How are Workers Compensation Settlements Calculated?

In Oklahoma, the final amount of a workers compensation settlement is influenced by several key factors and statutory calculations. The primary determinants include the severity of the injury, the cost of past and future medical care, lost wages, and the nature of the disability.

The calculation generally involves these core elements:

• Impairment Rating: After reaching maximum medical improvement, a physician assigns a percentage rating of permanent loss based on the AMA Guides. This percentage is multiplied by a dollar amount established by the Oklahoma Workers Compensation Commission.
• Wage History: Lost wages are calculated based on your average weekly wage (AWW). Temporary Total Disability benefits, for instance, are paid at two-thirds of the AWW, subject to state maximums.
• Scheduled Member Injuries: For specific body parts like an arm or leg, the state uses a fixed schedule that assigns a specific number of weeks of compensation, which does not require an impairment rating.
• Type of Disability: The classification of the disability as temporary or permanent dictates the benefit structure, such as Permanent Total Disability, which pays 70% of the AWW for life.

All settlements must be reviewed and approved by the Oklahoma Workers Compensation Commission to ensure they are fair and compliant with state law. If a lump-sum payment is proposed, the Commission further discounts the total value based on federal interest rates and assesses your ability to manage the funds.