How to Calculate a Virginia Workers’ Compensation Settlement

A work injury can leave you facing medical appointments, lost income, and uncertainty about whether you will be able to return to your former job. Virginia workers’ compensation may provide medical and wage-related benefits without requiring an eligible employee to prove that the employer negligently caused the accident.  If you’ve been injured and you’re wondering how to calculate a Virginia workers’ compensation settlement, we can help.

Calculating a workers’ compensation settlement is not as simple as multiplying your weekly check by a set number of weeks. The value may depend on your average weekly wage, compensation rate, disability status, medical needs, ability to return to work, and the rights included in a proposed settlement.

Before accepting a settlement, an injured worker should understand whether the agreement will close future wage benefits, medical benefits, or both. A full and final settlement can affect the worker’s rights long after the Virginia Workers’ Compensation Commission approves the agreement.

Errors in calculating an injured worker’s average weekly wage, or AWW, can affect wage-loss benefits and the evaluation of a possible settlement. Pay records may need to be reviewed carefully to determine whether overtime, tips, bonuses, commissions, or other qualifying earnings were included.

We represent injured workers on a contingency-fee basis, meaning you will never owe a fee unless we are successful in recovering compensation on your behalf.

What Types of Payment and Expenses Does Virginia Workers’ Compensation Cover?

Virginia workers’ compensation is generally a no-fault system. An eligible employee does not ordinarily have to prove that the employer was negligent, but the employee must still establish that the injury or occupational disease meets Virginia’s legal requirements.

Depending on the claim, available benefits may include:

• Authorized and medically necessary doctor visits
• Surgery and hospital care
• Physical rehabilitation
• Prescription medication
• Mileage reimbursement for authorized medical travel
• Temporary total disability benefits
• Temporary partial disability benefits
• Permanent partial disability benefits
• Permanent total disability benefits
• Death benefits for qualifying dependents

Medical benefits and disability payments are different parts of a workers’ compensation claim. Medical benefits may cover reasonable, necessary, and authorized treatment related to the work injury. Disability benefits may replace part of the wages lost when the injury prevents an employee from working or limits what the employee can earn.

What Deadlines Apply to a Virginia Workers’ Compensation Claim?

An injured employee generally must give the employer written notice of a workplace accident within 30 days. The 30-day period generally begins on the date of the accident or, in some circumstances, when the employee receives a diagnosis establishing that the injury is work-related.

A failure to provide notice within 30 days does not always end the claim. Virginia law recognizes circumstances in which late notice may be excused, including when the employer or its agent already knew about the accident, the employee had a reasonable excuse, or the employer was not prejudiced by the delay.

Notice to the employer is separate from filing a claim with the Virginia Workers’ Compensation Commission. For an accidental injury, the employee generally must file a claim with the Commission within two years after the accident.

Certain conduct may affect the filing period. For example, Virginia law contains a tolling provision that may apply when the employer had notice and continued paying compensation, wages during incapacity, or work-injury medical expenses for more than six months after the accident. Occupational disease claims follow different notice and filing rules.

These deadlines concern preserving a workers’ compensation claim, not merely negotiating a settlement. An employee should not assume that reporting the injury to a supervisor, receiving medical treatment, or receiving voluntary payments automatically means that a claim has been filed with the Commission.

How Is Virginia Workers’ Compensation Calculated?

Virginia wage-loss benefits are generally based on the employee’s pre-injury average weekly wage, commonly called the AWW. The average weekly wage is used to determine the employee’s weekly compensation rate.

For example, if an individual was employed for a full year prior to an injury and earned $60,000, the employee would divide $60,000 by 52 weeks, resulting in a weekly average wage of $1,153.85.

Temporary total disability benefits are generally equal to two-thirds of the applicable average weekly wage, subject to Virginia’s minimum and maximum compensation rates. In this example, two-thirds of $1,153.85 is approximately $769.23 per week.

What Earnings May Be Included in the Average Weekly Wage?

The Virginia Workers’ Compensation Commission’s Wage Chart, Form 7A, generally uses gross earnings from the applicable 52 weeks immediately before the accident. Gross earnings may include regular wages, overtime, tips, bonuses, commissions, and qualifying perquisites.

The correct calculation is not always total annual earnings divided by 52. If the employee missed more than seven consecutive calendar days during the applicable period, worked for the employer for less than 52 weeks, or had earnings that would make the standard calculation unfair, Virginia law provides alternative methods.

Errors in calculating the average weekly wage can affect past wage-loss payments, the weekly compensation rate, and the evaluation of future benefits. Pay records should therefore be reviewed carefully before a settlement is evaluated.

The average weekly wage is important, but it does not by itself determine a final settlement amount. It is one of several figures used to estimate the potential value of future disability benefits.

How Do You Figure a Workers’ Comp Settlement?

