How Is A Workers’ Compensation Settlement Calculated In Georgia?

The starting point for almost any comp calculation is your average weekly wage (AWW) — generally your gross earnings over the 13 weeks before the injury. The AWW drives the size of nearly every benefit in your claim.

Your weekly wage-loss check, called temporary total disability (TTD), is paid at two-thirds of your AWW, up to a state maximum. The higher your wages, the more your lost-time benefits are worth, which in turn raises the settlement value.

If you returned to work at reduced pay, you may receive temporary partial disability (TPD) instead, which is based on the difference between your old and new earnings.

A settlement has to account for the income benefits you have not yet been paid. The longer you are likely to remain out of work or limited, the more remaining TTD or TPD exposure the insurer is buying out.

Once you reach maximum medical improvement (MMI) — the point where your condition has stabilized — a doctor assigns a permanent partial disability (PPD) rating. That rating translates into a set number of weeks of benefits based on the body part affected.

A higher PPD rating means more weeks of guaranteed benefits, which directly increases what your claim is worth at settlement.

In Georgia, an accepted claim generally keeps your authorized medical treatment open. When you settle and close the claim, you are usually giving up that future medical coverage — so its projected cost becomes a major part of the settlement.

The value of future medical depends on your diagnosis and prognosis: ongoing therapy, future surgeries, injections, prescriptions, or assistive devices all add up. Serious or permanent injuries that require lifelong care can push settlement values significantly higher.

Insurers want to close future medical because it removes their long-term risk, which is exactly why this piece deserves careful valuation before you agree to anything.

Settlement is ultimately about risk. If liability is clear and your benefits are flowing, the insurer has little leverage to discount the value. If the claim is disputed — over whether the injury is work-related, the extent of disability, or a pre-existing condition — both sides factor that uncertainty into the number.

Most Georgia comp settlements are closed (also called a ‘full and final’ settlement), meaning you give up future income and medical benefits in exchange for the lump sum. That trade-off is permanent, so it should be entered into carefully.

Finally, no settlement is binding until the State Board of Workers’ Compensation approves it. For a fuller picture of how the system fits together, see how workers’ compensation works.