How To Calculate Workers’ Compensation Damages
If you’ve sustained a workplace injury and have an active workers’ compensation claim, or if you think you may have an upcoming claim, you need to know how these damages are calculated.
Understanding what Kentucky law says about workers’ compensation claims can give you a leg up when it comes to understanding what happens after you file your claim. Unfortunately, insurance carriers and employers often seek to limit how much compensation a person receives.
A Kentucky workplace accident attorney can help ensure your rights are protected and fight for the full compensation you deserve. Whether you’re dealing with a denied claim, delayed benefits, or a settlement that doesn’t reflect the extent of your injuries, an experienced attorney can guide you through the process and advocate on your behalf.
Types of Workers’ Compensation Benefits in Kentucky
Kentucky’s workers’ compensation system provides several types of benefits to help cover the costs of a workplace injury or illness. Understanding these benefits is the first step toward calculating your total compensation. Workers’ compensation benefits in Kentucky generally include:
- Medical Benefits. Coverage includes medical treatment related to the work injury, such as surgeries, hospital stays, medications, and rehabilitation therapies. All reasonable and necessary treatment should be covered under Kentucky law.
- Temporary Total Disability (TTD) Benefits. TTD benefits are available if you cannot work while recovering from your injury. These benefits generally come to around two-thirds of your average weekly wage, subject to a statewide cap, and continue until you reach maximum medical improvement (MMI).
- Permanent Partial Disability (PPD) Benefits. If you suffer a permanent impairment but can still work in some capacity, you may qualify for PPD benefits. The amount is based on your impairment rating and can be adjusted by factors like age, education, and the physical demands of your job.
- Permanent Total Disability (PTD) Benefits. If your injury prevents you from performing any gainful work, PTD benefits may be awarded. PTD benefits are generally calculated at two-thirds of your average weekly wage and may continue indefinitely.
- Death Benefits. In the event of a work-related fatality, dependents of the deceased individual may be entitled to benefits, which include coverage for funeral expenses and ongoing support for dependents.
Calculating Temporary Total Disability (TTD) Benefits
TTD benefits are intended to replace a portion of your income while you are temporarily unable to work. In Kentucky, these benefits are calculated as two-thirds (66.67%) of your average weekly wage. For example:
- If your average weekly wage before the injury was $900, you would receive $600 per week in TTD benefits (900 x 0.6667).
- Kentucky law imposes a cap on TTD benefits, which adjusts annually. Your benefits cannot exceed the maximum amount set by the state, regardless of your pre-injury wage.
TTD benefits are paid until you reach MMI, at which point your eligibility may shift to PPD or PTD benefits, depending on your condition.
Calculating Permanent Partial Disability (PPD) Benefits
PPD benefits are available for workers with permanent injuries who can still perform some work. The calculation is more complex, as it involves the following factors:
- Impairment Rating. Your impairment rating is determined by a medical professional and expressed as a percentage. This rating reflects the extent of your disability.
- Benefit Multiplier. Kentucky uses a multiplier to adjust benefits based on your level of disability. Higher ratings, particularly for workers with reduced capacity for employment, may qualify for a larger multiplier.
- Average Weekly Wage and Weekly Benefit Rate. Kentucky law requires that your benefits be calculated based on your average weekly wage and then adjusted according to your impairment rating and the applicable multiplier.
For example, if you have a 10% impairment rating, earn an average weekly wage of $900, and qualify for a multiplier of 1.5, your weekly benefit would be calculated as follows:
- Determine the base benefit: 10% of $900 = $90.
- Apply the multiplier: $90 x 1.5 = $135.
This amount represents your weekly PPD benefit, which is typically paid for a set period as determined by the severity of your impairment.
Calculating Permanent Total Disability (PTD) Benefits
PTD benefits are available if you cannot work in any capacity due to your injury. In Kentucky, PTD benefits are calculated similarly to TTD benefits, at two-thirds of your average weekly wage, subject to the state’s maximum weekly rate. These benefits may continue indefinitely.
For instance:
- If you had an average weekly wage of $900, your PTD benefit would be approximately $600 per week (900 x 0.6667).
- Kentucky law provides PTD benefits until the recipient reaches a specified age, depending on individual circumstances, at which point payments may change or cease.
Additional Factors Affecting Workers’ Compensation Damages
Various factors can impact the total amount you receive in workers’ compensation benefits in Kentucky. These include:
- Pre-existing Conditions. If you have a pre-existing condition that contributes to your current disability, it may affect your benefits. However, Kentucky law provides that any aggravation of a pre-existing condition due to a work injury is generally compensable.
- Return-to-Work Ability. If your injury allows you to return to work in a reduced capacity, this can influence the type and duration of benefits you receive.
- Age and Educational Level. Kentucky’s workers’ compensation calculations for PPD may adjust based on your age and education, with younger workers or those with less education potentially receiving different benefit rates.
At Gary C. Johnson, P.S.C., we are dedicated to helping injured workers in Kentucky understand and pursue their rightful benefits. Contact us today for a free consultation to discuss your claim and learn how we can assist with every aspect of your workers’ compensation case.
