Let's break down the major pieces that determine your workers' compensation case value, explain how permanent injury awards work, and show you why the number you calculate isn't always the same as the amount that ends up in your pocket.
The honest answer is: it depends.
A workers' compensation case can be worth anywhere from a few thousand dollars to six figures or more. The value usually comes from three things: lost wage benefits, medical treatment, and any permanent disability caused by the injury.
The type of injury matters, too. Some injuries are valued based on permanent loss of use of a body part, while others are valued based on how much they affect your future ability to earn a living.
It's also impossible to know a case's true value right after an accident. Before permanent disability can be assessed, you'll usually need to reach Maximum Medical Improvement (MMI), which is when your doctors believe you've recovered as much as you're likely to recover.
Finally, a case's value is not always the same as the amount you receive. Medical expenses are paid to providers, and benefits already paid during your recovery may reduce certain permanent disability awards.
That's why two workers with similar injuries can end up with very different case values.
Your weekly workers' compensation check is mostly based on two things: what you were earning before the accident and your level of disability.
In New York, the basic rule is that you're generally entitled to two-thirds of your Average Weekly Wage (AWW), subject to the state's maximum weekly benefit rate. Your AWW is usually calculated using your gross earnings during the 52 weeks before the accident and may include things like overtime, tips, and certain employment benefits.
The more disabled you are, the larger your weekly benefit may be. Someone who is completely unable to work will generally receive more than someone who can still work in a limited capacity.
One thing many injured workers don't realize is that workers' compensation benefits are generally tax-free. Because of that, your weekly check may end up being closer to your normal take-home pay than you might expect.
Not all workers' compensation injuries are valued the same way.
Two things matter most: what body part was injured and how severe the permanent damage is.
Some injuries, like those involving arms, legs, hands, feet, fingers, toes, vision, or hearing, are valued using a schedule set by law. Others, including neck, back, head, and many internal injuries, are valued based on how much they affect your future ability to earn a living.
For those non-schedule injuries, factors like your education, work history, job skills, and future employment opportunities can also affect value. That's why two workers with similar injuries can end up with very different awards.
That depends on the type of injury.
For schedule injuries, such as injuries to an arm, leg, hand, foot, finger, or toe, doctors assign a percentage of permanent loss of use. That percentage is then applied to the number of weeks the law assigns to that body part. The higher the percentage, the larger the award.
For non-schedule injuries, such as neck or back injuries, the focus is on Loss of Wage Earning Capacity (LWEC). Instead of looking at loss of use of a body part, workers' compensation looks at how much the injury affects your ability to earn a living in the future.
In either case, compensation benefits already paid during your recovery may be credited against the final award, which can affect how much you ultimately receive.
Often, less than you think.
A case's total value includes things like medical treatment, lost wage benefits, and permanent disability awards. But not all of that money goes directly to you.
Medical expenses are paid to doctors, hospitals, and other providers. In addition, workers' compensation benefits already paid during your recovery may be credited against certain permanent disability awards.
As a result, the total value of a case is often much higher than the amount an injured worker ultimately receives in a settlement or award.
If you have questions about your case, want help understanding your benefits, or just want to know whether things are headed in the right direction, I'd be happy to talk with you. Give me, Rex Zachofsky, a call anytime. I'll listen to what's going on, answer your questions, and help you understand your options.
.jpeg)
.jpeg)
