Workers in California who get injured on the job may qualify for disability benefits. These benefits help replace lost wages while the worker recovers. Workers’ compensation offers two types of disability benefits: temporary and permanent.
Understanding the differences between these benefits helps injured workers know what to expect.
Temporary disability benefits
Temporary disability (TD) benefits provide wage replacement when an injured worker cannot perform their regular duties due to a work-related injury. TD benefits are available until the worker recovers enough to return to work or until their condition reaches a point where no further improvement is expected, known as maximum medical improvement (MMI).
TD benefits usually cover two-thirds of the worker’s average weekly earnings up to a maximum limit set by state law. These payments help injured workers manage their financial responsibilities while they heal.
Permanent disability benefits
Permanent disability (PD) benefits come into play if an injury causes lasting effects that prevent the worker from fully recovering. If a worker reaches MMI but still has a disability, they may qualify for PD benefits. The amount of PD benefits depends on the severity of the disability, as determined by a doctor.
California uses a disability rating system to calculate the level of impairment and determine the benefit amount. Unlike TD benefits, which stop when a worker recovers, PD benefits can last for an extended period or even for life, depending on the level of disability.
How benefit types affect workers
Temporary and permanent disability benefits serve different purposes in California’s workers’ compensation system. Knowing the difference between these benefits can help injured workers understand their rights and what type of financial support they may receive during their recovery journey.
