Knowledgebase-Questions Related to Workers' CompensationFrom: Stokes, Richard L
Sent: Friday, April 20, 2012 3:18 PM
Subject: RE: Town of Centerville / W/C Question
You have posed a number of questions. Let me try to address them.
Employees who have suffered a compensable work injury are entitled to receive the following:
Weekly benefits are paid if the authorized treating physician finds that the employee is unable to work due to the injury and misses more than seven days of work. If the employee is out more than 14 days, benefits will be paid from the first day the physician finds that the employee is unable to work due to the injury.
If the employee’s injury is determined to be compensable and the employee is unable to work, temporary benefits will be paid. Compensation is not paid by this division, but by the employer's insurance carrier, unless the employer is self-insured. If the employer is self-insured, compensation is paid directly by the employer or its representative.
The Workers' Compensation Law sets limits on the maximum and minimum amounts of weekly compensation paid to injured employees. The average of the employee's gross wages will determine the weekly rate. The amount of the benefits is calculated using two-thirds of the employee's average weekly wage over the 52 weeks prior to the injury.
50-6-207 provides that the city “can continue to compensate an injured employee at the employee’s regular wages or salary during the employee‘s period of temporary total and temporary partial disability. The payments shall not result in an employee receiving less than the employee would otherwise receive for temporary disability benefits under this chapter”. This means that the city can require the employee to use any unused Sick Leave, Annual Leave or Comp time to make up the difference between the WC check and the employee’s regular pay. You policy suggest that the City will do this for up to 60 days. After that, the employee only gets his/her WC check.
An employee without sufficient leave to cover the difference would then only receive his/her WC check.
The WC check from the state is not taxed. The portion that the city supplements is taxable. The City still needs to deduct taxes on the difference paid between the city and WC.
I hope this information is helpful. Feel free to contact me if you have questions or I can be of any further assistance.
Richard L. Stokes, IPMA-CP, PHR
Office Manager/Human Resources Consultant
Executive Director - TN Chapter IPMA-HR
The University of Tennessee
Municipal Technical Advisory Service
226 Capitol Blvd. Bldg., Suite 606
Nashville, TN 37219
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