What are an injured employee’s rights to temporary disability payments just after the injury?

An injured employee’s rights to temporary disability generally fall within one of two different types. If you cannot work while recovering, you receive temporary total disability (TTD) benefits. If you can’t work your full schedule while recovering, you receive temporary partial disability benefit (TPD) payments.

In most cases, an injured employee’s rights to temporary disability payments are for two-thirds of the gross (pre-tax) wages that the employee loses while recovering from a job injury. However, there are maximum amounts set by law that can be recovered, which are adjusted annually. There are also minimum amounts for low-wage earners as well. To calculate your temporary disability, a Sacramento workers’ compensation lawyer considers all income an injured employee received from work: wages, food, lodging, tips, commissions, overtime, and bonuses. Wages can also include earnings from work that the injured employee performed at other jobs when the employee was injured.

When do an injured employee’s rights to temporary disability payments start and stop?

An injured employee’s rights to temporary disability payments begin when the injured employee’s doctor says they can’t do his/her usual work for more than three days or if the employee is hospitalized overnight. Payments must be made every two weeks.

Generally, an injured employee’s rights to temporary disability payments stop when they return to work; when the doctor releases them for work; or when the doctor says their injury has improved as much as it’s going to improve.

For employees injured on the job after Apr. 19, 2004, their temporary disability payments don’t generally last more than 104 weeks within two years from the first payment (for most injuries). For employees who were injured after Jan. 1, 2008, their temporary disability payments don’t usually last more than 104 weeks within five years from the date of their injury.

Payments for a few long-term injuries (such as severe burns or chronic lung disease) can last 104 weeks.

One bit of good news about temporary disability payments, however, is that they are tax-free. You are not required to pay federal, state, or local income tax on the temporary disability payments. You do not have to pay social security taxes, union dues, or retirement fund contributions from the temporary disability payments either.

Can an injured employee’s rights to temporary disability payments be delayed?

If the claims administrator cannot determine whether workers’ compensation covers an injury, he or she may delay an injured employee’s rights to temporary disability payments while investigating. A delay is usually not permitted to be longer than 90 days. If there is a delay, the claims administrator must send you a letter explaining why you won’t receive payments, what additional information the claim administrator needs, and when a decision will be made. If there are further delays, the claims administrator must continue to send you additional letters with similar information.

On the positive side, if the claims administrator does not send you a letter denying your claim within 90 days after filing the claim form, your claim is accepted in most cases. Likewise, suppose you had filed the workers’ compensation claim form at least 14 days before the payment was due, and the claims administrator sent a payment late. In that case, he or she usually must pay you an additional 10 percent of the payment on a self-assessed basis.

The right to temporary disability payments is just as complicated as the right to permanent disability and rights to medical treatment. If you have questions about any of these, don’t hesitate to contact a Sacramento workers’ compensation lawyer at Eason & Tambornini.