Payment Assessment Approaches

Because each state has its own jurisdiction over workers’ compensation policy, there are a variety of approaches. When determining how much money a disabled worker should receive, the way a state looks at the issue will usually determine how much money is paid.

In general, there are four basic approaches. They are:

• Impairment-based. This is the most common method, as it determines future benefits based solely on the severity of the injury, not on the future wages lost.
• Impairment-based. This is the most common method, as it determines future benefits based solely on the severity of the injury, not on the future wages lost.
• Wage loss. Fewer states use this approach, which is essentially a reimbursement of past and current wage losses as a result of the disability or injury. There is no consideration of future implications or loss of competitive ability down the road.
• Bifurcated. If the worker has returned to work near the same income level, then the payment is based on the impairment level, as above. If not, it is based on the loss of earning capacity.

It is important to understand the implications of these various approaches to your individual circumstances. It is very helpful to consult an attorney when dealing with these complex issues.

Contact Us

If you have any questions about the various approaches states can take, or if you have any other workers’ compensation concerns, contact the Philadelphia workers’ compensation lawyers of Lowenthal & Abrams, P.C. by calling 215-238-1130.