Daniel Carter | January 2, 2026 | Workers' Compensation
Injured workers in California can receive benefits under the state’s workers’ compensation laws. If you’ve been injured on the job in California, understanding how your workers’ compensation payments are calculated is essential.
The process of calculating workers’ comp benefits is governed by California law. Workers’ comp calculations can be complex. However, knowing the basics will help you ensure you receive your full benefits.
This guide provides a comprehensive overview of workers’ comp payment calculation in California, with a focus on the latest 2025 rates and rules. For more detailed information or personalized advice, consult with a qualified workers’ comp attorney.
What Is Workers’ Compensation?
Workers’ compensation is a no-fault insurance system that provides benefits to employees who suffer work-related injuries or illnesses. In California, workers’ comp benefits cover medical expenses and rehabilitation costs.
Workers can also receive benefits for loss of income. The amount you receive for lost wages is based on your average weekly wage and the nature of your injury.
How Is Your Average Weekly Wage (AWW) Calculated?
Your Average Weekly Wage (AWW) is the base for calculating your workers’ compensation payment. AWW is calculated by taking your total earnings in the 12 months before your injury and dividing by 52 weeks. This formula is used when someone has worked full-time. However, not all workers are employed full-time by a single employer.
For example, suppose someone works for multiple employers. The worker’s aggregate earnings from all employers must be included. For irregular pay or seasonal workers, a different formula must be used. Specific circumstances can complicate calculations, making legal advice crucial to ensure you receive the correct disability payment.
Worker’s Compensation Temporary Disability Benefits
Temporary total disability benefits are paid if you cannot work while recovering from your injury. TTD benefits are typically equal to two-thirds of a worker’s AWW, up to a state-set maximum. The caps are adjusted annually based on the State Average Weekly Wage (SAWW).
The AWW rates for 2025 are:
- Minimum weekly TTD is $252.03
- Maximum weekly TTD is $1,680.29
Therefore, if your AWW is $1,704, your TD would be $1,136 per week (two-thirds of $1,704). You can receive TTD benefits for up to 104 weeks within the first five years after your injury. For specific severe injuries, this limit extends to 240 weeks.
Workers’ Compensation Permanent Disability Benefits
If an injury results in a permanent disability, a worker may receive permanent disability benefits. The amount of permanent disability is calculated based on your disability rating, which is determined by a doctor and translated into a percentage.
The maximum permanent partial disability rate in California is $290 per week. However, if you are totally disabled, the maximum weekly rate is based on the same rates as your temporary total disability (TTD) benefits.
Therefore, the amount is subject to the annual cost-of-living adjustment that TTD benefits receive.
Settlements for Workers’ Compensation Claims in Fresno, CA
If a worker is permanently disabled, they may settle their workers’ comp claim with the insurance provider. Workers’ comp cases may be settled in two main ways:
- Compromise & release (C&R): You receive a lump sum payment for your disability. Your case is closed, and no future medical treatment is covered.
- Stipulated award: Payments are spread out in weekly checks based on your disability rating, with ongoing medical coverage.
The type of workers’ comp settlement that is best for your situation depends on various factors. Before accepting a workers’ compensation settlement, it is in your best interest to seek advice from an experienced California workers’ compensation lawyer.
Other Benefits Injured Workers Can Receive Under California Workers’ Compensation Laws
In addition to disability payments, injured workers can also receive:
- Medical expenses: All reasonable and necessary medical treatment for your injury is covered.
- Rehabilitation and vocational retraining: If you cannot return to your previous job, you may be eligible for retraining.
- Death benefits: If a worker dies from a work-related injury, dependents may receive funeral expenses and dependent benefits.
Workers’ compensation benefits may also include reimbursement for mileage to medical appointments. They may also qualify for the Return to Work Supplement Program.
Why You Need a Fresno Workers’ Comp Attorney
Navigating workers’ comp in California can be challenging. It is crucial to file timely and complete claims. Otherwise, you could risk jeopardizing your workers’ comp benefits. An experienced attorney can help you accurately calculate your benefits, avoid being underpaid, and ensure you receive all the benefits provided by law.
If you have questions or need assistance with your claim, contact the Carter Law Group for a free consultation with a Fresno workers’ compensation lawyer.
Visit Our Personal Injury Law Firm in Fresno, CA
Carter Law Group
2445 Capitol St #105, Fresno, CA 93721, United States
(559) 485-1212
