Workers Comp Basics: The Four Types of Disability Benefits

 

In determining the extent of a worker’s injury, doctors evaluate the degree of disability or impairment. The injury may be permanent or temporary.

When an employee is injured and cannot work, disability benefits replace a portion of the employee’s lost wages. They are usually calculated based on the worker’s average weekly wage before the injury. There is usually a waiting period before payments begin, and there are usually minimum and maximum payment thresholds. Benefits may also vary widely by state.

In determining the extent of a worker’s injury, doctors evaluate the degree of disability or impairment. (Disabilities refer to the limits on a worker’s ability to complete work-related tasks. Impairments refer to how the body functions after an injury or illness and can be physical or mental.) The injury may be permanent or temporary:

• Permanent disability or impairment, which means the employee has reached maximum medical improvement (MMI) and isn’t expected to change within one year.
• Temporary disability or impairment includes injuries or illnesses that continue to heal over time. In these cases, the employee’s doctor would not tell them they’ve reached MMI.