Average Shoulder Settlement: Rotator Cuff, Labrum & More
Shoulder injuries are among the most common and most valuable workers' comp claims in California. The average shoulder injury settlement ranges from $30,000 to $90,000 or more, with surgical cases frequently exceeding $60,000. This guide covers what every type of shoulder injury is worth, from rotator cuff tears to total shoulder replacement, and the factors that determine your settlement value.
California Shoulder Injury Settlement Ranges
Shoulder injuries vary enormously in severity and settlement value. A mild rotator cuff strain that resolves with physical therapy is worth far less than a massive tear requiring open surgery. The following table shows typical settlement ranges for the most common shoulder injuries we handle in California workers' comp cases.
| Injury Type | Typical Range | Key Factors |
|---|---|---|
| Rotator Cuff Strain (No Tear) | $20,000 - $40,000 | Conservative treatment, low PD rating (5-12%), full recovery expected |
| Partial Rotator Cuff Tear | $35,000 - $60,000 | May or may not require surgery, moderate PD rating (10-18%) |
| Full Rotator Cuff Tear (Surgical Repair) | $40,000 - $80,000 | Arthroscopic or open repair, higher PD rating (15-28%), permanent restrictions |
| Labrum Tear (SLAP Repair) | $35,000 - $70,000 | Arthroscopic repair, moderate-high PD rating (12-22%), overhead activity restrictions |
| Shoulder Impingement Syndrome | $25,000 - $50,000 | May require subacromial decompression, PD rating (8-16%) |
| Shoulder Dislocation (Recurrent) | $35,000 - $65,000 | Bankart repair, instability issues, PD rating (12-20%) |
| Total Shoulder Replacement | $80,000 - $150,000+ | Major surgery, high PD rating (25-40%+), permanent limitations, future revision likely |
Note on Settlement Ranges
These ranges are based on typical California workers' comp settlements for shoulder injuries. Your actual settlement may be higher or lower depending on your specific PD rating, age, occupation, earnings, and whether you settle via C&R or Stipulations. High earners in physical occupations typically settle at or above the top of these ranges.
Understanding Rotator Cuff Tear Settlements
Rotator cuff injuries account for the majority of shoulder workers' comp claims in California. The rotator cuff consists of four muscles and their tendons that stabilize the shoulder joint and allow overhead movement. When these tendons tear -- whether from a single traumatic event or repetitive overhead work -- the resulting impairment can be significant and permanent.
What Determines Rotator Cuff Settlement Value
Several factors drive the settlement value of a rotator cuff injury:
- Tear severity: Partial tears are less valuable than full-thickness tears. Massive tears involving multiple tendons receive the highest ratings.
- Surgical outcome: A successful repair with good range-of-motion recovery will have a lower PD rating than a repair with persistent stiffness and weakness.
- Dominant vs. non-dominant arm: Injuries to the dominant arm typically receive slightly higher ratings due to greater functional impact.
- Residual weakness: Persistent weakness in overhead reaching, lifting, or carrying increases the PD rating and settlement value.
- Occupation: A painter who does overhead work all day will receive a higher PD rating than an accountant with the same rotator cuff tear.
Rotator Cuff PD Rating Ranges
- 5-12% Partial tear, treated conservatively, near-full recovery with minor residual symptoms
- 12-20% Full-thickness tear, successful arthroscopic repair, moderate residual limitations
- 18-28% Large tear requiring open repair, persistent weakness, significant overhead restrictions
- 25-38%+ Massive irreparable tear, failed repair, or shoulder replacement needed
Labrum Tear Settlements
The labrum is a ring of cartilage that deepens the shoulder socket and provides stability. Labrum tears are especially common in workers who perform repetitive overhead motions or experience falls with outstretched arms. The two most common types are:
SLAP Tear (Superior Labrum Anterior to Posterior)
SLAP tears occur at the top of the labrum where the biceps tendon attaches. These are common in workers who perform repetitive overhead lifting, throwing, or pushing motions. SLAP tears typically require arthroscopic surgical repair and often result in permanent overhead restrictions.
Typical SLAP tear settlements range from $35,000 to $65,000, with PD ratings of 12-22% depending on the surgical outcome and residual limitations.
Bankart Lesion
Bankart lesions occur at the bottom of the labrum and are usually caused by shoulder dislocations. Workers who fall and dislocate their shoulder often sustain Bankart tears that create chronic instability. Surgical repair (Bankart repair) is frequently required to prevent recurrent dislocations.
Bankart lesion settlements typically range from $35,000 to $65,000, with PD ratings of 12-20%. Cases with recurrent instability even after repair can reach higher values.
