Money Benefits in a Minnesota Work Comp Case

Individuals who are hurt at work in Minnesota may be eligible for workers' compensation benefits, which, in addition to medical expense benefits and rehabilitation benefits, can include significant monetary benefits.

I often meet with potential Minnesota workers’ compensation clients who tell me that they just want to get the medical care they need and get on with their lives. They tell me they don’t want any money, they just want to get back to work, and they don’t want their employer to think poorly of them if they hire a lawyer. While this is an admirable attitude to have, all injured workers should know a few things about monetary benefits available under Minnesota workers’ compensation benefits.  

• The amount of your wage loss benefits is usually dependent on how much money you earned in the 26 weeks preceding your date of injury.  This calculation method is used to determine your Average Weekly Wage (AWW). Your AWW is used to calculate wage loss benefits, including temporary total disability (TTD) benefits, temporary partial (TPD) disability benefits, and permanent total disability (PTD) benefits. In some cases, a different calculation rule may apply. Determining an injured workers’ correct AWW is important to determining the appropriate compensation rate for wage loss benefits. Calculation errors or under-calculations can cost an injured worker hundreds or even thousands of dollars. 

• There is no pain and suffering compensation available in a Minnesota workers’ compensation case. Compensation paid on a work injury claim is based strictly on the benefits available under the law. “Pain and suffering” or “loss of enjoyment of life” are money damages awarded by judges or juries in personal injury cases, not workers’ compensation cases. Even the most horribly painful injury will not warrant any compensation for pain and suffering if it is a workers’ compensation injury in Minnesota. In some workers’ compensation cases, however, there may be what’s known as a third-party liability claim, or a personal injury claim, against someone other than an injured workers’ employer or a co-worker, which can include damages for pain and suffering. 

• Permanent partial disability awards are available only to injured workers whose injuries are permanent. Permanent partial disability (PPD) benefits are available to injured workers in Minnesota who have suffered a permanent injury. A worker in Minnesota who sustains a serious, but temporary injury, is not eligible for permanent partial disability benefits. For workers who have sustained a permanent injury, your doctor should assign a permanent partial disability rating based on the Minnesota PPD schedules once you have reached Maximum Medical Improvement (MMI). This rating is often a source of disagreement in workers’ compensation cases. In some cases, five different doctors might come up with five different ratings. 

• Insurers sometimes “close” a Minnesota workers’ compensation case without obtaining a permanent partial disability (PPD) rating from the injured worker's treating physician. On occasion, this may be because the primary treating physician simply isn’t familiar with the workers’ compensation PPD schedules or the rules governing timing of assigning a PPD rating. In other cases, the doctor, unfortunately, simply doesn’t want to be bothered. In yet other cases, the insurer never requests a rating from the doctor, and a rating is never issued, even though the worker clearly has a permanent injury. We routinely see cases that were supposedly “closed” by the insurance company, where the worker was clearly entitled to several thousand dollars’ worth of permanent partial disability benefits.

• It may be difficult, if not impossible, to predict how much money an injured worker will get for a Permanent Partial Disability (PPD) award at the outset of the claim. When an injured worker comes for a consultation at the beginning of his or her claim, I may not be able to predict how much money will be awarded for PPD, because we don’t know the extent, if any, of any permanent injuries that individual may have until that worker has gone through a course of medical treatment. For some types of injuries, I can give a ballpark estimate on the permanent partial disability, but others depend on loss of range of motion, review of MRI’s or operative reports, or neurological testing. Aside from the value of a claim for permanent partial disability benefits, an injured worker’s case may have additional monetary value for wage loss benefits and other workers’ compensation benefits. 

• The workers’ compensation insurance company is not required under the law to offer you a settlement on your workers’ compensation case. One of the most common questions I hear is: “when does the insurer have to offer me a settlement?” The answer is: They don’t. That being said, in many, many cases, we are able to secure a settlement on behalf of our clients. There are a variety of different types of Minnesota workers’ compensation settlements. An injured worker is extremely well advised to speak with an experienced workers’ compensation lawyer before attempting to settle his or her case. There’s simply too much at stake to try to “wing it” when you’re looking at settling your workers’ compensation case, particularly if your injuries are serious, or if you’ve missed significant time from work. 

