How Do I Get Paid While I am Off Work? Understanding Alabama Workers Compensation Benefits

How Do I Get Paid While I am Off Work? Understanding Alabama Workers Compensation Benefits

If you have been injured at work and your doctor has taken you off work, one of the first questions you are probably asking is “How am I going to pay my bills if I can’t work?”

Fortunately, Alabama’s Workers’ Compensation Act provides benefits designed to replace a portion of the wages lost while you are recovering from a work-related injury.  Most injured workers simply refer to these payments as workers’ compensation checks, but attorneys and insurance adjusters often use terms such as Temporary Total Disability (TTD) and Temporary Partial Disability (TPD) benefits.

Understanding when these benefits begin, how they are calculated, and when they end can help you better understand your rights after a workplace injury.

Workers’ Compensation Is About More Than Medical Treatment

Most workers know that workers’ compensation is supposed to pay for medical treatment related to a job injury, but many workers do not realize is that Alabama’s Workers’ Compensation Act also provides income benefits designed to replace a portion of the wages lost while recovering from a work injury.  These benefits are often referred to as wage replacement benefits because they help support injured workers when they are unable to earn their normal income.

When Do Workers’ Compensation Checks Begin?

One of the most common misconceptions is that workers’ compensation checks begin immediately after a worker is injured and unable to work; that is not usually the case.

In Alabama, there is a waiting period before Temporary Total Disability benefits become payable. Generally speaking, a worker must be disabled from work for more than three days before TTD benefits become due.  If the disability continues for more than twenty-one days, the worker is typically entitled to compensation for the initial waiting period as well. (see Ala.Code)

As a practical matter, this means many injured workers do not receive their first workers’ compensation check immediately after an injury occurs.  The purpose of the 3-day waiting period is (1) to give the employer time to confirm the injury, (2) perform an initial investigation, (3) inform their workers’ comp insurance carrier of the reported injury and (4) begin authorizing medical treatment, calculate the injured workers’ 52-week average weekly wage statement and wage replacement benefits.

What Are Temporary Total Disability (TTD) Benefits?

Temporary Total Disability benefits, commonly called TTD benefits, are paid when an injured worker is temporarily unable to work because of a compensable workplace injury.

Generally, TTD benefits are payable when:

• The worker has suffered a covered job injury;
• The Authorized Treating Physician has taken the worker completely off work or given them medical restrictions which the employer cannot accommodate; and
• The worker remains in the recovery phase of treatment.

TTD benefits are generally paid at a rate equal to two-thirds (66 2/3%) of the worker’s Average Weekly Wage, subject to the compensation rates established by Alabama law.

Example:

If a worker earned $900 per week before the injury, their TTD benefit would generally be approximately $600 per week. ($900 x 2/3 = $600 in ttd benefits).

What Are Temporary Partial Disability (TPD) Benefits?

Not every injured worker is completely unable to work; sometimes a worker is released to return to work with restrictions but earns less money than before the injury.  In those situations, Temporary Partial Disability (TPD) benefits may be available.

TPD benefits are intended to compensate an injured worker for part of the difference between:

• what they earned before the injury; and
• what they are able to earn while working under restrictions.

Example:

A worker earning $900 per week before the injury returns to restricted-duty work earning only $600 per week.

In that situation, TPD benefits may be payable to compensate for a portion of the lost wages. For Example: $900 – $600 = $300 x 2/3 = $100 in tpd benefits.

Is There a Maximum TTD Rate?

Yes. Alabama law establishes a maximum weekly compensation rate that applies to workers’ compensation benefits.

This means that even if two-thirds of your Average Weekly Wage exceeds the statutory maximum, your weekly TTD check cannot exceed the maximum compensation rate in effect on your date of injury.

The maximum rate is adjusted periodically, so the amount varies depending on when the injury occurred.

Is There a Minimum TTD Rate?

Yes-Alabama law also provides a minimum weekly compensation rate for many injured workers.  If two-thirds of your Average Weekly Wage would otherwise result in a very small weekly benefit, the minimum compensation provisions may apply; however, there are exceptions and limitations, particularly for workers with very low earnings before the injury.

Because the minimum and maximum rates change over time, it is important to verify the compensation rates that were in effect on the date of your accident.

Why Is My Workers’ Compensation Check Less Than My Regular Paycheck?

This is one of the most frequently asked questions in workers’ compensation claims. Workers’ compensation benefits are generally not intended to replace 100% of lost wages. Instead, Alabama law provides a formula that generally pays approximately two-thirds of a worker’s Average Weekly Wage. As a result, most workers receive is generally less than their normal paycheck while receiving workers’ compensation benefits, even though their mortgage carrier and Alabama Power expect 100% of their bills to be paid monthly.

When Do TTD and TPD Benefits End?

Temporary disability benefits are intended to provide income during the recovery process, they do not continue forever.

TTD or TPD benefits generally end when:

• You return to work at your regular wages;
• Your physician releases you to work without restrictions;
• You reach Maximum Medical Improvement (MMI); or
• Other circumstances arise affecting your entitlement to benefits.

What Is Maximum Medical Improvement (MMI)?

Maximum Medical Improvement, commonly referred to as MMI, is the point at which your physician believes your condition has improved as much as it is likely to improve with medical treatment.  MMI does not mean you are fully recovered, it simply means that your condition has stabilized.

Once MMI is reached, temporary disability benefits generally end and attention turns to whether the worker has suffered any permanent disability as a result of the injury.

What Happens After My Temporary Benefits End?

Reaching MMI does not necessarily mean your workers’ compensation claim is over. Depending upon the circumstances, issues that may still need to be addressed include:

• Permanent Partial Disability (PPD) benefits;
• Permanent Total Disability (PTD) benefits;
• Future medical treatment;
• Vocational issues;
• Settlement discussions; and
• Ongoing medical care.

A workplace injury can create uncertainty about both your health and your finances. Understanding how Alabama workers’ compensation benefits work can help reduce some of that uncertainty.  Workers’ compensation is designed not only to provide medical treatment but also to provide income benefits while an injured worker is unable to earn their normal wages.

If you have questions about Temporary Total Disability benefits, Temporary Partial Disability benefits, Maximum Medical Improvement, or any other aspect of an Alabama workers’ compensation claim, it may be helpful to speak with an attorney experienced in representing injured workers.

If you have suffered a job injury and you have questions about your rights and benefits under Alabama’s workers compensation laws -don’t hesitate to contact and speak with one of the experienced Alabama Workers Compensation and Social Security Disability attorneys at Powell and Denny today for a free consultation. Appointments are available in person, or virtually via Zoom if more convenient.  Powell and Denny would appreciate the opportunity to help.  And remember, there is no fee unless you win.

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