Workers compensation settlement guide for California

Direct answer

For a California workers’ compensation settlement allocation, use Cal. Civ. Code § 1431.2 to separate the settlement amounts into economic damages and non-economic damages:

• Economic damages are treated as joint and several under Cal. Civ. Code § 1431.2(b)(1).
• Non-economic damages are treated as several only under Cal. Civ. Code § 1431.2(b)(2).

In practice, DocketMath’s /tools/damages-allocation workflow helps you map each settlement component to the correct category and then apply the allocation math using your entered responsibility percentages (which should sum to 100%).

What you need to know

California’s § 1431.2 framework turns on (1) what type of loss you’re allocating and (2) how responsibility is allocated among parties.

1) Know the economic vs. non-economic split

Under Cal. Civ. Code § 1431.2:

Economic damages (joint and several) include objectively verifiable monetary losses such as:

• medical expenses
• loss of earnings
• burial costs
• loss of use of property
• costs of repair or replacement
• costs of obtaining substitute domestic services
• loss of employment
• loss of business or employment opportunities

Non-economic damages (several only) include subjective, non-monetary losses such as:

• pain, suffering, and inconvenience
• mental suffering and emotional distress
• loss of society and companionship
• loss of consortium
• injury to reputation
• humiliation

2) Use allocation percentages that sum to 100%

DocketMath’s damages allocation approach assumes you model responsibility using percentages that sum to 100% across the parties you include in the allocation structure. If you change your responsibility inputs, both categories’ allocated amounts change—but the legal treatment difference remains tied to whether an amount is economic or non-economic under § 1431.2.

3) Understand where Li fits in

Li v. Yellow Cab Co., 13 Cal. 3d 804 (1975) is a commonly cited California Supreme Court decision in allocation-related discussions. In a DocketMath workflow, it’s most useful as background context for allocation concepts when you’re translating settlement terms into a numerical model.

Step-by-step

Follow this workflow in DocketMath to build a jurisdiction-aware allocation for California using /tools/damages-allocation.

1) List settlement components and classify each one

Create a line-item list of every number in your settlement breakdown (for example, medical-related amounts vs. “pain and suffering”/emotional distress amounts).

Then classify each item:

• Economic if it is an objectively verifiable monetary loss fitting the § 1431.2(b)(1) list (e.g., medical expenses, lost earnings).
• Non-economic if it is a subjective, non-monetary loss fitting the § 1431.2(b)(2) list (e.g., pain, emotional distress, loss of society).

Key modeling idea: DocketMath works best when each settlement component’s substance is consistent with the economic/non-economic definitions in Cal. Civ. Code § 1431.2.

2) Decide which parties you’re allocating among

In your DocketMath inputs, you must decide the parties included in the responsibility percentage model.

• Include the parties that appear in your settlement/factual allocation structure.
• Don’t “force” percentages without a coherent responsibility model—your percentages should correspond to the allocation concept you’re modeling.

3) Enter totals separately for economic and non-economic

In /tools/damages-allocation:

• Enter your economic damages totals on the economic side.
• Enter your non-economic damages totals on the non-economic side.

This separation is essential because § 1431.2 treats the categories differently.

4) Enter responsibility percentages so they sum to 100%

For each included party:

• Enter the responsibility percentage.
• Confirm the percentages total 100%.

If they don’t, your allocation math will not represent a complete responsibility model.

5) Run the calculator and review the category outputs

Open DocketMath at: /tools/damages-allocation

Then:

• run the allocation,
• review the outputs (especially how economic vs. non-economic portions are allocated across parties),
• confirm the output structure matches the economic/non-economic split you entered.

Key statutes and citations

• Cal. Civ. Code § 1431.2 — sets the economic vs. non-economic allocation framework, including:

  • economic damages as joint and several
  • non-economic damages as several only
    Source: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=CIV&sectionNum=1431.2

• Li v. Yellow Cab Co., 13 Cal. 3d 804 (1975) — often cited in allocation discussions as background for how California courts handle responsibility allocation concepts in related contexts.
  Source: https://scocal.stanford.edu/opinion/li-v-yellow-cab-co-28815

• American Motorcycle Assn. v. Superior Court, 20 Cal. 3d 578 (1978) — may be relevant depending on how the settlement record frames allocation/causation issues in the broader procedural context.
  Source: https://scocal.stanford.edu/opinion/american-motorcycle-assn-v-superior-court-30728

• Cal. Civ. Code § 1431 — related Civil Code allocation framework. (Use only as needed for context.)
  Source: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=CIV&sectionNum=1431.

• Cal. Code Civ. Proc. § 875 — procedural reference that can arise in some civil settlement/allocation discussions. (Use only as needed for context.)
  Source: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=CCP&sectionNum=875.

Common pitfalls

• Lumping everything into one “damages” bucket

  • If you enter a single combined number, you can lose the economic vs. non-economic separation required by § 1431.2.
• Classifying by label instead of substance

  • Settlement paperwork might say “general damages,” but you still need to classify the underlying substance as economic vs. non-economic consistent with § 1431.2(b)(1) and § 1431.2(b)(2).
• Not separating objectively verifiable monetary items from subjective harms

  • For example, treating emotional distress as if it were a medical/earnings-related economic item.
• Percentages that don’t sum to 100%

  • Even with correct totals, a responsibility model that doesn’t sum to 100% can distort allocations in DocketMath.
• Changing inputs without re-checking outputs

  • When you adjust economic/non-economic totals or party percentages, the allocated output changes. Always re-run and re-verify after updates.
• Assuming “allocation logic” is identical across jurisdictions

  • This guide is California-specific and uses § 1431.2 economic/non-economic treatment.

Run the numbers

Use DocketMath (/tools/damages-allocation) to convert your settlement breakdown into a structured allocation consistent with the California economic/non-economic framework.

Before you calculate (quick checklist)

• Every settlement line item is classified as economic or non-economic consistent with Cal. Civ. Code § 1431.2.
• Economic and non-economic amounts are entered on the correct sides in DocketMath.
• Each party’s responsibility percentage is entered and the percentages sum to 100%.
• Your allocation structure includes only the parties reflected in your model.

What changes when you change inputs

• Change economic totals → the allocated amounts tied to the economic category change.
• Change non-economic totals → the allocated amounts tied to the non-economic category change.
• Change party percentages → allocations for both categories shift according to the new responsibility mix.
• In all cases, the category treatment difference remains governed by § 1431.2 (economic vs. non-economic).

After you calculate

• Confirm the output reflects the expected category split.
• Sanity-check that increases in economic or non-economic inputs move the correct parts of the output.

Related reading

• How to calculate Damages Allocation in Philippines — Full how-to guide with jurisdiction-specific rules
• Worked example: Damages Allocation in Philippines — Worked example with real statute citations
• Inputs you need for Damages Allocation in Philippines — Input checklist with sourcing guidance