What Are Wage Loss Benefits?

Do I Qualify For Wage Loss Benefits?

If you cannot work because of your work injury or if you cannot earn your full wages because of your work injury, you may be entitled to wage loss benefits.

There is a waiting period of 3 days before injured workers are eligible for wage loss benefits. The waiting period is counted in consecutive calendar days, not work days, and starts the first day of disability (even if it is a partial day of disability). 

If there is disability on the 10th calendar day or beyond, compensation is owed from the first date of disability. 

What You Need To Know.

Wage loss benefits are calculated based on your average weekly wage (AWW) and include the following:

• Temporary Total Disability (TTD) Benefits
• Temporary Partial Disability (TPD) Benefits
• Permanent Total Disability (PTD) Benefits

Temporary Total Disability (TTD) Benefits Explained

TTD benefits are available for periods of time when you are completely off work. This could be because your healthcare provider has taken you off work completely or your employer is not able to accommodate your restrictions. 

TTD benefits are paid at an amount that is two thirds of your average weekly wage. For example, if your average weekly wage is $900 per week, the weekly TTD check would be $600. 

The weekly TTD rate is subject to certain minimum and maximum rates, which depend on the date of injury and change periodically due to changes in the law.

DID YOU KNOW

• Currently, injured workers can receive a maximum of 130 weeks of TTD benefits. 
• TTD can be paid longer if the injured worker is in an approved work retraining education program. 
• The insurer has 14 days from when the employer learned you were not able to work to start making TTD payments. 
• TTD payments are not taxable and should be paid at regular intervals once they are started according to the same schedule you were paid before the injury. 
• You must have restrictions on your ability to work to receive TTD benefits.

Temporary Partial Disability (TPD) Benefits Explained

TPD benefits are paid if you return to work (either with your date-of-injury employer or another employer) and earn less than your average weekly wage because of your injury. 

TPD benefits are calculated based on your average weekly wage at the time of your injury and your gross weekly earnings. These benefits are based on weekly wages, not hourly wages, and are calculated on a weekly basis. 

For example, if your average weekly wage is $900 per week and you earned $600 in gross earnings in one week, the benefit owed to you would be $200 (two thirds of the difference) and calculated as follows:

$900 (average weekly wage) – $600 (gross earnings) = $300 (wage loss) x 2/3 = $200 (amount owed to employee for that week)

DID YOU KNOW

For injuries on or after October 1, 2018, injured workers can receive a maximum of 275 weeks of TPD benefits and cannot receive these benefits after 450 weeks have passed since the date of injury. These limits might not apply if you are in an approved retraining education program. 

Here are a few other things you need to know about TPD benefits:

• TPD benefits are also non-taxable.
• The insurer has 10 days from the date your pay statement is submitted to them to issue payment for TPD benefits. 
• You must have restrictions on your ability to work to receive TTD benefits.

We recommend that you submit a copy of your full pay statement to the adjuster as soon as you receive it in order to get paid TPD benefits as quickly as possible (and keep a copy of the correspondence for your records).

The Reason?

There tends to be more delays in TPD payments when injured workers rely exclusively on their employers to send pay statements over on their behalf. Employers frequently do not consistently submit pay statements on your behalf to the insurer to make TPD payments.

Permanent Total Disability (PTD) Benefits Explained.

PTD benefits are payable to employees who are not able to return to gainful employment. The PTD benefit amount is usually based on two-thirds of your average weekly wage. The minimum PTD rate is calculated at 65% of the statewide average weekly wage in effect at time (this typically changes yearly). 

The maximum rate is calculated the same as it is for TTD benefits.

DID YOU KNOW

• The benefit maximum for PTD benefits varies significantly based on the date of injury in the case as the law has changed periodically over the years. 
• As of October 1, 2018, the retirement presumption age was raised from 67 to 72. PTD benefits are potentially payable through the presumed retirement age. 
• If you are injured at work after turning 67 and entitled to PTD benefits, benefits are payable for a maximum of five years. 
• Once the workers’ compensation insurer has paid $25,000 in PTD benefits to the injured worker, the weekly workers’ compensation benefits can be reduced by the amount of Social Security benefits also being paid to the injured worker. 
• PTD benefits cannot be offset/reduced by benefits paid through the Public Employees Retirement System (PERA), Teachers Retirement Association (TRA), and Minnesota State Retirement System (MSRS) and other agencies that pay government benefits. 
• PTD benefits are non-taxable. 

Am I Eligible?

To be eligible for workers’ compensation, you must: 

• Be classified as an employee (full or part time)
• Sustain your injury/illness while performing job-related duties.
• Your work-related injury or illness must have caused you to miss work or seek medical treatment.

Need Help Getting the Coverage You Deserve?

Every workers’ compensation case is unique, but there are standard protocols to follow in Minnesota to ensure you receive the pay and benefits owed to you.

The best advice we can give before getting started is to consult with a Minnesota workers’ compensation lawyer, who can advise you of your rights. 

At Meshbesher & Spence, we are well-versed in navigating not only your workers’ compensation claims, but also PERA and MSRS disability and Minnesota Statutes 299A.465. We understand the interplay between disability and workers’ compensation benefits and will work to maximize your overall recovery.