L&I Time Loss & Wage Replacement Compensation
If you’ve been injured at work and have an open L&I Claim for workers’ compensation, you have a right to L&I time loss compensation also known as wage replacement benefits.
What Is L&I Time Loss Compensation?
Time loss compensation is an L&I benefit that pays a percentage of your income to compensate you for loss of pay if a doctor certifies you are unable to work due to an on-the-job injury.
One thing to note is that the first 3 days following your injury are considered a waiting period, and you won’t receive your wage replacement for those days until you’ve been out of work for at least 14 days after the injury.
How Much Does Time Loss Compensation Pay?
Time loss compensation pays 60-75% of a worker’s wage just prior to injury. The percentage depends on the number of the worker’s dependents and is determined using the LEP calculator, or loss of earning power calculator.
If you are already receiving time loss compensation, it is important to double-check the calculation because L&I often makes mistakes on wage orders, miscalculates rates, or sometimes fails to take into account other income sources.
What Is Earning Power
Earning power is defined by L&I as your ability to earn income at work.
Is L&I Taxable Income?
Time loss compensation is not taxable. The IRS considers it a disability benefit, and not taxable income.
How Often Is Time Loss Compensation Paid?
Time loss compensation is typically paid twice per month and requires regular certification by the worker’s medical provider. Your first check will be mailed within two weeks after L&I receives your paperwork from your doctor. Workers that miss a certification will not receive their time loss compensation payment for that period of time, although they can seek to receive it as back time loss if they can obtain and send certification at a later date.
What Is Back Time Loss Compensation?
Back time loss compensation simply means time loss compensation that went unpaid. Back time loss compensation, if approved, can be paid in lump-sum payments to make up for missed payments in the past.
Do I Need A Lawyer To Collect Time Loss Compensation?
If you believe you are entitled to wage replacement or you are owed back time loss compensation that you were never rightfully paid, contact an experienced workers’ comp lawyer to discuss your options. A talented team of L&I attorneys can provide you with advice about your options regarding wage replacement benefits.