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Salaried Employee Example: Workers’ Compensation Claim

Day 1-3
Jane Doe, who works for the district 40 hours a week (8 hours a day, five days a week in a 12-month assignment) is injured at work at the end of her work day on January 4th. As a result of the injury, she cannot work January 5th, 6th or 7th. She is not paid for the three days she missed work due to a workers’ comp. law.

After the First 3 Days

Jane continues to be off work from January 10th through the 14th as a result of her physician’s assessment that she should not be working. As a result, she receives Temporary Total Disability (TTD) for five days for sixty-six and two-thirds (.6667) of her gross pay. (The sixty-six and two-thirds of her gross pay is up to, but cannot exceed, a state-mandated cap set each year by the legislature.) If Jane has adequate paid leave (usually sick leave) with the District, she will also receive a regular paycheck from the District, minus the amount received in her TTD check.

The amount she receives from the insurance carrier is not taxed. The amount received from the District will be taxed as a regular paycheck.

Jane’s sick leave bank will also be credited during the time she receives time loss checks, based on the amount of the checks. If Jane’s annual salary is $33,137.00, here is how the calculations for crediting her sick leave bank will be done:

  1. $33,137.00 (annual salary) divided by 261 (assignment days) equals $126.96 (daily rate of pay)
  2. $423.22 (TTD check) divided by 126.96 (daily rate of pay) multiplied by 8 (the number of hours worked each day) equals 26.67 hours.
  3. 26.67 hours will be credited back to Jane’s sick leave bank.

The Workers’ Comp. Carrier Has 90 Days to Accept or Deny Your Claim
On January 15th, Jane is released by her physician to return to work for three hours a day in a temporary light duty position. During this time she is paid by the District for three hours a day for an average weekly gross wage of $238.05 (3 hrs. a day x 15.87 an hr. x 5 days a week).

In addition, she will receive a Temporary Partial Disability (TPD) payment from the District’s workers’ comp. insurance carrier for the 5 hours a day her physician has said she cannot work. Her TPD check will be $158.71 (.6667 x her gross pay of $238.05). Remember, the gross pay amount from the District is subject to taxes; the TPD payment is not.

If Jane has remaining sick leave, her sick leave bank will be credited as described above. Since Jane is now working part-time in a light duty position, the credit to her sick leave bank will be based on the amount of the time loss checks she receives for the three hours a day she is unable to work. The same formula used above in the example under “After the First 30 Days” will be applied to determine her sick leave credits.