To figure a workers’ comp settlement, the parties usually review the benefits that may remain payable and the risks each side faces if the claim stays open. There is no single Virginia workers’ compensation settlement formula that applies to every case.

A settlement evaluation may include:

• The injured worker’s correct average weekly wage
• The weekly compensation rate
• Benefits already paid
• The type and expected duration of disability
• Permanent impairment ratings, when applicable
• Whether the employee has returned to work
• Current work restrictions
• The likelihood of future wage loss
• Expected medical care and treatment costs
• Whether the insurer disputes any part of the claim
• The possibility that benefits could increase, decrease, or end
• Whether the settlement closes wage benefits, medical benefits, or both
• Any required Medicare-related review or planning

A basic estimate sometimes begins by multiplying a possible weekly benefit by the number of weeks the benefit may remain payable. That result is only a starting point. It does not account for disputed issues, future medical expenses, prior payments, return-to-work prospects, statutory benefit limits, or the final terms of the release.

Example of a Basic Workers’ Comp Calculation

Assume a worker has an average weekly wage of $900. Two-thirds of that amount is $600, so the worker’s basic temporary total disability rate may be $600 per week, subject to the applicable legal limits.

If the parties are evaluating 40 weeks of possible future wage benefits, the starting calculation would be:

$600 × 40 weeks = $24,000

That does not mean the claim will settle for $24,000. Future medical treatment, disputed issues, return-to-work prospects, permanent impairment, prior payments, and the scope of the release may raise or lower the amount under discussion.

What Factors Affect a Virginia Workers’ Comp Settlement?

Two workers with similar injuries may receive very different settlement offers because settlement value is based on more than the medical diagnosis. Important factors may include the following.

Average Weekly Wage and Compensation Rate

A higher average weekly wage generally produces a higher weekly compensation rate, up to the maximum rate that applies to the claim. An incorrect wage calculation can affect both benefits already paid and the evaluation of possible future payments.

Ability to Return to Work

A worker who returns to the same job at the same pay may have a different benefit position from a worker who remains completely unable to work. Temporary partial disability benefits may be relevant when an employee can return to work but earns less because of injury-related restrictions.

Virginia temporary partial disability benefits are generally calculated as two-thirds of the difference between the worker’s pre-injury average weekly wage and the wages the worker is able to earn after the injury, subject to statutory limits.

Medical Condition and Future Treatment

The parties may consider whether the worker is still treating, has reached maximum medical improvement, needs surgery, requires medication, or is expected to need long-term care. Maximum medical improvement generally means the condition has stabilized enough for a doctor to evaluate lasting impairment. It does not always mean the worker has fully recovered.

Permanent Impairment

Certain permanent injuries may qualify for scheduled permanent partial disability benefits. The calculation can depend on the body part involved, the impairment percentage assigned by a physician, the statutory number of weeks for that body part, and the compensation rate.

Disputed Issues

An insurer may dispute whether the accident is covered, whether treatment is related to the injury, whether the employee remains disabled, or whether the wage calculation is correct. A settlement may reflect both the strength of the available evidence and the risks of continued litigation.

Future Medical Rights

A proposed settlement may leave medical benefits open or close them in exchange for an agreed payment. Closing future medical rights can have lasting consequences because the employee may become responsible for treatment related to the work injury after the settlement.

How Long Are Workers’ Compensation Wages Payable?

The amount and duration of benefits will depend on the type of injury suffered and whether a worker is able to return to work in any capacity.

Temporary total disability benefits may be payable while a covered injury prevents an employee from working. Temporary partial disability benefits may be payable when the employee returns to work but earns less because of injury-related restrictions.

Permanent partial disability benefits may be available for certain lasting losses or impairments listed under Virginia law. Permanent total disability benefits may be available in a narrower group of severe cases that meet statutory requirements.

Virginia generally limits compensation to 500 weeks, but the law provides exceptions. Qualifying permanent and total incapacity can support lifetime weekly payments, and separate rules apply to certain pneumoconiosis claims. Medical benefits are not subject to the same general 500-week limit.

Permanent partial disability benefits for scheduled losses are payable for the number of weeks provided by statute, adjusted by the applicable impairment percentage. A worker should not assume that a weekly payment will continue for a particular period without reviewing the Commission’s award, the type of benefit, and the medical and employment evidence.

What Are Virginia’s Minimum and Maximum Weekly Compensation Rates?

Virginia sets minimum and maximum weekly compensation rates, and the amounts change over time. The rate applicable to a claim generally depends on the date of injury and the type of benefit.

Effective July 1, 2026, the Virginia Workers’ Compensation Commission published a minimum weekly compensation rate of $376.75 and a maximum weekly compensation rate of $1,507.01.

The minimum rate does not necessarily increase a worker’s payment above the employee’s pre-injury average weekly wage. Workers and reviewers should consult the Commission’s rate chart for the date of injury rather than relying on the current rate for an older claim.

