What is Temporary Disability?

Temporary Disability (TD) is designed to replace your wages while you are unable to work or are restricted to part-time work because of a work-related injury.  It is paid by your employer’s workers’ compensation insurance company.

When are you entitled to T.D.?

In order to receive these payments all of the following events must occur:

1. Your claim has been accepted by the workers’ compensation insurance carrier for your employer; and
2. Your treating doctor has indicated in his status report that has been sent to the insurance company that you can not do your usual and customary job; and
3. Your employer has not offered you a modified job that complies with the restrictions your treating doctor has given you, or your doctor’s restrictions or your employer requires you to work fewer hours.

When does Temporary Disability start and stop?

T.D. is not payable for the first three days of disability unless you are hospitalized or you are disabled for more than fourteen days.  Once your claim has been accepted, payments should begin within fourteen days and continue to be paid every fourteen days until you are released to return to work or until your treating doctor reports that your condition has become Permanent and Stationary (P&S).  Please see the Permanent Disability Quick Link.

There is a limit of two years for these payments within five years of the date of your injury.

How is T.D. calculated?

There are several different ways to calculate T.D.  The difference in these methods is in how “earnings” are calculated.  However, all of these methods result in an “earnings” figure, which is then multiplied by (2/3) two-thirds to determine the rate at which T.D. will be paid.  The T.D. rate is subject to maximum and minimum amounts, which are set by state law depending on the date of injury.

The insurance companies often only do the easiest calculation, which not coincidentally often results in the lowest T.D. rate. This would be to average your earnings over the year prior to your injury.  However, if you received any raises during the year prior to your injury this method shortchanges you.  This method could also result in lower benefits if your true earning capacity was not reflected by your job at the time of your injury.

If you believe the insurance company is underpaying you and they refuse to increase your payments once you have provided them with your calculations, as well as any documentation that supports your calculations, it will be necessary for you to have a hearing before a Judge.  The quickest way for you to get a hearing date is to file a Request for Expedited Hearing.

You should seriously consider speaking to an experienced workers’ compensation lawyer at this point in time. The failure to pay you the correct T.D. rate should be a warning sign that the insurance company is not looking out for your best interests.

It is important that you understand that all your earnings are relevant to determining the appropriate temporary disability rate. If you were employed by more than once company at the time of your injury, then it is necessary for you to immediately provide documentation to the insurance carrier of the amount you earned at these other companies during the year preceding your work injury.

In addition to your earnings other benefits provided to you by your employer are relevant in determining the correct temporary disability rate.  These other benefits include: (1) free housing; (2) company vehicle; (3) food; (4) tips; (5) commissions; (6) overtime; and (7) bonuses.      

Temporary Disability ends on the day of the appointment when your treating doctor says you are P&S.  If you have any permanent disability you are entitled to a settlement and the insurance company is required to send you advances on your settlement. The first payment is due within fourteen days of the last temporary disability payment.  If you were not receiving temporary disability payments, the first payment is due within fourteen days after your treating doctor designates you as P&S.

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