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How Is Workers’ Compensation Calculated?

Sustaining an injury on the job can set back your earning ability, but understanding how to calculate workers’ compensation benefits will help you and your attorney recover fair compensation and plan for your future accordingly. It requires a bit of math and familiarity with state law. In general, you have the right to recover up to two-thirds of your pre-tax gross wage under California law.

To calculate this number, we recommend dividing your gross wage by 52 (the number of weeks in a year) to find your weekly wage, then dividing your weekly wage by three and multiplying that number by two to find the two-thirds number. A workers’ compensation lawyer from our firm can calculate the value of your claim for you.

What Damages Does Workers’ Compensation Cover?

When you suffer an injury while performing your job, you are entitled to file a workers’ compensation claim. According to LAB § 3700, workers’ compensation is a form of insurance every employer in California must provide for their employees in case of an illness or accident.

Workers’ compensation not only protects employers from being the target of lawsuits, but it also protects workers by paying for damages such as:

  • Medical expenses: Your injury could require surgery, which means you might have to be hospitalized, perhaps for days or longer. You may need medication or special medical equipment, x-rays, and blood tests, among other diagnostic tests and laboratory work. You could even require long-term care, physical therapy, and home modifications.
  • Lost income and benefits: Depending on whether your injury puts you out of work for a short time or permanently, workers’ compensation can provide you with a portion of your average income and benefits, including lost future earning capacity.

An injury affects your health and financial outlook. Workers’ compensation exists to cover your income while you recuperate, as well as your medical expenses, so you don’t have to pay for them out of your pocket.

How Can You Calculate Your Workers’ Compensation?

We strongly urge you to consult a workers’ compensation attorney with experience handling these types of cases. They can help you recover compensation and calculate the value of your compensation claim. This assessment allows you to pursue an amount of workers’ compensation that adequately covers your damages.

There is a process under California law to calculate workers’ compensation. According to the California Department of Industrial Relations (DIR), as of January 2023, the minimum amount of compensation you can receive is $242.86, and the maximum amount is $1,619.15 per week.

Example of Calculating Workers’ Compensation

You are entitled to receive two-thirds of your per-tax gross income. So, if you make $52,000 per year, two-thirds of that dollar amount is approximately $34,666. To arrive at that solution, we divide $52,000 by 3, which gives us one-third of the number. Then, we multiply that number by 2 to arrive at the two-thirds amount.

To calculate your weekly workers’ compensation, divide your yearly income by 52, the number of weeks in a year. In this example, $52,000 equals $1,000 per week. Dividing $1,000 by 3 gives us approximately $333. Multiplying this number by 2 gives us $666, which is two-thirds of $1,000.

In this example, you would receive $666 in workers’ compensation for your income. Workers’ compensation typically covers all costs related to medical treatment for your injury if your employer’s claims administrator approves your claim. Until then, you are eligible for up to $10,000 for your medical expenses.

How Can a Workers’ Compensation Attorney Help You?

Workers’ compensation cases can be complex. You have to file a claim, which your employer’s claims administrator will review. You can do everything right and still receive a denial of your claim. You have an injury and medical bills. You can’t work, so you aren’t earning an income until a doctor clears you to go back to work, and depending on the severity of your injury, you may never work again.

This can put you and your family in a bind. If the claims administrator approves your claim, you may receive a settlement offer that is less than what you deserve, and you may not even know it unless you are able to calculate the value of your claim.

They Can Assume All Responsibilities Related to Your Claim

Having an attorney on your side can make a difference. We will investigate your case to discover the facts and collect evidence to back up your claim, including your medical bills and records. This is why we recommend seeking medical treatment for your injuries as soon as possible. This way, your doctor can document them and any medical treatment you receive.

We will also speak to medical and financial experts about your case so they can provide testimony in support of your claim.

You don’t have to worry about going about against the insurer by yourself, either. We will handle the workers’ compensation calculation and negotiate a fair settlement on your behalf. After reaching a settlement agreement, we will review the terms of the agreement with you so you understand them. You have the ability to reject or accept settlement offers. If necessary, we may file a lawsuit, and we will stand beside you and represent you at every hearing.

Learn More About Calculating Your Workers’ Compensation Today

If you already know your weekly or annual gross income, all it takes is a little math to figure out how much workers’ compensation you will receive to cover your lost wages. However, a workers’ compensation lawyer from KJT Law Group has the experience and the training to calculate your losses. We can use these numbers to weigh settlement offers and pursue an adequate amount of compensation for you.

Our lawyers are here to help, and they are ready to talk to you about your workers’ compensation case. To learn more about calculating workers’ compensation during a free consultation, please don’t hesitate to contact us at (818) 507-8525 today.

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