1. Temporary Total and Temporary Partial Incapacity Benefits - The Basics Web Feb 2016

2.  Order or award of compensation. OR  Employer/Insurer accepts the claim.  MOP Box 20(A)  Creates a compensation payment scheme. Payment with Prejudice

4.  Compensation for incapacity to work is not payable for the first 7 days  Exception – firefighters not subject to waiting period  In a broken period of incapacity, the waiting period may be determined by wages lost, or by benefits lost. Section 204: Waiting period; when compensation payable

5.  AWW Method  Employee loses wages because of the injury which cumulatively equal or exceed the employee’s pre-injury AWW.  Comp Rate Method  Employee loses wages because of the injury that would otherwise require the insurer to pay one week of benefits (equal to or greater than the employee’s WCR). For injuries prior to 1/1/13, the CR method usually produced a slightly longer waiting period. Waiting period; when compensation payable

6.  Example 1: A broken period of incapacity (Temporary Total Disability)  Injured 1/29/13, paid ½ day  OOW 1/29/13 – 1/31/13  RTW 2/1/13  Back out of work 2/15/13 – ongoing When is the 7 day waiting period met? Waiting period; when compensation payable

7.  Example 1 Calculations  1/29/13: When an employee is paid 1/2 day or more wages on the date of injury, the date of injury will not be considered a day of incapacity (Section 212 and Rule 8.3).  1/30/13 – 1/31/13: 2 calendar days  2/15/13 – ongoing: 5 calendar days = 2/19/13  Waiting period met 2/19/13; first day of compensability after waiting period is met (MOP Box 22) is 2/20/13. Waiting period; when compensation payable

8.  Example 2: Temporary Partial Disability  DOI 3/11/13 – RTW limited duty  Pay period Sunday – Saturday  Pre-injury AWW $660 / WCR $440.00  Post-injury actual earnings $450 / WCR $300.00  Partial rate = $440.00 - $300.00 = $140.00 OR $660.00 - $450.00 = $210.00 x 2/3 = $140.00 Waiting period; when compensation payable

9. WCR=$440.00  Example 2 Calculations AWW=$660.00 WCR=$440.00  First day of compensability after waiting period is met (MOP Box 22): 4/6/13 Waiting period; when compensation payable Pay Period Partial Weekly Benefit Rate Cumulative Partial Weekly Benefit Rate Weekly Benefits Due 3/10-3/16/13140.00 3/17-3/23/13140.00280.00 3/24-3/30/13140.00420.00 3/31-4/6/13140.00560.00120.00

10.  In case incapacity continues for more than 14 days, compensation is allowed from the date of incapacity.  Must pay for the waiting period. Waiting period; when compensation payable

11.  Example 2 Calculations (cont.) (WCR $440.00) (2 x WCR $880.00) Waiting period; when compensation payable Pay Period Partial Weekly Benefit Rate Cumulative Partial Weekly Benefit Rate Weekly Benefits Due 3/10 - 3/16/13140.00 0 3/17 - 3/23/13140.00280.000 3/24 - 3/30/13140.00420.000 3/31 - 4/6/13140.00560.00120.00 4/7 - 4/13/13140.00700.00140.00 4/14 - 4/20/13140.00840.00140.00 4/21 - 4/27/13140.00980.00580.00 4/28 - 5/4/13140.001120.00140.00

12.  The first payment of compensation is due and payable within 14 days of notice or knowledge of a claim for incapacity or death benefits, on which date all compensation then accrued must be paid.  In the previous example, the first day of compensability after the waiting period is met is 4/6/13 (8 th day); first payment due 4/12/13. Benefit payment Section 205 and Rule 1.1

13. every 7 days  Subsequent incapacity payments must be made weekly (every 7 days) and directly to the employee entitled to that compensation at that employee’s last known mailing address, or at any place that employee designates. Benefit payment Section 205 and Rule 8.4

14.  Section A – employee must return to work with the employer of injury.  Reductions and discontinuances must be based on the employee’s actual earnings unless the employee returns without restrictions or limitations. Discontinuance or reduction of payments Section 205.9 and Rule 8.11

15.  Section B – all circumstances other than the employee’s return to work with the employer of injury. 1.Payment without prejudice (voluntary payment) – must file WCB-8. 2.Payment with prejudice (order or award of compensation or compensation payment scheme) – must petition the Board. Discontinuance or reduction of payments Section 205.9

16.  RTW with a different employer and employer/insurer is filing a 21- day certificate of discontinuance/reduction (WCB-8):  The employer/insurer must include, with the 21-day certificate, form WCB-231A (Employee’s Return to Work Report)  Within 14 calendar days after the expiration of the 21-day period, or 14 days after receipt of the documentation from the employee (if received after expiration of the 21 day period), file with the Board the documentation received along with an amended 21-day certificate, which shall also include any necessary adjustments based on that documentation. Discontinuance or reduction of payments Section 205.9 and Rule 8.15

