Changes to workers’ compensation law in Minnesota will bring bigger paychecks to workers who file a successful permanent partial disability (PPD) claim.
Although some specifics still need to be determined, the new law is set to increase PPD claim awards by 20%. The changes are part of recommendations made by the Workers’ Compensation Advisory Council, a group that evaluated the PPD schedule this year and will review it every even year going forward to determine if the current schedule represents an adequate compensation package for permanent impairment.
What To Know About The PPD Benefits Increase
There is still some uncertainty as to how the increased awards will impact those who are currently collecting compensation for a PPD claim, but future injured employees will see a 20% increase in payout based on their impairment rating compared to the current schedule. We don’t yet know when the new payout schedule will go into effect, as the changes are still being finalized with lawmakers.
It seems likely that a benefit increase would not be backdated much if at all, but we’ll keep an eye on it. Insurance companies base their premium costs based on their exposed risk, so it seems likely that new payout amounts will only be for injuries after the law goes into effect, and employers may also see an increase in premium costs as insurance companies pass the cost of this risk onto their customers.
Permanent partial disability benefits are awarded to an employee who has lost permanent function of a part of their body. If they suffer some permanent hearing damage or lose two fingers to a machine press, they can file for PPD benefits. When a worker suffers a qualifying PPD injury, they are assigned a disability rating, which is then cross-referenced with the PPD payment schedule to determine how much their injury is worth. This law change doesn’t impact the disability rating, it simply increases the payout amount that different disability ratings are worth.
So what does this mean for you? Hopefully nothing, because we hope that you don’t suffer an injury that leaves you permanently disabled, but the change will have ripple effects through the Minnesota workers’ compensation system. Lawyers will need to comb through the new law to see who is eligible for the increased payments. Employers and insurance providers will be reevaluating workers’ compensation insurance policies, and it’s likely that costs will go up for employers. Lawyers and injured clients will need to understand that any PPD claim will have the potential for a higher payout, and this will affect negotiations and settlement discussions.
We’ll keep tabs on lawmakers to see how these PPD benefit changes are implemented, and we’ll stay in the know so that we can best serve our injured clients. For more information about PPD benefit eligibility, or to talk to a lawyer about a different type of injury claim, connect with the team at Hey Workers today at (844) 439-9675.
