Data & Research

California Workers' Comp Statistics 2026

Key data points on California's workers' compensation system, including annual claim volume, settlement averages by injury, TD rates, and industry breakdowns.

David Lamonica, Esq. · California Workers' Compensation Attorney
Reviewed by David Lamonica, Esq. · Board Certified Workers' Compensation Specialist
Published February 5, 2026

System Overview

~900,000
Annual Claims Filed
Source: DIR / WCIRB
~$30B
Total Annual System Cost
Source: WCIRB
20-25%
Initial Claim Denial Rate
Source: DWC Annual Report

2026 Temporary Disability Rates

Temporary Disability (TD) benefits replace two-thirds of your lost wages while you recover, subject to state minimum and maximum limits. These rates are updated annually by the DIR Temporary Disability Rates.

MINIMUM TD RATE
$265/week
For low-wage earners. Exact: $264.61/week.
MAXIMUM TD RATE
$1,764/week
For workers earning ~$137,000+/year. Exact: $1,764.11/week.

How it's calculated: Your TD rate = 2/3 of your average weekly wage, capped at the maximum. For example, if you earn $1,200/week, your TD would be $800/week (2/3 of $1,200). TD benefits are tax-free. Labor Code §4653

Average Settlements by Injury Type

Settlement values vary widely based on the severity of the injury, your permanent disability rating, age, occupation, and future medical needs. These ranges represent typical outcomes in California.

Injury Type Settlement Range
Back Injury $45,000 - $120,000
Shoulder Injury $30,000 - $90,000
Knee Injury $35,000 - $100,000
Head Injury / TBI $60,000 - $500,000+
Carpal Tunnel $20,000 - $60,000
Neck Injury $30,000 - $100,000
Hip Injury $40,000 - $120,000
Burn Injury $50,000 - $200,000+

Settlement ranges based on attorney case data for claims with permanent disability ratings. Actual values depend on individual case factors.

The Attorney Advantage

Research shows that workers with attorney representation receive on average 30-40% higher settlements than those who negotiate on their own. This is after accounting for attorney fees (typically 15% in California workers' comp cases).

Source: Workers' Compensation Research Institute (WCRI) studies on claim outcomes by representation status.

Claims by Industry (Top 5)

Some industries have significantly higher injury rates than others. Construction and healthcare consistently lead California in workers' comp claim volume.

Industry Claim Rate
Construction 5.1 per 100 workers
Healthcare 4.8 per 100 workers
Manufacturing 3.9 per 100 workers
Transportation 4.3 per 100 workers
Retail 3.2 per 100 workers

Claim rates based on BLS Injuries, Illnesses, and Fatalities data for California.

Key Benefit Amounts

Supplemental Job Displacement Benefit

$6,000 + $5,000

$6,000 SJDB voucher for retraining/education plus $5,000 return-to-work supplement (RTWS) for injuries on or after January 1, 2013.

DIR Supplemental Job Displacement Benefit

Medical Treatment Rights

All Reasonable Treatment

Labor Code 4600 provides the right to all reasonable and necessary medical treatment for your work injury, for as long as it is needed. There is no dollar cap on medical care.

Labor Code §4600

Death Benefits

$250K - $320K

Death benefits range from $250,000 (one dependent) to $320,000 (three or more dependents), plus up to $10,000 for burial expenses.

DIR Workers' Comp Benefits Overview

Late Payment Penalties

10% + Up to 25%

Self-imposed 10% increase for late TD payments, plus up to 25% penalty under LC 5814 for unreasonable delay or refusal to pay benefits.

Labor Code §5814

Notable Trends for 2026

Rising Mental Health Claims

Workers' comp claims involving PTSD, anxiety, and depression have increased significantly, particularly among healthcare workers and first responders. California's Labor Code 3212.87 creates a rebuttable presumption for PTSD claims by certain public safety employees.

Remote Work Injury Claims

Ergonomic injuries from home office setups continue to rise. Carpal tunnel, back pain, and neck injuries from inadequate home workstations are increasingly common workers' comp claims. California law covers injuries sustained while working from home if the activity was work-related.

Increased Cal/OSHA Enforcement

Cal/OSHA has expanded enforcement efforts around heat illness prevention, workplace violence prevention (AB 553), and indoor air quality. Employers facing Cal/OSHA violations may also face higher workers' comp premiums.

Estimate Your Settlement

Use our free settlement calculator to get a personalized estimate based on your specific injury, age, occupation, and other factors. The calculator uses these statistical ranges plus your individual circumstances.

Try the Settlement Calculator

Frequently Asked Questions

Where do California workers' comp statistics come from?

The primary sources for California workers' compensation data are the Division of Workers' Compensation (DWC), the Workers' Compensation Insurance Rating Bureau (WCIRB), the Bureau of Labor Statistics (BLS), and the California Department of Industrial Relations (DIR). Settlement amounts are based on attorney case data and WCAB records.

Why do settlement amounts vary so widely for the same injury?

Settlement values depend on many factors beyond the injury type: your permanent disability rating, age, occupation, pre-injury wages, need for future medical care, and whether you have an attorney. Two people with the same back injury can receive very different settlements based on how the injury affects their ability to work in their specific occupation.

Is the 20-25% denial rate accurate?

Yes. Studies consistently show that approximately 20-25% of California workers' comp claims are initially denied. However, many of these denials are overturned on appeal. Workers represented by attorneys have significantly higher rates of successful appeals. Common denial reasons include late filing, disputed causation, and insufficient medical evidence.

How are 2026 TD rates calculated?

Temporary Disability (TD) rates are set annually by the DIR based on the State Average Weekly Wage (SAWW). The minimum and maximum rates are adjusted each January 1st. For 2026, the minimum TD rate is $265.61/week and the maximum is $1,764.11/week. Your actual TD rate is two-thirds of your average weekly wage, capped at these limits.

Do workers with attorneys really get 30-40% higher settlements?

Multiple studies, including research from the RAND Corporation and the Workers' Compensation Research Institute, have found that represented workers receive significantly higher settlements on average. This is because attorneys understand how to document injuries properly, negotiate with insurance companies, and navigate the WCAB system. The contingency fee (typically 15%) is more than offset by the increase in settlement value.

Where Does Your Case Fit?

Statistics are useful for context, but every case is different. Get a free evaluation from experienced California workers' comp attorneys who can assess your specific situation.

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