Average Workers’ Comp Settlement For Permanent Disability

The average workers’ comp settlement for permanent disability is $64,573 and the median is $30,000, which better represents the typical payout for permanent disability benefits. Settlement data is based on 85 workers’ compensation settlements in the United States that include a permanent disability claim (recorded by Thomson Reuters between 2019 and 2024).

Table of Contents

• Settlement Examples
• Settlement Factors
• Additional Info
• Legal Help
• FAQs

Settlement data is as follows:

• Median settlement ($10,000): Represents the typical payout for a workers’ comp claim with permanent disability benefits because it is less subject to being skewed by extremely high or low settlement amounts.
• Average settlement ($64,573): The average settlement is calculated as a sum of all workers’ comp settlements that include a permanent disability claim, which is then divided by the total number of cases in the data set (65 total cases).
• Highest settlement ($330,000): An individual filed a worker’s compensation claim against their employer, alleging that they were injured while loading tanks onto a truck, resulting in a sharp pain in the back and a subsequent permanent disability. The employer disputed the claim of permanent disability. The parties reached a settlement, agreeing that the individual had reached maximum medical improvement, with the average weekly wage at the time of injury being approximately $2,403.85.
• Lowest settlement ($10,000): An individual claimed to have injured their shoulder while assembling fuel and brake bundles for their employer. The individual filed a worker’s compensation claim, alleging that the injury resulted in a permanent disability. The treating physician later placed the individual at maximum medical improvement, assigned a 0% permanent partial impairment rating, and cleared the individual to return to work without restrictions. The individual’s average weekly wage at the time of the injury was approximately $638.14. The employer denied that the injury occurred during the course and scope of employment and disputed any claims of permanent disability related to the shoulder injury.

It’s important to note that settlement data should not be interpreted as a standard payout for permanent disability claims. Case examples and average workers’ comp settlement data is intended for informational use. There are many factors that can affect the value of workers’ comp and disability benefits, and your claim may be higher or lower in value compared to the reported averages.

Permanent Disability Settlement Examples

Settlement examples under $100K

• $15K settlement: An individual filed a worker’s compensation claim, alleging a knee injury while participating in a company-sponsored event at a trampoline park. The individual claimed the injury resulted in a permanent disability, which the employer disputed, also questioning whether the injury was work-related. The parties eventually reached a settlement. The individual’s treating physician later noted that they were doing well, had completed physical therapy, and had returned to work without restrictions, with no permanent partial impairment rating assigned. It was agreed that the individual reached maximum medical improvement, with an average weekly wage at the time of injury of approximately $570.64.
• $40K settlement: An employee filed a worker’s compensation claim, alleging that they were injured while lifting a dock plate manually at work due to a lack of electricity at the facility. The individual experienced immediate pain in the lower back, hips, thighs, calves, feet, and neck, along with numbness and tingling in the upper extremity. The injury was claimed to result in a permanent disability. The treating physician later placed the individual at maximum medical improvement and assigned a 14% permanent partial disability rating to the body as a whole. The individual’s average weekly wage at the time of the injury was $853.71. The employer admitted that the injury occurred on the job but disputed the extent of the disability claimed.
• $66K settlement: A worker sustained a neck injury in while on the job, resulting in treatment by an occupational medicine physician and an orthopedic specialist. The specialist eventually released the individual to full duty with a 6% impairment rating related to spine injuries at C5-C6. Later, while driving a work vehicle, the individual was involved in a severe accident where their vehicle struck a stopped vehicle head-on and was subsequently rear-ended. The individual had to be extricated using the Jaws of Life. During hospitalization, surgery was recommended for a herniated disc, specifically an anterior cervical discectomy and fusion at C3-C4, but the procedure was delayed due to the individual contracting an illness. The employer’s worker’s compensation insurer later assigned the occupational medicine physician as the authorized treating physician, who determined that the neck condition was preexisting and that the individual could not work.
• $75K settlement: An individual filed a worker’s compensation claim, alleging severe injuries from a motor vehicle collision while working as a truck driver. The injuries affected the individual’s face, head, back, left arm, neck, and overall body, leading to a claim of permanent disability. In the settlement, it was agreed that the injuries were permanent and would impact the individual’s ability to seek employment and earn income for the rest of their life. The individual was placed at maximum medical improvement and was assigned an 11% impairment rating.