Even if you have an “admitted” Minnesota workers’ compensation claim, meaning that the insurer is paying your benefits, as a rule, it’s not a matter of IF there will be a dispute on your case—it’s a matter of when. At every turn, the workers’ compensation insurer is looking for ways to minimize the amount of benefits they have to pay on your claim. You need to look out for your best interests!

To learn more about the benefits available to workers’ hurt on the job in Minnesota, call Meuser & Associate at 877-746-5680 or click here to send us an email to schedule a free, no-obligation consultation. 

Overtime and MN Workers' Comp. Wage Loss

For folks who work overtime on a regular basis, missing out on that overtime pay due to a work injury can be a significant hardship. In Minnesota, overtime pay may be taken into account when calculating an injured workers’ average weekly wage. 

In Minnesota, the amount of an injured worker’s wage loss benefits is based on that worker’s average weekly wage (AWW) at the time of the injury. If that injured worker worked overtime, and that overtime pay was “regular and frequent throughout the year,” it should be included in the average weekly wage calculations.

Obviously, what “regular” and “frequent” mean is somewhat subject to interpretation. For example, if you worked ½ an hour of overtime once in the 6 months before your injury, it probably shouldn’t be included in calculating your average weekly wage. If, on the other hand, you worked a minimum of  hours 10 overtime every week in the 6 months before your injury, that overtime pay should probably be included.

In those cases where overtime isn’t quite so regular, there can be disputes as to whether or not it should be included. 

So why is this a big deal?

For folks that worked a substantial amount of overtime prior to their injury, it can mean the difference of hundreds or even thousands of dollars. 

For example, if an individual was paid $15.00 per hour and worked 40 hours per week, every week for six months prior to his or her injury, his or her average weekly wage would be $600.00, entitling him or her to temporary total disability (TTD) benefits of $400.00 ($600.00 (x) 2/3) per week, if that individual is off work as a result of a work injury.

If that same individual worked 10 hours of overtime per week, every week, at time-and-a half ($22.50), his or her average weekly wage would be $825.00 ($600.00 + $225.00), entitling him or her to temporary total disability (TTD) benefits of $550.00 ($825.00 (x) 2/3), if that individual is off work as a result of a work injury. That’s an extra $150.00 per week. If that worker is off work for an extended period of time due to a work injury, that extra $150.00 per week makes a huge difference!

The issue of overtime also comes into play when an injured worker who used to regularly work overtime hours cannot work overtime following a work injury due to his or her work restrictions.

Using the same example as above, if the injured worker cannot work overtime due to his or her work injury, he or she is missing out on $225.00 per week in overtime pay, meaning that he or she is probably eligible for temporary partial disability (TPD) benefits.

Since that worker is earning less money as a result of his or her work injury, the workers’ compensation insurer is required to pay 2/3 of the difference between his or her average weekly wage (AWW), and his or her reduced earnings. In this case, that injured worker would be eligible for temporary partial disability (TPD) benefits of $150.00 per week. Over an extended period of time, that can add up to a lot of money!

Unfortunately, insurance companies frequently overlook overtime pay in calculating an injured workers’ average weekly wage (AWW). 

Again looking at the example above, if the workers’ compensation insurance company failed to include that workers’ overtime pay in calculating his or her average weekly wage (AWW), he or she would be missing out on an additional $150.00 per week on temporary total disability (TTD) benefits if he or she was completely off work, or an additional $150.00 per week in temporary partial disability (TPD) benefits if he or she was no longer able to work overtime following his or her work injury.

Underpayments of wage loss benefits based on an incorrect average weekly wage (AWW) calculation is one of the most common errors or disputes we see in our Minnesota workers’ compensation practice.

In fact, we regularly sit down with injured workers who are currently receiving workers’ compensation benefits, only to discover that the workers’ compensation insurance company has underpaid them hundreds or thousands of dollars. For a free, no-obligation Minnesota workers’ compensation case evaluation, call Meuser & Associate at 877-746-5680 or click here to send us an email. 

MN Workers’ Compensation Wage Loss Maximum and Minimum Rates

Temporary total disability (TTD) benefits are available to injured workers who are completely off work due to a work-related injury in Minnesota. The amount of this benefit is calculated at 2/3 of the employee’s average weekly wage (AWW) at the time of the injury, but is subject to certain maximum and minimum amounts.

