Risk Management in Wage Loss States

I hope this will assist those who are new to the RiskIn Michigan, there is no time limit on indemnity
management field with cases in wage loss states.payments for permanent partial disability. In New
The following states have high wage loss exposureHampshire the limit is 262 weeks (which includes the
(indemnity payments) after a case has reachedweeks the injured worker was considered
Maximum medical improvement. Michigan (MI), Illinoistemporarily disabled.) In Maine and Louisiana the limit is
(IL), Pennsylvania (PA), Louisiana (LA), Maine (ME),10 years or 520 weeks. In New York Permanent
New Hampshire(NH) and New York (NY).Partial Disability cases are eligible for indemnity
The following states have no wage loss exposure orpayment to continue depending on injury from a
indemnity payments once a case has reached MMI:minimum of 225 weeks to a maximum of 525 weeks.
Alabama, Arizona, Arkansas, Colorado, Connecticut,Pennsylvania has a limit of 500 weeks for Permanent
Florida, Mississippi, Missouri, New Jersey andPartial Disability indemnity payments.
Tennessee. The State of Florida has "impairmentIn states where there is a continuance of indemnity,
benefits" but no wage loss payments. Theseor wage loss, payments required from the Employer
payments are determined based on the injury, andor Insurer, there is also the obligation on the part of
continue for a specified amount of time. They're notthe injured worker to actively pursue reemployment
affected by reemployment of the injured worker inand/or to make an effort to obtain work. When an
any way. The Injured worker receives the sameinjured worker returns to work, depending on the
impairment benefit, whether they're working or not.pay variance, the employer may be obligated to
Some states have wage loss exposure limited by thecontinue to make up the difference between the
rating of the permanent disability or the percentageoriginal wage earned when the employee was injured
of disability. Most of these charts are available onand the new wage. This also varies by state. But, the
each states Workers' Compensation Board website.insurer can apply to the Workers' Compensation
A list of these boards by state with links to theirboard to discontinue payments if they determine that
sites and contact info can be found at the end ofthe Injured worker is not actively pursuing
this artile.reemployment.