Workers’ Compensation Benefits in California: A Complete Guide

by Zach Hansen

If you’ve been injured at work, you need to know what support is available during your recovery. California’s workers’; compensation system provides four main types of benefits when a claim is accepted. Understanding these benefits helps you know what to expect as your case progresses.

Temporary Disability Benefits

Temporary disability benefits replace your wages while you’re unable to work due to your injury. You’ll receive checks every two weeks, each paying two-thirds of your Average Weekly Wage (AWW). This wage calculation is crucial because it determines your benefit amount throughout your recovery.

California law calculates your Average Weekly Wage using different methods depending on your work situation. Regular full-time workers (30+ hours per week, five or more days) see their AWW calculated as the number of working days per week times daily earnings at the time of injury. If you held multiple jobs when injured, your earnings from all employment are combined into one weekly amount. Workers with irregular pay—such as piecework or commission—have their earnings averaged over a period that may extend up to one year. For part-time workers or others whose situations don’t fit standard formulas, the calculation uses 100 percent of what reasonably represents average weekly earning capacity, considering all income sources.

One critical detail: your AWW is based only on your wages, not on benefits packages. Even though many union workers enjoy valuable benefits, these aren’t counted in the calculation.

Temporary disability comes with one strict limitation—you cannot earn income while collecting these benefits. Working while receiving temporary disability payments will create complications in your case and may jeopardize your benefits entirely.

Medical Treatment

Your workers’ compensation coverage includes medical treatment for your work injury. Treatment typically must occur within the insurance company’s Medical Provider Network, a group of approved doctors and facilities.

All treatment requests go through a process called Utilization Review. The insurance company’s medical staff reviews the treatment your doctor recommends. While this oversight process is advertised as ensuring proper care, it also means that some treatment requests may be delayed or denied. Workers facing treatment denials usually cannot go to court to challenge these decisions, which significantly limits your options for disputing medical determinations made through utilization review.

Permanent Disability Benefits

Once you’ve healed as much as possible from your work injury, you may have lasting impairment that qualifies you for permanent disability benefits. This permanent impairment differs from your temporary inability to work—it reflects damage that will remain irrespective of your ability to work.

Most workers receive $290 per week in permanent disability payments, paid biweekly. A doctor provides a disability rating that reflects the extent of your permanent impairment, and this rating determines your specific benefit level. For example, a 20% disability rating is equivalent to 75.5 weeks, or $21,895 in benefits.

Permanent disability benefits differ from temporary disability in two important ways. First, the payment amount is typically lower than temporary disability benefits. Second—and more significantly—you can work while receiving permanent disability payments. This distinction allows you to return to employment while still receiving compensation for the lasting impact of your injury.

Retraining Voucher and Return-to-Work Supplement

If you receive a permanent disability rating and your employer doesn’t offer to bring you back to work on a permanent basis within the required timeframe, you become eligible for a retraining voucher. Formally called the Supplemental Job Displacement Benefit, this voucher provides up to $6,000 in reimbursements.

The voucher covers expenses that help you transition to new employment: tuition for retraining programs, books and educational materials, tools needed for your new field, and computer equipment. These reimbursements offer practical support for building a new career when you cannot return to your previous work.

Every injured worker who receives this voucher can also apply for California’s Return-to- Work Supplement Program. This program is managed by the state, and is separate from benefits provided by the insurance company. The program provides a $5,000 in a one-time payment. Together, the voucher and supplement offer up to $11,000 in support for your career transition—meaningful resources when you’re starting a new professional path.

Moving Forward

California’s workers’; compensation system provides these four types of benefits to support injured workers: wage replacement during recovery, medical treatment, compensation for permanent impairment, and career transition assistance when needed. This overview covers what these benefits provide, but every case involves specific details and circumstances. Consider consulting with a workers’; compensation attorney or representative who can explain how these benefits apply to your particular situation and help you navigate the claims process.