17.  RTW with the employer of injury  Jane $600 AWW / RTW earning $620  WCB-4 Discontinuance (with or without restrictions or limitations)  Julie $600 AWW / RTW no restrictions or limitations earning $560  WCB-4 Discontinuance (maintain proof of full duty release on file)  Janice $600 AWW / RTW with restrictions or limitations earning $560  WCB-4 Modification (to partial)  If reduced earnings are strictly due to economic conditions (i.e. overtime no longer available), may discontinue with a WCB-8  Joslyn $600 AWW / RTW without restrictions or limitations according to her treating health care provider, but there are conflicting medical records from another health care provider with respect to the lack of restrictions or limitations, earning $560 WCB-8 (21 Day) Discontinuance Discontinuance or reduction of payments Examples

18.  RTW with the employer of injury -Judy $600 AWW / RTW earning $560 because she chooses not to work optional overtime which she worked prior to the injury If RTW was with restrictions or limitations, WCB-8 (21 Day) Discontinuance If RTW was with no restrictions or limitations, WCB-4 Discontinuance (maintain proof of full duty release on file)  RTW with a different employer  Joyce $600 AWW / RTW with different employer and with restrictions or limitations earning $560  WCB-8 Modification (to partial) Discontinuance or reduction of payments Examples (continued)

19.  Adjusted annually on July 1 – adjust on that day. File a modification.  Penalty may apply if benefit is not timely adjusted  Date of Injury prior to 1/1/2013 - 90% of the state average weekly wage as determined by the Department of Labor.  Date of injury on/after 1/1/2013 100% of SAWW Maximum benefit levels Section 211

20.  Date of injury prior to 1/1/2013 - weekly compensation equal to 80% of the employee’s after-tax average weekly wage, but not more than the maximum benefit under section 211.  Date of injury on or after January 1, 2013, 80% after tax computation is replaced with two-thirds of the AWW (AWW divided by three, times two). Compensation for total incapacity Section 212

21.  Date of injury prior to 1/1/2013 - difference between 80% of the injured employee’s after-tax average weekly wage before the injury and 80% of the after- tax earnings after the injury, but not more than the maximum benefit under section 211.  Date of injury on/after 1/1/2013 - the 80% after tax computation is replaced with two-thirds of the AWW and two-thirds of earnings after the injury, -OR- simply use (AWW minus earnings) times 2/3. Compensation for partial incapacity Section 213 and Rule 8.8

22.  “The employee’s compensation for incapacity is subject to an offset for the after tax amount of sick pay received…”  “…the employee is entitled to his holidays and vacations regardless of disability. Thus, his holiday and vacation pay is not subject to offset.” William Fitzherbert v John T. Noble Co. 9/24/13 H.O. Pelletier Earnings Offsets Sick Pay vs Vacation/Holiday Pay

23. Things to remember: Employers must be notified of their obligation to promptly furnish all post-injury information necessary to facilitate timely indemnity payments (need weekly information even if the pay cycle is different). Match partial benefit calculations to the employer’s pay cycle. There is no such thing as a partial week of partial benefits. Compensation for partial incapacity Section 213 and Rule 8.8

24. When an employee is both partially and totally incapacitated in the same payroll week: 1.Calculate and pay TTD benefits due for any days of total incapacity in that week. 2.Calculate TPD benefits due for the entire week. 3.Deduct TTD benefits paid during the week for which partial benefits were calculated and pay the difference (if a negative amount, no further benefits are due).  In other words, pay the greater of #1 and #2 above. Modifications from TTD to TPD or from TPD to TTD

25. Example 1: John is injured 3/2/13, he is paid for half a day on that day  Pay period Sunday – Saturday  Pre-injury AWW $780  OOW 3/2 - 3/13/13, RTW 3/14/13 with restrictions  Post-injury actual earnings $300 Modifications from TTD to TPD or TPD to TTD

26. March 2013 SunMonTueWedThuFriSat 12 Paid ½ day 3 TTD 4 TTD 5 TTD 6 TTD 7 TTD 8 TTD 9 TTD 10 TTD 11 TTD 12 TTD 13 TTD 14 TPD 15 TPD 16 TPD Modifications from TTD to TPD or TPD to TTD

27. Example (cont.)  Pre-injury AWW $780  WCR $520.00/Daily Rate $74.29  TTD 3/2 - 3/13/13  3/2/13 paid ½ day; not considered a day of incapacity  Calculate TTD 3/3/13 - 3/9/13 ($74.29 x 7 days = $520.00)  Waiting period, do not pay yet  Pay TTD 3/10 - 3/13/13 ($74.29 x 4 days = $297.16)  Calculate Partial benefits for week ending 3/16/13 Modifications from TTD to TPD or TPD to TTD

