Workers compensation has many facets that provide compensation for employees injured on the job. One of these facets is wage replacement, which compensates the employee for wages lost while they are unable to work due to the work-related injury. Unfortunately, the amount the employee receives is generally not a full paycheck.
Workers Compensation Insurance
Temporary Disability vs Permanent Disability
Compensation varies depending on the severity of the injuries. Wage replacement only steps in if the employee is unable to work. There are four different types of disability with it comes to workers compensation: temporary total disability, temporary partial disability, permanent partial disability and permanent total disability.
If temporarily disabled, employees will be paid a percentage of their regular wages from the time the incident occurred. This percentage is usually 66 2/3%, as well as an amount of employee benefits in some states. This amount is only paid out until the employee is able to return to work.
If permanently disabled, either partial or total, the employee may be entitled to a life pension, which is a continuous payment for the injury. This generally occurs if the employee’s disability (due to the work-related injury) is unable to work after the accident. Payments for partial disability may be less than total disability, and either can be paid in weekly payments or one lump sum.
Death Benefits
In the unfortunate case that an employee dies as a result of a work injury, workers compensation can also provide death benefits to the employee’s surviving family. Death benefits include a lump sum and coverage for a funeral, casket, burial costs, cremation costs and more.
Overall, benefits depend on the injury and the settlement. Injured employees should have a legal expert to assist with working toward a settlement that fairly compensates them for the injury.
Does the Employer Pay for Disability Benefits?
There is a lot of misunderstanding surrounding workers compensation and the employer’s role within it. The employer does not pay for permanent or temporary benefits if that employer has workers compensation. It is instead the provider of their workers compensation that is responsible for paying the disability, medical and/or death benefits to the employee or the employee’s family after a work-related accident. It is another matter when an accident occurs and the employer doesn’t have insurance. In this case, the employee can sue the employer directly for damages caused.