HOW MUCH MONEY DO I GET?

A disabled worker injured after 1982  is generally entitled to receive 80% of the after tax value of his or her wage loss.  This amount is, however, limited by a statutory maximum of 90% of the state average weekly wage (in 2008, $739.00 per week) and can be reduced through “coordination” because of the receipt of other forms of benefits and income.

To determine a worker’s wage loss, it is necessary to calculate the worker’s “average weekly wage.” This is done by taking the highest 39 weeks of pay over the past 52 weeks. If an employee worked less than 39 weeks in the previous year, the total earnings for the year are divided  by the number of weeks in which any work was actually performed to arrive at the “average weekly wage.” The pro rata estimated value of any discontinued fringe benefits can be added to the calculation, but fringe benefits cannot be used to raise benefits to more than two-thirds of the state average weekly wage.  Weekly benefits will be 80% of the after-tax difference between the average weekly wage and current wages, subject to the limitations mentioned above.  Workers’ compensation benefits are not subject to state or federal income tax--although the interest due on benefits which have been delayed  may be.

**The basic benefit rate for injuries which occurred before 1982 is generally two thirds of the workers’ gross average weekly wage. 

For injuries occurring on or after September 1, 1965, benefits continue for the duration of the disability.  (Injuries occurring before this date were limited to 500 weeks of benefits.)   Since 1969, benefits can be reduced 5% each year beginning with the employee’s 65th birthday and every year thereafter until the employee reaches the age of 75.  However, this reduction can only take place if the worker is  eligible for social security and his or her benefits are not being reduced ( coordinated) already because of the receipt of other forms of benefits or income.

>>Back to Workers' Compensation