Workmans’ comp insurance in Minnesota covers injured employees who sustain injuries in the workplace. The benefits part and parcel of workers’ compensation include medical coverage and wage-loss benefits.
As Minnesota is a no-fault state when it comes to work-related injuries, employers do pay for work-related injuries. The benefits are paid for by an employer’s workmans’ comp insurance provider in the state.
While on work restriction, employees can continue to receive workers’ compensation benefits. However, there is a limit to the time these benefits are available to injured employees. For the most part, the maximum amount of time depends on the type of workers’ compensation an employee receives. This is also the case for employees who sustain permanent injuries.
Find out more about when workmans’ comp insurance in Minnesota stops paying injured employees.
It Comes Right Down to the Type of Workers’ Compensation Benefit
The time frame for which an injured employee receives worker’s compensation from the employer’s workmans’ comp insurance in Minnesota depends on several factors. For the most part, the benefits cease when an employee returns to work after making a full recovery.
A full recovery is a must for the monetary benefits to stop. It is still possible for an employee to continue receiving benefits following a return to work. In the case of some types of workers’ compensation benefits, an employee can take a lower-paying designation. Whilst on a lower-paying job, an employee can continue to receive a part of his or her pre-injury weekly wages.
Another important determinant is the type of workers’ compensation an employee receives. Different types of workers’ compensation benefits will have different duration caps.
The type of workers’ compensation an employee receives is dependent on the impairment or permanency rating. Physicians need to assign a permanency rating and report it to the employer. The employer then reports the permanency rating to the workmans’ comp insurance provider in Minnesota.
The insurance provider will then arrange payments to the employee based on the impairment or permanency rating assigned. The four possible types of workers’ compensation benefits are as follows:
Temporary partial disability (TPD)
Temporary total disability (TTD)
Permanent partial disability (PPD)
Permanent total disability (PTD)
Other benefits can include dependency benefits. Within the classification of dependency benefits are death benefits and unpaid PPD benefits.
Temporary Partial Disability (TPD): After 275 Weeks
A temporary partial disability rating is given to employees who sustain injuries that require treatment. The injuries sustained are not permanent, allowing the employee to make a 100% MMI (maximum medical improvement). Because the injuries are partial and reversible, employees on TPD can resume work — though with a lower-paying designation.
TPD benefits pay ⅔ of an employee’s weekly pre-injury wages. The maximum amount of time an employee can receive TPD benefits is 275 weeks.
The benefits can start as soon as the employer submits a wage verification to the workmans’ comp insurance provider. Oftentimes, this wage verification is not necessary, especially if the wages of the employee before the injury are consistent.
Temporary Total Disability (TTD): After 90 Days to 130 Weeks
At times, an injury can be severe enough to cause injuries that prevent an employee from working. In such situations, workmans’ comp insurance in Minnesota will cover temporary total disability (TTD) benefits.
TTD benefits are calculated by taking two-thirds of the employee’s pre-injury weekly wages. The resulting amount will be the benefit payable to the employee while he or she is recovering. For example, if an employee earned a weekly wage of $1,000 before being injured, $667 will be the benefit due. This amount is what the injured employee will receive weekly.
TTD benefits continue for up to 130 weeks following the injury. In some cases, the benefits can cease within 90 days, especially after a physician declares that the employee has reached MMI.
There are other situations in which TTD benefits can stop. These are:
When the employee leaves the company or his or her line of work for reasons unrelated to the injury
If the employee refuses work that is accompanied by retraining or rehabilitation
The employee returns to work
After the benefits have been paid over the 130-week period
Permanent Partial Disability (PPD): Depends
Permanent partial disability (PPD) benefits are awarded to employees who have sustained permanent injuries. The injuries must result in the loss of function of a body part. The impairment rating should not exceed 100% following the injury of one body part.
Workmans’ comp insurance in Minnesota pays PPD benefits that are not based on computation. Rather, Minnesota’s statutes on PPD benefits determine the amount payable.
This amount can either be paid in a lump sum or installments. If the payment is to be made in installments, the PPD benefits cease as soon as the insurer pays the full amount.
Permanent Total Disability (PTD): Age 72; Can Be Beyond 72 for Injuries Sustained After 67
When an employee sustains an injury that will prevent future employment, workmans’ comp insurance in Minnesota awards permanent total disability (PTD) benefits. PPD is for employees who have sustained injuries that lead to the following:
Loss of limbs
Complete and permanent paralysis
Any form of sensory loss
The amount payable equals two-thirds of the employee’s weekly pre-injury wages. Added to this is a minimum PTD benefit that is at least 65% of Minnesota’s average weekly wage for employees. In short, PPD amounts to two benefits, and these are payable until the employee reaches 72 years of age.
However, if an employee sustains the injury at the age of 67 or older, PPD benefits can continue for another five years. For example, if an employee loses both arms in an accident at 68, PTD benefits will continue to provide coverage until the employee’s 73rd birthday.
Key Takeaway: Workmans’ Comp Insurance in Minnesota Stops Depending on the Type of Injury
There is no hard and fast rule for when benefits can stop. Benefits end depending on the type of injury.
To learn more about the nuances of workers’ comp in Minnesota, contact an experienced workmans’ comp lawyer. Get in touch with us now at Osterbauer Law.