Short answer
Workers' compensation is a state-run, no-fault insurance system. Your employer buys the coverage; you pay nothing. If you are injured or become ill because of your job, you report it to your employer, a claim is filed with the insurance carrier, and the carrier pays all reasonable medical treatment plus wage-loss checks of about two thirds of your average weekly wage, up to a state maximum. If you have a permanent impairment, you receive additional disability payments or a settlement. In exchange, you generally cannot sue your employer for the injury.
The workers' compensation bargain
Workers' comp is a trade. Employees get guaranteed benefits without proving anyone was at fault, even if the accident was their own mistake. Employers get protection from lawsuits under the exclusive remedy rule. That is why workers' comp pays medical care and lost wages but not pain and suffering.
Every state runs its own system with its own benefit rates, deadlines, and doctor rules. Federal employees are covered separately under FECA, administered by the Department of Labor's OWCP.
Related: 2026 benefit rates by state · Federal (OWCP) benefits
How a workers' comp claim works, step by step
- Get medical care. In an emergency go to the nearest ER. Otherwise ask your employer which doctor or network to use, since many states let the employer direct initial care.
- Report the injury to your employer in writing as soon as possible. State notice deadlines range from a few days to 90 days, and late notice is the most common reason claims are denied.
- Your employer files a first report of injury with its insurance carrier and, in most states, the state workers' comp agency.
- The carrier investigates and accepts or denies the claim, usually within a few weeks.
- Once accepted, the carrier pays your medical bills directly and starts weekly wage checks after the state waiting period (often 3 to 7 days).
- You treat until you reach Maximum Medical Improvement (MMI), the point where your condition will not improve further.
- A doctor assigns a permanent impairment rating, which determines permanent disability benefits.
- The claim closes by award or by settlement, which a state judge or board often must approve.
Related: Settlement timeline · Impairment rating payout
What workers' comp pays
| Benefit | What it is | Typical amount |
|---|---|---|
| Medical | Doctor visits, surgery, therapy, prescriptions, mileage | 100% of approved care, no copay |
| TTD | Temporary total disability while you cannot work | About 66.67% of average weekly wage, up to a state cap |
| TPD | Temporary partial disability for reduced hours or pay | About two thirds of the wage difference |
| PPD | Permanent partial disability after MMI | Weeks for the body part x impairment % x weekly rate |
| PTD | Permanent total disability | Ongoing weekly benefit, often for life |
| Death | Benefits to dependents after a fatal injury | Weekly benefit plus burial allowance |
Related: TTD calculator · TPD calculator · PPD calculator
How weekly checks are calculated
Your average weekly wage (AWW) is usually your gross earnings over the 52 weeks or 13 weeks before the injury, including overtime and often a second job. Most states pay 66.67 percent of the AWW, subject to a state maximum and minimum that resets each year.
Example: an AWW of $1,200 x 66.67% = $800 per week, as long as the state cap is higher. A worker earning $2,400 a week in a state with a $1,200 cap receives $1,200, not $1,600.
How workers' comp settlements work
Settlement value is driven by your impairment rating, your weekly rate, the number of weeks your state assigns to the injured body part, and the expected cost of future medical care. Most serious offers come after MMI. A full and final settlement usually closes future medical rights, so it should be priced carefully.
Related: Settlement calculator · Settlement chart by body part
Common reasons claims go wrong
- Reporting the injury late or only verbally.
- Gaps in treatment or missed appointments.
- An average weekly wage that leaves out overtime or a second job.
- Accepting a settlement before MMI, when future medical has not been priced.
- Not knowing a third party (driver, equipment maker, property owner) may also be liable.
Questions about your benefits?
A licensed workers’ compensation lawyer can explain your rights, review disputed benefits, and help you assess a settlement offer. Ask about consultation costs, attorney fees, and expenses before hiring anyone. No result is guaranteed.
Frequently asked questions
How does workers' comp work?+
Your employer carries workers' compensation insurance. If you are hurt because of your job, you report it, the carrier accepts the claim, and it pays your medical care plus about two thirds of your lost wages up to a state cap. If you have permanent impairment after treatment ends, you receive permanent disability benefits or a settlement. In return you generally cannot sue your employer.
How much does workers' comp pay?+
Most states pay 66.67 percent of your average weekly wage for temporary total disability, up to a state maximum that changes every year. Medical treatment is paid in full. Permanent disability is calculated from your impairment rating and the state's schedule of weeks.
Do I have to prove my employer was at fault?+
No. Workers' comp is no-fault. You only need to show the injury arose out of and in the course of your employment. Even an accident caused by your own mistake is usually covered, with narrow exceptions such as intoxication or intentional self-injury.
How long can I stay on workers' comp?+
Temporary benefits last until you return to work or reach MMI, subject to state caps that commonly range from 104 to 500 weeks. Permanent total disability can last for life in many states.
Can I be fired while on workers' comp?+
Most states prohibit firing you in retaliation for filing a claim, but you can still be let go for unrelated, legitimate reasons. If you are terminated, your comp benefits generally continue.
Can I choose my own doctor?+
It depends on the state. Some let you choose from the start, others let the employer or carrier direct care for a set period or require a network doctor. Check your state's page for its rule.
Keep learning
Related workers' comp guides and calculators.
Medical care, wage loss, disability, and what is excluded.
Federal and state tax rules for checks and settlements.
Weekly benefit, PPD, and settlement in one place.
What your weekly temporary disability check should be.
Scheduled weeks and permanent impairment awards.
Light-duty benefit when you earn less while healing.
Federal employee FECA award by body part.
Lump-sum value of your full claim.
Turn a 5%, 10%, or 20% rating into dollars.
Max and min weekly rates for all 50 states.
Typical settlement ranges by injury and state.
Average settlement for fusion, rotator cuff, knee replacement, and more.
Why comp does not pay it, and when a third-party claim does.
When carriers typically make an offer.
What coverage costs by class code and payroll.
Guides, state updates, and claim strategy.
These calculations are estimates based on your inputs and general workers' compensation formulas. Actual benefits depend on state law, your specific injury, employer insurance carrier, and other factors. This is not legal advice. Consult a licensed workers' compensation attorney for guidance specific to your claim.