What is an 'LCM rate' in relation to permanent disability?

The 'LCM rate,' which stands for "Life Change Measurement," is specifically associated with determining the level of compensation for permanent disability within the California workers' compensation system. When an employee suffers a permanent disability following a work-related injury, the LCM rate helps assess how that disability impacts the individual's earning capacity and overall life circumstances. It is used as a guideline to evaluate how much compensation the injured worker is entitled to receive based on the severity of the disability.

This distinction is essential, as it differentiates permanent disability compensation from other forms of compensation, such as lost wages or medical treatment reimbursement. The LCM rate focuses specifically on the ongoing impact of the permanent disability and is critical in ensuring that injured workers receive fair compensation for their long-term challenges.