Can Future Medical Care Affect a Workers’ Comp Settlement?

Yes. Expected medical care may be a significant part of a Virginia workers’ compensation settlement, especially if the agreement closes future medical benefits. The parties may review medical records, physician recommendations, prescription costs, possible surgery, therapy, diagnostic testing, and other anticipated care.

An injured worker should understand whether the settlement:

• Leaves authorized medical benefits open
• Closes future medical benefits
• Includes money intended for future treatment
• Requires the worker to handle unpaid medical bills
• Addresses Medicare’s interests, when applicable

A settlement or compromise agreement must be submitted to the Virginia Workers’ Compensation Commission for approval. Once the Commission approves a full and final settlement, the worker generally cannot reopen the claim merely because treatment becomes more expensive than expected.

Should You Settle a Virginia Workers’ Compensation Claim?

A settlement may offer certainty and allow the worker to receive an agreed amount instead of continuing with periodic benefits and an open claim. It may also require the worker to release valuable rights. Whether settlement makes sense depends on the worker’s medical condition, employment plans, financial needs, benefit status, and tolerance for risk.

Questions to consider include:

• Has your medical condition stabilized?
• Do your doctors expect more treatment or surgery?
• Can you return to your former job?
• Are your current benefits protected by an award?
• What benefits will end under the agreement?
• Who will pay for future medical treatment?
• Are there disputed issues that could affect continued benefits?
• Will the settlement affect Medicare, Social Security Disability, or other benefits?

A settlement should be evaluated as a complete agreement, not only as a lump-sum number.

How Can a Virginia Workers’ Compensation Settlement Attorney Help With My Workers’ Comp Claim?

A Virginia workers’ compensation attorney can review the wage calculation, medical evidence, payment history, Commission awards, work restrictions, and proposed settlement documents. This review may identify errors or terms that affect the benefits the worker will release.

When Mark Hurt Law Firm represents an injured worker, we can communicate with the employer or insurer, address disputed claim issues, and explain whether a proposed agreement closes wage benefits, medical benefits, or both. We can also help the worker understand the compensation and legal options available under Virginia law.

Frequently Asked Questions

1. How to Figure Workers’ Comp Settlement?

To figure a workers’ comp settlement, start with the correct average weekly wage and weekly compensation rate. Then consider possible future wage benefits, permanent impairment, medical expenses, work restrictions, and any disputed issues. Because Virginia does not use one settlement formula for every claim, the final amount depends on the specific facts and the rights being released.

2. How Do They Calculate Workers’ Comp Settlement?

Insurers and attorneys may calculate a workers comp settlement by estimating the value of future benefits and adjusting for the strengths, risks, and unresolved issues in the claim. They may review wage records, disability payments, impairment ratings, future medical treatment, ability to return to work, and whether the agreement closes medical benefits. The Virginia Workers’ Compensation Commission must approve the settlement.

3. Is a Workers’ Comp Settlement Based Only on Lost Wages?

No. Lost-wage benefits are important, but a settlement may also account for permanent impairment and future medical care. The value depends on what benefits are included and which rights the worker agrees to release.

4. Does Virginia Use a Standard Workers’ Compensation Settlement Calculator?

The Virginia Workers’ Compensation Commission provides calculators and wage-chart resources for certain benefit calculations. However, a calculator cannot determine the full value of a settlement because it cannot evaluate medical needs, disputed evidence, work capacity, or the terms of a release.

5. Are Virginia Workers’ Compensation Settlements Taxable?

Workers’ compensation benefits are generally treated differently from ordinary wages for federal tax purposes, but tax issues can depend on the payment and the worker’s circumstances. An injured worker should consult a qualified tax professional about how a settlement may affect them.

6. How Long Does It Take to Receive a Workers’ Comp Settlement?

The timing depends on negotiations, preparation of the settlement documents, required supporting information, and approval by the Virginia Workers’ Compensation Commission. Delays may occur when the parties need to resolve medical bills, Medicare issues, or disputed settlement terms.

7. Can I Settle My Claim Before I Reach Maximum Medical Improvement?

A claim may sometimes settle before maximum medical improvement, but doing so can make future medical costs and lasting impairment harder to estimate. Before accepting an offer, the worker should understand the treatment doctors expect and which medical rights the settlement will close.

Speak With a Virginia Workers’ Compensation Lawyer About a Settlement

A workers’ compensation settlement can affect your wage benefits, medical care, and legal rights long after the agreement is approved. Before accepting an offer, make sure you understand how the amount was calculated and what the settlement requires you to give up.

Contact Mark Hurt Law Firm to schedule a free consultation about a Virginia workers’ compensation claim. We can review your situation, explain the applicable process, and help you evaluate a proposed settlement. Attorney fees in Virginia workers’ compensation matters are subject to approval by the Virginia Workers’ Compensation Commission.