How are Workers' Compensation Payments Calculated?


One of the most common questions work injury victims ask is: “How much is my claim worth?” Although it is difficult to determine a figure in advance, there are some methods that can be used to predict what factors will affect your benefits.

Types of Workers’ Compensation Benefits

The amount of workers’ compensation benefits a person receives often depends on the severity of their injury, and how it affects their ability to work. Workers’ compensation benefits are classified as temporary total disability, temporary partial disability, permanent total disability, and permanent partial disability.

Lump-Sum Settlements vs. Weekly Payments

The traditional model of receiving workers’ compensation benefits centers on a weekly payment structure. The amount that an injury victim receives will depend on their pre-injury wages, the severity of their injury, and other factors.

Sometimes, an injured employee and their employer/workers’ compensation insurance provider opt for a lump sum settlement instead of the payment of weekly checks. In these cases, the victim will receive a one-time payment of their total projected expenses. Employees who decide on a lump sum settlement agreement often receive the payment on the condition that their case cannot be reopened.

Average Weekly Wage Calculations

One equation for determining workers’ compensation benefits involves the calculation of an “average weekly wage.” Average weekly wage calculations depend on the injury victim’s type of employment (e.g. full-time vs. seasonal work) and the average pay throughout the state. Essentially, this calculation is used to determine a general figure for the wages an employee will lose while they are unable to work.

Although there is some uniformity in workers’ compensation calculation, benefits can be influenced by elements such as the injury victim’s disability classification, the expected progression of their condition, and negotiated terms with an employer and their insurance company. Each case is unique, and a final figure is often not determined until a case is ultimately resolved. For experienced insight into your claim, contact the Law Offices of Wax & Wax.

To schedule a free evaluation of your workers’ compensation case, call our team of lawyers at 818-946-0608 or send us a message including your name, phone, and email address.
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