' comp settlements work in California?
Yes. A case can be settled in two ways. With Stipulations with Request for Award, the worker and claims administrator agree on the permanent disability payments, medical care usually continues, and either side can usually ask to change benefits within five years from the date of injury. With a Compromise and Release, the worker receives a lump sum, future medical care may become the worker's responsibility if the lump sum covers it, and the case cannot be reopened if the condition changes. A workers' compensation judge must review any settlement to decide whether it is adequate. The worker does not have to accept a settlement offer and can instead have a judge decide the case.
How long can you receive workers' comp in California?
For injuries on or after January 1, 2008, temporary disability (TD) can be paid for up to 104 weeks within five years from the date of injury. Workers with certain long-term injuries (such as hepatitis B or C, amputations, severe burns, HIV, high-velocity eye injuries, chemical burns to the eyes, pulmonary fibrosis or chronic lung disease) may receive up to 240 weeks of TD within five years. TD generally stops sooner if the worker returns to work, is released for work, or the doctor says the condition has improved as much as it will. Permanent partial disability is paid over a fixed number of weeks; permanent total disability is paid for the rest of the worker's life.
How much can a workers' comp lawyer charge in California?
In California your workers' comp attorney cannot charge you directly; the fee is paid out of a portion of your workers' compensation benefits, and any award or settlement must be approved by a workers' compensation administrative law judge. Free help is available from local Information & Assistance (I&A) officers, who do not act as your attorney but help you understand how to act on your own behalf.
General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.