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L&I Settlement Amounts

L&I has the power and authority to settle any workers’ compensation claim. L&I settlements typically fall into three categories:


A lifetime L&I pension is a lifetime annuity payment, paid monthly, and based on the amount of the injured worker’s wage at the time of injury and the amount of his or her dependents. You may be entitled to a pension if you meet the following criteria:

  • You sustained a workplace injury that is permanent and totally disabling
  • You are over the age of 50

Structured Settlement

A structured settlement is a lump sum payment intended to permanently settle a workers’ compensation claim for a serious injury. L&I uses structured settlements in place of pensions to avoid pension payments or when a worker is not eligible for a pension. The amount of the structured settlement varies widely and depends on a number of important factors, such as:

  • The type and severity of the injury
  • The threat of litigation if both sides cannot agree on the amount of the settlement
  • The reputation of the attorney leading the negotiation
  • The likelihood of the claimant prevailing
  • The opportunity for the claimant to pursue a pension if a settlement is not reached

Permanent Partial Disability (PPD)

This is a one-time payment to compensate an injured worker for his or her work injury when the injury isn’t permanently disabling. The Permanent Partial Disability settlement payment is typically based on the type and severity of the injury. There are additional factors that often determine whether L&I will accept a PPD claim and the total amount that L&I is willing to pay, including:

The amount that L&I will agree to pay for a PPD varies widely depending on what it considers to be the correct rating. For example, for a dorsolumbar injury, there is a 15x difference between a category 2 and a category 8 PPD rating. This means that a claimant with a category 8 injury of this type would receive approximately $140,000 more than one with a category 2 rating (based on the 2018-19 L&I PPD Schedule). L&I often undervalues claims by using an independent medical examination report to support a lower category rating. If you disagree with the IME report or L&I decision, contact an L&I attorney.

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