The New York Workers’ Compensation Board (NYWCB) announces, effective 7/1/10, the maximum weekly rate for compensation payments will increase from $600/week to $739.85/week – a rise of 23.3%.
Prior to 2007, there was no provision for automatic annual raises. After changes that year, the law now provides for annual raises based on a certain percentage of the state average weekly wage. While that leaves open the possibility for a drop in rates during a severe recession, no one in government is openly discussing that actually happening. A “remedial” bill would, without doubt, be passed to prevent such an occurrence.
The rise in the maximum rate will not affect those earning $900/week or less. The impact on claims where workers earn more than $900 will be significant.
The largest amounts of money on a serious injury claim are associated with the “schedule” and “non-schedule” permanent injuries. The distinction between the two can be fuzzy, permitting an attorney to argue for one, or the other, depending on what produces the higher award. In general, workers who lose little time argue for a “schedule” injury; those with substantial lost time argue for “non-schedule.”
If a worker earning $1,100/week before an injury occurring after 7/1/10 returns to work for more than $935/week the maximum amount of “non-schedule” benefits would be $37,125, or less. However, if the worker were to receive a maximum “schedule” benefit for, say, 20% loss of use of an arm, the amount would be $45,760 – 23.5% plus higher.
It can be anticipated employers with a substantial percentage of their work force earning over $900/week will be subject to greater attention by disability lawyers. (workersxzcompxzkit)
However, the downside for having employees not return to work for substantial wages will be far greater. An employee out of work, during a compensation claim, can receive as much as $388,421 with the new maximum. Therefore, the disputes over “schedule” versus “non-schedule” should not blind an employer to the necessity of a return-to-work program as a means of containing costs.
Author Attorney Theodore Ronca is a practicing lawyer from Aquebogue, NY. He is a frequent writer and speaker, and has represented employers in the areas of workers' compensation, Social Security disability, employee disability plans, and subrogation for over 30 years. Attorney Ronca can be reached at 631-722-2100
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