Commutation
Legal basis: LC §5100
Definition
The conversion of future periodic workers' compensation benefit payments into a present lump sum value. Commutation may be ordered by the WCAB when it serves the interests of justice, such as when an injured worker needs immediate funds for medical treatment, housing, or other necessities.
Related Terms
Frequently Asked Questions
What is a Commutation?
The conversion of future periodic workers' compensation benefit payments into a present lump sum value. Commutation may be ordered by the WCAB when it serves the interests of justice, such as when an injured worker needs immediate funds for medical treatment, housing, or other necessities.
What is the legal basis for Commutation in California workers' compensation?
Commutation is governed by LC §5100 under California workers' compensation law. This statute defines the requirements, procedures, and standards for commutation in the workers' compensation system as of 2026.
How does commutation affect a workers' compensation claim?
Commutation plays an important role in determining the outcome of a workers' compensation claim in California. Understanding this concept helps injured workers, attorneys, and physicians navigate the claims process more effectively.