Permanent partial disability

Permanent partial disability (PPD) benefits compensate a worker for a lasting loss of function after a job injury that leaves some ability to work. They follow maximum medical improvement: once a physician says the condition has plateaued, the permanent impairment is rated, often as a percentage under the AMA Guides to the Evaluation of Permanent Impairment, in the edition the state specifies. Benefits are then computed by state formula.

Two methods dominate. In a scheduled system the statute assigns a fixed number of weeks of benefits to the loss or loss of use of a body part, such as a finger, hand, arm, leg or eye, multiplied by a weekly rate. For injuries to the back or several body parts, a whole-body or unscheduled approach uses the impairment rating, and in some states wage loss or loss of earning capacity, to set the number of weeks or the dollar amount. Many cases end in a lump-sum settlement instead of weekly payments.

For the employer, PPD is where the claim becomes expensive: reserves rise, the paid loss feeds the experience modification rate, and the worker may return with permanent restrictions that call for accommodation under the ADA. Weekly rates, maximums, duration and rating methods vary widely by state, so no national figure applies. Total disability is a separate benefit. The guides on the workers' comp claims process and workers' comp settlements and the employer's role show how permanent benefits are resolved, and temporary total disability covers the earlier stage.