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How do workers’ compensation wage replacement benefits work?

On Behalf of | Jul 24, 2015 | Firm News, Workers' Compensation |

Workers compensation benefits are a vital part of an injured worker’s ability to pay for medical care, get back on his or her feet following an injury and afford their living expenses while unable to work. Eventually, the goal is for the worker to return to work and continue life as before, but that may take time. What, then, can a worker expect to receive in terms of wage-replacement benefits while unable to perform the duties of his or her job?

In most cases, a worker will be able to receive either temporary total wage replacement benefits or temporary partial wage replacement benefits. Temporary total wage replacement serves to provide an amount of money to replace the full amount of wages while the employee is completely unable to work. Temporary partial will replace a worker’s wages if he or she cannot perform her normal job duties but can still do some amount of work.

It is important to realize that even temporary total benefits will not serve to replace the full amount of a worker’s previous wags. However, total wage replacement benefits might be more money than the worker initially believes. That is because workers’ compensation wage replacement benefits are not taxed under federal income tax laws. Therefore, one must look at post-tax income for comparison purposes. When viewed in this light, a worker’s wage replacement benefits might be very close to his or her previous salary.

At the Dickerson & Smith Law Group, we are passionate about Virginia workers’ rights. Our skilled attorneys advocate aggressively to ensure that workers receive the maximum amount of workers’ compensation benefits they are eligible to receive. We offer free initial consultations to potentially new clients, and our clients will not pay a dime in legal fees unless and until our firm obtains an award of financial benefits on their behalf.

Source: Findlaw, “Workers comp benefits and returning to work,” accessed July 24, 2015

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