How To Minimize Indemnity Expenses by Finding Jobs for Injured Employees

Workers’ comp law  varies so much from state to state, keeping track is a daunting task.  After a bit of research, it appears there are differences in workers’ comp law pertaining to indemnity expense.  If you are new to the risk management with cases in wage loss states, hopefully you will find this research useful.  A useful resource is http://www.reduceyourworkerscomp.com/workers-compensation-state-laws-and-regulations.php

States With High Wage Loss Exposure (Indemnity Payments) After a Case Reaches (Maximum Medical Improvement (MMI)
Michigan                          Illinois
Pennsylvania                    Louisiana
Maine                               New Hampshire 
New York

Additional state  information will be added as research continues.

States Without Wage Loss Exposure (Indemnity Payments) Once A Case Reaches MMI
Alabama                           Arizona
Arkansas                           Colorado
Connecticut                      Florida
MIssissippi                         Missouri
New Jersey                       Tennessee

Different “Benefits” In Different States

Florida has  ”impairment benefits” and no wage loss payments.  These payments are determined based on the injury, and continue for a specified amount of time. They are not affected by re-employment of the injured worker in any way. The injured worker receives the same impairment benefit, whether working or not.

Some states  have wage loss exposure limited by the rating of the permanent disability or the percentage of disability.  Most of these charts are available on each state Workers’ Comp Board website. For a list of state boards:  http://www.ic.nc.gov/ncic/pages/wcadmdir.htm#al

For example:  In the District of Columbia,  the length of time an injured worker can receive indemnity payments is based on the injury, injury x = x# of weeks.

In Michigan,  there is no time limit on indemnity payments for permanent partial disability.

In New Hampshire  the limit is 262 weeks (including the weeks the injured worker was considered temporarily disabled).

In Maine and Louisiana  the limit is 10 years or 520 weeks.

In New York  Permanent Partial Disability cases are eligible for indemnity payment to continue depending on injury from a minimum of 225 weeks to a maximum of 525 weeks.  (workersxzcompxzkit)

Pennsylvania  has a limit of 500 weeks for partial permanent disability indemnity payments.

In states where  there is a continuance of indemnity, or wage loss, payments required from the employer or insurer, the injured worker has an obligation to actively pursue re-employment and/or to make an effort to obtain work.  When an injured worker returns to work, depending on the pay variance, the employer may be obligated to continue to make up the difference between the original wage earned when the employee was injured and the new wage.  This also varies by state.   But, the insurer can apply to the Workers’ Comp board to discontinue payments if they determine the injured worker (workers’ comp claimant) is not actively pursuing re-employment.

Welcome to our guest blogger  Katrina Paglierani

Katrina Paglierani of National Job Finders  finds jobs for injured employees,  performing job searches for injured workers’ with permanent restrictions to locate REAL jobs. National Job Finders sets up the interviews, notifies all parties, and follows up with their human resource contacts at the prospective employers.  Contact at: Katrina@NationalJobFinders.com or 1-800-225-4070. www.nationaljobfinders.com/welcome

We are accepting short articles* (300-800 words) on WC cost containment. Contact us at: Info@WorkersCompKit.com. *Non-compensable.

Do not use this information without independent verification. All state laws vary. You should consult with your insurance broker or agent about workman’s comp issues.