Settlement Calculator Methodology

What this calculator estimates

The Settlement Calculator estimates the two wage-replacement benefit components of a California workers' compensation claim: Temporary Disability (TD) and Permanent Disability (PD). It does not estimate the lump-sum value of a Compromise & Release (C&R) settlement, which is negotiated based on factors the attorney evaluates on the consultation call.

Temporary Disability (TD)

TD pays you while you're unable to work due to your injury. The weekly benefit is two-thirds of your Average Weekly Wage (AWW), bounded by statutory minimums and maximums set annually by the California Division of Workers' Compensation.

Formula

TD weekly = clamp(AWW × 2/3, $264.61, $1764.11)

2026 statutory limits

• Minimum weekly TD: $264.61
• Maximum weekly TD: $1764.11
• Standard aggregate duration cap: 104 weeks across a five-year window from the date of injury
• Severe-category aggregate duration cap: 240 weeks within five years for qualifying conditions under §4656(c)

Severe-category conditions (240-week cap)

Cal. Lab. Code §4656(c) extends the TD aggregate cap from 104 to 240 weeks for the following injuries and conditions: HIV, Hepatitis B or C, Amputations, Severe burns, High-velocity eye injuries, Chemical burns to the eyes, Pulmonary fibrosis, Chronic lung disease. The calculator checkbox applies this extended cap to both the TD ceiling and the low-scenario TD total.

Statutory authority

• Cal. Lab. Code §4453 — defines AWW and the two-thirds replacement factor
• Cal. Lab. Code §4656(b) — standard 104-week aggregate TD cap
• Cal. Lab. Code §4656(c) — 240-week aggregate TD cap for qualifying severe categories

Permanent Disability (PD)

PD pays you for the lasting impact of your injury after you reach maximum medical improvement. Unlike TD, the PD weekly rate is fixed by statute at $290/week regardless of your pre-injury wage. The number of weeks you receive PD depends on your disability rating, your age, your occupation, and which body part was injured.

Formula

PD total = $290/week × PD weeks

PD weeks (simplified estimate)

The actual 2005 PD Schedule requires lookups against your age, occupational group, and the specific body part injured. We collect body part on the calculator and apply a directional multiplier; age and occupation are evaluated by the attorney on the call.

Baseline week-count approximation:

• Ratings up to 70%: roughly 3 weeks per percentage point
• Ratings above 70%: roughly 6 weeks per percentage point (midpoint of the 5–8 range in the actual schedule)

Body-part adjustment

The 2005 Schedule's Future Earnings Capacity (FEC) rank varies by body part — back/spine and head/CNS injuries impact a worker's occupational capacity more broadly than knees or shoulders for the same rating. The calculator applies a directional multiplier to the baseline week count:

• General / not specified: ×1.00
• Spine, back, or neck: ×1.25
• Head, brain, or nervous system: ×1.40
• Shoulder, arm, hand, or wrist: ×1.00
• Hip, leg, knee, foot, or ankle: ×0.90
• Internal organs, hearing, or psyche: ×1.10

These multipliers are abstractions of FEC ranks plus typical occupational variants. The real schedule lookup is more granular and the attorney runs it precisely on the consultation call.

Statutory authority

• Cal. Lab. Code §4453(a) — PD weekly rate set at $290/week
• Cal. Lab. Code §4658 — week-count adjustments by rating tier
• 2005 Permanent Disability Rating Schedule — body part and occupation modifiers

Life Pension (PD ratings ≥ 70%)

For permanent disability ratings of 70% or greater (and less than 100%), Cal. Lab. Code §4659 provides a separate life pension payment in addition to the PD weeks. The life pension is paid weekly for the remainder of the injured worker's life, starting after the PD weeks are exhausted.

Formula

LP weekly = (rating − 60) × 1.5% × min(AWW, $515.38)

The wage used for the life pension is capped at $515.38/week per §4453(b)(7), which is materially lower than the TD wage cap. For high earners, the LP weekly rate scales with the cap, not actual wage.

Lifetime value estimate

The calculator shows a 20-year directional estimate (LP weekly × 52 × 20). The actual lifetime value depends on the worker's age and life expectancy — a 35-year-old has ~45 more years of life pension; a 60-year-old has ~22. Both estimates are undiscounted; the present value at a 3% discount rate is roughly 40–60% lower than the nominal figure.

Statutory authority

• Cal. Lab. Code §4659(a) — life pension entitlement at 70% PD or greater
• Cal. Lab. Code §4453(b)(7) — wage cap for life pension calculation
• Cal. Lab. Code §4659(c) — annual COLA adjustment based on state average weekly wage

Combined benefit range

The calculator shows your combined wage-replacement benefits as a range with a low and a high scenario. When the PD rating is 70% or greater, the life pension is included at directional lifetime estimates (20 years low, 30 years high).

• Low = TD for your actual claimed weeks (at the applicable cap) + PD at your rating + life pension × 20 years (if eligible)
• High = TD at the applicable aggregate cap + PD × 1.3 stipulated-award buffer + life pension × 30 years (if eligible)

The 1.3× buffer on the high end approximates the upward variance from a Stipulations with Request for Award (Stip Award) resolution versus a strict schedule rating. The 20-/30-year LP windows are directional placeholders, not life-expectancy assumptions.

What this calculator does NOT model

• Compromise & Release (C&R) lump-sum settlement value — negotiated, not formula-based
• Future medical buyout (Medicare-Set-Aside)
• Attorney fees (capped at 9–15% of recovery in CA WC cases)
• Age and occupational-group PD modifiers from the 2005 Schedule (body part is now modeled; age and occupation still are not)
• Supplemental Job Displacement Benefit voucher (Cal. Lab. Code §4658.7) — $6,000 flat for retraining when PD > 0 and no return-to-work offer
• Mileage and transportation reimbursement for medical visits
• Total permanent disability indemnity at 100% rating (§4658(d)) — treated as a separate regime from life pension
• Present-value discounting of life pension lifetime estimates — figures shown are undiscounted nominal

These materially change your final recovery and are evaluated by the attorney on the consultation call.

Update cadence

The TD weekly minimum and maximum are reset annually by the California Department of Industrial Relations based on the State Average Weekly Wage. The figures shown on this page reflect 2026 rates. The PD weekly rate ($290/week) is set by statute and changes only when the legislature amends Cal. Lab. Code §4453.

Important disclaimers

This calculator is an educational tool, not legal advice. The output is a directional estimate of wage-replacement benefits under California workers' compensation law. Your actual recovery depends on medical evidence, employer cooperation, your specific injury, your job classification, and many other factors that an attorney evaluates case-by-case. Past results do not guarantee future outcomes.

For an accurate evaluation of your case, call us at (818) 525-1700 for a free consultation.