Labor Code section 5100

At the time of making its award, or at any time thereafter, the appeals board, on its own motion either upon notice, or upon application of either party with due notice to the other, may commute the compensation payable under this division to a lump sum and order it to be paid forthwith or at some future time if any of the following conditions appear:

(a)

That such commutation is necessary for the protection of the person entitled thereto, or for the best interest of the applicant. In determining what is in the best interest of the applicant, the appeals board shall consider the general financial condition of the applicant, including but not limited to, the applicant’s ability to live without periodic indemnity payments and to discharge debts incurred prior to the date of injury.

(b)

That commutation will avoid inequity and will not cause undue expense or hardship to the applicant.

(c)

That the employer has sold or otherwise disposed of the greater part of his assets or is about to do so.

(d)

That the employer is not a resident of this state.

Source: Section 5100, https://leginfo.­legislature.­ca.­gov/faces/codes_displaySection.­xhtml?lawCode=LAB§ionNum=5100.­ (accessed May 26, 2025).

Last Updated

May 12, 2025

§ 5100’s source at ca​.gov