Does Workers’ Comp Cover Lost Wages in California?

Losing a paycheck is often the most immediate hardship after a work injury. Medical bills go to the insurance company, but rent, car payments and groceries do not stop. California’s temporary disability benefit exists to bridge that gap. It does not replace your full wage, and it comes with rules that insurers apply strictly.

How Much Workers’ Comp Pays for Lost Wages

Temporary total disability pays two-thirds of your average weekly wage (AWW), subject to a statewide minimum and maximum that the Division of Workers’ Compensation adjusts every January. If you can work reduced hours or light duty for less pay, temporary partial disability pays two-thirds of the difference between your pre-injury wage and what you are earning now.

How average weekly wage is calculated

Your AWW should reflect your real earning capacity, including regular overtime, shift differentials and, in many cases, earnings from a second job. Insurers sometimes calculate it from base pay alone. A low AWW reduces every temporary disability check and every permanent disability payment that follows, so it is worth checking against your pay stubs.

When Lost Wage Payments Start

• The first payment is due within 14 days after your employer knew about the injury and your disability.
• The first three days off work are not paid, unless you are disabled more than 14 days or are hospitalized as an inpatient, in which case those days are paid.
• Payments continue every two weeks.
• A payment that is late without good reason carries an automatic 10% increase.

How Long Temporary Disability Lasts

For most injuries, temporary disability is limited to 104 compensable weeks within five years of the date of injury. Certain serious conditions, including severe burns, amputations, chronic lung disease, and some eye injuries, allow up to 240 weeks. Payments also stop earlier when you return to work, when your doctor finds you permanent and stationary (maximum medical improvement), or when your employer offers work within your restrictions.

What Happens After Temporary Disability Ends

If you are left with a lasting impairment, permanent disability payments begin, usually within 14 days after temporary disability ends. If your employer cannot offer you work within your permanent restrictions, you may also receive a $6,000 Supplemental Job Displacement voucher and apply for the $5,000 Return-to-Work Supplement. See workers’ compensation benefits in California.

If Your Claim Is Denied or Delayed

While the insurer investigates, or if it denies the claim, you may apply for State Disability Insurance (SDI) through the Employment Development Department. You cannot collect SDI and temporary disability for the same period, and EDD may claim reimbursement if the workers’ comp claim is later accepted. An attorney can ask the Workers’ Compensation Appeals Board for an expedited hearing when temporary disability is wrongly denied or cut off.

Related Guides

• When does workers’ comp start paying?
• How are workers’ comp claims paid?
• Temporary disability benefits in San Diego
• Who pays for workers’ compensation?

Talk to a Certified Specialist at No Cost

Dennis A. Dascanio is certified by the State Bar of California Board of Legal Specialization as a specialist in workers’ compensation law and has represented injured workers since 1987. Consultations are free, and attorney fees are approved by the judge and paid only from benefits recovered. Call the office nearest you: Santa Ana 714-550-7002, Ontario 909-460-6900, or San Diego 619-338-8399. Se habla español.

This page provides general information, not legal advice for your situation. Every claim depends on its own facts.