Shoulder Replacement Settlements
Total shoulder replacement (arthroplasty) represents the highest-value shoulder injury settlement category. When a workplace injury causes enough damage to the shoulder joint that replacement is necessary, the settlement reflects both the severity of the original injury and the permanent limitations of having an artificial joint.
Shoulder Replacement: $80,000 - $150,000+
- PD Rating: Typically 25-40% or higher, reflecting permanent range-of-motion loss and activity restrictions
- Work Restrictions: Usually permanent lifting restrictions of 10-25 pounds overhead, no repetitive overhead work
- Future Medical: Prosthetic joints have a finite lifespan (15-20 years), meaning revision surgery is often needed, adding significant future medical value
- Settlement Type: Stipulations are often preferable for shoulder replacement cases due to the high value of ongoing medical care and the likelihood of revision surgery
How Shoulder PD Ratings Are Calculated
Your shoulder PD rating under Labor Code §4660 is based on several measurements:
- Range of motion: The evaluating physician measures your shoulder flexion, extension, abduction, adduction, internal rotation, and external rotation, then compares to normal values
- Strength loss: Weakness in specific movements (especially overhead pressing and external rotation) adds to the impairment
- Instability: If your shoulder is unstable or prone to subluxation/dislocation, this adds additional impairment
- Arthroplasty: A shoulder replacement automatically qualifies for a specific impairment rating under the AMA Guides
The raw Whole Person Impairment (WPI) from these measurements is then adjusted through the Permanent Disability Rating Schedule for your age, occupation, and Future Earning Capacity (FEC) rank. For a detailed breakdown, see our guide on how PD ratings are calculated.
Factors That Increase Shoulder Settlement Value
Beyond the type and severity of injury, several factors can significantly increase or decrease your shoulder injury settlement:
Physical Occupation
Workers in physically demanding jobs receive higher PD ratings for the same shoulder injury. A construction worker, nurse, or firefighter with a rotator cuff tear will settle for more than a clerical worker with the same tear because the shoulder injury has a greater impact on their ability to perform their job duties.
Dominant Arm Involvement
If the injured shoulder is on your dominant side, the functional impact is greater for most occupations. While the AMA Guides do not always differentiate between dominant and non-dominant upper extremity, the vocational impact -- and therefore the FEC adjustment -- may be higher for dominant-side injuries.
Multiple Surgeries or Complications
Failed initial surgery, re-tears, infection, adhesive capsulitis (frozen shoulder) after surgery, or the need for revision procedures all increase the settlement value. Each complication typically results in more treatment, a longer recovery, and a higher permanent impairment.
Age at Time of Injury
Older workers receive higher PD ratings under California's rating schedule. A 58-year-old with a rotator cuff repair will settle for meaningfully more than a 32-year-old with the same repair, all other factors being equal.
The AME/QME Evaluation for Shoulder Injuries
The medical evaluation that determines your shoulder PD rating is one of the most important events in your case. Whether you see a Qualified Medical Evaluator (QME) or an Agreed Medical Evaluator (AME), the evaluation process for shoulder injuries typically involves:
- Detailed history: The evaluator asks about the injury mechanism, treatment received, current symptoms, and functional limitations
- Physical examination: Range of motion measurements with a goniometer, strength testing with a dynamometer, and special tests for specific pathology (empty can test for supraspinatus, Hawkins test for impingement, apprehension test for instability)
- Record review: The evaluator reviews all MRI reports, surgical notes, physical therapy records, and prior medical history
- WPI assignment: Based on all findings, the evaluator assigns a WPI percentage using the AMA Guides
Tip: Prepare for Your Evaluation
Before your QME or AME appointment, describe your worst days -- not your best. Report every limitation: difficulty sleeping on the affected side, inability to reach overhead, pain with driving, problems with daily hygiene tasks. Bring a detailed list of activities you can no longer perform and a description of your job's physical demands. The evaluator can only rate what you report and demonstrate. For more on the evaluation process, see our AME vs. QME guide.
Real Settlement Scenarios
Scenario 1: Partial Rotator Cuff Tear -- Conservative Treatment
Worker: 41-year-old office manager. Fell at work and sustained partial rotator cuff tear. Treated with physical therapy and cortisone injection. Returned to full duty after 3 months.
PD Rating: 9% (sedentary occupation group, younger age)
Settlement: $28,000 via Stipulations with open future medical care.
Scenario 2: Full Rotator Cuff Tear -- Arthroscopic Repair
Worker: 50-year-old painter. Repetitive overhead work caused full-thickness supraspinatus tear. Arthroscopic repair with suture anchors. Returned to modified duty with permanent overhead restriction.
