Managing Employee Injuries and Disability and Occupational Safety

a. Benefit If an industrial injury results in a ratable permanent disability, the employee is entitled to benefits to an extent commensurate with the severity of the disability. The purpose of these benefits is to assist in the rehabilitation of the injured worker so that he may return to the labor market. The percentage rating is converted to a number of weeks of compensation in accordance with a formula in effect on the date of the injury. b. Method of Payment Compensation payments are made in advance and are payable every two weeks. Labor Code Section 4650. Unless otherwise ordered by the Workers’ Compensation Appeals Board, compensation payments must be made directly to the employee in cash or by an immediately negotiable instrument. An employee may authorize direct deposit of the payments to a financial institution. Labor Code Section 4651. c. Timing of Payments If an injury causes permanent disability, the first payment of permanent disability indemnity shall be made within 14 days after the date of the last payment of temporary disability indemnity. Or, if no temporary disability payments have been made due to no lost time from work, permanent disability payments are due within 14 days of the injured worker reaching Maximal Medical Improvement. (MMI) d. Waiting Period For injuries prior to December 31, 1989, payments for permanent disability commence on the fourth day after the condition becomes permanent and stationary; for injuries on or after January 1, 1990, payment commences when temporary disability stops (no waiting period) or on the date of the last payment of temporary disability. An employer must commence advances of benefits when the medical reports show that the employee has sustained permanent disability. In the absence of a formal award, the employer must pay advances for a period commensurate with the expected permanent disability rating. 46 e. Amounts When a compensable injury causes permanent disability, the disability payments and their duration are computed and allowed according to a statutory schedule based on percentage of actual disability in relation to total disability. The average weekly earnings for permanent disability is determined in the same way as temporary disability although the minimums and maximums may differ. The weekly rate of benefits is calculated at 66 2/3% of average weekly earnings.

The amount of the weekly permanent disability benefit is subject to certain maximums and minimums. These are as follows:

Managing Employee Injuries, Disability and Occupational Safety ©2019 (s) Liebert Cassidy Whitmore 38