Insurance companies routinely set the compensation rate (the amount you are paid) for an injured worker by relying upon the workers’ income records from two years prior to the injury. It’s legal, but is it fair?
The answer is: it may not be fair to you. And you may be entitled to seek an increase in your benefits.
But Is It Fair?
When is it not fair to look at past income? When the injured worker’s current income or future income is greater.
That’s because the purpose of disability benefits is to compensate the injured worker for the wages he is losing while he is disabled, which can be more than he was making in the past two years.
A Recent Case: Injured Worker Received an Increase in Compensation Rate
Recently, the Alaska Workers Compensation Board issued a decision in the case of Geerhart v Yukon Kuskokwim Health Corp, Dec. 23-0020 (April 4, 2023). The employee was a nurse who was injured while lifting a patient. She had just completed nursing training the year before. While she was in school, she didn’t work one year, and worked as a flagger one summer, earning significantly less than she earned as a nurse.
Alaska National Insurance Company used her flagging income to calculate her disability benefits. As a result, it paid her $308 per week, far less than she lost when she was off work recovering from her injuries.
After a claim was filed, the insurance company, represented by Jeffrey Holloway, voluntarily raised the compensation rate to $1,1125.25 per week, which still did not reflect her loss of income.
The Board ruled that both the $308 rate and $1,1125.25 rate were irrational. It increased the compensation rate to the legal maximum, $1298 per week.
The Board ruled:
There is no better evidence of what Employee lost than actual wages she was making when she became disabled and continues to make, as she still works for the Employer.
Here’s a link to the case on the Board’s website:
Are Your Disability Benefits Underpaid?
Find out!
Keenan Powell has practiced Workers Compensation law in the State of Alaska for 40
years and has dedicated her practice to Workers Compensation representing injured Alaskans handling hundreds of cases. www.keenanpowell.com.
All consultations are free. To make an appointment, use the contact form on this website or call: 907 258 7663.