PD Rating: 24% (heavy occupation group, age modifier, significant FEC impact)
Settlement: $68,000 via C&R. The high PD rating was driven by the physical demands of painting and the permanent inability to do overhead work.
Scenario 3: Total Shoulder Replacement
Worker: 56-year-old maintenance mechanic. Years of heavy overhead work caused severe rotator cuff arthropathy requiring reverse total shoulder replacement. Unable to return to maintenance work.
PD Rating: 37% (heavy occupation, older age, high FEC rank)
Settlement: $138,000 via C&R, plus $6,000 SJDB voucher and $5,000 return-to-work supplement. The case value reflected both the high PD rating and the significant future medical costs of a shoulder prosthesis.
Common Mistakes That Reduce Shoulder Settlements
Settling Before Surgery Is Complete
If your doctor recommends shoulder surgery and the insurer denies it, do not settle your case to "move on." A pre-surgical PD rating is almost always lower than a post-surgical rating. Resolve the treatment dispute first through Utilization Review and Independent Medical Review, then settle.
Accepting Excessive Apportionment
Insurance companies routinely argue that shoulder problems are caused by "age-related degeneration" rather than work. While some apportionment may be valid under Labor Code §4663, accepting 50% apportionment without challenge on a shoulder that was perfectly functional before the work injury is leaving money on the table.
Not Reporting All Limitations
During the QME or AME evaluation, many workers fail to mention problems like difficulty sleeping on the affected side, inability to wash their hair overhead, pain while driving, or difficulty putting on a seatbelt. Each unreported limitation is a missed opportunity to increase your WPI rating.
Get a Fair Shoulder Injury Settlement
Want to estimate what your shoulder injury might be worth? Use our free settlement calculator for a quick estimate, or visit our shoulder injury workers' comp page for detailed information about the claims process. For guidance on the medical evaluation that determines your PD rating, read our AME vs. QME guide.
Frequently Asked Questions
What is the average workers' comp settlement for a rotator cuff tear?
The average California workers' comp settlement for a rotator cuff tear ranges from $40,000 to $80,000. Cases treated with arthroscopic surgery typically settle between $45,000 and $75,000, while full rotator cuff repairs with anchors can reach $60,000 to $90,000. Factors like your age, occupation, PD rating, and whether you can return to your prior job all influence the final amount.
How much is a labrum tear worth in workers' comp?
A labrum tear workers' comp settlement in California typically ranges from $35,000 to $70,000. SLAP tears (superior labrum anterior to posterior) that require surgical repair tend to settle at the higher end. If the labrum tear also involves rotator cuff damage or a Bankart lesion, the settlement increases due to the combined impairment rating.
Does shoulder surgery increase my settlement value?
Yes, significantly. Shoulder surgery almost always results in a higher permanent disability rating because it indicates a more severe injury and typically leaves permanent residual limitations. A shoulder injury treated conservatively might receive a PD rating of 8-15%, while the same injury requiring surgery could be rated at 15-30% or higher -- a difference of tens of thousands of dollars.
How long does it take to settle a shoulder injury workers' comp claim?
Most shoulder injury workers' comp claims take 12 to 24 months to reach settlement, though complex cases can take longer. The timeline depends on how long treatment takes, when you reach maximum medical improvement, and whether there are disputes over your PD rating or the need for surgery. Claims requiring surgery and extended physical therapy naturally take longer than those resolved with conservative treatment.
Can I get a settlement for a shoulder injury if I have a pre-existing condition?
Yes, but your settlement may be reduced through apportionment. Under Labor Code 4663, the insurance company can argue that a portion of your shoulder disability is due to pre-existing degeneration or prior injury. However, if your work caused, accelerated, or aggravated the pre-existing condition, an attorney can challenge the apportionment and argue for full compensation.
Free Shoulder Injury Settlement Review
If you have suffered a shoulder injury at work, we will evaluate your case for free and tell you exactly what we believe your claim is worth. Our experience with hundreds of shoulder injury settlements means we know when an insurance company is offering too little -- and we know how to fight for more.
Legal Disclaimer: This article provides general information about California workers' compensation shoulder injury settlements. It is not legal advice. Settlement values vary based on individual circumstances including your specific diagnosis, surgical outcome, PD rating, age, occupation, and earnings. The ranges discussed are estimates based on typical cases and should not be relied upon as a guarantee of outcome. Contact our office for a free consultation about your specific case.
David Lamonica (State Bar #165205) has handled hundreds of shoulder injury workers' comp cases, from rotator cuff tears to total shoulder replacements. His understanding of shoulder anatomy, surgical outcomes, and the PD rating system allows him to identify when clients are being undervalued and fight for the full settlement they deserve.