Answer By law4u team
Under workers’ compensation, the amount of compensation varies depending on whether the disability is temporary or permanent. Temporary disability typically refers to a short-term condition, while permanent disability reflects long-term or lifelong impairment. The compensation for each type is determined based on the severity of the injury, the impact on the worker’s ability to earn wages, and medical evidence.
Differences in Compensation for Temporary vs. Permanent Disability
Temporary Disability
Nature
Temporary disability occurs when a worker’s injury prevents them from performing their job temporarily, but they are expected to recover fully.
Compensation Amount
Temporary disability compensation usually covers a portion of the worker's lost wages, often around 60-80% of their average weekly wage.
Duration
The compensation is provided for a limited period, typically until the worker is able to return to work or reaches maximum medical improvement (MMI), meaning they are as good as they are going to get.
Medical Expenses
In addition to wage replacement, temporary disability may cover medical treatment and therapy necessary for recovery.
Permanent Disability
Nature
Permanent disability occurs when the worker’s injury results in long-term or lifelong impairment that prevents them from returning to their previous job or performing work at the same capacity.
Compensation Amount
Permanent disability compensation tends to be higher than temporary disability. It can be calculated based on the severity of the injury and the worker’s ability to work in the future. This compensation is either structured as a lump sum or paid out periodically.
Permanent Partial Disability (PPD)
For injuries that result in partial disability (e.g., the loss of a limb or loss of partial use of a limb), compensation is usually based on the degree of impairment, which can be assigned a specific percentage according to a disability rating.
Permanent Total Disability (PTD)
For injuries that prevent the worker from engaging in any gainful employment, the worker may receive compensation for the rest of their life, either in a lump sum or ongoing payments.
Calculation Factors
For Temporary Disability
Compensation is usually calculated based on the worker's pre-injury average weekly wage and the period of time they are unable to work.
For Permanent Disability
A more detailed evaluation of the injury is required, including medical assessments, vocational experts, and sometimes the application of a disability rating scale (e.g., the American Medical Association’s Guides to the Evaluation of Permanent Impairment).
Legal Actions and Protections
Temporary Disability Benefits
Workers are typically entitled to temporary disability benefits if they are unable to work for a specific period due to an injury. These benefits are typically capped based on the state’s laws and can be time-limited.
Permanent Disability Benefits
Permanent disability compensation is designed to compensate the worker for long-term loss of function. In cases of permanent total disability, compensation may continue for the worker’s lifetime, with periodic reviews or evaluations.
Disability Ratings
For permanent partial disability, workers may receive a rating that assesses the severity of the disability. This can affect the compensation amount and the type of benefits awarded.
Appeal Rights
If a worker believes the compensation offered is too low or inaccurate, they have the right to appeal through the workers' compensation board, which may involve a hearing or review by an expert.
Example
A warehouse worker injures their back while lifting heavy boxes. The injury prevents them from working for three months, but after therapy, they are able to return to their job with no long-term effects.
- During the period of temporary disability, the worker receives compensation equal to 70% of their weekly wages.
- After returning to work, the worker’s benefits are terminated as their condition is deemed fully recovered.
In contrast, another worker suffers a permanent spinal cord injury from a workplace accident, rendering them unable to work ever again. This worker is classified as permanently totally disabled and receives ongoing compensation, calculated based on their prior wages, and potentially supplemented by a disability rating, as well as lifetime medical expenses.
