Temporary Disability (TD): Getting Paid While You Heal
What Is Temporary Disability?
Temporary disability benefits replace your lost wages when your doctor takes you completely off work or puts you on restricted duty that pays less than your normal wage.
Key Point: "Temporary" doesn't mean a few days. Many workers receive TD for months or even the full 2-year maximum while recovering from surgery, physical therapy, or ongoing treatment.
How Much Does TD Pay?
TD pays two-thirds (66.67%) of your average weekly wage under Labor Code §4653, calculated from your earnings before the injury. This is tax-free.
2026 TD Rates:
- • Maximum weekly rate: $1,764 (if your average wage is $2,646+ per week)
- • Minimum weekly rate: $243.65 (for low-wage workers)
- • Payments arrive every two weeks (biweekly)
- • First payment due within 14 days of doctor's off-work order per Labor Code §4650
Example Calculation:
Scenario: You earned $4,000/month ($1,000/week) before injury. Your doctor takes you off work for back surgery.
TD Payment: $1,000 × 2/3 = $666.67 per week ($1,333.34 every two weeks)
When Does TD Start and End?
TD starts: The first day your doctor takes you off work or restricts you to lower-paying work. There's a 3-day waiting period before payments begin (unless you're off work for 14+ days, then it's retroactive).
TD ends when:
- • Your doctor releases you back to regular work with no restrictions
- • You reach Maximum Medical Improvement (MMI / "permanent and stationary")
- • You hit the 104-week maximum
- • You return to modified work earning at least your pre-injury wage
- • You refuse suitable work offered by your employer
The 104-Week Limit
California caps TD at 104 weeks total within 5 years from the date of injury under Labor Code §4656. For most injuries, this is plenty of time to recover or reach MMI.
Exception: Certain severe injuries (amputations, severe burns, total blindness) may qualify for extended TD beyond 104 weeks.
Common Tactic: Insurance companies pressure doctors to declare you "permanent and stationary" early to stop TD payments. If you're still improving with treatment, your attorney can fight this through medical evidence.
Modified Duty & Partial TD
If your doctor releases you to modified (light-duty) work but you earn less than before, you receive the difference:
Partial TD Example:
Before injury: $1,000/week
Modified duty pay: $600/week
Lost wages: $400/week
Partial TD payment: $400 × 2/3 = $266.67/week
Permanent Disability (PD): Compensation for Lasting Impairment
What Is Permanent Disability?
Permanent disability compensates you for lasting physical or mental impairment that remains after you've healed as much as possible. This isn't about whether you can work—it's about how the injury permanently affects your body.
Important: "Permanent disability" doesn't necessarily mean you're disabled from working. A 20% permanent disability rating means you have a 20% impairment to your body, but you may still be able to work (possibly in a different job or with accommodations).
How Is Permanent Disability Rated?
Your permanent disability is expressed as a percentage from 0% to 100%. The rating process involves:
- 1. Doctor's Evaluation: Your treating doctor examines you once you reach MMI and assigns impairment ratings using the AMA Guides and California-specific formulas.
- 2. Rating Report: The doctor writes a detailed report explaining the impairment (range of motion loss, functional limitations, pain, etc.).
- 3. Rating Calculation: A rating specialist converts the medical findings into a percentage using California's Permanent Disability Rating Schedule.
- 4. Settlement Value: The percentage is multiplied by state-determined dollar amounts based on your age, occupation, and injury date, as outlined in Labor Code §4658.
What Factors Affect Your Rating?
- • Body part injured: Back and brain injuries typically rate higher than finger or toe injuries
- • Range of motion loss: Measured objectively with instruments
- • Pain level: Chronic pain increases the rating
- • Functional limitations: What activities you can no longer do
- • Age: Younger workers receive higher settlements (injury affects more working years)
- • Occupation: Laborers typically receive higher ratings than sedentary workers for the same injury
- • Future medical needs: Ongoing treatment requirements
Sample Permanent Disability Ratings
Mild Carpal Tunnel (No Surgery)
5-10%Typical settlement: $10,000-$25,000
Herniated Disc with Surgery
20-35%Typical settlement: $45,000-$120,000
Severe Shoulder Injury (Multiple Surgeries)
25-45%Typical settlement: $60,000-$180,000
Traumatic Brain Injury (Moderate)
50-75%Typical settlement: $200,000-$400,000+
Total Permanent Disability (Cannot Work)
100%Weekly payments for life (~$1,764/week as of 2026)
Lump Sum vs. Ongoing Payments
Once your permanent disability percentage is determined, you choose how to receive payment:
Lump Sum (Compromise & Release)
You receive all money at once and close your case permanently.
