2020 Analysis of Workers' Compensation Laws - 51

PART 2-BENEFITS PROVIDED
Because workers' compensation imposes an absolute (but
limited) liability on the employer for employee disabilities
caused by employment, the benefits payable to an injured
employee attempt to cover most of the worker's economic
loss. This loss includes both loss of earnings and extra
expenses associated with the injury.

computing weekly benefit payments, a formula-expressed
as a percentage of wages-is used. In most states, limitations
are placed on maximum and minimum benefits payable
weekly; some states also limit the total number of weeks and
the total dollar amount of benefit eligibility. Where there
is permanent total disability, most states provide payments
extending through the employee's lifetime.

Specifically, the benefits provided are as follows:
* Cash benefits, which include impairment benefits and
disability benefits. The former are paid for certain
specific physical impairments while the latter are
available whenever there is an impairment and a wage
loss.
* Medical benefits, which are usually provided without
dollar or time limits. In the case of most workplace
injuries, only medical benefits are provided since
substantial impairment or wage loss is not involved.
* Rehabilitation benefits, which include both medical
rehabilitation and vocational rehabilitation for those
cases involving severe disabilities.

For either temporary total or permanent total disability, the
wage-replacement percentage in each jurisdiction is the same.
However, in permanent total disability cases, the time limits
tend to be longer and the total dollar amounts higher than
in cases of temporary total disability. Some states provide
additional amounts and other benefits for dependents.
Allowances for dependents are charted as a range in the
"Maximum Weekly Payment" and "Notations" columns.
* Partial Disability-Most awards and the preponderance of
dollars paid out as income benefits are for temporary total
and permanent partial disability.

* Temporary total (TT)

As partial disabilities involve current earnings or wageearning ability, many state weekly benefit payments
for temporary or permanent partial disabilities of the
nonscheduled type are based on a wage-loss replacement
percentage. The percentage applies to the difference between
wages earned before and after the injury. In some states,
nonscheduled permanent partial disabilities are compensated
as a percentage of the total disability cases.

* Permanent total (PT)

Income Benefits for Scheduled Injuries (Chart VII)

Cash Benefits-In considering workers' compensation
income or cash benefits-which replace employee loss of
income or earning capacity resulting from occupational
injury or disease-four classifications of disability are used:

* Temporary partial (TP)
* Permanent partial (PP)
Permanent partial is divided into nonscheduled and
scheduled disabilities.
Most cases involve temporary total disability. That is, the
employee-although totally disabled during the period when
benefits are payable-is expected to recover and return to
employment. Permanent total disability generally indicates
that the employee is regarded as totally and permanently
unable to perform gainful employment.

Income Benefits for Total Disability (Chart VI)
Income or cash benefits payable under either temporary total
or permanent total disability are shown in Chart VI. For

Chart VII indicates maximum amounts payable in cases of
scheduled injuries. Listed by law, these injuries involve loss,
or loss of use, of specific body members, where wage loss
based on the nature of impairment is presumed. In most
jurisdictions, the actual amount payable is a specified number
of weeks of benefits (based on the body member involved)
multiplied by the weekly benefit amount (based on earnings
at the time of injury).
The chart also indicates whether the scheduled award is in
addition to any payment otherwise payable to the employee
while he or she may be temporarily totally disabled (healing
period). Some states limit the amount payable for such
periods of temporary total disability.
The Canadian statutes do not typically provide specific
injuries; cases are decided individually using medical
impairment ratings as guidelines.

2020 Analysis of Workers' Compensation Laws | 51

2020 Analysis of Workers' Compensation Laws

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