28. Example (TPD 3/10/13 - 3/16/11 cont.)  Pre-injury AWW $780 1.Determine the WCR – 2/3 of AWW (WCR $520.00).  Post-injury weekly earnings $300 2.Determine the WCR – 2/3 of $300.00 (WCR $200.00).  Employee’s TPD benefits for the transition week = $320.00 3.The difference between the pre-injury rate and the post-injury rate is the partial benefit amount.  Less TTD paid during the transition week ($297.16)  Employee owed $22.84 TPD in addition to the $297.16 TTD already paid ($320 total) Modifications from TTD to TPD or TPD to TTD

29. Example 2: Jack is Injured 3/5/13, not paid ½ day  Pay period Sunday - Saturday  Pre-injury AWW $750  OOW 3/5/13 - 3/13/13, RTW 3/14/13 with restrictions  Post-injury actual earnings $360 Modifications from TTD to TPD or TPD to TTD

30. March 2013 SunMonTueWedThuFriSat 12 345 Not Paid ½ day - TTD 6 TTD 7 TTD 8 TTD 9 TTD 10 TTD 11 TTD 12 TTD 13 TTD 14 TPD 15 TPD 16 TPD 17 TPD 18 TPD 19 TPD 20 TPD 21 TPD 22 TPD 23 TPD Compensation for partial incapacity Section 213 and Rule 8.8

31. Example 2 (cont.)  Pre-injury AWW $750  WCR $500.00/Daily Rate $71.43  TTD 3/5/13 - 3/13/13  Calculate TTD 3/5/13 - 3/13/13 (one week plus 2 days = $642.86)  Do not pay 7 day waiting period 3/5/13 - 3/11/13 ($500.00)  Pay TTD 3/12/13 - 3/13/13 ($71.43 x 2 days = $142.86)  Calculate Partial benefits for week ending 3/16/13 Compensation for partial incapacity Section 213 and Rule 8.8

32. Example 2 (cont.)  Pre-injury AWW $750 1.Determine the WCR – 2/3 of the AWW (WCR $500.00).  Post-injury weekly earnings $360 2.Determine the WCR – 2/3 of $360 (WCR $240.00).  Employee’s TPD benefits for the transition week = $260.00 3.The difference between the pre-injury rate and the post-injury rate is the partial benefit amount.  Less TTD owed during the transition week (4 days or $285.72).  $260.00 (TPD due) minus $285.72 (TTD due) is less than zero, so no additional benefits are due. Modifications from TTD to TPD or TPD to TTD

33. Example 2 (cont.)  Be sure to pay for the waiting period in addition to TPD the following week if incapacity continues for more than 14 days (2 x WCR). Modifications from TTD to TPD or TPD to TTD

34. Example 2 Calculations (cont.) $1000.00 WCR = $500.00, 2 x WCR = $1000.00) Waiting period; when compensation payable * Partial Weekly Benefit Rate* Cumulative Partial Weekly Benefit Rate Weekly Benefits DueNotes 3/5/13 - 3/9/13357.14 *TTD Benefits 3/10/13 - 3/13/13285.72642.86142.86 *TTD Benefits 3/10/13 - 3/16/130642.860No additional due 3/17/13 - 3/23/13260.00902.86260.00 3/24/13 - 3/30/13260.001162.86760.00$500.00 + $260.00 3/31/13 - 4/6/13260.001422.86260.00

35. In the previous examples we transitioned from TTD to TPD. When we transition from TPD to TTD, the method remains the same.  Calculate and pay TTD benefits due for the days of total incapacity.  Calculate TPD benefits due for the week.  Deduct TTD benefits paid during the week for which partial benefits were calculated and pay the difference.  If the result is a negative amount, no additional indemnity benefits are due for the week. Modifications from TTD to TPD or TPD to TTD

36.  Compensation for actual loss of certain body parts  The incapacity is considered to continue from the loss of the body part to the end of the specified period  Compensation from the date of injury until the loss of the limb does not count toward the specified period  Incapacity beyond the specified period is compensable, even if the employee had returned to work, with no offset for those earnings Specific Loss Benefits Section 212.3

37. John injured his hand at work and went out on TTD, and four weeks later had his index finger amputated as a result of that injury. Six weeks following the amputation, he returned to work full duty. The specific loss period would begin at the date of the amputation (not the date of injury) and continue for the specified period (38 weeks), even though he returned to work within the 38 week period. If he was then taken out of work after the 38 week period for that same injury, it would be treated as a new period of incapacity, with no offset for the earnings or benefits he had within that 38 weeks. If the employee did not return to work within the specific loss period, a WCB-4 Modification should be filed to change from specific loss benefits to weekly compensation at the expiration of the 38 weeks. Specific Loss - example

38. QUESTIONS???