How Permanent Partial Disability Benefits Are Calculated
Workers’ compensation is paid to employees that have suffered from injuries or occupational diseases related to their job. Permanent Partial Disability (PPD) claims are among the most common type of workers’ compensation. They involve compensation for individuals who haven’t been totally disabled but who can only return to modified or lower-paying work due to some form of lasting impairment. Workers’ compensation— including permanent disability in Oregon and elsewhere—is calculated on a state-by-state basis, as opposed to federally administered disability programs. Therefore, the amount you receive depends on your state and whether the loss is scheduled or not.
When it comes to work-related injuries to certain body parts (legs, arms, hands), most states calculate personal disability payouts based on a statutory schedule of losses. This schedule includes information about the number of weeks of compensation that a worker should receive based on their particular injury.
Many common workplace injuries are not listed on a schedule, including injuries to internal organs and occupational diseases such as carpal tunnel. In these cases, there are four common strategies used to determine the amount of compensation:
The Impairment-Based Approach
The Loss-of-Earning-Capacity Approach
The Wage-Loss Approach
The Bifurcated Approach