How California Workers' Comp Settlements Work
California operates an at-fault-free workers' compensation system administered by the Department of Industrial Relations (DIR). If you are injured on the job in California, you are entitled to medical care and weekly disability benefits regardless of fault.
For 2026, California's Temporary Total Disability (TTD) benefit rate is 66.67% of your Average Weekly Wage, capped at a maximum of $1,619 per week. TTD benefits are limited to a maximum of 104 weeks for most injuries. Permanent Partial Disability (PPD) benefits are calculated using the AMA Guides (5th Edition) scheduled body part weeks. If you suffer a permanent impairment, a physician will assign an impairment rating which determines the number of weeks of benefits you receive.
Lump-sum settlements in California typically occur through either a Compromise and Release (which closes the entire case, including future medical care, for a single lump sum) or a Stipulated Findings and Award (which keeps future medical care open but pays weekly disability benefits).