California’s workers’ compensation system is one of the largest in the country, protecting millions of employees across various industries. Injured workers who suffer on-the-job injuries are entitled to receive benefits under California’s workers’ compensation laws, including medical care, lost wages, and permanent disability benefits. While many claims resolve for modest amounts, some workers receive substantial settlements due to the severity of their injuries or permanent impairments.
In this article, we highlight several of the largest known workers’ compensation settlements in California, explain what factors lead to high payouts, and discuss how the system determines compensation.
What is a Workers’ Comp Settlement?
A workers’ compensation settlement is a financial agreement between an injured worker and the employer’s insurance carrier to resolve a workers’ comp claim. These settlements may take the form of:
- Compromise and Release (C&R): A lump sum that closes out medical and wage benefits.
- Stipulated Award: An agreement where medical care remains open, and permanent disability benefits are paid over time.
Top Workers’ Comp Settlements in California
1. $11 Million Settlement – Construction Worker, Los Angeles
In one of California’s largest workers’ comp settlements, a Los Angeles construction worker secured an $11 million settlement after falling from scaffolding and sustaining a traumatic brain injury (TBI) and spinal cord damage. The worker was left paralyzed and required lifelong medical care and home modifications.
2. $9.8 Million Settlement – Warehouse Worker, Fresno
A Fresno warehouse employee who suffered severe crush injuries to the legs and pelvis when pinned by a forklift received $9.8 million in a C&R settlement. The injuries led to multiple surgeries, permanent mobility loss, and the need for prosthetic devices.
3. $8.9 Million Settlement – Oil Field Accident, Bakersfield
In Bakersfield, an oil field worker reached an $8.9 million settlement after a blowout preventer failed, causing catastrophic burns over 50% of his body. The worker faced extensive skin graft surgeries, permanent disfigurement, and disability.
4. $7 Million Settlement – Utility Worker, San Diego
A San Diego utility technician injured while working in a confined space reached a $7 million settlement. The worker sustained brain damage due to oxygen deprivation, leading to cognitive impairments and the inability to return to work.
5. $6.5 Million Settlement – Delivery Driver, Sacramento
A Sacramento delivery driver who suffered herniated discs and permanent nerve damage in a vehicle collision while on duty received a $6.5 million settlement. The worker faced chronic pain, restricted mobility, and future wage losses.
Why Are Some Workers’ Comp Settlements So Large?
1. Catastrophic Injuries
Severe injuries such as spinal cord damage, traumatic brain injuries, and severe burns often result in settlements that exceed $5 million due to the need for lifetime medical care and permanent disability.
2. Permanent Total Disability
When a worker is permanently unable to work in any capacity, settlements tend to increase to account for long-term wage loss and healthcare needs.
3. High Medical Costs
Extensive surgeries, ongoing rehabilitation, prosthetics, and home care services can drive up settlement values.
4. Age and Work History
Younger workers with long remaining careers tend to receive higher settlements when they lose future earning potential.
5. Employer’s Willingness to Settle
Some cases result in larger settlements when employers or insurers wish to avoid prolonged litigation or exposure to further liability.
Workers’ Comp Benefits in California
California workers’ compensation provides the following benefits:
- Medical treatment – Fully covered for work-related injuries.
- Temporary disability (TD) – Wage replacement while recovering.
- Permanent disability (PD) – Compensation for permanent impairments.
- Supplemental job displacement benefits – Vouchers for retraining.
- Death benefits – Paid to surviving dependents when an employee dies from work-related injuries.
California’s Permanent Disability Ratings
Permanent disability settlements are largely based on a Permanent Disability Rating (PDR) assigned by the treating physician or a Qualified Medical Evaluator (QME). The rating factors in:
- The severity of the injury.
- Age and occupation.
- Functional limitations resulting from the injury.
The higher the disability percentage, the larger the potential settlement.
Recent Changes in California Workers’ Comp Laws
SB 863 Reform
California’s Senate Bill 863, enacted in 2013, made changes to workers’ comp benefits, streamlining the medical review process and increasing permanent disability benefits in certain cases (California Division of Workers’ Compensation, 2023).
COVID-19 Presumptions
Workers who contracted COVID-19 in the workplace gained access to certain presumptions under California law, making it easier to qualify for workers’ comp benefits related to COVID-19 (California Department of Industrial Relations, 2022).
Do Workers’ Comp Settlements Differ from Personal Injury Lawsuits?
Yes. Workers’ compensation settlements:
- Do not include pain and suffering damages.
- Are limited to wage loss and medical benefits.
- Do not require proving employer negligence.
In contrast, personal injury lawsuits (e.g., third-party claims for defective equipment) may offer broader compensation, including non-economic damages.
Conclusion
While most workers’ compensation settlements in California range from a few thousand to a few hundred thousand dollars, cases involving catastrophic injuries often result in multimillion-dollar awards. These high-dollar settlements reflect the lifelong impact of certain injuries and the importance of adequate financial support for medical care and lost wages.
If you’ve suffered a serious workplace injury, an experienced California workers’ compensation attorney can help you navigate the system and maximize your settlement.
References
- California Department of Industrial Relations. (2022). COVID-19 and workers’ compensation. https://www.dir.ca.gov
- California Division of Workers’ Compensation. (2023). Guidebook for injured workers. https://www.dir.ca.gov/dwc
- Los Angeles Times. (2023). $11 million workers’ comp settlement for construction fall victim. https://www.latimes.com
- Fresno Bee. (2022). Warehouse worker wins $9.8 million in workplace injury settlement. https://www.fresnobee.com
- San Diego Union-Tribune. (2023). Utility worker reaches $7 million settlement for confined space injury. https://www.sandiegouniontribune.com
