Q:

What determines the amount and duration of workers' compensation payments?

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Quick Answer

The average weekly wage in the previous year determines the amount and length of a worker's compensation payments, notes AllLaw. The date of a worker's injury determines the duration of the compensation payment. The weekly benefits are derived by multiplying two-thirds by the average weekly wage and then multiplying the resulting value by the percentage of disability.

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Full Answer

The benefits rate cannot increase if new maximum benefits get adopted into the law. There are four types of compensation benefits, namely income, medical, burial and death benefits, states Texas Department of Insurance.

Income benefits do replace a portion of the wages a worker loses because of a work-related illness or injury. Examples of income benefits include temporary income benefits (TIBs), supplemental income benefits (SIBs), impairment income benefits (IIBs) and lifetime income benefits (LIBs). Medical benefits pay necessary medical care to treat the worker's work-related illness or injury.

Burial benefits pay for the deceased employee's funeral expenses to the person who covered the expenses. Lastly, death benefits replace a portion of the lost family income for the eligible family members of employees who died while on the job.

In the case of disability, cash benefits are not paid for the first 7 days of the worker's disability unless it extends beyond 14 days, notes the New York State Workers' Compensation Board. A claimant who is partially or totally disabled and is unable to work for more than 7 days will receive cash benefits.

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