Worker's Compensation Insurance

6 Temporary Disability When a worker is unable to return to work within three days of his/her injury or illness, the worker is entitled to temporary disability benefits to help partially replace wages lost as a result of the injury or illness. A physician must verify that an injured employee cannot work because of the on-the-job injury or illness before temporary disability benefits are payable. Payments are not made for the first three days an employee is off the job unless he/she is hospitalized overnight or cannot work for more than 14 days. The benefits are designed to replace two-thirds of lost wages, up to the current maximum prescribed by law. Benefits are generally payable every two weeks until the employee is able to return to work or until the employee’s condition becomes permanent and stationary. There are statutory limits on the period during which temporary disability benefits are paid. These limits depend on the date of the injury and the type of injury. Permanent Disability If a work-related injury or illness results in permanent impairment to an employee, the employee may become eligible for permanent disability benefits. The amount (percentage) the employee receives is based on a formula that considers the extent of the physical injury or disfigurement, the age of the employee when injured, the employee’s occupation, and the date of injury. Other factors that are considered when calculating permanent disability include: apportionment (how much the disability is caused by work, compared to how much it is caused by other factors) and an adjustment factor that takes into account an injured worker’s loss of future earning capacity. Current workers’ compensation law sets the benefit amount and the minimum and maximum amounts payable, and the benefits are paid every two weeks until the maximum amount is reached or a lump sum settlement is made.