For injuries on or before September 30, 1992, the maximum amount of temporary total disability benefits was based on 100% of the Statewide Average Weekly Wage (SAWW).

10-01-86 .............$360.00
10-01-87 .............$376.00
10-01-88 .............$391.00
10-01-89 .............$413.00
10-01-90 .............$428.00
10-01-91 .............$443.00

The minimum amount of temporary total disability benefits for injuries before September 30, 1992 was 50% of the Statewide Average Weekly Wage (SAWW) or gross wage, whichever was less, but no less than 20% of the Statewide Average Weekly Wage (SAWW).

10-01-86 ....$180.00....$ 72.00
10-01-87 ....$188.00....$ 75.20
10-01-88 ....$195.50....$ 78.20
10-01-89 ....$206.50....$ 82.60
10-01-90 ....$214.00…$ 85.60
10-01-91 ....$221.50…$ 88.60

For injuries between October 1, 1992, and September 30, 1995, the maximum amount of temporary total disability benefits was based on 105% of the Statewide Average Weekly Wage (SAWW).

10-01-92 ........... $481.95
10-01-93 ........... $508.20
10-01-94 ........... $516.60

The minimum amount of temporary total disability benefits for injuries between October 1, 1992, and September 30, 1995 was based on 20% of the Statewide Average Weekly Wage or the employee’s actual weekly wage, whichever is less.

10-01-92 ........... $91.80
10-01-93 ........... $96.80
10-01-94 ........... $98.40

For injuries on or after October 1, 1995, the maximum and minimum compensation rates are set by statute:

Maximum:

10-01-95 ............ $615.00
10-01-00 .............$750.00
10-01-08 .............$850.00

Minimum (the amount set by statute, or the employee’s actual weekly wage, whichever is less):

10-01-95 ........... $104.00
10-01-00 ........... $130.00

If you have an injury on or before October 1, 2008, it’s easy to make a mistake as to the correct amount of your compensation rate.

Make sure you receive all the Minnesota workers’ compensation benefits you are entitled to. For a free, no-obligation case consultation, contact Meuser & Associates at 877-746-5680 or click here to send us an email to schedule an appointment with one of our Minnesota workers’ compensation lawyers.

Wage Loss Benefits and Minnesota Workers’ Compensation

If you suffer wage loss as the result of a work-related injury, you may be entitled to wage loss benefits including:

Temporary Total Disability (TTD) Benefits: TTD Benefits are available to employees who are completely unable to work due to a work-related injury.

TTD Benefits are calculated as 2/3 of the employee’s Average Weekly Wage (AWW) at the time of the injury. For injuries that occurred after October 1, 2008, TTD benefits are available for a maximum of 130 weeks. For injuries that occurred between October 1, 1995 and September 30, 2008, TTD benefits are available for up to 104 weeks. Generally, for injuries that occurred prior to October 1, 1995, there is no specific time limit on the receipt of TTD wage loss benefits.

Temporary Partial Disability (TPD) Benefits: TPD Benefits are available to employees who are suffering from a work-related disability, but are able to work at a reduced earning capacity. TPD Benefits are intended to make up for the difference in earnings.

TPD Benefits are calculated as 2/3 of the difference between the employee’s current earnings and the employee’s Average Weekly Wage (AWW) at the time of the injury. For injuries that occurred between January 1, 1984 and September 30, 1992, there is no specific durational limit on the receipt of TPD wage loss benefits. Between October 1, 1992 and present, receipt of TPD benefits is limited to a maximum 225 weeks.

Permanent Total Disability (PTD) Benefits: PTD Benefits are available to employees who are permanently and totally disabled from working as the result of work-related injuries. In 1992, the legislature further defined “permanent total disability:”

“…‘totally and permanently incapacitated’ means that the employee’s physical disability, in combination with the employee’s age, education, training and experience, causes the employee to be unable to secure anything more than sporadic employment resulting in an insubstantial income.” (Minn.Stat. § 176.101(5)(b).)

As of October 1, 1995, an injured employee must meet certain thresholds in order to prove permanent total disability, including:

• The employee has at least a 17% permanent partial disability rating of the whole body.
• The employee has a permanent partial disability rating of the whole body of at least 15% and the employee is at least 50 years old at the time of the injury.
• The employee has a permanent partial disability rating of the whole body of at least 13% and the employee is at least 55 years old at the time of the injury, and has not completed grade 12 or obtained a GED certificate.
  

