The California workers’ compensation system provides a method for employees who have sustained work-related injuries to receive compensation as result of their industrial injuries. While employers will always take measures to attempt to reduce the likelihood that their employees will be injured, the workers’ compensation system provides relief for the workers and a degree of protection for the employers. During the process, the injured worker will receive medical care and a doctor will determine the type of disability the worker has. One of these options is temporary total disability.
An employee will be considered to have a temporary total disability where the employee’s primary treating physician has certified that he or she is unable to work as a result of the injury. To be considered totally disabled, the medical provider must determine that the injured employee is unable to return to work at all, including a modified work schedule, due to the work-related injury. Although a permanent injury is defined as one that is “permanent and stationary,” there is less statutory guidance as to what constitutes a temporary injury. California court have described temporary injury as an injury that can reasonably be expected to be cured or materially improved with proper treatment. If an employee is temporarily unable to work and is determined to be temporarily permanently disabled, then he or she may apply for the basic benefit that is usually available to temporarily disabled workers, which is called “temporary disability indemnity.” This type of benefit is intended to replace the injured worker’s regular wages, which he or she would have continued to receive but for the injury. This is in contrast to permanent disability, which is intended to compensate for diminished future earning capacity. California labor code 4653 provides that temporary total disability compensation is calculated at “two thirds of the average weekly earnings during the period of such disability.” Given the fact that workers’ compensation benefits are not subject to income tax, the worker’s take home from workers’ compensation would likely be approximately comparable to his or her after tax take home from regular employment. However, the labor code does provide caps to the amount and duration of temporary total disability benefits, which could be up to 104 weeks, depending on the injury.
If you have questions about the workers’ compensation system, let us answer them. Contact us for a consultation to talk about how your business will be impacted by a claim.