You made it through surgery and months of physical therapy, but your doctor’s permanent restrictions now rule out the job you held for years. The only work available pays far less, possibly for the rest of your career. This post explains how Illinois wage differential benefits work, what you must prove and which choice you face.
Know what wage differential benefits pay
A wage differential benefit is a weekly payment that replaces part of the income you lose when an injury limits you to jobs that pay less. Illinois law sets this benefit at two-thirds of your earnings gap, which compares your old pay with what you earn, or could earn, or could earn, in suitable new work. A drop from $1,500 to $900 a week could mean a $400 weekly benefit, though the state caps weekly payments.
If you were hurt in September 2011 or later, payments generally continue until age 67 or five years past the award date, depending on which comes last. Earlier injuries follow different rules.
Prove you can’t return to your usual trade
You must show that your injury keeps you from your “usual and customary line of employment,” meaning the type of work you did before the accident. You must also show that it reduced what you earn or are able to earn. Your doctor’s restrictions support the first point, and pay records support the second, which often becomes a central issue in Illinois workers’ compensation claims.
One exception applies. The Illinois Workers’ Compensation Commission evaluates your earning capacity, not only your new paycheck, so taking a job that pays less than you could reasonably earn may reduce or defeat your award. Retraining and job search records can help show that capacity.
Document your retraining and job search
If you cannot return to your old job, your employer usually must pay for vocational rehabilitation, such as job training and placement help. During an approved program, you may receive maintenance benefits at no less than your temporary total disability (TTD) rate.
You should save every application, interview and offer, since employers often argue you could earn more. That record also prepares you for a key decision about how the law compensates your permanent injury.
Weigh this award against a disability settlement
You can usually receive either a wage differential award or a permanent partial disability (PPD) award for the same injury, but not both. A PPD award pays for lasting physical loss, such as reduced use of an arm.
A wage differential award may pay more if you have many working years left and a large wage gap. You typically must file your claim within three years of the injury or two years after the last payment of TTD benefits or a medical bill, whichever is later.
Protect your long-term earning power
A permanent injury can shrink your income for years, but wage differential benefits may close part of that gap when you prove your restrictions and reduced earning capacity. Because you usually cannot collect both this award and a PPD award, you should compare what each option could be worth over time before you accept a new job or a settlement.