Pros:
- • Immediate full payment
- • No ongoing contact with insurance
- • Can invest or use as needed
- • Case is over
Cons:
- • No future medical coverage
- • Can't reopen if condition worsens
Biweekly Payments (Stipulated Award)
You receive payments every two weeks over several years.
Pros:
- • Future medical coverage continues
- • Can reopen if condition worsens
- • Structured income stream
Cons:
- • No immediate lump sum
- • Ongoing insurance company contact
- • Payments can be delayed
Most workers choose lump sums to avoid dealing with insurance companies and to have immediate access to funds. However, if you anticipate expensive future medical needs (like additional surgeries), keeping medical open through a Stipulated Award may be wise.
Receiving Both TD and PD
Most workers receive both temporary and permanent disability in sequence:
Typical Timeline:
Injury Occurs
You're hurt at work and report it to your employer
Temporary Disability Starts
Doctor takes you off work; you receive biweekly TD payments (~66% of wages)
Treatment Period
Surgery, physical therapy, pain management (6 months - 2 years typical)
Reach MMI (Permanent & Stationary)
Doctor declares condition stabilized; TD payments end
Permanent Disability Rating Issued
Doctor assigns percentage; settlement value calculated
Permanent Disability Settlement
You receive lump sum or start biweekly PD payments
Common Questions & Scenarios
What If I Disagree with My Permanent Disability Rating?
Insurance companies routinely dispute ratings by sending you to their own doctor (called a Qualified Medical Evaluator or QME). If the two doctors disagree, your attorney can:
- • Challenge the QME report with medical evidence
- • Request a third-party medical evaluation
- • Present your case to a Workers' Compensation Judge
Don't accept lowball ratings. Insurance company doctors are incentivized to minimize your impairment. A workers' comp attorney ensures accurate ratings based on real medical evidence.
Can I Return to Work While Receiving Permanent Disability?
Yes. Permanent disability doesn't require you to be unable to work. It compensates you for the permanent impairment itself, regardless of whether you return to work. You can work full-time and still receive a PD settlement.
What If My Temporary Disability Payments Stop Too Soon?
Insurance companies sometimes cut off TD before you've reached MMI. Common tactics:
- • Pressuring your doctor to release you back to work early
- • Disputing your doctor's work restrictions
- • Offering "modified duty" jobs that don't actually accommodate your restrictions
If this happens, an attorney can file for expedited hearing to restore benefits while your case is pending.
What Is Total Permanent Disability?
Total permanent disability (TPD) is extremely rare and requires proving you cannot perform any gainful employment whatsoever. This isn't just about your old job—it's about any work.
If granted, TPD pays weekly benefits for life (currently about $1,764/week). Qualifying injuries include:
- • Total blindness in both eyes
- • Loss of both hands or both feet
- • Severe traumatic brain injury causing cognitive impairment
- • Paralysis from spinal cord injury
- • Combination of injuries totaling 100% disability
How Attorneys Maximize Your Disability Benefits
Workers with attorneys receive 3x higher settlements on average than unrepresented workers. Here's why:
Temporary Disability
- • Fight early "P&S" declarations
- • Ensure accurate wage calculations
- • Restore wrongfully terminated benefits
- • Negotiate modified duty terms
Permanent Disability
- • Challenge lowball QME ratings
- • Hire medical experts for testimony
- • Identify all body parts affected
- • Maximize age/occupation adjustments
Real Example: Insurance company's initial offer was 15% permanent disability ($32,000). After attorney hired medical experts and challenged the QME report, rating increased to 35% ($92,000). The attorney's involvement resulted in $60,000+ in additional compensation.
Attorney fee: 15% of recovery. Worker still netted $50,000+ more than the original offer.
When to Contact a Workers' Comp Attorney
Get legal help if:
- • Your temporary disability payments were denied or stopped
- • The insurance company is pressuring you to accept a low permanent disability rating
- • Your doctor declared you P&S but you're still in pain and need treatment
- • The QME rated you much lower than your treating doctor
- • You're unsure whether to take a lump sum or biweekly payments
- • You've been receiving TD for months with no settlement offer
Free consultations. We only get paid if we win your case (15% contingency fee). No upfront costs.