Millions of workers are injured on the job every year in the United States. In 2021, 1,062,700 nonfatal injuries resulted in industry workers missing at least one day of work while recovering from their injuries. Many of these injuries often require multiple days and even weeks off of work, depending on the severity.
For this reason, one of the benefits of workers’ compensation is wage replacement benefits, also known as temporary total disability benefits. This benefit is meant to compensate workers for a portion of the wages they miss out on while out of work and recovering from their workplace injury.
However, each state has very specific rules and guidelines for workers’ compensation calculations, and understanding how these calculations work is often confusing. If you aren’t careful and don’t understand how these benefits are calculated, you could make a mistake on your claim that could cost you some of your benefits.
As such, it’s important to consult with a workers’ compensation attorney when filing your claim. A Kentucky workers’ compensation lawyer can walk you through the process, help you calculate your benefits, and ensure your claim is handled without any issues.
What is Workers’ Compensation?
Workers’ compensation is a benefit offered to workers who are injured or become ill due to a workplace incident. These benefits are offered through the employer’s insurance and are available no matter who was at fault for what happened.
Two of the primary types of benefits that workers’ compensation provides are medical benefits and wage replacement benefits. The medical benefits help cover the cost of medical expenses related to the treatment of the workplace injury, and the wage replacement benefits help cover a portion of the income that is lost while the worker is out of work and recovering. If you suffer a permanent injury as a result of the work-related incident, you may also be entitled to future benefits known as permanent partial or permanent total disability benefits.
Who is Eligible for Workers’ Compensation in Kentucky?
Just because someone has suffered a work injury , does not automatically mean they are eligible for workers’ compensation benefits. There are restrictions and limitations on who can recover workers’ compensation benefits from state to state.
In Kentucky, those eligible for workers’ compensation include:
- Contract for hire workers
- City, state, and county employees
- Volunteer firefighters
- Executive officers of corporations
- Those who sell and deliver newspapers
- Any person who performs services in a trade profession
Exclusions to Kentucky workers’ compensation benefits include:
- Agriculture employees
- In-home domestic workers who work less than 40 hours per week
- Certain volunteer workers
- Workers covered by the Federal Act
- Charitable workers who work for sustenance only
- Certain religious organization workers
How is Workers’ Compensation Calculated in Kentucky?
How much a worker will receive and how workers’ compensation benefits are calculated will depend on a few different factors which can include:
- The injury or illness sustained and how severe it is
- How long the worker is expected to be out of work
- If the worker can perform some work duties while recovering
- If the worker ends up being permanently disabled and unable to return to work
- How much money the worker made on average weekly
- Whether the worker needs training to take on a new profession
- How much money the worker makes at their new job if they are unable to return to their previous job
- How long the worker is disabled
When a worker is injured, they will be evaluated by a doctor who will then provide a prognosis for how long it will take for the worker to recover (if they will recover at all) and when they can return to work. This prognosis is then used to determine what type of disability wage replacement benefits the worker will receive.
In Kentucky, there are three different types of disability benefits:
1. Temporary Total Disability Benefits (TTD)
If you are unable to return to work or have restrictions that prevent you from working for a period of time while you are recovering, you will likely receive Temporary Total Disability (TTD) benefits during your recovery period.
TTD benefits are calculated as ⅔ of the average weekly wage you were receiving before you were injured on the job. This weekly amount will then be provided until you have recovered and reached “maximum medical improvement,” which means your condition has improved as much as it is expected to.
However, these weekly benefits are subject to maximum and minimum amounts that change every year. Currently, as of 2023, the weekly maximum is $1,118.43, and the minimum is $203.35. This means even if 2/3 of your average weekly wage is more than the maximum, you will not receive more than that amount per week. Similarly, if 2/3 of your average weekly wage is less than the minimum, you will receive no less than the minimum amount. TTD benefits terminate once you reach maximum medical improvement.
It should also be noted that Kentucky will not pay TTD benefits for the first seven days off work unless the worker’s recovery is expected to last more than two weeks.
2. Permanent Total Disability Benefits (PTD)
Permanent Total Disability (PTD) benefits are provided when the workplace injury leaves the worker permanently disabled and they are unable to return to work in any capacity. PTD benefits are calculated the same as TTD benefits, except that they will be provided for as long as you are disabled until you reach 70 years of age.
3. Permanent Partial Disability Benefits (PPD)
If you are left partially disabled but are still able to perform some kind of work, you will receive Permanent Partial Disability (PPD) benefits. For these benefits, your doctor will assign you a rating in the form of a percentage based on the type of injury you have sustained and the extent of your loss of bodily function. That rating will then be used to determine how much you will receive, along with other factors such as whether you were able to return to work at the same wage or not.
The basic calculation for these benefits is ⅔ of your average weekly wage multiplied by the impairment rating percentage. That number will then be multiplied by a number listed on a table according to Kentucky law, which is tied to the impairment rating. These numbers go from a .65 for a 5% impairment rating to 1.7 for ratings above 35%.
There can also be additional multipliers added to the equation based on work status, age, and education.
Trust McCoy & Sparks—Premier Workers’ Compensation Attorneys in Central Kentucky
At McCoy & Sparks, our workers’ compensation attorneys know what it takes to ensure our clients are paid the full and fair benefits they deserve for their workplace injuries. We can help you file your claim, ensure all information is correct on your paperwork, deal with denials or appeals, and make sure your benefits are fairly calculated, so you are paid the full amount you are owed.
You owe us nothing unless we recover compensation for you. Make the right call to (844) 4KY-WINS for a risk-free consultation with one of our workers’ compensation attorneys today.