PTD benefits are calculated as 2/3 of the employee’s Average Weekly Wage (AWW) at the time of the injury. PTD benefits are generally available until the age of retirement. PTD benefits may also be offset against other government disability or old age and survivor benefits, including social security disability benefits, social security retirement benefits, PERA benefits, police and firefighter relief association benefits, and state retirement benefits.

If you’ve been injured on the job, and the insurance company has accepted your claim, the question is not “if” they will discontinue your benefits at some point, but “when.” Even if there is not currently a dispute regarding your workers’ compensation benefits, it is a good idea to speak with a workers’ compensation lawyer to make sure you get all the benefits you are entitled to. Often, people we speak with are hesitant to hire a lawyer when there is no dispute with the insurance company. One thing we always point out is that even if you retain us, if there is no dispute over your benefits, no attorney’s fees are withheld from your benefits. Retaining a lawyer before a dispute arises can substantially reduce the time it takes to initiate your claim when a dispute does arise.

If you are permanently and totally disabled as the result of a work-related injury, in combination with any non-work related health conditions that limit your ability to work, you should speak with a workers’ compensation lawyer. Seldom do workers’ compensation insurance companies voluntarily agree that you are Permanently Totally Disabled, which means that they will probably have to pay you wage loss benefits for a much greater length of time than if you are not permanently and totally disabled.

The experienced workers’ compensation lawyers at Meuser & Associates can help make sure you get the wage loss benefits you are entitled to. Contact us today at 877-746-5680 or click here to send us an email to schedule a free, no-obligation consultation.

Visit Minnesota Workers' Compensation and Personal Injury Law Firm, Meuser & Associates, P.A., at MeuserLaw.com

Calculating Your Average Weekly Wage (AWW)

If you’ve been injured on the job and you’ve made a claim for benefits, you will probably hear the term “AWW” or “Average Weekly Wage.”

Under Minnesota workers’ compensation law, your Average Weekly Wage (AWW) at the time of the work injury is the amount that is used to calculate your entitlement to wage loss benefits.

Minnesota workers’ compensation wage loss benefits include Temporary Total Disability (TTD), Temporary Partial Disability (TPD), and Permanent Total Disability (PTD). The amount of the wage loss benefits you are entitled to is based on your Average Weekly Wage (AWW) at the time of your injury.

For full-time, regularly scheduled workers, Average Weekly Wage (AWW) is normally calculated by adding your total gross earnings for the 26 weeks prior to the date of injury, and dividing that amount by 26 weeks.

If you frequently work overtime hours, your overtime pay should also be included in your Average Weekly Wage (AWW) calculation.

If an employee works more than one job on the date of the injury, wages from all the jobs must be included in calculating the employee’s AWW.

In addition to salary or wages, some other types of monetary benefits should also usually be included in the AWW calculation, such as declared tips or the value of room and board.

For employees who work part time or who work irregular schedules, the AWW calculation is done somewhat differently. First, one adds up the total amount earned by the employee, including vacation and holiday pay, during the 26 weeks prior to the injury. Then one counts the total number of days actually worked during that period, including days of paid vacation and paid holidays. The total amount of gross earnings is then divided by the actual number of days worked to calculate the Average Daily Wage during that time period. The total number of days worked during the 26 weeks prior to the injury is then divided by the number of weeks the employee actually worked during the time period to compute the average number of days worked each week. The average daily wage is then multiplied by the average number of days worked each week to calculate the employee’s Average Weekly Wage (AWW).

Workers’ compensation insurance companies very frequently under-calculate the employee’s Average Weekly Wage (AWW) by excluding wages that should otherwise be included, by failing to include earnings from other jobs, or by employing an incorrect calculation method. Our calculation of an employee’s Average Weekly Wage (AWW) is almost always higher than the insurance company’s calculation. An under-calculation of your AWW reduces the amount the wage loss benefits you are paid, including Temporary Total Disability (TTD), Temporary Partial Disability (TPD), or Permanent Total Disability (PTD). This can amount to a significant underpayment of benefits.

If you think the workers’ compensation insurance company has under-calculated your Average Weekly Wage (AWW), call Meuser & Associates at 877-746-5680, or click here to send us an email to schedule a free consultation.

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