Temporary disability benefits

What are temporary disability benefits?

Temporary disability benefits are workers' compensation payments replacing a portion of lost wages while an injured worker is unable to work and still actively recovering.

These benefits typically begin after a brief waiting period and continue until the worker either returns to work or reaches maximum medical improvement, at which point a different type of benefit determination applies going forward.

The benefit amount is calculated as a percentage of the worker's average weekly wage, subject to both a minimum and a maximum benefit amount set by statute and adjusted periodically.

This category is distinct from permanent disability benefits, which address lasting impairment remaining after the recovery and treatment period has concluded.

What conditions must be met to receive these benefits?

Several requirements generally apply to establish and maintain eligibility.

• The injury must be work related and properly reported to the employer
• A treating physician must certify inability to perform the job duties
• The worker must be unable to earn wages because of the injury during this period
• Benefits continue only while actively recovering, not indefinitely
• Return to any work, even modified or reduced duty, can affect ongoing eligibility

How is the benefit amount actually calculated?

The base calculation starts from the worker's average weekly wage before the injury occurred, then applies the statutory percentage to determine the weekly benefit.

Both a minimum and a maximum weekly benefit amount apply regardless of actual wages, meaning very high earners will not receive full wage replacement even under this formula.

These statutory minimum and maximum figures are adjusted periodically, so the specific current amounts should be confirmed directly with the Division of Workers' Compensation rather than assumed from older information.

What happens when temporary benefits end?

Either the worker returns to work, ending the need for wage replacement entirely, or the worker reaches maximum medical improvement, meaning further significant medical improvement is not expected.

At that point, if permanent impairment remains, the case transitions to an evaluation for permanent partial disability or total disability benefits instead, which involve an entirely different calculation and process.

This transition point is often when disputes arise, particularly around whether maximum medical improvement has genuinely been reached or whether further active treatment remains appropriate first.

Common questions

How much of my actual wages will these benefits replace?

A statutory percentage of your average weekly wage, subject to minimum and maximum amounts that are periodically adjusted, so full wage replacement should not generally be expected.

What if my employer disputes that I cannot work?

This is a common point of dispute in workers' compensation cases, and your treating physician's certification of your specific work capacity is central to resolving it.

Can I work part time while receiving these benefits?

This depends on the specific circumstances and your physician's certified restrictions, since any earned wages during this period can affect your ongoing benefit eligibility and amount.