In 2023, the US Bureau of Labor Statistics data shows that private industry employers reported 2.6 million non-fatal injuries and illnesses. This is 8.4 percent lower from 2022.
A workers’ compensation lawyer says that experiencing workplace injury may qualify you to avail of the benefits through an insurance system known as workers’ compensation. The injured party can file for these necessary benefits regardless of who is at fault for the accident or incident.
This system is designed to allow injured workers to return to their jobs without compromising their personal finances. How do you determine which settlement is best for you? Let’s explore the factors that affect the calculation of your benefits.
Overview of Workers’ Compensation
In California, workers’ compensation is a no-fault system. This means that you don’t have to prove negligence on your employer’s part to receive benefits. Instead, you must demonstrate that your injury occurred at work while you were still employed.
The California workers’ compensation calculator determines your permanent disability percentage in calculating the amount of permanent disability benefits you can receive from a settlement. In 2024, if you have at least 1% permanent disability, you are privileged to at least $160/week and up to %290/week in benefits. If you are unable to continue your job duties, you may also be offered a supplemental job displacement benefit of $6,000.
Report your injury to your employer as soon as possible. Keep in mind that delays can complicate your claim. You’ll typically need to fill out a claim form and may have to see a doctor approved by your employer’s insurance.
Types of Settlements
Generally, there are two primary types of settlements available in California: structured settlements and stipulated agreements.
A structured settlement involves regular payments made to you over time. This arrangement can provide financial stability, especially if you expect long-term medical needs or recovery. The payments are usually outlined in a schedule, helping you budget your expenses effectively.
A stipulated agreement is a more straightforward approach compared to a structured settlement. In a stipulated agreement, you and your employer agree on a specific compensation amount. This is usually paid in one lump sum. This settlement type allows for immediate access to funds, which can be beneficial if you have pressing financial obligations.
There are also temporary disability benefits and permanent disability benefits, which can be part of your overall settlement package. Evaluate your situation carefully so you can weigh the advantages and disadvantages of each settlement type before making an informed decision.
Lump-Sum Settlements
When you opt for a lump-sum settlement, you’ll need to evaluate whether the total amount offered fully reflects the long-term impact of your injury, including potential future medical expenses and lost earning capacity.
Structured Settlements
When considering a structured settlement, make sure that the payment schedule aligns with your financial needs and future expenses. You can also negotiate the duration and total amount based on your specific situation. Keep in mind that structured settlements can sometimes be more complicated than lump-sum payments so you will need to seek the guidance of a workers’ compensation lawyer.
Compromise and Release
Compromise and Release is a common settlement option in California workers’ compensation cases. This option allows you to resolve your claim in a single lump sum. This type of settlement means you’re agreeing to a one-time payment that covers all your past and future medical expenses, lost wages, and any other related costs.
Once you accept the settlement, you’re already closing your case. You can’t go back and seek additional benefits for that particular injury. This can be beneficial if you prefer a quick resolution and want to avoid the uncertainties of a prolonged claims process.
Before you agree to a Compromise and Release, examine and fully understand the implications. You should consider whether the lump sum is sufficient to cover your ongoing medical needs and other expenses.
Stipulated Awards
A Stipulated Award is a type of workers’ compensation settlement that allows you to resolve your case while retaining your right to future medical treatment related to your work injury.
With a Stipulated Award, the agreed-upon settlement doesn’t close your medical benefits. This arrangement can be beneficial if you anticipate needing ongoing medical care for your injury. The process typically involves your attorney negotiating the terms, after which a judge must approve the settlement.
One key advantage of a Stipulated Award is that you can receive your benefits in a lump sum or in installments, depending on what you decide. Discuss thoroughly with your lawyer to help you evaluate whether a Stipulated Award aligns with your long-term goals and circumstances.
Temporary Disability Benefits
Temporary disability benefits are designed to replace a portion of your lost wages while you recover. In California, you typically receive about two-thirds of your average weekly wage, subject to certain maximum limits set by the state.
To qualify, you must be unable to perform your usual job duties or any suitable work for more than three days. Once your doctor certifies your disability, you can start receiving payments.
Temporary disability benefits are paid for a limited time, usually up to 104 weeks within five years from your injury date. Remember, these payments are limited, so if you are still unable to return to work after this time, you may need to consider other options, such as permanent disability benefits or vocational rehabilitation.
Permanent Disability Benefits
If a work-related injury or illness causes long-term disability, you may be eligible for California’s permanent disability benefits. These benefits help compensate you for the reduced ability to perform work-related tasks due to your injury. They’re designed to provide financial support for those who can no longer return to their previous employment or need assistance in transitioning to a different role.
A medical evaluation determines your eligibility for permanent disability benefits based on the severity of your injury. The evaluation considers your physical and mental limitations and how these limitations impact your daily life and work capabilities. Based on this assessment, you’ll receive a rating that determines the amount of compensation you’re entitled to.
Factors Influencing Settlements
Several key factors consistently affect the settlements you may receive in a workers’ compensation claim in California. The severity of your condition, your need for medical treatment, and the impact on your daily life all contribute to the settlement amount. If your injuries lead to permanent disability, you’re likely to receive a higher settlement.
Another factor that plays a role in influencing your settlement amount is your medical expenses. Documenting all medical bills and related costs strengthens your case. Insurance adjusters will review these expenses closely.
Your ability to return to work is important and is primarily considered when calculating the settlement amount. If you’re unable to resume your previous job or need to switch careers, this can increase the settlement value. Clear documentation, witness statements, and expert opinions can strengthen your claim.
Conclusion
In California, understanding the types of workers’ compensation settlements helps you adjust and plan your budget accordingly. Don’t hesitate to consult with a legal professional to assist you in choosing the right settlement option.