Employer

Work Comp Basics

In the State of Indiana, most employers are required to provide statutory worker’s compensation benefits for their employee’s.  The employer must either purchase insurance or apply to and be qualified by the Worker’s Compensation Board of Indiana as a self insurer.

Below are some helpful terms which may help you with the worker’s compensation process. These terms have been taken from the worker’s compensation handbook and the full listing may be accessed at http://www.in.gov/wcb/2331.htm

What do all those acronyms and phrases mean?

Act:  The Indiana Worker’s Compensation is found at Indiana Code, Title 22 and contains the statutory basis for the worker’s compensation system.

AWW - Average Weekly Wage.  This is calculated based on an average of the 52 weeks of income prior to the injury.  In Indiana there is a maximum average weekly wage.  An employee’s disability compensation is calculated based upon 66-2/3% of the average weekly wage up to the maximum average weekly wage.

Benefits.  This is a general term and includes the medical treatment provided by the employer and the compensation which the employee receives for disability or impairment.

Compensable Claim.  A claim where there has been an unexpected personal injury or death which was caused by a risk of the employment and which occurred at a time and place where the employee was required to be by the employment.  

Dependent.  There are three classes of dependents who may be entitled to compensation following the death of an employee.  Those classes are presumptive dependent, total dependent in fact and partial dependent in fact.

Disability.   Disability is the inability to work.     

IC - Independent Contractor.  A worker who is not an employee and meets the definitions for an independent contractor.

IME - Independent Medical Examination.  An examination arranged by the Worker’s Compensation Board to determine whether an employee is able to return to work or requires more medical treatment.

MMI - Maximum Medical Improvement.  The point at which an injured employee’s medical condition has stabilized and is not getting better or worse.

Ombudsman.   A staff member of the Worker’s Compensation Board who may assist employees and employers in the resolution of disputes.

PPI - Permanent Partial Impairment.  The permanent loss of function of a body part or  the whole body.

PTD - Permanent Disability.  Permanent Total Disability is the inability to engage in any reasonable employment for life.

Presumptive Dependant.  A spouse or child who meets the statutory definition of a presumptive dependant.

Settlement.  The voluntary resolution of disputed issues without a hearing before a Worker’s Compensation Board Judge.

SOL - Statute of Limitation.  The date when the right to make a claim ends and the Worker’s Compensation Board loses its jurisdiction to adjudicate a dispute between an employee and an employer.

TPD - Temporary Disability.  Temporary partial disability occurs where an employee is able to perform some work which pays less than the AWW pursuant to temporary restrictions assigned by the attending physician and the employer provides such work.

TTD - Temporary Disability.  Temporarily total disability is the inability to engage in the regular employment.

More information coming soon. Please check back soon.

What is workers compensation?
Worker’s compensation is a statutorily created obligation to provide benefits to employees who sustain injury or death by accident arising out of and in the course of their employment. The cost for such benefits is borne entirely by the employer. The benefits include the provision of medical treatment and compensation for temporary total disability, temporary partial disability, permanent partial impairment, permanent total disability and for dependents in the event of an employee’s death. The worker’s compensation statute is the exclusive remedy as to the employer and limits the nature and extent of the recovery.

What if I don’t have worker’s compensation insurance?
An employer who fails to have worker’s compensation insurance may be ordered to pay double compensation to the injured employee and may be responsible for the payment of the injured employee’s attorney’s fees. The employer may also be ordered to cease doing business in Indiana and may be criminally prosecuted.

How is the premium for worker’s compensation insurance calculated?
The insurance premium is based upon the employer’s payroll and the classification of its employees. For example, office worker’s cost less per $100 of payroll than do construction worker’s. And, an experienced modification rating (EMR) is applied in order to reflect past claims experience and severity. A lower EMR will result in a lower premium. Worker’s compensation policies are subject to audit and an increased premium may be due if the payroll or employee classification was incorrectly disclosed in the application for insurance.

How do I report a claim?
An employer is required to prepare State Form 34401, “First Report of Employee Injury, Illness” any time there is a claim that a work related injury or occupational illness resulted in the death of an employee or an employee’s absence from work for more than one day. The “First Report” must be provided to the employer’s insurance carrier within 7 days and the insurance carrier must then electronically file the “First Report” with the Worker’s Compensation Board. However, even if no lost time occurs, worker’s compensation insurers usually require the reporting of injuries.

What medical care must I provide to an injured employee?
An employer or its worker’s compensation insurance carrier has the right and obligation to designate an attending physician for the treatment of an employee’s injuries. However, in an emergency, or where the employer or insurance carrier has failed to designate an attending physician, or in cases of other “good reason”, the employee may seek medical care and then attempt to have that medical expense paid by the employer or its worker’s compensation insurance carrier. An employee may not refuse the treatment recommendations of the employer’s attending physician and the employee’s right to compensation may be suspended if the employee has received advance written notice of the obligation to cooperate with the attending physician.

Should I communicate with an injured employee?
Keeping in contact with an injured employee can be of great benefit. Often the best way to avoid a period of disability is to accommodate temporary work restrictions. An employer should have regular contact with the employee concerning return to work issues.

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