If an injured worker in Vermont is unable to work or must reduce their hours because of a work injury, the employer or its insurance carrier must pay temporary disability benefits during the recovery period. Vermont law provides for two types of temporary disability benefits:

• Temporary Total Disability (TTD) benefits are paid when the injury completely prevents the worker from performing any work.

• Temporary Partial Disability (TPD) benefits apply when the worker can return to work but is unable to earn the same amount as before due to their injury.

Why You May Need a Lawyer to Secure All of Your Temporary Disability Benefits

Whenever a worker misses more than three days of work due to an injury, the employer or insurance carrier must determine the worker’s Average Weekly Wage (AWW) prior to the injury and report it to the Vermont Department of Labor. From this figure, the carrier or employer calculates the worker’s Compensation Rate.

Jarvis & Modun often sees insurance adjusters and employers make mistakes in calculating both the Average Weekly Wage and the Compensation Rate. Frequently, workers don’t even realize a mistake has been made until they come to us. Common errors include:

• Mistakes in calculating the Average Weekly Wage

• Failure to include income from concurrent employment when calculating the Average Weekly Wage

• Errors in calculating the Compensation Rate

• Failure to pay dependent benefits

• Failure to apply Cost of Living Adjustments

If the carrier or employer underpays Temporary Disability benefits due to errors in these calculations, the worker’s financial losses can compound over time. Permanent Disability benefits are also based on these figures, making accuracy crucial.

Jarvis & Modun carefully reviews these calculations to ensure they are done correctly every time.

Mistakes in Calculating a Worker’s Average Weekly Wage

Many rules govern the calculation of the Average Weekly Wage, and it’s easy for insurance carriers or employers to make mistakes if they don’t pay close attention. Sometimes they average the wrong weeks, include weeks with low wages that should be excluded, or exclude weeks with high wages that should be included. They may also fail to include bonuses, room and board, or other “extras” that must be part of the calculation.

At Jarvis & Modun, we know these rules well and carefully review the carrier’s or employer’s calculations to ensure accuracy. Getting it right from the start pays off in the long run.

Failure to Include Concurrent Employment

If you worked for two or more employers during the 26 weeks before your work injury, wages from all employers likely must be included in your Average Weekly Wage. Although only the carrier or employer where you were injured pays your Workers’ Compensation benefits, an injury at one job often affects your ability to earn across all your employment.

Even if you lose work time with only one employer, it’s important to include wages from all concurrent employment in calculating your Average Weekly Wage. If you suffer a permanent injury, your Permanent Disability Benefits are based on your full Average Weekly Wage—not just a portion.

If your carrier or employer fails to include wages from concurrent jobs, your Permanent Disability award will be lower, and you will receive less money overall.

If you’re unsure whether concurrent employment wages should be included in your Average Weekly Wage calculation, call Jarvis & Modun at (802) 540-1030 for a free consultation.

Mistakes in Calculating Your Compensation Rate

Not only does Jarvis & Modun find mistakes by insurance adjusters and employers in calculating Average Weekly Wages, but we also frequently see errors in calculating Compensation Rates.

Typically, an injured worker’s initial Compensation Rate for Temporary Total Disability (TTD) is two-thirds of their Average Weekly Wage. However, this amount is subject to minimum and maximum limits set by the Vermont Department of Labor. While carriers and employers rarely err when applying the maximum rate, mistakes with the minimum rate are common. Sometimes they fail to apply a minimum rate altogether and simply pay two-thirds of the Average Weekly Wage—even if that amount is far below what the worker needs to live on. Other times, they apply the wrong minimum rate. These errors disproportionately harm low-wage earners, as minimum rates are intended to create a floor that ensures workers receive compensation sufficient to cover basic living expenses.

If you believe your Compensation Rate may be too low, give us a call.

Mistakes in calculating the Compensation Rate for Temporary Partial Disability (TPD) are less common, likely because the calculation is simpler. When an injured worker can return to work but at reduced capacity, they are entitled to two-thirds of the difference between their pre-injury and post-injury earnings. Even though this calculation is more straightforward, errors in determining the Average Weekly Wage can still negatively impact Temporary Partial Disability benefits.

Failure to Pay Dependent Benefits

Every injured worker in Vermont is entitled to receive a $20 weekly supplement to their Temporary Total Disability (TTD) benefits for each dependent child under the age of 21. Occasionally, the employer or insurance carrier may be unaware of dependent children and fail to pay this benefit as required.

Some clients of Jarvis & Modun have been unsure whether their children qualify them for this dependent benefit. If you have questions about your eligibility for dependent benefits, please contact us for assistance.

Failure to Apply a Cost-of-Living Adjustment

As of July 1st each year, most Vermont workers receiving disability benefits are entitled to a Cost-of-Living Adjustment (COLA). The COLA increases the worker’s Compensation Rate to help keep pace with inflation. Insurance adjusters and employers often overlook this adjustment. As your attorneys, part of our job is to ensure you receive COLAs promptly and accurately.