Types of Permanent Disability
Workers' compensation distinguishes between two types of permanent disability:
Permanent Partial Disability (PPD): You have lasting impairment but can still work in some capacity. This is the most common outcome. Benefits may be scheduled (based on body part affected) or unscheduled (based on overall earning capacity loss).
Permanent Total Disability (PTD): Your injuries prevent you from performing any substantial gainful employment. PTD provides ongoing benefits, often for life, at a percentage of your pre-injury wages.
How Disability Ratings Are Determined
Your permanent disability rating is determined after you reach "Maximum Medical Improvement" (MMI) - the point where your condition has stabilized and further significant improvement isn't expected.
The rating process typically involves:
- Medical Evaluation: A physician assesses your permanent impairment
- Rating Guidelines: Most states use the AMA Guides to the Evaluation of Permanent Impairment
- Work Capacity: Assessment of what work you can still perform
- Adjustment Factors: Age, occupation, and future earning capacity may affect benefits
You have the right to dispute the rating through an independent medical examination.
Calculating Permanent Disability Benefits
Benefit calculations vary by state but generally consider:
- Disability Rating Percentage: Your assessed level of impairment
- Average Weekly Wage: Your earnings before the injury
- Benefit Rate: State-mandated percentage of AWW (often 2/3)
- State Maximums: Caps on weekly benefits and total payments
- Duration: Weeks of benefits based on disability type and percentage
Example: A 20% permanent partial disability rating might entitle you to payments for 80 weeks at 2/3 of your average weekly wage, subject to state limits.
Scheduled vs. Unscheduled Injuries
Many states use a "schedule" that assigns specific benefit amounts to particular body parts:
Scheduled Injuries: Loss or impairment of specific body parts (arm, leg, hand, foot, eye, ear) receives set compensation regardless of impact on earning capacity.
Example scheduled benefits (vary by state):
- Loss of arm: 200-500 weeks of benefits
- Loss of hand: 150-400 weeks
- Loss of leg: 175-450 weeks
- Loss of eye: 100-250 weeks
Unscheduled Injuries: Back injuries, head injuries, and internal organ damage are evaluated based on their impact on your ability to work and earn wages.
Lump Sum Settlements
Instead of receiving weekly benefits over time, you may negotiate a lump sum settlement for your permanent disability. Considerations include:
Advantages:
- Receive money immediately
- No ongoing disputes with the insurer
- Can invest or use funds as needed
- Certainty about total compensation
Disadvantages:
- May receive less than full future benefits
- Could lose ongoing medical coverage
- No additional payments if condition worsens
An attorney can help evaluate whether a lump sum settlement serves your best interests and negotiate fair terms.