In this video, we’ll delve into a crucial aspect of workers’ rights-how workers’ compensation is calculated. I am Matt Eason, a seasoned practitioner of employment and workers’ compensation law in the Sacramento Valley for 25 years. One of the most common queries we receive from clients is about calculating workers’ compensation. It’s a topic of significant importance, and we’re here to help you with the information you need.
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To redefine the question, there are two different benefits in workers’ compensation that ultimately are calculated. The two benefits that need calculations are temporary and permanent disability payments.
Temporary disability payments are calculated based on two-thirds of your average weekly earnings. When calculating your average weekly earnings, you look at not only what your base pay was but also whether you were receiving additional incentive pay, whether you were receiving overtime, or whether you had another job that you could not perform. You consider all those, and it’s two-thirds of your average weekly earnings with some statutory maximums.
Many people don’t understand that your permanent disability award is also a calculation based on formulas. Unlike in the personal injury world, you receive a single number based on lost wages, medical bills, and a pain and suffering component. Workers’ compensation instead gives you a permanent disability award based on a calculation of your disabilities. Unfortunately, to determine your disabilities, they are not necessarily looking at your loss of job benefits or your pain; instead, they are looking at your limitations in the workforce.
Permanent disability benefits are calculated based on your limitations in the workforce. The limitations are usually based on what things you can and cannot do or specific requirements you may have. For example, do you have a limitation in walking, standing, or lifting? Then, based on those limitations, they categorize the length, amount, or duration of those limitations. Are you limited to 10 pounds or 20 pounds or sometimes or occasionally? Do you have to stand and sit and stand and sit? Those limitations then go into a formula that calculates your disability rating percentage. That disability rating percentage goes into another formula that calculates how much you receive in compensation for your permanent disability.
If you’ve experienced an on-the-job injury in California and find the workers’ compensation system complex and challenging to navigate, you’re not alone. The system, mainly when calculating temporary and permanent disability rates, can be intricate. If you need clarification on whether you’re being paid correctly, we encourage you to seek the advice of a professional. Please contact our experienced Sacramento workers compensation lawyers for a free consultation. We help you understand and calculate your permanent and temporary disability rates.