Settlement examples over $100K

• $110K settlement: An individual filed a worker’s compensation claim against their employer, alleging that they were injured while working at a convenience store during an armed robbery. The individual was shot multiple times, resulting in injuries to both shoulders and post-traumatic stress disorder (PTSD). The individual claimed that these injuries led to permanent disability.
• $125K settlement: An employee sustained multiple injuries after being struck by a falling tree while working for their employer. The injuries included a traumatic brain injury, multiple facial fractures resulting in residual nerve damage and severe pain, a nose fracture, a jaw fracture, and a right shoulder injury. The individual later filed for worker’s compensation benefits, claiming permanent disability, which the employer disputed. The parties reached a settlement acknowledging that the accident caused a complete facial fracture, nasal and septal fractures, right shoulder pain, a concussion, and an eye condition. The individual was placed at maximum medical improvement without an impairment rating and was released to return to work for the right shoulder injury. The settlement noted that the individual’s average weekly wage at the time of injury was approximately $607.52, including fringe benefits, and that the individual had resigned from employment with the employer.
• $250K settlement: An individual sustained a lower back injury while working for their employer and subsequently filed a worker’s compensation claim, alleging that the injury resulted in a permanent disability. The individual reported an average weekly wage of approximately $696 at the time of the injury. A settlement was reached in which the individual received weekly temporary total disability benefits from the date of the accident until reaching maximum medical improvement, with all medical expenses covered. The settlement also noted that the individual suffered from failed low back surgery and chronic pain, as diagnosed by treating physicians. The individual acknowledged being unable to return to gainful employment due to the physical limitations caused by the injury.
• $295K settlement: An individual filed a worker’s compensation claim against their employer, alleging that they injured their lower back while working as a painter. The injury occurred during the process of maneuvering inside a vehicle, resulting in a lumbar spine injury that required surgical intervention at multiple levels. The individual claimed that the injury led to a permanent disability, which the employer disputed. The parties reached a settlement in which the individual acknowledged an average weekly wage of approximately $1,187.30 at the time of injury, received temporary total disability benefits until reaching maximum medical improvement, and had all related medical expenses and compensation benefits paid by the employer. The settlement amount exceeded the physical impairment rating assigned by the individual’s treating physician.

Factors That Affect Permanent Disability Settlement Amounts

1. Extent of Permanent Disability (Disability Rating): The degree of permanent disability is often expressed as a percentage and reflects the extent to which the injury has impaired the individual’s ability to work. A higher disability rating typically results in a larger settlement.

2. Average Weekly Wage (AWW): The individual’s average weekly wage at the time of injury is used to determine the compensation rate. Higher wages typically result in higher settlements.

3. State-Specific Workers’ Compensation Laws: Different states have varying laws regarding the calculation of permanent disability benefits, including caps on benefits, duration of payments, and specific multipliers used in the calculations.

4. Severity of Injury and Need for Ongoing Medical Care: The severity of the injury and whether it necessitates ongoing medical care or future surgeries can significantly increase the settlement amount.

5. Age of the Injured Worker: Younger workers with longer expected work lives might receive higher settlements, as the injury affects a larger portion of their earning potential. Conversely, older workers closer to retirement may receive lower settlements.

6. Pre-existing Conditions: If the injury is exacerbated by a pre-existing condition, the settlement might be reduced, as the employer might only be responsible for the portion of the disability caused by the work-related injury.

7. Ability to Return to Work: Whether the injured individual can return to work, either in the same capacity or a different role, affects the settlement amount. Inability to return to work often results in a higher settlement.

8. Future Earning Capacity: If the injury significantly reduces the individual’s ability to earn income in the future, the settlement may include compensation for lost future earnings.

These variables collectively determine the settlement value in a workers’ compensation case, with specific calculations varying based on the individual circumstances of each case. If you or a loved one has been injured while on the job, you can estimate your potential claim value by using an online workers’ compensation settlement calculator. However, it’s important to consult a workers’ comp attorney to determine if you are eligible to file claim, and get help building a strong case to recover compensation.

Additional Information Regarding Permanent Disability

Permanent disability refers to a lasting impairment that affects an individual’s ability to work, resulting from a work-related injury or illness. Unlike temporary disabilities, which are expected to heal over time, a permanent disability indicates that the injured worker will not fully recover and will continue to have some level of functional limitation or impairment for the rest of their life.

Permanent disability can be either:

• Partial Permanent Disability (PPD): The individual has a lasting impairment but can still work in some capacity, either in the same job with modifications or in a different role. The disability does not completely prevent the individual from earning an income but does reduce their ability to work at full capacity.
• Total Permanent Disability (TPD): The individual is completely unable to return to any form of gainful employment due to the severity of the injury or illness. This type of disability typically results in the highest level of workers’ compensation benefits.

In workers’ compensation cases, a permanent disability rating is often assigned by a medical professional, which quantifies the degree of impairment and plays a key role in determining the amount of compensation the injured worker is entitled to receive.

Get Help With Your Permanent Disability Claim From A Workers’ Comp Attorney

It’s important to understand that workers’ comp case is unique, and how much you may receive from a permanent disability benefits will vary based on many factors. Consulting with a workers’ compensation lawyer can help ensure that you build a strong claim and maximize your settlement.

Getting started with your claim is easy. Just request a free case evaluation online, and a legal team in our network will reach out to you regarding your case. Our network of attorneys includes a team of over 250+ legal professionals throughout the United States with over $1 billion recovered for clients, including those who have suffered a injuries while on the job that led to permanent disability.

⚖️ All of our attorneys work on a contingency fee basis, meaning there are no upfront legal fees or costs — you only pay if you win.

Frequently Asked Questions (FAQs)

How long do I have to file a claim for permanent disability after a work injury?

The time you have to file a claim for permanent disability after a work injury varies by state, typically ranging from 1 to 3 years from the date of the injury or the date you became aware of the disability. It’s crucial to check your state’s specific statute of limitations and file promptly to avoid losing your right to compensation. Consulting with a workers’ compensation attorney can help ensure you meet the deadlines.

Which part of the body has the highest impairment rating for permanent disability?

In workers’ compensation claims, the spine generally receives the highest impairment ratings for permanent disability due to the severe impact spinal injuries can have on mobility, function, and overall quality of life. Spinal cord injuries, particularly those causing paralysis, typically result in the highest ratings because of their significant effects on an individual’s ability to work.