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By Eman Yazdchi, Esq. · Certified Specialist in Workers' Compensation Law, State Bar of California Board of Legal Specialization
In California, Labor Code section 4061 requires the employer or insurer to commence permanent disability advance payments when temporary disability ends and the California worker has reached permanent and stationary status. Section 4061 California advances bridge the gap between the end of §4653 TD and the final §4658 PD payout.
California Labor Code section 4061 requires the California employer or workers' compensation insurer to commence permanent disability advance payments when temporary disability ends and the California injured worker has reached permanent and stationary status (P&S). Under section 4061, the California advance payments are calculated based on the treating physician's estimate of likely PD impairment and the corresponding California Labor Code §4660 California rating; the California insurer makes the advances at the statutory PD weekly rate without waiting for the final California Labor Code §4660 California rating to be assigned. The section 4061 California rule prevents the California injured worker from losing all wage-replacement income during the gap between TD termination and final PD payout under California Labor Code §4658 California.
Under California Labor Code section 4061, the California PD advance payments start when the California injured worker is declared permanent and stationary by the treating physician (or a California Labor Code §4062.1 or California Labor Code §4062.2 QME) and TD payments end under the California Labor Code §4653 California TD rate framework. The section 4061 California rule means the California worker transitions immediately from TD payments to PD advances — no gap in California wage-replacement income. The section 4061 California start date is keyed to the P&S date in the medical record, not to the date the insurer completes a final California Labor Code §4660 California rating; the California insurer must estimate the PD rating and start paying.
Under California Labor Code section 4061, the California PD advance amounts are calculated based on the treating physician's whole-person impairment estimate, adjusted by California Labor Code §4660 California rating mechanics (or section 4660.1 California for 2013-onward injuries). The section 4061 California advance is paid at the statutory PD weekly rate for the year of injury. The California insurer makes a good-faith estimate of the PD rating and starts paying advances at the corresponding weekly amount; once the final California Labor Code §4660 California rating is determined, the insurer reconciles the advances against the final PD obligation.
Under California Labor Code section 4061, when the California advance payments paid out exceed the final California Labor Code §4660 California PD rating once that rating is established (because the insurer over-estimated the impairment), the California insurer is generally not entitled to recoup the excess from the California worker — the California advances are not refundable when they exceed the final award. The section 4061 California rule places the over-estimate risk on the California insurer, not on the California worker. When the section 4061 California advances were lower than the final PD rating, the California insurer pays the difference under California Labor Code §4658 California as a true-up.
Under California Labor Code section 4061 (PD advances), California Labor Code §4660 (rating), California Labor Code §4658 (PD payment schedule), and California Labor Code §4658.7 (SJDB), the California post-TD framework operates as a sequence. Section 4061 California advances bridge the gap between California Labor Code §4653 California TD termination and California Labor Code §4660 California final rating; California Labor Code §4660 California then assigns the final PD percentage; California Labor Code §4658 California pays out the final PD weeks; and California Labor Code §4658.7 California provides the $6,000 SJDB voucher for workers who do not return to modified or alternative work. The section 4061 California advances are the front-end of this post-TD sequence.
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Tap to call →Last reviewed by Eman Yazdchi, Esq., May 2026.
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